Rural round-up

March 13, 2019

Tax recommendations threaten future prosperity:

Federated Farmers is calling on the Government to reject the majority of the raft of new taxes proposed by the Tax Working Group.

“Small business would pay the costs, large business would spend thousands avoiding the costs and tax advisors and valuers would have a field day,” Federated Farmers Vice-President Andrew Hoggard says.

“There is possibly an argument for a Capital Gains Tax aimed at rental properties if there was some sound evidence it would dampen investor speculation, and reduce price pressure and first home buyers being out-bid. But even with that, we haven’t given the tougher ‘bright line’ test rules a chance to really kick in. . .

Despite rising prices farmers are feeling oppressed from all sides and confidence is low. FIckle urban voters are driving a flood of rules and imposing costs that make little sense to the business of farming – Guy Trafford:

The results of the January Federated Farmers farmer survey have recently been published and makes fairly sober reading – especially in the context that prices for most commodities are reasonably sound.

Only 5.1% of respondents expected economic conditions to improve and but nearly 46% expect economic conditions to worsen, this is the worse result since July 2009.

Given the recent rises in milk prices and solid returns coming for sheep and beef farmers this level of pessimism is somewhat surprising and perhaps is a reflection of where farmers heads are at rather than a measure of what the ‘true’ economic conditions are. . . 

Looking to Generation Z for the future of  food – Sarah Perriam:

The rural sector is rapidly changing.

Consumer demand and global trends means New Zealand farmers need to embrace innovation to be able to compete and thrive in this new and exciting environment.

The next generation is vital for success. . . 

Greenpeace billboard ruled misleading  :

Federated Farmers is pleased the Advertising Standards Authority has ruled that a Greenpeace billboard aimed at fertilizer companies and the dairy industry is misleading and takes advocacy a step too far.

“Federated Farmers believes everyone has the right to express strong views but as the ASA Complaints Board ruling underlines, over-simplification of issues and targeting of two farmer-owned companies is misleading and overly provocative,” Feds environment spokesperson Chris Allen says. . .

Zespri. Appoints Bruce Cameron as chairman – Luke Chivers:

While the kiwifruit industry is having its day in the sun it is not short of challenges. Luke Chivers spoke to new Zespri chairman Bruce Cameron about the future.

New Zespri chairman Bruce Cameron is taking over at a time of strong continuity and volume in kiwifruit exports.

He replaces Te Puna grower Peter McBride who has stood down to pursue other primary industry interests, including a Fonterra directorship. . .

Butter prices go into meltdown :

Butter prices fell 10 percent in February 2019 to a 19-month low, Stats NZ said today.

The average price for a 500g block of butter fell to $5.20 in February 2019, down from a record high of $5.79 in January 2019.

“In January we saw milk prices fall to a 19-month low. This price fall now looks to be flowing on to other dairy products,” consumer prices manager Gael Price said. . . 


Rural round-up

February 22, 2019

Guy Trafford assesses how the Tax Working Group report would change signals to farmers, and how they are likely to respond – Guy Trafford:

Given the signals that have been coming out from the Tax Working Group over the last few months there haven’t been too many surprises as to what was revealed today. That may, probably will, come after the politicians have had their play with it.

From a farming perspective there are some pluses and minuses.

Succession planning
The roll over clause is attractive, but liable to alter land/business selling behaviour. It is only available as a succession tool in the event of the assets being passed on after the death. It is then made a liability in the event of the next generation deciding to sell at which point the value goes back to 2021 or whenever the older generation first took over the land. . . 

Grass on the A2 side of the dairy fence is looking greener – and the profits plusher – Point of Order:

The  contrasting   fortunes of  Fonterra  and  A2 Milk came into the  spotlight   this  week,  after the  latter  reported a  startling 55%  rise in  half-year net profit  to  $152m.  Fonterra  shareholders will be ruefelly recalling  their  company’s  performance last year  when  it  reported its  first-ever  net  loss  of  $196m.

A2 Milk  shareholders  are  marching to a  very  different  tune.  Despite  one market  analyst  reckoning its share price had  become over-priced, buyers  pushed  it up  by  more than  a dollar to  $13.95  as they absorbed  news  of   strong sales growth in all key product segments – infant formula, liquid milk and milk powders. . . 

