Rural round-up

July 9, 2019

Uncertainty plus unique ownership structure drive Fonterra share volatility – Keith Woodford:

Fonterra’s shares have been on a steady downward slide for the last 18 months. In January 2018 they were selling at $6.60 dropping to $3.86 at closing on 30 June 2019.

Then this last week things suddenly turned volatile, dropping at one point on 4 July a further 10 percent to $3.45, before rising by six percent to $3.69 at close of trade on 5 July.

The causes of the long-term drop are well understood. Very simply, Fonterra made a loss of $196 million in financial year 2018 largely because of write-down on assets. Fonterra is also now in asset-selling mode to strengthen its balance sheet. Non-farmer investors are coming to understand that, with family silver having to be sold as well as some rubbish disposal, any turnaround is likely to be long-term rather than short-term. . .

One billion tree flawed says climate scientist :

The Forestry Minister Shane Jones’ one billion trees won’t reduce carbon emissions, as too few natives are being planted, climate scientist Jim Salinger says.

The government has allocated $120 million in grants to landowners to plant trees on their properties, and wants two-thirds of those planted to be natives.

Forestry New Zealand figures show in the first year, of the 91m trees planted, only 12 percent were native. . .

Falling log prices may make some woodlots unprofitable – ANZ -Rebecca Howard

(BusinessDesk) – In-market prices for logs in China – New Zealand’s largest export market – have fallen in recent weeks and ANZ Bank warns the drop will make the harvest of some woodlots unprofitable.

While some price softening is not unusual at this time of year as construction activity slows in the hot months, “the scale of the correction was unexpected,” said ANZ agriculture economist Susan Kilsby.

The price of an A-grade log landed in China has fallen from US$130/JAS cubic-metre in early June to approximately US$105/JAS cubic-metre.. .

Vet behind Mycoplasma Bovis detection hopeful for eradication:

The Ōamaru vet, whose efforts led to the identification of cattle disease Mycoplasma Bovis in New Zealand, says she is optimistic the disease can be eradicated.

Earlier this week, Dr Merlyn Hay was given the Outstanding Contribution to the Primary Industries Award, for her work to identify M Bovis in July 2017.

Dr Hay told Saturday Morning that the disease was very hard to diagnose, and in many other countries it was only detected after it had already been spreading for several decades . .

Group aims to help farmers improve M. Boris response – Daniel Birchfield:

Lines of communication between the Ministry for Primary Industries and farmers impacted by cattle disease Mycoplasma bovis have been muddied for too long, Waitaki Mayor Gary Kircher says.

Alongside Waimate Mayor Craig Rowley, he chaired the first meeting of the recently formed Waimate/Waitaki Mycoplasma Bovis Advisory Group held at the Waimate District Council on Wednesday.

The group, modelled on a similar Ashburton arrangement, was formed to support the ministry’s M. bovis eradication programme and assist with regional decision-making to benefit farmers. . .

Lamb contract rewards loyalty – Colin Williscroft:

A $9/kg fixed-price lamb contract for August is a reward for customer loyalty, Affco national livestock manager Tom Young says.

So, farmers generally should not raise their hopes it signals prices higher that they might usually expect as the season unfolds.

The contract has been the subject of much discussion at sale yards but Young said it is not an offer being made to every farmer.

It is only available to loyal clients, farmers who have shown Affco consistent support. . .

Dismantling free markets won’t solve biodiversity threat – Matt Ridley:

Driven perhaps by envy at the attention that climate change is getting, and ambition to set up a great new intergovernmental body that can fly scientists to mega-conferences, biologists have gone into overdrive on the subject of biodiversity this week.

They are right that there is a lot wrong with the world’s wildlife, that we can do much more to conserve, enhance and recover it, but much of the coverage in the media, and many of the pronouncements of Sir Bob Watson, chair of the Intergovernmental Panel on Biodiversity and Ecosystem Services (IPBES), are frankly weird.

