Very unlike Lotto

July 31, 2015

The NBR’s annual celebration of achievement will no doubt attract derision from the usual suspects who don’t understand wealth creation, what it takes and what it provides for others:

. . .  New riches have been amassed, much of it self-made from creating businesses that employ thousands of people here and overseas. . .

The list attempts to quantify the value of people’s assets. It doesn’t measure the value their success provides for those they employ,  for those who service and supply them and for the economic, environmental and social fabric of the country.

There might be an element of luck in any endeavour but the success this list celebrates owes far more to hard work, skill and the willingness to take risks.

Vicki Jayne, who led the team who put the list together, says:

“But in many ways the actual money is not that important. It’s the stories behind it and the fact that these people have achieved a high level of success. You don’t get the money unless you achieve at a high level in the area you are functioning. It’s very unlike winning Lotto.”

While we celebrate success in sport and the arts, the tall poppy choppers too often deride business success.

That’s a pity, not for the money made but for what it takes to make it and what the people who’ve got it do with it.

This year’s list includes farmers among the newcomers:

When it comes to promoting farming investment in New Zealand, Craigmore Sustainables chief executive Forbes Elworthy could hardly have a better pedigree.

Not only has his family farmed in the South Canterbury foothills for five generations but he can also boast a stellar career trajectory that suggests he knows a thing or two about business. . .

Craigmore Sustainables is now responsible for 40 New Zealand farms which, as the company name suggests, are being run according to a series of community, environmental and business principles that have sustainability at their core. . .

A regular speaker at global investment conferences, he champions New Zealand as a safe haven for farming investment and explains why his company emulates “family farmer behaviours” rather than being “too corporate” in its approach.

Three of Craigmore Sustainable’s farms are in our neighbourhood. They’ve made a big investment in improvements to the properties some of which have enhanced the part of the Alps to Ocean cycle way which goes through their land.

A little further north are the van Leeuwens:

Robots, rubber-floored stalls, cows that live indoors and choose when to be milked – South Canterbury farming couple Adriaan and Wilma van Leeuwen are busy pioneering new frontiers in New Zealand’s dairy industry.

Last year, they opened the world’s biggest ever robotic milking operation under one roof in the small settlement of Makikihi. They even have a plaque from global dairy solutions supplier DeLaval to commemorate the event – and it marks a step change in how farms in this country are managed.

A massive barn houses 1500 cows who decide for themselves when they will head off to one of the 24 robotic stalls for a quiet feed while their udders are automatically prepped and milked. No longer having to deal with inclement weather, the cows are more contented, production goes up and employment costs go down. It’s also easier on the environment – the effluent is collected and reapplied to the farm as fertiliser, thus helping to grow the crops needed to feed the herds and make the whole system self-sufficient. . .

Wilma was a finalist in this year’s Dairy Woman of the Year award.

 

 

 

 


Rural round-up

August 8, 2014

 Anti-foreigner stance ‘short-sighted’:

A New Zealand farming leader says he’s frustrated that a range of political parties are targetting foreigners and saying they shouldn’t be allowed to buy farms.

Federated Farmers vice president Anders Crofoot bought Castlepoint Station in Wairarapa after moving to New Zealand from the United States in the 1990s and went through the Overseas Investment Commission to do so.

The Labour Party has said that if it wins the general election sales of rural land to most foreigners will be banned. . .

Dairy farm purchase boosts employment

The purchase of a North Otago dairy farm by a company founded by a South Canterbury businessman will create more local jobs, the company says.

Craigmore Sustainables has received Overseas Investment Office approval to purchase a dairy farm in Tussocky Rd, months after buying three other farms in North Otago.

Craigmore is the brainchild of South Canterbury businessman and farmer Forbes Elworthy and is based in London. It also has offices around New Zealand.

“We have an extensive development programme in place for this property, including building a dairy shed, new effluent system, and native planting to assist with nutrient management,” the company’s director of commercial development, Hamish Blackman, said. . .

Lochinver owners want sale money for development – Patrick Gower:

The Kiwi seller of Lochinver Station is a century-old Kiwi business and wants to use the $70 million for a major property development that will help the expansion of Auckland.

Sir William Stevenson was the driving force behind his family’s business empire. He bought Lochinver Station 60 years ago, turning it from a vast wasteland into thriving farmland with 100,000 sheep.

Now, the family’s attempt to sell could be blocked by politics. Sir William’s friend Morrin Cooper says he wouldn’t like that.

“The Stevenson family deserve better than this: to be used as a chopping block just because there happens to be an election around the corner.” . . .

Trade talks failure may cost NZ in Korea:

The Agricultural Trade Envoy, Mike Petersen, is warning that farmers are in danger of losing out in the lucrative South Korean markets if trade talks fail.

The latest round of negotiations have been taking place in Seoul this week.

Last week the Minister for Trade, Tim Groser said he had given his final offer to the Koreans to resolve issues such as easing tariffs for New Zealand’s farmers, which cost exporters $195 million a year. . .

In lean times, it’s still vital to look after your workers – Chris Lewis:

The buzz about town is the revised pay-outs announced by Fonterra and Westland, which have both dropped significantly. So the pressure will be mounting this spring as farmers try to keep their heads above water. In times like these it is important to run a tight ship, not only financially but with your staff.

Stress has a way of brushing off onto those near you so look after yourself and bear a thought for your staff and your family who will not be immune to the pressure. A farm has many different aspects to it and a well cared for and oiled machine will ride out the tough times a lot smoother than one that has been roughing it or neglecting it. . .

Farmers take over yarn mill – Alan Wood:

Wool farmers have an agreement in place to buy a Christchurch yarn mill, describing the deal as a “significant” industry event to supply the carpet manufacturing industry.

Christchurch Yarns NZ went into receivership in April with the high kiwi dollar one of the challenges the business was up against at that time.

The dollar has remained stubbornly high since then and yesterday was trading around US84 cents and A90 cents.

The business was originally Christchurch Carpet Yarns and has its production facility based at a leased Sheffield Cres, Harewood property near Canterbury Technology park. . .

$3m grant boosts agri chemical research – Sue O’Dowd:

Research funding will help a Taranaki chemical-manufacturing company develop products its customers want.

Zelam is one of 52 Taranaki businesses to have received government research grants in the past three years to help them take their ideas for products and services to market.

For the next five years 20 per cent of Zelam’s eligible research costs will be refunded by Callaghan Innovation, a government agency that provides money to businesses that invest in research and development. Each year Zelam invests up to $3 million in chemistry and field trials. . .

"LA PRODUCCIÓN AGROPECUARIA EMPUJA TODA LA ECONOMÍA" Pepe Mujica – Presidente de Uruguay “No estoy de acuerdo con el dejo peyorativo, muy urbanizado, de creer que el campo es estático, que no hay progreso tecnológico ni inversión técnica. Eso es no conocer al país y, quien no lo conoce, no puede quererlo. Y es lo que más me duele”. “La producción agropecuaria empuja a toda la economía y encadena una masa laboral y de energía por los insumos que consume, los apoyos que necesita y el transporte” que requiere, aseguró el presidente oriental. Mujica explicó que las naciones avanzadas son aquellas que producen un bien al menor costo posible para venderlo al mayor valor posible. “ En cuanto al concepto de “valor agregado”, Mujica dijo que, más que la naturaleza del producto en cuestión, es necesario “tener claro cuál es el conjunto tecnológico que hay atrás para llegar a ese producto: es mucho más complejo el (mero) concepto de industrializar”. COMPARTÍ si estás de acuerdo con Pepe Mujica sobre su opinión del sector agropecuario.

The future is in the country.


OIO approves two Nth Otago dairy farm sales

January 18, 2014

The Overseas Investment Office has given approval for the sale of two North Otago dairy farms.

Large-scale farming business Craigmore Farming has received Overseas Investment Office approval to buy two large dairy farms in North Otago.

Both in the Waiareka Valley, inland from Oamaru, the properties are the 403ha Waiareka Farm, previously owned by North Otago Farm Ltd, and the 428ha Windsor Farm, previously owned by Windsor Dairies Ltd. OIO approval was required because of some overseas ownership. The purchase prices were confidential.

When approached for comment, Craigmore Farming chief executive Mark Cox said the company was ”very excited” about the acquisitions. . .

Neighbours I’ve spoken to about this are excited too.

The farms need investment and Craigmore is prepared to undertake it, providing work for local businesses in the processes and more jobs on-farm when it’s done.

It had an extensive development programme in place, including building another dairy shed, upgrading the existing irrigation infrastructure and native planting to assist with nutrient management.

The development programme would result in additional jobs and ”crucial” investment during both the development phase and over the longer term, as a result of increased production, Mr Cox said.

The company had agreed with the Alps 2 Ocean Cycle Trail to provide access across the properties for an extension to the public cycleway.

Locals have been very concerned about the danger of cyclists on narrow, unsealed roads in this area.

Taking the cycleway through the farms will provide a much more pleasant ride for  cyclists and remove a hazard from the roads.

. . . Among its interests, Craigmore Farming is a co-owner of Blue River Dairy in Southland, which produces sheep milk and processes it into cheeses and milk powder, and also owns a dairy farm at Ngapara in North Otago.

The company was proud of its track record in developing and managing farmland and its ability to bring together a mix of practical, strategic and analytical farming expertise, Mr Cox said.

”North Otago is a great farming region and we’re very happy to be there for the long term,” he said.

One of the key principles underpinning Craigmore Farming’s operations was its belief that the best farmer was the owner-operator/family farmer.

It saw a need to reward high-performing managers and offered equity partnerships for ”top-quality” managers, he said. . .

There hasn’t been any fuss about these sales that some sales requiring OIO attract.

That could be because Cox and the company’s co-founder and chief investment officer, Forbes Elworthy, are New Zealanders.

 

But their nationality isn’t nearly as important as what they will be doing with their investment.

The new owners will be bringing in foreign investment and with it will add value to the farms, create jobs and provide opportunities for advancement for their staff.

They’ve had to establish to the OIO’s satisfaction that the investment will bring wider benefit to New Zealand and we are already seeing that in our district.


Rural round-up

August 2, 2012

Meat price outlook positive in spite of short term wobbles – Allan Barber:

The exchange rate and uncertainty in the Eurozone remain the biggest negatives for red meat exports in the short term, but the outlook is still positive heading into next year.

It’s very hard to pick what will happen in Europe which will inevitably have a large impact on lamb prices for the foreseeable future. Southern Europe and the UK are technically in recession and are unlikely to improve much, at least until the ECB manages to sort out how it will cope with the trials of Greece, Spain and others. . .

 

Elworthy-managed fund psends $2m on Gisborne land, emerges with 9,200ha of forestry – Paul McBeth:

Craigmore Forestry Fund, which is managed by Forbes Elworthy’s Craigmore Sustainables, paid $2 million for 511 hectares land it wants to convert into forestry, as it looks to build plantations down the east coast of the North Island.

The fund has built up 9,200 hectares of land running from the East Cape to Riversdale, where it plans to either manage existing forestry operations or plant trees on farming land, according to summary decisions from the Overseas Investment Office. . .

  A permeating puzzle – Offsetting Behaviour:

Canadian supporters of supply management note that they’re helping to protect Canadians from “permeate” milk. Or at least my Twitter friend from the Canadian Dairy Lobby keeps needling about use of permeate.

Permeate is a concentrated byproduct from cheese-making that, in diluted form, can be added into fluid milk. You can also get it through ultrafiltration: ultra-filter the milk, then add stuff back in varying proportions depending on the blend you want to achieve. It’s relatively high in lactose, so it could make milk less friendly for those with lactose intolerance, but it otherwise seems pretty innocuous. Most supermarket milk in New Zealand uses permeate; it’s been a bit controversial in Australia. . . 

Ravensdown first fertiliser company to break billion dollar milestone:

Ravensdown, the 100% farmer-owned co-operative, has become the first NZ fertiliser company to surpass a billion dollars in revenue. The co-operative also helped shield shareholders from world price volatility for imports such as urea for a large part of the reporting period.

Revenues for the year to 31st May 2012 were a record $1.07 billion, an increase of 15%. The co-operative plans to distribute $53.5 million to shareholders. This represents a total of $40.48 per tonne of fertiliser purchased which is made up of a rebate of $15.10 per tonne plus a bonus share issue of 17 shares per tonne (tax paid) valued at $25.38 per tonne. . .

 Synlait Milk Scoops Agri-Business Award:

Synlait Milk has scooped the Agri-Business Award in the Sensational Selwyn Awards, which recognise business excellence in the Selwyn District.

Over 500 people attended the biennial awards dinner held on 28 July at the Lincoln Events Centre. Finalists for the award included Coppersfolly Limited and Ellesmere Transport Company Limited.

Since operations began in 2008, Synlait has grown to become one of Selwyn’s largest companies, processing over 500 million litres of milk a year from around 150 Canterbury farms, and employing 128 staff. . .

 Māori partner with agbio leaders to drive growth through science:

The Federation of Māori Authorities says supporting the world’s top agricultural biotechnology conference being held in Rotorua in September is an opportunity to connect its members with the best minds in the business.

The Federation has come on board as a Platinum sponsor of ABIC (Agricultural Biotechnology International Conference) 2012, which will bring industry leaders, researchers and scientists, investors and policy makers from around the world to New Zealand.

ABIC 2012 is hosted by NZBIO, the New Zealand biotechnology industry association.

The Federation of Māori Authorities represents New Zealand businesses with a combined asset base valued at NZ$8 billion, much of which comes from interests in seafood, forestry, dairy, sheep and beef, horticulture and energy. . . 

Dairy Compliance Improved:

Hawke’s Bay Regional Council’s compliance monitoring of dairy farms shows a marked increase in the level of full compliance.

Full compliance is up to 80% across the region, with the majority of the 20% non-compliance being of a technical nature rather than having a direct adverse environmental effect. . .

 

 

 

 

 


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