Fatty milk Jersey cows in demand – Yvonne O’Hara:

”Fat is back” and no longer the ”ogre” it used to be, and that is good news for Jerseys as they have a higher fat content relative to protein than many other breeds.

DairyNZ’s New Zealand Animal Evaluation Unit (NZAEL) released its annual Economic Values (EV) index last week to reflect the increased global demand for high fat dairy products, compared to protein.

Economic Values is an estimate of a trait’s value to a dairy farmer’s production and profitability and contributes to cattle breeding worth (BW). . . 

LIC welcomes Fonterra’s a2 announcement:

The farmer-owned co-operative, which breeds up to 80% of the national dairy herd, says this increase in supply matches the demand it has experienced for its A2 genetics and testing services.

Last year, the co-operative introduced dedicated A2 bull teams and extended its test offering in anticipation of Fonterra’s next move with The a2 Milk Company.

LIC’s General Manager NZ Markets, Malcolm Ellis, who is also a Fonterra shareholder and farm owner, comments:

Fonterra scours world for $800m cash injection – Hugh Stringleman:

Where in the world will Fonterra get $800 million to reduce its debt while returning to profitability and making enough money to pay a good dividend on the $6 billion dairy farmers have invested in the co-operative? Hugh Stringleman looks for answers.

March 20 looms as the next milestone in Fonterra’s return to financial health and wellbeing when it declares first-half results for the 2019 year.

It will also say where asset sales, joint ventures and partnerships will be made or amended to improve the balance sheet. . .

Kiwifruit sector front-foots campaign to find pickers:

The kiwifruit industry is pulling out all the stops to make sure the 2019 harvest, which starts mid-March, isn’t short of workers – ensuring that quality Zespri kiwifruit is sent to overseas customers in premium condition.

New Zealand Kiwifruit Growers Incorporated (NZKGI) Chief Executive Officer Nikki Johnson says the amount of green and gold kiwifruit on the vines is forecast to be even higher than last year’s harvest, meaning around 18,000 workers will be needed. “Last year, the harvest was at least 1,200 workers short at the peak – we don’t want a repeat of that.” . . 

Central Districts Field Days has something for everyone:

More than 26,000 people are expected to flock to Manfeild in Feilding this month for New Zealand’s largest regional agricultural event, Central Districts Field Days.

Now in its 26th year, the 2019 event has plenty to offer all – from farmers and foodies to tech heads and townies.

“We’re really excited about this year’s event,” says Stuff Events & Sponsorship Director David Blackwell. “There are a record number of exhibitors and we have some great new areas and activities that are sure to make this year’s Central Districts Field Days a community event to remember.” . . 

Give it a go” – Bay or Plenty Young Grower of the Year  :

Alex Ashe, a technical advisor at Farmlands Te Puna, was named Bay of Plenty’s Young Fruit Grower for 2019 at an awards dinner in Tauranga last night.

The practical competition took place last Saturday, 9 February, at Te Puke Showgrounds, where the eight competitors tested their skills and ability to run a successful orchard in a series of challenges. These were followed by a speech competition discussing future disruptors to horticulture at the gala dinner last night. . .

Wine survey reveals profit, innovation and price on the up :

For only the third time in the history of the annual survey, all five winery tiers featured profitable results in 2018

Survey results indicate a positive correlation between innovation and financial performance.

2018 saw a 1.8 percent lift in average prices received by Kiwi wineries. . .

Veganism is on the rise, but experts say the cons of the diet outweigh the pros – Martin Cohen and Frederic Leroy:

After decades in which the number of people choosing to cut out meat from their diet has steadily increased, 2019 is set to be the year the world changes the way that it eats. Or at least, that’s the ambitious aim of a major campaign under the umbrella of an organisation simply called EAT. The core message is to discourage meat and dairy, seen as part of an “over-consumption of protein” – and specifically to target consumption of beef.

The push comes at a time when consumer behaviour already seems to be shifting. In the three years following 2014, according to research firm GlobalData, there was a six-fold increase in people identifying as vegans in the US, a huge rise – albeit from a very low base. It’s a similar story in the UK, where the number of vegans has increased by 350 per cent, compared to a decade ago, at least according to research commissioned by the Vegan Society. . . 