The threat to biodiversity is not new, not necessarily accelerating, mostly not caused by economic growth or prosperity, nor by climate change, and won’t be reversed by retreating into organic self-sufficiency. Here’s a few gentle correctives.

Much of the human destruction of biodiversity happened a long time ago . . .


Rural round-up

May 11, 2019

Forget the avengers, farmers are the real heroes – Nigel Malthus:

Farmers are the world’s real superheroes, says Rabobank executive Marc Oostdijk.

Launching Rabobank’s recent FoodX programme, which aims to introduce high school students to career paths in the food industry, Oostdijk says world population is expected to reach 9 or 10 billion by 2050.

“That’s massive, and to grow food and fibres for them is a massive challenge.” . . 

Mental health help ‘there if you ask’ – farmer who faced Mycoplasma bovis cull for months:

A Southland farmer whose farm suffered through a cull because of Mycoplasma bovis says emotional support is available for those who need it – especially farmers, who might be scared to ask for help. 

It comes as two senior rural support workers, hired to help farmers cope with losing their stock, quit over what they say has been a poor response by the Ministry of Primary Industries (MPI).

Southland farmer Ben Walling told First Up he was forced to cull 1700 calves after his farm became infected. . .

Health bus nearly ready to roll – Yvonne O’Hara:

The new Women’s Health Bus (Te Waka Wahine Hauora) is expected to arrive in the Otago and Southland region next month, service co-founder Dr Helen Paterson, of Dunedin, says.

The non-profit mobile health service has been in the planning stages for about two years, but last year obstetrician and gynaecologist Dr Paterson and Junction Health practice co-owner and practice nurse Alice van Zijl, of Cromwell, ordered the purpose-built vehicle from a specialist Whangaparaoa building firm.

Dr Paterson said the health bus would provide women’s health services, including cervical screening and contraception, to women in Otago and Southland’s rural and isolated communities. . .

Frame & Macey: Two-basket approach no free ride for farmers – Dave Frame & Adrian Macey:

A two-basket approach to climate policy is perfectly sensible and would be anything but a free ride to farmers. Recent assertions to the contrary by Jim Salinger and Raymond Desjardins suggest they may have misunderstood both the recent climate science and the policy logic that has led both the Productivity Commission and the Parliamentary Commissioner for the Environment to recommend two-basket approaches.

The first and simplest point to note is that the world has actually used a multi-basket approach to climate policy before. The Montreal Protocol worked pretty well – on some estimates it was more successful at lowering greenhouse gas emissions than the Kyoto Protocol. Montreal was based on a multi-basket approach. There’s nothing inherently better about a one-basket approach to policy, and the reverse is probably true if the residence times of different pollutants span a large range. . .

In a remote South Island valley, birdsong returns – David Williams:

Twenty-one years of intensive pest control in the Landsborough Valley is paying off. David Williams reports.

Colin O’Donnell ambles towards the edge of silver beech forest near the Landsborough River, drawn by the high-pitched, repetitive call of a mohua. It’s a call the Department of Conservation ecologist has been following for more than 30 years.

Ford Flat, overlooked by the Solution Range of mountains, is a common place to wait for the river to recede. In sections of the forest above there’s an ominous ripple of red – signs of a coming mast seeding. Swirling sandflies are ever-present and insistent.

“While it’s there I might just cheat,” O’Donnell says of the chattering mohua, producing from his pocket a portable speaker loaded with bird calls. “It might not work but we’ll give it a go.” . .

Special occasion for fans of hunt – Sally Rae:

He might be ”just a little” over 80 but evergreen Central Otago Hunt master Glynne Smith is showing no signs of slowing down.

Yesterday, Mr Smith was galloping across farmland near Moa Creek, in the Ida Valley, filling the position he has held for the past 30 years.

As master, he was ultimately responsible for the running of the hunt day, and yesterday’s was particularly special for him.

It was the first hunt in Central Otago Hunt’s 30th anniversary programme, which includes four hunts, the South Island hound show and several social functions. . .


%d bloggers like this: