Rural round-up

July 4, 2018

Dairy prices tumble 5% at latest auction – Gerard Hutching:

Prices plunged at the latest global dairy auction by 5 per cent per cent to reach an average of US$3232, the most dramatic decrease seen in the index this year.

The price for New Zealand’s key export whole milk powder (WMP) was US$2905, a fall of 7.3 per cent. Futures markets had suggested WMP might fall by 1 per cent. 

AgriHQ said Fonterra’s latest Global Dairy Update appeared to have given the market the jitters, especially for WMP. . . 

Trade dispute causes dairy prices to tumble – Fran O’Leary:

Dairy markets appear to be reacting negatively to President Donald Trump’s decision to place tariffs on Mexican steel and aluminum, and on a number of Chinese products.

“In retaliation, Mexico announced that they will place a tariff on U.S. cheese, and China announced tariffs on some dairy products, corn, soybeans and other products. Mexico is the largest export market for U.S. cheese,” says Bob Cropp, University of Wisconsin Extension dairy economist.

“In 2017, Mexico accounted for 28.3% of U.S. cheese exports. While these tariffs didn’t take effect until July, and the degree of impact on U.S. dairy exports is unknown at this time, dairy product prices have already fallen.” . . 

2019 Zanda McDonald Award now open:

Talented young agri-leaders from Australia and New Zealand are being urged to apply for the 2019 Zanda McDonald Award. Applications for this prestigious award open today, with an impressive prize package worth over $50,000 up for grabs.

Now in its fifth year, the award provides the winner with an all-expenses paid trans-Tasman mentoring trip, $1,000 cash, a place on Rabobank’s Farm Managers Course, and access to the Platinum Primary Producers (PPP) Group – a network of over 150 influential agri-business men and women from across Australasia.

Richard Rains, Chairman of the Zanda McDonald Award, says the award provides a fantastic opportunity for young agricultural leaders to further their career and their personal development. . . 

Backing our Southern men:

There’s something magical about having a hometown advantage.

But that advantage comes with a twist for two southern men who are competing in the FMG Young Farmer of the Year grand final in Invercargill this week.

Technically, there are two southerners competing in the final, but they represent different regions in the contest. 

Logan Wallace, 28, leases his parents farm at Waipahi in south Otago and is the Otago-Southland regional finalist, while Cameron Black, 25, who is based in Christchurch as a rural consultant for New Zealand Agri Brokers is the Aorangi regional finalist. . . 

A2 Synlait agree to extend infant formula supply deal – Sophie Boot

(BusinessDesk) – Dairy marketer A2 Milk and milk processor Synlait Milk have agreed to extend their infant formula supply deal and increase the volume of formula Synlait will supply as the two continue to focus on sales in the lucrative Chinese market.

A2 and Synlait first signed a supply agreement in 2012 to support the milk marketing firm’s plans to launch infant formula sales into China, and inked a new deal in August 2016 providing for increased scale if market demand warranted it.

The companies’ arrangements were for a minimum of five years from 2016, with a rolling three-year term from August this year, but have been extended by two years so will last until at least July 2023. Synlait will increase the volume of infant formula products it is A2’s exclusive supplier for and increase its committed production capacity. . .

Latest report from Land and Water Forum:

The Government has said it will act immediately on some recommendations of the Land and Water Forum. This includes prioritising action in the most “at-risk” catchments.

Advice was sought by Environment Minister David Parker and Agriculture Minister Damien O’Connor on a number of issues on waterways and the primary sector.

“The Government will act on some of the Forum’s recommendations immediately, while the remaining recommendations will be considered in more detail as part of our work programme,” David Parker said. . .

First female arable chair joins Feds national board:

Federated Farmers has a new board member as a result of elections held during last week’s national conference in Wellington.

Karen Williams, who was elected arable chairperson at that industry group’s annual meeting in Timaru in June, was elected to the national board by delegates from Federated Farmers’ 24 provinces. She replaces Guy Wigley, who stepped down after three years as arable leader. . . 

A new chapter in the history of Vidal – one of New Zealand’s oldest wineries:

On June 30 the doors of the Vidal Estate winery and restaurant in Hastings closed for the last time. It was a historic moment for the winery established by pioneer Anthony Vidal in 1905, but the future of Vidal Estate looks bright with the relocation to a new state-of-the-art winery located in the Gimblett Gravels, Hawkes Bay.

To make great wine, the closer to the vineyards the better, said Hugh Crichton, winemaker at Vidal Estate. “It was an exciting time to move our winemaking base out to the Gimblett Gravels for vintage 2018. While it has been immensely satisfying to ferment and age our wines in the historic cellars in Hastings there’s no denying there were challenges. Being closer to our vineyards and working within a winery designed for quality will without a doubt further push us into the premium market”. . . .