 


Rural round-up

February 10, 2019

Collars corral cattle

Farm fences could be history as an Otago farm tests some cattle collars with a difference.

State-owned enterprise Landcorp owns two farms in the Waipori area, both of which have land bordering Lake Mahinerangi.

However, it faces the problem of fencing hundreds of kilometres to stop stock entering waterways.

As a potential solution, this week it started a two-month trial, run by AgResearch, to test virtual fencing technology. . . 

Dairy debt an outcome of wayward policy and land-banking – Keith Woodford:

In a recent article, I wrote that high debt levels within the dairy industry will constrain the industry transformation that needs to occur.  Subsequently, I have been exploring how the industry got itself such a debt-laden pickle. Here is what I found.

Despite the industry now being well into the third season of good milk prices, dairy-farm debt with banks has been showing no sign of decreasing. The latest figures for December 2018 show total dairy-farm bank debt of $41.6 billion (RBNZ S34 series). This compares to $41.0 billion a year earlier and $40.9 billion two years earlier.  This equates to around $22.00 per kg milksolids (fat plus protein). . . 

Farmer urges young people to take up career in fencing :

Isaac Johnston wants more young people to consider fencing as a career option.

Johnston, a member of the West Otago Young Farmers took out a national fencing competition in Christchurch, along with Luke Kane.

Kane, 30 (also a West Otago YF member), and Johnston, 25, won the PGG Wrightson Fencing Competition, which was held as part of the AGMARDT NZ Young Farmers Conference. . . 

The British obsession with food production vs obesity and climate may hurt their local producers and help NZ farmers. Saputo shakes things up. China infant formula market changes – Guy Traffod:

The Lancet continues to challenge the status quo around food production. This time in its recent report it says “unhealthy subsidies” in agriculture are costly and do enormous harm to developing country farmers and agriculture-based development policies.

Most New Zealand farmers would be happy to support this attitude. However the Irish have taken exception to the report particularly when it compares “big farming” to the tobacco industry and not only should it not receive subsidies, but it should be banned from being able to lobby and engaging with governments.

“Governments need to regain the power to act in the interests of people and the planet and global treaties help to achieve this. Vested commercial interests need to be excluded from the policy table, and civil society needs to have a stronger voice in policy-making,” it said. . . 

Kea and 1080 – nesting success demonstrated  – Kate Guthrie:

Not only do kea nest on the ground, but it takes about 4 months from egg-laying until kea chicks fledge. Four months is a long time to be sitting on the ground facing off the local stoats. Kea eggs, chicks and even adult incubating females are very vulnerable to predation.

Aerial application of 1080 can knock back the predators, but the timing needs to be right and the benefits to nesting kea must outweigh the known risks that some kea will eat the bait themselves.

So do more chicks survive to fledge? Department of Conservation Biodiversity Group researchers Joshua Kemp, Corey Mosen, Graeme Elliott and Christine Hunter investigate, in a paper recently published in the New Zealand Journal of Ecology. . . 

LIC Half-Year Profit Rises On Improved Performance And New Product Innovations

www.halfyearinreview.lic.co.nz

Performance Highlights H1 FY18-19:

• $161 million total revenue, 5% up from $153 million in the same period last year.

• $409 million total assets, up from $371 million on the same period as last year.

• $59.3 million earnings before interest, tax, depreciation and amortisation (EBITDA)[1], up 3% on the same period last year. . . 


Rural round-up

January 31, 2019

Brain tumour felled Fonterra’s last hands on chairman – Fran O’Sullivan:

John Wilson who died on Monday at just 54 years of age was possibly the last Fonterra chairman to take a hands on approach to governing New Zealand’s largest company.

It was inevitable that Wilson would play a strong and sometimes quite political role in public life in New Zealand – the upshot of Fonterra’s dominance of the dairy industry – at times locked into confrontational situations with equally strong-minded politicians on both sides of the House.

Wilson was passionately devoted to Fonterra; strong-willed, direct, not afraid of anyone – yet also imbued with sufficient charm, persuasiveness and an ability to ride through the hard-knuckled politics of the NZ dairy industry to survive many a battle until his last year as chair. . . 

‘Outrageous’: EU votes to reduce NZ export rights – Pattrick Smellie:

The European Union’s parliament has taken a decisive step towards unilaterally reducing New Zealand’s rights to export specified quantities of tariff-free sheepmeat, beef and dairy products to the trading bloc if and when Brexit occurs.

