Rural round-up

January 31, 2015

Rabobank Agribusiness Outlook 2015

The 2015 Agribusiness Outlook shares Rabobank’s view for New Zealand agriculture in 2015. It includes four key swing factors that will be critical in shaping the outlook for 2015, addresses the significant price drivers for agricultural commodities and outlines the sectoral trends and developments that will be important to watch in 2015.

Key highlights

Outlook 2015

• Dairy – Lower global milk supply and demand gradually improving should be enough underpin a modest price recovery in 2015

• Beef – Much tighter supply from Australia, combined with strong demand from the US, will support historically high farmgate and export prices in 2015 . . .

 Tri-Lamb Group working to put lamb on the menu in the US:

Beef + Lamb New Zealand (B+LNZ) is working together with its sheep farming counterparts from the US and Australia to get Americans eating more lamb.

B+LNZ’s Central South Island Director Anne Munro has just been at the annual Tri-Lamb Group conference in Nevada with B+LNZ’s North America Manager Terry Meikle and Federated Farmers’Meat & Fibre Industry Group Chairperson Rick Powdrell. Representatives from the Sheepmeat Council of Australia (SCA) and the American Sheep Industry Association (ASI) also took part.

The Tri-Lamb Group was established in 2004 to grow demand for sheepmeat in the US, mainly by increasing consumers’ awareness of lamb’s nutritional value. . .  

 Planting a winner – how to protect farm waterways:

How to get the best results from planting waterways and avoid the common pitfalls will be the focus of a DairyNZ and Tatua field day on February 13 at the Tatua farm in Tatuanui.

Representatives from DairyNZ, Tatua and Waikato Regional Council will be answering farmers’ questions and providing advice on how to successfully plant farm waterways.

As part of the Sustainable Dairying Water Accord, all dairy farms must have stock excluded from waterways by 31 May 2017, and a planting plan for stream banks by 2020. The accord covers all dairy farms and is supported by all dairy companies across the country.

DairyNZ water quality scientist, Tom Stephens, who will be talking at the field day, says the focus will be on helping to ensure farmers get value for money from their planting while making the most of the environmental benefits. . .

 

Farming clean streams:

Ballance Agri-Nutrients has launched a specialist team to help farmers navigate increasingly complex environmental regulations and consent requirements to promote clean green land, rivers and streams.

Alastair Taylor, the new Business Extension Services Manager at Ballance Agri-Nutrients said national programmes such as the Sustainable Dairying Water Accord are putting increased pressure on farmers to manage the nutrients within the farmgate.

“Farmers need to navigate through regulations around effluent management, nutrient use and environmental performance. Our new team will provide a direct link between farmers and regional councils to take the hassle out of environmental compliance. . .

 

Right diet helps cows keep their cool:

Choosing the right supplementary feed can help farmers turn down the heat in their cows’ digestive systems as hot, humid summer conditions increase the risk of heat stress in herds.

Science Extension Officer for animal nutrition company SealesWinslow, Sarah Morgan, says all cows generate heat when they digest feed, but feeds requiring less energy to digest will also result in less heat generated and more comfortable cows as the average daytime temperatures stay high.

“Fibre produces more heat in the rumen than other carbohydrate feed sources. Feeds that have high oil content also require more energy to digest and reduce the efficiency of nutrient metabolism. Low fibre feed sources usually result in less heat from digestion than feeds that are higher in fibre.” . .

 

Strong Interest in New Zealand Bloodstock at Karaka Sales:

This week’s Karaka bloodstock sales can expect to see a nice swing to top-end colts that will eventually make their mark in the stud market, says Geoff Roan, Bloodstock Client Manager for Crowe Horwath.

“In part this reflects the influences of the changes six years ago to the Income Tax Act, which accelerated write-downs on colts,” he said.

The market was also feeling the impact of the recent amendment to the Goods and Services Tax Act, allowing overseas entities to register for GST if they are registered in their own foreign territory and don’t have a taxable activity in New Zealand. . .

 


Rural round-up

December 20, 2013

Red meat is worth 35 annual Avatars and could be much more:

Federated Farmers has started consultation among its membership covering reform of New Zealand’s $6 billion Red Meat industry.  The red-meat industry is currently worth around 35 annual Avatar movies to the New Zealand economy.

“Given Avatar Director James Cameron is also a Wairarapa farmer, reform of New Zealand’s red meat industry represents our economic blockbuster if we can pull it off,” says Jeanette Maxwell, Federated Farmers Meat & Fibre spokesperson.

“From the number of calls I have already received, I know both the media and our meat processors are very keen to see a copy of our paper. . .

