Rural round-up

April 14, 2016

Water gives life to NZ’s economy – Anrew Curtis:

Much media debate has arisen recently on whether new irrigation schemes are necessary in the wake of the dairy downturn.  

What the dairy industry doesn’t need at the moment is to be kicked when it’s down; the debate has brought to light a need for IrrigationNZ to better foster relationships and promote understanding of modern irrigation across the board.  

Let’s start with the facts: in NZ water is plentiful. We average 145 million litres per person in NZ compared with 82 in Canada, 22 in Australia, nine in the US, two in China and two in the UK. We are water rich but are yet to make the most of this potential. . . 

Farmers agree kiwi farm labourers  ‘hopeless‘ – Alexa Cook:

Deputy Prime Minister Bill English is “on the money” saying many young New Zealanders in farm work are “pretty damned hopeless”, a South Island farming leader says.

Mr English made the comments at a Federated Farmers meeting last week, saying many people seeking jobs through the Ministry of Social Development did not show up or stay with the job.  

Otago Young Farmers Club vice-chair Mike Marshall milks 500 cows, and said he was employing people from Scotland because New Zealanders were not good workers. . .  

Fonterra’s first governance review suggests cutting board members by two, single election process for directors – Fiona Rotherham:

 (BusinessDesk) – Fonterra Cooperative Group is proposing cutting its board numbers by two to 11 and having a single process for electing farmer appointed and independent directors as part of the first governance overhaul since it was established 15 years ago.

A booklet on the first draft proposal from the long-awaited review of the farmer-owned dairy cooperative is being sent out to farmers today and a final recommendation is to go to shareholder vote in late May or early June after feedback. . . 

National regulations proposed for pest control:

Regulations are being proposed under the Resource Management Act (RMA) to provide for a nationally consistent approach to pest control, Environment Minister Dr Nick Smith announced today in releasing a consultation paper standardising the regulatory regime for pest control at the New Zealand PIanning Institute conference.

“These proposed RMA regulations are a response to the Parliamentary Commissioner for the Environment’s report recommending that I instigate a more standardised approach to pest control. Rather than each regional council having different pest control rules, the standard controls set by the Environmental Protection Authority (EPA) would apply. . . 

Kiwifruit found to regulate blood sugar – Lucy Warhurst:

A new study has found there could be more health benefits to eating kiwifruit than we first thought.

It’s known for being high in fibre and vitamin C, but it’s also now been found to significantly slow and reduce the uptake of sugars into the bloodstream.

Zespri’s Innovation Leader for Health and Nutrition, Dr Juliet Ansell, says people who ate kiwifruit with their breakfast saw more regulated blood sugar levels.

“You actually really reduce that blood sugar peak in your blood stream. It’s a much slower, longer tail off, so much more regulated blood glucose control.” . . . 

Global megatrends expert says New Zealand on trend with food-for-health:

New Zealand should apply its tourism’s “100% Pure” campaign to the agricultural industry, utilise its “clean-green” image, extend it to “clean-green-healthy” and back it with science to add a premium to its exports, according to Dr Stefan Hajkowicz, an international expert in strategy and foresight.

Dr Hajkowicz, author of the recently published book “Global Megatrends – Seven Patterns of Change Shaping our Future” is in New Zealand to address the 2016 High-Value Nutrition Science Symposium -Foods of the Future, Transforming New Zealand into a Silicon Valley of Foods for Health-. . . 

Feedback sought on proposed animal welfare regulations:

The Government is seeking feedback on proposed regulations to further strengthen our animal welfare system.

“Last year the Government amended the Animal Welfare Act to improve the enforceability, clarity and transparency of the animal welfare system,” says Mr Guy.

“We are now seeking the public’s views on proposed regulations that have been developed in consultation with the independent National Animal Welfare Advisory Committee (NAWAC),” says Mr Guy.
These proposed regulations will set enforceable rules based on best practice and modern science.

“Our animal welfare system is considered one of the best in the world. The proposed regulations will further strengthen our reputation as a country that cares for animals,” says Mr Guy. . . .

IrrigationNZ confident Ruataniwha will proceed:

IrrigationNZ today said it was confident that Ruataniwha would go ahead and disputed claims aired on RadioNZ that costs for the project have risen by 50 percent.

