Rural round-up

May 28, 2016

Westland ups its payout prediction for the coming season:

New Zealand’s second biggest dairy co-operative Westland Milk Products has released a budget for the 2016-17 dairy season of $4.55 – $4.95 per kilo of milk solids (kgMS).

Payout for the current season will be in the range of $3.80 – $3.90 per kgMS.

Westland will also start its payout advance payments for the 2016-17 season at $3.80 per kgMS, payable 20 September 2016. . . 

Westland tops Fonterra – Hugh Stringleman:

Dairy farmers received cold comfort when Fonterra announced a low forecast milk price of $4.25/kg milksolids for the new season from June 1, with an advance rate beginning at $3.01.

Analysts’ expectations had been for an opening price of $4.60 or more, as well as some upside when world product prices steadily improved as expected towards the end of 2016.

They said Fonterra seemed to base its opening forecast on spot market prices and not the generally expected improving trend. . .

Farm profits help rural students get ahead – Kate Taylor:

A hill country farm east of Dannevirke has helped hundreds of young people with their tertiary studies. Kate Taylor visited to find out how.

Sheep and beef farmer Max Buckendahl has called the Weber district home for almost three decades but when his 30th anniversary rolls around next year he’s off to see the country.

Together with partner Lynn Moss and a fifth-wheeler artic truck caravan, he’s going to work (and fish) in the warmer climates of Northland for half the year and travel New Zealand for the other half.

“There’s no particular reason to go now but I wanted to stay here 30 years first,” he says. . . 

Silver Fern Farms:Details of Special Meeting:

• Special Meeting date set for Monday, 11 July 2016

Dunedin 27 May 2016: Silver Fern Farms has today settled the statement from two of the 80 requisitioners, in a form that Silver Fern Farms is willing to include in its Notice of Meeting, and has set a date of Monday 11 July to hold the Special Meeting.

The Board has received a statement from two of the 80 requisitioners and notes that the original 80 requisitioners sought a meeting of shareholders to consider: . . 

Silver Fern shareholders to vote again on Shanghai Maling deal in July – Paul McBeth:

 (BusinessDesk) – Shareholders of meat processor Silver Fern Farms will have a second vote on whether to approve its planned tie-up with China’s Shanghai Maling Aquarius in July, though the board intends to go ahead with the deal irrespective of the outcome.

The cooperative today set the meeting for July 11 in Dunedin where shareholders will vote on approving the proposed partnership and restructure, where the Chinese firm takes 50 percent ownership of the meat processor in return for $261 million of cash, a special dividend, and funds to bankroll the cooperative for seven years. Shareholders backed the deal in October, but John Shrimpton and Blair Gallagher, representing a group of 80 shareholders, have since sought a special meeting to effectively reconsider the transaction. . . 

Federated Farmers welcomes Freshwater Improvement Fund:

Federated Farmers is commending the Government on a new $100 million Freshwater Improvement Fund to aid communities investment in solutions for water quality in New Zealand’s rivers, lakes and groundwater supplies, announced in yesterday’s budget.

Federated Farmers water spokesperson Chris Allen says the fund will help communities achieve desired water quality outcomes sooner.

“It’s going to take innovative thinking, time and money to get to the level of water quality our communities aspire too,” he said. . . 

TB continues to be challenge for next decade:

Funding for TB control is less than it has been in the past but Federated Farmers is confident the new programme will continue to make progress with a more efficient spend of the money.

Federated Farmers OSPRI (TB Free NZ) spokesman Anders Crofoot said: “The amended TB Plan is a shift in approach from containing the disease to active eradication in livestock and wildlife. To date we’ve been successful at removing TB from large areas of New Zealand. This means with improved operational efficiencies and targeted work, enabled by advances in modelling we should see new TB Plan targets achieved.

The programme carried out by OSPRI will aim to eradicate bovine TB from cattle and deer by 2026, and from TB-infected wildlife in New Zealand by 2055. . . 

Government Support for Landcare:

Yesterday’s Budget marks a return to stable base-line funding for the work of NZ Landcare Trust.

The Minister for the Environment is responsible for financial appropriations for the 2016/17 financial year which include approximately $27 million for grants to third parties for water initiatives, environmental management and education programmes.

A specific appropriation identified within ‘Vote Environment’ has been established for the promotion of sustainable land management practice through a national network of coordinators. These funds are available due to the reprioritisation of $800,000 from the Community Environment Fund. This transfer reflects joint Ministers’ decision to fund the NZ Landcare Trust activities for 2016/17 and out years. No expiry date for this resourcing commitment has been set and it is identified as an on-going commitment. . . 

DairyNZ’s commitment to supporting dairy farmers:

Industry body DairyNZ is committed to supporting dairy farmers following the announcement by Fonterra of an opening forecast Farmgate Milk Price of $4.25 per kgMS for the 2016-17 season.

