Rural round-up

July 12, 2018

Dairy industry’s big challenge strategic reset – Keith Woodford:

There is great unease within the New Zealand dairy industry. Many farmers feel that the urban community plus a range of events have turned against them. Most are still proud to be dairy farmers but there is lots of stress and anxiety.  

This stress and anxiety is despite farmers receiving good prices for their milk in the last two years. This has followed two preceding years when most farmers made losses and some sharemilkers were wiped out.

Right now, there are some short-term worries with product prices dropping at the last dairy auction. This is creating uncertainty for the year ahead. But in the longer term, the outlook for dairy is actually very strong. . . 

Jayne Hrdlicka to take over as A2 managing director from July 16 –  Sophie Boot:

(BusinessDesk) – A2 Milk Co’s new managing director and chief executive Jayne Hrdlicka will start on July 16, replacing Geoff Babidge who had been in the role since 2010.

Babidge announced his plans to retire last year, having overseen the company while its shares jumped from around $1 at the end of 2015 to a then-record of $8.75 on the back of successive strong sales as the company’s infant formula attracted strong demand in China. The shares last closed at $11.40, and have gained 41 percent this year. . . 

Polarised views flowing from what some urban consumers say (loudly), and how they live their lives with the market signals they send to producers – Guy Trafford:

An interesting comparison can be drawn between the dairy industry in New Zealand and the coal industry in Australia. Both seem to have the ability to polarise groups and yet both countries economies are heavily reliant on them.

Coal prices have had a resurgence to over US$100 per tonne which is resulting in calls for increasing the amount exported from Australia. Currently, coal brings in about AU$58 bln, one of the major Australian exports.

Dairying in New Zealand holds a similar place and both hold about 30% of world trade. An observation noted while I am here in Australia is the diversity of commentary in the ‘mainstream media’. In Northern Queensland where coal mining appears to be held in very high regard, the major Cairns newspaper editorial seemed to typify the attitude of many. One piece leapt out which showed the gulf I believe exists between most Kiwis and certainly a section of Australians, “Environmental radicals sit in their West End homes with heating and air-conditioning, driving petrol-guzzling cars and generally in a way that generally consumes plenty of energy, most of it coming from fossil fuel sources”. . . 

Fonterra grants 86-year-old dairy industry pioneer’s sick-bed wish – Paul Mitchell:

A Kiwi dairy pioneer has been granted his one wish for his twilight years – the chance to see what his life’s work has led to in a modern processing plant. 

Palmerston North 86-year-old Don King’s work at the Diary Research Institute, now the Fonterra Research and Development Centre, in the decades after the 1950s helped lay the foundations and processes for modern dairy processing plants.

King, extremely ill and rest-home bound after a massive stroke, had one request – to see where it has all ended up.

And thanks to an old colleague, and the efforts of Fonterra staff, his wish has been granted.  . . 

Safety conference showcased forest floor successes:

A national forest safety conference in August will bring the latest practical solutions to the table for all contractors and forest managers to hear about and learn from. Following the challenges that this industry faced in 2013, it has responded with passion and commitment to new ways to embed safety culture into everyone’s mindset on the job. Also, over the past 5 years mechanical harvesting technologies have come a long way for keeping workers safe in logging, especially on steep slopes.

“Some of our most inspiring forestry safety specialists are those with hands-on experience in both crew culture and harvesting technologies. They have been out there doing it, earning the respect of their peers,” says Forest Industry Engineering Association spokesman, Gordon Thomson. . . 

Protecting people and animals from sharing disease – Agcarm:

On World Zoonoses Day, Agcarm reminds pet and livestock owners that good hygiene and vaccination is vital for protecting the health of people and animals.

Diseases such as Campylobacter, Leptospirosis and rabies are ’zoonotic’ and are transmissible between animals and humans. Research shows that 75 percent of all new human pathogens originate from animal sources.

Campylobacter, which is normally associated with eating undercooked chicken, can be associated with pets, especially dogs. Recent research shows that many dogs carry these bacteria without showing any signs of disease. Poor hygiene, such as not hand-washing before eating can spread the disease from dogs to people. . .