“What isn’t clear in this reporting is there are two distinct parts to this project. One is the cost of building the dam and the infrastructure of piping water to the farm gate, the other is the cost of developing on-farm irrigation systems,” said IrrigationNZ chairwoman Nicky Hyslop.

“A year on yes, there is an increase to building the dam – $275 to $330 million, and the reality is, the more time that goes by the more it will cost. There will never be a cheaper time to build than today. . . 

Deputy PM to headline DairyNZ Farmers’ Forum event:

Deputy Prime Minister Hon Bill English and Fonterra CEO Theo Spierings are among a line-up of leading speakers presenting to dairy farmers at the DairyNZ Farmers’ Forum, May 17-18, in Hamilton.

The biennial event will give dairy farmers insight into how to adapt their businesses in the current challenging times and how the global environment will shape the future of New Zealand milk production.

“The Farmers’ Forum is about helping farmers understand what is driving the current financial climate and what they can do to help manage it,” says DairyNZ strategy and investment leader for sustainability, Rick Pridmore. . . .

Farmers Gather for First Field Day at Sea:

Farmers took to the water recently to learn about the entrepreneurial drive of Clearwater Mussels director John Young and how his principles can equally apply to land-based farming.

As aquaculture entrepreneurs, Clearwater Mussels was joint winner of the 2015 Lincoln University Foundation South Island Farmer of the Year Competition (with Omarama Station), it was the first ever winner’s field day held at sea.

Three boatloads of field day attendees (approx. 200 people) left Havelock Marina and motored into the Kekeperu Sound to see greenshell mussel harvesters and seeders at work, and learn about what a marine farming business did to make it a competition winner. . . 

Final FMG Young Farmer of the Year to be found in Ashburton:

The last of the seven Grand Finalists will be determined this weekend in Ashburton at the Aorangi FMG Young Farmer of the Year Regional Final.

“This contest season has been very successful and impressive to date, the calibre of contestants is high and each Regional Final has been fiercely competed for” says Terry Copeland, Chief Executive of New Zealand Young Farmers – organisers of the event.

The eight finalists are contending for a spot at the Grand Final in Timaru 7 – 9 July and their share of an impressive prize pack worth over $285,000 in products, services and scholarships from FMG, Massey University, Silver Fern Farms, AGMARDT, Ravensdown, Meridian Energy, Honda, STHIL and Vodafone. . . 

NZ Farming's photo.

Farming is the art of losing money while working 400 hours a month to feed people who think you’re trying to kill them. – NZ Farming.


Rural round-up

April 1, 2016

Nutritional Sales Underpin Half Year Underlying Profit of $12.3 Million:

Synlait has reported an underlying net profit after tax (NPAT) of $12.3 million for the first half of the 2016 financial year (HY16).

In contrast to $0.4 million in HY15, this improved performance is primarily the result of increased nutritional sales in canned infant formula.

“We’re glad to deliver a solid result for the first half of FY16. Our significant investment in customer and product development, people, plant and operating systems in recent years is beginning to transform our earnings,” said Chairman Graeme Milne. . . 

European market conditions depress Westland’s payout prediction:

Global market conditions for dairy products point to at least two more seasons of low milk payouts in New Zealand, Westland Milk Products told shareholders today as the co-operative revised its predicted payout for the 2015-16 season to $3.90 – $4.00 per kilogramme of milk solids, down from last month’s prediction of $4.00 – $4.10.

Westland CEO Rod Quin said the major driver of the revised payout remains the global oversupply of milk, compounded by the ongoing high availability and aggressive approach by the European dairy market.

Quin and Westland Chair Matt O’Regan have recently returned from Europe where they met with customers, farmers, processors, traders and industry advocates. . . 

Fonterra makes best of a bad job – Allan Barber:

The PR spin has been pretty active signalling a much improved half yearly result which was duly delivered this morning. The company confirmed a 40 cent dividend for the full year with the interim dividend being paid next month as usual and the final dividend being paid in two tranches in May and August instead of October.

This improvement in cash flow will do something, but not a lot, to comfort farmers labouring under a debt burden. Unfortunately it will do absolutely nothing to support sharemilkers who will have to rely on their share of the milk payout. Predictions for the rest of 2016 are notable for their conservatism, probably in recognition of a disappointing track record when forecasting the extent of the current downturn. . . 

