Rural round-up

March 15, 2020

Drought, Covid-19 expected to slow primary sector export revenue – Maja Burry:

The Ministry for Primary Industries expects drought and Covid-19 coronavirus will slow the growth of primary sector export revenue.

MPI’s latest situation and outlook report forecasts primary sector revenue will rise 0.5 per cent in the year to June 2020 to $46.5 billion.

This forecast is $1.3 billion lower than the previous forecast published by MPI in December, with downward revisions to most sectors, particularly dairy, meat and wool, and forestry. . . 

Big Healthy Rivers changes mooted :

Widespread changes to the Healthy Rivers plan that will remove some of its more contentious elements have been recommended.

The hearings panel formed to consider submissions and recommend changes to the Waikato Regional Council has released its findings.

They want to scrap the requirement for all farmers to establish a nitrogen reference points (NRP). . . 

Horticulture’s growth is thanks to growers:

New Zealand horticulture’s steady growth of nearly three percent to more than $6 billion a year in export earnings1 is thanks to passionate growers, quality produce, and decades of investment, says Horticulture New Zealand. 

‘New Zealand’s growers are committed to the long-term future of the industry.  Their fruit and vegetables are the envy of the world, particularly with current concerns around health and wellbeing,’ says HortNZ Chief Executive, Mike Chapman. 

‘The industry’s steady growth reflects decades of investment in research and development in new varieties and efficient growing techniques.  Our growers know their stuff and are committed to doing the best for the environment as well as for the people they employ.  . .

 

A2 Milk expands North American footprint with licensing deal :

Speciality dairy company A2 Milk is expanding into Canada through a venture with the local co-operative Agrifoods.

A2 will give Agrifoods access to its intellectual property and marketing systems, as well as work with it to get the necessary milk from Canadian dairy farmers.

Chief growth and brand officer Susan Massasso said it was part of the company’s plans to expand its North American market. . .

20 sheep and beef finalists announced for the 2020 Ballance Farm Environment Awards:

This year’s Ballance Farm Environment Awards finalists have been announced and out of 50 finalists across 11 regions, 20 are sheep and beef farmers.

Run by the New Zealand Farm Environment Trust (NZFET), the Ballance Farm Environment Awards (BFEA) celebrate good farm practices and promote sustainable land management.

Category award winners and the supreme winners will be announced at an Awards dinner in each region, starting with the East Coast on 4 March. Find more details and a full list of the finalists on NZFET’s website. . . 

David and Prue Bondfield step back from daily Palgrove operations :

LIVESTOCK industry champions David and Prue Bondfield are stepping back from daily operations at Palgrove, with both to remain as directors of the large scale genetics company.

The decision follows the development of Palgrove as one of the largest seedstock and commercial producers in Australia, with significant land assets across Queensland and NSW.

Mr Bondfield said well-planned business succession was critical to the success of an innovative enterprise like Palgrove. . .


Rural round-up

December 14, 2019

RSE scheme ‘transformed’ the NZ fruit growing industry – Eva Corlett:

Millions of dollars worth of New Zealand fruit and grapes were at risk of rotting on the branch due to a shortage of local pickers. So a visionary group of Central Otago growers took a chance on guest workers from the Pacific, who also took a chance on them.

In the early 2000s the orchards and vineyards of central Otago were heavy with fruit. Peaches, cherries and grapes were ready to be plucked, boxed and shipped all over the world. But there was a problem. There weren’t enough people to pick them. 

Hiring backpackers and students on holiday was the usual practice, but it was risky, James Dicey, the man behind Mt Difficulty wines says.  . .

Rick’s Beef – world first tool to slow methane :

In a world first, New Zealand sheep farmers now have the ability to breed animals that emit less methane.

Beef + Lamb New Zealand (B+LNZ) Genetics has launched a “methane research breeding value”. Breeding value (BV) is used to help select important traits ram breeders want to bolster in their flock, such as low methane-producing animals.

The launching of this significant breeding tool is thanks to a 10-year, multimillion-dollar collaboration between the Pastoral Greenhouse Gas Research Consortium, New Zealand Agricultural Greenhouse Gas Research Centre and AgResearch, supported by the Ministry of Business, Innovation and Employment and Ministry for Primary Industries. . .

