Rural round-up

January 19, 2015

Water not just a pipe dream – Tim Fulton:

The latest Canterbury drought is reinforcing a message in farming: irrigation is valuable, stored supply is better and an alpine water source is best of all. TIM FULTON reports.

When the norwesters keep blowing rain on the Southern Alps and drying out the plains, even irrigators with the most advanced water networks can feel anxious.

Farmer shareholders on the $115 million Rangitata South irrigation scheme are facing tight storage conditions, even though they have access to periodic floodwater.

The network has been “just squeaking along with a rain here, a little fresh there” since it started supplying last spring, chairman Ian Morten says.

More water cannot be delivered from the main pond to farms on the scheme until the Rangitata River flows at 110 cubic metres. . .

Drought fears grow as dry spell continues:

Primary Industries Minister Nathan Guy is expected to visit the parched South Canterbury area in the next few weeks as concern mounts that it and some other regions may be heading for a serious drought.

The Ministry for Primary Industries is monitoring the conditions in South Canterbury, as well as North Otago, Wairarapa and southern Hawke’s Bay.

MPI director of resource policy David Wansbrough said it had been talking with farmers and rural support trusts on a weekly basis.

However, he said farmers and communities appeared to be coping so far and the Government was not planning to step in with any support measures at this stage. . .

Drought!!!? – Gravedodger:

Drought is widely regarded in agricultural terms as a prolonged period of low rainfall when pastures and crops become seriously degraded by dehydration.

Yes last spring was one of low precipitation in many districts and having traveled the East coast from North Otago to The Bay of Plenty in the last 50 days there are now pockets with fodder insufficiency from “The Dry” but drought it aint.

Large Parts of Australia have been in that situation for several years and many rural properties are in a savage drought. With livestock having lost a serious degree of body weight, water supplies gone burger and absolutely zero opportunity to remove stock as buyers do not exist, increasing numbers of Aussie Farmers are taking their lives as despair overcomes their will to continue. . .

Big dry affects dairy production – Dene Mackenzie:

Dairy production is likely to slow below previous forecasts as parts of Canterbury and Otago dry off and water restrictions kick in, ASB rural economist Nathan Penny says.

”As we get further into the New Zealand summer, attention is turning to agricultural production. In the case of dairy, production has been good to date this season – albeit uneven across the regions.” . . .

Storage gives power to farmers – William C. Bailey:

United States corn and soybean farmers have a clear understanding that bad markets and low prices will reverse themselves to good times, just as good times will, eventually, fade into bad times.

The challenge, when these high or low points appear, is to prepare for the phase that will follow.

US corn and soybean farmers have enjoyed, over the past three to five seasons, really, really good prices. . .

 Sheep help drive tribe’s farm performance:

Ngati Porou has turned around its farming fortunes, reporting a surplus of $324,000 in its last financial year.

The figure compares to the previous period’s deficit of $1.46 million.

The Tairawhiti tribe said performance of its sheep division had improved, with sheep values and prices increasing.

Ngati Porou also said its lamb crop nearly doubled over two years, reaching 12,224 last year. . .

Rural gig good for peace-lovers – Steve Wyn-Harris:

Possibly every generation throughout history reckons things are getting worse and we are all going to hell in a hand basket.

That’s a little how I’m feeling at the moment.

However, there are great things happening here at the beginning of the 21st century which we should be grateful for.

For much of the world’s population improved healthcare and better food have led to the longest life expectancy humans have ever experienced. . .

 


Grain Price Rises Pushes Food Prices Up

July 12, 2008

Good news for producers is bad news for consumers because rising international prices for grain will push domestic food prices up again.

Bread prices are predicted to rise 10c a loaf and pork and bacon prices $2 to $3 a kg.

Food producers face new grain contracts – $100 a tonne, or 30%, higher than last year.

Farmers say contracts for next season’s harvest, which are about to be signed, reflected those higher prices.

Pig and poultry producers say price rises are inevitable to cover higher feed costs.

Foodstuffs (South Island) chief executive Steve Anderson agrees, and warns costs will continue to increase across the board.

He could not quantify the size of any increase, saying that was up to suppliers, but he doubted there would be any price correction in the immediate future.

“We’re not planning on seeing a reduction in commodity prices in general.”

The price for meat and wool is also driven by the price of grain and that in turn is driven by the price of energy. The combined shortage of food and high fuel prices will push the price of all food up.

Grain prices were so volatile, milling wheat growers were not signing contracts at $500 a tonne, claiming the price was still $100 a tonne below the international price and higher-yielding feed wheat.

“It is a rising market. On a falling market, everyone would be signing,” Federated Farmers grains council chairman Ian Morten said.

Demand from dairy farmers had also driven up cereal prices. Growers have been encouraged to plant higher-yielding feed varieties instead of milling wheat, which gave them leverage against the mills.

Grain growers had this year resumed exporting to take advantage of higher international spot prices, something they had not done for many years, which reduced the availability of domestically-grown cereals.

On top of this is the competition for land from the misguided policy which changes land use from producing food for people to the production of fuel for vehicles.

Farmers and food producers also blamed Solid Energy for higher prices, as it has contracted 5000ha of predominantly cropping land to grow oilseed rape for biodiesel production this year.

Solid Energy plans to increase that production to between 20,000ha and 25,000ha within three years.

Mainland Poultry chief executive Michael Guthrie said international issues had driven grain prices up 80% for his egg business in the past 18 months.

Drought in Australia had decimated world grain production; there had been floods and biofuel production in the United States; growing demand for grain from China and India; low world grain stocks; and dairying had taken over cropping land in New Zealand.

Mr Guthrie said egg prices had been stable for the past two years. He expected prices to rise, but could not say by how much.

Pork Industry Board chairman Chris Trengrove said New Zealand was six months behind the rest of the world on feeling the impact of higher grain prices.

Pork and bacon prices would need to increase about $1 a kg to the farmer to cover rising costs, which translated to between $2 to $3 a kg to the consumer.

Production and transport costs are also rising for fruit and vegetables and that too will impact on retail prices.

Repeated competition from rabbits persuaded me to abandon my vegetable garden but now it has been securely fenced this seems like a good time to get it ready for spring planting.


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