Rural round-up

July 12, 2018

Dairy industry’s big challenge strategic reset – Keith Woodford:

There is great unease within the New Zealand dairy industry. Many farmers feel that the urban community plus a range of events have turned against them. Most are still proud to be dairy farmers but there is lots of stress and anxiety.  

This stress and anxiety is despite farmers receiving good prices for their milk in the last two years. This has followed two preceding years when most farmers made losses and some sharemilkers were wiped out.

Right now, there are some short-term worries with product prices dropping at the last dairy auction. This is creating uncertainty for the year ahead. But in the longer term, the outlook for dairy is actually very strong. . . 

Jayne Hrdlicka to take over as A2 managing director from July 16 –  Sophie Boot:

(BusinessDesk) – A2 Milk Co’s new managing director and chief executive Jayne Hrdlicka will start on July 16, replacing Geoff Babidge who had been in the role since 2010.

Babidge announced his plans to retire last year, having overseen the company while its shares jumped from around $1 at the end of 2015 to a then-record of $8.75 on the back of successive strong sales as the company’s infant formula attracted strong demand in China. The shares last closed at $11.40, and have gained 41 percent this year. . . 

Polarised views flowing from what some urban consumers say (loudly), and how they live their lives with the market signals they send to producers – Guy Trafford:

An interesting comparison can be drawn between the dairy industry in New Zealand and the coal industry in Australia. Both seem to have the ability to polarise groups and yet both countries economies are heavily reliant on them.

Coal prices have had a resurgence to over US$100 per tonne which is resulting in calls for increasing the amount exported from Australia. Currently, coal brings in about AU$58 bln, one of the major Australian exports.

Dairying in New Zealand holds a similar place and both hold about 30% of world trade. An observation noted while I am here in Australia is the diversity of commentary in the ‘mainstream media’. In Northern Queensland where coal mining appears to be held in very high regard, the major Cairns newspaper editorial seemed to typify the attitude of many. One piece leapt out which showed the gulf I believe exists between most Kiwis and certainly a section of Australians, “Environmental radicals sit in their West End homes with heating and air-conditioning, driving petrol-guzzling cars and generally in a way that generally consumes plenty of energy, most of it coming from fossil fuel sources”. . . 

Fonterra grants 86-year-old dairy industry pioneer’s sick-bed wish – Paul Mitchell:

A Kiwi dairy pioneer has been granted his one wish for his twilight years – the chance to see what his life’s work has led to in a modern processing plant. 

Palmerston North 86-year-old Don King’s work at the Diary Research Institute, now the Fonterra Research and Development Centre, in the decades after the 1950s helped lay the foundations and processes for modern dairy processing plants.

King, extremely ill and rest-home bound after a massive stroke, had one request – to see where it has all ended up.

And thanks to an old colleague, and the efforts of Fonterra staff, his wish has been granted.  . . 

Safety conference showcased forest floor successes:

A national forest safety conference in August will bring the latest practical solutions to the table for all contractors and forest managers to hear about and learn from. Following the challenges that this industry faced in 2013, it has responded with passion and commitment to new ways to embed safety culture into everyone’s mindset on the job. Also, over the past 5 years mechanical harvesting technologies have come a long way for keeping workers safe in logging, especially on steep slopes.

“Some of our most inspiring forestry safety specialists are those with hands-on experience in both crew culture and harvesting technologies. They have been out there doing it, earning the respect of their peers,” says Forest Industry Engineering Association spokesman, Gordon Thomson. . . 

Protecting people and animals from sharing disease – Agcarm:

On World Zoonoses Day, Agcarm reminds pet and livestock owners that good hygiene and vaccination is vital for protecting the health of people and animals.

Diseases such as Campylobacter, Leptospirosis and rabies are ’zoonotic’ and are transmissible between animals and humans. Research shows that 75 percent of all new human pathogens originate from animal sources.

Campylobacter, which is normally associated with eating undercooked chicken, can be associated with pets, especially dogs. Recent research shows that many dogs carry these bacteria without showing any signs of disease. Poor hygiene, such as not hand-washing before eating can spread the disease from dogs to people. . .

 


Rural round-up

March 4, 2018

Meat sector aiming high – Neal Wallace:

A national brand for meat supported by a story detailing New Zealand farming practices will be released within the next few months to spearhead the sector’s response to the growth of competing artificial protein.

A just-released study on the threat of alternative protein to NZ’s red meat sector commissioned by Beef + Lamb NZ identifies beef in our largest market, the United States, as most at risk from the growth of artificial protein.

It warns plant-based burgers and mince will likely be widely available throughout the US within five years and China in 10 years, potentially targeting the grinding beef market. . .

A2 Milk executives cash out of surging shares with combined $36.6 mln payday – Paul McBeth:

(BusinessDesk) – A2 Milk Co executives have enjoyed a combined $36.6 million payday after cashing in on a surging share price since the milk marketer’s announcement last week that first-half profit more than doubled and it had inked a deal with Fonterra Cooperative Group.

