Rural round-up

July 12, 2018

Dairy industry’s big challenge strategic reset – Keith Woodford:

There is great unease within the New Zealand dairy industry. Many farmers feel that the urban community plus a range of events have turned against them. Most are still proud to be dairy farmers but there is lots of stress and anxiety.  

This stress and anxiety is despite farmers receiving good prices for their milk in the last two years. This has followed two preceding years when most farmers made losses and some sharemilkers were wiped out.

Right now, there are some short-term worries with product prices dropping at the last dairy auction. This is creating uncertainty for the year ahead. But in the longer term, the outlook for dairy is actually very strong. . . 

Jayne Hrdlicka to take over as A2 managing director from July 16 –  Sophie Boot:

(BusinessDesk) – A2 Milk Co’s new managing director and chief executive Jayne Hrdlicka will start on July 16, replacing Geoff Babidge who had been in the role since 2010.

Babidge announced his plans to retire last year, having overseen the company while its shares jumped from around $1 at the end of 2015 to a then-record of $8.75 on the back of successive strong sales as the company’s infant formula attracted strong demand in China. The shares last closed at $11.40, and have gained 41 percent this year. . . 

Polarised views flowing from what some urban consumers say (loudly), and how they live their lives with the market signals they send to producers – Guy Trafford:

An interesting comparison can be drawn between the dairy industry in New Zealand and the coal industry in Australia. Both seem to have the ability to polarise groups and yet both countries economies are heavily reliant on them.

Coal prices have had a resurgence to over US$100 per tonne which is resulting in calls for increasing the amount exported from Australia. Currently, coal brings in about AU$58 bln, one of the major Australian exports.

Dairying in New Zealand holds a similar place and both hold about 30% of world trade. An observation noted while I am here in Australia is the diversity of commentary in the ‘mainstream media’. In Northern Queensland where coal mining appears to be held in very high regard, the major Cairns newspaper editorial seemed to typify the attitude of many. One piece leapt out which showed the gulf I believe exists between most Kiwis and certainly a section of Australians, “Environmental radicals sit in their West End homes with heating and air-conditioning, driving petrol-guzzling cars and generally in a way that generally consumes plenty of energy, most of it coming from fossil fuel sources”. . . 

Fonterra grants 86-year-old dairy industry pioneer’s sick-bed wish – Paul Mitchell:

A Kiwi dairy pioneer has been granted his one wish for his twilight years – the chance to see what his life’s work has led to in a modern processing plant. 

Palmerston North 86-year-old Don King’s work at the Diary Research Institute, now the Fonterra Research and Development Centre, in the decades after the 1950s helped lay the foundations and processes for modern dairy processing plants.

King, extremely ill and rest-home bound after a massive stroke, had one request – to see where it has all ended up.

And thanks to an old colleague, and the efforts of Fonterra staff, his wish has been granted.  . . 

Safety conference showcased forest floor successes:

A national forest safety conference in August will bring the latest practical solutions to the table for all contractors and forest managers to hear about and learn from. Following the challenges that this industry faced in 2013, it has responded with passion and commitment to new ways to embed safety culture into everyone’s mindset on the job. Also, over the past 5 years mechanical harvesting technologies have come a long way for keeping workers safe in logging, especially on steep slopes.

“Some of our most inspiring forestry safety specialists are those with hands-on experience in both crew culture and harvesting technologies. They have been out there doing it, earning the respect of their peers,” says Forest Industry Engineering Association spokesman, Gordon Thomson. . . 

Protecting people and animals from sharing disease – Agcarm:

On World Zoonoses Day, Agcarm reminds pet and livestock owners that good hygiene and vaccination is vital for protecting the health of people and animals.

Diseases such as Campylobacter, Leptospirosis and rabies are ’zoonotic’ and are transmissible between animals and humans. Research shows that 75 percent of all new human pathogens originate from animal sources.

Campylobacter, which is normally associated with eating undercooked chicken, can be associated with pets, especially dogs. Recent research shows that many dogs carry these bacteria without showing any signs of disease. Poor hygiene, such as not hand-washing before eating can spread the disease from dogs to people. . .

 


Rural round-up

March 4, 2018

Meat sector aiming high – Neal Wallace:

A national brand for meat supported by a story detailing New Zealand farming practices will be released within the next few months to spearhead the sector’s response to the growth of competing artificial protein.

A just-released study on the threat of alternative protein to NZ’s red meat sector commissioned by Beef + Lamb NZ identifies beef in our largest market, the United States, as most at risk from the growth of artificial protein.

