Rural round-up

November 27, 2018

Only two left for new Fonterra vote – Hugh Stringleman:

John Nicholls of Canterbury and Jamie Tuuta of Taranaki and Wellington will contest the rerun of the Fonterra director election to fill the one remaining vacancy.

One-term director Ashley Waugh has decided not to run again though he came within a whisker of being re-elected in the first round of voting.

Fonterra Shareholders’ Council chairman Duncan Coull sent an email to all farmer-shareholders explaining the rerun process and the council’s reasons for not opening it up to new candidates.

The rerun was necessary because only two of five candidates for three seats received the required 50% approval of farmers, Peter McBride at 80% and Leonie Guiney at 63%.

Waugh got 49%, Nicholls 44% and Tuuta 40%. . . 

Dairy-farm price per hectare plunges – Sally Rae:

Farm sales across the country for the year to October were down more than 10%, while dairy farm  per-hectare prices have pulled back almost 30% during the past year.

In Otago and Southland, there was strong activity in finishing, grazing and arable properties, but dairy farm purchases in both provinces were affected, with restricted supply of capital.

Real Estate Institute of New Zealand rural spokesman Brian Peacocke said for the three months to October there were 263 sales, just two more than a year ago.

Across the country for the year to October 1475 farms were sold, a 10.5% decline on the same period last year. Dairy farm sales were down 7.7%, grazing farms fell 5.6%, finishing was down 13.2% and there were 22.5% fewer arable farms. . . 

Genetic changes will allow merino sheep come down from the mountains – Heather Chalmers:

Synonymous with the South Island high country, merino sheep may be farmed more widely as farmers are lured by high fine wool prices and genetic improvements. 

Merino woolgrower Bill Sutherland, of Benmore Station near Omarama, said it was boom times for the New Zealand merino industry. 

“In a time when strong wool prices are at a historical low, the prices for merino wool have rarely been better,” he told the New Zealand Grassland Association conference in Twizel.  . . 

New boss hears farmers:

Farmers delivered a stern message to new director-general of primary industries Ray Smith at a meeting in Ashburton on Wednesday – they want to be top of his list.

He attended the meeting, facilitated by Mid Canterbury Federated Farmers in response to desperate calls for help from local farmers affected by the cattle disease Mycoplasma bovi, off his own bat.

Farming leaders from across the country including national dairy chairman Chris Lewis and meat and wool chairman Miles Anderson also attended the closed session.

“This meeting was organised so these national leaders could hear from affected farmers and get their stories straight from the horse’s mouth,” Mid Canterbury dairy chairman Chris Ford said. . . 

Interest in competition suggests promising future for agriculture – Sally Rae:

McKenzie Smith grasps every opportunity to learn new skills.

Mckenzie (17), a year 13 pupil at Southland Girls’ High School, is chairwoman of the school’s TeenAg club.

TeenAg — which comes under the umbrella of New Zealand Young Farmers — is aimed  at introducing and promoting a positive picture of agriculture and agricultural careers to pupils from an early age. The club has organised an AgriKidsNZ competition at Southland Girls’ High School on Thursday, for years 7-8 pupils, and team numbers have more than doubled from last year. . . 

Jersey cows eat differently – Abby Bauer:

Each dairy cattle breed has its perks and its quirks, and Jerseys are no exception. On our Hoard’s Dairyman Farm, we certainly notice differences in personality and behavior between our Jerseys and Guernseys.

These breed differences are what led the American Jersey Cattle Association and National All Jersey Inc. to partner with university and industry experts to create a webinar series focused on the Jersey breed. One of their webinar topics was feeding the lactating cow, and the presenters were Bill Weiss and Maurice Eastridge from The Ohio State University.

The pair of professors pointed out that much of the research in the field of nutrition has been done on Holsteins. While many of these recommendations can fit other breeds, there are a few ways that Jerseys are unique. . .

