Rural round-up

February 22, 2019

Guy Trafford assesses how the Tax Working Group report would change signals to farmers, and how they are likely to respond – Guy Trafford:

Given the signals that have been coming out from the Tax Working Group over the last few months there haven’t been too many surprises as to what was revealed today. That may, probably will, come after the politicians have had their play with it.

From a farming perspective there are some pluses and minuses.

Succession planning
The roll over clause is attractive, but liable to alter land/business selling behaviour. It is only available as a succession tool in the event of the assets being passed on after the death. It is then made a liability in the event of the next generation deciding to sell at which point the value goes back to 2021 or whenever the older generation first took over the land. . . 

Grass on the A2 side of the dairy fence is looking greener – and the profits plusher – Point of Order:

The  contrasting   fortunes of  Fonterra  and  A2 Milk came into the  spotlight   this  week,  after the  latter  reported a  startling 55%  rise in  half-year net profit  to  $152m.  Fonterra  shareholders will be ruefelly recalling  their  company’s  performance last year  when  it  reported its  first-ever  net  loss  of  $196m.

A2 Milk  shareholders  are  marching to a  very  different  tune.  Despite  one market  analyst  reckoning its share price had  become over-priced, buyers  pushed  it up  by  more than  a dollar to  $13.95  as they absorbed  news  of   strong sales growth in all key product segments – infant formula, liquid milk and milk powders. . . 

Fatty milk Jersey cows in demand – Yvonne O’Hara:

”Fat is back” and no longer the ”ogre” it used to be, and that is good news for Jerseys as they have a higher fat content relative to protein than many other breeds.

DairyNZ’s New Zealand Animal Evaluation Unit (NZAEL) released its annual Economic Values (EV) index last week to reflect the increased global demand for high fat dairy products, compared to protein.

Economic Values is an estimate of a trait’s value to a dairy farmer’s production and profitability and contributes to cattle breeding worth (BW). . . 

LIC welcomes Fonterra’s a2 announcement:

The farmer-owned co-operative, which breeds up to 80% of the national dairy herd, says this increase in supply matches the demand it has experienced for its A2 genetics and testing services.

Last year, the co-operative introduced dedicated A2 bull teams and extended its test offering in anticipation of Fonterra’s next move with The a2 Milk Company.

LIC’s General Manager NZ Markets, Malcolm Ellis, who is also a Fonterra shareholder and farm owner, comments:

Fonterra scours world for $800m cash injection – Hugh Stringleman:

Where in the world will Fonterra get $800 million to reduce its debt while returning to profitability and making enough money to pay a good dividend on the $6 billion dairy farmers have invested in the co-operative? Hugh Stringleman looks for answers.

March 20 looms as the next milestone in Fonterra’s return to financial health and wellbeing when it declares first-half results for the 2019 year.

It will also say where asset sales, joint ventures and partnerships will be made or amended to improve the balance sheet. . .

Kiwifruit sector front-foots campaign to find pickers:

The kiwifruit industry is pulling out all the stops to make sure the 2019 harvest, which starts mid-March, isn’t short of workers – ensuring that quality Zespri kiwifruit is sent to overseas customers in premium condition.

New Zealand Kiwifruit Growers Incorporated (NZKGI) Chief Executive Officer Nikki Johnson says the amount of green and gold kiwifruit on the vines is forecast to be even higher than last year’s harvest, meaning around 18,000 workers will be needed. “Last year, the harvest was at least 1,200 workers short at the peak – we don’t want a repeat of that.” . . 

Central Districts Field Days has something for everyone:

More than 26,000 people are expected to flock to Manfeild in Feilding this month for New Zealand’s largest regional agricultural event, Central Districts Field Days.

Now in its 26th year, the 2019 event has plenty to offer all – from farmers and foodies to tech heads and townies.

“We’re really excited about this year’s event,” says Stuff Events & Sponsorship Director David Blackwell. “There are a record number of exhibitors and we have some great new areas and activities that are sure to make this year’s Central Districts Field Days a community event to remember.” . . 

