Rural round-up

July 31, 2013

Fonterra’s ‘overdraft clearing forecast’ for 2013/14:

A milk price of $7.50 per kilogram of milksolids (kg/MS), now being forecast by Fonterra Cooperative Group for the 2013/14 season, is an ‘overdraft clearer’. Federated Farmers believes farmers will look to pay back credit lines extended to them during the drought.

“This increase in the payout forecast from $7 to $7.50 kg/MS comes off a very strong balance sheet,” says Willy Leferink, Federated Farmers Dairy chairman.

“Obviously this and an advance payout of $5.50 kg/MS, is great news after a disappointing back end to the last season. Given this time last year payout forecast were being paired back, seeing it go up is a huge relief. . . .

Increased forecast milk price, advance payout evidence of Fonterra’s strength: Brown:

A 50 cent increase in the forecast Farmgate Milk Price and advance for the 2013/14 season is reflection of the Co-operative’s strength said Fonterra Shareholders’ Council Chairman, Ian Brown.

The Fonterra Board of Directors today announced a revised Farmgate Milk Price forecast of $7.50 per kg/MS for the 2013/14 season, including a $5.50 advance, and an estimated dividend of 32 cents per share.

Ian Brown: “This outcome is evidence of a strong organisation that has moved appropriately for the benefit of its supplier Shareholders. . .

Latest water quality trends ‘red letter day’ for farming:

Good environmental farm management is starting to show through in the Ministry for the Environment’s (MfE) latest River condition indicator.  This shows that over a decade at 90 percent of the sites tested, most of the MfE’s key indicators were either stable or improving.

“Improved management of the land and water resource by everyone may be starting to show up in these water quality results,” says Bruce Wills, Federated Farmers President.

“In broad brush terms New Zealand’s water quality is steadily improving.

“In recent years, farmers and communities have really stepped up their efforts but we know we can and must do better. This latest report shows we are heading in the right direction and we need to take this as encouragement to further step up our collective efforts. . .

AgResearch Plans Its Future Footprint:

The country’s largest Crown Research Institute, AgResearch, has released further details of its plans to reinvest $100 million into its campus facilities and resources.

AgResearch Chief Executive Dr Tom Richardson says the proposal is now with staff for consultation and involves a major reconfiguration and reinvestment of AgResearch’s campus and farm infrastructure to create a vital agricultural research institute for the next 50 years.

“We will be modernising our science facilities, co-locating our capability wherever possible, and participating in large agriculture innovation hubs, all of which will generate greater returns across the pastoral sector.

“This is a once in a generation opportunity to put AgResearch in the best possible long-term position to do more quality science more effectively and efficiently, and to make a much bigger difference to the agricultural sector’s productivity and profitability,” he says. . . .

New on-line weather forecast service:

Conservation Minister Dr Nick Smith today launched a new online mountain weather forecast service that will improve the enjoyment and safety of trampers, hunters, mountain bikers, skiers and fishers using New Zealand’s National and Forest Parks.

“New Zealand’s mountain environment can quickly turn from warm and calm to treacherous. We can improve the safety and enjoyment of users by providing more frequent and detailed weather forecasts on the internet,” Dr Smith says.

“We lose about six people per year in our mountains and often these deaths are weather related. We also have about 150 mountain search and rescue callouts a year. This improved weather service will reduce risk and save lives.

“The new online mountain weather forecast service will provide standardised five day forecasts updated every day for 24 mountain locations across eight of New Zealand’s most popular parks. This compares to a previous service of eight locations with a mix of forecast lengths from two to five days and from a frequency of twice daily to weekly. . .

Speech to Horticulture New Zealand annual conference – Nathan Guy:

Today I want to talk to you about my priorities for the primary sector, of which horticulture is a major part. In particular I want to talk about the two goals that the Ministry for Primary Industries has – to grow and protect New Zealand’s economy.

As you all know, the primary sector is the powerhouse of our economy. It is worth around $30 billion a year to the New Zealand economy and makes up around 72 per cent of our exports.

Your industry is a major part of this equation, with New Zealand’s horticultural exports earned $3.6 billion in the year ended 31 March 2013. The total value of horticultural products produced is around $6.6 billion. . .