 


Rural-round-up

June 26, 2018

New Zealand primary sector nervous over prospect of trade wars – Jamie Gray:

New Zealand’s primary sector is viewing the rising tide of global trade protectionism with trepidation, but escalating trade tensions between the United States and China have yet to spill over into this country’s main exports.

Primary sector and trade representatives welcomed last week’s launch of trade talks with the EU as positive step.

At the time, European Union trade commissioner Cecilia Malmström voiced concerns about trade issues that have plagued markets in recent weeks after the US Donald Trump administration imposed steel and aluminium tariffs and the US and China stepped up their war of words. . . 

Guy Trafford traces the implications for agricultural trade flows from the game of poker the US is playing with China. All sides are vulnerable, even those not directly involved – Guy Trafford:

President Trump and China’s President Xi Jinping are involved in a high stakes game of poker. Trump played the first hand with a $5 0billion tariff card. Xi Jinping immediately matched it with a similar call and put tariffs on US products, namely sorghum and soya beans.

Trump then matched and raised the stakes by increasing the tariffs to another $200 billion with the threat that if China matched this then another raise to $450 billion would be played.

This threat would put tariffs on over 90% of China’s exports to the US. . . 

Clampdown on foreign farm buyers scares off investors with ‘tens of millions’ in funds, agents say – Jonathan Underhill:

(BusinessDesk) – The government’s directive to the Overseas Investment Office to raise the bar in overseas applications to buy sensitive New Zealand land has scared away tens of millions of dollars in investments in rural property and will hurt farm values, real estate firms say.

The ministerial directive in a letter from Finance Minister Grant Robertson last November to Land Information NZ chief Andrew Crisp said the government is concerned to ensure any benefits from overseas investment in rural land “are genuinely substantial and identifiable” and economic benefits must be considered alongside environmental, social and cultural goals. Owning sensitive New Zealand assets was “a privilege, not a right.” The directive came into effect on Dec. 15 last year. . . 

Foreign farm buyer applications withdrawn in the past 12 months have tripled, OIO figures show – Jonathan Underhill:

(BusinessDesk) – The rate at which potential foreign buyers of New Zealand farms subsequently withdrew their applications to the Overseas Investment Office tripled in the past 12 months, OIO figures show.

The data captures the period since the government’s directive to the OIO to tighten rules for overseas applications to buy sensitive New Zealand land (which means any farmland over 5 hectares). The ministerial directive in a letter from Finance Minister Grant Robertson last November to Land Information NZ chief Andrew Crisp said the government aims to ensure any benefits from overseas investment in rural land “are genuinely substantial and identifiable” and economic benefits must be considered alongside environmental, social and cultural goals. Owning sensitive New Zealand assets was “a privilege, not a right.” The directive came into effect on Dec. 15 last year. . . 

Bayer Hawke’s Bay Young Viticulturist of the Year 2018 announced:

Congratulations to Jonathan Hunt from Delegats, Crownthorpe Vineyard, who became the Bayer Hawke’s Bay Young Viticulturist of the Year 2018 on Thursday 21st June.

This is the third year Hunt has competed and he is thrilled to have won the title and to be going on to represent Hawke’s Bay in the National Final.

Congratulations also goes to Nick Putt from Villa Maria who came second and Grace Petrie from Trinity Hill who came third. . . 

Creative tea and coffee trends good news for NZ dairy:

It’s tea, but not as you know it. Right now people are adding more than just milk and sugar to their cuppa’s and Fonterra is set to meet the demand for adventurous tea and coffee drinks around the world.

Beverages made with yoghurt, topped with cream cheese and mixed with cream are growing in popularity, leading Fonterra to establish a new channel within its Global Foodservice business, Beverage House.

Almost 600 million cups of tea and coffee are consumed out-of-home daily in the Asia Pacific region, a 22% increase on five years ago. . . 

Report Provides Zero Carbon Solution:

Smoke free, plastic free but, more significantly, tillage free.

A report to the Productivity Commission is recommending “bold action” to eliminate tillage or ploughing within the next five to 10 years and replace it with low disturbance no-tillage.

Every time soil is tilled through conventional methods, it releases huge quantities of CO2 into the atmosphere which contribute to global warming.

