Rural round-up

March 6, 2019

Miles Hurrell permanently appointed Fonterra chief executive officer:

Fonterra Co-operative Group (FCG) has announced the permanent appointment of Miles Hurrell as its Chief Executive Officer (CEO), with immediate effect.

Mr Hurrell had been the Co-operative’s interim CEO since August last year.

Fonterra Chairman, John Monaghan says the Co-operative’s Board has been impressed by Mr Hurrell’s leadership and commercial skills as it continued to breathe fresh air into the Co-operative. . . 

Fonterra caught in death valley :

The sale of Tip Top is crucial to Fonterra’s aim of reducing its debt by $800 million before the end of this financial year, dairy industry commentator Peter Fraser believes.

Fast-moving consumer goods companies can command some very high multiples of earnings when being traded.

Fraser is an economist who advised the Ministry of Agriculture during Fonterra’s restructuring attempt a decade ago and has commented on the dairy industry since.  . . 

M. Bovisfoundonthreefarms – Sally Rae:

Bulk milk testing from all dairy farms has confirmed Mycoplasma bovis infection on three farms, the Ministry for Primary Industries’ latest stakeholder update says. All three properties had previously known links to the bacterial cattle disease.

Another 51 farms would be further investigated as part of routine surveillance while testing was yet to be completed from about 50 farms that calved later in the season.

Testing would begin shortly after calving because the bacteria was more likely to be shed during times of stress, such as after calving and the start of lactation, the update said. . . 

Alex woolhandler to represent NZ at champs – Sally Rae:

It’s bonjour France for Alexandra-based woolhandler Pagan Karauria. Karauria (30) will represent New Zealand at the world championships in Le Dorat in July, after gaining selection at the Golden Shears in Masterton on Saturday night.

Her success was even more remarkable given she suffered life-threatening injuries in a vehicle crash in Central Otago 10 and a-half years ago and has battled with the lasting effects since. . . 

Indoor lambing unit is in enviro contest – Joanna Grigg:

Richard Dawkins of The Pyramid has entered his family sheep and cattle business in the 2019 Cawthron Marlborough Environmental Awards and is up against forestry, marine, wine industry, landscape/habitat, community innovation and business innovation entries for the supreme title.

The winners will be named on March 22.

The Pyramid is in contention for the Federated Farmers Award for sheep and beef entries.  . . 

Farm loan delinquencies highest in 9 years as prices slump – Roxana Hegeman:

The nation’s farmers are struggling to pay back loans after years of low crop prices and a backlash from foreign buyers over President Donald Trump’s tariffs, with a key government program showing the highest default rate in at least nine years.

Many agricultural loans come due around Jan. 1, in part to give producers enough time to sell crops and livestock and to give them more flexibility in timing interest payments for tax filing purposes.

“It is beginning to become a serious situation nationwide at least in the grain crops — those that produce corn, soybeans, wheat,” said Allen Featherstone, head of the Department of Agricultural Economics at Kansas State University. . . 

 


Rural round-up

March 2, 2019

Proposed water tax a ‘burden’ on low-water  regions – Stuart Smith:

The proposed new water tax that was announced as part of a swathe of other new taxes potentially facing Kiwis will disproportionally impact on low-rainfall regions like Marlborough.

There are eight new taxes in Michael Cullen’s proposal: the Capital Gains Tax (CGT), tax on vacant residential land, agriculture tax, water tax, fertiliser tax, environmental footprint tax, natural capital tax and a waste tax.

Much has been said about the CGT but the suggested water tax, too, would impact all Kiwis negatively and in particular our farmers, horticulturalists and wine growers in low-rainfall areas. . . 

Partnerships between men and women are critical for farming success – Bonnie Flaws:

With many farms run by married couples, the role of women in farming is a critical one, a female dairy farmer says.

Jessie Chan-Dorman, a former dairy woman of the year, said male farmers could see everyday how women contribute to the business, and they respect that.

“I would say the percentage of women in farming is at least 50 per cent. Nearly every farming business has a partnership that has historically not been seen. But they’ve always been there.” . . 

Studies smoke out fire behaviour – Richard Rennie:

The risk of summer fires is a constant farmers and foresters learn to live with. But the Port Hills fire in 2017 and the Nelson fire last month have brought a human threat to wildfires many Kiwis thought was confined to Australia and North America. With wildfires now affecting rural and urban people Richard Rennie spoke to Scion rural fire researcher Dr Tara Strand about how we are getting smarter at understanding rural fires.

A TEAM of Scion researchers is part of a 27-year history of research into New Zealand’s rural fires, a quiet brigade of climate experts and fire analysts whose job is to help make rural firefighters’ jobs more effective and safer. . .

Grape yield under threat – Joanna Grigg:

Marlborough is experiencing a hydrological drought.

Lack of rain in the mountain catchment has left the Wairau River low, Marlborough District Council hydrologist Val Wadsdworth said.

And summer storage capacity on the plains has been found wanting as a result. January rain of 18mm was soon sucked up by 30C plus temperatures in February.  . .

Matamata to host FMG Young Farmer of the Year regional final :

A Waharoa dairy farmer is facing fierce competition in her quest to be named the FMG Young Farmer of the Year.

