Rural round-up

September 14, 2018

Fonterra loss could be opportunity for change – Andrew McRrae:

Dairy farmers are hoping the massive financial hit taken by Fonterra will be used as an opportunity to reset the business for the future.

The dairy cooperative delivered a net loss of $196 million for the year ended July, after being hit by compensation payouts and investment write downs.

Revenue rose 6 percent to $20.4 billion.

Orini farmer Allan Crouch said even though a loss had been signalled, it was still very disappointing, especially compared to the $734m profit the year before. . .

Fonterra ponders Beingmate future as part of strategic review – Nikki Mandow:

(BusinessDesk) – Fonterra is looking at whether it should get rid of its disastrous Beingmate investment as part of an ‘everything up for grabs’ strategic review.

Speaking as the company announced the first full-year loss in its 18-year history, chairman John Monaghan said the company was doing a “full stocktake and portfolio review looking at all our major investments, assets and joint ventures to see how they are performing and where they fit with our strategy”. Beingmate was a key investment under the spotlight. . .

Co-op must do better:

The Chairman of Fonterra’s Shareholders’ Council Duncan Coull has said he is extremely disappointed with the Co-op’s 2018 Annual Results.

“There’s no denying that our farmers are unhappy with current performance, and this year’s results,” he said.

“The underlying result and its impact on earnings, dividend and carrying value is totally unacceptable and one that our farming families will not want to see repeated. Moving forward, it is imperative that our business builds confidence through achievable targets and at levels that support a higher carrying value of our farmers’ investment. . .

A thoroughly modern-day forward-thinking farmer – Pat Deavoll:

If ever there was the epitome of a thoroughly modern-day Kiwi farmer, the new Federated Farmers South Canterbury president would be it.

Jason Grant does it all. He owns and manages two dairy operations and a 1000 hectare dry stock farm, is a director of an irrigation company, an active member of two river catchment groups, a husband to Anna and father to Ruby (11), Oscar (12) and Wills (13), and of course, in his Federated Farmers role, an advocate for the local farming fraternity.

That he has a lot on his plate is an understatement. He says his life is “pretty full.” . . .

Farmers deserve recognition for their hard milk slog – Lyn Webster:

We are living in fantasy land where many people seem to think money grows on trees.

Well, it bloody well doesn’t!

Warning: I am grumpy because I have just lost my job due to impeding farm sale – more on that later.

About 25 per cent of New Zealand’s overseas revenue is generated by dairy farming, which is done by about 36,000 people.  That’s not many people to bring in a huge chunk of the country’s income.  

When the payout drops, which can happen overnight, it can affect your dairy farming business very badly very quickly.  Milk prices are volatile, sensitive to international demand and currency changes. Farmers put their seasonal plans in place, including stock numbers and a budget – if the milk price plummets, you pretty well have to suck it up because you haven’t got much wiggle room. . .

Funds run dry for beekeeper working to eliminate deadly parasite – Maja Burry:

A West Coast beekeeper says his bees are resistant to the varroa mite but that decades worth of work may be lost unless he can urgently pull together enough money to keep his business running.

Varroa mites infest bee hives, feeding on larvae and an infected hive usually dies within three or four years.

Westport beekeeper Gary Jeffery said he wanted to eliminate the parasite by distributing mite-resistant queen bees that he has bred around New Zealand. . .

Fonterra changes vindicated– Hugh Stringleman:

The calibre of new directors and nominees for the Fonterra board vindicates the governance changes and the downsizing of the board and outweighs the initial loss of experience, departing director Nicola Shadbolt says.

Her decision not to seek a fourth three-year term is in accordance with the guideline of nine years as the optimum and 12 years as the maximum.

The three candidates for vacancies around the board table announced last Monday are one-term sitting director Ashley Waugh along with Jamie Tuuta and Peter McBride. . .

Deer market doing well – Ashleigh Martin:

The deer market is achieving well at the moment, New Zealand Deer Farmers Association chairman John Somerville says.

“Venison prices are the best they’ve ever been and the velvet has been really stable for six or more years with some really good pricing.

“We’re hoping for slow steady growth of the deer market


Rural round-up

July 30, 2018

More profit with lower impact – Neal Wallace:

The low milk price in 2013 was not the ideal time for a multimillion dollar dairy conversion let alone one writing its own blueprint. But, as Neal Wallace reports, North Otago’s John and Ruby Foley had a vision and a goal and they were determined to see it through.

There was no single dairy farm blueprint for John and Ruby Foley to follow. 

They had just a wish list underpinned by a philosophy that the value of the business had to be set by the enterprise not the cost of land.

In the back of the minds of the North Otago dairy farmers was the increased difficulty for young people to enter the industry because of the cost of land. . .

Shearing pay rises are showing results – Neal Wallace:

Higher pay rates appear to have stemmed the flow of shearers and shedhands heading offshore.

Shearing Contractors Association president Mark Barrowcliffe said a wage increase of up to 25% has been welcomed by woolhandlers and South Island contractors starting pre-lamb shearing have been told by staff the better wages are an attraction to stay here instead of heading overseas.

“We have just made New Zealand an attractive proposition for our transient staff,” he said. . .

 No regional development cash to breed the ‘perfect’ varroa-resistant honey bee – Joanne Carroll:

A West Coast beekeeper has been denied Government funding to breed bees he says are resistant to the varroa mite.

Gary Jeffery, a beekeeper in Westport, said he wanted to continue breeding mite resistant bees from his stock, but that his application for help from the Government’s Provincial Growth Fund had been denied.

Jeffery has previously received $25,000 from Development West Coast and has had the backing of private investors, but was running out of money to feed his bees before the end of winter. 

In a letter declining his pitch for $150,000 to develop a breeding programme, the provincial development unit said there was no evidence as to how Jeffery’s proposal would boost the West Coast economy . . 

 

Hillside collapses to from New Zealand’s newest lake – Marty Sharpe:

“Um, I think you might want to have a look at this new slip,” the top-dressing pilot told Gisborne farmer Dan Jex-Blake on February 25.

“Yeah, I know about that one. Been there forever,” Jex-Blake said.

“Nah, I don’t think so. You need to see this,” the top-dressing pilot replied.

So the fourth-generation owner of Mangapoike farm, about 55km southwest of Gisborne, jumped on the plane.

He couldn’t quite believe what he was seeing.

Where there was once a grass-covered bluff was now a vertical wall, a massive scar of debris and mud, and where there was once the clear-flowing Mangapoike River was a fast growing lake. . .

City kid’s burgeoning farm empire; 6 leased lifestyle blocks and 160 ewes – Sophie Cornish:

Angus Grant’s younger sister Josie was not happy when he converted her playhouse into a chicken coop when he was eight-years-old.

But now it has all paid off. Angus and his schoolmate Nick O’Connor, won the national Teen Ag grand final, the high school version of the FMG Young Farmer of the Year.

The 16-year-old St Bede’s College student is a city boy hailing from Papanui who has been passionate about farming since he first watched Country Calendar when he was three. . .


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