“The $4.25 per kgMS is not a surprise, although the particularly low opening advance rate of $2.50 per kgMS plus capacity adjustment is tough for farmers who will find the winter particularly difficult,” says DairyNZ chief executive, Tim Mackle. “This is the lowest opening advance rate in at least the last 14 years.

“The break-even milk income required for the average farmer is $5.25 per kgMS, yet under this forecast scenario they’ll only be receiving $4.45 per kgMS all up in terms of farm income, including retro payments from last season and dividends. . .

PwC supports NZ Milk Futures to manage milk price risk:

The NZX today launched a NZ Milk Futures contract that will eventually provide the opportunity for large and small dairy farmers to proactively risk manage milk price movements and volatility.

“The new futures contract essentially replaces, and considerably enhances, the Guaranteed Milk Price (GMP) contract previously offered by Fonterra,” says Roger Kerr, PwC Partner and Treasury Advisor.

“While the new futures contract has been expected, it will need support from the market to ensure its viability. This means that industry players with resources available to make this commitment, should be encouraged to participate,” says Mr Kerr. . .


Rural round-up

June 3, 2015

At Mt Mable what you see is what you get– Kate Taylor:

A PASSION for bloodlines and pedigrees is evident when talking with Norsewood angus breeders Kevin and Megan Friel.

Mt Mable Angus Stud was established at Ohura, west of Taumarunui, almost 50 years ago by Kevin’s parents Allen and Maisie Friel, with the majority of foundation stock acquired from the Puketutu Stud.

On-farm sales started in 1986. Kevin and Megan took over in 1997 and moved the stud to the 880ha Pukerimu Station at Norsewood, north of Dannevirke, in 2008. . .

BERL projects calf feeding could give dairy economy a $340m GDP boost:

Economic benefits worth up to $340m in GDP could accrue from an innovative new science-based and internationally peer-reviewed calf nutritional programme if adopted by 10% of the national herd, new research shows.

Economic research firm BERL has analysed the results from a seven-year ongoing longitudinal study conducted by Massey University (the first research of its kind in New Zealand) into the efficacy of the Queen of Calves feed supplement programme, which uses marine and land plant extracts to enhance the nutritional value of the milk fed to calves. . .

Applications Open for Fonterra Farmers to Lock in Guaranteed Milk Price:

Following last week’s announcement of the 2015/16 forecast Farmgate Milk Price, applications are now open for Fonterra farmers to lock in a Guaranteed Milk Price (GMP) for a percentage of their milk.

There are two opportunities in the 2015/16 season to secure a GMP on 60 million kgMS – up to 40 million kgMS is available in June, and up to 20 million kgMS will be available in December. Farmers who are looking for a GMP can now apply to supply some of their estimated milk production across one or more of five prices ($5.25, $5.15, $5.05, $4.95, and $4.85) at and below the 2015/16 forecast Farmgate Milk Price. . .

Southern Dairy Hub Gets Green Light:

The Southern Dairy Hub has the approval needed to proceed from its industry partners, DairyNZ and AgResearch.

Southern Dairy Development Trust Chair Matthew Richards says the Trust presented the results of its fundraising efforts to the Board of Directors of DairyNZ and AgResearch this month, and sought their approval and financial backing.

The Trust received 516 farmer pledges, with funds committed totalling $1.3 million. It had targeted $2 million in farmer pledges towards the proposal but the support from a majority of southern dairy farmers was a key determining factor in both Boards’ decision for the Hub to go ahead. . .

NZX dairy derivatives have record month in May as uncertainty, liquidity drive demand – Tina Morrison:

(BusinessDesk) – NZX had a record trading month for dairy derivatives in May, as increased liquidity and uncertainty around dairy prices stoked demand for options.

The NZX Global Dairy Derivatives market traded 18,225 lots across futures and options in May, beating the previous record of 14,723 in August last year. Some 65 percent of the May trades were in options, compared with just 15 percent in August. . .

Briefing on the New Zealand Dryland Forests Initiative:

The committee commends the work of the New Zealand Dryland Forests Initiative. NZDFI is a research and development project working to develop ground-durable eucalypt species suited to New Zealand’s dryland regions.

On Thursday the committee heard from representatives of NZDFI including its founder Paul Millen, and Chairman, Shaf van Ballekom. The vision of NZDFI is for New Zealand to be home to a multimillion dollar sustainable hardwood industry based on 100,000 hectares of eucalypt forests, by 2050. . .

Mid-Canterbury Rural Business Network focuses on turning obstacles into opportunities:

Rural business professionals in Mid-Canterbury will have an opportunity to develop their businesses and strengthen their networks with the second Mid-Canterbury Business Network event for 2015. Mid-Canterbury will host its second event for the year on 9 June at the Hotel Ashburton, Ashburton.

