Rural round-up

September 2, 2019

Government policy, rule changes are hitting farmers in the pocket – Hayden Dillon:

A capital crunch is starting to impact farmers as the banks get more cagey about lending to dairy and the sheep and beef sectors, writes Hayden Dillon, head of agribusiness and a managing partner at Findex.

Things are looking okay externally. The big picture for our safe, efficiently produced protein is still strong, as shown by good commodity prices. But three domestic drivers have converged to cause difficulties for farmers, particularly those with a lot of debt or wanting capital to grow.

Firstly, changes imposed by the Overseas Investment Office have affected the value of and demand for land. We no longer have the same foreign capital coming in for our biggest farming sector – sheep, beef and dairy and our productive assets there. . .

More farmland goes into trees – Pam Tipa:

A large foreign-financed but New Zealand owned investment company has brought a big station in the Wairarapa for forestry development.

Social, employment and environmental sustainability issues will be included in plans to ensure a stable local rural community, it claims.

Kauri Forestry LP, a forestry business built, managed and governed by Craigmore Sustainables, has purchased Lagoon Hills Station in Wairarapa. . .

Could India be the next big thing for New Zealand sheep meat? – Jamie Gray:

Hopes are running high that India could be the next big thing for New Zealand sheep meat exports if the two countries form closer economic ties.

The Regional Comprehensive Economic Partnership (RCEP) involves 16 countries – the 10 members of ASEAN, plus the six countries with which ASEAN has free trade agreements—Australia, China, India, Japan, Korea, and New Zealand.

The meat industry has expectations that RCEP will form a platform that will allow New Zealand access to India, which at the moment imposes high tariffs on imported goods.

“My personal view is that India is the next big prize,” Tim Ritchie, chief executive of the Meat Industry Association, said. . .

 

Online training platform Tahi Ngātahi: A ‘game-changer’ for wool harvesting industry:

Shearing stalwart Jock Martin is the driving force behind online training platform, Tahi Ngātahi, which is revolutionising the way the wool harvesting industry trains its workforce.

Martin has been part of Otago and Southland’s wool harvesting scene for over 30 years and is a second generation shearer.

Passionate about improving skills and safety, he believed new e-learning platform Tahi Ngātahi was the ‘game-changer’ the industry has been waiting for.

Keeping workers injury-free in a physically demanding occupation is a big issue for the wool harvesting industry. . .

From vegan interns to visiting preschoolers, all are welcome at the ECO School – Rebecca Black:

“Do you mind goat’s milk in your tea?” Dani Lebo is a considerate host, though she quickly admits goat’s milk is really the only option because there are no other milking animals on her farm.

So goat’s milk it is, fresh and delicious.

The goats, like everything on five-hectare Kaitiaki Farm, are a deliberate choice. They’re lighter on the steep clay-heavy hills than cattle or sheep. . .

Time to move the ‘meat vs plant’ debate beyond crude headlines – Joanna Blythman,:

After all those months of BBC News regurgitating the bandwagon ‘reduce red meat to save the planet’ script, what a refreshing change it was to hear a thoughtful discussion on the Today programme with Patrick Holden, director of the Sustainable Food Trust, arguing convincingly for more, not less, red meat consumption.

While Vicki Hird from Sustain stuck to the ‘less but better meat’ mantra, Holden moved on this stale and overcooked debate. He argued persuasively that every country should align its diet to the productive capacity of its land. In other words, what’s on our plates should reflect the ecology of the country we live in. Two-thirds of UK land is grass, so red meat and dairy should form a significant proportion of our diets. When these foods come from fully pasture-fed animals, we can eat them, as Holden put it, sustainably, and with a clear conscience. In terms of climate effects, any methane produced by livestock is short-lived and offset by the benefit of the carbon that is sequestered in the permanent pastures they graze. . . 


Rural round-up

June 5, 2019

Climate change burden, benefits must be spread fairly – Gavin Evans:

 (BusinessDesk) – Setting stringent climate change targets without understanding their cost or feasibility risks placing an unfair burden on some sectors, climate change professor David Frame says.