Leading New Zealand winery-based hospitality business placed on the market for sale:

One of New Zealand’s biggest winery-based tourism and hospitality operations – encompassing vineyards, a function centre, restaurant, and high-end accommodation – has been placed on the market for sale.

Mahana Estates just west of Nelson generates income from four revenue streams which operate both independently and conjunction with each other.

The Mahana Estates property portfolio encompasses:
• A 21-hectare vineyard planted in pinot noir, pinot gris, Riesling and chardonnay
• A nine hectare sauvignon blanc vineyard in the nearby region of Hope
• A 2,589 square metre four-level winery capable of crushing 500 tonnes of grapes annually and sustained by its own on-site cellaring facility and bottling plant which operates on a gravity feed system to minimize the need for pumps . . 

Aussie grain giant puts mega farm up for sale – Chris Mccullough:

The owner of the 495,000 acre farm is asking $72 to $82 million
for what is one of Australia’s largest arable operations

One of Australia’s biggest arable farms extending to 495,000 acres is up for sale at a price tag of $72 to $82 million.

Western Australian grain giant John Nicoletti decided to retire from grain farming at 64 years old. . .


Rural round-up

September 20, 2013

Beef + Lamb New Zealand appoints Chair-Elect:

Northland farmer and Northern North Island Director for Beef + Lamb New Zealand, James Parsons was appointed Chair-Elect for Beef + Lamb New Zealand at the organisation’s board meeting today.

The position of Chair–Elect has been made to allow an orderly transition of leadership for Beef + Lamb New Zealand, following the announcement from current Chairman, Mike Petersen that he will not seek re-election when his term ends in March 2014.

“This appointment is a very important part of the governance process,” Petersen said.

“Beef + Lamb New Zealand puts strong emphasis on the development of all directors, and there has been a real focus on growing the leadership ability of the board for the benefit of the wider sector. . .

Wattie’s Starts Precision – Planting This Season’s Beetroot:

– Day One of 20 weeks of planting

– Resurgence of consumer interest in beetroot

Wattie’s has started precision-planting this season’s beetroot crop, and will continue over the next 20 weeks until a total of 350 hectares have been planted.

The first seed has been planted in the Paki Paki area of Hawke’s Bay for what will be a 20,000 tonne crop, Wattie’s second biggest annual crop behind tomatoes.

Harvesting of the first baby beets is scheduled for the second week in December. . .

Irrigators urged to check for lightning strike damage:

IrrigationNZ says farmers should exercise caution when starting irrigation systems – even if storm damage isn’t obvious – as lightening strike has emerged as a secondary cause of problems following last week’s storm.

“Just because your centre pivot didn’t blow over in the wind doesn’t mean your system is ok. We are now hearing reports of irrigation control systems fried by lightning strike, especially along the Canterbury foothills. Farmers need to check their infrastructure carefully before the season begins. Don’t start your irrigator before you’ve undertaken the appropriate safety checks,” says IrrigationNZ CEO Andrew Curtis.

“Irrigation system pre-season checks will be even more important this year as parts and labour will be in short supply due to the storm. Irrigators can not afford for their irrigator to break down due to negligence as it will result in downtime. Basic checks like ensuring the pivot tracks are free from obstructions, tyre pressures are correct and so forth are a no-brainer,” says Mr Curtis. . .

Invermay Delegation Meeting Minister of Economic Development:

Dunedin Mayor Dave Cull is leading a delegation to meet with Economic Development Minister Steven Joyce to discuss alternatives to the proposed downsizing of Invermay in Wellington at 5pm today.

The group includes Environment Southland chair Ali Timms, former Dunedin MPs Katherine Rich and Pete Hodgson, Otago Regional Council chair Stephen Woodhead and its CEO Peter Bodeker.

Dave Cull says any reduction in roles at Invermay will have a serious economic and strategic impact.

“From Dunedin’s perspective, there is potential for smart businesses and jobs to come out of there. From a regional point of view, the expertise at Invermay is crucial to ensure the continuation of leading environmental research related to farming and other industries which contribute significantly to the Otago and Southland economies. We believe the proposal would also have serious economic implications at a national level.” . . .

Double Gold for Rapaura Springs 2013 Sauvignon Blanc:

Rapaura Springs is continuing to strike gold with its Marlborough Sauvignon Blanc, with a double win at the New Zealand International Wine Show 2013.

The Rapaura Springs 2013 Marlborough Sauvignon Blanc and Rapaura Springs 2013 Reserve Marlborough Sauvignon Blanc both won gold medals at the country’s largest wine competition.

Owner Brendan Neylon said Sauvignon Blanc was Marlborough’s flagship wine, and it was imperative that the region worked hard to continue to produce the world’s best. . .

