Rural round-up

February 22, 2016

‘Dryland specialists — not victims’ – Sally  Rae:

Coping with dry conditions on Otago farms and the ongoing implications is about taking action, as agribusiness reporter Sally Rae reports.

Soul-destroying. That is how Otago Rural Support Trust co-ordinator Pat Macaulay describes living through drought.

Mrs Macaulay, of North Taieri, knows first-hand exactly what it feels like, having farmed in the Strath Taieri where drought was a regular occurrence. . .

Bank on bright side but farmers sombre – Sally Rae:

Dairy farmers are facing another tough year but a ‘‘generally strong year” is being picked by Rabobank for most other sectors.

Solid demand in key offshore markets, recent progress in export development and generally tight global supply was likely to bring another good year for producers of beef, wool and horticultural products, food and agribusiness research general manager Tim Hunt said.

While beef prices had lost some ground in recent months, they remained well above multi-year average levels and were expected to receive support from a generally tight global market. .  .

Farmers look for exit as prices crunch – Gerald Piddock & Aaron Leaman:

More dairy farmers are looking to shut the family farm gate, some after generations on the land, as the milk price slump pushes rural households to breaking point.

A DairyNZ and AgFirst report on farm ownership pathways out in April is expected to show farm ownership stretching further out of reach of many  as growing numbers look for a managed exit from an increasingly unprofitable and stressful industry.

The looming dairy exodus has prompted a warning that some of the country’s best and brightest will be lost to a sector once considered the backbone of the New Zealand economy.  . . 

Lamb prices better than expected – Sally Rae:

Prices at last week’s Omarama lamb sale were stronger than anticipated, considering schedule pricing, agents say.

More than 70 buyers from throughout the South Island registered for the sale, which comprised a total yarding of just over 12,000 lambs.

The average price for PGG Wrightson’s offering of 7000 lambs was $54, up $8 or $9 on last year’s sale.

Tara Hills achieved the top price for merino wethers at $68, while prices ranged from $66-$31.50. Tara Hills also topped the merino ewe lambs, at $58.50, with prices ranging from $52-$24. . . 

Taranaki avocado shortage blamed on freak weather – Christopher Reive:

Freak storms caused by climate change are being blamed for a poor avocado harvest causing shortages around the country.

Taranaki avocado grower Steve Wright has an orchard of 230 avocado trees near Urenui, north of New Plymouth, and said while the fruit generally ran in a cycle of good crop-bad crop, this season had been particularly bad.

“It’s not just a mild wind that comes through, they come through and they just hammer your place and what happens is, because the avos hang on a stem, they just twist around and break,” Wright said. . . 

First Grand Finalist Confirmed In FMG Young Farmer of the Year:

Jake Thomson is the first Grand Finalist to be named in the 2016 FMG Young Farmer of the Year.

The 27 year old from Whangarei who manages a Dairy Farm took first place at the Northern Regional Final in Pukekohe on Saturday 20 February.

Mr Thomson went home with a prize pack worth over $10,000 including cash, scholarships and products and services from FMG, Massey University, Ravensdown, Median Energy, AGMARDT, Silver Fern Farms, Honda, STIHL and Vodafone. He also won the AGMARDT Agri-Business Challenge, Meridian Energy Agri-Knowledge Challenge and the Ravensdown Agri-Skills Challenge . . .

Farm Takeover!  The dirt on raising GMO corn: The Land – Uptown Farms:

“Tell your story!”  Anyone in the agriculture industry has been hearing it!  It is important and I’m the first to boast how much I love to tell my story.
 
But, if I am honest, I’m usually telling my husband’s story. He’s the farmer.
 
Well not this year!  Matt is sliding over into the buddy seat and turning me loose on my very own 60 acres!  And I’m taking you along for the ride by detailing the entire process of raising corn right here, all season long!

When it comes to land, farmers generally talk in acres.  One acre is 43,560 square feet – roughly the size of a football field. 
 
The first step for any crop farmer is the most obvious (and most expensive) one – find some land. . .


Rural round-up

February 19, 2016

600 apple pickers wanted now – Ryan Bridge:

Are you looking for a job? Or do you know anyone who is?