Moving New Zealand to a net-zero carbon economy will have benefits but also real costs and it is important both are shared across the community. That will probably require creative approaches from region to region and from sector to sector, he said at the New Zealand Minerals Forum in Dunedin last week.

Policymakers need to focus on emissions – rather than the resources they come from – and find a way to broaden the discussion beyond electorally-easy targets like heavy industry and coal. Agriculture also receives a lot of pressure that “isn’t really justified,” he said. . . 

New way to work out who’s who in the paddock – Sally Rae:

How do ewe tell one sheep from another?

Greg Peyroux and Benoit Auvray, the co-founders of Dunedin-based Iris Data Science, might well have the answer.

They have been working on sheep facial recognition to cheaply re-identify sheep, potentially removing the need for ear-tags while also solving other farm management and broader issues.

While facial recognition had been developed for cattle in the United States and pigs in China, the pair were not aware of anybody doing it for sheep.

Sheep face images were collected and fed into a machine-learning model. . . 

 

Danone cleared to indirectly hold up to 65% of Yashili NZ –  Rebecca Howard:

June 4 (BusinessDesk) – Danone SA can indirectly hold up to 65 percent of Yashili New Zealand Dairy Co after its Danone Asia Pacific unit got a green light from the Overseas Investment Office to purchase up to 49 percent of the local dairy processor.

“The applicant has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character. The applicant has also demonstrated financial commitment to the investment,” the OIO said in a statement. . . 

Cherry exporter announces major Cromwell investment:

New Zealand Cherry Corp is expanding its operations and investment in Cromwell.

NZ Cherry Corp is a long established, locally owned Cromwell business. Its 32ha cherry block is the largest netted orchard in New Zealand. During cherry season it employs up to 500 staff and harvests up to 800 tonnes of cherries. It exports to 10 countries.

Director Paul Croft says following the recent purchase of a 244ha block of farmland adjacent to its existing orchard, NZ Cherry Corp is doubling the size of its orchard and turning 4ha into worker accommodation. . . 

 

Dairy export volumes advance to new record:

Dairy export volumes hit a new high after rising 19 percent in the March 2019 quarter, adjusted for seasonal effects, Stats NZ said today.

While dairy volumes were strong in the quarter, actual dairy prices fell 7.5 percent. That means dairy values rose only 9.5 percent, seasonally adjusted.

Dairy products are New Zealand’s top goods export, accounting for more than a quarter of the value of all goods exported in the March quarter. . . 

Shareholders back Primary Wool Co-Operative, providing strong support for the organisation’s future:

Primary Wool Co-Operative (PWC) shareholders have placed their organisation on an extremely strong footing for the future, providing overwhelming support for two key resolutions at the co-operative’s 44th annual general meeting.

Farmer shareholders voted in favour of maintaining PWC’s 50% shareholding in CP Wool, as well as over 98% supporting a constitutional change enabling a capital raise to back CP Wool’s five year strategic plan at the meeting in Dannevirke on May 23. . . 

Caring for stock in wild winter weather:

With winter now starting to bite, the Ministry for Primary Industries (MPI) is reminding pastoral livestock farmers of their animal welfare responsibilities, whether animals are kept at home or sent off-farm to graze.

“This time of year can be challenging for farmers, with wet and muddy conditions increasing risks to the welfare of their livestock,” says Kate Littin, Manager Animal Welfare.

“Many farmers, particularly in Southland and Otago, choose to break feed stock on crop over the winter months. It’s a great way to provide food for animals and protect pastures, but does require careful planning and good stockmanship to avoid welfare risks that wet weather can bring. . . 

Rural credit squeeze putting pressure on farmers:

Rural credit squeeze putting pressure on farmers access to capital.

Dairy farmers who are currently facing the two major challenges of falling land prices alongside increasingly restrictive access to capital are being encouraged to focus on a robust budgeting process and get on the front foot with their bank manager.

Findex Head of Agribusiness Hayden Dillon said “access to funding is becoming more of an issue, despite the good payout and this is putting some farmers under pressure” . . 