While the government has introduced a Zero Carbon Bill, it has overlooked the impact of cultivation which causes up to 20 percent of global greenhouse gas emissions and the report challenges the Minister, James Shaw, through the Productivity Commission, to do something about it. . . 

In dairy, a cutthroat U.S. business versus a Canadian cartel – Jerry Zremski:

A little comparison shopping goes a long way toward explaining why President Trump decided to wage a trade war with Canada.

A gallon of milk cost $2.89 at the Tops Friendly Supermarket on Niagara Street last week, while the same product at the Avonmart on Garrison Road in Fort Erie cost $3.35 in American dollars. And Fort Erie shoppers are getting a bargain: According to Numbeo, a crowd-sourced comparison price guide, the average cost for a gallon of milk throughout Canada is $6.32 in American dollars, nearly twice the U.S. price.

And it’s all because the United States and Canada operate their dairy industries in ways that are as different as a bald eagle and a maple leaf. . . 

World Desertification Day: Stories of Resilience from Somalia :

In observation of World Day to Combat Desertification and Drought, delve into four stories of resilience from desert lands in Somalia. Meet two farmers and two female entrepreneurs, who—supported by the Somalia Emergency Drought Response and Recovery Project (SEDRP)—share their experiences of grit, hope, and resilience despite years of drought and famine risks.  Together with partners, particularly the UN’s Food and Agriculture Organization (FAO) and the International Committee of the Red Cross (ICRC), the project aimed to scale-up drought response and recovery in Somalia.

1. An impressive harvest, a happy farmer

The story of Saed Mohamud may not typically be expected from Somalia in 2017, two years into a severe drought that put the country in a nationwide state of natural disaster and famine—yet Mohamud is not alone. In 2017, thousands of families beat the odds and produced good yields, thanks to concerted efforts from government and partners, and solid donor investment in building farmers’ resilience against drought. . .


Rural round-up

May 16, 2018

Outbreak response criticised – Sally Rae:

The Ministry for Primary Industries has not been ”up to the job” when it comes to dealing with the Mycoplasma bovis outbreak, Federated Farmers national board member Miles Anderson believes.

Speaking at Otago Federated Farmers’ annual meeting in Balclutha yesterday, Mr Anderson said he was a ”bit disappointed” in MPI’s response.

Once the outbreak was dealt with, industry needed to have a debriefing with MPI and work out how improvements could be made. ”It’s currently not acceptable the way it’s going,” he said.

There were people with neighbouring properties that were infected who had not been informed, while there were other farmers who had cattle of interest to MPI who were unaware of that.

Communication needed to be worked on initially, Mr Anderson said. . .

Mycoplasma bovis: the ground has shifted with a megathrust – Keith Woodford:

Events of recent days demonstrate that eradication of Mycoplasma bovis from New Zealand is no longer a realistic option. The Ministry of Primary Industries (MPI) is scrambling to get its messaging together. New strategies are now needed.

As I write this on 13 May, the MPI website still refers in its text material to 38 infected properties. But the latest version of the infection map from MPI tells a very different story (see below).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

It is apparent from comments by BioSecurity NZ Chief Roger Smith to a Parliamentary Committee on 10 May, that the sudden growth in infected and suspected infected properties has come as a big surprise. That may well be so to the Wellington officials, but it will be much less of a surprise to those who have been working closer to the cows. . .

Guy Trafford says although MPI are slow to accept it, containment of MPB is the future with a long-term eradication plan as was used with TB. That will change dairying:

There is consensus from every-one, except perhaps MPI, is that the mycoplasma bovis has bolted and probably had some time ago.

This whole episode has been hampered by things not working as well as they should have. Somehow the disease got in when it shouldn’t have been able.

NAIT was shown to be very deficient from farmers using it through to MPI administrating it.

The testing processes despite earlier assurances still appears not to be able to provide the accuracy required to be able to make decision that affect whole families lives and livelihoods. . . 

Hunt on for rogue Northland wallaby – Andrew McRae:

High-tech surveillance equipment and two tracking dogs have been called in after a wallaby was spotted in South Hokianga.