Give it a go” – Bay or Plenty Young Grower of the Year  :

Alex Ashe, a technical advisor at Farmlands Te Puna, was named Bay of Plenty’s Young Fruit Grower for 2019 at an awards dinner in Tauranga last night.

The practical competition took place last Saturday, 9 February, at Te Puke Showgrounds, where the eight competitors tested their skills and ability to run a successful orchard in a series of challenges. These were followed by a speech competition discussing future disruptors to horticulture at the gala dinner last night. . .

Wine survey reveals profit, innovation and price on the up :

For only the third time in the history of the annual survey, all five winery tiers featured profitable results in 2018

Survey results indicate a positive correlation between innovation and financial performance.

2018 saw a 1.8 percent lift in average prices received by Kiwi wineries. . .

Veganism is on the rise, but experts say the cons of the diet outweigh the pros – Martin Cohen and Frederic Leroy:

After decades in which the number of people choosing to cut out meat from their diet has steadily increased, 2019 is set to be the year the world changes the way that it eats. Or at least, that’s the ambitious aim of a major campaign under the umbrella of an organisation simply called EAT. The core message is to discourage meat and dairy, seen as part of an “over-consumption of protein” – and specifically to target consumption of beef.

The push comes at a time when consumer behaviour already seems to be shifting. In the three years following 2014, according to research firm GlobalData, there was a six-fold increase in people identifying as vegans in the US, a huge rise – albeit from a very low base. It’s a similar story in the UK, where the number of vegans has increased by 350 per cent, compared to a decade ago, at least according to research commissioned by the Vegan Society. . . 

 


Mooving to a2 milk

February 20, 2019

Fonterra is signing up farms to supply the a2 Milk company:

Mike Cronin, Fonterra Managing Director of Co-operative Affairs, says “Signing up New Zealand farms to significantly increase supply of high quality milk to The a2 Milk Company is a positive step forward. It clearly shows the strength of our strategic relationship, and our shared commitment to fast-track market growth and enable farmers to create additional value from their milk.”

The Co-op’s initial milk pool will be based in the Waikato around its Hautapu site and will support the production of ingredients. It is anticipated around 100 farms will be needed for next season.

Jayne Hrdlicka, The a2 Milk Company Managing Director and CEO, says “The a2 Milk Company is pleased to be making progress on our relationship with Fonterra. These farms will help support new growth areas for our company across existing and new markets. This is the next step in what we believe will be a fruitful long-term relationship with tremendous potential.”

The location of the milk pool was determined by several factors. Most importantly, the site needed the ability to manufacture the specific product in demand, produce relatively small batches and adapt easily to any product demand changes.

“While other regions were thoroughly considered, ultimately the decision must be demand-led. The ability to efficiently manufacture a range of products to meet that demand was the over-riding factor in choosing a site.As demand and product lines grow, we’ll look to expand the milk pool to enable more farmers to participate,” said Mr Cronin.

Most of the value from the relationship with The a2 Milk Company will be returned to all Co-op farmers through the dividend. Participating farms will also receive a premium for their milk.

Today’s development follows the national launch of the a2 Milk™ brand by Anchor from late September 2018.

A2 milk mostly lacks a form of β-casein proteins called A1 and instead has mostly the A2 form.

There is debate about A2’s health benefits but it attracts a premium price.

Fonterra missed the opportunity to lead with A2 milk and the a2 company has prospered.

Most herds have some cows which produce A2 milk and if Fonterra wanted to corner the market it could require its suppliers to use A2 semen for artificial insemination and in a few years all cows would be producing A2 milk.

That it’s seeking suppliers to supply a2 suggests it won’t be taking that approach.

 


Rural round-up

February 20, 2019

Fonterra wants many DIRA changes – Hugh Stringleman:

Fonterra wants to ditch the requirement for it to take all milk if its market share drops below 75% in a region.

It also wants to exclude big processors except Goodman Fielder from accessing its milk at the regulated raw milk price.