Rural round-up

October 12, 2017

Better communication will bridge rural urban divide – Hayden Dillon:

The farming community needs to step up to help lessen the rift between city and country.

I believe the debates during the course of the recent election campaign oversimplified some issues that are core to the agri sector, such as water and soil quality. These have created divisions that are not helping New Zealand move forward.

As with many complex issues, the rush to simplify the discussions and debate has seen farming, in particular dairying, blamed for many of our environmental problems.

That’s simply not correct. . .

Appreciate world’s best office :

Stopping to appreciate the small things in life really helps people handle the big stuff. 

That was one of the messages coming through loud and clear from farmers involved in rural wellbeing initiative Farmstrong, project leader Gerard Vaughan said.

Over the last two years Vaughan and video maker Nigel Beckford have been busy interviewing Kiwi farmers about what they do to keep well and avoid burnout.

They’ve been sharing the best tips and advice in short video clips on the Farmstrong website – http://www.farmstrong.co.nz. . . 

It’s not smart to tough it out on your own:

It’s Mental Health Week and the theme is “Nature is Key – Unlock Your Wellbeing”.

The idea is to escaping stressful or ‘same old rut’ work and home environments to eat your lunch in a park or at the beach, to take the family for a weekend bush walk, etc.  It can lift spirits, put you back in touch with Nature, and get you thinking about your health, your priorities – and whether you may need to reach out for help or advice.

Federated Farmers President Katie Milne welcomes the focus on mental health and talking through issues and feelings with others.  “Our great outdoors can also be a wonderful tonic.”

But for rural folk, Mother Nature can also be a source of considerable stress.  Storms, floods, ailing livestock, droughts, etc., can ratchet up financial woes, relationship strains and the feeling ‘it’s all too much’.. . .

Mental health support needed for farmers – Alexa Cook:

A Waikato farmer is pushing for the government to provide better mental health support for the rural sector.

Research shows that the suicide rate in New Zealand’s rural sector is up to 50 percent higher than in urban areas.

Dairy farmer Richard Cookson has had his own struggle with mental health, and said while there is good crisis support for farmers, such as the Rural Support Trust, there isn’t enough for depression.

This Mental Health Awareness Week, Mr Cookson said a good start would be free counselling to get farmers in the door, but the sector also needs quite specific help. . . 

Media accepts pseudoscience drivel unchallenged – Doug Edmeades:

 Damn it all. Someone is not listening and I am now forced to repeat myself. My last column ended thus:

“Without an independent principled fourth estate we may be drifting away from being a society in which our policies are based on evidence, rational thought and logic analysis and which encourages and embraces criticism. If we are not careful we could drift back to a time when humans believed in alchemy, witches and taniwha”.

In this last week, as if on cue, three media outlets coughed up three items of demonstrable drivel.

Exhibit 1: The NZ Farmers Weekly (October 2) gave their opinion page to Phyllis Tichinin in an article headlined, Urea cascade cause of problems. She attributes many animal health, soil and environmental problems to the overuse of urea. Opinion yes, evidence no. Her whole thesis fails the logical test of cause and effect. How can one thing – in this case urea – have so many unrelated effects? As one qualified reader expressed it to me: “I struggle to find one fact or one statement that isn’t a falsehood.” . . .

Is this synthetic food thing for real? – Jacqueline Rowarth:

Synthetic food is being talked about rather more than it is being eaten.

The balance might change in future as the technologies develop, but at the moment there is more hype and interest than hunger and intake.

The Impossible Burger seems to be the focus at the moment. The burger is made in the laboratory from wheat (grown in a field) and involves a ‘haem’ from legumes. The haem is pink (it is responsible for the colour in healthy, nitrogen-fixing clover root nodules) and so confers the burger with ‘bleeding’ properties. . . 

Farmers Fast Five: Doug Avery – Claire Inkson:

The Farmers Fast Five : Where we ask a farmer five quick questions about farming, and what agriculture means to them. Today we talk to Marlborough Proud Farmer Doug Avery whose Resilient Farmer platform aims to deliver powerful support to New Zealand farmers across the three pillars — financial, environmental and social. Through road shows and ongoing mentoring, he helps farmers to adopt new thinking and practices. Check out his best selling book The Resilient Farmer, and his website http://www.resilientfarmer.co.nz for more information .
How long have I been farming?

