Rural round-up

November 18, 2014

Aussies eye fairer fight with NZ dairying  – Matthew Cranston & Tim Binsted:

As an exporter of 40,000 litres of milk to China a year, Lemontree Dairy has had to wait 11 years for the same treatment in China as New Zealand dairies.

“We have been fighting with one hand behind our back for years now with New Zealand but with this free trade agreement being equal to New Zealand will make the fight fairer,” said director James McNamee.

“It’s about time they got it over the line.”

Australia’s free trade agreement with China is set to provide A$630 million in savings from 2016 to 2025 as the tariffs are wound back, according to Australian Dairy Industry Council. . .

Black market for messy mutton  – Tracey Chatterton:

Sheep carcasses are being dumped on Hastings streets as thieves continue to target livestock.

Meat continues to be sold on the black market despite suspects having already been arrested in recent months, Flaxmere community constable Greg Andrew said.

Ratepayers were footing the bill for the mess sheep rustlers were making.

Hastings District Council contractors collected and cleaned up the dumped carcasses and offal at a cost of between $100 and $300 per carcass. . .

Milk price variability – what it means for dairy farm businesses  – Grant Rowan:

It may not appear to be, but the milk price is trending upwards.

It is also becoming more and more volatile, with the past 18 months a good case in point. In May 2013 global Whole Milk Powder (WMP) prices peaked at US$5600/tonne. The average WMP price at Fonterra’s most recent Global Dairy Trade auction was US$2522/tonne.

The question for anyone interested in the health of NZ’s biggest export industry is how are dairy farmers faring?

This edition of Farm Investment Insight explores milk price variability and the tools farmers can use to generate operating profits in times of negative price shocks. . . .

Is Our Food Safety System as Strong as We Think. Private Sector vs Public Sector – Milking on the Moove:

Is our food safety system as robust as we think it is? And are we better served by the public or private sector?

Last week I blogged about my issues getting the mobile cowshed evaluated by inspectors.

The way the food safety system works, is the government agency via The Ministry of Primary Industries (MPI) set the food standards. When a company sets up a food business, the verification services are provided by the private sector.

In New Zealand we have AsureQuality, which is a state owned enterprise, but it operates as a for profit business. There seems to be only two other providers, Eurofins & SGS in NZ who can offer dairy evaluation services. . .

Cut fees for Ag degrees:

GETTING YOUNG people into agribusiness is critical for New Zealand’s future, says ANZ chief economist Cameron Bagrie.

 He told the recent Zespri conference that he is concerned to see the right people enter the agri sector in the numbers required. For example, the kiwifruit industry will soon be producing 30 million more trays of product and will need more people to cope with that trend.

Bagrie is convinced that most young people do not understand the long term future they could enjoy in some primary industries. . .

$18mln payday for Rural Women NZ in sale to Green Cross Health – Jonathan Underhill:

Green Cross Health has agreed to pay around $18 million for Access Homehealth, a not-for-profit home healthcare services company owned by a grass-roots charitable organisation, Rural Women New Zealand, which will gain representation on the Green Cross board as part of the deal.

The purchase will add to earnings immediately, said Green Cross, formerly known as PharmacyBrands and the owner of the Life Pharmacy and Unichem pharmacy chains. Access has annual sales of about $85 million and employs about 4,000 people, the Auckland-based company said.

The purchase price, which includes assumed debt, will be funded from existing cash and bank funding, Green Cross said. . .

 Grow your own with a hand from Ballance science:

With cashflows tight on dairy farms, pasture comes out on top as the cheapest feed source and getting the best grass for the least cost can be achieved with a hand from science.

Ballance Science Manager, Aaron Stafford says the “grow your own” approach of using nitrogen fertiliser to boost pasture growth provides the most cost-effective supplementary feed, but with cash-strapped farmers working within very tight budgets, they want to be confident of a good pasture response to money spent on nitrogen.

“There is nothing more frustrating than seeing a poor or variable pasture response nitrogen fertiliser to boost feed availability. We can help farmers get the best results by enabling them to tailor application rates to areas which are likely to produce the highest pasture response.” . . .


Rural round-up

September 24, 2014

Beef surges to record on US demand for hamburgers, outlook upbeat – Tina Morrison:

(BusinessDesk) – Prices for beef used in hamburger patties in the US are likely to hold at elevated levels after surging to a record in the past year as drought-ridden American farmers rebuild their herds, boding well for kiwi farmers, an analyst says.

The price for US imported 95CL bull beef, the raw ingredient for meat patties, has surged 59 percent to US$3.18 a pound in the past year, according to Agrifax data. In New Zealand dollar terms, the price is at $8.37 per kilogram, beating the previous record of $6.60/kg in 2001.