Fonterra’s six-month results – good news but some underlying issues – Keith Woodford:

As expected, Fonterra has announced a greatly enhanced six-month profit for the period ending 31 January 2016. The profit of $409 million (NPAT; i.e. net profit after finance costs and tax) is up 123% from the same period in the previous year.

The expected full year profit of 45-55c per share implies an annual profit of about $800 million compared to $506 million for the full year 2014/15.

These figures are all very much in line with expectations . The reason for this is that when milk prices to farmers are low, then Fonterra has low input costs. Accordingly, there is more scope for corporate profit. . . 

Keep sharing the load by talking about it:

No matter which branch of farming you are in, you will face tough times, says Nelson farmer and Horticulture NZ President Julian Raine. When that happens, don’t be too proud to ask for help.

Speaking to the Farming Show’s Jamie Mackay as part of the Getting Through Adversity radio series, Julian said that even with the best planning, erratic weather events can cause mayhem. Jamie suggested that growing fruit crops is arguably one of the riskiest pursuits in farming: “One adverse event at the wrong time and suddenly your whole crop is wiped out. If you are a sheep farmer, for example, you at least have lambing spread over three weeks, or if you are dairy your risk is spread over nine months of milking.” . . 

Meat exporters ready to reap benefits of TPP:

The Trans-Pacific Partnership (TPP) agreement eliminates all tariffs on beef into our biggest market, the United States, within five years of coming into force.

Trade Minister Todd McClay, speaking at the Canterbury Employers Chamber of Commerce this morning, says New Zealand exported meat products worth over $2.8 billion to TPP countries in 2015 and the gains once TPP comes into force will be significant.

“Our beef into Japan currently attracts a 38.5 per cent tariff. That has made it extraordinarily hard for our exporters to compete with other countries with lower tariffs. . . 

Ongoing market challenges weigh on New Zealand farmers, with confidence close to 10-year low:

The significant and persisting challenges in market conditions continue to weigh heavily on the nation’s farmers, with New Zealand’s rural confidence at the second lowest level recorded in the past 10 years, the latest Rabobank Rural Confidence Survey has shown.

Completed earlier this month, the survey found more than half of farmers surveyed (53 per cent) had a pessimistic outlook on the agricultural economy over the coming 12 months. This was significantly up from 30 per cent with that view in the previous survey, in late 2015. . . 

Dairy downturn: councils prepare to tighten belts:

Councils in rural areas might be forced to cut spending if the dairy downturn lasts for a long time, Local Government New Zealand head Lawrence Yule says.

A Westpac-McDermott Miller regional economic survey has shown big falls in confidence in major dairy areas including Waikato, Taranaki, and Southland.

Mr Yule said the businesses in many rural towns were already hunkering down as farmers tightened their spending, and that could spread. . .

NZX to teach farmers about new milk contract:

NZX expects to receive regulatory approval for the new fresh milk futures and options product within two weeks.

Chief executive Tim Bennett said there was a demand for the fresh milk contracts product after Fonterra scrapped its guaranteed milk price product for the upcoming season. . . 

NZ helping to restore Fiji’s dairy sector after Winston:

The New Zealand government says it will help restore Fiji’s dairy industry which is losing thousands of litres of milk and was devastated as a result of last month’s cyclone.

New Zealand announced additional aid to help Fiji’s recovery on Wednesday.

A lot of that money is going into the continuing infrastructure rebuild led by the New Zealand Defence Force. . . 

Helensville Farmers First To Claim Supreme Title In Auckland Ballance Farm Environment Awards:

“Environmental champions” Richard and Dianne Kidd are Supreme winners of the inaugural Auckland Ballance Farm Environment Awards.

At a special Ballance Farm Environment Awards (BFEA) ceremony on March 30 (2016), the Helensville couple was also presented with the Beef + Lamb New Zealand Livestock Award and the Farm Stewardship Award in partnership with QEII National Trust and New Zealand Farm Environment Trust.

BFEA judges described Whenuanui Farm, the Kidd family’s 376ha sheep, beef and forestry unit, as “a show piece farm on the edge of Auckland city”. . . .

From paddock to packet: The family behind NZ’s most successful independent chips – Ryan Bridge:

You’re about to meet a family of potato farmers who beat the odds to grow one of the country’s most successful independent chip businesses.

The Bowans are from Timaru and not only do they grow spuds, they transport them to their own factory and make the chips too.

Together they are Heartland Potato Chips.

It all started when Raymond Bowan decided to grow his own potatoes as a teenager. His son James Bowan has taken over running the family potato farm and unlike his old man, he doesn’t do it by hand anymore, there’s a flash piece of kit to help. . . 

Food development facility opportunity for creative entrepreneurs:

Those looking to be innovative with their food are wanted at the FoodSouth food development pilot plant on the Lincoln campus, but there are no Heston Blumenthal creations on the menu.

The final part of a national food innovation network, the facility provides three purpose-built independent food safe development spaces along with a variety of processing equipment — an extruder, ovens, dryers, enrober, mixers, and a mobile product development kitchen among them.

It enables businesses to develop product prototypes for market validation, trial new equipment, carry out scale-up trial work and sample manufacture in 20L to 200L batch sizes, conduct process development and improvement, and validate quality systems. . . 

It’s in the family for new A&P Association President:

Sheep and beef farmer Warrick James has been elected as President of the Canterbury Agricultural and Pastoral Association for 2016 at the Annual General Meeting at Riccarton Park Racecourse on 30 March.

Based in Central Canterbury near Glentunnel, Mr James was confirmed as President of the 154th Canterbury A&P Show in front of outgoing President Nicky Hutchinson and Association Members.

“It means a lot to be President of the Canterbury A&P Association. We host the largest and most prestigious Show in the country – it really is the pinnacle of the A&P movement. Having been involved from a young age with my family and seeing my own children take part over the years just makes this even more special.” . . .

Trio spread cheer on woolshed tour – Suzette Howe:

At a time when life’s a bit tough for rural communities, a trio of Kiwi performers are setting off on a woolshed tour to boost morale. 

They’re coming armed with their own stage curtain, a bar and plenty of laughs.

Over the next five weeks the talented ladies will transform more than 20 working wool sheds into live stages the length of the South Island.

They’re travelling by horse truck, carting hundreds of chairs, a bar, and full production set.

Farmer Georgie Harper says it’s hard to say no when the performance is brought to you. . . 

Itinerary and booking information at The Woolshed Tour.


Rural round-up

March 29, 2016

Rural economy is not all doom and gloom:

All is not gloomy in the agricultural community even though collapsing dairy prices have left a hole at the heart of the sector, New Zealand farming analysts say.

And while dairy problems are having a ricochet effect on other farmers, some areas of the rural economy are doing well and others are booming.

One of the most optimistic sectors is the apple and pear industry. . . 

Not enough mouths – Annette Scott:

Rain has hit the spot for much of the South Island’s parched farmland but with it has come a new challenge – what to do with the feed.

The countrywide shortage of livestock was starting to kick in sooner than expected, Mid Canterbury Rural Support Trust chairman Peter Reveley said.

“We have had some absolutely brilliant rain. . . 

Waikato Lavender Farm owners farewell business after 20 years – Kelsey Wilkie:

After 20 years at the helm, the founders of Waikato’s Lavender Farm are moving on.

Ian and Bev Parlane opened the gates to the Alphra Lavenders farm at Orakau, 8km south of Te Awamutu, 20 years ago.

The purple garden spreads across one hectare.  . . 

Ham-fisted definitely, incompetent possibly – Allan Barber:

Fonterra’s succession of ultimatums to its suppliers smack of ham-fisted bullying and incompetence. The company’s first ultimatum was to push payment terms out to 90 days for a ‘small percentage’ of its New Zealand suppliers in line with its global practice , followed by an invitation to attend Dragon’s Den type negotiating sessions in which it has served notice it will demand 20% price reductions.

There is nothing wrong or sinister about a customer trying to negotiate better terms of trade as a means of increasing efficiency, but in Fonterra’s case the company appears to have completely ignored the value of proper communication and relationships with its suppliers. Many of these will be contractors that have devoted resources and valuable service over a number of years; these contractors will be an integral cog in the life and prosperity of the rural communities they serve and live in. . . 

Political high-fliers win farming award: ‘Cows don’t talk back’  – Gerald Piddock:

Two novices running a dairy farm have taken the title of regional Share Farmers of the Year – and it’s not just their career change that’s gaining attention. 

Matthew Herbert and Brad Markham say they are also the first same-sex couple to win a trophy at the New Zealand Dairy Industry Awards.

The former political advisor and journalist crossed the ditch two years ago, swapping talk with Australia’s top politicians to pulling teats on a dairy farm. . . 

These vitamin fortified bananas might get you thinking differently about GMOs – Nathanael Johnson:

In the winter of 2014, students at Iowa State University received emails asking them to volunteer for an experiment. Researchers were looking for women who would eat bananas that had been genetically engineered to produce extra carotenes, the yellow-orange nutrients that take their name from carrots. Our bodies use alpha and beta carotenes to make retinol, better known as vitamin A, and the experiment was testing how much of the carotenes in the bananas would transform to vitamin A. The researchers were part of an international team trying to end vitamin A deficiency.

The emails reached the volunteers they needed to begin the experiment, but they also reached protesters. “As a student in the sustainability program, I immediately started asking questions,” said Iowa State postdoc Rivka Fidel. “Is this proven safe? Have they considered the broader cultural and economic issues?” . . .

New Zealand’s fisheries performing well:

New Zealand’s fisheries continue to perform well, Seafood New Zealand Chief Executive Tim Pankhurst says.

He was commenting on the latest Status of New Zealand Fisheries report published by the Ministry for Primary Industries (MPI).

Around 83 per cent of individual fish stocks of known status and almost 97 per cent of landings are above or well above levels where their sustainability would be a cause for concern, he says.

“These figures are the result of a robust process and show that we are as good as or beyond the standard of the best in the world,” he says. . . 


Dairy industry left with costs for 1080 blackmail threat

March 24, 2016

The man found guilty of threatening to add 1080 to infant milk formula has been jailed for eight and a half years.

. . .Jeremy Hamish Kerr (60) previously admitted two counts of blackmail and the High Court at Auckland this morning heard the cost of the crime to the country was more than $37 million. . . 

By March 2015, police had 36 full-time staff on the case, resulting in a $5 million bill for the taxpayer. . .

Fonterra managing director of people, culture and safety Maury Leyland said the company lost more than $20m because of the threats and subsequent response. . .

And the Ministry of Primary Industries’ deputy director-general regulation and assurance Scott Gallacher discussed the “significant impact” on the country’s entire economy.

The ministry’s bill came to $4.2m as a result of Kerr’s actions.

“It was one of the most challenging responses MPI . . . had ever staged,” Mr Gallacher said.  

“Complex interactions and negotiations were required on international and domestic fronts.”

Had those negotiations not been successful, it could have seen a $7.5 billion reduction in GDP in the 2015 calendar year, he said. . .

LOSS TO THE COUNTRY

Fonterra – $20m+
Other dairy companies – $47,000 – $1.9m
Federated Farmers – $100,000+
Foodstuffs and Progressive Enterprises – $1.7m
MPI – $4.2m
Police – $5m
TOTAL = $37m+

Most of those costs have been and gone.

The cost of added safety checks and on-going security at all milk processing plants is continuing.

The only good thing about this whole saga is that New Zealand’s reputation for producing safe food has been strengthened.

 

 


Fonterra profit doubles

March 23, 2016

Fonterra’s half-year profit has doubled to $409 million.

There is no surprise in that. When the milk price is so low the company has better margins.

This is why most shareholders are adamant the company should remain as a co- operative

Suppliers who own the company share in the higher dividend which is some compensation for the low milk price.

If it wasn’t a co- operative there would be more pressure on the price of milk with no dividend for suppliers.


Rural round-up

March 17, 2016

It’s cyclic – ‘We will survive’  – Dirk Sieling:

Dairy economist Peter Fraser cannot go unchallenged. The anti-Fonterra and dairying bias he showed during his time at the Ministry for Primary Industries continues unabated.

His simple tactic of building a case on an unsubstantiated or false premise is typical of the misguided notions that often end up in the public domain.

In his March 7 article, he quotes data from the Reserve Bank showing that dairy farmers are borrowing about $3.5 billion per year “just to stay afloat”. This is just a nonsense.

Dairy farmers may well be borrowing that amount on average over time, but it is more often than not to buy another farm, build a new cowshed or convert drystock land to dairying.

But on the premise that it is “just to stay afloat”, he builds a scenario of lots of farmers going broke and collapsing land prices, all in a downward spiral. . . 

From a farming MP to her province – Barbara Kuriger:

The dairy industry is once again headlining news this week. I acknowledge this is a tough time for farmers. You and I as farmers know that the dairy pay-out is volatile; it rises and it dips and as a result of this, it has evolved as one of the most financially enduring industries in the agricultural sector. Falling dairy prices means it may be a tight year for many, and budgets are being adapted to counter this.

There has been much emotive talk by opposition about how our Government is ‘failing the dairy industry’, because they can’t actively step into this situation and raise the dairy pay out back to $8 kilogram MS. But the Government does have in progress three incredibly gutsy pieces of legislation that will assist the dairy industry, for which the benefits to dairy are widely unreported.  . . 

Dairy farmers forget past lessons – Mark Lister:

Milk is a cyclical commodity, and prices have been low before.

he long-term outlook for the dairy sector is strong, but the immediate future is highly concerning. Global prices are down 12 per cent this year and about a third lower than a year ago.

Against that backdrop, it was unsurprising to see Fonterra reduce its milk payout forecast to $3.90 per kg of milksolids this week. Adding in the dividend from Fonterra, the total payout will be about $4.25.

This is the lowest payout since 2006/07, and with a break-even price of about $5.30, the majority of farmers will suffer a second year of operating losses. . . 

Controlling dairy farm cost of production – Keith Woodford:

The key dairy priority at the moment, which stands above all else, is to minimise the number of New Zealand dairy farmers who will succumb to the current downturn. In particular, we all need to try and limit the damage to the latest generation of younger farmers who are often the most indebted.

It is all about getting the cost of production under control.

I have previously written about survival strategies and the need for each farm and farmer to chart his or her own path. I have also tried to caution against panicking and making big system changes when in a crisis. More particularly, I have tried to emphasise that hungry cows always kick their owners in the back pocket. Also, I regularly try and remind people that cost of production has both a numerator (which is cost) and a denominator (which is production). . . 

Irrigation funding boost for Wairarapa, Hawke’s Bay and Gisborne:

Primary Industries Minister Nathan Guy has welcomed three new investments totalling $1.6 million into irrigation projects coming from the Ministry for Primary Industries’ Irrigation Acceleration Fund (IAF).

The three irrigation projects receiving funding are in the Wairarapa ($804,000), Hawke’s Bay ($575,000), and Gisborne ($250,000).

“This funding helps support the development of irrigation proposals to the stage where they are investment ready,” says Mr Guy.  . . 

Funding for irrigation unlocks potential:

Irrigation New Zealand applauds the latest announcement by Government sighting three more grants by the Irrigation Acceleration Fund – $804,000 for the Wairarapa Water Use Project, $575,000 for Ruataniwha (Hawke’s Bay) and $250,000 for Gisborne’s Managed Aquifer Recharge Trial.

“It’s great to see the Irrigation Acceleration Fund delivering on what it was set up to do – supporting the potential for irrigated agriculture to contribute to New Zealand’s sustainable economic growth,” says Irrigation New Zealand chairwoman Nicky Hyslop. . . .

Research to set NZ sheep milk apart:

New Zealand’s sheep milk industry is set to benefit from ground-breaking research by AgResearch.

Two hundred people are attending the second Sheep Milk NZ industry conference, being held in Palmerston North this week (14th-15th March). The first conference last year attracted 160 people, with the rise reflecting the increased interest in the industry.

AgResearch scientists presented the initial results from two years of research from the $6 million MBIE-funded programme “Boosting exports of the emerging dairy sheep industry”, ranging from composition of New Zealand sheep milk through to best practice effluent management. . . 

Industry looks beyond radiata:

Future generations of New Zealanders may live in a patchwork landscape where several different forest species compete on the hills for growing space with the familiar Pinus radiata.

“Radiata is a great multi-purpose tree that grows well in many places. But it is not perfect for all growing situations or market needs. And there are obvious risks in having all our eggs in one species basket,” says Forest Owners Association research and development manager Russell Dale.

“We are therefore thrilled as an industry that the government is joining us in the Specialty Woods Products Research Partnership. This is a major programme that will investigate new products and markets for alternative species and build the confidence of forest growers in planting those species that show promise.” . . 

Fonterra’s Anmum Formula Hits Nz Shelves:

Fonterra’s internationally established infant nutrition brand Anmum is now available to New Zealand families.

Fonterra Brands New Zealand Managing Director Leon Clement says Anmum is a $200 million brand in Fonterra’s Asian markets with an established track record of quality and trust with parents.

“Anmum draws on Fonterra and its legacy companies’ 50 plus years of experience in dairy research and in producing paediatric formulas for third parties. Bringing Anmum to New Zealand families means we are now providing nutrition for key life stages,” he says. . . 

Growth Attracts 28 New Canterbury Milk Suppliers:

Synlait now has 201 milk suppliers for 2016 / 2017 to meet forecast growth in their value-added nutritional product business.

John Penno, Managing Director and CEO, said a combination of increased customer demand for nutritional products – such as a2 Platimum® Infant Formula – and increased production capacity with a new large scale spray dryer has created an opportunity for Canterbury dairy farmers to supply Synlait.

“We’ve had a very positive response to this opportunity, to the extent we have not been able to accept supply from everyone interested and we now have a waiting list,” said Mr Penno. . . 


Rural round-up

March 16, 2016

Whitestone blue wins silver in world champs – Sally Rae,

Whitestone Cheese has got the blues – but in a good way.

The Oamaru-based company has been awarded a silver medal in the blue vein division of the 2016 World Championship Cheese Contest in the United States, the world’s largest cheese, butter and yoghurt competition.

The contest, hosted by the Wisconsin Cheese Makers Association, attracted a record 2948 entries from 25 countries. Judges came from all over the world and included Fonterra research technologist Andrew Legg. . . 

Bankers aren’t farmers – Offsetting Behaviour:

On Radio New Zealand this morning, Andrew Little argued the government should lean on the banks to prevent their foreclosing on dairy farms, warning of that foreigners might swoop in and buy distressed NZ farms. 

  • Banks do not want to run farms. If they foreclose, they have to find somebody to run the thing pending auction. There are cows that need to be fed. The bank or the receiver takes on all the health & safety, and animal welfare, liability. The most heavily leveraged ones are the ones that’d be first to go; those are the ones where the banks have the biggest stake, and where the banks would take the greatest share of the loss in a fire-sale. A receiver’s fees will include all the farm-running costs. . . 

Dairy industry needs to stay competitive – DairyNZ:

DairyNZ says it is time to look at how the dairy industry can stay competitive in the wake of a record low Farmgate Milk Price and mounting debt.

It is stepping up its support to farmers and is running workshops across the country this week focussing on sharemilkers and farm owners working with sharemilkers.

Chief executive Tim Mackle said Fonterra has done well since it formed in 2001, and the main challenge for farmers – compared to other tough years – was the mountain of debt that had grown.

“Ten percent of the highest indebted farms have 30 percent of the total dairy debt – that’s $11 to $12 billion or $10 million each. But that doesn’t mean all those farms are at risk,” says Dr Mackle. . . 

Dairy prices affecting over one fifth of NZ SMEs:

More than one-in-five small and medium enterprises across New Zealand are feeling the effects of falling dairy prices, according to leading accounting software developer MYOB.

A snapshot result from the latest Business Monitor research commissioned by MYOB and undertaken by Colmar Brunton, found that 21 per cent of the more than 1,000 SMEs surveyed stated their business’ revenues were negatively affected by the dairy price. Even more concerning is the 25 per cent of SMEs that said general consumer confidence has been directly hit.

Across the country, it means that approximately 100,000 businesses employing upwards of one million New Zealanders are facing reducing revenue because of the dairy downturn. MYOB General Manager James Scollay says that the results show a significant impact on the New Zealand economy. . .

Dairy farming: it’ll be survival of the fittest – Jamie Gray:

Bank analyst has confidence in the sector’s ability to adapt but says that some of those ill-prepared for the downturn will go to the wall, writes Jamie Gray.

The dairy sector may be in for a period of adjustment of an order not seen since the 1980s, when farmers were hit with high interest rates, a high New Zealand dollar, and the removal of subsidies, says Rabobank NZ’s head of country banking Hayley Moynihan.

As dairy farmers prepare to enter what may be their third season in a row of negative returns, Moynihan said there will be casualties, but she has confidence in the sector’s ability to cope. . . 

dairy graphic

Stellar vintage predicted for Hawke’s Bay winegrowers:

All signs are pointing towards 2016 being another stellar year for Hawke’s Bay winemakers.

Paul Ham, Managing Director of Alpha Domus Winery, says the 2016 vintage is shaping up to be one of the best yet.