Feds happy to see recognition for the future of farming:

The government’s launch today of a strategy for the future of farming will encourage farmers to continue with the work they are already doing, constantly focusing on improving their farming operations, Federated Farmers says.

It is particularly pleasing to see the focus in the Primary Sector Council’s vision on the need to develop a mindset that embraces science, technology, research and development, Federated Farmers president Katie Milne says.

“I was also pleased to see the focus on infrastructure in here. . . 

Horticulture New Zealand welcomes the Primary Sector Council’s unification vision

Horticulture New Zealand says the Primary Sector Council’s vision to align the food and fibre sector is the right one, because it will enable the sector and the Government to respond collectively to current and future challenges.

‘This is right for our sector as only by working together, will we respond successfully to consumer and government requirements,’ says HortNZ President, Barry O’Neil.

‘Consumers across the world are more and more interested in knowing exactly how the food they eat has been grown, harvested and transported. They also want to know that the environment has been well looked after, as have the people that have been involved in producing the food. . . 

Council funding recommendations deserve action – Feds says:

Some worthwhile recommendations but ultimately underwhelming is Federated Farmers’ summary of the Productivity Commission’s final report on local government funding and financing.

“On the whole, the inquiry and the final report don’t move the dial much on local government funding issues and will provide little comfort for long-suffering ratepayers, especially farmers who pay a disproportionate share of the burden,” Feds President and local government spokesperson Katie Milne says.

“It looks like we’ll be sticking with over-reliance on a property-value based rating system that for farmers in particular can have no correlation to services used or cost-sharing fairness.  And of course the Commission was never going to find an answer to councils that don’t exercise financial discipline and hike rates well ahead of inflation.” . . 

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Rural round-up

November 29, 2019

Rates performance nothing to raise a glass to, Feds says:

It’s pretty telling when your cost hikes outrun even those of booze and cigarettes.

Council rates and fees outstripped every other consumer price index cost group between 2000 and 2019, the Federated Farmers 2019 Rates Report shows.

“It’s pretty much expected that prices of alcohol and tobacco products shoot up, especially with regular government tax increases, and indeed they jumped 120% in the last two decades,” Feds President and local government spokesperson Katie Milne says.

“But local authorities left them for dead, hiking their costs more than 170% – more than three times the CPI for all cost groups in New Zealand.” . .

Plenty promulgating prejudiced assumptions about farmers – Anna Campbell:

Recently, I was called out for frightening ‘‘mum and dad farmers’’ when I wrote about the threat of cellular agriculture and alternate proteins to agricultural products.

I think anyone in business should be aware of threats and New Zealand farmers have a track record of adjusting to markets as they need to, so I’m OK with being called out, but I did feel uncomfortable with the term ‘‘mum and dad farmers’’. What does that mean?

The majority of farms, including those run by families, are multimillion-dollar enterprises with complex cash-flows — romantic as farming can look, producing food for export is no cottage industry.

OK Anna, don’t get caught up on semantics, but it was not long after that I read an ODT interview with the new Otago Regional Council chairwoman, Marian Hobbs (October 29), here is an excerpt from the article: ‘‘she had problems with the growing number of huge farms owned by large landowners and corporations farmed by others ‘‘I wonder if they have the same love for the land, but that may be a prejudice I have to sort out.’’

Yes, that prejudice does need to be sorted out. Implying corporate farmers won’t care for the environment is presumptuous.  . . 

NZ lamb industry unfazed as British supermarket Waitrose ends imports :

Plans for the British supermarket Waitrose to phase out the importation of New Zealand lamb are disappointing but do not spell trouble for the sector, the meat industry says.

Having previously sourced lamb from New Zealand during the UK’s winter months, Waitrose announced this week it will aim to complete the move to 100 percent British lamb in 2021.

A Waitrose spokesperson, Tor Harris, said it showed the company’s commitment to British farmers and to the future of agriculture inside Britain. . . 

Dairy farmers producing more milk from fewer cows, latest ‘cow census’ shows:

The latest New Zealand Dairy Statistics released today by DairyNZ and Livestock Improvement Corporation (LIC) reveal farmers’ focus on productivity and efficiency is paying off with milk production increasing despite cow numbers stabilising.

