Rural round-up

13/05/2021

Fonterra floats deep reform – Hugh Stringleman:

Fonterra may be reformed with farmer-only shares of lower value and a share standard reduced by one-for-four in the preferred new capital structure.

Six months of consultation have begun on options to change the structure to give farmers greater financial flexibility.

If a general agreement emerges, shareholders could vote on a new structure at the November annual meeting where 75% majority approval would be required.

The Fonterra Shareholders’ Fund (FSF), the mirror market which sets the value of supply shares, has been temporarily capped in size and may disappear in the future. . . 

Water to transform mid-north – Huigh Stringleman:

The first community water storage and irrigation scheme to be built in Northland for more than 30 years is taking shape on higher ground northeast of Kaikohe.

Diggers and earthmovers are about to begin the footings of an earth dam to define Matawii reservoir, which will be filled by rainfall from streams and drains in the small catchment when the flow rate is above median.

Te Tai Tokerau Water Trust (TTTWT) is building the dam to retain 750,000 cubic metres of water when full on 18ha of former dairy farm off State Highway 12 near Ngāwhā Springs, in the region locals call the Mid-North.

It will then build the infrastructure to distribute the water to private and corporate users in the district, including augmenting the Kaikohe town water supply. . .

50 years in shearing shed enough – Alice Scott:

Owen Rowland might have just celebrated his retirement after 50 years in the shearing shed — but he’s quick to point out he only did 49 on the handpiece.

Shearing is in the Rowland family blood. His father and uncle both shore their way into farm ownership, buying land at Enfield.

He can recall as a young fellow heading off to sit an exam at school.

“My uncle yelled out to not take too long so I could get back into the shearing shed, so I just went in, signed my name on the sheet and walked out again. And I have been shearing ever since.”   . . .

Merino shears found looking forward to 60th anniversary – Jared Morgan:

The New Zealand Merino Shears turns 60 in October and front and centre at the celebrations will be one of its founders.

The Alexandra man is the last of three, the late Brent Gow and the late Fred McSkimming, who “started the thing”.

He had, in part, been inspired by the exploits of Godfrey Bowen whom a British newspaper described as “shearing with the grace of [Rudolph] Nureyev’s dancing”.

Now aged 94, Mr Dreckow remembers being less impressed . . 

Lands of lonlieness the unbearable pressure of farm life – Nadine Porter:

Young farmworkers continue to be disproportionately represented in farm suicide figures despite higher awareness of mental health issues. A Stuff investigation by NADINE PORTER considers whether the isolation of farm life can exacerbate problems in vulnerable young men.

By the time Mark (not his real name) attempted to end his life, his farm job had all but consumed him.

Grafting 15 hours most days on an isolated West Coast property as a dairy farm manager and then as a contract milker, he had little time to deal with the thoughts in his head.

Employing staff, handling costs and organising day to day management of the farm was part of the plan to get ahead financially, but it also led to him becoming self-absorbed and distant from his wife and children. . . 

We’re on track to set a record for global record consumption – Dan Blaustein-Rejto and Alex Smith:

Bill Gates made headlines earlier this year for saying that “all rich countries should move to 100% synthetic beef” in an interview with MIT Technology Review about the release of his new book, How to Avoid a Climate Disaster. Although he recognized the political difficulty of telling Americans they can’t eat any more red meat, Gates said he sees real potential in plant-based alternatives from companies like Beyond Meat and Impossible Foods.

Nevertheless, the world is expected to eat more meat in 2021 than ever before. The United Nations Food and Agriculture Organization projects that global meat consumption will rise by more than 1% this year. The fastest growth will occur in low- and middle-income countries, where incomes are steadily climbing. . .


Rural round-up

02/03/2019

Proposed water tax a ‘burden’ on low-water  regions – Stuart Smith:

The proposed new water tax that was announced as part of a swathe of other new taxes potentially facing Kiwis will disproportionally impact on low-rainfall regions like Marlborough.

There are eight new taxes in Michael Cullen’s proposal: the Capital Gains Tax (CGT), tax on vacant residential land, agriculture tax, water tax, fertiliser tax, environmental footprint tax, natural capital tax and a waste tax.

Much has been said about the CGT but the suggested water tax, too, would impact all Kiwis negatively and in particular our farmers, horticulturalists and wine growers in low-rainfall areas. . . 

Partnerships between men and women are critical for farming success – Bonnie Flaws:

With many farms run by married couples, the role of women in farming is a critical one, a female dairy farmer says.

Jessie Chan-Dorman, a former dairy woman of the year, said male farmers could see everyday how women contribute to the business, and they respect that.

“I would say the percentage of women in farming is at least 50 per cent. Nearly every farming business has a partnership that has historically not been seen. But they’ve always been there.” . . 

Studies smoke out fire behaviour – Richard Rennie:

The risk of summer fires is a constant farmers and foresters learn to live with. But the Port Hills fire in 2017 and the Nelson fire last month have brought a human threat to wildfires many Kiwis thought was confined to Australia and North America. With wildfires now affecting rural and urban people Richard Rennie spoke to Scion rural fire researcher Dr Tara Strand about how we are getting smarter at understanding rural fires.

A TEAM of Scion researchers is part of a 27-year history of research into New Zealand’s rural fires, a quiet brigade of climate experts and fire analysts whose job is to help make rural firefighters’ jobs more effective and safer. . .

Grape yield under threat – Joanna Grigg:

Marlborough is experiencing a hydrological drought.

Lack of rain in the mountain catchment has left the Wairau River low, Marlborough District Council hydrologist Val Wadsdworth said.