 


Rural round-up

November 21, 2018

Big year for young viticulturist – Adam Burns:

The hard graft of the past year has paid off with two big industry awards for Bannockburn woman Annabel Bulk. Central Otago reporter Adam Burns talks to the viticulturist about the key ingredients to her success.

A semi-rural upbringing in Dunedin’s Pine Hill kindled Annabel Bulk’s love of the outdoors.

“My mum is an avid gardener.

“We were always encouraged to grow our own veges as a kid.”

That childhood introduction to horticulture is reaping rewards for Ms Bulk.

Last week the 30-year-old beat five other finalists to take out the New Zealand Young Horticulturist of the Year prize.

The award capped off a fruitful year for Ms Bulk. . . 

Huge’ frost could have been dire – Pam Jones:

Central Otago viticulturists and orchardists are feeling “positive” about the upcoming season and pleased to have “dodged a bullet”  recently in the form of  “once in a lifetime” frosts, horticulture leaders say.

Central Otago Winegrowers Association president James Dicey said a “huge and highly unusual” frost throughout Central Otago on October 13 could have been catastrophic but ended up causing “very little damage” to grapes.

Extremely dry air conditions at the time of the -5degC frost meant there was a “freeze” rather than a frost, Mr Dicey said.

The phenomenon had been “totally, 100% unheard of” for at least 60 years, but the unusual nature of the conditions meant there was very little damage and viticulturists had “dodged a bullet”, only losing about 5% to 10% of grapes overall, he said. . . 

Re-elected Fonterra director keen to restore trust – Angie Skerrett:

Newly re-elected Fonterra director Leonie Guiney wants to have New Zealand farmers “proud” of the company again.

She was voted back onto the board at the annual Fonterra AGM earlier this month after previously serving on the board from 2014 to 2017.

Ms Guiney is keen to see faith restored in Fonterra.

“Trust is everything in a co-operative, and it’s our responsibility at board level to ensure that Fonterra’s owners trust their leaders with their capital,” she told RadioLIVE’s Rural Exchange. . .

 

Wool prices are still falling – Alan Williams:

Wool prices fell sharply again, dampening the spectacle of the third annual live auction at the Agricultural Show in Christchurch on Thursday.

The crossbred market heads towards Christmas with a lot of concern about the international wool textile sector after earlier price falls in the North Island, PGG Wrightson’s South Island sales manager Dave Burridge said.

CP Wool auctioneer Roger Fuller didn’t want to sound too pessimistic but said the trend is quite concerning. . . 

Westland Milk Products seeks outside capital in bid to improve payouts – Heather Chalmers:

Despite low payout returns for the last three years, Westland Milk Products shareholder-supplier Stu Bland says he’s done the sums and wouldn’t be better off joining Fonterra. 

That’s even if he could, with many Westland Milk Products (WMP) suppliers tied to the co-operative because of their geographical isolation. 

At a payout of $6.07 a kilogram of milksolids after a five cent company retention for the 2017-18 season, Bland would have been $77,000 better off it he’d been supplying Fonterra or Synlait, who both paid 50 cents/kg more.   . . 

Death of disease still the aim – Annette Scott:

The Mycoplasma bovis response is focused squarely on phased eradication despite rumours to the contrary, Primary Industries Ministry M bovis response director Geoff Gwyn says.

“There’s some belief out there that MPI is preparing for long-term management – that is totally not the case at all.

“Many farmers are going through a challenging time with the M bovis outbreak and, unfortunately, their stress and anxiety is being compounded by some misinformation.”

Gwyn assures farmers the Government and industry partners remain highly committed to eradicating the cattle disease and early results from nationwide bulk milk testing indicate eradication is possible. . . 

Massive Canterbury irrigation scheme to transform region – for better or worse – Heather Chalmers:

Water is flowing through a huge new irrigation scheme on the Plains. But the water is so expensive farmers may turn away from dairy to more profitable crops. Heather Chalmers reports.

Travellers across the upper Central Canterbury plains in the last year will have noticed a quiet transformation of the landscape. 