Sophia Clark will take on seven other contestants in the Waikato/Bay of Plenty regional final in Matamata next month.

It will be the 30-year-old’s fourth attempt at clinching a coveted spot in the national final. . .

Scott St John leaves Fonterra Fund manager’s board as units hit record  low – Paul McBeth:

(BusinessDesk) – Fonterra director and veteran capital markets executive Scott St John has left the board of the shareholder fund’s manager, the same day the units plunged to a new low.

A notice to the Companies Office last night noted St John ceased being a director of FSF Management Co, the manager of the dual-listed Fonterra Shareholders’ Fund, which gives investors exposure to the cooperative’s earnings stream. He is still a director of Fonterra. . .


Rural round-up

September 25, 2014

ECan commissioner vents spleen at nutrient meeting –

Environment Canterbury commissioner David Bedford lost his cool at a packed zone committee meeting in North Canterbury.

Trying to resume the meeting after a short tea break, Bedford used several expletives suggesting he was sick of farmers who turned up to meetings for just a short time.

His outburst reflected the often tense tone of the meeting, which drew several hundred dryland sheep-and-beef farmers to the small Waikari hall.

They came to express their concern at nutrient regulations that would leave many low-emitting dryland sheep-and-beef farmers unable to increase their lambing percentage, plant a stand of Lucerne, or grow an extra feed crop. . .

Agri-food opportunities in China – Keith Woodford:

Over the last two years I have written, together with my colleague Xiaomeng (Sharon) Lucock,  a series of six articles on various aspects of China’s  agri-food industries. They have been published in the Journal Primary Industry Management, which is the quarterly journal of the New Zealand Institute of Primary Industry Management.

The first article, attached at the bottom of this post, was written in late 2012.

Some things have moved on since then – for example we reported in that article that New Zealand’s exports to China in the year ending 30 June 2012 were $NZ6.1 billion, which was a three-fold increase in only five years. In the two years since then to 30 June 2014 they have almost doubled again to $NZ11.6 billion. However, the key drivers of change as we set out in that article remain the same.

These key drivers are increasing wealth, urbanisation, changing cuisine, food safety, agricultural production constraints, and associated food security issues. . .

Sheep meat in China and the opportunities for NZ – Keith Woodford:

This is the second of the “China series’  that Xiaomeng (Sharon) Lucock and I wrote for the journal  ‘Primary Industry Management’. It was written in December 2012 and published in March 2013.

As with everything relating to China, the statistics do not stand still.  In the year ending December 2012, 13% of New Zealand’s sheep meat exports income came from China. Move forward six months, and in the 12 months ending June 2013 this had risen to 21%. Then in the 12 months to June 2014 it rose again to 30%.  On a monthly basis, the latest statistics for March 2014 show the China component of New Zealand’s sheep meat trade was 31% by value and 44% by volume. . . .

Doing Agri-business in China – Keith Woodford:

This is the third of a series of six papers written for the journal ‘Primary Industry Management’. This one was published in June 2013.

For this paper we had three authors: Xiaomeng (Sharon) Lucock, Malcolm Cone and myself. The work was led by Sharon and formed the first part of her PhD studies.  It is based on case study work undertaken with New Zealand firms operating in China.

The focus of the work has been on cultural differences and how they affect business practices and relationships. About half the interviews were with Kiwis and undertaken in English. The other half were with Chinese and mainly undertaken in the Chinese language. . . .

Venison finishing margin better – Joanna Grigg:

Daniel Stack puts it bluntly.

“If venison prices are the same as last year venison farming will struggle to be both sustainable and competitive with alternative land uses, like dairy grazing.”

That said, he is poised to increase deer numbers if things come right. The Canterbury Plains venison finisher and dairy grazer hopes that indications from some venison exporters of the October schedule peak reaching $8/kilogram (kg) for 55 to 60kg AP stags will bear out. This would put returns at a level seen in 2012, when the average published schedule peak was $7.95/kg. It is also up on the past season’s $7.40/kg peak.

Stack said that to increase the number of deer weaners bought in, back to his typical 500 a year, he would need to see the schedule price at eight dollars. . .

 Take a long, hard look at your farming systems:

Industry body DairyNZ says the latest drop in Fonterra’s forecast Farmgate Milk Price for the 2014/15 season is a signal to farmers to reassess the costs of their farm system.

Fonterra Co-operative Group Limited today reduced its forecast Farmgate Milk Price for the 2014/15 season from $6.00 to $5.30 per kg milksolids (kgMS). It also increased and widened the estimated dividend range from 20-25 cents per share to 25-35 cents – amounting to a forecast Cash Payout of $5.55-$5.65 for the current season.

DairyNZ’s general manager of research and development, David McCall, says most farmers should cope with lower prices this season, provided another drought doesn’t hit the country. However, around a quarter of the country’s farmers, those with a lot of debt, may have difficulty meeting their farm working expenses and interest payments. . . .

 Cattle and dairy lead rise in exports:

Goods exports rose $227 million in August 2014 compared with August 2013, to $3.5 billion, Statistics New Zealand said today.