Farm Environment Awards Motivate Northland Farmers to Lift Game:

Participating in the Ballance Farm Environment Awards inspired Ken and Janine Hames to step up environmental work on their Northland farm.

Ken says they entered the awards to benchmark themselves against other farmers and “to see where we were at” in terms of environmental sustainability.

He and Janine, a vet at Ruawai, first entered the Northland Ballance Farm Environment Awards in 2010 and were thrilled to win two category awards.

“I guess it showed we were on the right track,” says Ken, who runs an intensive bull finishing operation on 400ha at Paparoa, southeast of Dargaville. . .


Rural roundup

May 20, 2013

Communication key in success of group – Sally Rae:

The importance of communication has been stressed by those involved with Mitchell and Webster Group – the supreme winner of this year’s Otago Ballance farm environment awards.

The intensive cropping operation and wholesale business producing bird and small animal feed is based on the Mitchell family’s historic Rosedale farm at Weston and covers 1375ha of arable land in North Otago.

A large crowd attended a field day hosted last week by Peter Mitchell and Jock and Nick Webster and their families. . .

Exceptional Family-Run Business Scoops Supreme Award In Otago Ballance Farm Environment Awards:

An extraordinary cropping and wholesale business run by two families has won the Supreme Award in the 2013 Otago Ballance Farm Environment Awards.

Jock Webster, Nick Webster and Peter Mitchell of the Mitchell Webster Group received the special award at a Ballance Farm Environment Awards (BFEA) ceremony in Wanaka on April 12, 2013.

Producing bird and animal feed, their intensive cropping business spans 1380ha of arable land in North Otago and is based from the Mitchell family’s historic ‘Rosedale’ farm at Weston.

The Mitchell and Webster families joined forces in 1972, creating, said BFEA judges, “an extraordinary and inspirational family business that has withstood the test of time”. . .

Scale, diversity of Asian markets noticed – Sally Rae:

An industry-backed trip to Asia has given Blair and Jane Smith a deeper understanding of the challenges facing marketers of New Zealand meat and dairy products.

Mr and Mrs Smith, from Five Forks and the national winners of the 2012 Ballance farm environment awards, recently returned from South Korea, China, Taiwan and Singapore.

They visited various markets for New Zealand sheep, beef and dairy products, with the aim of learning more about offshore markets, exchanging views on topics of interest to New Zealand farmers and of highlighting New Zealand’s stance on agricultural sustainability. . .

Ace shearer special guest – Sally Rae:

Top shearer David Fagan will be the special guest at the Royal Agricultural Society of New Zealand’s national Golden Fleece competition in Mosgiel this week.

The Otago-Taieri A&P Society is hosting the event, which is open to both fine- and strong-wool growers throughout New Zealand.

The competition has been held for more than 40 years and has moved around the country, although it had predominantly been hosted in the South Island as that was where most of the entries came from, RAS executive member Kelly Allison said. . .

Slow and steady wins farm race – Annette Lambly:

A simple but effective stocking policy has earned Paparoa farmers Janine and Ken Hames recognition in this year’s Ballance Farm Environment Awards.

The couple, who own Ewenny Farms, a 351ha (256ha effective) beef-only farm on Paparoa-Oakleigh Rd, achieve meat production of 277kg CW/ha (three-year average).

This is well above average for this class of land (Waiotira clay loam) in Northland and is accomplished with all-grass feeding, with no hay or silage.

Janine, a veterinarian, has a comprehensive animal health plan for the cattle, and does regular drench checks and faecal egg counts. . .

Tradeable slaughter rights useful but may not be the answer – Allan Barber:

The Tradable Slaughter Rights concept, raised by me several weeks ago and promoted last week by Mike Petersen, was first proposed by Pappas, Carter, Evans and Koop in 1985. But its purpose was specifically to solve the problem of an industry that consisted of a lot of weak competitors with little innovation or variation in killing charges. The report identified excess costs between farmgate and shipside of $100 million or 8%.

Although the meat companies are not exactly making huge profits or enjoying strong balance sheets, it would be entirely false to accuse them of lack of innovation and high operating cost structures. What is still relevant is the issue of excess capacity, but the end result today is not too much cost, but too much procurement competition. . .


%d bloggers like this: