Rural round-up

May 3, 2019

In defence of the cooperative model – Andrea Fox:

Nearly two decades on from its creation, Fonterra is still handling about 80 per cent of all New Zealand raw milk. But is it time, as some critics say, to chop up this $20 billion beast and create a separate discretionary investment vehicle to chase the money needed to hit the high value, high earning branded consumer product markets? In the second part of her series, Andrea Fox runs the ruler over the cooperative model.

Fonterra’s architects got a lot of backs up when they side-stepped the Commerce Commission, claiming their plan for a super-cooperative to take on the world was beyond the competition watchdog’s scope.

Instead they went directly to the Beehive. The result was the DIRA, the Dairy Industry Restructuring Act 2001. It birthed a cooperative dairy industry mega-merger, deregulated dairy exporting and encouraged new manufacturing and export competition, while setting some onerous rules to rein in Fonterra’s market dominance at home. . . 

Opening the farm gate on Opening Weekend:

Federated Farmers reminds duck hunters heading out on Saturday for the season opening that access to farms is a privilege.

The ‘Opening Day’ of the duck-shooting season is a big deal in rural New Zealand, with 40,000 annual participants across the country. Hunters will pay their money to Fish and Game for a duck shooting licence but access is usually reliant on the goodwill of local farmers. Many hunters find themselves beside a wetland built and maintained on private farmland. Many of these arrangements are several generations old, established on a handshake.

“Farmers and visiting hunters alike look forward to the opening weekend of the duck-shooting season,’’ says Federated Farmers Environment spokesperson Chris Allen. . . 

Continuity assured as ‘fresh hands’ take over – Sally Rae:

Silver Fern Farms Co-operative’s new chairman, Richard Young, describes his tenure on the board as ”one hell of a ride”.

Incumbent chairman Rob Hewett announced he was stepping down from the role at the co-operative’s annual meeting in Dunedin yesterday.

However, Mr Hewett will remain on the co-operative’s board and continue as co-chairman of Silver Fern Farms Ltd, which is jointly owned by Silver Fern Farms Co-operative and Shanghai Maling.

It was part of a succession programme and while he would still be ”here for a while”, it was time for ”fresh hands”, Mr Hewett said. . .

Belief company ‘can do better’ – Sally Rae:

Silver Fern Farms chief executive Simon Limmer is confident of an improved financial performance in 2019.

Before Silver Fern Farms Co-operative’s annual meeting in Dunedin yesterday, Mr Limmer reflected on the 2018 financial year.

Silver Fern Farms Ltd is jointly owned by Silver Fern Farms Co-operative and Shanghai Maling. . . 

Scholarship winner passionate about precision agriculture:

Ravensdown are excited to announce this year’s recipient of the Hugh Williams Memorial Scholarship, Tom Wilson.

The Hugh Williams Memorial Scholarship was founded to commemorate the late Hugh Williams, a Ravensdown Director from 1987 to 2000. The scholarship provides $5,000 per year for the duration of a student’s agricultural or horticultural studies at Lincoln, Waikato or Massey University.

Currently in his third year at Massey University, Tom is studying his Bachelor of Agricultural Science. He is actively involved in the agricultural sector and presented his research on the feasibility of an updated Spreadmark test at the annual Fertiliser and Lime Research Centre conference in 2019. . . 

Real world ranch restorationMike Callicrate:

In late March, a fascinating group of forward-thinkers, innovators and change-makers converged at Callicrate Cattle Company for a ten-day intensive regenerative farm planning and design workshop led by Darren Doherty, a world recognized consultant and facilitator.

Owner Mike Callicrate met Doherty a few years ago on a business trip to Australia and immediately began a long-term collaboration with the native Australian, who is considered a leader worldwide at shifting farms and ranches from the current “extractive industrial model of production” to sounder approaches based on regenerating and rebuilding soils, landscapes, ecosystems and rural communities.

“I wanted to put together a systematic plan going forward that accomplishes our goals rather than just talking about it and never doing it,” Mike explained. “It’s a complex undertaking. It’s hard rebuilding a broken food system. It’s hard for a ranch even to stay in business without fair markets or a democratic food infrastructure that serves everyone equally.” . . 


Rural round-up

May 8, 2015

Moving on at Silver Fern Farms – Keith Woodford:

In recent weeks I have been analysing [here and here]  the GHD data that underpin the MIE recommendations for the meat industry. Those analyses confirm to me that MIE has missed the big picture.

The key MIE recommendation has been that companies must amalgamate, with the most important merger being between the two big co-operatives Silver Fern Farms and Alliance. However, Alliance has been consistent in their position, both before and since the MIE report, that the numbers needed to support an amalgamation do not stack up.

Alliance has taken considerable criticism from parts of the farming community for their lack of interest in joining Silver Fern Farms. Chairman Murray Taggart has been the front man and has had to bear the brunt of this. There are many sheep farmers who are struggling, and it is human nature to blame everyone else, even when financial logic says otherwise. . .

Slow rebalancing in global dairy markets weighs on prices, but turnaround beginning – Rabobank:

Recent decreases in international dairy prices and the 2014/15 milk price payout projection reflect the slow pace of the rebalancing that is taking place in global dairy markets, agribusiness banking specialist Rabobank said today.

Rabobank New Zealand CEO Ben Russell said the current market price forecast will negatively impact New Zealand dairy farmer cash flow and profitability across this season and next, but a turnaround in global dairy markets was beginning, with Rabobank maintaining its expectation of a price recovery to commence during the 2015-2016 season. . .

Synlait’s Akarola – Keith Woodford:

Synlait’s Akarola is about to transform China’s infant formula market. Fonterra’s new partner Beingmate, and all the other marketers of infant formula, are in for a huge shakeup.

On 25 March of this year I foreshadowed that infant formula prices in China were about to become much more competitive [here]. I based my report on information from dairy industry sources within China that New Hope Nutritionals – owned 75% by China’s New Hope and 25% by New Zealand’s Synlait – was about to launch a new brand of New Zealand- made infant formula called Akarola. I reported that the new brand would be sold exclusively online, at prices much less than half of normal prices in China.

A few days later New Hope Nutritionals launched their online campaign on JD.com ,and the foreshadowed price of 99 RMB for a 900 g per can was confirmed. In New Zealand dollars, this is about $21, or $16 in American dollars. . .

Scholarship, showing and study for Braydon – Kate Taylor:

BRAYDON SCHRODER was so tired from a week of working at the New Zealand Dairy Event he barely remembers his answers at the interview for Ravensdown’s annual Hugh Williams Memorial Scholarship.

He had left Feilding, flown to Christchurch for the meeting and then back to Feilding in time to show one of the family’s cows in the afternoon. But he was stoked to get the call the next day from Williams’ widow Adrienne to say he had been successful.

All in all, it was a successful week for Braydon – taking home the Youth Young Handlers title (16-19 years) and winning the youth team challenge at the Black and White Youth event. This is open to junior Holstein Friesian Association members.  . .

Ambassador brings new focus to threatened species:

New Zealand’s vulnerable native species will now have another strong voice for their protection with the announcement of the country’s first Threatened Species Ambassador.

Conservation Minister Maggie Barry says the high-profile new role will be pivotal in educating New Zealanders and raising awareness of our threatened species.

“We all need to know about the unique birds, animals and plants which are our taonga and understand the efforts needed to conserve them,” Ms Barry says. . .

New technology makes predator control easy – Gerard Hutching:

Conservationists might soon be able to know if a predator has been caught in a trap by simply checking their computer or smartphone.

Auckland civil engineer Simon Croft has developed wireless technology that attaches to traps and sends a signal to let people know if a predator has been caught.

The innovative traps will be first rolled out on farms in Hawke’s Bay, saving landowners from the time-consuming task of checking out individual traps.

Auckland civil engineer Croft said he had developed the technology “to make a difference”. . . .


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