Rockburn Wines Win At the Biggest and Most Prestigious Wine and Spirits Competition In China:

Rockburn Wines has been awarded a prestigious Double Gold medal in the 2013 China Wine and Spirits Awards for their 2009 Rockburn Chardonnay, while the 2011 Pinot Noir took out its own Gold award.

The Central Otago winery has a history of winning gold medals, particularly for its Pinot Noir, and this month alone has also collected a Gold Medal at the Bragato Wines Awards for their 2012 Pinot Noir and a Gold Medal at the New Zealand International Wine Show for their 2012 Tigermoth Riesling. . .

Marisco Vineyards wins NZ Wine Producer of the Year in China:

Marisco Vineyards has been awarded the Trophy for New Zealand Wine Producer of the Year at the China Wine and Spirits Awards. The company’s wines also won four double-gold, six gold and two silver medals in the prestigious annual competition, continuing their golden run in the rapidly growing Chinese wine market.

Chief Winemaker and Proprietor Brent Marris says the trophy and medal haul will consolidate The King’s Series and The Ned’s position as market leading New Zealand wine brands in China.

“The Chinese market is very complex. One of the challenges is that it is culturally a very status driven market so old world wines have tended to dominate. But awards like this endow enormous status on our brands, new world wines generally, and New Zealand wines specifically, and this win will build our brand profile, and help increase distribution and cement our foothold in the Chinese market,” Marris says. . .

Organics: The Future of New Zealand Wine?

Major three-year project aims to see a fifth of all Kiwi vineyards certified organic by 2020.

The oldest winery in the country, Mission Estate, is also one of the most technologically advanced and sustainable. Now, in a move that could have implications for the New Zealand wine industry as a whole, Mission Estate is into its final year of a major study on organic grape-growing – a trial that may potentially see this influential winery make a significant commitment to increasing its organics production.

The Organic Focus Vineyard Project is New Zealand’s first public trial of organic grapes grown side by side with conventional grapes. The pioneering participants are Gibbston Valley in Central Otago, Wither Hills in Marlborough, and Mission Estate in Hawke’s Bay, where the project was piloted during the 2010-11 season. Mission viticulturist Caine Thompson is monitoring 16 hectares of Gimblett Gravels vines, with half being grown in the conventional manner and half under strict organic controls. . .


Rural round-up

September 6, 2013

Record number of Rural Women members step up as candidates in local elections 2013:

A record number of Rural Women NZ members are standing in this year’s local elections, motivated by the need for better understanding by councils and District Health Boards of the challenges facing rural communities.

At least 14 Rural Women NZ members are standing around the country, with three already certain of their seats, being unopposed.

Rural rates are a hot issue, particularly the disproportionate share of rates being shouldered by farmers, which is a top priority for many.

Sharyn Price, a Kauru Hill Rural Women member standing for the Corriedale Ward of Waitaki District Council, says, “Rates fairness and value for money are utterly essential. Rural ratepayers have seen much larger percentage increases in rates than council’s averages, thanks to farm development increasing capital values, while town values fail to keep pace. Paying ever more for a shrinking share of services is not reasonable.” . .

$25m invested in new forestry technologies:

The Government is investing $2.5 million over a maximum of five years to support research that will increase the productivity of the forestry industry, Science and Innovation Minister Steven Joyce announced today.

The funding will support the development of new technologies that can be used by pine tree breeders to reduce the time it takes to breed and plant new improved trees by 15 years.

The Radiata Pine Breeding Company, which has formed a partnership between 16 forestry organisations, Scion and the University of Canterbury, is researching and developing the new technologies. . .

RMA reform bill third reading ‘a reform entrée’:

 Federated Farmers is welcoming some parts of the Resource Management Reform Bill 2012, which recently passed its third reading in the Parliament. 

 “While some parts of the Bill relate to Auckland, other parts are an economic and environmental appetizer for farmers,” says Ian Mackenzie, Federated Farmers Environment Spokesperson.

 “There are some aspects we welcome, some we have reservations about and some we do not think go far enough.

 “A few environmental activists have irrationally fought tooth and nail against having a robust cost benefit analysis in the RMA.  Without one, however, the RMA was increasingly trending towards perfection as a benchmark and that is as unaffordable as it is unobtainable. . .

Hoorah for Rotorua lake water quality!:

Federated Farmers applauds a recent Bay of Plenty Regional Council report showing water quality improvement in the Rotorua Lakes catchment has improved significantly.

“This gives a good, accurate illustration on the state of water quality within Rotorua Lakes,” says Neil Heather, past provincial president Federated Farmers Rotorua-Taupo.

“It highlights all the good work done through collaborative partnerships with landowners and the community undertaken to improve the lakes’ water quality. Federated Farmers supports the regional council’s use of the Trophic Level Index (TLI), which has undoubtedly led to an overall increase in water quality of the lakes catchment.