There are 600 vacancies for apple pickers in one orchard in the Hawke’s Bay right now.

It’s a three-month picking season and this is only one orchard.

Another orchard down the road needs another 120 workers in the next two weeks and it even offers to give you a ride to work. . . 

Spot-on breakthrough – Karen Bailey:

IMAGINE if you could cut your herbicide, insecticide and fungicide bill by using as much as 99 per cent less chemical. 

That’s the claim by an English research company working on the development of an intelligent sprayer that can recognise specific weeds, insects and diseases in agricultural crops.

There are already a few targeted droplet dispensing systems on the Australian market that can do this with varying success, but Cambridge Consultants claims its sprayer features new generation technology that has been transferred across from its medical product development team.  . . 

Creating a new blueprint for hill country farming – Gerald Piddock:

Dan Steele has a vision for New Zealand agriculture. 

It’s a vision where farmers produce high-valued goods that sell the country’s environmental image to the world.

But to succeed, it means a radical shift from the traditional production-per-hectare model that has been New Zealand’s mainstay for the past 100 years. . . 

Big station aims for shepherd Lexie – Amanda Saxton:

Cambridge-raised Alexia Phillips – known as Lexie – came to Otiwhiti a skilled horsewoman but with little else in the way of farming nous. Last year she graduated as both top academic and top cadet from Otiwhiti’s agricultural training school.

A buddy going shepherding while Lexie was still at Hamilton’s Hillcrest High spurred her to sign up at the 3250 hectare station near Hunterville.

“Hearing about my friend’s experiences made me think ‘oh, that could be a bit of me’,” the 18-year-old said. . . 

Ahuwhenua Trophy finalists announced:

Māori Development Minister Te Ururoa Flavell and Primary Industries Minister Nathan Guy have congratulated this year’s Ahuwhenua Trophy competition finalists, celebrating excellence in Māori farming.

The three finalists are Tahu a Tao farm in Rakaia near Ashburton, Te Ahu Pātiki and Maukatere near Oxford in Canterbury and Tewi Trust in Okoroire near Tirau.

“I commend these finalists for their sheer hard work and fulfilling a legacy left by Sir Apirana Ngata, who helped introduce the competition which encourages proficiency and skills in Māori farming,” says Mr Flavell. . . 

Major Events Fund invests in the World Shearing and Wool Handling Championships 2017:

The Government is investing $260,000 through the Major Events Development Fund in the Golden Shears World Shearing and Wool Handling Championships to be held in Invercargill from 9 – 11 February 2017.

Participants and spectators from over 30 countries are expected to attend the iconic event, with competitors travelling from as far as the Falkland Islands and Isle of Man to compete.

Devorah Blumberg, Manager of New Zealand Major Events, says New Zealand is known worldwide for its thriving agricultural sector. . . 

Farmer leaders sought for DairyNZ board:

Aspiring directors are being sought for DairyNZ’s Board of Directors.

Farmer leaders are encouraged to apply for two associate director roles which provide an invaluable opportunity to see governance in action.

DairyNZ chair Michael Spaans says the associate directors must be dairy farmers who want to move beyond their farm and into industry leadership.

“We will be looking for candidates who can demonstrate a commitment to their personal and governance development,” says Michael. . . 

Owl Farm focus day a valuable resource:

How will changing health and safety legislation affect your farm? Are empty rates higher than normal this season on dairy farms? And what alternatives are there to chicory for summer cropping? These key dairy industry topics and more will be discussed on Wednesday 2 March at Owl Farm’s first farm focus day for 2016.

Owl Farm, the St Peter’s School and Lincoln University Demonstration Dairy Farm, will host guest speakers from Fegan & Co, LIC and PGG Wrightson Seeds. Owl Farm Manager Tom Buckley will give an update on the season so far and give examples from Owl Farm to illustrate the issues at hand. . . 

Hat tip: Utopia


Rural round-up

November 13, 2015

Alliance profit takes $4.28m hit – Sally Rae:

Alliance Group’s profit has taken a dive and operating profit was down $4.28million in the year ended September.