Shelterbelts have been bowled and burnt and trenches dug across paddocks and roads. 

The biggest clue is the hulking metal spans emerging in paddocks as dozens of centre pivot irrigators are put together like giant Lego sets.   . . 

New biosecurity fines to be introduced:

Arriving vessels, transitional and containment facilities and cruise ship passengers will face new infringement offences for sloppy biosecurity practices that expose New Zealand to risk from harmful diseases and pests.

The new offences will introduce fines of $400 for individuals and $800 for other entities, such as companies, for low-level offending that is not significant enough to warrant prosecution, says Steve Gilbert, Border Clearance Services Director, Biosecurity New Zealand. . . 

Dairy farmers face squeeze:

Dairy farmers are getting a lower payout for milk but their costs are rising for goods and services like feed, fuel, and freight, Stats NZ said today.

The prices received by dairy farmers fell (4.8 percent) in the September 2018 quarter, due to a lower farm-gate milk price. In contrast, their costs rose (1.5 percent), mainly influenced by higher prices for animal feed, fuel, and freight.

“Dairy manufacturers paid less to buy raw milk in the latest quarter. They also received higher prices from our export markets and local customers,” business prices manager Sarah Johnson said.

It’s important to note there’s often a lag time between changes in costs and what businesses charge customers. . . 


Rural round-up

November 9, 2018

Fonterra board gets controversial voice back – Sally Rae:

Fairlie farmer Leonie Guiney has returned to the Fonterra board, vowing to solve the co-operative’s ”reputational issues”.

Shareholders voted to elect Mrs Guiney and Zespri chairman Peter McBride to the board and they will take office at the close of today’s annual meeting at Fonterra’s Lichfield plant in the Waikato.

Sitting director Ashley Waugh, Maori Television chairman Jamie Tuuta, and John Nicholls were unsuccessful.

Mrs Guiney, who farms near Fairlie and is director of four dairy farming companies, served on the board from 2014 until last year. . . 

Fonterra Shareholders’ Council report questions value-add strategy – Gerard Hutching:

Fonterra has failed to deliver “meaningful returns” on shareholders’ capital since inception in 2001, a new Shareholders Council report says, which questions the value-add strategy.

The much vaunted value-add business has returned only 0.2 per cent a year more than ingredients or commodities, “significantly below the 1.3 per cent a year premium needed to justify the increased risk”.

“This is important because the value-add business units are now using an increasing share of Fonterra’s capital. For the first five years since inception – 2002-06 – the value-add business accounted for 36 per cent of Fonterra’s capital. This has increased to 50 per cent of Fonterra’s capital over the last five years.” . . 

Reducing sediment loss explored at field days – Ella Stokes:

Sediment mitigation was a hot topic at the field days hosted by the Pomahaka Water Care Group last week.

The farmer-led group has an overall target of improving water health – first on farm and also in the Pomahaka River.

Last week, there were three field days held in the West Otago area to explore solutions to reduce sediment loss, which is a major issue in the area.

Landcare Research environmental scientist and Pomahaka Water Care Group (PWCG) co-ordinator Craig Simpson said they had up to 70 people at one of the events. . . 

Youngsters keep old-timers happy – Neal Wallace:

Transforming a run-down farm into a high performance stock unit was satisfying for Ron Davis and Roger Chittock but their greatest pleasure came from seeing youngsters trained on it go on to successful farming careers.

Chittock has spent 37 years and Davis 29 years on the management board of the Salvation Army’s Jeff Farm, a 2630ha sheep, beef and deer property between Clinton and Gore in eastern Southland.

But overseeing the development of the 30,000 stock units farm was only part of their enjoyment.

Jeff Farm’s primary role is to train youth for agricultural careers and the two retiring board members say seeing young people grow and move into industry jobs was immensely satisfying. . . 

Goats ready to earn their keep – Neal Wallace:

Three years ago David Shaw questioned why he was still farming Cashmere goats.

This month garments made from fibre harvested from goats on his south Otago farm will be on sale in a new Untouched World retail store opening in Wanaka.

Potentially, the resurrected cashmere market could take several tonnes of fibre and he believes having about 25,000 Cashmere goats is achievable.

He has 1000 goats on his farm and has readily identified 5000 on other farms that could be crossed with Cashmere bucks. . . 

The apparel industry has rediscovered the wool from corriedale sheep – Heather Chalmers:

Demand from sportswear and fashion companies is sending the price of a previously written-off type of wool to record levels.

This has led the dual-purpose corriedale sheep breed to make a comeback, after many farmers chose to shift to more meat breeds.    

Corriedale wool is in the mid-micron range, coarser than most merino fibre, but far finer than crossbred wool that comprises most of the New Zealand clip. . . 

Five new Nuffield scholars named :

Five Nuffield scholarships have been awarded for 2019. They have gone to two dairy farmers, a sheep and beef farmer, an arable farmer and an analyst.

Ben Hancock was raised on his family’s Wairarapa hill country sheep and beef cattle farm. He now works in Wellington for Beef + Lamb New Zealand as a senior analyst, still near the farm he often returns to.

After working in research and conservation roles in NZ, the United States and Panama Hancock did a doctorate investigating ecosystem services. . . 

 


Rural round-up

August 23, 2018

Calf rearer changes tactics after Mycoplasma bovis battle – Heather Chalmers:

Farmers who believe they can live with Mycoplasma bovis need to think again, say a Southland couple who are finally clear after eight months battling the bacterial cattle disease. 

Lumsden couple Ben Walling and Sarah Flintoft are now “gun-shy” of returning to their calf rearing business, knowing the risks involved. 

They had bought 1600 calves to rear last spring before being “clobbered” with M. bovis. Their farm was confirmed clear of infection by the Ministry for Primary Industries (MPI) in early August.  . . 

New research into animals that give off less nitrogen:

New research may hold the key to lowering our emissions, by breeding animals that naturally excrete less nitrogen.

Utilising the genes of animals that produce less nitrogen could provide farmers with a breakthrough in managing on-farm greenhouse gas emissions.

Two research projects are currently looking to see if there’s a link between the nitrogen content of milk and animal emissions and whether it’s possible to identify and then replicate genes in animals that might control how much nitrogen an animal gives off. . . 

A2 Milk shares rise 4.4% as company doubles down on US, Asia – Sophie Boot:

 (BusinessDesk) – A2 Milk’s shares rose 4.4 percent following the milk marketer’s annual results this morning, but are still well off record highs seen earlier this year.

The company more than doubled net profit to $195.7 million in the June 2018 year, as it widened margins and increased infant formula sales. Revenue rose 68 percent to $922.7 million and earnings before interest, tax, deprecation and amortisation also more than doubled to $283 million. A2 already gave that revenue figure last month, just beating its $900 million-to-$920 million forecast from May, and at the time said ebitda was about 30 percent of sales, implying a figure around $277 million. . .

Milking it: I spent a day on the farm and my nose may never recover – Anuja Nadkarni:

NZ is known for its dairy products, and is home to one of the biggest dairy companies in the world. In this Stuff special investigation, we examine how the price of milk is set and explore the industry behind our liquid asset.

I milked two cows last week.

A bog standard Auckland millennial, milked two cows in my jeans, puffer and rubber boots on a dairy farm.

Being the typical city slicker I am, for a moment I arrogantly thought to myself, “yeah, I could do this”.

Could I though? . . 

Sheepmeat and beef levies to increase:

Beef + Lamb New Zealand’s (B+LNZ) Board has decided to proceed with the proposed increase in the sheepmeat and beef levies following significant support from farmers.