“A major impact on these results was the decision to apply alum dosing, which is key for algal growth meaning there are now less favourable conditions for weed growth and algal blooms. . .

New Zealand Young Farmers Appoints New CEO, Terry Copeland:

New Zealand Young Farmers is pleased to announce the appointment of the new CEO, Terry Copeland. After twelve years of service to NZYF as CEO, Richard Fitzgerald is stepping down.

Mr Copeland, comes to Young Farmers with an arsenal of experience from management, sales and marketing and supply chain management to tertiary teaching, journalism and being a brand ambassador.

His latest post was with Treasury Wine Estates, the second largest wine company globally. He led the export strategy and the supply chain team for four years. . .

MPI To Work with Farmers On Blackgrass Biosecurity Response:

Federated Farmers is working with the Ministry for Primary Industries (MPI), and other stakeholders to ensure that blackgrass is not established in New Zealand, following the news of a potential blackgrass incursion in mid-Canterbury.

“The seed was spilt between Ashburton and a seed dressing plant in the Methven area and is a serious threat to arable farming in New Zealand,” says David Clark, Federated Farmers mid-Canterbury Grains Chairperson.

“We have just one chance to get this right and we commend MPI for identifying and informing us of this restricted weeds presence.

“Federated Farmers is firmly committed to working collaboratively with MPI and the Foundation of Arable Research to mount a credible response. . .

Synlait joins the ‘Good News Club’

Federated Farmers is thrilled that Synlait has increased their forecast milk price of $8 per kilogram of milk solids.

“Synlait has joined the ‘Good News Club’ at a time when dairy farmers needed some reassurance in the strength of the market,” says Willy Leferink, Federated Farmers Dairy Chair.

“It has been a tumultuous time for the dairy industry this past month, but it is clear from Fonterra, Westland and Synlait that the demand for New Zealand milk is stronger than ever. . .

Wool Prices Continue to Rise:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the 9,400 bales of North Island wool on offer this week saw a 98 percent clearance and significant price lifts in some sectors compared to the last sale in the South Island on 29th August.

The weighted indicator for the main trading currencies lifted by 1.05 percent, however resurgence in wool prices in other markets coupled with limited supply locally, bypassed any currency impact with the market lifting between 3 and 10 percent.

Mr Dawson advises that Fine Crossbred Fleece and Shears were 3 to 6 percent dearer. Good Style Coarse Full Fleece were 5 to 6 percent stronger with poorer styles lifting by 7 to 10 percent. . .

Rural Equities annual profit slides 31% on property revaluations, drought; lifts dividend:

(BusinessDesk) – Rural Equities, the farming group controlled by the Cushing family, reported a 31 percent drop in annual profit as property revaluations lagged behind those from a year earlier, and as the North Island’s worst drought in seven years ate into operating earnings.

Net profit fell to $10.9 million in the 12 months ended June 30, from $15.8 million a year earlier, the Hastings-based company said in a statement. Profit included a gain in the 27-farm property portfolio of $4.9 million, smaller than the $14.3 million revaluation in 2012. Operating earnings declined to $2.1 million from $2.9 million as the drought increased the cost of feed, and the farms received lower prices for milk, sheep and wool. . .

 Eastpack Celebrates 30 Years of Packing Kiwifruit:

Leading kiwifruit post harvest supplier, EastPack has celebrated 30 seasons of packing kiwifruit. EastPack, which began in Edgecumbe and was originally called Rangitaiki Fruitpackers Co-operative, is now New Zealand’s largest post harvest kiwifruit operator, following its merger earlier this year with Satara.

Chief Executive Tony Hawken has led the company through 30 years of continuous growth.

“From day one, we have always had, and continue to have, a reputation for looking after our growers no matter how challenging the circumstances,” Mr Hawken said.

“As a grower-owned company, EastPack growers share in the company’s financial success. We consistently deliver industry-leading orchard gate returns (OGR) through our operational efficiencies, inventory management and our grower-owned structure.” . . .

Sacred Hill scores high in Gimblett Gravels Vintage Selection:

Hawkes Bay’s Gimblett Gravels has selected its top wines from an outstanding 2011 line up and Sacred Hill Vineyards is the only producer to have two wines make the grade in the prestigious Annual Vintage Selection (AVS), recording the highest scoring wines in two categories.

The selection of wines from the 2011 vintage was made this week following a tasting by one of the world’s most highly respected Masters of Wine, Andrew Caillard of Australia.

Gimblett Gravels producers were allowed to put forward no more than three wines each for the tasting with a maximum of two from any winery eligible for the final selection of 12 wines. Only wines scoring 93 points out of 100 or more were selected. . .


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