Instead it wants to introduce a 12c/kg handling fee, it says in its submission to the Primary Industries Ministry’s review of the Dairy Industry Restructuring Act.

All other processors should be required to publish their average milk price paid to farmers and details of how they set it, Fonterra said.

DIRA should evolve to cover the whole dairy industry and not just control Fonterra. . . 

Otago young farmers lay claim to two titles – Sally Rae:

Otago can lay claim to three new national champions – all in the rural sector. Luke Kane (30) and Isaac Johnston (25), from West Otago, won the national fencing competition held recently as part of the New Zealand Young Farmers conference.

Elizabeth Graham (21), who lives on her parents’ farm at Hindon, won the national stock-judging title. . .

Duck eggs hatch into growing business – Luke Chivers:

Taranaki duck farmers Dawn and Glen Bendall are earning a living out of making people, including themselves, healthier. Luke Chivers reports. 

It is 7.30am in deepest, darkest winter.

As daylight breaks on mountainous, coastal Taranaki Urenui duck farmer Dawn Bendall is preparing her children for school before fossicking around in wood shavings up to 25 centimetres deep to retrieve 400 eggs.

“The ducks will dig up, they’ll lay and then they will cover the egg up again.

“It’s their little way of not letting the vermin get to the egg so I don’t know what they think of me,” she says, laughing. . . 

Riparian planting cleans Waikato dairy farm river – Hunter Calder:

From above it looks like any other river.

But up close, the Marokopa River through Ruawai Farm in Te Anga is exceptionally clear.

Data collected by Waikato Regional Council shows the water quality is some of the best in the region.

The river rates particularly highly for macroinvertebrates – tiny creatures without backbones such as insects and worms. The more of those, the healthier the water. . . 

Bounce in deer numbers :

Farmed deer numbers, including the number of breeding hinds and fawns, increased in 2018 according to provisional agriculture census figures released by Statistics New Zealand.

This follows a small recovery in stag numbers in the 2017 census.

Deer Industry NZ (DINZ) chief executive Dan Coup says the trend is a strong indication of growing farmer confidence in the viability of deer in a drystock farming operation. . . 

Wrightson cleared to sell seeds business – Gavin Evans

(BusinessDesk) – PGG Wrightson has been cleared to sell its seeds business to Denmark’s DLF Seeds.

The Commerce Commission said the $434 million transaction, announced in August, was unlikely to substantially reduce competition in any of the markets it assessed.

DLF is not at present a close competitor of PGG Wrightson Seeds in respect of ryegrass seeds containing endophytes and is unlikely to be so in the future,” deputy chair Sue Begg said. . .

Trade deals with Africa would help continent grow – Marian L. Tupy :

In December 2018, Donald Trump approved a new strategy for Africa that includes increasing US commercial ties with the continent. According to the Wall Street Journal, Trump’s strategy “is part of a broader effort…to fight for global supremacy with Russia and China”. Geopolitical considerations aside, freer trade between the United States and Africa makes good economic sense that’s bound to become more obvious over time.

Today, the economy of sub-Saharan Africa (SSA) is small, accounting for some 2 per cent of global Gross Domestic Product (GDP). Between 1960 and 2017, SSA GDP grew from $252 billion to $1.75 trillion. The world economy grew from $11.3 trillion to $80 trillion (all figures are in 2010 US dollars). That amounts to an average annual compounded growth rate of about 3.4 per cent and 3.43 per cent respectively.

The United Nations estimates that over the next 50 years, the SSA and world populations will grow at average compounded annual rates of 2.05 per cent and 0.63 per cent respectively. SSA’s population will thus increase from 1.1 billion to 3.1 billion and the world’s population will increase from 7.7 billion to 10.6 billion. That means that SSA will account for roughly 30 per cent of the world’s population in 2070. . . 

Trace elements a solution close to home :

Despite New Zealand’s relatively benign climate lending itself so well to pastoral farming, its soils can hide some chronic mineral deficiencies that can undo the efforts of the best farm managers as they try to get the most out of their stock.