The Rural Business Network provides an opportunity for rural-based business people to participate in events that will help them grow their businesses through networking and learning from others. RBN aims to connect innovative, motivated people from across the range of primary industry sectors with successful, experienced businessmen and women creating opportunities to share ideas, be inspired and learn by example. . .


Rural round-up

August 16, 2014

 Not celebrating yet – Andrea Fox:

Bay of Plenty farmer David Jensen’s commitment of nearly a third of his milk production this season to Fonterra’s June guaranteed milk price (GMP) of $7 a kilogram of milksolids (MS) looks set to boost his coffers by at least $80,000 but he’s not crowing.

He knows that would be foolhardy, given the roller-coaster ride of the milk price this year and the long stretch of the season ahead.

This is Jensen’s second round on Fonterra’s new fixed milk price programme. In last year’s pilot scheme his business posted a $45,000 opportunity cost after he committed milk at $7/kg MS in what is set to be a record $8-plus payout season. . .

Pipfruit sector’s future ‘very bright’ – Pam Jones:

Good returns are expected in the pipfruit industry this year following a record season last year, Pipfruit New Zealand chief executive officer Alan Pollard says.

Mr Pollard was one of the keynote speakers at the two-day Pipfruit New Zealand conference in Queenstown last week, and visited three Central Otago orchards and one winery with delegates during a field day after the conference.

The conference built on the Pipfruit New Zealand strategic plan, which was released at last year’s conference and outlined how to achieve a goal of developing the pipfruit industry into a $1 billion export industry by 2022, Mr Pollard said. . .

Innovative sheep farmers winners

Southland and Otago did well in the third annual Beef and Lamb New Zealand Sheep Industry Awards in Napier last week.

AbacusBio managing director Neville Jopson, of Dunedin, received the Focus Genetics sheep industry science award in recognition of his work in the industry, while Mount Linton Station, in Southland, won the Alliance Group terminal sire award for lamb growth and meat yield and the SIL-ACE award for terminal sire for lamb growth.

Andy Ramsden, of Wanaka, was awarded the Allflex sheep industry innovation award for his input to increasing the productivity of New Zealand sheep during the past 20 years, and Riverton’s Blackdale Coopworth stud won the Telford dual purpose award for reproduction, lamb growth plus adult size and wool production. . .

Agricultural drones taking off on farms:

Robots are not only taking their place in milking sheds or on vineyards and orchards – aerial drones are increasingly being used to extend the reach and view of human farmers.

Unmanned aerial vehicles or aerial robots – known in the military world as drones – are increasingly being used for a range of activities on farms, including checking fences and water systems, and monitoring and even moving stock.

Linda Bulk of the Aeronavics company, said farmers were surprised at how easy they were to use.

“It’s so practical,” she said. “There’s that eye in the sky, what you see from above is so much more informative than when you’re on eye level to start with and it gets into those hard to reach areas that are often a hazard for quad bikes. . . .

Improved Returns See Rise in Cattle Numbers:

Dry conditions in the northern North Island and continued land use change in the South Island saw New Zealand’s sheep numbers decrease 3.2 per cent over the 2013-14 season, while beef cattle numbers increased 1.6 per cent.

Beef + Lamb New Zealand’s (B+LNZ) Economic Service carries out a stock number survey annually. Its latest survey shows sheep numbers dropped to 29.8 million in the year to 30 June 2014.

B+LNZ Economic Service Chief Economist Andrew Burtt says strong mutton prices, driven by rising demand from North Asia, encouraged a high level of cull ewe processing for the second year in a row.

Breeding ewe numbers, at 19.96 million, were slightly down (-1.4%) on the previous June. The largest contributor to the overall decline was the South Island, reflecting the continued land use trend towards dairy and dairy support activities.

 

Meadow Mushrooms Opens Second Stage Of $120 Million Redevelopment:

The second stage of a $120 million redevelopment and expansion project at one of New Zealand’s largest agricultural enterprises will be opened this week.

The $12 million investment into the extension of Meadow Mushrooms’ Christchurch farm will add a further 60 jobs and increase production by 37,000 kilograms of fresh white mushrooms a week.

This project follows the $45 million expansion undertaken by the company on site in 2011 and is the second of three stages to completely reconfigure the company’s infrastructure in New Zealand. A new office administration and headquarters construction project will commence before the end of the year and will be followed by an expansion of the compost facilities and growing shed conversions.

“This development demonstrates Meadow Mushrooms’ confidence in the future market and our commitment to the industry,” said John Barnes, CEO of Meadow Mushrooms. . . .

 

 

 


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