The move has been slammed as “outrageous” by former trade negotiator Charles Finny in a Tweet and “disappointing” by the Dairy Companies Association of New Zealand.

The Ministry of Foreign Affairs and Trade said the proposed moves risk compounding “growing international economic uncertainty and rising trade tensions”. . . 

Expert evidence rejects water conservation order bid :

Evidence from nine experts supports Horticulture New Zealand’s evidence that a water conservation order (WCO) is not the way to ensure healthy Hawke’s Bay rivers, Horticulture New Zealand chief executive Mike Chapman says.

Horticulture New Zealand opposes the application for the WCO in the Lower Ngaruroro River and the Clive River.

“This impacts our economy and our food supply and a WCO is a blunt instrument that has been surpassed with better national and regional planning tools,” Mr Chapman says. . . 

Guy Trafford analyses the sheep meat market showing the changes to where our product goes, and where our rivals are focusing – Guy Trafford:

With the uncertainty around Brexit and what the balance of future access to both the EU and the UK for sheep meat maybe it could be timely to have a look at the drivers of international sheep meat trade.

Australia and New Zealand account for approximately 90% of international trade and both have declining flock numbers. Since 1990 Australia have dropped from 180 mln down to 65 mln and New Zealand from 58 mln to around 28 mln today. It has only been the increased productivity of both flocks, in regard to meat production, that has kept the industry viable with the critical mass required to remain competitive. . . 

Synlait follows Fonterra with lower forecast farmgate payout – Paul McBeth:

 (BusinessDesk) – Synlait Milk has cut its forecast payout to farmers for the current season, following Fonterra’s lead, as weaker global demand and strong domestic production weighs on international prices.

The Rakaia-based milk producer expects to pay $6.25 per kilogram of milk solids for the 2019 season, down from its previous forecast of $6.75/kgMS. That projection will depend on commodity prices recovering for the rest of the season, something Synlait said it considers realistic. . . 

Scott Tech, Mt Cook Alpine Salmon in automated pin boning project – Jenny Ruth:

(BusinessDesk) – Scott Technology and Mt Cook Alpine Salmon have teamed up to automate the removal of pin bones from King salmon with backing of more than $500,000 from Seafood Innovations.

Brent Keelty, Mt Cook’s processing operations manager, says the only way currently of de-boning King salmon is by hand. . . 

World first IoT farming tech trial  NZ

A pioneering arable farming tech trial is expected to make a quantum leap to help boost New Zealand’s primary export revenue.

New Zealand has a low understanding of how the internet of things (IoT) can assist with farm management and sustainability and adoption of precision agriculture techniques also remains low.

New Zealand’s primary industry export revenue is forecast to reach $43.8 billion for the year to June 2019, an increase of 2.5 percent from 2018. . .

TracMap Data Now Available in FarmIQ:

Integrating two of the country’s leading farm software systems means farmers can now have TracMap Proof of Application data seamlessly passed to their FarmIQ account, ensuring records are updated quickly and accurately for compliance and management needs.

“This is an important development for FarmIQ’s customers. Many farmers have been asking us for Tracmap’s Proof of Application and Proof of Placement data for some time,” said FarmIQ chief executive Darryn Pegram. . . 

Should primary producers do more to protect their data?:

While farmers and horticulturalists continue to integrate new digital technologies into their businesses, this data reliance does bring with it new vulnerabilities and risks. The next generation of producers are doing away with basic spreadsheets and building their businesses using a real-time data streams and cloud-based platforms for analysis and storage.

In the past, a simple computer backup was, in many cases, all that was needed. It has now been replaced by a complex web of data-points, data validation, storage, security access and data control. . . 

New funding for 31 community-led projects:

The Ministry for Primary Industries (MPI) has today announced funding of $9.8 million for 31 new Sustainable Farming Fund (SFF) projects.

The SFF provides funding for projects led by farmers, growers, and foresters aimed at building economic, environmental and social sustainability in the primary sector. It has recently been replaced by MPI’s new Sustainable Food and Fibre Futures (SFF Futures) programme. The 31 projects were in the pipeline prior to its launch in October 2018.