Staff from Northland Regional Council and the Department of Conservation (DOC) and Te Roroa iwi members are scouring about 500 hectares of farmland and native bush.

Council biosecurity manager Kane McElrea said a person had seen a wallaby on at least two separate occasions at their Waimamaku property in recent months, but did not initially appreciate the potential significance of the sightings. . .

Browns win gold for sustainability:

Matamata farmers Edward (Wynn) and Tracy Brown are the inaugural winners of the Fonterra Farm Source Responsible Dairying Award.

The award was presented at the NZ Dairy Industry Awards (NZDIA) in Invercargill last Saturday.

The Browns are considered leaders within the dairy industry, in all areas of sustainability, business and farm management, as well as in the way they give back to the industry and community. . . 

Duncans scoop Share Farmer of the Year title –  Sudesh Kissun:

Northland farmers Daniel and Gina Duncan are the 2018 Share Farmers of the Year. 

The former registered land valuers are 50:50 sharemilkers for the Pouto Topu A Trust. The 460ha property on the Pouto Peninsula,at the northern head of Kaipara Harbour, milks 1020 cows.

The Duncans finished top in three of the nine judging categories, winning the PrimaryITO Interview Award, Ravensdown Pasture Performance Award and Westpac Business Performance Award at the awards night in Invercargill. . .

Call for extra focus on tax treatments – Yvonne O’Hara:

Farming employers and employees are being urged to talk more about tax and benefit allowances, Federated Farmers manager general policy Nick Clark says.

Inland Revenue is consulting on the question of what the tax treatments should be for allowances paid and benefits provided to farm workers, and people have until Friday to make a submission.

Mr Clark said benefits allowances covered things such as boarding school fees, while reimbursement allowances were given for things such as wet weather gear and dogs. . . 


Rural round-up

April 5, 2018

Feds welcomes NAIT recommendations:

Federated Farmers says its members will jump at the chance to contribute to the drive for improvements to the National Animal Identification and Tracing (NAIT) scheme.

A report detailing a major review of NAIT, with 38 recommendations aimed at streamlining processes and boosting access and compliance, was released today after a long process involving OSPRI, MPI and a host of industry groups including Federated Farmers. . . 

Organic produce sitting pretty in a tasty $90 billion global market – Neil Hodgson:

The perception of organic fruit and vegetables is often of misshapen produce that doesn’t look very appetising, and it is fair comment.

However, the reality is many of those perfect looking fruits and vegetables have a beautiful appearance because producers use synthetic products to treat various bugs and diseases.

If you grow your own produce at home, then chances are they won’t look as perfect as the goods piled high on the supermarket or general food store shelves because chances are you don’t use too many synthetics in your garden at home.

You might use a bug spray and you probably add fertilisers and that is about it. . . 

Unusually, farmers and meat processors doing well at the same time. Beef prices slip. Deer prices get boost from pet food market – Guy Trafford:

SHEEP
Since allowing Shanghai Maling to purchase 50% of Silver Fern Farms (SFF) the meat company has had a significant turn around of fortune. For the twelve months from the $261 mln injection from Shanghai Maling, SFF has paid of $203 mln worth of debt and has managed to achieve a $15.4 mln after tax profit.

In the past it has often been a toss up between farmers and processors as to whom makes the profit. Rarely is it both. . . 

International acclaim for Whitestone:

Whitestone Cheese Co. is riding a wave of international critical acclaim after recent achievements at the world’s biggest cheese competition in Wisconsin USA and a trophy from the New Zealand Champions of Cheese Awards.

At Wisconsin, Ohau Goat’s Blue achieved the highest accolade with 4th place in its category with a near perfect 99.7 out of a 100 – an incredible result and just 0.1 points off the bronze medal. Ohau Goat’s Blue is a new addition to Whitestone’s Premium Black Label range. The goat milk comes from a Washdyke farm just north of Whitestone’s Oamaru cheese factory, and the cheese is made with Whitestone’s Windsor Blue culture. . . 

Samantha is a cut above the rest – Robyn Bristow:

The knives were out last week as Samantha Weller, from New World Rangiora, trimmed her way to the title of World Champion Apprentice Butcher.