Share sales over the four days following the Feb. 21 announcement included $18.5 million sold by departing chief executive Geoff Babidge, who hands over the reins to Jetstar chief Jayne Hrdlicka this year. . . 

Farmers’ stress over cattle disease: ‘We hope we will survive this onslaught – Gerald Piddock:

The distress of battling Mycoplasma bovis and trying to keep a multimillion-dollar farm business has been laid to bare in emails between the Van Leeuwen Dairy Group (VLG) and the Ministry for Primary Industries.

The strain VLG owners Aad and Wilma van Leeuwen were under as they battle to eradicate the cattle disease while saving their farm business during, at times, a tense relationship with the MPI was shown in the release of more than 250 pages of documents released under the Official Information Act to Stuff.

Parts of the documents were heavily redacted for privacy or commercial reasons. . . 

Rabobank Beef Quarterly Q1 2018: Impact of Trade Agreements and Blockchain Technology:

A number of trade agreements, such as the Trans-Pacific Partnership (TPP) and a proposed Mercosur/EU trade agreement, look set to start having an impact on global beef trade in 2018. At the same time, applications of blockchain technology are now being widely developed in the food industry, with opportunities to realise benefits further up the supply chain growing, according to the RaboResearch Beef Quarterly Q1 2018.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership
The 11-member version of the Trans-Pacific Partnership (TPP) looks set for formal signing in March (although respective governments need to sign off on the details before implementation). Gains are expected for beef-exporting countries Australia, New Zealand, Mexico, and Canada—through reduced tariffs into key global beef importer Japan, plus reduced tariffs into smaller importing countries Chile, Vietnam, and Peru. . . 

Empowering rural women:

Farming Women Tairawhiti (FWT) has taken off since it was founded in 2014. Chairwoman Sandra Matthews from Te Kopae Station at Rere tells the Weekender about her role in the organisation and the support avaliable for women who want to achieve more in their farming businesses.

In resource terms, Rere farmer and Farming Women Tairawhiti (FWT) chairwoman Sandra Matthews has struck personal gold while the organisation has grown exponentially.

The Gisborne farmer has helped empower farming women in this region, tapping into an often under-utilised pool of talent that sits within New Zealand’s farming communities. . .

Winning share farmers love the thrill:

The Hawke’s Bay-Wairarapa Dairy Industry Awards Share Farmers of the Year say entering the competition has been excellent for networking, growth and knowledge of their business.

“It’s been a huge benefit to receive feedback from the judges on ways we can improve our business. Plus we love the thrill of the competition,” say Thomas and Jennifer Read.

The region’s other major winners are Gerard Boerjan, the Dairy Manager of the Year, and Brock Cumming, the Dairy Trainee of the Year. . .


Rural round-up

December 15, 2017

Fonterra releases first Sustainability Report on environmental and social performance:

Fonterra is proud to publish its first Sustainability Report, detailing its environmental, social and economic performance.

The Sustainability Report follows Fonterra’s recent announcements on emissions and clean water in New Zealand, and highlights the Co-operative’s commitment to an open discussion on how it is taking its responsibilities seriously and where it is making real progress. The report was compiled using the internationally recognised Global Reporting Initiative (GRI) framework and independently assured. This follows global best practice and underlines the integrity of the report.

The dairy industry is a cornerstone of the New Zealand economy but its environmental footprint is of national significance. The report gives an objective view of Fonterra’s environmental footprint and our contribution to the United Nations Sustainability Development Goals. . .

Beef + Lamb New Zealand launches drought resources for farmers:

Beef + Lamb New Zealand has launched an online resource for farmers affected by the dry conditions.

The resources include a fact sheet outlining strategies to manage and mitigate the effects of drought, coping with stress on the farm and advice on feed requirements and animal welfare during the dry period.

Sam McIvor, chief executive of Beef + Lamb NZ, says with the correct planning and use of tools such as early weaning, body condition scoring and feed budgets, farmers can make the most efficient and effective use of limited feed resources. . . 

Beef + Lamb NZ backs call for beef trade liberalisation:

Beef + Lamb New Zealand (B+LNZ) strongly supports the International Beef Alliance’s call for Ministers at the World Trade Organisation Ministerial Conference to agree on a path to trade liberalisation while protecting beef producersâ ™ livelihoods.

The Eleventh Ministerial Conference (MC11) of the World Trade Organization is being held in Buenos Aires, Argentina, from 10-13 December.

Sam McIvor, chief executive of B+LNZ, says: “We back the IBA’s call for Ministers at the WTO Ministerial Conference to reduce or eliminate the use of trade-distorting agricultural subsidies, amongst other production and market distorting measures. . . 