Feds’ members only meat report:

FEDERATED FARMERS has put “three broad options” to its members on meat industry reform in a paper to be publicly released in the New Year.

Meat & Fibre section national chair Jeanette Maxwell says the solutions within the options are “more like a pick a mix” and suggests the processor focussed option will generate much discussion.
“There is a push by some in the industry to merge the cooperatives, something that’s much easier said than done. If the thinking is ‘just copy Fonterra’ then it will not succeed. To work, any merger needs a reassessment of the entire industry but especially its capital structures.” . . .

Alliance group’s Blue Sky Meat takeover talks fail – Tina Morrison:

(BusinessDesk) Meat co-operative Alliance Group’s talks about a potential takeover of rival South Island processor Blue Sky Meats have ended when Blue Sky withdrew after a failure to agree on key terms.

Blue Sky withdrew from the “respectful and amicable” talks early this month after being approached by Alliance a couple of months ago, Blue Sky chairman Graham Cooney said.

Both processing companies were based in Invercargill.

The farmer-led Meat Industry Excellence group had this year been pushing for closer integration of meat companies in an attempt to improve efficiency and boost profits.  . .

Farmers’ dairying halt boosts river

Dairy farmers are adapting to the massive pressures of farming under the close scrutiny of the public eye, but one farmer on the outskirts of Palmerston township in East Otago has more at stake than most.

For a start, Alan and Iain Ford’s 100ha Glenlurgan dairy farm on fertile river terraces is neatly split in two by the Shag River.

To complicate matters further, the townships of Palmerston, Dunback and Goodwood all draw their water from a pumping station intake at the lower end of the farm. . .

A timely reminder:

Fonterra dropped a bombshell last week when it announced its latest consideration on its farmgate milk price.

For farmer shareholders in New Zealand’s largest company, it had been shaping up to be a particularly merry Christmas, with economists suggesting the milk price could be lifted as much as 40c.

Elevated prices, which have defied predictions and remained at very high levels – the GlobalDairyTrade price index was just 7% below its April high and about 50% higher than a year ago – raised expectations for the forecast to rise. . .

Christmas comes early for Westland dairy farmers:

Federated Farmers is thrilled about the latest announcement from Westland Milk Products regarding their milk pay-out forecast of $8.30 per kilogram of milk solids.

“Dairy farmers have had Christmas early this year with this pay-out announcement,” says Richard Reynolds, Federated Farmers West Coast Dairy chair.

“This is a huge difference from last years pay-out and I know a lot of dairy farmers on the West Coast will be ecstatic at this announcement. . .

Taranaki provincial president hands over the reins:

Federated Farmers is saddened to lose its Taranaki provincial president, Harvey Leach, following his resignation this week.

“Harvey has been a huge influence and a game changer in the Taranaki region, and we will all be sad to see him go,” says Bruce Wills, Federated Farmers President.

“The role of provincial president is voluntary and takes a lot of time and dedication.Our provincial presidents do a lot of great work that does not get a lot of coverage, but Harvey has always been one of life’s true gentlemen. He will be missed but he leaves his province in great shape. . .

Bloodstock – setting up to succeed:

The New Zealand’s bloodstock sector is more than just an agribusiness niche and is attracting renewed interest from investors, says Geoff Roan, Senior Manager, Bloodstock, for Crowe Horwath.

While sometimes seen as a high risk investment, if structured correctly and professionally managed as a business, the bloodstock sector can be both profitable and fun, says Mr Roan.

The bloodstock sector was valued at $1.6 bn in NZ by New Zealand Racing Board in 2010, which compares favourably with viticulture ($1.5 bn) and aquaculture ($1.7 bn).

Contribution to GDP $1.64 billion $1.5 billion $1.7 billion Direct employment impact FTE $8,877 $5,940 $10,520 Total employment impact FTE $17,000 $16,500 $26,600 . . .

2013 Waipara Hills Sauvignon Blanc textural and bursting with flavour:

Waipara Hills release their 2013 Waipara Hills Marlborough Sauvignon Blanc, just in time for what is predicted to be a hot summer. The new release Sauvignon Blanc is the perfect partner on a balmy summer evening, with its fresh flavours of guava, melon, nettles and flint that flow from the nose into the mouth.

Waipara Hills Winemaker, Simon McGeorge, is really looking forward to showing off the 2013 Waipara Hills Sauvignon Blanc in the coming year. “I love the rich burst of fruit on the first sip, but it’s the texture and structure that I think are exciting. A grapefruit pith character, along with a nice rich mid-palate, gives this wine vibrancy and complexity which I believe will really have broad appeal.” Simon said. . .


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