“SFF has been instrumental in kicking off both small and large innovative, community-led projects, and laying the groundwork for SFF Futures,” says Steve Penno, Director of Investment Programmes.

“The new 31 projects cover areas from apiculture and dairy to soil management and horticulture, and are great examples of innovative thinking. . . 

Farmers furious at inclusion on Aussie Farms’ map – Alastair Dowie:

‘Ill-informed’ and ‘disgraceful’ are just some of the words Victorian farmers have used upon finding their details on the controversial Aussie Farms map.

Made public last week, the map identifies a large number of rural and farming enterprises, as well as some saleyards, abattoirs and intensive production operations, across Australia.

Many farmers are furious that their personal information has been displayed on the map without their permission. . . .

 


Rural round-up

January 27, 2019

Temporary work visas need over-haul – farmers  – Gill Bonnet:

Farmers say they face having to send skilled workers home in 18 months time because of how their jobs are measured by immigration officials.

Immigrants classed as low-skilled since 2017 have been allowed maximum visas of three years and not been able to sponsor spouses and children.

The changes to temporary work visas were introduced weeks before the last election. . .

Guy Trafford takes another look at a growing problem that never seems to get resolved, notes a full effort to protect ‘old world’ markets and assesses changes to farm gate prices  – Guy Traffod:

New Zealand horticulture has made the news recently with the demand for fruit harvesters that is not being meet. With the unemployment rate hovering around 4% (3.9% is latest data) the likelihood of finding enough staff from that sector is reasonably remote.

The same issue has been an ongoing one for agriculture. Dairying has had an ongoing issue with finding and maintaining staff and while sheep and beef and cropping have lower rates of turn over, finding new staff has still been a problem and getting more difficult by the year.

When the age profile of those working in agriculture is examined then more concern should be raised. . . 

Sheep farming, it’s in our nature – Luke Chivers:

Northwest Waikato sheep and beef  farmers Tom and Nicole Whitford never planned on working in the primary sector but today the couple are dedicated to the intergenerational transfer of a farming business.Luke Chivers explains.

It was Gypsy Day 2016. Waikaretu Valley farmers Tom and Nicole Whitford’s succession agreement with Tom’s parents for a well-nurtured and developed, panoramic coastal slice of rural New Zealand kicked in – coincidentally the same day their son Mac was born.

But that wasn’t their initial plan. . .

Small environmental footprint takes district mayor’s Eketahuna farm to finals – Christine McKay:

Mike and Tracey Collis may run a dairy farm with big ambitions, but they have managed to achieve a small environmental footprint.

To boot, they farm in Eketahuna – a renowned challenging farming area. Their tenacity and their talents caught the eyes of this year’s Horizons Ballance Farm Environment award judges who credited the couple’s willingness to adapt their farming system to outside influences.

“We are really pleased about being a finalist,” the Collis’ say of their achievement. . .

Beekeepers urged to vote for a commodity levy

Apiculture New Zealand (ApiNZ) is calling on commercial beekeepers to vote for a commodity levy with voting papers going out this month.

“We are at a crucial juncture in the history of this industry,” says Bruce Wills, chair of Apiculture New Zealand, the body leading the vote. “We need beekeepers to vote and we need a clear statement from the beekeepers through this vote. . . 

Poposed honey levy divides beekeeprers –  Maja Burry:

A vote by beekeepers on a proposed honey levy next month has seen one industry group rallying its members to reject the proposal.

Apiculture New Zealand, a voluntary body of about 900 members, wants to introduce a commodity levy on honey to help manage industry growth.

The proposed levy would see all 1800 beekeepers in New Zealand with 26 hives or more to pay a levy of 10 cents on each kilogram of honey – collecting about two million dollars a year.

But New Zealand Beekeeping president Jane Lorimer said the the levy was unreasonably high.


Rural round-up

December 21, 2018

Taratahi agri training operator in interim liquidation – Paul McBeth:

(BusinessDesk) – The Taratahi Agricultural Training Centre has been placed into interim liquidation at the request of its board of trustees as declining student numbers saw its funding drop faster than it could cut costs.

The High Court yesterday appointed David Ruscoe and Russell Moore of Grant Thornton as interim liquidators after the board sought to protect the position of its staff, students, creditors and other stakeholders, the accounting firm said.

