Rural round-up

February 20, 2019

Fonterra wants many DIRA changes – Hugh Stringleman:

Fonterra wants to ditch the requirement for it to take all milk if its market share drops below 75% in a region.

It also wants to exclude big processors except Goodman Fielder from accessing its milk at the regulated raw milk price.

Instead it wants to introduce a 12c/kg handling fee, it says in its submission to the Primary Industries Ministry’s review of the Dairy Industry Restructuring Act.

All other processors should be required to publish their average milk price paid to farmers and details of how they set it, Fonterra said.

DIRA should evolve to cover the whole dairy industry and not just control Fonterra. . . 

Otago young farmers lay claim to two titles – Sally Rae:

Otago can lay claim to three new national champions – all in the rural sector. Luke Kane (30) and Isaac Johnston (25), from West Otago, won the national fencing competition held recently as part of the New Zealand Young Farmers conference.

Elizabeth Graham (21), who lives on her parents’ farm at Hindon, won the national stock-judging title. . .

Duck eggs hatch into growing business – Luke Chivers:

Taranaki duck farmers Dawn and Glen Bendall are earning a living out of making people, including themselves, healthier. Luke Chivers reports. 

It is 7.30am in deepest, darkest winter.

As daylight breaks on mountainous, coastal Taranaki Urenui duck farmer Dawn Bendall is preparing her children for school before fossicking around in wood shavings up to 25 centimetres deep to retrieve 400 eggs.

“The ducks will dig up, they’ll lay and then they will cover the egg up again.

“It’s their little way of not letting the vermin get to the egg so I don’t know what they think of me,” she says, laughing. . . 

Riparian planting cleans Waikato dairy farm river – Hunter Calder:

From above it looks like any other river.

But up close, the Marokopa River through Ruawai Farm in Te Anga is exceptionally clear.

Data collected by Waikato Regional Council shows the water quality is some of the best in the region.

The river rates particularly highly for macroinvertebrates – tiny creatures without backbones such as insects and worms. The more of those, the healthier the water. . . 

Bounce in deer numbers :

Farmed deer numbers, including the number of breeding hinds and fawns, increased in 2018 according to provisional agriculture census figures released by Statistics New Zealand.

This follows a small recovery in stag numbers in the 2017 census.

Deer Industry NZ (DINZ) chief executive Dan Coup says the trend is a strong indication of growing farmer confidence in the viability of deer in a drystock farming operation. . . 

Wrightson cleared to sell seeds business – Gavin Evans

(BusinessDesk) – PGG Wrightson has been cleared to sell its seeds business to Denmark’s DLF Seeds.

The Commerce Commission said the $434 million transaction, announced in August, was unlikely to substantially reduce competition in any of the markets it assessed.

DLF is not at present a close competitor of PGG Wrightson Seeds in respect of ryegrass seeds containing endophytes and is unlikely to be so in the future,” deputy chair Sue Begg said. . .

Trade deals with Africa would help continent grow – Marian L. Tupy :

In December 2018, Donald Trump approved a new strategy for Africa that includes increasing US commercial ties with the continent. According to the Wall Street Journal, Trump’s strategy “is part of a broader effort…to fight for global supremacy with Russia and China”. Geopolitical considerations aside, freer trade between the United States and Africa makes good economic sense that’s bound to become more obvious over time.

Today, the economy of sub-Saharan Africa (SSA) is small, accounting for some 2 per cent of global Gross Domestic Product (GDP). Between 1960 and 2017, SSA GDP grew from $252 billion to $1.75 trillion. The world economy grew from $11.3 trillion to $80 trillion (all figures are in 2010 US dollars). That amounts to an average annual compounded growth rate of about 3.4 per cent and 3.43 per cent respectively.

The United Nations estimates that over the next 50 years, the SSA and world populations will grow at average compounded annual rates of 2.05 per cent and 0.63 per cent respectively. SSA’s population will thus increase from 1.1 billion to 3.1 billion and the world’s population will increase from 7.7 billion to 10.6 billion. That means that SSA will account for roughly 30 per cent of the world’s population in 2070. . . 