It warns plant-based burgers and mince will likely be widely available throughout the US within five years and China in 10 years, potentially targeting the grinding beef market. . .

A2 Milk executives cash out of surging shares with combined $36.6 mln payday – Paul McBeth:

(BusinessDesk) – A2 Milk Co executives have enjoyed a combined $36.6 million payday after cashing in on a surging share price since the milk marketer’s announcement last week that first-half profit more than doubled and it had inked a deal with Fonterra Cooperative Group.

Share sales over the four days following the Feb. 21 announcement included $18.5 million sold by departing chief executive Geoff Babidge, who hands over the reins to Jetstar chief Jayne Hrdlicka this year. . . 

Farmers’ stress over cattle disease: ‘We hope we will survive this onslaught – Gerald Piddock:

The distress of battling Mycoplasma bovis and trying to keep a multimillion-dollar farm business has been laid to bare in emails between the Van Leeuwen Dairy Group (VLG) and the Ministry for Primary Industries.

The strain VLG owners Aad and Wilma van Leeuwen were under as they battle to eradicate the cattle disease while saving their farm business during, at times, a tense relationship with the MPI was shown in the release of more than 250 pages of documents released under the Official Information Act to Stuff.

Parts of the documents were heavily redacted for privacy or commercial reasons. . . 

Rabobank Beef Quarterly Q1 2018: Impact of Trade Agreements and Blockchain Technology:

A number of trade agreements, such as the Trans-Pacific Partnership (TPP) and a proposed Mercosur/EU trade agreement, look set to start having an impact on global beef trade in 2018. At the same time, applications of blockchain technology are now being widely developed in the food industry, with opportunities to realise benefits further up the supply chain growing, according to the RaboResearch Beef Quarterly Q1 2018.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership
The 11-member version of the Trans-Pacific Partnership (TPP) looks set for formal signing in March (although respective governments need to sign off on the details before implementation). Gains are expected for beef-exporting countries Australia, New Zealand, Mexico, and Canada—through reduced tariffs into key global beef importer Japan, plus reduced tariffs into smaller importing countries Chile, Vietnam, and Peru. . . 

Empowering rural women:

Farming Women Tairawhiti (FWT) has taken off since it was founded in 2014. Chairwoman Sandra Matthews from Te Kopae Station at Rere tells the Weekender about her role in the organisation and the support avaliable for women who want to achieve more in their farming businesses.

In resource terms, Rere farmer and Farming Women Tairawhiti (FWT) chairwoman Sandra Matthews has struck personal gold while the organisation has grown exponentially.

The Gisborne farmer has helped empower farming women in this region, tapping into an often under-utilised pool of talent that sits within New Zealand’s farming communities. . .

Winning share farmers love the thrill:

The Hawke’s Bay-Wairarapa Dairy Industry Awards Share Farmers of the Year say entering the competition has been excellent for networking, growth and knowledge of their business.

“It’s been a huge benefit to receive feedback from the judges on ways we can improve our business. Plus we love the thrill of the competition,” say Thomas and Jennifer Read.

The region’s other major winners are Gerard Boerjan, the Dairy Manager of the Year, and Brock Cumming, the Dairy Trainee of the Year. . .


Rural round-up

August 29, 2017

A2 Milk outperforms once again – Keith Woodford:

The a2 Milk Company (ATM) took a big step forward with its 2016/17 results which were released on 23 August. Sales were up 56 percent from the previous year to $549 million, and post-tax profits tripled to $NZ90 million. The market was impressed.

Everyone knew that a strong result was in the offing, and so the shares had already risen 50 percent over the preceding three months, and almost trebled in value on a 12-month basis. The share price then rose another 15 percent over the following three days to close at $5.74 at week’s end.

The most important messages within the annual report were not about the present but the future. The picture drawn by CEO Geoff Babidge was of a fast-growing company with no debt and lots of free cash in the bank to fund ongoing developments. . . 

A School of Rural Medicine to be established:

The Government will establish a new School of Rural Medicine within the next three years to produce more doctors for our rural communities, Tertiary Education, Skills and Employment Minister Paul Goldsmith says.

“Every New Zealander deserves quality healthcare services, and we want to grow the number of doctors in rural and regional areas to make it easier for people in those areas to access other key health services,” Mr Goldsmith says.

“The new School of Rural Medicine will be specifically geared toward meeting the challenges faced by high need and rural areas of the country, and will produce around 60 additional doctors per year. . . 

Primary industries feel under siege as prospect of Labour-led government firms:

INSIGHTS ABOUT THE NEWS – The divide between regional and urban politics is being thrown into ever sharpening contrast as the election campaign unfolds. Agricultural industries and rural communities feel under siege in the looming election.

As reported in Trans Tasman’s sister publication The Main Report Farming Alert, weeks ago the chances of a Labour-led government seemed unlikely, but now the chance of this happening seems possible with policies which could prove ruinous for NZ’s main export industries.

Labour will tax users of water, including farmers (but not those companies using municipal supplies). Both the Greens and Labour are committed to bringing agriculture into the emissions trading scheme and say the carbon price should be higher. They have not stated how high they want animal emissions to be taxed. . . 

Hawke’s Bay Regional Council to vote on ending Ruataniwha funding, writing-off $14M debt – Jonathan Underhill:

(BusinessDesk) – The Hawke’s Bay Regional Council will vote this week on whether to stop any further investment in the Ruataniwha Water Storage Scheme and write-off a $14 million debt owed by its investment company.

The vote on Wednesday comes as a result of a report into options following the Supreme Court decision to reject a Department of Conservation land swap need to create the storage scheme reservoir. 

The council’s investment arm, Hawke’s Bay Regional Investment Co (HBRIC), owes $14 million to the council made up of $7 million of charges and $7 million of cash advances, according to the council report. For its part, HBRIC has an intangible asset of $19.5 million on its books related to the feasibility and development costs of RWSS. This was funded with the $14 million advance from the council and $5.5 million from external debt. . . 

Feds Wonder Why We Would Need A Tourist Tax?:

Labour’s suggestion of taxing international visitors to raise funds to pay for tourism infrastructure raises questions about why we can’t find the money already from existing tax.

Federated Farmers has been concerned about the pressure councils, particularly small rural councils, are under to maintain services for tourists, including public toilets and other facilities.

“We agree that tourism is placing increasing pressure on our nation’s infrastructure and these costs are being unfairly borne by regional economies.

“But surely it is possible to find the additional targeted funding for councils in need from within this already increasing area of tax take?” Federated Farmers president Katie Milne says. . . 

Behind the hype of lab-grown meat -Ryan F. Mandelbaum:

Some folks have big plans for your future. They want you to buy their burgers and nuggets grown from stem cells. One day, meat eaters and vegans might even share their hypothetical burger. That burger will be delicious, environmentally friendly, and be indistinguishable from a regular burger. And they assure you the meat will be real meat, just not ground from slaughtered animals.

That future is on the minds of a cadre of Silicon Valley startup founders and at least one nonprofit in the world of cultured meat. Some are sure it will heal the environmental woes caused by agriculture while protecting the welfare of farm animals. But these future foods’ promises are hypothetical, with many claims based on a futurist optimism in line with Silicon Valley’s startup culture. Cultured meat is still in its research and development phase and must overcome massive hurdles before hitting market. . .

Wine exports reach record high:

The export value of New Zealand wine has reached a record high according to the 2017 Annual Report of New Zealand Winegrowers. Now valued at $1.66 billion, up 6% in June year end 2017, wine now stands as New Zealand’s fifth largest goods export.

Over the past two decades the wine industry has achieved average annual export growth of 17% a year states the Report. “With diversified markets and a strong upward trajectory, the industry is in good shape to achieve $2 billion of exports by 2020” said Steve Green, Chair of New Zealand Winegrowers. . . 

More Kiwis than ever are enjoying speciality cheese:

As Kiwis prepare to celebrate New Zealand Cheese Month, sales data shows we are enjoying more locally made cheese than ever before.

Nielsen data shows supermarket sales of New Zealand Specialty cheese have increased in value by 6% in the 12 months to August 2017 . What’s more, in the first quarter of 2017 Nielsen says 771, 383 Kiwi purchased specialty cheese, an increase of more than 20% compared with the same period in 2014 .

Every October the New Zealand Specialist Cheesemakers Association (NZSCA) members host a variety of tastings, inviting cultured Kiwis to events across the country to meet cheese makers and taste their wares. . . 

Largest ever Bayer Young Viticulturist of the Year National Final:

2017 sees the largest National Final ever held for the Bayer Young Viticulturist of the Year competition. Taking place next Tuesday 29th August at Villa Maria in Marlborough, there will be a total of six national finalists representing six of our wine regions: Tim Adams – Auckland/Northern; Ben Richards – Hawke’s Bay; Ben McNab Jones – Wairarapa; Laurie Stradling – Nelson; Anthony Walsh – Marlborough and Annabel Bulk – Central Otago.

Bulk is the first woman in the competition since 2011, so it is great to see viticulture is very much a serious career option for both men and women. . .  


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