The company released its key financial results yesterday, which showed operating profit of $9.19million, down from $13.47million last year.

Turnover lifted slightly, from $1.45billion to $1.49billion, while reported profit was down from $6.21million to $4.62million. . . .

Alliance taps in to online traffic through Chinese partner – Tim Cronshaw:

The Alliance Group’s closer partnership with a big red meat player in China will position it better to take advantage of the quick uptake by Chinese internet users to online buying.

Online sales are huge in China with US$9.3 billion of transactions going through Chinese e-commerce company Alibaba.com on November 11 (11/11) last year . This is known as  Singles’ Day when students graduate and has been popularised in the internet era. Much of the online retail went through Tmall.com, a platform for Chinese and international businesses to sell brand name goods to consumers in mainland China and owned by China’s richest man, business magnate Jack Ma.

Meat processor Alliance’s main sheepmeat buyer into China, Grand Farm, plans to step up online sales which will tie in with the companies’ joint strategy to increase their co-branding in the Chinese marketplace. . . 

Farming in the land of the hobbit – Gerald Piddock:

The Alexander family had never heard of Peter Jackson when in 1998 he first knocked on the front door of their Matamata farm.

The movie maker had spotted their 560ha sheep and beef farm from the air and thought the site could make an ideal set for what was to be The Lord of the Rings movies.

Unfortunately, Jackson chose the wrong time to call in on Ian Alexander, his son Craig told a large crowd of international farming journalists in Waikato for the International Federation of Agricultural Journalists Congress in Hamilton. . . 

Broadband rollout to rural hospitals complete:

Health Minister Jonathan Coleman and Communications Minister Amy Adams have announced that all rural public hospitals and integrated family health centres now have access to high speed broadband.

The 39 hospitals and integrated family health centres identified by DHBs as candidates for the Government’s Rural Broadband Initiative are now all able to connect to fibre capable of peak speeds of at least 100 Mbps.

“Faster broadband enables healthcare to be delivered in new and innovative ways. These e-Health solutions offer better, safer, more efficient healthcare closer to home,” says Dr Coleman. . .

Transtasman Company Named NZ’s Fastest Growing Agribusiness:

Agricultural consultancy and rural investment management company Compass Agribusiness, has secured the title of New Zealand’s fastest growing agribusiness in the latest Deloitte Fast 50 Index.

The company, which has offices in both Arrowtown (New Zealand) and Melbourne (Australia), also placed 18th on the overall index ranking the 50 fastest growing businesses in New Zealand.

New Zealand based company director Guy Blundell says the ranking caps off a big year for the business. . . 

Non seasonal dairy – Keith Woodford:

Recently, I have been writing about what we need to do in New Zealand to climb the agri-food value chain. I have been emphasising the importance of China – there really is no alternative – and the associated need for an integrated ‘NZ Inc’ approach to online selling direct to consumers.

The products we need to be selling through this dedicated and integrated ‘NZ Inc‘ portal (but also linked into the major Chinese online portals) include dairy, meat, wine, fruit, jams, biscuits, chocolate, and bottled water. Indeed almost anything else we manufacture for ourselves that has a shelf life of more than a few days, we can also manufacture for China. . . 

Commission approves Cavalier’s application to acquire NZ Wool Services:

The Commerce Commission has issued its final determination approving Cavalier Wool Holdings’ (Cavalier) application to acquire New Zealand Wool Services International’s (NZWSI) wool scouring business and assets.

Today’s decision follows on from the Commission’s draft determinations, released in March and October, which indicated it was likely to approve the application because of the public benefits of the acquisition.

Chair Dr Mark Berry said the Commission had considered and tested all the submissions and evidence presented to it since the application was lodged in October 2014 and was satisfied the acquisition should be permitted. . . 

James Wong's photo.

Despite all our accomplishments, we owe our existence to a six-inch layer of topsoil and the fact it rains.


Rural round-up

November 9, 2015

Alliance in good shape, Donald says – Sally Rae:

He’s been sitting around the board table at Alliance Group for 24 years but Murray Donald has finally called time.

Come December 17 and the Southland farmer will be gone, as he is standing down as a supplier representative at the company’s annual meeting in Oamaru.