And summer storage capacity on the plains has been found wanting as a result. January rain of 18mm was soon sucked up by 30C plus temperatures in February.  . .

Matamata to host FMG Young Farmer of the Year regional final :

A Waharoa dairy farmer is facing fierce competition in her quest to be named the FMG Young Farmer of the Year.

Sophia Clark will take on seven other contestants in the Waikato/Bay of Plenty regional final in Matamata next month.

It will be the 30-year-old’s fourth attempt at clinching a coveted spot in the national final. . .

Scott St John leaves Fonterra Fund manager’s board as units hit record  low – Paul McBeth:

(BusinessDesk) – Fonterra director and veteran capital markets executive Scott St John has left the board of the shareholder fund’s manager, the same day the units plunged to a new low.

A notice to the Companies Office last night noted St John ceased being a director of FSF Management Co, the manager of the dual-listed Fonterra Shareholders’ Fund, which gives investors exposure to the cooperative’s earnings stream. He is still a director of Fonterra. . .


Rural round-up

20/05/2015

Better returns trump loyalty – Hugh Stringleman:

Fonterra must put more effort into understanding why it is losing market share and therefore its shareholder capital is being diluted, major supplier Trevor Hamilton says.

Family-owned TH Enterprises (THE), which has 10 big dairy farms in the North and South Islands, has “driven a bus through Trading Among Farmers (TAF)”.

Founder and chief executive Hamilton said THE directors, including two independents, had exposed the weaknesses of TAF by making perfectly reasonable and sound business decisions over the past 30 months to cash in shares, to buy more farms and divert half of the milk supply to other processors. . .

TAF delivers what it promised – Hugh Stringleman:

Trading Among Farmers (TAF) has delivered what farmer-shareholders wanted in the way of more flexibility as well as capital security for Fonterra, equity analysts have said.

The 2012 restructure created a new generation of hybrid co-operative in which farmers were able to sell the economic rights of supply shares into the Fonterra Shareholders’ Fund (FSF) but retain co-operative control and voting rights.

The fund had grown to $713 million at the interim balance date January 31 with the economic rights of just under 122m shares. . .

 Sheep numbers down but productivity up – Jamie Mackay:

News last week our national sheep flock had dropped below 30 million for the first time since 1943 probably surprised no one but, regardless, it’s a damning and telling statistic for a once all-conquering industry.

When I was a kid growing up on a Southland sheep farm, two things stuck in my head from my final year of primary schooling in 1972. . .

 Apple harvest appears positive – Alan Williams:

Scales Corporation subsidiary Mr Apple is busy packing this season’s apple crop and isn’t expecting a dramatic impact on yields from hail in Hawke’s Bay earlier this year.

The harvest was due to finish about now but packing operations would continue through to the end of June, Scales managing director Andy Borland said.

The incidence of hail damage would be revealed during the packing process. Borland estimated a “bit of an impact” but many of the orchards avoided the hail altogether, a benefit of the group strategy to spread the orchard across the fruit-growing region. . . .

New Zealand Young Farmers educating Tasman teens at Stock Skills Day:

New Zealand Young Farmers is providing an educational day for Canterbury teens wanting to learn more about stock judging and handling on Sunday 24 May at the Canterbury Agricultural Park.

Members of New Zealand Young Farmers High School Clubs, commonly known as TeenAg Clubs, in the Tasman region have been invited to take part in a hands-on, interactive one day program which aims to introduce students to a different aspect of the agriculture industry.

Students will participate in groups of twelve and move through modules as they would through a typical day of competition at an A & P Show; from prepping and handling through to judging and prize giving. Prizes will be awarded to the most engaged students. There will also be a clipping and shearing demonstration. . .

RailBike adventures begin pedalling into the Forgotten World:

The visitor industry in the central north Island is set to surge once again with the introduction of the country’s first tandem RailBike experience.
Operating along what is arguably known as New Zealand’s most scenic decommissioned railway; Forgotten World Adventures has added the RailBike product to its already impressive list of seasonal rail based adventures using converted golf carts, also known as RailCarts.

Waikato Farmer and Forgotten World Adventures founder and Managing Director Ian Balme believes the introduction of the RailBike is a timely step for a business that has seen exponential growth since it was launched in 2012.

“This season we’ve provided over 6,000 clients with an outstanding experience through the historic Forgotten World and I am thrilled that we’re now in a position to build on our existing range of tours by introducing what will undoubtedly become a must-do kiwi adventure for groups of up to ten people” says Mr Balme. . .

10 reasons we don’t need organic food:

1. Organic crops do not increase yield.

GMOs have increased yields by 22% with even greater success in developing nations.

2. Organic crops increase pesticide use.

GMOs have decreased pesticide use by 37% with even greater success in developing nations.

Organic herbicides only kill the plant tissue that it touches, requiring more to be sprayed, and more repeated spraying. Glyphosate, on the other hand, attacks a specific enzyme that is only found in plants. Farmers using glyphosate don’t need to cover all of the weed to kill it, and they don’t need to spray as often. . .

New Horizons for regional South Island:

A new fund has been announced this morning to help regional South Island tourism operators capture the tsunami of opportunities from the growing China market.

The ‘New Horizons Fund’ is a regional economic development programme initiated by Christchurch Airport, as part of the “South” initiative, which sees all 15 South Island regional tourism organisations working collaboratively in tourist markets.

The programme kicks off with a budget of $100,000 and aims to support a minimum of two South Island tourism operators into the China market each year. . .


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