Trace elements a solution close to home :

Despite New Zealand’s relatively benign climate lending itself so well to pastoral farming, its soils can hide some chronic mineral deficiencies that can undo the efforts of the best farm managers as they try to get the most out of their stock.

Richard Sides, Boehringer Ingelheim Animal Health NZ technical veterinarian is urging farmers to look harder at what may be holding their stock’s performance back, and says the answer may be easier to find than they first thought. . . 


Rural round-up

February 10, 2019

Collars corral cattle

Farm fences could be history as an Otago farm tests some cattle collars with a difference.

State-owned enterprise Landcorp owns two farms in the Waipori area, both of which have land bordering Lake Mahinerangi.

However, it faces the problem of fencing hundreds of kilometres to stop stock entering waterways.

As a potential solution, this week it started a two-month trial, run by AgResearch, to test virtual fencing technology. . . 

Dairy debt an outcome of wayward policy and land-banking – Keith Woodford:

In a recent article, I wrote that high debt levels within the dairy industry will constrain the industry transformation that needs to occur.  Subsequently, I have been exploring how the industry got itself such a debt-laden pickle. Here is what I found.

Despite the industry now being well into the third season of good milk prices, dairy-farm debt with banks has been showing no sign of decreasing. The latest figures for December 2018 show total dairy-farm bank debt of $41.6 billion (RBNZ S34 series). This compares to $41.0 billion a year earlier and $40.9 billion two years earlier.  This equates to around $22.00 per kg milksolids (fat plus protein). . . 

Farmer urges young people to take up career in fencing :

Isaac Johnston wants more young people to consider fencing as a career option.

Johnston, a member of the West Otago Young Farmers took out a national fencing competition in Christchurch, along with Luke Kane.

Kane, 30 (also a West Otago YF member), and Johnston, 25, won the PGG Wrightson Fencing Competition, which was held as part of the AGMARDT NZ Young Farmers Conference. . . 

The British obsession with food production vs obesity and climate may hurt their local producers and help NZ farmers. Saputo shakes things up. China infant formula market changes – Guy Traffod:

The Lancet continues to challenge the status quo around food production. This time in its recent report it says “unhealthy subsidies” in agriculture are costly and do enormous harm to developing country farmers and agriculture-based development policies.

Most New Zealand farmers would be happy to support this attitude. However the Irish have taken exception to the report particularly when it compares “big farming” to the tobacco industry and not only should it not receive subsidies, but it should be banned from being able to lobby and engaging with governments.

“Governments need to regain the power to act in the interests of people and the planet and global treaties help to achieve this. Vested commercial interests need to be excluded from the policy table, and civil society needs to have a stronger voice in policy-making,” it said. . . 

Kea and 1080 – nesting success demonstrated  – Kate Guthrie:

Not only do kea nest on the ground, but it takes about 4 months from egg-laying until kea chicks fledge. Four months is a long time to be sitting on the ground facing off the local stoats. Kea eggs, chicks and even adult incubating females are very vulnerable to predation.

Aerial application of 1080 can knock back the predators, but the timing needs to be right and the benefits to nesting kea must outweigh the known risks that some kea will eat the bait themselves.

So do more chicks survive to fledge? Department of Conservation Biodiversity Group researchers Joshua Kemp, Corey Mosen, Graeme Elliott and Christine Hunter investigate, in a paper recently published in the New Zealand Journal of Ecology. . . 

LIC Half-Year Profit Rises On Improved Performance And New Product Innovations

www.halfyearinreview.lic.co.nz

Performance Highlights H1 FY18-19:

• $161 million total revenue, 5% up from $153 million in the same period last year.

• $409 million total assets, up from $371 million on the same period as last year.

• $59.3 million earnings before interest, tax, depreciation and amortisation (EBITDA)[1], up 3% on the same period last year. . . 


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