The 2018-19 cow census shows that total cow numbers have remained relatively stable, but the cows we do have are producing more milk than ever before.

New Zealand reached record milk production per herd and per cow this year, with dairy companies processing 21.2 billion litres of milk containing 1.88 billion kilograms of milk solids – both up 2.4% on the previous season. . .

Future proofing vegetable growing in Pukekohe:

More than 50 people are finding more about how to manage vegetable growing in Pukekohe in a changing regulatory environment, thanks to Horticulture New Zealand, Vegetables New Zealand, Potatoes New Zealand, Onions New Zealand and the Pukekohe Vegetable Growers’ Association.

‘Growers, their advisers, fertiliser companies, and Auckland Council attended our first workshop,’ says Horticulture New Zealand Sustainability and Extension Manager, Ailsa Robertson.

‘It’s great to get everyone in the same room as a step towards getting everyone on the same page.  Our thanks to Pukekohe Vegetable Growers’ Association Acting President, Kylie Faulkner for helping get the workshops off the ground. . . 

New members join Sustainable Food and Fibre Futures Investment Advisory Panel:

Lucy Griffiths of Masterton and Anne-Marie Broughton of Whanganui have been appointed to the independent Investment Advisory Panel (IAP) for Sustainable Food and Fibre Futures (SFF Futures).

With $40 million available each year from the Ministry for Primary Industries (MPI), SFF Futures supports problem-solving and innovation in New Zealand’s food and fibre industries that will make a positive and lasting difference. It offers a single gateway to apply for investment, and provides grants of less than $100,000, right up to multi-million dollar, multi-year partnerships. . .


Rural round-up

November 17, 2019

Under the sacred mountain

East Cape farmers Rob and Mary Andrews appreciate the opportunities they have been given by people who they have worked for in the past and they enjoy returning the favour to others, as Colin Williscroft discovered.

As the first place in the world to see the sun as it rises every day Mount Hikurangi is on a few bucket lists.

But few people venture to Pakihiroa Farms, about 20km inland from Ruatoria, where Rob and Mary Andrews live and work and which includes the mountain in its boundaries.

The farm is in an isolated spot in a part of the country that does not attract a lot of passing traffic, given it’s not on the way for most New Zealanders.  . . 

Busy gets busier – Cheyenne Nicholson:

An artificial insemination run is just one of many things a West Coast farmer has up her sleeve to generate extra income for the farm. Cheyenne Nicholson reports. 

RUNNING an Airbnb, milking 140 cows and raising two small children keep Hokitika 50:50 sharemilkers Thomas and Hannah Oats busy.

And if that isn’t enough, Hannah, in a bid expand her skills, to benefit their own business and generate some extra income has trained and qualified to become an artificial insemination technician. . . 

Cherry on top for station’s returns :

Twelve hectares of cherry trees planted in September at Mt Pisa Station, Central Otago complete the first stage of a $15.5 million cherry project by the horticultural investment firm Hortinvest.

Mt Pisa Station’s landowners, the MacMillan family, are among the investors who underwrote the planting. The sheep and beef business has set aside 80ha of prime pastoral land for the venture as it diversifies into horticulture.

The orchard will produce cherries for export from the summer of 2021-2022. . . 

Hort export figures challenged – Pam Tipa:

Horticulture’s export revenue growth is likely to be about 10% in the current financial year – not the 3.8% forecast by the Ministry for Primary Industries.

Horticulture NZ (HortNZ) chief executive Mike Chapman says he doesn’t know where MPI got its figure in the Situation and Outlook report for Primary Industries.

Growth for horticulture was 13.7% in the year ended June 2019 in the September updated report. But it is forecast to be down to 3.8% in the current year.

HortNZ has asked how MPI arrived at that forecast because the report doesn’t say. . . 

Growth, exports recognised – Luisa Girao:

An Invercargill Blue River Dairy manager believes the company is changing the face of the New Zealand dairy industry and recent recognition adds support to such a view.

Earlier this week, the Southland-based company received awards for fastest-growing manufacturing business and fastest-growing exporter at the Deloitte Fast 50 Awards, held in Auckland, which ranks the country’s fastest-growing businesses.

The company was also announced as the fifth-fastest-growing business overall. . . 