Richard Sides, Boehringer Ingelheim Animal Health NZ technical veterinarian is urging farmers to look harder at what may be holding their stock’s performance back, and says the answer may be easier to find than they first thought. . . 


Rural round-up

February 19, 2019

Tasman facing serious drought – Tracey Neal:

First there were floods, then fire and now drought.

The Waimea Plains, cradled between two mountain ranges, are usually immune to such extremes in the weather.

But a Tasman District Council water scientist says the wider area is facing its worst drought since 2001. . .

Explainer: Why NZ can’t afford to mess with China – Aimee Shaw:

China and New Zealand have enjoyed decades of mutual benefits.

The global powerhouse and New Zealand signed a Free Trade Agreement in 2008 and since then have phased in provisions to ease trade between the two countries.

China is now New Zealand’s largest trading partner, followed by Australia. Suffice to say it’s a relationship New Zealand can’t afford to lose.

Fallout from the Government taking the United States stance on the Huawei debate and now reports of people not wanting to come to New Zealand as a result are threatening the country’s long-standing friendly relationship. . . 

Year of the Pig means feast of exports for Fonterra :

Celebrations have been underway around the world to celebrate the festive Chinese New Year season — welcoming the Year of the Pig.

In China itself those celebrations are likely to have included family feasts including dairy produced in Waipa’s Fonterra plants.

Fonterra’s Te Awamutu site exported around $175 million in products to China for consumption in 2017/18. That’s about $12,500 per person in Te Awamutu. . . 

Optimistic report on ‘M bovis’ response – Sally Rae:

Improvements are already being made in many areas highlighted in the Mycoplasma bovis Technical Advisory Group’s report, response head Geoff Gwyn says.

Work is under way to develop a new surveillance approach for the beef industry and the focus is increasing on improving communication to affected farmers, the public and staff.

The report, released this month and following the group’s meeting in late November, provided independent validation the eradication programme was ”on track”, he said.

Mr Gwyn said the findings and recommendations were not surprising. Some of the recommendations were relatively simple to implement or were already in train, while others would need careful consideration before a decision was made. . . 

Open Country challenges validity of Fonterra 2018 milk price – Paul McBeth:

(BusinessDesk) – Open Country Dairy is seeking a judicial review of the way Fonterra Cooperative Group set its milk price in the 2018 season, despite the Commerce Commission giving the price-setting process a pass mark.

The commission noted the judicial review on its website, saying Open Country Dairy brought proceedings against certain conclusions in its 2018 report.

In that report, the regulator was satisfied that Fonterra’s calculation was largely in line with the efficiency and contestability elements required by law governing the dairy sector. . . 

Unusual beefalo meat in demand – Ken Muir:

A chance meeting with an engineer building a cowshed on a neighbouring farm next door to Nadia and Blair Wisely introduced them to bison and from there they’ve taken to producing beefalo – a bison beef cross – on their Isla Bank farm.

”We met Dennis Greenland by chance and he had purchased animals from a Marlborough breeder Bob Blake”, Mr Wisely said.

”He told us about the animals and that piqued our interest.”

The Wiselys purchased a bison bull, crossed it with a range of cows and Netherton Farm Beefalo was born. . . 

Wild horses go under the hammer in Hanmer

Twenty horses, all aged two or three years old, were mustered from the isolated Ada Valley and sold by auction at cattle yards in the St James Conservation Area, where there was once an 80,000-hectare cattle station.

The two-day biennial muster is a family tradition.

Hugh Dampier-Crossley, a sheep and beef farmer near Cheviot, has been mustering the horses since he was ten.

“The Stevensons owned the property. Jim Stevenson was my grandfather, they bought the place in 1927. He taught me how to break in horses and shoe horses so it’s become a bit of a passion,” he said. . . 