The 23-year-old travelled to Belfast, Northern Ireland, with New Zealand’s butchery team, the Pure South Sharp Blacks, to compete in the cutting test.

She competed against 10 others from five countries, who had two hours to turn a beef rump on the bone, a side of lamb, and a loin of pork belly into a display of value-added cuts – much like that seen in a butcher shop or supermarket. . . 

Seeka  sells out of Zespri after opposing changes to constitution tying shares to trays – Jonathan Underhill:

(BusinessDesk) – Seeka, New Zealand’s biggest kiwifruit grower, has sold out of Zespri Group after opposing constitutional changes at the monopoly export body that tie shareholdings to trays of fruit produced.

The changes were approved by more than 75 percent of shareholders last month but among the resolutions was that shareholders who voted all their shares against the overhaul could require Zespri to buy back their shares. . . 

OIO signs off on Icebreaker sale to US clothing giant VF Corp – Sophie Boot:

Icebreaker Holdings has been sold to US-based VF Corporation for at least $100 million after the Overseas Investment Office approved the deal.

In a media release today, North Carolina-based VF Corp said the OIO signed off on the transaction, which completed the transaction. The acquisition “is an ideal complement to VF’s Smartwool brand, which also features merino wool in its clothing and accessories. Together, the Smartwool and Icebreaker brands will position VF as a global leader in the merino wool and natural fibre categories.” The brand is expected to be immediately accretive to VF’s earnings per share, it said. . . 

Kiwi apple remains ‘Envy’ of others in USA:

American’s have once again selected New Zealand-born Envy™ apple as their favourite in a consumer competition run by the US Apple Association.

The interactive tournament-style competition called on American apple fans to vote for their favourite from 16 different apple varieties during the month of March.

Kiwi grower, T&G Global, was well represented in the competition with three of its premium apples namely JAZZ™, Envy™ and Pacific Rose™ being voted on by apple-lovers. . . 

Berry orchard sale offers horticultural operators a sweet growth opportunity:

One of the North Island’s most diverse boutique orchards –encompassing blueberry, raspberry and avocado production operations – has been placed on the market for sale.

Tomo Orchard at Pukenui near Houhora in the Far North, is an intensive 6.2 hectare horticultural venture growing blueberries under some 10,000 square metres of fully-enclosed framed canopies and 8000 square metres of covered netting. . . 


Rural round-up

March 17, 2018

Dairy Report: Irrigation in the South Island insulated dairy farms from drought this year allowing maintained production. North Island makes a fast recovery – Guy Trafford:

Fonterra states it has collected 2% less milk than the previous season. However, given it was 6% down up to the end of December on the previous calendar year and January was 8% down, since that period there must have be a great turn around.

This is no doubt driven by the good grass season experienced by farmers in many parts of New Zealand since mid-January and dairy farmers holding onto potentially cull cows to help control it.

Looking at the Fonterra milk collection data it appears likely that by April the 2017/18 season will come close to matching that of previous years. Most of the volatility around milk production is coming from the North Island with irrigation maintaining much of the South Island production at a status quo situation. . . 

Dairy capacity is manageable – Hugh Stringleman:

The latest milk market share figures show that Fonterra is approaching 80% of national milk collection at a time when dairy industry processing overcapacity is an emerging threat.

Two new dairy plants are due to open in August and if their operators attract their targeted milk supply Fonterra’s market share next season will fall from 82% to 80%.

The plants are industry number two Open Country’s fourth location, at Horotiu, in northern Waikato, and newcomer Mataura Valley Milk, in Southland. . . 

Project offers school children farm visits – Sally Rae:

Farming is not all about chasing sheep.

That was something Deep Stream farmer Preston Hope explained to a group of 29 city school pupils visiting his property yesterday.

Rather, there were a wealth of various career paths available in the rural sector, ranging from science to sales and marketing.

“There are a huge amount of opportunities,” he said. . . 

Lorna’s love of cows rewarded – Sally Rae:

Lorna Button started showing cattle at a very young age.

Miss Button (17) reckoned she was probably 4 or 5 when she first wielded a halter and lead, and paraded around the ring.

In fact, there were photographs from when she was young, showing her holding her charge’s head “right up high” and it was right above her head, she said.

This year, a highlight for the South Otago teenager was winning the intermediate-senior handler (14-18 years) class at the New Zealand Dairy Event, held at Manfeild Park, near Palmerston North. . .

Zespri shareholders back constitutional changes according to preliminary vote count – Rebecca Howard:

(BusinessDesk) – Zespri shareholders voted in favor of constitutional changes aimed at strengthening grower ownership and control of New Zealand’s statutory kiwifruit exporter, according to preliminary results from a special meeting held today in Mt Maunganui.

Shareholders voted on a series of resolutions that will impose a cap on the number of shares they can hold relative to trays of kiwifruit produced, and phase out dividends for non-producing shareholders over seven years. .  . 

National Farmers’ Union first female boss addresses sexism in farming – Adrian Lee:

FOR centuries farming’s image has revolved around ruddy-faced men toiling in fields while their loyal women folk run the home. It is a stereotype that has proved hard to break down.

However the election of the National Farmers’ Union’s first female president in its 110-year history will do much to prove that attitudes within the industry are changing. Minette Batters, who built up a 300-strong herd of pedigree Hereford cattle from scratch in Wiltshire, fought off male competition to secure the post this week.

She was told by her father that farming is not for girls but insists that agriculture as a man’s domain is being consigned to the past. “That really is a very out of date opinion,” says the 50-year-old single mother who took charge of the farm in 1998 and has steadily worked her way to the top. . .

 


Rural round-up

February 21, 2015

Further fruit fly found in Auckland:

The Ministry for Primary Industries (MPI) confirms that an isolated population of the Queensland fruit fly has been found in the Auckland suburb of Grey Lynn.

A resident of the higher-risk Zone A in the middle of the existing Controlled Area found a single fly in a lemon tree on his property, captured it and reported it to MPI.

The fly was formally identified as a recently-emerged un-mated female adult fruit fly. This is the only fly that has been found, over and above the initial trapped fly found earlier this week.

Chief Operations Officer Andrew Coleman says thanks must go to the resident who captured and reported the fly, allowing MPI to act swiftly to scope the problem. . .

Belief in sheep’s milk put to test:

One man who sees the potential in sheep milk opportunites is putting it to the test.

A Lincoln University farm management and agribusiness lecturer planned to manufacture his own ice cream from milking 125 ewes on his property in Darfield, Canterbury.

Guy Trafford said the roof for his dairy plant was to be put on next weekend.

He said the sheep milking industry was an untapped opportunity for farmers. . .

Irrigation gains reflected in updated Overseer:

Irrigating farmers and growers will soon have greater confidence in the outputs OVERSEER® Nutrient budgets (Overseer) generates with the release of the nutrient budget model’s new comprehensive irrigation module.

From late April, Overseer 6.2 will improve the ability to model a range of irrigation systems and practices, dramatically improving its ability to calculate N-loss for irrigated properties.

Overseer General Manager Dr Caroline Read says incorporating the breadth of irrigation systems and management in use today will allowOverseer to address a known shortfall. . .

 Pasture recovery plan – growing grass after the dry:

 Livestock has been the number one priority in areas hit by the recent dry – and rightly so – but now pastures also need attention, to fuel farm recovery after rain, and provide the main source of feed for the next 12 months.

A successful pasture recovery plan has three stages: current management while conditions are dry; actions to be taken when rain comes and an autumn pasture renewal programme.

Pasture specialist Graham Kerr says the best way to start is to assess all paddocks on the farm, and divide paddocks into three categories. . .

 

National Fieldays calls for single, rural blokes:

Entries are now open for the 2015 Rural Bachelor of the Year competition.

Single, rural men wanting to apply to enter the competition face a range of challenges over the National Fieldays week in their bid to be crowned Rural Bachelor and walk away with $20,000 worth of prizes.

Click here for more information.

The competition is held in the lead-up to, and during the New Zealand National Fieldays at Mystery Creek from June 10-13. . .

New Prime Off Mum Challenge launched to New Zealand Farmers:

New Zealand’s largest red meat genetics company is encouraging farmers to get in behind a new initiative which aims to get more prime lambs straight to the works off their mothers and in turn increase farm profitability.

Focus Genetics is launching the new benchmarking challenge “Prime off Mum” open to all New Zealand sheep farmers. Registrations open on Monday February 23 at www.primeoffmum.co.nz.

The challenge will give participating farmers an opportunity to find out how they are tracking against others with similar land classes. . .

 

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Counting ETS costs

September 12, 2008

Now that legislation which will impose an Emissions Trading Scheme on us has been passed the papers are starting to count the cost.

The ODT says the scheme will hit consumers and exporters:

It seems consumers will bear the cost of the emissions trading scheme while farmers and horticulturists fear their businesses and New Zealand’s key export industries could pay the ultimate cost and be forced out of business.

But Agriculture Minister Jim Anderton has moved to ease the sector’s concerns, saying through a spokeswoman, that if there was no greenhouse gas emission mitigating technology, the sector would get additional time to adjust.

Would you buy a used reassurance from this man?

A BP spokeswoman said yesterday’s international price of carbon credits was $44 a tonne, which would increase the price of petrol 12c a litre.

A Meridian Energy spokes-woman said the company believed the ETS was the best way to change consumer behaviour, and she said the company accepted Government predictions of its impact on energy prices.

Those were: retail electricity price to rise 1c to 2c per kWh, gas 0.9c to 1.7c per gJ and a 20kg bag coal of 90c to $1.50.

Fonterra said the higher production costs would filter through to higher consumer prices.

Meat and Wool New Zealand chairman Mike Petersen warned the $5 billion sheep and beef industry could disappear.

Other than reducing productivity or the number of animals carried, little mitigation technology was available.

Horticulture New Zealand president Andrew Fenton feared his members could also go out of business.

The $2.6 billion export earner would lose its competitiveness and consumers become reliant on food imports from Chile, South Africa and China which had higher greenhouse gas emissions, he said.

“As our growers slowly go out of business under the weight of ETS costs, New Zealand consumers are going to end up eating imported product grown in countries with much higher carbon output than ours is now.”

Lincoln University farm management lecturer Guy Trafford, has calculated the cost of ETS in 2013 for a 4000-stock unit sheep and beef farm at $36,088 a year and for a 350-cow dairy farm $40,804.

“The problem for agriculture is that it’s essentially a tax and there is still a huge anomaly, as we seem to be bringing it in for agriculture when most of the world is ignoring agriculture.”

What will be the impact on consumers?

It depends on the international price of carbon dioxide at the time the sector is included, but the general consensus is the cost of everyday items will rise.

BP says if the ETS applied to it yesterday, petrol would rise 12c a litre at the pump.

The Government says retail electricity will increase 1c-2c/kwh, gas 0.9c-1.7c/GJ, coal 90c to $1.50 a 20kg bag.

HortNew Zealand say it will cost the sector an extra $40 million a year and Lincoln University says in 2013 it will cost a sheep and beef farmer $36,000 and a dairy farmer $41,000 a year.

The Southland Times  says the ETS could cost 1000 jobs.

Southland’s economy would be hardest hit by controversial emissions trading legislation, an economic study has found.

 

Economic consultancy the New Zealand Institute of Economic Research found Southland would be hit hardest because of the importance of the dairy industry and the aluminium smelter to the local economy.

In contrast, Auckland and Wellington would be least affected because of the high concentration of service industries and public sector employment.

The Emissions Trading and Renewable Preference Bill passed into law by 63 votes to 57 on Wednesday.

The study, done before select committee hearings on the legislation, found agriculture, in particular, would suffer because costs of the scheme would fall heavily on export industries.

Metals manufacturing would also be hit hard, with capital falls of 6.5 percent and a 3.4 percent reduction in employment, it says.

The impact of the scheme on agriculture and related services and processing in Southland could result in employment reductions of about 1000 jobs, the report says.

And what will the impact on global emissions of carbon be? That too is up in the air but given New Zealand produces just .2% of the world’s emissions and most of that is from animals and the technology to reduce them is not yet available the answer is little if anything.

And, if carbon efficient businesses move from New Zealand to countries without an ETS and with lwoer environmental standards emissions may increase.


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