Rural round-up

November 19, 2015

Feds president leads by example – Amanda Vaisigano:

Bronwyn Muir’s measurement of success is that her influence moves the farming industry towards a more collaborative, sustainable, profitable, and optimistic future.

The Taranaki Provincial President, dairy farmer and Director of OnFarmSafety New Zealand has spent a lifetime in farming and is passionate about supporting the rural industry.

The success of her business OnFarmSafety NZ has seen her win and be nominated for a number of awards, including most recently at the 2015 Taranaki Chamber of Commerce Business Excellence Awards. . .

Estimates for Fonterra’s farmer payout tumble amid weak dairy prices – Tina Morrison:

(BusinessDesk) – Forecasts for Fonterra Cooperative Group’s payout to New Zealand farmers this season have tumbled below the company’s estimate following the third consecutive decline in prices on the GlobalDairyTrade platform.

Four of six analysts surveyed by BusinessDesk pulled back their estimates for the payout today, after whole milk powder prices declined 11 percent at last night’s GDT auction, taking the total decline over the past three sessions to 22 percent. Estimates for the payout now range between $4.25-$4.60 per kilogram of milk solids, pulling the top end of the range down from $5.30/kgMS. Fonterra is set to review its current forecast of $4.60/kgMS in early December. . . 

Freedom Foods sells remaining stake in milk marketer a2 Milk for A$64 mln – Fiona Rotherham:

(BusinessDesk) – A2 Milk Co’s cornerstone shareholder, Freedom Foods Group, has sold its remaining 10.4 percent stake in the milk marketing company for A$64 million, taking advantage of a surge in the share price.

Sydney-based Freedom Foods sold its remaining shares for 85 Australian cents apiece and will reinvest the proceeds in other investments including a buy-out of oat-based cereal and snack manufacturer Popina and construction of a new UHT processing facility. . . 

How now, New Zealand cow?:

New Zealand’s five million milking cows are doing a great job of efficiently producing milk, according to the latest 2014-15 dairy statistics  released today.

New Zealand cows are producing more milk with more milksolids than 10 years ago.

A cow’s annual average production contained 377 kilograms of milksolids (8.9%) in 2014-15, which is what New Zealand’s dairy farmers are paid for, compared to 308 kilograms (8.6%) in 2004-05.

Cows from North Canterbury are the highest producers. On average each produced 4,706 litres of milk in 2014-15 with 416 kilograms of milksolids. . .

Forestry crown research institute Scion first to apply for drone beyond-line-of-sight flying – Fiona Rotherham:

(BusinessDesk) – Scion, the forestry crown research institute, will become the first organisation in New Zealand to fly drones beyond line of sight when it seeks approval under new Civil Aviation Authority rules to use unmanned aerial vehicles (UAVs) for forest monitoring.

Scion has been conducting publicly and privately funded trials of UAVs for the past three months, including flying along the edge of forests to evaluate tree harvesting and using a UAV with interchangeable remote sensing technology to transmit information on tree health and pests in North and South Island forests.

A Callaghan Innovation-commissioned report last year estimated flying drones out of the operator’s line of sight could provide economic gains of up to $190 million annually to New Zealand’s farming, forestry and energy sectors. More than 440 commercial UAV users are registered on New Zealand’s Airshare website while the consumer drone market is booming.  . .

Strengthening Spring Rural Market:

Summary

Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 12 more farm sales (+3.5%) for the three months ended October 2015 than for the three months ended October 2014. Overall, there were 358 farm sales in the three months ended October 2015, compared to 337 farm sales for the three months ended September 2015 (+6.2%), and 346 farm sales for the three months ended October 2014. 1,731 farms were sold in the year to October 2015, 9.9% fewer than were sold in the year to October 2014.

The median price per hectare for all farms sold in the three months to October 2015 was $27,579 compared to $27,547 recorded for three months ended October 2014 (+0.1%). The median price per hectare rose 6.0% compared to September. . . 

Potatoes New Zealand Inc. appoints new Chief Executive Officer:

Potatoes New Zealand has appointed Chris Claridge as its new Chief Executive Officer.

Potatoes New Zealand Inc. Chairman Stuart Wright said he was delighted to welcome Mr Claridge to the organisation, which has a target of doubling New Zealand fresh and processed potato exports by 2025.

“Chris brings a wealth of horticultural, business, leadership and marketing experience to the role,” said Mr Wright. “That will prove invaluable in building on the very good work that has already been done towards achieving our goals of boosting productivity in the sector for the benefit of growers and the New Zealand economy.” . . 


Rural round-up

July 25, 2015

Govt: Lighter rules insulating dairy shock – Suze Metherell:

Light regulation in the New Zealand dairy industry has insulated the wider economy from the sharp decline in prices for the country’s largest export commodity, according to Finance Minister Bill English.

Prices for whole milk powder, the country’s key commodity export, have plunged this year and dropped an unexpectedly large 10.7 percent in in the GlobalDairyTrade auction last week, sending the kiwi dollar to six-year-lows.

Dairy prices are now expected to remain lower for longer than previously forecast, amid higher global supplies, weak demand in China and an import ban in Russia on European dairy products, which are being sold into other market. . .

Vets to cut down on antibiotics:

The Veterinary Association has set an ambitious target to reduce the use of antibiotics to control disease in animals.

Its goal is to have New Zealand no longer having to rely on using antibiotics for animals by 2030.

President Steve Merchant said the country was well suited to the challenge because of its size, and the fact that it was already the world’s third lowest user of antibiotics on animals. . .

Changes to Health and Safety Reform Bill are sensible:

Federated Farmers believe the two month delay in the Select Committee reporting back the Health and Safety Reform Bill to Parliament has led to improvements for the farming industry.

The Bill has been reported back today.

Federated Farmers health and safety spokesperson Katie Milne says the Bill overall will make farms safer places.

Specifically she says the Bill has gone some way to recognising that farms are different to urban industrial workplaces. . .

 

New Māori aquaculture agreements signed:

New regional agreements for Māori commercial aquaculture have been signed by Government Ministers today, including Primary Industries Minister Nathan Guy.

Three regional agreements have been signed with iwi from the Auckland, Tasman, and Marlborough regions following successful negotiations between the Crown and regional Iwi aquaculture organisations.

The agreements are the result of the Māori Commercial Aquaculture Claims Settlement Act 2004, which requires the Crown to provide Iwi aquaculture organisations with 20% of new commercial aquaculture space consented since October 2011, or anticipated to occur into the future. . .

Australian consortium said to be in no hurry to up their bid for A2 Milk – Fiona Rotherham:

(BusinessDesk) – Australian-based Freedom Foods and US-based Dean Foods are said to be in no hurry to up their bid for A2 Milk Co after the milk marketer this week told its suitors to try again after an initial offer wasn’t compelling and drew out as yet unnamed rival bidders.

A source close to the bidding consortium said they were underwhelmed by a trading update A2 Milk released at the same time as rejecting the offer and request for due diligence, saying it contained “nothing that would shift their view on valuation”.

Given Freedom Foods, the company’s previous joint venture partner in Australia, has a 19.1 percent blocking stake in A2 Milk, any rival bidders may struggle to get an offer across the line. . .

 

Wool market buoyant:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that today’s sale of 6,617 bales saw increases of 1 to 2 percent overall. A good result, considering offering of 52 percent Coarse Crossbred Early Shorn and Second Shear types.

There was good demand for shorter Second Shear types 2 to 3 inch 32 to 35 micron as buyers bid to cover Chinese orders.

The trade weighted indicator was little changed from the last wool sale on 16th July. . .

 

 


Rural round-up

June 23, 2015

Water presents high risk to agribusiness:

Whether it’s growing crops, generating electricity or entertaining tourists, water is a key ingredient for the success of the New Zealand economy, yet this also makes it a key risk.

PwC’s latest publication, Preserving water through collaboration that works, considers how New Zealand within a global context, has responded to water risks and the potential to improve water management in the future. New Zealand faces its own risks which differ from those in other parts of the world, and these risks, are increasing.

PwC Director and Local Government expert David Walker says, “A usable supply of water is fundamental to the New Zealand economy and permeates across all industries – and notably farming, forestry, electricity generation and public sectors. However continued effective water management is becoming more complex and costly. . .

ASB Farmshed Economics Report Cash is king for farmers

• Despite a better milk price forecast, farm cashflows will remain weak this season.

• But falling interest rates are putting cash back in farmers’ pockets.

• Meanwhile, the hot air has been let out of the NZ dollar.

Despite Fonterra’s better opening season milk price forecast, farm cashflows will still face pressure this season, according to the latest ASB Farmshed Economics Report. . .

 

TPP dairy deal ‘not at a level we would currently like’, says Key – Pattrick Smellie:

(BusinessDesk) – The Trans-Pacific Partnership trade pact does not yet include an acceptable deal on access for New Zealand’s most important exports, dairy products, with little more than a month to go before the controversial 12 nation trade deal could be concluded.

“I think the way I would describe it is there’s a deal. It’s probably not at the level that we would currently like,” said Prime Minister John Key at his post-Cabinet press conference in Wellington. He was referring to comments last week by Trade Minister Tim Groser that negotiations on dairy access to the heavily protected US, Canadian and Japanese markets had “barely started.” . . .

A2 shareholder Freedom Foods in consortium to take over milk marketer – Fiona Rotherham:

(BusinessDesk) – A2 Milk Co’s cornerstone shareholder, Freedom Foods Group, is part of a consortium with an international dairy group that’s eyeing a takeover of the dual-listed milk marketer.

Freedom Foods, which owns about 19 percent of A2 Milk with a related entity, is mulling a takeover of A2 Milk, making an indicative non-binding and conditional expression of interest to buy the shares it doesn’t already own. A deal would be contingent on the consortium, which includes an “unnamed leading international liquid dairy milk company”, undertaking due diligence. It also has a restriction on A2 Milk changing the number of shares on issue, effectively scotching a planned equity raising. . .

LIC seeks $125M debt facilities this year, targets $140M equity over decade – Jonathan Underhill:

Livestock Improvement Corp, which aims to lift annual revenue to $1 billion by 2025, says it plans to establish $125 million of debt facilities this year and is likely to require $140 million in equity capital over the next 10 years to meet its growth goals.

Details of its capital requirements are included in a presentation the bull semen and dairy genetics database manager is taking around the country to explain to its shareholders how its changing focus, with increased capital spending and new product development, is changing its financial profile. Previously it has only required seasonal debt funding, typically for three months, the presentation shows. .

Upper South Island Butchers Battle It Out:

The best young butchers in the Upper South Island have been announced following the Alto Young Butcher and Competenz Butcher Apprentice of the Year regional final on Saturday.

Rowan Lee from Peter Timbs in Bishopdale was the winner of the Alto Young Butcher category, while Matthew Clemens from New World Ilam topped the Competenz Butcher Apprentice category, both highly sought after titles. . .

 

Tractor and Machinery Association elects new President:

Mark Hamilton-Manns, New Zealand Sales Manager for John Deere, has been elected President of the Tractor and Machinery Association (TAMA).

Formerly Vice President of the organisation, he takes over from Ian Massicks, New Zealand Kubota Manager for CB Norwood Distributors, who had been President for six years.

Roger Nehoff, General Manager New Zealand Retail for Landpower New Zealand, was elected Vice-President. . .


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