Dairy cattle numbers dip:

The number of dairy cattle dipped 2 percent from 6.6 million in June 2016 to 6.5 million in June 2017, Stats NZ said today.  

The provisional figures are from the 2017 agricultural production census. Final figures will be available in May 2018.

“From 2012, dairy cattle numbers have been relatively unchanged, after increasing over 20 percent or 1.2 million between 2007 and 2012,” agricultural production statistics manager Stuart Pitts said. . . 

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Census mirrors ‘better efficiency, better for environment’ approach:

Relatively small movements in livestock numbers in the year to June 2017 may indicate New Zealand agriculture is reaching herd equilibrium, Federated Farmers Dairy Chairperson Chris Lewis says.

Figures from Stats NZ’s 2017 agricultural production census show dairy cattle numbers dropped 2 per cent from 6.6m to 6.5m in the 12-month period.

The dairy cattle count has been largely stable since 2012.

“Farmers have a strong and increasing focus on sustainability and further improving their environmental footprint, and that is translating into maintaining or reducing dairy cattle numbers and instead looking for gains by boosting production per head,” Chris said. . . 

Pumpkin & kumara prices at record level:

Pumpkin prices increased 176 percent in the year to November 2017, to reach $5.78 a kilo, the highest price since the food price series began in December 1993, Stats NZ said today. Pumpkin and kumara are typically more expensive in November, but both hit record levels after larger-than-usual increases this year.

“Poor growing conditions due to the wet weather early this year had a huge impact on the supply of pumpkin and kumara,” consumer prices manager Matthew Haigh said. “Pumpkin prices have reflected lower supply, with dramatic price increases in the last three months, while kumara prices increased more steadily through the year.” . . 

Low N cow project:

DairyNZ will lead a seven-year $21 million research partnership to contribute to cleaning up rural waterways.

The central idea is to breed cattle with less nitrogen in their urine.

Participating scientists will come from DairyNZ, Abacus Bio, A. L. Rae Centre for Genetics and Animal Breeding, AgResearch and Lincoln University.

The Government has granted $8.4m to the project, $11.5m will come from farmers’ levy payments to DairyNZ, and the balance will come from CRV Ambreed and Fonterra.

A2 CEO Geoff Babidge to leave in 2018, replaced by Jetstar’s Jayne Hrdlicka – Sophie Boot:

 (BusinessDesk) – A2 Milk Co managing director Geoff Babidge will retire next year, and will be replaced by Jetstar chief Jayne Hrdlicka.

Babidge has been in the role since 2010, and in the past two years has seen the share price jump from around $1 at the end of 2015 to a recent record of $8.75. The shares have soared on the back of successive strong sales, with the company’s infant formula attracting strong demand in China, and have gained recently on scientific evidence about the nutritional value of its milk, which comes from cows selected to produce only A2 beta-casein, unlike most dairy products, which contain both A1 and A2 proteins. . . 

Experienced senior manager joins AVOCO to strengthen market development:

 Steve Trickett has joined AVOCO’s senior management team to expand on market development in Asia and oversee grower communications at home.

A familiar face to many New Zealand avocado growers, Steve has joined the company as Marketing and Communications Manager and is responsible for market planning and performance with focus on new and developing markets where fruit carries the AVANZA brand. He will support the existing sales and marketing team, oversee contestable fund applications and develop AVOCO’s communications and profile among the grower community. . . 

NZ Ag: Why rural marketers need emotional intelligence (EQ) – St John Craner:

I’ve always been fascinated by why people buy since I was a kid. It started when my Dad took me to Twickenham every cold December to watch the Varsity (Oxford Cambridge match) which he’d do every year with his truck drivers as a thank you to them for all their hard work that year. As I sat in the stands I always wondered why did the Tetley, Whitbread or Coca Cola billboards on the pitch influence people to buy.

Over more recent years I’ve noticed rural marketers not sharing the same fascination by recognising and harnessing the power of emotion in their customer’s decision making and buying behaviour. Some continue to treat their customers as if they were predictable and rational which is the same mistake Economists make. If they could understand the emotional state and drivers of their customers more they would be rewarded with closer and more profitable relationships and higher level of referrals, let alone promotions.

Emotional drivers are a powerful force and comes in many forms such as: . . 

Bakers, farmers struggle to make any dough on poor wheat crop – Rod Nickel & Julie Ingwersen:

 Chicago’s iconic sandwiches – Italian beef heroes dripping with gravy, and hot dogs loaded with pickles and hot peppers – wouldn’t be such culinary institutions without the bread.

But this fall, bakers faced a crisis getting the right kind of bread to delis and sandwich shops locally and across the United States.

Gonnella Baking Co – which supplies the buns to Major League Baseball’s Wrigley Field – faced an unusual problem in October when flour from this year’s U.S. wheat harvest arrived at their factories containing low levels of protein. . . 


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