From 1 October 2018 the levy for sheepmeat will increase 10 cents to 70 cents per head and the beef levy by 80 cents to $5.20 per head. This is 0.4 per cent of the average slaughter value for prime steer/heifer, 0.7 per cent cull dairy cow, 0.7 per cent of lamb, and 1.1 per cent of mutton over the last three years.

The additional levies will be invested in accelerating four key programmes: the international activation of the Taste Pure Nature origin brand and the Red Meat Story, helping the sector lift its environmental performance and reputation, telling the farmer story better, and strengthening B+LNZ’s capability to address biosecurity risks. . .

Comvita hones focus on biggest growth drivers as it seeks to bolster profits – Tina Morrison:

(BusinessDesk) – Comvita, New Zealand’s largest producer and marketer of honey and bee-related products, is reducing its risk and positioning itself for future growth by honing in on where it can get the most bang for its buck.

The company’s shares are the worst performer on the benchmark index this year after earnings were hurt by two consecutive years of poor honey harvests. Its honey supply business lost $6.2 million in operating profit in its 2018 financial year and $6.6 million in the 2017 year. . . 

Guy Trafford looks at what the future might hold for Lincoln University, and how consumer perceptions might change feedlot operations – Guy Trafford:

Lincoln University staff were called to a briefing on Tuesday this week from Chancellor Steve Smith and Acting Vice Chancellor Professor James McWha on what the future holds for the University.

For several years rumours and stories have been doing the rounds regarding Lincoln not helped by the issues surrounding the recently appointed and then moved-on Vice Chancellors.

The crux of the announcement revolved around the fact that Lincoln had signed a memorandum of understanding with University of Canterbury to form a joint future together. Considerable effort was spent reassuring staff that, whatever the future holds, Lincoln will retain its brand and culture and its autonomy to operate its multidiscipline programmes with their land-based programmes. . . 

Farmers protest California water plan aimed to save salmon :

Hundreds of California farmers rallied at the Capitol on Monday to protest state water officials’ proposal to increase water flows in a major California river, a move state and federal politicians called an overreach of power that would mean less water for farms in the Central Valley.

“If they vote to take our water, this does not end there,” said Republican state Sen. Anthony Cannella. “We will be in court for 100 years.”

Environmentalists and fishermen offered a different take on the other side of the Capitol to a much smaller audience. . . 

 


Rural round-up

August 13, 2018

Synlait Milk’s $2b man John Penno only wanted to be a farmer – Heather Chalmers:

John Penno says he only wanted to be a farmer; instead he set up a major export dairy company.   

On August 10, the Synlait Milk managing director officially stepped down after turning a bare paddock near Dunsandel in Central Canterbury into a multi-product company now worth $2 billion.

With a second $260 million nutritional powder manufacturing site at Pokeno, in north Waikato, set to start processing next year for the 2019-20 season, the company had much more growth to come, he said.   . . 

Lake Opuha holds out for last minute winter snow – Pat Deavoll:

It’s not just the ski fields looking for a late-season top-up of snow.

Opuha Water chief executive Andrew Mockford is hoping “mother nature will finish the winter with a flourish” and provide the much-needed snow to melt and fill irrigation reservoir Lake Opuha in South Canterbury.

There was less snow than usual this year and it was higher up the mountain, he said. . . 

 

Red meat sector confident despite some head winds – Allan Barber:

Since I attended the 2016 conference, having missed last year’s, several things have changed considerably: two years ago Donald Trump wasn’t President, Silver Fern Farms hadn’t concluded its capital raising with a Chinese investor, alternative proteins and non-meat burgers weren’t on the industry’s radar and there was little recognition of the need for a Red Meat Story.

This year the conference programme acknowledged these changes by focusing on disruption to global trade, the China influence, heightened consumer expectations, the effects of the digital revolution and the importance of building consumer trust by telling our story about product provenance, traceability and environmental credibility. The conference was very well attended by farmers, processors and service providers, all of whom were optimistic about meeting the challenges ahead of an industry which has faced many different threats to its survival in the past 140 years. . . 

Unyielding weather for European fruit and vegetable growers, how is the heat impacting crops?

Wrinkled tomato skins, curly cucumbers and small plums – these are some of the effects of drought on fruit and vegetables in Northern Europe. Exactly how great is the impact of heat and water shortages on crops, yields and growers in the region?

Hot and dry weather affects field crop farming the most, says Cindy van Rijswick, RaboResearch Fruit and Vegetable Analyst. “Yields are lower, but fruits and vegetables are also smaller in size and sometimes have quality issues. Because of the high temperatures or lack of water, growers have smaller plums, wrinkled tomatoes, and more misshapen cucumbers. In the coming months, the harvest of apples, pears and potatoes may potentially be smaller in size and yield too.” . . 

Agribusiness professional wins Future Leader role:

As a full-time rural valuer and part-time farmer George Macmillan has insights into many aspects of the agricultural industry.

Based in the Hawkes Bay, he lives close to his family’s 380ha sheep and beef farm south west of Hastings and has recently taken over the lease of a 50ha block. As a foot in the door towards land ownership, he will use the block to grow out the dairy cross beef calves he rears every year to heavier weights and will possibly finish a small number.

George, along with Northland farmer Mack Talbot Lynn, has been appointed a Beef + Lamb New Zealand Future Leader and will represent New Zealand at the International Beef Alliance conference in Canada in September. . .

For farmers, traumas tariffs are far worse than any bad trade deal – Bart Ruth:

As a candidate, Donald Trump promised to open new markets to trade, rein in regulatory overreach, cut government spending, and rebuild infrastructure and communication networks to enable rural America to compete in the global economy.

While there have been some positive changes under President Trump – when it comes to American agriculture, we are headed toward economic disaster.

As a sixth-generation farmer and a lifelong Republican, I am alarmed over the impacts that the administration’s actions are having on the agriculture economy and rural America. President Trump has shown a blatant disregard for international institutions, sound science, proven economic theory, and the history of protectionist policy. . .


Rural round-up

August 7, 2018

Wool gets revived as tide turns on synthetics’ pollution of the seas – Heather Chalmers:

A new wave of socially and environmentally-conscious consumers are turning to natural fibres for their clothing and homes, rejecting polluting synthetics and plastics.  

New Zealand wool companies are already tapping into this trend, promoting wool as a natural, biodegradable and renewable replacement.

But while momentum is growing, returns remain stubbornly low for the coarser end of New Zealand wool clip.   

While shoppers may think they have done their bit for the environment by ditching plastic bags, they are being advised to look at what they are wearing and how their house is carpeted, furnished and insulated.  . . 

 Wrightson shares jump 9.4% on plans to sell seeds unit for $439M; may distribute cash – Tina Morrison:

(BusinessDesk) – Shares in PGG Wrightson jumped as much as 9.4 percent after the country’s largest rural services business said it had agreed to sell its seed and grain business to Danish cooperative DLF Seeds for $421 million in cash and $18 of debt repayment, and signalled it may return up to $292 million to its shareholders.

The sale is above the $285 million book value of the seeds business and follows several expressions of interest received from international parties as part of a strategic review underway with Credit Suisse (Australia) and First NZ Capital. The Christchurch-based company expects to have a net cash balance of about $270 million following the sale and could distribute as much as $292 million to shareholders. . . 

A2 doubles stake in Synlait at 23% discount – Sophie Boot:

A2 Milk will buy another 8.2 percent of Synlait Milk, doubling its stake in the company.

The milk marketing firm will buy the shares at $10.90 apiece, down 2.3 percent from the NZX one month volume weighted average price of $11.16, for a total of $161.8 million. The shares will come from Tokyo-listed Mitsui & Co, a general trading company which invests across sectors and bought 8.4 percent of Synlait at the company’s initial public offering in 2013. . .

 

New Zealand red meat sector strongly opposes European Union and United Kingdom’s WTO quota proposal;

Beef + Lamb New Zealand and the Meat Industry Association strongly oppose the European Union (EU) and United Kingdom’s (UK) proposal to ‘split’ the EU’s World Trade Organisation (WTO) Tariff Rate Quotas between them.

The UK and EU have officially notified the WTO of their draft tariff schedules, which propose to split tariff rate quotas that allow access for New Zealand sheepmeat and beef exports. . .

Trade outlook still bright, but not without challenges – Allan Barber:

Vangelis Vitalis, Deputy Secretary for trade at MFAT and chief negotiator for the CPTPP due to take effect early next year, gave a very thorough and enthralling presentation on the trade landscape to the Red Meat Sector Conference in Napier on Monday.

Free trade and market access are a key area of interest to the New Zealand meat industry and the economy as a whole. Vitalis stated that three assumptions underpin New Zealand’s international trade negotiations: . . 

MPI sets the record straight with Forest & Bird:

Ministry For Primary Industries 2 August 2018 MPI is disappointed that Forest and Bird thinks it necessary to make inaccurate claims about combined efforts to prevent the spread of Kauri dieback.

Forest and Bird has advised MPI that it is closing off its reserves with wild kauri as a further measure to prevent the spread of kauri dieback, says Roger Smith, Head of Biosecurity New Zealand (a part of MPI). “We welcome all efforts to protect our kauri and have been working in partnership with a wide range of organisations to support their local efforts. . .

Tour leader found with fruit fly:

Fruit fly larvae carried by a tour party leader could have devastated New Zealand’s horticulture industry, says Biosecurity New Zealand.

Biosecurity officers intercepted the larvae last month in undeclared food with a holiday group from Malaysia at Auckland Airport, says Biosecurity New Zealand Passenger Manager, Craig Hughes.

The larvae was found in chillies following x-ray screening of the tour leader’s baggage. A caterpillar was also detected in some garlic bulbs carried with the undeclared food. . .

Rabobank Wine Quarterly Q3 2018: Status Quo Under Pressure in US Route-to-Market

The US has emerged as the largest wine market in the world, and by most measures, the most profitable and attractive. While wineries – both foreign and domestic – recognise the profit potential of the market, it is also widely seen as an exceptionally-difficult market to penetrate (particularly for small wineries), according to the latest RaboResearch Wine Quarterly report.

Route to the US consumer

Major changes are occurring today in how wine reaches the US consumer. “Changes in technology, business models and market structure are disrupting the global wine market and creating new sets of winners and losers among wholesalers, retailers and suppliers,” according to Stephen Rannekleiv, RaboResearch Global Strategist – Beverages. “Responding quickly to these changes will determine who survives, who thrives, and who fades away.” . .

Boy, 10, raises $60,000 in ‘Fiver for a farmer’ campaign – Shelley Ferguson:

More than $60,000 has been raised for drought-stricken farmers through a campaign started by children at a Sydney school last week.

Jack Berne, a grade four student at St John the Baptist Catholic School in Freshwater, was the instigator of “a fiver for a farmer”, and was inspired to help after learning about the struggles of those on the land in class.

Last week, Jack wrote a letter to media outlets as he tried to generate support for the cause after telling his mum that their teacher always tells them, “we can use our small and mighty voices” ..  . 


Rural round-up

August 2, 2018

Farmers seek off-farm income to counter rising costs – Heather Chalmers:

A farming leader says it is no surprise that farms are increasingly reliant on off-farm income.  

A Lincoln University survey has shown just over a quarter of farms obtained 30 per cent or more of their income from off-farm sources.

Farmers were struggling to keep up with the mainly inflation-caused price squeeze, the survey found. But the authors said some families found the rural lifestyle compensated for tight finances. . .

Dairy farm effluent compliance in Tasman District coming up roses – Cherie Sivignon:

Tasman district deputy mayor Tim King says the result of the 2017-18 dairy farm effluent compliance survey is a “good story all round”.