People keep stealing hemp from US farms, thinking it’s weed – Jason Nark:

People see the serrated leaves and the fuzzy buds from afar, but it’s the familiar smell wafting over the field that seals the deal.

They pack a not-so-brilliant idea into their heads and scramble to yank the hardy plants right from the soil. Back home, they light up and sit sober in the smoke, writing off their heist as a bunch of dank weed.

Hemp resembles marijuana, its much more psychoactive cousin, in just about every way except one: It probably won’t get you high. People in the US state of Pennsylvania caught stealing hemp still haven’t figured that out. . . 


Working with better than against

October 25, 2019

The government has seen sense and is accepting the primary sector’s proposal on agricultural emissions.

The agreement means agriculture will not join the Emissions Trading Scheme but instead work with the Government to reduce emissions.

There will be no processor levy from 2020 to 2025 as initially proposed but farmers and growers will have to implement farm plans and calculate their emissions and offsets at the farmgate from 2025.

A processor level would have penalised more efficient farmers and given no-one an incentive to improve.

Such a tax would have taken money from farmers, leaving them with less to invest in on-farm solutions.

Progress will be reviewed in 2022 and if the Government is unhappy it will revert to the original legislation.

That threat will hang over the sector but at least there’s breathing space.

We are pleased that the Government has recognised that it does not make sense to bring agriculture into the ETS and that we have a pathway to work with the Government to develop a more appropriate framework,” the sector said in a joint statement.

“We welcome this pragmatic and sensible decision by the Government to work in partnership with industry to achieve tangible on-farm change and hope that it might provide a blueprint for the way we work together to solve environmental challenges in the future.”

Would it be too much to hope a similar approach could be taken to water policy?

The 11-member primary sector group has committed $25m over five years to achieve these goals.

That group is Apiculture NZ, Beef + Lamb, DairyNZ, Dairy Companies Association, Deer Industry NZ, Federation of Maori Authorities, Foundation for Arable Research, Federated Farmers, Horticulture NZ, Irrigation NZ and the Meat Industry Association. . .

This shows the importance of unity and what can be achieved when working together.

It also shows the sense of government working with the sector instead of trying to impose impossible goals on it.

Federated Farmers’ response is here.

DairyNZ’s response is here.

 


Deliberate or ignorant?

September 10, 2019

The government’s Action for healthy waterways has a lot to say about farming but was developed without any input from the industry groups like Beef + Lamb NZ, DairyNZ,  Deer Industry NZ, Federated Farmers and  Horticulture NZ.

It proposes new requirements that would:

  • strengthen Te Mana o Te Wai as the framework for freshwater management
  • better provide for ecosystem health (water, fish and plant life)
  • better protect wetlands and estuaries
  • better manage stormwater and wastewater, and protect sources of drinking water
  • control high-risk farming activities and limit agricultural intensification
  • improve farm management practices.

Eric Crampton points out that proposals could bankrupt some farmers.

 . . .Let’s step back and consider why strict targets without compensation are likely to cause a lot of bankruptcies. 

Farm purchases and dairy conversions are often heavily leveraged. Farmers will have borrowed to purchase the land and to put in the infrastructure improvements for irrigation and dairying. The selling price of the land, and the amounts that banks have been willing to lend, reflect the expected return that comes from the business. 

That return builds in certain expectations of the regulatory environment. 

Farmers have never had to pay for water directly. The value of water instead is reflected in the value of an irrigation consent tied to a piece of land. Research done earlier this decade suggested that land with an irrigation consent traded for up to fifty per cent more than comparable land without a consent. In other words, the value of the water was already incorporated into the selling price of the land. And that value will not have gone down over the intervening years.

A big change in the regulatory environment around water abstraction, or around allowable nutrient runoff or on-farm practices, would substantially change the cost calculus for already heavily leveraged farms. Costs go up, returns go down, and net cash flow is insufficient to pay the mortgage. Hello, bankruptcy. . . 

This isn’t fear-mongering.

The proposals are as drastic as the changes that precipitated the ag-sag of the 1980s.

Farmers are very aware of the costs and risks to their businesses. The government appears not to be worried about that, but have they taken into account the huge economic hit the country would take with the huge fall in production, and therefore export-earnings?