46 years but I am only involved in the directorship of the business now and financial control.
What sort of farming are you involved in?
We grow wool, meat, crops , dairy support and people. . .

Fieldays growth underlines primary sector importance:

The importance of the primary sector to the New Zealand economy is emphasised today by Fieldays’ 2017 Economic Impact Report.

A report prepared by the University of Waikato Management School’s Institute of Business Research, reveals that the biggest agricultural expo in the southern hemisphere, generated an estimated $238 million to New Zealand’s GDP, an increase of 24.7 per cent when compared to 2016.

Federated Farmers’ Board member Chris Lewis is particularly familiar with Fieldays and regards the event as a key indicator to how the country is faring. . . 

 


Rural round-up

October 28, 2016

Capturing excess water a no-brainer – Steve Wyn-Harris:

One of the current Hawke’s Bay regional councillors who has strongly opposed the Ruataniwha Dam and, party to many comments regarding farming, has as his guiding thought when considering council matters: ‘wisdom is old men planting trees under whose shade they will never sit’.

I like it very much and although not claiming to be wise I have planted some 50,000 trees on my own property and continue to plant as I near 60 so certainly won’t be sitting under the shade of these latter trees.

My own guiding principal throughout my farming career has been ‘live life as though you may die tomorrow but farm as though you may live forever’. . .

Southland woman published book on being a woman in a man’s world in the rural sector –  Briar Babington:

Women in the workplace have come a long way in the past 50 years, but it’s those experience that are the framework for one Southland woman’s latest book.

Dawn Andrews was born and bred in Gore and has put her life experience to pen and paper and published a book outlining the challenges of being a working woman in the rural sector.

“It’s a book that I’ve thought about writing for a long, long time,” she said.

The book is an autobiography of sorts, spurred on my Andrews’ passion to make sure history was being well documented, providing something for the future generations to look back on. . .

5000 lambs  ‘click the ticket’ in US supermarkets – Kate Taylor:

A Hawke’s Bay sheep farm is the first in the world to be certified for its pasture-only system. Kate Taylor reports on what makes this Central Hawke’s Bay station stand out from the rest.

Visitors to Mark Warren’s hill country farm get to witness at first-hand the skills of an expert four-wheel driver. A spectacular view from the top of Waipari Station is their reward for taking what seems to be a direct line up to the sky.

Perceived danger aside, Warren is skilled and confident on the side of a hill and doesn’t stop talking about the great advantages New Zealand farming has to offer.

Warren and his partner Julie Holden live on the 1300ha station (1000ha effective) in the Omakere district in coastal Central Hawke’s Bay that is managed for them by Nigel Hanan. . .

Taranaki road transport boss says bobby calf video is positive – Sue O’Dowd:

A video purporting to show poor handling of bobby calves being loaded on to stock trucks has been rubbished by Taranaki road transport boss Tom Cloke. 

Cloke said the footage released by Farmwatch this week failed to show the truck crates contained rubber mats to cushion the calves’ landing when they were rolled aboard. 

He wants the public to realise the bobby calves weren’t being rolled onto a hard grating. . . 

Fonterra assesses impact of big drop in milk production on future sales – Fiona Rotherham

 (BusinessDesk)Fonterra Cooperative Group is assessing the impact of a big drop in milk production this month on its contract book and future production plans.

In its latest global dairy update, the world’s biggest dairy exporter said daily milk volumes across the central and upper North Island were down significantly in the early part of October due to the impact of wetter than normal spring weather and this has continued, particularly in the key dairying region of Waikato where daily milk volumes are down around 14 percent compared to last year.

Given that milk collections are now at the peak of the season, they are not expected to recover and will flow into the balance of the season, it said. . . 