It revealed 90 of the 96 farms inspected were fully compliant for effluent management. The other six, graded non-compliant, comprised five with minor ponding and one that failed to adhere to setback rules.

In a report on the matter, council compliance and investigation officer Kat Bunting says all six instances of non-compliance were considered a minor breach of the rules that resulted in “no adverse environmental effect”.

Formal written warnings with directions for improvements were sent to those six farms and return visits found full and continued compliance. . .

Rabobank Global Dairy Top 20 – A Shuffling of the deck chairs:

Dairy price recovery in 2017 has positively affected the combined turnover of the top 20 global dairy companies, which, in 2017, was up 7.2% on the year in US dollar terms and 5.1% in euro terms, according to RaboResearch’s latest Global Dairy Top 20 – A Shuffling of the Deck Chairs report.

“For the second consecutive year, there were no new entrants to the Dairy Top 20 list, with the USD 5bn threshold difficult to achieve due to a scarcity of large acquisitions or mergers.” says Peter Paul Coppes, Senior Analyst – Dairy. “However, while the names have remained the same, the order shifted in 2017.” . . 

UK’s Daily Mail urges Theresa May to listen to Kiwi trade expert– Point of Order:

Brits who may be despairing at the lack of progress on Brexit, as Britain’s political class trade blows and the process becomes bogged down in politicking, have been told “there is a small corner of a government department that they can turn to for cheer”.

This is the office of New Zealand’s Crawford Falconer, Chief Trade Negotiation Adviser at the Department of International Trade, described by the Daily Mail as

“… a man of immense experience in such matters. And, in contrast to the doomsayers, his message about Brexit is one of almost unbounded optimism.”

 The article goes on to say: . .

Comvita touted as potential bidder for Manuka Health company – Tina Morrison:

(BusinessDesk) – Comvita, the NZX-listed manuka honey company, declined to comment on whether it is interested in making a bid for honey company Manuka Health New Zealand which has reportedly been put up for sale by its Australian owner Pacific Equity Partners.

The Australian newspaper suggested Comvita or its largest shareholder China Resources Ng Fung as possible buyers of Manuka Health, which was put on the market about six weeks ago for more than A$200 million by PEP and advisers Luminis Partners. Manuka Health was reportedly sold to the Australian private equity firm in 2015 for $110 million. . .

 

Inter-club challenge still going strong:

The last hurrah for the Canterbury dog trial season, the annual Inter-Club Challenge, was held at Waihi Station, home to the Geraldine Collie Club, on July 1.

The day turned from a ”rugged-up” winter’s morning to a balmy northwest afternoon.

The Canterbury Centre is one of the largest centres in New Zealand,comprising 18 club trials stretching from Cheviot in the north to Mackenzie in the east and Levels (Timaru area) in the south, encompassing all areas in between.

In its 25th year of competition, the trial attracted a strong gallery of spectators and team supporters from throughout the province, testament to the strength and popularity of the sport. . .

Strong interest expected with vacant governance roles on Ballance board:

 A “genuine and rare governance opportunity” has opened up with one of New Zealand’s industry-leading rural co-operatives with Ballance Agri-Nutrients announcing that two farmer-elected directors will be stepping down from its Board this year.

Ballance shareholders are currently being notified of the vacancies created by the decisions of Gray Baldwin not to seek re-election, and Donna Smit who is standing down in the North Island Ward (N). Murray Taggart is retiring by rotation (as required under the Co-operative’s Constitution) and seeking re-election in the South Island Ward (S). . .

MyFarm launches $17.6m Hop Garden investment

MyFarm has launched a $17.64 million investment into what will become New Zealand’s largest hop garden.

The opportunity to invest in Tapawera Hop Garden Limited Partnership includes the purchase of a 96-hectare property and the lease of a second 50-hectare property which will be developed into a 116 canopy (effective) hectare garden. Half of the garden will be planted this spring alongside other development such as building hop picking and drying facilities and worker accommodation. . . 


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