The paper was launched last week, consultation meetings have started, mostly in cities, and people have only six weeks to submit.

That is a very short time for people to read, absorb, reflect and respond let alone right in the middle of lambing and calving, the busiest time of the year for dairy, beef and sheep farms.

Is the timing deliberate or are those behind it simply ignorant of the demands placed on farmers in spring?

A cynic might think they know but don’t care.

The goal of clean water is one no-one should argue against but the government would have a much better chance of reaching it, without a huge economic and social cost, if it worked with farmers and their industry groups, and gave more time for them to come up with practical solutions.

 


Rural round-up

August 6, 2019

We’re on board but don’t kill the cash cow – Dr TIm Mackle:

Dairy farmers in New Zealand are world leading producers of low emissions milk, writes Tim Mackle, chief executive of DairyNZ.

We have a reputation for sustainability and we want to keep it that way. While we are committed to playing our part in the transition to a low emissions economy – alongside the rest of NZ – it must be done fairly and consider the science as well as the economic impacts.

There is more in the Zero Carbon Bill that we agree with than we disagree with, but we have serious reservations about the Government’s proposed 2050 methane reduction target of 24 – 47%.  . . 

Don’t sacrifice science for ideology – Jacqueline Rowarth:

Contrary to recent suggestions in the media, there is very little credible research supporting the success of homeopathic treatment of mastitis in dairy cows.

In fact, reviews published recently covering research since 1970 concluded that ‘homeopathic treatments are not efficient for management of clinical mastitis’. A second review covering research since 1981 concluded that ‘the use of homeopathy currently cannot claim to have sufficient prognostic validity where efficacy is concerned’. 

In plain English, if you want to cure your cow, use the antibiotics which have been the subject of rigorous research and been shown to reduce infection. And, of course, suffering. . . 

DairyNZ director Ben Allomes calls it a day :

DairyNZ director Ben Allomes will step down from the industry good body’s board this October.

One of DairyNZ’s Board of Directors for eight years, Mr Allomes was elected by dairy farmer levy payers in 2011, as one of five farmer-elected directors. Since then, the Woodville-based dairy farmer has played a key role contributing to the governance of DairyNZ and provided key support around a range issues, in particular around people and talent.

DairyNZ chair Jim van der Poel credits Ben for his contribution to the board and his tireless advocacy for dairy farmers. . . 

The Innovative farmer: Generating innovation through a farmer and grower-led system of innovation – Matt Hocken:

Executive Summary

The genesis for my Nuffield Scholarship research was a sense that farmers and growers have a number of significant challenges or problems, both on-farm and off that have not been solved, or we are struggling to solve. As we milk, shear, tend and harvest, thousands of farmer and grower-minds around the country turn to these problems and to the dreams we have for the future. We think about our immediate problems, like how much grass have I got to feed my animals, or do I have a water leak?

We think about system problems, like how will I reduce my nutrient use, or what is my environmental footprint? We think about the tough problems like changing consumer preferences, or heightened society expectations and how can we reconcile these. Collectively we think and dream of a hundred thousand ideas. At the moment very little happens with many of these ideas. I want to change that. . .

Food chandeliers highlight grower’s gathering – Gerald Piddock:

Grabbing the low hanging fruit took on a new meaning at Horticulture New Zealand’s annual conference at Mystery Creek.

Decorating the main conference are four chandeliers covered with fruit and vegetables, providing a colourful reminder to growers of their contribution to feeding the New Zealanders.

The chandeliers – each weighing an estimated 200-500kg – contained 250-300 pieces of fruit or vegetables held together by cable ties or hooks similar to those used by butchers to keep the produce in place. . . 

‘Environmental misinformation is damaging British beef market’, Yorkshire farming leader says – Ben Barnett:

Inaccurate portrayals of livestock’s environmental role risk turning off shoppers from buying red meat at a time when British beef offers the best value for money, a farming leader has warned.

Amid the lowest farmgate prices for beef cattle in years due to a market oversupply, some retailers are offering price promotions on premium cuts.

Nonetheless, North Yorkshire farmer Richard Findlay said a culture of misinformation about the impact of livestock on the environment means consumers could spurn the chance to support British beef at a critical time for farm businesses. . . 


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