Differences between Australian and NZ meat industries – Allan Barber:

Information obtained from Sydney based consultancy agInfo shows a very high degree of procurement competition for domestic market supply, especially for beef; this situation has been driven by a tightening of livestock supply combined with aggressive pursuit of retail market share by Woolworths.

It illustrates how the dynamics of the Australian market differ from here, although the structure is quite similar: retail butcheries competing with two major supermarket chains and a larger proportion of stock destined for export. But the Australian domestic market represents more than 30% of total livestock production compared with only 10-15% in New Zealand where mid-winter is the only time of year when domestic production exerts greater influence.

Australian beef producers are receiving what appears to be an unsustainable price at the moment, measured at 69% of the retail price which compares with 56% in October 2015, 44% in 2014 and 36% in 2013. . . 

Farmers need to be vigilant around fixed rate mortgages:

Market commentators are indicating with 80% certainty the Reserve Bank of New Zealand will lower the official cash rate by 25 basis points next month and then it will begin to stabilise. This is leading many rural borrowers to consider if now is the time to be looking at fixing rates. Head of Corporate Agribusiness at Crowe Horwath, Hayden Dillon, cautions that with markets still showing volatility, making hedging decisions simply by following economists’ advice can be fraught with danger.

“Even with another cut appearing to be imminent, the market appears to have little appetite for more, and inevitably talk will begin around when they may start to go up. Many rural borrowers are now looking at an interest rate curve that is still relatively flat, and thinking now could be the time to take some cover. But there are variables that you need to be aware of before you start to consider your options,” warns Dillon. . . 

Young Viticulturist of the Year drives off in brand new Hyundai Santa Fe:

Cameron Price the winner of the Young Viticulturist of the Year competition 2016 is thrilled to receive a Hyundai Santa Fe as part of his prize package. He will have full use of the vehicle for a whole year. It is appropriately “grenache” coloured – one of the more unusual red grape varieties that Price nurtures on the Villa Maria vineyards where he works.

The vehicle was presented to him at the Bayswater Hyundai Dealership. Hyundai have been sponsoring the Young Vit competition for the last three years and in that time the prestigious Bayer Young Viticulturist title has been taken out by a Hawke’s Bay finalist, a genuine hat-trick for the region. Paul Robinson also from Villa Maria won the competition in 2014 and Caleb Dennis from Craggy Range took it out in 2015. It is becoming a familiar sight therefore to see a Young Vit branded Hyundai Santa Fe cruising around The Bay. . . 


Rural round-up

July 31, 2016

World trends that will influence future farming – Pita Alexander:

The oldest son in a farming family has returned home from a trip overseas after completing his degree at Lincoln University.

Before coming back to the farm and making a career of farming the son spent a year in Australia, North America and Europe. He wanted to obtain a picture of where farming might be heading during his tenure.

Among his many observations in a report he prepared for his family were the following:

– A formal licence to farm is looking like a certainty for New Zealand within the next 10 – 15 years and the banks may lend at lower interest rates with this certificate.

–  Killing farm animals before they are fully grown is getting some air time in some countries.

– Traceability from the farmer to the eating and buying consumer is already present, but is going to get more complicated and will hopefully bring more value to the farmer.

–  About 25-30 per cent of the world’s food production ends up being wasted and not eaten  – this will have to be improved upon well before 2050. . . 

ASB punts on Fonterra sticking with $4.25 milk price – Jamie Grey:

ASB Bank is punting on Fonterra leaving its 2016/7 farmgate milk price forecast unchanged at $4.25 a kg of milk solids when the co-operative releases a market update on Monday.

However the risks were “skewed” to a figure as low as $3.90/kg because of a consistently strong New Zealand dollar, ASB rural economist Nathan Penny said in a research note.

Penny said it was still early days in the season, which started on June 1, and that there was plenty of time for dairy prices to rise. . . 

More research is needed if farming is to progress – Jacqueline Rowarth:

Climate variability, farm gate prices for food and fibre, and increased concerns about the environment are combining to create unsustainable farm systems.

Alternatives need careful evaluation before decisions are made in an attempt to avoid unintended consequences.

The latter can be worse than the current state – Brexit, for example. 

Increased warm temperatures, drought, floods and long cold springs mean that farmers are adapting systems to cope. Use of supplementary feed has been part of the development of resilient farm businesses, but the urban perspective is that costs have increased without an increase in income. . . 

Resistance or resilience – which best characterises the red meat sector? – Allan Barber:

The Red Meat Sector Conference held in Auckland on Monday did not have one single theme, but a series of themes across the day, starting with the question ‘resistance or resilience?’ Past history suggests the answer might most logically be both rather than a choice between the two options.

In his introductory remarks MIA chairman John Loughlin said the volatile global situation contrasted with a relatively stable environment at home with a predictable meat industry, while Beef + Lamb chairman James Parsons highlighted the need to reduce on farm costs while achieving incremental gains across the supply chain. . . 

Queenstown tracks to get ratepayer funding:

Queenstown’s council has agreed to pay to maintain 11 walking and biking tracks being developed across two high country stations.

The Queenstown Lakes District Council yesterday agreed to pay $10,000 a year to maintain the existing and planned tracks, which will go across Glencoe and Coronet Stations.

The land is partially owned by the Crown under pastoral lease, and partially by Soho Properties, which has entered into an agreement with the Queen Elizabeth II Trust to protect the land. . . 

Better baits and better trapping – Kate Guthrie:

Peanut butter has long been used as a lure for rats. Possums have a fondness for the scent of cinnamon. But are they the all-time favourite foods of rats and possums? Researchers at Victoria University of Wellington used chew cards to check out what really tickles the tastebuds of two of our more common urban pest species. Home trappers might like to give these food lures a go too…

Many tests of trap lures are done with laboratory animals, but in this project the researchers compared food-based products on free-ranging, wild rats and possums. They assessed the chew card results for attractiveness and consumption and found that wild rats preferred cheese, milk chocolate, Nutella and walnut to the peanut butter standard. Possums statistically preferred apricot and almond to cinnamon. . . 

Farmers need to be bank ready:

With the dairy pay out remaining stubbornly low and equity positions becoming more precarious many farmers are seeing more of their bank manager, according to Crowe Horwath’s Head of Corporate Agribusiness, Hayden Dillon.

Dillon is quick to point out that this increased level of contact isn’t always a bad thing and proactive discussions between banker and farmer are an important step to take in dealing with the current financial pressures both parties are facing.

However, it can be intimidating for some and a recent Federated Farmers’ survey found that one in ten farmers were feeling an ‘undue’ level of pressure from their bank. . . 

#431AM top ten calving tips:

We asked our #431AM farming community how to get through #calving16.

Here are some of our farmers’ top tips for the calving season. Thanks to everyone who contributed!

We’d love to hear your #calving16 tips – hit us up on Twitter, Facebook or Instagram using #431AM. 

 

  • Eat well, sleep well, know your body’s limits. Good communication amongst your team and don’t let things get to you. It’s farming, it’s life and things go wrong. It’s how you manage the situation that counts. Being negative will make time go so much slower, and above all think of our girls. We get days off during the season but they don’t, without our girls we are grass growers. Richard H
  • We have 3 meetings a day. We have a work safe meeting to work out what safety gear we will need before we’re out the door. Yesterday with snow on the ground it was too dangerous for workers to leave the house. You have to have more meetings. 1 a day is not enough. Ann-Maree G
  • Take time to get off farm, even for an hour. Keep in touch with others, especially when things are at their toughest. Chances are others are also feeling the burn. Sue M
  • Set a roster, keep the fridge stocked with food snacks, have morning meetings with coffee and snacks and last thing at night after milking. Ask what people want to discuss at tomorrow’s meeting and what was their highlights and/or best achievements for the day. Geoff M . . .

 

South Island Wool Bounces:

New Zealand Wool Services International LTDs CEO Mr John Dawson reports that despite a strengthening NZ dollar, the varied selection at this week’s South Island auction attracted strong support.

Of the 7700 bales on offer 85 percent sold.

The weighted currency indicator was up 2.06 percent compared to the previous week’s auction.