As one of the first wineries in Hawke’s Bay to harvest their early Chardonnay grapes, Alpha Domus is in a unique position to assess the coming vintage. “We’re really excited about the remainder of the harvest,” says Mr Ham. “It’s been a superb season and the grapes are looking outstanding on the vine.” . . .

Quality of NZ wool clip leaves exporters scrambling to fill lower-grade fibre orders – Tina Morrison:

(BusinessDesk) – New Zealand wool exporters scrambling to fill orders for lower-grade wool have driven up the price of what are known as oddments in recent weeks because the season to date has delivered an unexpectedly high-quality clip.

Wool oddments are the shorter parts of the fleece, such as from the belly, second pieces, eye clips, necks and those parts stained or otherwise discoloured. They are often baled and sold separately, but a paucity of lower-quality wool has meant exporters are blending oddments with other higher wool grades to make up orders, said Malcolm Ching, an executive at New Zealand Wool Services International in Christchurch. . . 

China Resources buys stake in NZ’s biggest apple exporter – Jonathan Underhill:

(BusinessDesk) – China Resources Ng Fung has acquired 15.3 percent of Scales Corp, New Zealand’s biggest apple exporter, for about $55.9 million from Direct Capital Investments.

The Hong Kong-based company today entered into an arrangement to buy the shares at $2.60 apiece, with settlement on about March 21. Scales said it welcomed China Resources “as a significant minority shareholder, and as a party who can provide support to Scales in its ongoing initiatives in China.” . . 

Social Media Stars Win Auckland/Hauraki Dairy Awards:

The 2016 Auckland/Hauraki Dairy Industry Awards winners are active among a growing group of dairy farmers turning to social media to support, share and gain information to help progress their dairy career.

At the region’s annual awards dinner held at the Indian Hall in Pukekohe last night, Brad Markham and Matthew Herbert were named 2016 Auckland/Hauraki Share Farmers of the Year, Hayden Kerr became the 2016 Auckland/Hauraki Dairy Manager of the Year and James Doidge the 2016 Auckland/Hauraki Dairy Trainee of the Year.

Mr Markham, Mr Herbert and Mr Kerr are all active and well-known among dairy farmers on Twitter. “We enjoy connecting with other farmers, in New Zealand and overseas, on social media platforms like Twitter,” Mr Markham and Mr Herbert say. “It can be a great way to share ideas. . . 

Accountants Get in Behind New Zealand Dairy Farmers:

NZ CA Limited announces Gold Sponsorship of 2016 Dairy Business of the Year

Improving farm profitability and developing resilient and sustainable farming systems are two of the key drivers behind NZ Chartered Accountants Limited’s (NZ CA) gold sponsorship of this year’s Dairy Business of the Year (DBOY).

Sue Merriman, NZ CA’s chairperson and also partner in Greymouth chartered accountants Marshall & Heaphy Limited, says, “The group is delighted to be a Gold Sponsor of the 2016 Dairy Business of the Year. With so many of our member firms located in provincial New Zealand and having dairy farm businesses as clients, it’s a logical move for the group to be involved in supporting and further developing these businesses. With the continuing slump in milk solid prices this year and the effect of this on farm businesses, it’s more important than ever that dairy farmers get good independent business advice from their chartered accountants. . . 

Fertiliser Company Takes Industry Lead to Identify Fertiliser Efficiency:

Fertiliser Company Hatuma Dicalcic Phosphate has taken an industry lead to identify fertiliser efficiencies for farmers

The company has invested over $1 million in research and is monitoring 12 sheep and beef farms totalling 16,500 hectares in the independent ‘Farming for the Future’ programme.

The programme set out to find how a lower nutrient input system can build both economic and environmental resilience within the farm gate. . . 

TECH Talks a highlight at national primary industry conference:

In two weeks Rotorua will be playing host to over 300 industry representatives from throughout the agriculture, horticulture and forestry sectors. MobileTECH 2016 is a two-day conference focusing on new technologies and innovations designed for our food and fibre industries.

As well as the New Zealand sector, MobileTECH has also attracted a solid contingent from across the Tasman. Some of Australia’s largest primary industry companies will be flying into Rotorua and joining the local industry for this event.

The strength of this programme, boosting over 36 speakers, is in bringing together under the one roof leaders from across a diverse range of primary industries with those who are developing, manufacturing and adopting these new technologies. . . 

 


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