Mr Donald (54), who farms near Winton, and fellow long serving director Doug Brown, of Maheno, who was elected in 2001, have decided not to seek re election. . . 

Exit from EU could cripple UK agriculture – Allan Barber:

A new report by agricultural consultancy Agra Europe entitled Preparing for Brexit suggests leaving the EU, to be determined by a referendum in 2017, could destroy the British farming sector. The authors have based their forecast on the Coalition government’s 2013 Fresh Start Policy document which theorised that British agriculture could imitate New Zealand and Australia’s success in surviving, even flourishing, in a post-subsidy world.

Not surprisingly there is plenty of scepticism about the realistic prospect of either of these scenarios eventuating. If British voters chose the Brexit option, it is most unlikely any government would eliminate all subsidies, while a cursory glance at the proportion of farm income from EU Common Agricultural Policy payments shows how laughable it would be to expect them to become suddenly profitable. . . 

Contest continues to hold appeal – Sally Rae:

Chris Pemberton was just a lad when he competed in the Young Farmers Contest.

It was 2005 and, at 17, Mr Pemberton was one of the youngest regional finalists in the contest’s then 36-year history.

He was still at boarding school at St Kevin’s College when he competed in the Aorangi regional final.

While unplaced, he performed creditably and was a favourite with the crowd. . . 

Spaans new DairyNZ head – Stephen Bell:

Waikato dairy farmer Michael Spaans has been elected the new chairman of DairyNZ.

The industry-good body held a special meeting of the board this weekend.

Spaans will serve an annual term as chairman, leading an eight-member board made up of five farmer-elected and three independent directors.
He replaced long-serving chairman and former Cabinet minister John Luxton who retired from the DairyNZ board last month after 12 years of service on dairy industry bodies. . . 

Yashili New Zealand’s Pokeno factory opens – Gerald Piddock:

Yashili New Zealand Dairy Co has opened its new state-of-the-art infant formula manufacturing plant in Pokeno, south of Auckland.

The 30,000m2 plant will employ 85 staff and have an annual production capacity of about 52,000 tonnes of formula product. It will produce formula under the brand ‘Super Alpha-Golden Stage Infant Formula’ with shipments to China expected to begin in early 2016.

Yashili New Zealand is a leading producer of infant milk formula for the domestic market in China. It was founded in July 2012 and is a subsidiary of Yashili International Holdings and Mengniu Dairy Co.  The new factory took three years to build and cost $220 million. The company’s goals were to produce the highest quality infant formula and raise the healthiest babies in China. . . 

Yashili, Arla and Danone sign agreement – Gerald Piddock:

Yashili International along with European dairy producers Arla and Danone have entered into global strategic cooperation agreement.

Signed at the opening of Yashili’s new infant formula plant at Pokeno on November 6, the agreement will see the three companies work closer together in supplying products into Arla and Danone’s markets.

“It is a significant agreement between these two great dairy producers who are each committed to the highest standard of food quality and safety,” Yashili International Holdings president Lu Mingfang said. . . 

 


Rural round-up

October 22, 2015

Dear Consumer: They tell me not to get angry.  But If I am honest, sometimes I do. – Uptown Girl:

Dear Concerned Consumer,

The marketing research tells me that I should focus on the positive when I address you.   I shouldn’t talk about the environment, or the health of my soil – they say you do not care about those things.

They tell me not to discuss the challenge of feeding the world.  I should not detail the challenges of feeding my own family on a farmer’s income, with ever rising input costs, unpredictable weather patterns and buyer preferences that change with the direction of the wind.  They tell me this doesn’t register with you. . . 

Dairy downturn costs NZ economy $4.8 billion – Gerald Piddock:

The full scale of the dairy downturn nationally has been revealed after new statistics showed a $4.9 billion fall in dairy-related income from the 2014-15 season.

The statistics from DairyNZ showed the value of milk production to the national economy dropped from $18.1b in 2013-14 to $13.2b in 2014-15.

Waikato has taken a $1.8b loss in dairy revenue, from $4.2b to $2.4b over the same period. . . 