Taratahi is a private training establishment, employing 250 staff, and educating 2,850 students this year. It owns and manages eight farms across the country. . . 

IrrigationNZ welcomes new chief executive:

IrrigationNZ has appointed Elizabeth Soal as its new Chief Executive.

“IrrigationNZ has recently adopted a new strategy which focuses on creating an environment for the responsible use of water for food production. As part of the strategy we will be focusing on advocacy, encouraging innovation through sharing ideas and adopting new technology, developing a robust information base, bringing the irrigation sector, researchers and decision makers together to make better decisions for our future and creating world‑leading irrigation standards,” says Nicky Hyslop, IrrigationNZ Board Chair.

“Elizabeth has a strong background in water management, law and policy and she will help contribute to all of these goals but she is particularly well qualified to contribute to national discussions as we seek to achieve solutions to complex issues around water allocation which result in good outcomes for both communities and the environment.” . . 

Feds welcome new IrrigationNZ chief executive:

Federated Farmers welcomes Elizabeth Soal as the new chief executive of Irrigation New Zealand.

Federated Farmers maintains an excellent working relationship with Irrigation New Zealand,” Feds water and environment spokesperson Chris Allen says.

Elizabeth has the credentials and background, including her strategy and policy work for the Waitaki Irrigators Collective, to help ensure INZ continues its excellent work.” . .

Federated Farmers disputes E Coli claims – Eric Frykberg:

There is no proof that E. Coli found in three Canterbury rivers came from cows, according to Federated Farmers.

Research commissioned by Fish and Game found dangerous pathogens in three Canterbury rivers – the Ashley, Selwyn and Rangitata.

Fish and Game insisted the cause was leaching from dairy farms.

But Federated Farmers water spokesperson Chris Allen said the problem could be caused by wildlife, or human activity, as well as from animals. . . 

Research suggests we should take a harder look at the benefits of organic foods – Point of Order:

The Green Party’s food policy may need revisiting, in the light of research published in the past week.

The policy was introduced in May 2017 by Green Party MP Mojo Mathers, who lost her list place in Parliament at the general election.

How we produce, distribute and consume food is of critical importance to growing resilient healthy communities, minimising our ecological footprint and maintaining a
stable economy, she said.  That’s why food policy lies at the heart of Green policy. . . 

Reflections on the year that was – Allan Barber:

From a New Zealand domestic perspective the attempt to eradicate Mycoplasma Bovis has had the biggest impact on farming, most of it focused on the relatively small number of properties forced to cull their entire herd, some of it directed at those properties under surveillance or Notice of Direction, and some of it on the agricultural service industry, including meat processors, cartage contractors, stock agents and saleyards, as well as calf clubs and A&P shows.

MPI is cautiously optimistic the disease can be eradicated which would be the first time any country has achieved such an outcome. However there is still plenty of water to flow under the bridge before anyone can say with confidence that the hitherto impossible has been achieved. 2019 will almost certainly be the year we know for certain, one way or the other. . . 

Guy Trafford finishes 2018 with a GDT review, news of a new Fish & Game river survey, calling out plant-based-milk, and an update on the MPB eradication – Guy Trafford:

An ever so slight increase in the Global Dairy Trade price for whole milk powder with a +0.3% lift. It may not put much of a smile on farmers faces but at least it is a not a drop.

Overall the GDT went up by +1.7% with both butter and cheddar making gains with lifts of +4.9% and +2.2% respectively so not such a poor result. With this now being the second – be they small – lift in a row and we have to go back almost 12 months before we had a repeat of two consecutive sales lifting. Dairy Futures had predicted a higher 3% lift in WMP for this period and with volumes sold down 0.7% on the previous sale, which was also down, the remainder of the season still looks precarious. The next sale is on the 2nd of January 2019. . . 

New captain for 2019 Meat Blacks:

One of the final jobs of 2018 is to take a look at the 2019 Meat Blacks team that will lead the sector next year.

There haven’t been too many adjustments to make, though the sector has had a couple of big retirements from the leadership, lock Sir Graeme Harrison (ANZCO) and number eight James Parsons (B+LNZ Ltd) have departed this year. Linesman Martyn Dunne also retired from MPI and has been replaced by Ray Smith, fresh from Corrections (Ed: appropriately!).