“It has just been rocketing up very sharply. It is well into record territory now,” said Nick Handley, senior sheep and beef analyst at Agrifax. “If prices can stay anywhere near these levels, it’s extremely positive for New Zealand because you expect a lot of that to flow through to New Zealand processors and New Zealand farmers.” . . .

Time right for large irrigation schemes:

Farming and irrigation lobby groups are eager for the new Government to change environmental rules and get large-scale irrigation schemes up and running.

Lobby groups Federated Farmers and Irrigation New Zealand say the time is right, with the National Party being re-elected by a handsome margin for the Resource Management Act to be reformed.

Irrigation New Zealand chief executive Andrew Curtis said today that proposals by Labour and the Green parties to tax water did not find favour with irrigators, and National’s resounding win on Saturday gives them more confidence.

Mr Curtis said Irrigation New Zealand wants to see changes to the RMA. . .

Farmers Disappointed with Milk Price Drop, Cautious Approach Required:

Fonterra Shareholders’ Council Chairman, Ian Brown said Farmers will be disappointed following the Co-operative’s latest drop in its 2014/15 forecast farmgate Milk Price to $5.30 per kg/MS.
The Co-op also announced an estimated dividend range of 25-35 cents per share.

Mr Brown: “Even though Farmers are aware of the prevailing market conditions and the effect they have on the price they receive for their milk the announcement will add to the challenges being faced on-farm.

“It is in these seasons that Farmers will want to receive the full benefit from the integrated supply chain that their Co-op provides. . .

Great Result for Farmers Following Challenging Year for Co-Op:

Fonterra Shareholders’ Council Chairman, Ian Brown said the 2013/14 season was one of real complexities for the Co-operative yet produced a great result for Farmers.

Mr Brown: “The farmgate Milk Price of $8.40 per kg/MS has come on the back of a season in which good production was supported by strong demand and high prices.”

“This will be very well received by Farmers.”

Mr Brown said it was important to recognise that the same factors which positively affected the farmgate Milk Price, such as the demand for milk powders, contributed to the challenges faced by the business in terms of profit as evidenced by the Earnings Before Interest and Tax (EBIT) figures. . .

 Couple give their farm to university – Jill Galloway:

It was a time for celebrating.

After 10 years, Bulls-Marton farm owners Jim and Diana Howard found they could work with Lincoln University and it had a deal with local iwi Ngati Apa.

It had not been for lack of trying to find a like-minded partner.

But now it has come together – a demonstration farm that local farmers can look over the fence at, and get good ideas, as well as a farm to train people in sheep and beef and cropping.

That was what the Howards wanted and they have given their farm to the Lincoln Westoe Trust. . .

Candidates for Fonterra Board of Directors’ Election Confirmed:

Candidates for the Fonterra Directors’ Election were announced by the Returning Officer, Warwick Lampp today following the completion of the Candidate Assessment Panel (CAP) process.

This year there are six candidates standing for the Board of Directors. They are Gray Baldwin, Leonie Guiney, David MacLeod, John Monaghan, Garry Reymer and Grant Rowan.

As in previous years, the CAP process was available to assess the capabilities, experience and qualifications of Director candidates and provide Fonterra shareholders with more information to help in making an informed vote. While the CAP process is open to all Director candidates, it is not compulsory. This year all candidates went through CAP. . .

 

Pahiatua Company Announced as New Zealand Innovators Awards Finalist:

Pahiatua company, DTexH2o, has been named as a finalist in the Innovation in Agriculture & Environment category of the prestigious New Zealand Innovators Awards.

The company’s innovative product, DTexH2o, is an in-line electronic probe that detects the difference between milk and water in the cowshed milk line.

Founders of the company, Graeme and Alison Franklin, said the DTexH2o uses an alarm to stop farmers spilling milk down the drain or getting water in the milk vat during wash-down.

“When a farmer washes-up the milk line, water is pumped through the pipes, pushing the last milk through into the vat. The farmer must manually turn the valve to re-route the water to stop it going in the vat,” Alison said. . .

New Chairman Excited by Gimblett Gravels Opportunities:

Less than a week into his role, new Gimblett Gravels Winegrowers Association (GGWA) Chairman, Gordon Russell, is already working on plans for GIMBLETT GRAVELS future success.

Esk Valley’s Senior Winemaker, Gordon says, “I am honoured to become Chairman of this talented group of growers and wine producers. I would like to carry on the work of outgoing Chairman, Tony Bish of Sacred Hill, whose strategic direction and dedication over the last two years has significantly raised the profile of GIMBLETT GRAVELS wines, both in New Zealand and on the international stage. . .


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