Good practice – good farm – Andrew Hoggard:

The Sustainable Dairying: Workplace Action Plan launched last week at Lincoln is the roadmap to achieving the dairy industry’s work environment objectives.

It is part of  an original initiative developed in 2013 by Federated Farmers and DairyNZ and aims to encourage good employment practice by dairy farmers

Whether we like it or not the dairy industry suffers from a perception problem when it comes to employment practices.

Some of that perception is based on the fact that it’s a dirty job and you need to get up early. We can’t do much to change that. . . 

Hilgendorf legacy marked:

Charlotte Hilgendorf, left, Prue Frost, Jane von Dadelszen, and Henrietta Scott, a granddaughter and three great-granddaughters of pioneering New Zealand plant scientist, Lincoln University’s Professor Frederick William Hilgendorf, were given the plaque from the campus building named after him which is being demolished, at a lunch last week at the University.

Some of the history and architectural features of the building was presented to the family members, as well as some stories from those who worked in it. . . 

Minerality mysteries remain:

Ongoing wine research by Dr Wendy Parr of Lincoln University indicates that while minerality is not a figment of tasters’ sensorial imagination, the source of the perception remains a mystery, and the description should be used with caution in formal wine tasting and judging situations.

Minerality’ is used by wine professionals to describe the character of certain wines, with vague references made to wet stones, crushed rock and soil. Regarded variously as a taste, a smell, a trigeminal (mouth-feel) sensation, or all three, until now there’s been little agreement on what is actually meant by this common but enigmatic term, or whether it even exists. 

Intrigued by the lack of scientific knowledge and the plethora of anecdotal evidence around minerality, Dr Parr collaborated with scientists in France and at Plant and Food Research in New Zealand to investigate what the concept means in Sauvignon Blanc wines, and whether there are cultural differences in perceptions of minerality. . . 

 

 
Rat detected on Ulva Island:

A rat has invaded predator-free Ulva Island/Te Wharawhara off the coast of Stewart Island, the Department of Conservation says.

Rat prints were first detected on a tracking card near the Post Office Bay houses as part of a routine tracking card and trap check.

Rodent detecting dog Gadget and her handler Sandy King found signs of a rat in two areas after checking the island. . . 

Rural city living in Gore – Tracy Hicks:

In late 2013 Gore district councillors, still feeling pretty chuffed with the results from the local body elections, gathered for the traditional post-election retreat.

With our three-year term stretching ahead of us, little did anyone realise that what we were about to hear would significantly impact on our decision making.

A talk by leading demographer Prof Natalie Jackson was the catalyst we needed to stop talking about what we could do to make a difference to our future, and actually start doing something. . . .


Rural round-up

October 19, 2015

Alliance Group makes pitch for ‘co-operatively minded’ farmers following SFF Chinese deal – Hamish McNeilly:

Confirmation of the Silver Fern Farms (SFF) deal with Chinese interests would not start a price war, Alliance Group chief executive David Surveyor says.

The Alliance Group was now positioned as the country’s only major redmeat co-operative, after shareholders of rival SFF voted to sell a 50 per cent stake to Chinese food giant Shanghai Maling.

The vote was 82.2 per cent in favour of the deal, and Surveyor saw an opportunity for the Invercargill-based co-operative. . . 

NZ Farmer editor wins international award – Gerald Piddock:

NZ Farmer editor Jon Morgan has won the International Federation of Agricultural Journalists Star Prize for writing at the organisation’s congress in Hamilton.

Morgan beat entries from 40 other member nations to win the award for his story on renowned South Wairarapa romney breeder Holmes Warren published in 2014.

He is the first New Zealander to win the award. . .

Launch of livestock trading platform:

A group of Hawke’s Bay entrepreneurs have launched StockX, an online rural trading platform for New Zealand farmers.

StockX say they will reduce wastage and inefficiencies in the current, outdated livestock trading system.

The platform says they allow farmers to buy and sell direct, operators to plan and optimise bookings and meat processors to source and buy direct from farmers. . . 

We don’t farm for free – and you don’t want us to!  – Uptown Girl:

When someone wants to discount my information on modern agriculture, they state that we are just “for profit farmers”.  People even protest farmers making a profit, with signs saying things like “people over profit”. 

Some people seem to be of the a mindset that those who are trying to make a living farming are in some sort of conspiracy with “Big Ag” that results in nearly all the evils of the world from starvation and obesity to autism and cancer. 

Last week, a visitor to my blog asked me to visit a website of a self proclaimed “sustainable farmer”.  He appeared to be taking full advantage of all the hot buzz words – he was verified organic, labor intense, small, local, natural, non-GMO, hormone free, antibiotic free, gluten free, Monsanto free – but he was not sustainable.   . . 

Farm-girl survival tips – Pink Tractor:

We know being a farm girl is the best, but it can also be a challenge. Whether you are new to farming or a lifelong farmer, it can be tough to juggle it all and be successful. There are times when you might feel like the only woman farmer in the world. But, you aren’t alone. Here are our best farm girl survival tips!

Find a seasoned farmer who can help you as a mentor. The farmers who know have tips, common farm sense and advice.

Accept that some years are better than others. Even if you do everything right, things will go wrong. Don’t be too hard on yourself. Farmers have to be optimistic and resilient. . .


Rural round-up: payout edition

August 8, 2015

Fonterra forecasts $3.85:

Fonterra suppliers will get a total possible payout of $4.85/kg of milksolids this season – but there’s a catch.

The farmgate milk price is $3.85/kg MS with a predicted dividend of 40-50 cents then an extra 50 cents for each fully shared kilogram giving a total of $4.85/kg MS.

But the extra 50 cents is a loan, interest-free for up to two years, which farmers will have to apply for. Farmers would have to pay the money back when the Farmgate Milk Price or Advance Rate went above $6/kg MS.

Shareholders’ Council Welcomes Fonterra Shareholder Support Package Announced as Milk Price Plummets:

Fonterra Shareholders’ Council Chairman, Duncan Coull said the Co-operatives unique position has enabled it to provide assistance to its farmers in these tough times. The announced support package in the form of an interest free loan of 50 cents per kgMS for production between June and December will help farmers get through the tough times ahead.

While Fonterra Farmers were expecting a drop in the forecast Milk Price (down $ 1.40 per kg/MS to $ 3.85) it does not make today’s announcement any easier to bear. The dividend forecast of 40 – 50 cents per share lifts the total available for payout to $4.25 – $ 4.35 per kgMs. The retention policy means that the forecast Cash Payout for the season would be in the range of $ 4.15 – $ 4.20 for a fully shared up farmer. . .

Interest-free loans soften payout hit – Fran O’Sullivan:

Fonterra’s top brass cooked up a $430 million parachute so that the dairy co-operative could offer farmers a cushion for yesterday’s brutal cut to the forecast milk payment.

Fonterra chief executive Theo Spierings and chief financial officer Lukas Paravicini began work on the deal five to six days ago along with a couple of the co-operative’s farmer directors.

The upshot was that the Fonterra board was able to yesterday tick off a plan to leverage savings from the company’s transformation project and pump them out to farmers in the form of interest free loans. . .

Plan – do more and work longer – Neal Wallace:

Gerald Holmes concedes he will be a grumpy employer this milking season.

The Taieri dairy farmer has been through downturns before and said the biggest change he will make on his 600-cow farm is to become more self-sufficient.

“It is easy to say no to everything regardless of how reasonable the expense is.”

Gone this season are the days of calling in a plumber, mechanic or electrician to repair equipment.  . .

Times just get tougher for dairy industry – Sally Rae:

”If it continues into next year, … it’s going to be ugly for a lot of people. There will be casualties eventually.”

That was the sobering response of Berwick dairy farmer Mark McLennan on a day dubbed ”Black Friday” for the dairy industry, with Fonterra slashing its 2015-16 forecast price to $3.85 per kg of milk solids, the lowest figure since 2002.

DairyNZ’s latest analysis showed an average farmer needed $5.40 per kg to break even. . .

Fonterra revises down milk price to $3.85 – Tao Lin  and Gerald Piddock:

Fonterra’s decision to slash the price it pays its farmers for milk solids will wipe $2.5 billion off the economy, an analyst says.

Fonterra has cut its milk price forecast to $3.85 per kilogram of milk solids, down from $5.25.

Fonterra has also announced it will provide an estimated $430 million in financial support for farmers to help them cope with the low payout. . .

It is tough down on the farm – Regan Schoultz:

Craig Maxwell, his wife Kathy, and their daughter Penelope have been living on their dairy farm in Paparimu just south of Auckland for 25 years.

It is a big part of who they are as people and a lot of time, blood and sweat has been poured into it.

News of Fonterra’s announcement, informing New Zealanders that the farmgate milk price is set at $3.85, is not welcome.

“It is obviously disappointing but not surprising,” he said. “Nobody is going to be shocked by that figure, but no one is going to be happy.” . .

Milk price drop will have big impact on rural communities:

Rural businesses, not just dairy farmers, will feel a big impact from Fonterra’s announcement today that its 2015-16 Forecast Farmgate Milk Price is reducing from $5.25 to $3.85, says industry body DairyNZ.

DairyNZ chief executive Tim Mackle says the drop means a further reduction of $150,000 for the average dairy farm income for this season. “The harsh reality of this announcement is that Fonterra farmers won’t actually receive $4.25-$4.35 because of the way the payment system works. It’s likely to be more like $3.65,” he says. (see graph below for more details)

“The effect on the level of payments over a season will keep farmers’ cash income constrained for at least the next 18 months and it will take some farmers many years to recover from these low milk prices. . .

Massive fluctations in milk price show NZ’s dairy model ‘flawed’, Landcorp boss Carden says – Paul McBeth:

 (BusinessDesk) – A $4.55 swing in the forecast milk price paid to farmers over two seasons shows there’s something wrong with New Zealand’s dairy model, which is centred around farmer-owned Fonterra Cooperative Group, and it needs to change, says Landcorp Farming chief executive Steve Carden.

Fonterra today slashed $1.40 from its forecast payout to farmers to $3.85 per kilogram of milk solids, below the 2015 season’s $4.40/kgMS and less than half the record $8.40/kgMS paid in 2014. A slump in global milk prices through the course of the year had markets primed for a reduced payout, and state-owned Landcorp, the country’s biggest farmer, was pleased to lock in as much as it could at Fonterra’s $5.25/kgMS guaranteed milk price for the current season.

Landcorp’s Carden said the Wellington-based state-owned enterprise had been anticipating a weak revision for a while, so today’s result wasn’t a surprise. . .

Government should fast-track rural infrastructure to assist dairy regions:

Federated Farmers wants the Government to fast-track its infrastructure projects in dairy regions to assist local economies through the downturn in dairy prices.

Fonterra has announced its forecast Farmgate Milk Price for 2015/16 of $3.85 per kilo of milk solids. In late July last year Fonterra’s forecast price was at $6 per kilo for the 2014/15 season.

Federated Farmers Dairy Spokesperson Andrew Hoggard says small scale rural service industries, such as engineering or contracting, in some instances might be hit harder than the dairy farmers they traditionally rely on for work. . .

‘Black Friday’ will mean huge debt for farmers – Emma Jolliff:

Today has been dubbed ‘Black Friday’ not just for dairy farmers, but the whole New Zealand economy.

Fonterra has slashed its forecast payout to farmers to $3.85 per kilogram of milk solids, which is well below the break-even rate of $5.70.

Economists say it could strip $1.5 billion or more out of the New Zealand economy.

Sally Bosch has been sharemilking for eight years.  She knew a drop in the payout was coming, but not one this big. . .

Farmers cashing up assets – Dene Mackenzie:

Otago dairy farmers are selling what they can to generate cash flow as they face up to an immediate prospect of lower milk payout prices for the next 18 months to two years.

Holiday homes, second cars and unneeded plant and equipment have been the first on the block but accountants contacted yesterday by the Otago Daily Times say more, harder decisions will need to be made by some farmers.

Fonterra will this afternoon announce what many expect to be a sharply downgraded milk payout forecast for the current season. . .

 

 

 


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