As a result, we have a new captain Murray Taggart (Alliance), promoted from vice-captain, and new vice-captain Tony Egan (Greenlea Premier Meats) to lead the team. . . 

T&G Global profit dented by cheaper tomatoes, small grape harvest  – Paul McBeth:

(BusinessDesk) – T&G Global says its annual profit will more than halve this year after cheaper tomatoes and a weather-affected grape harvest in Peru dented earnings.

Net profit will be $8-10 million this calendar year, down from $22.6 million in 2017, it said in a statement.

Lower tomato prices affected T&G’s covered crops unit while its Peru grapes division dealt with a smaller harvest, it said. . .


Rural round-up

November 1, 2018

The sun must never set on New Zealand’s agriculture – Keith Woodford:

 These are increasingly troubled times for New Zealand agriculture. A significant proportion of the population has turned against farmers for environmental reasons relating to nutrient leaching and water quality. There is also a loud political narrative about methane from ruminant animals and the need to reduce livestock numbers.

There is also a group of agricultural doomsayers who state that new plant-based foods and even totally artificial foods can mimic meat, and that they will do so at much cheaper cost than the real thing. And finally, there is an increasing group of consumers who are committed to vegan diets for perceived health reasons or relating to personal ethical perspectives. . . 

On the home straight to CPTPPP benefits:

It’s been a long and sometimes bumpy road to achieving a Pacific Rim trade deal but New Zealand producers and our economy will soon reap the benefits, Federated Farmers President Katie Milne says.

“We’re on the home straight. The required six nations have now ratified the 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the countdown has started towards the first round of tariff cuts early next year. . . 

CPTPP move momentous for NZ:

ExportNZ says today’s CPTPP ratification by Australia is a momentous day for New Zealand.

Australia’s ratification today of the Comprehensive and Progressive Trans-Pacific Partnership has now delivered the quorum required to start the process leading to the CPTPP taking force.

ExportNZ Executive Director Catherine Beard says the CPTPP deal, a tantalising prospect for years, will now become a reality by the end of this year. . .

Bee Keepers Can Now Check Seasonal Weather Outlooks Against High Resolution Land Cover:

Summer likely to lack widespread monthly extremes in temperature and precipitation

The rapidly growing honey industry in New Zealand has had some weather challenges over the last few years. As Karin Kos noted regarding the 2017 season ‘very dry and windy weather was not conducive to honey and due to the nature of the industry unfortunately it is weather dependent’. Bees also find different land covers to exploit depending on the weather with pastures, indigenous forest and manuka/kanuka forests if made available being just a few examples of how bees can change their diet when weather vagaries occur
. . .

Guy Trafford summarises the debate around how we should deal with methane emissions, and introduces you to the global regulation of SLCPs:

The issue around methane is not going to go away. In the last couple of days two respectable and well known identities have commented.

Phil Journeax, currently with AgFirst and previously with MPI as an economist, and Rod Oram a well-known commentator particularly on things rural. They have both tackled the issue around methane, and climate change from different angles.

Largely both correct but could be talking about two totally different things. Confused? It’s likely to get a lot worse before it gets better.

Cars or lisevstock which contribute more to climate change? – Anne Mottet and Henning Steinfeld:

The pitfalls of simplification when looking at greenhouse gas emissions from livestock What we choose to eat, how we move around and how these activities contribute to climate change is receiving a lot of media attention. In this context, greenhouse gas emissions from livestock and transport are often compared, but in a flawed way. The comparison measures direct emissions from transport against both direct and indirect emissions from livestock. The Intergovernmental Panel on Climate Change (IPCC) identifies and monitors human activities responsible for climate change and reports direct emissions by sectors. The IPCC estimates that direct emissions from transport (road, air, rail and maritime) account for 6.9 gigatons per year, about 14% of all emissions from human activities. These emissions mainly consist of carbon dioxide and nitrous oxide from fuel combustion. By comparison, direct emissions from livestock account for 2.3 gigatons of CO2 equivalent, or 5% of the total. They consist of methane and nitrous oxide from rumen digestion and manure management. Contrary to transport, agriculture is based on a large variety of natural processes that emit (or leak) methane, nitrous oxide and carbon dioxide from multiple sources. While it is possible to “de-carbonize” transport, emissions from land use and agriculture are much more difficult to measure and control. . . 


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