Plan to plant genetically engineered trees throughout US to save dying forests – John Gabattis:

Inserting genes to protect against foreign diseases and pests could bring species back from brink of extinction

Plans are under way to plant swathes of genetically engineered trees across the ailing forests of North America in a bid to save them from the ravages of disease and pests. 

Species such as the ash tree and whitebark pine have faced catastrophic declines of up to half their populations after creatures introduced from overseas tore through their defences. . .

 


Rural round-up

February 15, 2019

Promising results from denitrification wall :

A world-first denitrification wall at Silverstream, North Canterbury designed to reduce high groundwater nitrate levels is working as anticipated.

The trial is led by the Institute of Environmental and Scientific Research (ESR).

So far the nitrate levels in groundwater have been reduced from 7.1mg/L to 0.5 mg/L by the wall at Silverstream Reserve. . . 

Thanks John, for the milk price – Sudesh Kissun:

Dairy farmers have former Fonterra chairman John Wilson to thank for the milk price they enjoy today, says Sir Henry van der Heyden.

In a eulogy at Wilson’s funeral in Hamilton early this month, van der Heyden told of Wilson’s relentless push for a fair and transparent milk price.

“His relentless questioning and his ability to process and retain vast amounts of information means we have a tremendous legacy from him in the milk price,” he said. . . 

Feds backs wool levy if there is a sound plan of action :

The Federated Farmers Meat & Wool Council has today voted to support a compulsory wool levy on producers – but only if the cross-industry Wool Working Group comes up with a clear, practicable and compelling blueprint for lifting wool’s profile and returns.

Delegates from the 24 Federated Farmers provinces meeting in Wellington agreed that unless a collaborative plan for wool research, development and marketing is formulated – and then widely backed – the death-knell for the crossbred wool industry in New Zealand would be sounded. . .

Are deer the new moa: Ecosystem re-wilding or a flight of fancy? – Nic Rawlence:

It’s the depths of winter and I’m squatting in the snow, surrounded by southern beech forest, using a pair of tweezers to pick up fresh steaming deer poo.

My wife Maria, and palaeoecologist Jamie Wood, from Landcare Research, are doubled over in laughter, having just given me the official job title of pooper scooper.

We’re helping Jamie collect deer poo as part of a project investigating whether introduced deer fill the same job vacancy as the extinct moa in what remains of our unique ecosystems – an ecological surrogate to re-wild New Zealand. . . 

You call that meat? Not so fast cattle ranchers say – Nathaniel Popper:

The cattle ranchers and farm bureaus of America are not going to give up their hold on the word meat without a fight.

In recent weeks, beef and farming industry groups have persuaded legislators in more than a dozen states to introduce laws that would make it illegal to use the word meat to describe burgers and sausages that are created from plant-based ingredients or are grown in labs. Just this week, new meat-labeling bills were introduced in Arizona and Arkansas.

These meat alternatives may look and taste and even bleed like meat, but cattle ranchers want to make sure that the new competition can’t use the meat label. . . 

Calling all young nurserymen and women :

We are delighted to announce the 2019 Young Achiever Award run by New Zealand Plant Producers is now open to receive entries.

The competition seeks to reward and recognise the best young nursery people in the country. The costs of running the competition and the prizes are generously supported by the HortiCentre Charitable Trust.

NZPPI chief executive Matthew Dolan says, “This is a fantastic opportunity for young people with careers in the primary sector to take the next steps in their careers and to compete with other nurserymen and women.” . .


Taxing questions

February 11, 2019

What wasIRD thinking?

The taxman is researching the public’s views on globalisation and fairness in the tax system. Questions had included where respondents sit on the political spectrum, prompting questions of whether taxpayers are funding sensitive political polling. . .

After days of defending the research, Inland Revenue conceded on Saturday night that it was wrong to ask the political question.

“We should not have included the question about political spectrum,” group head of communications and marketing Andrew Stott said, adding that the department would not include the question in its research.

Inland Revenue was forced to reveal details of the $125,000 research project it is undertaking with polling company Colmar Brunton, after repeatedly playing down its significance. . .