Mr Dawson advises that a selection ranging from 21 micron merinos to 42 micron coarse wools with a cross section of styles and lengths provided attractive options to buyers which overrode the possible negative impact of the stronger dollar compared to the similar South Island offering on 14 July. . . 

Fine wines of New Zealand revealed:

Six of the nation’s leading independent wine experts have come together to create “The Fine Wines of New Zealand” – a list of the country’s most prestigious wines.

A selection panel comprising Masters of Wine Alastair Maling, Michael Brajkovich, Sam Harrop, Simon Nash and Steve Smith along with Master Sommelier Cameron Douglas has agreed on the list for 2016 which includes 47 wines representing seven varietals.

This group of leading New Zealand wine experts met several times in late 2015 and in the first half of 2016 to define the criteria that had to be met for a wine to earn the prestigious Fine Wine of New Zealand status. One of the key criteria is consistency, with a wine having had to have been produced to an exceptional standard for a minimum of five consecutive years. . . 


Rural round-up

March 14, 2016

Shearers sharing their skills – Sally Rae:

Ryan MacLean came to New Zealand last year “to learn how to shear a sheep and grow grass”.

The young Scotsman arrived in October to work for a Napier-based shearing contractor before heading south in January to work for Warren White, of Waimate Shearing.

From a sheep and beef farm, Mr MacLean (20) has always wanted to be a farmer and he also enjoyed shearing.

The aim of his New Zealand trip was to increase his tally. . . 

Why farmers pay higher interest on loans – Stephen Franks:

Specialist farm lending can be very profitable. Competition does not seem to wipe out the premium farmers tend to pay compared to other mortgage lending. It has puzzled economists from time to time.

Andrew Little’s stupid threats reported on Stuff this morning remind me why good farmers pay too much for their mortgages. I suspect he has just helped ensure more years of super-profits for farm lenders.

I’ve seen no recent study, but the farm sector interest margin was estimated to average over half a percent over many years when I was a lawyer for various farm financing institutions and a director of Wrightson and its finance company arm. . . 

Fonterra ‘needs to be good corporate citizen’ – agribusiness professor:

Waikato University professor of agribusiness Jacqueline Rowarth says farmers are concerned about the way Fonterra is treating the suppliers. Prof Rowarth says the farmers want their co-operative to be a good corporate citizen.

There have been suggestions that by cutting supply costs, Fonterra will be able to fund additional interest-free loans for farmers.

“This is ridiculous. Farmers do not want an interest-free loan,” says Prof Rowarth. “They want Fonterra to do a good job as a corporate citizen, as a marketing and processing arm, for its good product.” . . 

No Bailouts – Offsetting Behaviour:

Low dairy prices bite harder in New Zealand than elsewhere; dairy is a bigger part of our economy than it is elsewhere.

And so pressure for bailouts is potentially larger here than elsewhere. And so today’s “Things I love about New Zealand”: our Finance Minister’s response to dairy prices: . . 

Riding the milk roller coaster:

Dairy farmers are being urged to take a second look at their budgets against the background of a plummeting payout.

Fonterra now is forecasting a $3.90 payout per kg of milksolids, $1.75 below the average cost of production, and there’s fears that next season may be just as bad.

Farmers, who have already gone through their budgets to make savings, are being urged to get together with one another and farm consultants, to see what else they can trim.

Dairy farmers who move now stand more of a chance of riding out the milk roller coaster’s latest descent further into the trough, said Hayden Dillon New Zealand’s head of corporate agribusiness for accounting and advisory firm Crowe Horwath. . .

Predicted Growth Will Provide Challenges for Marlborough Wine Industry:

The Marlborough wine industry is so optimistic about the future that predictions are for an increase in producing vineyards of nearly 25 percent in the next four years.

But with that growth will come challenges, according to a Wine Marlborough, New Zealand Winegrowers, and Marlborough District Council labour market survey.

Undertaken last year, the survey shows that the industry is set to grow by 6,444 hectares by 2019/2020. Currently Marlborough has a total production area of 23,619 hectares, the predicted growth will take those productive hectares up to 29,270 – a 24 percent increase. . . 

