Rural round-up

July 18, 2019

Suggestions definitely off the agenda – Neal Wallace:

Fonterra will not retain 50c of the milk payout, as suggested by commentators, or change the way it sets the milk price as part of its business reset, chief financial officer Marc Rivers says.

It is confident it can address its debt issue and strengthen its balance sheet without those measures.

The reset is on track to meet its target of $800m this year while reduced spending will boost its profitability.

“We’re both tightening our belts and looking for savings but also looking at our investment portfolio,” Rivers said. . .

Speculators push lamb prices up – Neal Wallace:

Speculators have pushed North Island store lamb prices 35c/kg above the same time last year despite winter slaughter prices being similar to last year.

Affco’s recent $9/kg contract for prime lambs appears to have hyped the store market even though AgriHQ analyst Nicola Dennis says other meat companies are offering winter slaughter prices that mirror last year’s at about $7.50 to $7.80/kg.

The contract is available only in August to Affco clients who have been regular suppliers and applies only to stock processed at North Island plants. . .

Grower group still busy after 100 years – Pam Tipa:

A group of vegetable growers centred on Pukekohe in South Auckland say regulatory changes could be do-or-die for their growing enterprises.

The Pukekohe Vegetable Growers Association (PVGA) celebrated its 100th anniversary last year and vice president Kylie Faulkner says the advocacy role of the group is crucial.

“There are a lot of changes happening now with the Resource Management Act, the National Water Policy Statement and how the different councils are approaching those rules,” she told HortNews.  . . 

Vege growing nice addition to farming business – Peter Burke:

It’s easy to see what the small central North Island town of Ohakune is famous for. On the outskirts of the town is a huge carrot and a children’s play area based on this popular vegetable.

Peter Burke reports on a vegetable grower who has helped enhance the town’s great reputation.

Ron Frew started growing carrots in 1967, just after coming home to Ohakune from completing his university degree. Since then, he and his family have built up a huge farming business which includes growing carrots and potatoes.

They also have a dairy farm and a large sheep and beef property running 25,000 breeding ewes and 650 breeding cows.  . . 

Protein competition on the rise in China – Sally Rae:

Increased protein competition in China is being cited by Rabobank as something to watch as strong demand for beef from China drives up export returns.

In Rabobank’s latest Agribusiness Monthly report, animal protein and sustainability analyst Blake Holgate said the China Meat Association had announced the Chinese government would be expanding its sourcing of animal protein products in an attempt to replace the lost pork production that had resulted from the African Swine Fever outbreak.

That might include allowing imports of Indian buffalo and lifting the current ban on UK beef. There were also reports of an increase in the number of international meat facilities being accredited for export into China. . .

Why George Monibot is wrong – grazing livestock can save the world – L. Hunter Lovins:

George Monbiot’s recent criticism of Allan Savory’s theory that grazing livestock can reverse climate change ignores evidence that it’s already experiencing success

In his recent interview with Allan Savory, the high profile biologist and farmer who argues that properly managing grazing animals can counter climate chaos, George Monbiot reasonably asks for proof. Where I believe he strays into the unreasonable, is in asserting that there is none.

Savory’s argument, which counters popular conceptions, is that more livestock rather than fewer can help save the planet through a concept he calls “holistic management.” In brief, he contends that grazing livestock can reverse desertification and restore carbon to the soil, enhancing its biodiversity and countering climate change. Monbiot claims that this approach doesn’t work and in fact does more harm than good. But his assertions skip over the science and on the ground evidence that say otherwise. . .

 


Farm subsidies transfer cash to rich

July 3, 2013

George Monbiot says farming subsidies are a transfer of cash to the rich.

The main subsidy, the single farm payment, is doled out by the hectare. The more land you own or rent, the more money you receive. . .

When our government says “we must help the farmers”, it means “we must help the 0.1%”. Most of the land here is owned by exceedingly wealthy people. Some of them are millionaires from elsewhere: sheikhs, oligarchs and mining magnates who own vast estates in this country. Although they might pay no taxes in the UK, they receive millions in farm subsidies. They are the world’s most successful benefit tourists. Yet, amid the manufactured terror of immigrants living off British welfare payments, we scarcely hear a word said against them. . .

Thanks in large part to subsidies, the value of farmland in the UK has tripled in 10 years: it has risen faster than almost any other speculative asset. . .

An uncapped subsidy system damages the interests of small farmers. It reinforces the economies of scale enjoyed by the biggest landlords, helping them to drive the small producers out of business. . .

He could have added that subsidies  distort the usual rules of supply and demand, increase inefficiencies, limit choice and add costs for consumers, protect poor performers from their own folly and create unfair competition for non-subsidised produce.

Most New Zealand farmers were somewhat less than enthusiastic about being dragged into the real world by the Lange-Douglas government in the mid 1980s but I haven’t met a single one who would want to go back to subsidies.

It’s better to face the market and prosper, or not, as a result of your own efforts than be at the mercy of political and bureaucratic whim.

Hat tip: Tim Worstall


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