A tweeter who was polled said she was also asked how much she trusts Air New Zealand and Fonterra and if large companies are paying their fair share.

IRD has admitted it was wrong to ask about political affiliation. Are questions about trusting two businesses and whether large companies are paying their fair share any better?

What relevance would that have to IRD’s business? Why would views on these matters matter to it?

IRD should be concentrating on policy and advice and leave politics and spin to the politicians.

 

 

 


Rural round-up

February 6, 2019

Could turning aquifers into managed reservoirs prevent water shortages and seawater contamination?  – Nikki Macdonald:

It seems the neatest of solutions: take the winter water that rages, unneeded, to the sea, put it in a great underground tank, and drag it out again as the summer dry threatens to brown the grass and suck the life out of parched apples, lettuces, peas.

Managed aquifer recharge is the new buzz phrase in the search for answers to New Zealand’s twin problems of increasingly scarce water and weed-choked rivers toxic enough to kill fish.

Proponents tout it as a potential solution to everything from aquifers being sucked dry by irrigation to nitrogen pollution to seawater contamination of drinking water supplies. But critics say it could actually worsen New Zealand’s water pollution problems. . .

Slaughtered cattle dumped in WhanganuI puts spotlight on stock theft bill  – Liz Wylie:

The remains of two slaughtered cattle have been found dumped at Languard Bluff in Whanganui following numerous reports of livestock thefts and moves to introduce tougher penalties for those convicted of such crimes.

Spotted by passersby early yesterday morning, the remains appeared to be fresh and there was still a considerable amount of meat on the bones.

Stock thefts have long been a concern for Rangitīkei MP Ian McKelvie who has introduced a private member’s bill in Parliament to seek tougher penalties for those caught. . .

NZ commodity prices have strong start to 2019  – Rebecca Howard:

New Zealand commodity prices rose in January, arresting the downward trend of the past seven months, ANZ Bank’s monthly commodity price index shows.

The world price index rose 2.1 percent last month but was down 2.1 percent from a year earlier. In local currency terms, the index rose 2.9 percent on the month and 3.8 percent on the year. ..

Vertical farming is not the answer: New Zealand food security in jeopardy at current urbanisation levels – Pearly Neo:

A New Zealand report has revealed that the country’s horticultural industry and food security could face increasing challenges if it intends to rely on vertical farming to replace crops lost to a lack of land post-urbanisation.

This is mainly because vertical farming requires high investment costs, particularly when it comes to paying for electricity to provide suitable artificial conditions for crop growth. . . 

Honey NZ commits to 5 year Manuka planting programme:

One of New Zealand’s largest producers of Manuka honey has committed to plant at least 360,000 Manuka seedlings in the first half of this year, creating what it claims will be one of the biggest privately-owned Manuka plantations worth millions to the country’s future economy.

Auckland based Honey New Zealand has recently added 4,000 acres of land to its owned supply chain in a remote region of native bushland near the town of Taupo. . . 

Nelson Forests’ acquisition of Manuka Island estate confirmed by Overseas Investment Office:

OneFortyOne (OFO) has received confirmation that the Overseas Investment Office has approved Nelson Forests’ acquisition of Manuka Island estate in New Zealand. The completion date for the purchase will be mid-late February.

The Manuka Island estate, currently owned by Merrill and Ring, is approximately 2000 hectares of forest in the Wairau Valley near Blenheim. . .

Comment from Grant Rosewarne, CEO of New Zealand King Salmon:

I stand by the statement that finfish aquaculture has the potential to become New Zealand’s most valuable industry and its greenest primary industry. Salmon farming is one of the most efficient forms of animal food production in the world, and we categorically affirm that our farms are managed in balance with the environment.

The NZ Federation of Freshwater Anglers have misunderstood a lot of New Zealand King Salmon’s farming practices and have made the mistake of assuming that fish farming in other countries can be directly compared to New Zealand. The article makes allegations about our farming practices that are unsubstantiated and incorrect. . .


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