Fourth Grand Finalist Confirmed in FMG Young Farmer of the Year:

Tony Dowman is the fourth Grand Finalist to be named in the 2016 FMG Young Farmer of the Year.

Tony is a 30 year old Farm Business Manager who took first place at the East Coast Regional Final in Dannevirke on 12 March.

Mr Dowman went home with a prize pack worth over $10,000 including cash, scholarships and products and services from FMG, Massey University, Ravensdown, Meridian Energy, AGMARDT, Silver Fern Farms, Honda, STIHL and Vodafone. Tony also won the Massey University Agri-growth Challenge, Silver Fern Farms Agri-sports Challenge and the Ravensdown Agri-Skills Challenge.

The last time Tony competed in the Contest was in 2012. . . 


Rural round-up

June 30, 2015

Trade agreements are tricky animals – Alan Barber:

There’s a lot of activity going on with trade negotiations at the moment, but not much certainty about outcomes.

Ranging from the TPP, the grandfather of them all from New Zealand’s point of view, to the murky negotiations with the Gulf Cooperation Council, the only deal signed off this year is the long awaited FTA with South Korea.Although this FTA is good news for our primary sector, it is only a comparatively minor achievement which should have already happened years ago. Even the much vaunted FTA with China appears to have been gazumped by Australia’s more recently signed agreement. . .

‘Decades-old frozen meat’ seized in China :

Almost half a billion dollars worth of smuggled frozen meat – some of it rotting and more than 40 years old – has been seized in China, reports say.

More than 100,000 tonnes of chicken wings, beef and pork worth up to three billion yuan were seized in the nationwide crackdown, the state-run China Daily newspaper said.

“It was smelly, and I nearly threw up when I opened the door,” said an official from Hunan province, where 800 tonnes were seized. . .

Flooding likely to increase vegetable prices:

Vegetable growers in the lower North Island may have lost up to 30 percent of their winter crops from the weekend flooding.

The industry body, Horticulture New Zealand, is still trying to build up a clear picture of the damage to market gardens and orchards.

Communications manager Leigh Catley said some vege growers in Horowhenua and Manawatu were reporting heavy losses. . .

Dart Valley track could be closed for moths –  Sally Murphy:

The Dart Valley track in Mount Aspiring National park could be closed for the rest of the year after wild weather caused land-slips, and heavy rain and flooding washed away parts of the track.

Hillsides have slipped and trees have been washed away.

Department of Conservation services manager John Roberts said it was frustrating as it had undone months of work on the track.

“In recent months we have toiled to find a new route through very difficult country, we hoped to build a basic track around what used to be Sandy Flat, linking up with the temporary track around a new lake.” . .

Water rights and democracy:

The president of Federated Farmers William Rolleston is supporting the Government’s plan for partial return to democracy for the Canterbury Regional Council.

The government is about to confirm its preferred option after consulting on a mixed model of six appointed commissioners and seven elected councillors.

It said the work the commissioners had been doing to bring in a water management plan for the region would be put at risk if there was a full return to democracy. . .

MP delighted at fund announcement for food processing research:

The Ministry of Business, Innovation and Employment has awarded funding of $16.65million over the next six years to transform New Zealand’s primary food production into added-value products.

The programme will be hosted by Massey University, with Professor Richard Archer as national science leader, and partner organisations are AgResearch, Plant and Food Research, the Riddet Institute, the University of Auckland and the University of Otago.

National List MP and former member of the FoodHQ board Jono Naylor is delighted by today’s announcement. . .

Lessons from the GFC farmers can use to bank more effectively:

There are good lessons to be drawn on from the global financial crisis (GFC) for dairy farmers in managing volatility and getting the most from their banking relationship, says Hayden Dillon, Head of Corporate Agribusiness and Capital Advisory for Crowe Horwath.

Major rural banks were expected to support their dairy clients despite many farm budgets indicating negative cash flow positions for the coming year, he said. And post-GFC, banks had undergone significant reforms and were now well-positioned in terms of access to capital. . .

 


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