Live animals led the rise in exports, due to live cattle. Milk powder, butter, and cheese exports also contributed to the increase, led by higher quantities. The 16-percent rise in milk powder, butter, and cheese was led by milk fat and cheese.

“Cattle, milk fat, and cheese contributed to the rise in exports,” international statistics manager Jason Attewell said. “It is the first time in three years that a rise in dairy was not led by milk powder.” . . .

Award winner becomes Dairy Women’s Network Chair:

Dairy Women’s Network has appointed one of its past Dairy Woman of the Year winners as incoming chair.

Incumbent network chair Michelle Wilson has announced 2013 Dairy Woman of the Year winner Justine Kidd as the organisation’s new chair; a role she will assume following the organisation’s annual general meeting on 22 October.

“It is a credit to the Dairy Women’s Network board to have a person with Justine’s knowledge of agriculture and governance experience at the helm,” said Wilson.

“As outgoing chair I take a lot of comfort in knowing that the organisation will continue to grow from strength to strength with strong leadership at the board table.” . .


Rural round-up

April 19, 2014

Dairy NZ says won’t be water ‘whipping boy’ any more –   Lynn Grieveson:

Dairy NZ says the dairy industry is no longer willing to be the “whipping boy” for any decreasing water quality of New Zealand’s streams and rivers, while Fish and Game has called for a public inquiry into the water quality issue.

Both groups appeared before Parliament’s Local Government and Environment Select Committee on Thursday to discuss the Parliamentary Commissioner for the Environment’s report on water quality, which described the problem of nitrogen leaching into waterways.

Chairman of DairyNZ John Luxton, standing in for Rick Pridmore, Dairy NZ’s Strategy and Investment Leader for Sustainability, said some of our most polluted streams and rivers were in urban areas. . . .

 

China, food and NZInc – Ketih Woodford:

The latest statistics show that New Zealand exports to China continue to surge. In the 12 months to February 2014, milk powder and beef exports each more than doubled, sheep meat sales increased by 80%, and log sales increased by 65%. Overall, exports to China increased from $7.1 billion to 10.9 billion, comprising 22% of total exports.

This overall percentage figure is not in itself a record. Both before and during the 1960s we were much more dependent than this on Britain, and in 1989 our exports to Japan reached 18% of total exports, before declining to the current figure of less than 6%. Nevertheless, the sheer speed of the increase in exports to China is causing concern both to commentators and the industries themselves.

I see no point in worrying about increasing reliance on China as a market destination. It is a simple reality that trade with China is going to increase a lot further yet. As long as the Chinese continue to pay more than other markets, then that is where the products will go. . .

 Good turn-out of forestry conference – Joanna Grigg:

Gray skies did not dampen the enthusiasm of 280 foresters and tree enthusiasts at the recent New Zealand Farm Forestry Association conference in Marlborough.

Field trips were a big part of the four-day programme, organised by the Marlborough Tree Growers Association.

An eclectic group of farmers, corporate foresters, scientists, and plant people had the chance to see radiata pine forests in the Marlborough Sounds, eucalyptus for durable post-production, amenity plantings for farms, and machinery to harvest trees safely on steep land. . .

Lorneville rendering plant commissioned:

LEADING MEAT processor and exporter Alliance Group has completed commissioning the second stage of its $25 million new rendering plant at Lorneville near Invercargill.

The plant produces high quality meat meal sought by pet food manufacturers and for animal feeds, as well as tallow for use in a range of applications from cosmetics to biofuels. The products are exported to international markets such as China, North America, Europe and Asia.

It incorporates the latest technology including a Press Dewatering System, which uses less energy and produces high quality products. The process, is virtually “zero waste”, resulting in high product yields and low wastewater output. . .

Food safety professional development:

AN INCREASINGLY sophisticated food industry stemming from the globalised nature of food production also means more complex issues around food safety and security.

With New Zealand’s heavy reliance on exporting primary produce, this demands robust knowledge and constant up-skilling in the processes and requirements of food safety and security by industry professionals.

Lincoln University, through its Centre for Food Research and Innovation, is now running a series of ongoing professional development courses for those in the food industry. . .

New DairyNZ director appointed:

A new independent director has been appointed to the board of dairy farming industry body, DairyNZ.

DairyNZ board chairman John Luxton says Peter Schuyt has been appointed to replace independent director John Spencer who has stepped down after his term on the board. “I thank John for his excellent contribution to both DairyNZ and to the New Zealand dairy industry over many years.”

John says Peter will be a valuable addition to the board.

“We have three independent directors as well as five farmer-elected members. Peter will bring some broad experience to the table as he is an independent director for a broad range of New Zealand businesses,” he says. . .

Aquaculture New Zealand welcomes Supreme Court decision:

Aquaculture New Zealand has welcomed the long awaited Supreme Court decision clearing the way for three new salmon farms in the Marlborough Sounds.

“It has been a long, expensive and uncertain process to get to this point,” said Aquaculture New Zealand Chairman Bruce Hearn.

“Hopefully we are now at a point where New Zealand King Salmon can proceed with their growth plans and get on with what they do best – sustainably producing the world’s best salmon. . .


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