Rural round-up

Govt: Lighter rules insulating dairy shock – Suze Metherell:

Light regulation in the New Zealand dairy industry has insulated the wider economy from the sharp decline in prices for the country’s largest export commodity, according to Finance Minister Bill English.

Prices for whole milk powder, the country’s key commodity export, have plunged this year and dropped an unexpectedly large 10.7 percent in in the GlobalDairyTrade auction last week, sending the kiwi dollar to six-year-lows.

Dairy prices are now expected to remain lower for longer than previously forecast, amid higher global supplies, weak demand in China and an import ban in Russia on European dairy products, which are being sold into other market. . .

Vets to cut down on antibiotics:

The Veterinary Association has set an ambitious target to reduce the use of antibiotics to control disease in animals.

Its goal is to have New Zealand no longer having to rely on using antibiotics for animals by 2030.

President Steve Merchant said the country was well suited to the challenge because of its size, and the fact that it was already the world’s third lowest user of antibiotics on animals. . .

Changes to Health and Safety Reform Bill are sensible:

Federated Farmers believe the two month delay in the Select Committee reporting back the Health and Safety Reform Bill to Parliament has led to improvements for the farming industry.

The Bill has been reported back today.

Federated Farmers health and safety spokesperson Katie Milne says the Bill overall will make farms safer places.

Specifically she says the Bill has gone some way to recognising that farms are different to urban industrial workplaces. . .

 

New Māori aquaculture agreements signed:

New regional agreements for Māori commercial aquaculture have been signed by Government Ministers today, including Primary Industries Minister Nathan Guy.

Three regional agreements have been signed with iwi from the Auckland, Tasman, and Marlborough regions following successful negotiations between the Crown and regional Iwi aquaculture organisations.

The agreements are the result of the Māori Commercial Aquaculture Claims Settlement Act 2004, which requires the Crown to provide Iwi aquaculture organisations with 20% of new commercial aquaculture space consented since October 2011, or anticipated to occur into the future. . .

Australian consortium said to be in no hurry to up their bid for A2 Milk – Fiona Rotherham:

(BusinessDesk) – Australian-based Freedom Foods and US-based Dean Foods are said to be in no hurry to up their bid for A2 Milk Co after the milk marketer this week told its suitors to try again after an initial offer wasn’t compelling and drew out as yet unnamed rival bidders.

A source close to the bidding consortium said they were underwhelmed by a trading update A2 Milk released at the same time as rejecting the offer and request for due diligence, saying it contained “nothing that would shift their view on valuation”.

Given Freedom Foods, the company’s previous joint venture partner in Australia, has a 19.1 percent blocking stake in A2 Milk, any rival bidders may struggle to get an offer across the line. . .

 

Wool market buoyant:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that today’s sale of 6,617 bales saw increases of 1 to 2 percent overall. A good result, considering offering of 52 percent Coarse Crossbred Early Shorn and Second Shear types.

There was good demand for shorter Second Shear types 2 to 3 inch 32 to 35 micron as buyers bid to cover Chinese orders.

The trade weighted indicator was little changed from the last wool sale on 16th July. . .

 

 

Rural round-up

Potential for dairy farmers to increase income from calves:

In a welcome departure from dismal news on the dairy front, farmers are being told that a simple change to their herd mating plans could increase their income from calves.

The advice is one outcome from the Beef + Lamb New Zealand Dairy Beef Integration Programme which is looking at the impact of using good beef genetics in a dairy beef supply chain.

The aim of the AgResearch managed research is to confirm the impact the strategy could have for dairy farmers and others in the supply chain. Early results show clear advantage – and potential additional profit – to dairy farmers from the use of proven beef genetics. . .

 Tiny mite a buzzkill for NZ’s wasps: – Nick Butcher:

A Landcare Research scientist says a tiny mite found on the back of wasps could be helping control the spread of the pests, which sting the country’s primary industries by about $130 million a year.

Wasps also pose a hazard to people and harm the native bird population by competing with them for food, including honeydew and other insects.

Dr Bob Brown discovered the unnamed mite in 2011. He said his studies showed wasp nests infested with the mites were 50 to 70 percent smaller than uninfested nests. . .

Efforts continue to get to the bottom of NAIT puzzle – Allan Barber:

The saga continues, as my Warkworth friend attempts to find out how NAIT intends to ensure correct reconciliation of livestock records, but as yet without a totally satisfactory answer. After further contact, NAIT’s acting Group Manager Sam McIvor replied with answers to the main points raised and I understand the conversation will continue, as both parties try to convince the other of their respective point of view.

At its most basic, the debate centres round the issue of ensuring 100% accuracy which is only possible, if there is 100% retention of tags at the time of stock movement or every animal has a second or reserve tag. At present NAIT estimates there is 98% retention. My friend who came through the mad cow disease disaster as well as FMD outbreaks in the UK is adamant the only acceptable position is 100% accuracy in the event of a disease outbreak. . .

Duncan Coull New Shareholders’ Council Chairman:

Duncan Coull has been elected unopposed to the position of Chairman of the Fonterra Shareholders’ Council.

Mr Coull was first elected to the Council in 2010 to represent Fonterra Farmers in Otorohanga and served as the Council’s Deputy Chair for the past 12 months.

Mr Coull: “It is a privilege to be elected to lead the Council and I thank Councillors for the support I continue to receive. . .

 New Zealand Kiwifruit Growers Incorporated Annual General Meeting:

New Zealand Kiwifruit Growers Incorporated (NZKGI) held its Annual General Meeting today, Wednesday 22 July 2015, updating growers on its key projects and reflected on a successful year.

NZKGI President, Neil Trebilco, says grower confidence and orchard values have continued to increase over the last twelve months.

“The main factors in this increasing optimism are the reduced effects of Psa and increasing OGRs per tray, particularly for Green. . .

 

Dairy farm prices stalling, lifestyle blocks strong, REINZ data shows – Fiona Rotherham:

(BusinessDesk) – Farm sales are down 9 per cent in the year to June and dairy farm prices have begun a slight downward trend, according to the latest Real Estate Institute of New Zealand data.

There were 62, or 11.5 percent, fewer farm sales for the three months ended June, compared to the same period a year ago and the overall year to date is down 9 percent to a total of 1,737 farms sold.

The median price per hectare for all farms sold in the three months to June was $29,141, compared to $26,634 in the same period the previous year, up 9.5 percent. But the All Farm Price Index, which adjusts for differences in farm size, location and farming type, rose by just under 1 percent in June compared to the same month in 2014. . . .

Expert’s visit fruition of relationship cultivation:

Feijoas and Kiwifruit have been on the menu as Lincoln hosted a plant specialist recently to initiate closer working ties around food production with a Chinese province of 90 million people.

Feijoa expert Dr Meng Zhang, of Southwest University of Science and Technology (SWUST) in Sichuan Province, spent a month with Lincoln University and the Bio-Protection Research Centre (BPRC) at Lincoln specifically to learn more about New Zealand horticulture production systems, biological protection and bio-control.

The visit comes a few months after SWUST’s President, Jun-bo Wang, and Director Guan-zhi Zhang, were in Lincoln as part of a large Sichuan trade delegation intended to further extend co-operation between the two institutes. . .

 

Weaker New Zealand Dollar Helps Wool Prices:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the weakening New Zealand dollar helped local prices this week with most types increasing by the corresponding currency change.

The weighted indicator for the main trading currencies was down 2.04 percent compared to the last sale on 9th July.

Of the 7,900 bales on offer from the South Island, 88 percent sold with types suitable for in the grease shipments coming under strong competition. . .

New production quality accreditation for animal feed:

New Zealand animal feed manufacturers now have a quality of production accreditation.

FeedSafeNZ is a new accreditation available to New Zealand Feed Manufacturers Association (NZFMA) members who pass independent audit standards as to quality of feed production. The FeedSafeNZ accreditation has two main aims: to provide safe feed for animals and thereby to protect the safety of human food.

Michael Brooks, NZFMA Executive Director says, “High quality feed is vital not only for the health and wellbeing of animals but also for humans, so it’s imperative that feed is manufactured to strict guidelines and is packed and stored correctly to ensure its quality is maintained. . .

 

Rural round-up

FMG gets $3m flood, snow claims – so far:

The country’s largest rural insurer Farmers Mutual Group says it has received $3 million worth of claims related to the flooding and snow that hit the country last month.

FMG said the severe flooding in the lower North Island prompted 264 claims from the Manawatu-Whanganui and Taranaki regions, and snow damage in Canterbury led to 80 claims being lodged.

General manager of advice and insurance Conrad Wilkshire said most of the claims were for damage to houses, contents, sheds, and farm equipment.

In one case, a farm building was swept down a river. . .

Fonterra’s rivals tell DIRA review there is insufficient competition for dairy industry deregulation – Fiona Rotherham:

(BusinessDesk) – Competitors of Fonterra Cooperative Group, the country’s largest dairy processor, claim there’s still insufficient competition to deregulate the industry.

In submissions to the Commerce Commission, which is undertaking a government-ordered review of the industry’s competitiveness, rival processors either want the status quo or the regulations tightened.

Farmers lobby group, Federated Farmers, says the Dairy Industry Restructuring Act 2001(DIRA) will need to be amended if it’s retained long-term. . .

 Kiwi Developed Sugar Substitute to Tackle Obesity Problem:

A new low-calorie sugar alternative made entirely from fruit and developed by Kiwis, is set to offer companies around the world a natural way to reduce sugar in everyday foods and beverages such as cereals, yoghurts and juices, without compromising flavour.

Developed by Kiwi and Chinese joint venture company Guilin GFS Monk Fruit Corporation, Sweet-Delicious is a natural fruit juice made from a small Chinese melon called monk fruit. As a natural low-calorie alternative to sugar and artificial sweeteners it is a new way to tackle the growing obesity epidemic. . .

 ‘Drought man’ coming to Lincoln:

“Innovate or stagnate” will be the main message from Grassmere farmer Doug Avery when he visits Lincoln University next Thursday.

Avery’s talk about turning drought and desperation into sustainability and success will take place on Thursday, July 16 at 7pm.

Avery, also known as the ‘drought man’, says he understands the value of farmers learning from farmers. . .

Fonterra strengthens ties with the Netherlands:

Associate Minister of Trade Todd McClay says a new Fonterra ingredients factory in the Netherlands, opened yesterday by Dutch King Willem-Alexander, marks an exciting step forward in agribusiness collaboration between New Zealand and the Netherlands.

The state-of-the-art factory in Heerenveen, Friesland, has been developed in partnership with Dutch conglomerate A-Ware Food Group, which has built a major new cheese plant next door.

Whey and lactose, by-products of A-Ware’s cheese-making process, will be processed into specialty ingredients by the Fonterra plant. These will be used in high-value paediatric, maternal, and sports nutrition products for sale in the European Union and beyond. . .

Kiwifruit Claim Wins First Round:

The High Court at Wellington has ruled in favour of The Kiwifruit Claim and against the Crown on all substantial points, in a judgment released on 8 July.

Kiwifruit growers and post-harvest operators who were negatively affected by Psa have untilFriday 9 October 2015 to sign up to The Kiwifruit Claim, the court has ruled.

The court said growers and post-harvest operators should be allowed to bring the proceedings as a representative or class action, which had been opposed by the Crown Law Office (CLO). . .

Hemp seed food sales remain on horizon:

The adoption of a hemp seed food standard remains on the horizon, following work requested by the Food Standards Australia New Zealand Ministerial Forum earlier this year says Food Safety Minister Jo Goodhew.

“New Zealand supports a standard allowing the sale of hemp seed food products, and I am hopeful that the Ministerial Forum will be able to assess the proposed hemp standard again early next year,” says Mrs Goodhew.

“The best available science shows us that hemp seed is safe to eat and has positive nutritional properties. However, the Ministerial Forum had some unanswered questions when it met in January. . .

 

Review of Hemp as a Food:

The NZ Grain and Seed Trade Association (NZGSTA) was pleased to learn today that the Australia and New Zealand Ministerial Forum on Food Regulation (the Forum) was continuing to address some concerns around the sale of hemp seed foods for human consumption.

Responding to the Forum’s communiqué issued from Hobart Thomas Chin, association general manager, said the industry realises that the NZ Minister and officials were supportive of hemp seed foods and they are continuing with strong efforts to help see the development of a new cropping opportunity for NZ primary producers and manufacturers. . .

 

Wool Market Slightly Easier:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the first wool auction of the 2015/16 season offering 6,800 bales comprising predominantly 80 percent short second shear wools, saw a 92 percent clearance with a slightly softer tone.

Despite a weaker New Zealand dollar compared to the last sale on 25th June, with the weighted currency indicator down 1.96 percent, the bulk of the offering was firm to 2 percent easier.

Mr Dawson advises that the seasonal slow-down in order, approaching European vacation period and well stocked supply lines in China are limiting new orders for wool temporarily. . .

 

Rural round-up

Young Queensland beef leader Emma Hegarty wins inaugural Zanda McDonald award – Matt Brann:

A beef extension officer from western Queensland took out the inaugural Zanda McDonald Award at the Platinum Primary Producers (PPP) conference in Darwin last night.

The award is in honour of grazier and young beef industry leader Zanda McDonald, who died in 2013 following a tragic accident on his Queensland cattle property.

The award winner, Emma Hegarty, is from Colanya Station near Longreach and works as a beef extension officer for the Queensland Department of Agriculture. . .

Final Board of Inquiry decision:

The Chairman of the Hawke’s Bay Regional Council’s Investment Company, HBRIC Ltd says it is pleased to be at the end of the Board of Inquiry decision process on the Tukituki Plan Change and consent conditions for the Ruataniwha Water Storage Scheme.

The Board today released its final decision, with submitters allowed 15 working days to appeal. HBRIC Ltd Chairman Andy Pearce says it is good to be getting some finality in what has been an extremely long and involved process. . .

Some Manawatu farms still under water:

 Farmers in Manawatu, like those in the Whanganui and Taranaki regions, are waiting for floodwaters to clear before they can begin to clean up and repair fences, and see what damage may have been caused to pasture.

 Farms in Rangiotu in southern Manawatu were left badly flooded after the weekend rain caused the Oroua River to breach its stopbanks.

The chief executive of Hopkins Farming Group, Richard Syme, said all six of the company’s dairy farms flooded and one of them was left almost entirely under water.

Mr Syme said that farm’s manager had to be plucked from his home by a helicopter after the flood cut off all road access. . .

Opening of the Oete Farms new goat milking facility – Jo Goodhew:

 . . . Apparently Captain James Cook had a taste for goat milk, and took a goat along with him on his maiden voyage to New Zealand. This was the beginning of a long established history of goat milk in this country.

In 1988, New Zealand was the first country to develop goat milk based nutritional products for infants (by Dairy Goat Cooperative). Since then it has been a long journey building the profile of goat milk, and addressing issues such as when the European Union didn’t recognise goats’ milk as an approved infant formula.

With the EU’s recent approval, and growing global demands in the Middle East, Latin America as well as Europe and Asia, goat milk infant formula already accounts for 7% of our infant formula exports, and future growth is predicted. . .

Apiculture industry unification to go ahead:

The apiculture industry has voted to progress plans to unify under one representative organisation.

National Beekeepers Association president, Ricki Leahy, said today’s AGM had voted overwhelmingly to progress unification.

“I am excited about what this offers the industry moving forward.” . .

 Fragmented honey industry votes to create single peak body – Suze Metherell:

(BusinessDesk) – Federated Farmers Bees, Honey Packers’ and Exporters’ Association, and National Beekeepers’ Association have all voted to proceed with plans to create a single national body for the apiculture industry.

The industry bodies voted with a substantial majority to unify the industry at their respective annual meetings held after a four-day conference in Taupo, Fed Farmers said in a statement. The Apiculture Industry Unification Project’s interim working group told the conference that to be profitable and sustainable the industry needed formalised administration and a single peak body funded by a possible reintroduction of commodity levies. . .

Innovative Fonterra return on investment project wins international award:

A return on Investment (ROI) project delivered by Fonterra’s Sales Excellence Team and guided by Bloom Training and Recruitment’s Director, Beryl Oldham, has won a prestigious international award from the ROI Institute.

The Fonterra project was recognised for its approach to ROI measurement and evaluation and earned Fonterra and Oldham this year’s award for the “Most Innovative Approach to ROI”.

“ROI is a performance measure used to evaluate the effectiveness of an investment,” says Ms Oldham. . .

 Fonterra’s June Guaranteed Milk Price Set at $5.25 Per kgMS:

Fonterra has set the June Guaranteed Milk Price (GMP) at $5.25 per kgMS, the same price as the opening 2015/16 forecast Farmgate Milk Price.

A total of 45.2 million kgMS was offered by 443 farms, more than double the number of farms that applied this time last year.

Fonterra’s Group Director Co-operative Affairs Miles Hurrell said: “More of our farmers are seeing GMP as a financial risk management tool and are choosing to lock in a price for a percentage of their milk production. . .

 Wool Generally Holds Its Ground

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the combined North and South Island auction comprising 20,585 bales saw a 91 percent clearance and a generally firm market except for the previously over pressured Fine Crossbred types which eased slightly.

The weighted indicator for the main trading currencies was down 1.47 percent compared to the last sale on 11th June helping underpin local values.

Mr Dawson advises that Finer Mid Micron Fleece were 3 to 6 percent easier with the coarser types firm to 2 percent dearer. . .

Rural round-up

 Farmer Wellness Big Breakfast – Nathan Guy

The title of my speech today is “Managing Through Tough Times”.

I came up with the idea of this function when I was out running about six weeks ago and felt the time was right for the Government to communicate two very important messages to our farming families and communities.

Firstly, I want to acknowledge that these are challenging times for many farmers and the wider rural community, particularly in the dairy sector, but that we expect much improved conditions in the longer term.

Secondly, I wanted to reinforce the message that if farmers are struggling, or have concerns about how things are going, you are not alone and help is out there.

We know there are plenty of challenges this year, as there always is with farming. . .

$500,000 boost to help rural mental health:

Health Minister Jonathan Coleman and Primary Industries Minister Nathan Guy have announced a $500,000 funding boost to support mental health initiatives targeted at rural communities.

“Rural depression is a significant issue. The physical isolation as well as the uncertainties of being reliant on the land creates different pressures to those living in an urban setting,” says Dr Coleman.

“The Ministry of Health and Ministry for Primary Industries have each contributed $250,000 to the one off funding boost. . .

Federated Farmers Fielday Seminars: “The essence of farming: water, land, capability”:

Agribusiness expert, Jaqueline Rowarth, has told a Federated Farmers seminar at the Mystery Creek Fieldays this afternoon that investment is necessary for ensuring supplies of sufficient farm water, but meanwhile maintaining water quality.

She said this investment is only possible if primary produce meets the huge challenge of attracting good prices.

Professor Rowarth told the 50 odd people at the seminar New Zealand has both water quantity and quality, which farmers are capturing and using responsibly. . .

 

Greenhouse gas study tour winners announced:

Primary Industries Minister Nathan Guy has announced the two winners of the 2015 Global Research Alliance on Agricultural Greenhouse Gases (GRA) – World Farmer Organisation Study Tour in Argentina later this year.

Doug Avery and Zach Mounsey have been selected as winners by a panel including Mr Guy and Associate Primary Industries Minister Jo Goodhew after giving presentations at Fieldays this year.

“The purpose of this study tour is to increase global understanding and engagement on agricultural greenhouse gas research. These two winners will have an important role as ambassadors for New Zealand in sharing environmental management practices that support sustainable productivity. . .

Breeder confident of sheep’s safety:

A Canterbury sheep breeder with stock on board a major shipment to Mexico says she has been in touch with the destination farm and has no concerns about the animals’ safety.

Penni Loffhagen, who is one of the biggest Suffolk stud breeders in the country, has sold 15 young pedigree sheep to a Mexican farm for breeding.

Her ewes and rams are among 50,000 sheep now at sea on the way to Mexico. . .

They’re not ‘our’ sheep – Kiwiblog:

Newstalk ZB reports:

Labour wants assurances that tens of thousands of sheep and cattle being shipped to Mexico won’t be killed when they get there.

The shipment leaves Timaru today.

Leader Andrew Little told Newstalk ZB’s Rachel Smalley the regulations are clear – you can export live sheep for breeding purposes, you can’t for slaughter. . .

PGG Wrightson lifts annual earnings outlook for a second time, warns of weak farmer confidence – Suze Metherell:

(BusinessDesk) – PGG Wrightson, the rural services firm controlled by China’s Agria Corp, lifted its annual earnings outlook as second-half trading comes in ahead of expectations, but warned weak farmer confidence may weigh on future sales.

The Christchurch-based company expects annual operating earnings before interest, tax, depreciation and amortisation to be between $66 million and $69 million in the year ending June 30, above the February forecast for earnings between $62 million and $68 million. That in itself was an upgrade from previous guidance to beat last year’s earnings of $58.7 million. . .

New Zealand Avocados Achieve Record Sales Volume:

New Zealand’s largest ever avocado crop has been successfully harvested, packed and marketed with a massive 7 million trays sold during the 2014-15 season.

Jen Scoular, Chief Executive of NZ Avocado, today announced the new record volume which was 43 per cent higher than last season, and up from a previous industry high of 6.1 million trays sold in 2011-12 and a great industry return.

“Growth in the consumption of avocados in our key markets continues to be very impressive. . .

Best Young Butchers in the Region:

Two of New Zealand’s top young butchers have been named following the Alto Young Butcher & Competenz Butcher Apprentice of the Year Lower North Island regional final yesterday.

Havelock North local, Justin Hinchco from New World Havelock North took out the Alto Young Butcher category and Vernon Atutahi from New World Marton finished first place in the Competenz Butcher Apprentice category. . .

 

Body condition score to become a breeding trait:

Body condition score (BCS) is to be included as a new trait in Breeding Worth (BW) from February 2016.

Breeding Worth provides farmers with an economic measure of genetic merit (profit per five tonne of dry matter) and is calculated for all dairy cattle. During a National Breeding Objective Review in 2012, BCS (particularly late lactation BCS) was identified as an important trait with economic value to farmers. . .

 

Wool values ease:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the North Island offering this week, made up predominantly of short coarse Second Shear wools compared to the more varied South Island longer selection last sale on 4th June, saw prices ease despite the weakening New Zealand dollar.

The weighted indicator for the main trading currencies came back by 1.95 percent with a 98 percent clearance of the 9,400 bales on offer. . .

NIWA’s Fieldays stand a winner:

NIWA’s Fieldays team is today basking in the glory of winning the Best Indoor Agribusiness Site awarded by the National Agricultural Fieldays organisation for the 2015 event.

Dr Mark Bojesen-Trepla, NIWA’s manager of marketing and industry engagement, said the win was a great endorsement for the team who had worked extremely hard to put together a space that would be eye-catching and relevant to farmers.

“We are delighted our efforts have been formally recognised but are also looking forward to meeting more farmers during the rest of Fieldays and showing them how we can help.” . . .

 

 

Rural round-up

Low-Cost Pasture-Based Dairying Still Our Best Bet, Say Farm Environment Leaders:

New Zealand dairy farmers shouldn’t lose sight of their competitive advantage, say farm environment ambassadors Mark and Devon Slee, who recently returned from a study tour of the Northern Hemisphere.

In late March the Canterbury dairy farmers and National Winners of the 2014 Ballance Farm Environment Awards embarked on a 25-day trip to the United Kingdom, Netherlands and Ireland, visiting a wide range of dairy farms

Mark says a key aim of the tour, which was facilitated by the New Zealand Farm Environment Trust and supported by a range of industry groups, was to study intensive dairy farming systems in Europe and to find out how farmers were using technology to improve sustainability. . .

Pacing global changes a big ask for Fonterra – Fran O’Sullivan:

Tim Groser’s warning that the dairy sector would effectively have to guts it out during a period of low milk payouts was timely.

It’s perhaps easier said than done maybe from the perspective of a Trade Minister.

But dairy farmers are a resilient lot. They’ve been through cyclical times before.

Yet, last week’s Fonterra announcement that the co-operative has downwardly revised its 2014/2015 payout forecast back to $4.50/kg milk solids (from $4.70) was still a hard knock for those that had factored the higher track into their own financial planning.

Federated Farmers pointed out just how difficult it was for some dairy farmers with their comment that the average Canterbury dairy farmer was now facing a loss of 91c for every kilogram of milk solids that they produced. . .

ANZ Bank was most aggressive in rural rate swaps sales to farmers, ComCom says – Paul McBeth:

(BusinessDesk) – ANZ Bank New Zealand, the country’s biggest lender, was the most aggressive in pitching interest rate swaps to farmers, over which it subsequently agreed to pay $19 million in compensation, the Commerce Commission says.

General counsel competition Mary Anne Borrowdale told Parliament’s primary production select committee that of the three banks to settle with the regulator, ANZ had the most customers involved and was investigated over both the way it was able to move its margin and the break fees it charged farmers for an early release. While ANZ announced its settlement with the regulator before ASB Bank and Westpac Banking Corp, it only just made its offer to farmers yesterday. The three banks’ collective settlements totalled $24.2 million. . .

Landmark animal welfare legislation welcomed by veterinarians:

The New Zealand veterinary profession welcomes today’s landmark passage of the Animal Welfare Amendment Bill which brings greater clarity, transparency and enforceability of the country’s animal welfare laws, further strengthening New Zealand’s excellent reputation for animal welfare.

The New Zealand Veterinary Association (NZVA), which played a key role in helping to shape the Bill, says some of the key changes include the legal recognition of animal sentience, which is sensation or feeling in animals, for the first time in New Zealand law.

NZVA President Dr Steve Merchant says: “Veterinarians are at the vanguard of animal welfare advocacy and public support is behind us in the call for greater clarity on issues concerning animal welfare and increased sanctions for animal cruelty. . .

 

 High prices and volumes for avocado growers:

Avocado exporter Avoco says its growers are celebrating the end of a season where they not only got a bumper crop – but decent prices for their fruit too.

Avoco said strong end-of-season demand from Australia lifted returns for growers – to $15 per tray for large avocados and $14 per tray for smaller fruit.

Avoco director John Carroll said the company exported a record volume of fruit – 4.5 million trays, out of a total 7 million trays – and still managed to get good returns for its 700 plus growers. . .

Anchor Gives More New Zealanders an Organic Milk Choice:

Anchor is making organic milk more accessible to New Zealanders with the nationwide launch of Anchor Organic.

Fonterra Brands New Zealand Managing Director Tim Deane said that with other organic milk brands only available in certain regions or very expensive, Anchor is on a mission to make organic milk more widely available at a fair price.

“We want to put organic milk in reach of more New Zealanders. We’ve done just that through our nationwide distribution and providing Anchor Organic at an everyday price that works out at only about 20 cents extra per glass compared to our standard Anchor milk,” said Mr Deane. . .

Wool Prices Bounce:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that a weaker New Zealand dollar, limited wool volumes pressuring exporters and renewed client interest, combined to lift local prices across the board.

Of the 6,350 bales on offer, 99 percent sold.

The weighted indicator for the main trading currencies was down 1.79 percent compared to the last sale on 30th April.

Mr Dawson advises that Fine Crossbred Full Fleece and longer shears were 7 to 10 percent dearer, stimulated by resurgent Chinese interest with shorter types 3 to 6 percent firmer. . .

Rural round-up

Fonterra and DOC working together on World Wetlands Day:

With World Wetlands Day marked this week (February 2), Fonterra and the Department of Conservation (DOC) are continuing their work to improve the health of five key catchments across New Zealand, through their Living Water partnership.

Living Water contributes to the conservation of wetlands through a ten year programme of work to improve water quality and the variety and abundance of native wildlife at the selected catchments located in major dairying regions.

The Living Water catchments are Hikurangi in Northland, three Waikato peat lakes – Areare, Ruatuna and Rotomānuka, Miranda/Pūkorokoro on the Firth of Thames/ Tīkapa Moana, Te Waihora/Lake Ellesmere in Canterbury and Waituna in Southland. . .

 Setting dairying women on the right path:

Two participants of the Agri-Women’s Development Trust’s (AWDT) new pilot programme say they have been left feeling empowered and confident in the running of their dairy farming businesses.

Hawke’s Bay dairy farmer Zoe Kuriger and Arohena dairy farmer Cathy Prendergast were among the first intake of the Pathways Programme, which is run in two modules – the first held in November last year.

The Pathways Programme is a collaborative venture between Dairy Women’s Network and AWDT and is funded by DairyNZ and Ministry for Primary Industries. . .

 

Adding value to business and balance to life:

Dairy Women’s Network and DairyNZ are running free goal setting workshops called ‘Know where you are heading’ in nine locations throughout New Zealand during February and March.

The dairy module is suitable for all levels of dairying, however is open to DWN members and non-members, and both men and women of any profession.

The workshop has been jointly developed by DWN and DairyNZ, using material from DairyNZ’s Mark and Measure seminars.

“The aim of the workshop is to build farmer confidence and gain clarity on goals, as well as an understanding of the essentials of planning, goal setting and workable action plans,” said DWN Takaka regional convenor Tyler Langford, workshop co-presenter. . .

Young bidder gets the job done – :

A determined 17-year-old helped to set the prices at this week’s Hawarden crossbred sheep sale, as she held her nerve and saw off rival bidders for three pens of romney two-tooths.

Louisa McClintock was buying on behalf of her father, and paid between $165 and $173 for 230 romney and romney cross ewes.

“Dad just said, ‘Get the ones you like’, so hopefully I’ve done all right for him,” Louisa laughed after the sale. . .

Farmers urged to plan feed for cows carefully:

Industry body DairyNZ is urging farmers facing drier than normal farming conditions to carefully consider how they make their feed planning decisions to keep cows in milk while maintaining their condition.

General manager of extension, Craig McBeth, says farmers are now reaching some crunch points for making the calls on feed planning and milking frequency.

“We know some farmers have moved on to once a day milking or milking every 16 hours as a way of managing their way through what are still very dry conditions in most parts of the country despite the recent rainfall. In the last couple of weeks we’ve seen pastures go from green to brown pretty quickly with limited post grazing regrowth. Soil moisture levels are still well below the average for this time of year and we’re now seeing that reflected in crisp pastures,” he says. . .

 

 

No slowing in demand to buy Canterbury farms:

Local and international interest in the New Zealand rural real estate market remains extremely strong, defying suggestions demand could soften in the face of the lower Fonterra payout to farmers.

Shane O’Brien, national director of Colliers Rural & Agribusiness division, said buyers were taking the medium to long-term view of the dairy industry and were still keenly contesting quality land.

“We’re still getting strong enquiry both from local buyers wanting to expand their land holdings as well as from international funds and private investors.” . .

Wool Demand Outstrips Supply:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that strong buying interest for quick shipment underpinned this week’s wool market for the 13,789 bales on offer from both Islands.

Currency played a minor role despite the New Zealand dollar’s volatility with the indicator for the main trading currencies practically unchanged at 0.6898 compared to the last sale on 29th January.

Of the offering 90.8 percent sold with most unsold wools coming from the Mid Micron selection.

Mr Dawson advises that there were some inter Island variations in price direction in some sectors, with an overall firm to dearer trend. . . .

FMG Selects Interactive Intelligence as Telephony Partner

Reinforces Insurer’s Commitment to Servicing New Zealand’s Rural Sector

Interactive Intelligence Group Inc. (Nasdaq: ININ) has announced that it will partner with FMG, New Zealand’s leading rural insurer, to roll out its Customer Interaction Center™ (CIC) IP communications software suite across the company’s New Zealand service centre operations.

CIC will support FMG in improving its overall customer experience delivery through key features, including recording and quality assurance, multi-media ACD contact centre, IVR, outbound dialer, agent and supervisor desktop functionality. . .

 

Rural round-up

Biofuels vs food production – Keith Woodford:

There is an inevitable tension between using crops for biofuel or for food. In working out the capacity of the world to feed itself in the future, the demand for biofuel is an essential part of the equation.

In the last ten years, the global quantity of biofuels has more than doubled. The big question is where will it go in the next ten years? It is widely agreed that biofuels are a key reason why grain prices have been much higher in this current decade than in the previous decade.

The largest producer of biofuels is the US, where 40 percent of the corn crop is now distilled into ethanol. To put that into perspective, corn is by far the most important crop grown in the US. The US produces four times as much corn as wheat, and it is corn that underpins both the animal feed and much of the human food industries. . .

New Zealand’s dairy opportunities in China – Keith Woodford:

This is the fourth in the ‘China series’ of articles written for the journal  Primary Industry Management by Xiaomeng (Sharon) Lucock and myself. It was published in September 2013.

As with other products to China, the statistics have moved on in the last year but the drivers of change are similar.

In the last year since the Primary Industry Management paper was written,  New Zealand’s total dairy exports to China have increased from $NZ2.9 billion for the 12 months ending 30 June 2013, to NZ6.05 billion for the 12 months ending 30 June 2014. These numbers will almost certainly decline in coming months, not because of a decline in volume, but from the current major downturn in prices. . . .

Passion for dairy drives manager  – Sally Rae:

When it comes to succeeding in the dairy industry, Maigan Jenkins believes passion is needed.

”You’ve got to want to be out there. It’s not a job where you go to work just for the money,” the young Clydevale herd manager said.

Brought up in South Otago, Miss Jenkins (21) had always enjoyed being around animals and wanted to be a vet from a young age. . .

Sculptor aims for essence of Shrek  – Lucy Ibbotson:

Capturing the ”multi-faceted personality” of New Zealand’s most high-profile sheep was a challenge relished by sculptor Minhal Halabi.

Central Otago celebrity wether Shrek, who died three years ago, will soon be immortalised in bronze in his hometown, Tarras, as a $75,000 sculpture by Mr Halabi nears completion.

Shrek’s owner, John Perriam, commissioned the piece, which will be unveiled later this year in the Tarras village. . .

http://www.scoop.co.nz/stories/BU1409/S00825/comvita-sees-annual-earnings-lift-of-up-to-32.htm

Comvita sees annual earning lift of up to 32 %  – Paul McBeth:

(BusinessDesk) – Comvita, which produces health products derived from manuka honey, sees annual earnings growth of up to 32 percent, while bemoaning a growing imbalance between the first and second halves of the year.

The Te Puke-based company expects net profit of between $9 million and $10 million in the year ending March 31, 2015, up from $7.6 million a year earlier, on revenue of between $140 million and $145 million, up from $115 million, it said in a statement. That will largely come through in the second half of the year, due to uneven sales between the northern and southern hemispheres, and after the honey harvest is collected between January and May next year, which will generate revenue from the beekeeping operations.

 Strong Wool Sale

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that at today’s South Island Wool Sale prices held firm to slightly dearer across all categories.

The Trade Weighted Indicator continued its recent decline at 0.7269 against 0.7305 last week.

A small Half-bred offering was generally 2.5 to 3.5 percent dearer through all microns 25 to 30. . . .

 

Rural round-up

Regen owner named Mumtrepreneur of the Year:

Wellington businesswoman Bridgit Hawkins has been named Fly Buys Mumtrepreneur of the Year in the Fly Buys Mumtrepreneur Awards.

Hawkins’ business, Regen Ltd, helps dairy farmers manage a key issue – disposing of cattle effluent. The company has developed software that turns data, including soil moisture, temperature and rainfall, into a simple daily recommendation that’s sent to the farmer by text message.

Since Regen launched in 2010, the company has helped hundreds of farms across the country manage effluent disposal efficiently and its customer numbers have doubled year on year. . .

$107.5m to Lincoln University science rebuild:

Tertiary Education, Skills and Employment Minister Steven Joyce today announced that the Government has approved in principle to provide up to $107.5 million in capital funding toward the rebuilding of Lincoln University’s science facilities destroyed in the Canterbury earthquakes.

“Lincoln University suffered very significant damage in the Canterbury earthquakes, and this money will assist the university with its rebuild programme and help it get back fully on its feet. Lincoln is focused on growing its undergraduate enrolments and the rebuild of its key facilities is the next stage in returning it to sustainable operations”, Mr Joyce says.

Lincoln University lost more than 40 per cent of its academic floor space in the Canterbury earthquakes, including much of its facilities for science teaching and research. The rebuild will involve demolishing the badly damaged Hilgendorf and Burns buildings, and replacing them with modern facilities. . .

Federated Farmers on Ruataniwha appeal:

While Federated Farmers did not lodge an appeal with the High Court against the Board of Inquiry decision on the Ruataniwha Dam and the associated Plan Change 6, it is now considering options in light of Hawke’s Bay & Eastern Fish & Game Councils lodging an appeal.

“Federated Farmers principal interests are in the plan change rather than the dam, which was given consent to proceed,” says Will Foley, Federated Farmers Hawke’s Bay Provincial President.

“I cannot comment on the merits of Fish & Game’s appeal until we see it next week.

“Since we now know of Fish & Game appeal, we must now reconsider the best way forward.  I need our members to know that we do have options.

“It seems farcical since the news today says Kiwi farmers will have to make big changes to cope with climate change, following release of the International State of the Climate report.  Yet more reasons to store water. . . .

Looking for the South Island’s next top farmer:

The South Island’s next top farmer is out there and Federated Farmers wants to see farmers nominated for the 2014 Lincoln University Foundation South Island Farmer of the Year award. The 2013 award being won by the winemaker, Peter Yealands.

“New Zealand farming does not celebrate success enough,” says Dr William Rolleston, Federated Farmers National President.

“As the farmer-comedian Te Radar told us at Federated Farmers’ National Conference, we do not take time to stop and appreciate just how good our farmers really are. . .

Levy vote about capturing wool’s value –  Chris Irons:

In recent news, one might think that sheep farming is all about red meat, but the sheep farmer’s story is not all about protein. We farm a dual purpose animal and whilst the red meat side is performing, its fibre counterpart has yet to reach its full potential.

Sheep farmers are world leaders in producing fibre; supplying 45 percent of the world’s carpet wool, we are the world’s third largest wool exporter. To capture that value behind the farm gate and building the industry’s worth of $700 million, we need a Wool Levy.

The Wool Levy Consultation has been officially launched, and the Referendum will be voted on the 10^th October. Imagine the possibilities, with the average value of our raw wool exports having increased by 38 percent from 2010 to 2014. . . .

Rural elderly communities to struggle – report:

An ageing population where deaths outnumber births will be a challenge for rural communities who won’t be able to afford the services they need, according to analysis of New Zealand census data.

The challenges of adapting to an older population are highlighted in the Our Futures report, by an expert panel at the Royal Society of New Zealand.

Panel chairman, Professor Gary Hawke, says the review is a unique multi-disciplinary approach that looks at the big picture.

“We wanted to highlight what an evolving New Zealand society might look like, what is underlying these changes, and the challenges and opportunities these present.” . . .

Mixed fortunes at wool auction:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the South Island auction offering 10,122 bales this week received varied support despite a weaker New Zealand dollar compared to the last sale on 10th July.

The weighted currency indicator was down 1.11 percent with 81 percent of the offering being sold.

Steady demand from China underpinned the Fine Crossbred sector, however most carpet wool types eased as contracts in this area have been harder to conclude recently. . .

Value Creation and Environmental Sustainability for Marlborough Wine Industry By-Products:

Marlborough’s wine producers have come together with the Marlborough District Council in a new collaborative approach to the management of grape marc disposal, to generate a new, commercially viable and environmentally sustainable product from grape waste.

Facilitated by the District Council, participating wine companies have formed the “Marlborough Grape Marc (MGM) group” to advance a proposal for an environmentally sustainable use of the wine industry’s waste streams.

The MGM group is chaired by Eric Hughes of Pernod Ricard Winemakers with representatives from Cloudy Bay, Constellation Brands, Delegat’s, Giesen, Indevin, Matua, Mount Riley, NZ Wineries, Pernod Ricard Winemakers, Saint Clair and Villa Maria. The group members generate approximately 80% of the wine production in Marlborough. MGM is an open collective, it is hoped that further companies will join and support this industry wide initiative. . .

Rural round-up

Farmers back irrigation feasibility study:

A planned large-scale irrigation scheme in South Canterbury has got enough farmer backing for it to carry out an in depth feasibility study.

The Hunter Downs Irrigation Scheme, which could irrigate up to 40,000 hectares of land from Waitaki to just south of Timaru, also has significant financial backing from the Government.

Hunter Downs Irrigation chairman Andrew Fraser says they’ve been going through a capital raising process over the last several weeks – and have managed to get over the threshold of 20,000 hectares of farmer uptake.

“This funding will enable us to do a feasibility study and so that will tell us whether the scheme is economically and technically viable so we hope to have that result back out to the shareholders and farmers by the end of the year.”

Mr Fraser says the capital raising period has been extended as the scheme gauges corporate interest and speaks to more farmers in the area. . .

Winners committed to pushing farming change – Gerald Piddock:

Mike and Sharon Barton’s innovative approach to farming in an environmentally sensitive area has earned them the supreme title in the 2014 Waikato Farm Environment Awards.

The Western Taupo beef farmers were presented with the award as well as category awards for soil management and innovation at a ceremony near Karapiro last night.

The Barton’s farm at Glen Emmreth Farm near Tihoi. They purchased the 142ha property in 2004 at a time when strict environmental legislation to protect the health of the lake was looming.

They faced this challenge head-on, determined to make their farm as environmentally sustainable as possible. . .

Farmers warned to tidy up act:

Federated Farmers is warning farmers not to risk making the dairy industry a scapegoat at this year’s general election through poor farm practices.

In a message to farmers, dairy chairman Willy Leferink said he was worried they could be negatively portrayed during the election campaign and they needed to do the basics properly to avoid bad publicity.

Visual aspects of the industry needing to be tidied up, and that could help create a better public image, Mr Leferink said. . .

Call for better health and safety on farms after death –  Collette Devlin:

Farming is a hazardous occupation and the number of injuries and deaths on Southland farms must come down, industry insiders say.

They are calling for better health and safety awareness on farms.

The issue has been put in the spotlight by the tragic death of fertiliser truck driver Les Cain, killed when the truck he was driving overturned on a northern Southland farm on Tuesday.

Southland Federated Farmers president Russell MacPherson said one farm death was one too many.

The old attitude of ‘she’ll be right’ needed to disappear from the industry. . .

Hawke’s Bay Farmers of the Year – Hugh and Sharon Ritchie – RivettingKateTaylor:

Well done to Hugh and Sharon Ritchie – Hawke’s Bay Farmers of the Year.

I’ve just been writing about Hugh lately as I am doing the Nuffield NZ newsletter and he has just retired after 12 years as a trustee (we also went through Young Farmers together, although I hasten to add he is older than me!!!  Hugh, Shane Tilson and I won a national debating final in 1995!)

So last night (back to the important news) they were awarded the prestigious Silver Fern Farms Hawke’s Bay Farmer of the Year title in front of 350 people at a dinner at Showgrounds Hawke’s Bay (well done on great night Hillary). . .

D2S ‘growing at a rate of knots’:

Wool growers have rallied behind Wools of New Zealand’s Direct-to-Scour (D2S) spot market sales option.

Launched in October last year, volumes under D2S are doubling month on month and have now reached around 350,000 kgs, with annualised volumes expected to reach between 3.5m – 4m kilograms within its first year, about 8% of the market.

Ross Townshend, Chief Executive of Wools of New Zealand told shareholder growers and supporters during the company’s roadshow series of 12 national meetings this week that the system was “simpler and put more money into the pockets of growers than the conventional model. It makes logical sense for growers’ wool to go to the first point of processing which is the scour where it can be core-sampled, independently tested, objectively assessed and fairly priced. . . .

Wool Market Defies Dollar:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that despite a resurgent New Zealand dollar the South Island offering of 11,500 bales saw most types range from firm to 3 percent dearer. Even with the strength of the sale and an 86 percent clearance, some growers were still unprepared to accept current market levels with 13 percent of the offering being passed in.

The weighted indicator for the main trading currencies was 1.36 percent up on the last sale on 3rd April.

Mr Dawson advises that Fine Crossbred Fleece and Shears were between 1 and 3 percent firmer. . .

Rural round-up

Record number of Rural Women members step up as candidates in local elections 2013:

A record number of Rural Women NZ members are standing in this year’s local elections, motivated by the need for better understanding by councils and District Health Boards of the challenges facing rural communities.

At least 14 Rural Women NZ members are standing around the country, with three already certain of their seats, being unopposed.

Rural rates are a hot issue, particularly the disproportionate share of rates being shouldered by farmers, which is a top priority for many.

Sharyn Price, a Kauru Hill Rural Women member standing for the Corriedale Ward of Waitaki District Council, says, “Rates fairness and value for money are utterly essential. Rural ratepayers have seen much larger percentage increases in rates than council’s averages, thanks to farm development increasing capital values, while town values fail to keep pace. Paying ever more for a shrinking share of services is not reasonable.” . .

$25m invested in new forestry technologies:

The Government is investing $2.5 million over a maximum of five years to support research that will increase the productivity of the forestry industry, Science and Innovation Minister Steven Joyce announced today.

The funding will support the development of new technologies that can be used by pine tree breeders to reduce the time it takes to breed and plant new improved trees by 15 years.

The Radiata Pine Breeding Company, which has formed a partnership between 16 forestry organisations, Scion and the University of Canterbury, is researching and developing the new technologies. . .

RMA reform bill third reading ‘a reform entrée’:

 Federated Farmers is welcoming some parts of the Resource Management Reform Bill 2012, which recently passed its third reading in the Parliament. 

 “While some parts of the Bill relate to Auckland, other parts are an economic and environmental appetizer for farmers,” says Ian Mackenzie, Federated Farmers Environment Spokesperson.

 “There are some aspects we welcome, some we have reservations about and some we do not think go far enough.

 “A few environmental activists have irrationally fought tooth and nail against having a robust cost benefit analysis in the RMA.  Without one, however, the RMA was increasingly trending towards perfection as a benchmark and that is as unaffordable as it is unobtainable. . .

Hoorah for Rotorua lake water quality!:

Federated Farmers applauds a recent Bay of Plenty Regional Council report showing water quality improvement in the Rotorua Lakes catchment has improved significantly.

“This gives a good, accurate illustration on the state of water quality within Rotorua Lakes,” says Neil Heather, past provincial president Federated Farmers Rotorua-Taupo.

“It highlights all the good work done through collaborative partnerships with landowners and the community undertaken to improve the lakes’ water quality. Federated Farmers supports the regional council’s use of the Trophic Level Index (TLI), which has undoubtedly led to an overall increase in water quality of the lakes catchment.

“A major impact on these results was the decision to apply alum dosing, which is key for algal growth meaning there are now less favourable conditions for weed growth and algal blooms. . .

New Zealand Young Farmers Appoints New CEO, Terry Copeland:

New Zealand Young Farmers is pleased to announce the appointment of the new CEO, Terry Copeland. After twelve years of service to NZYF as CEO, Richard Fitzgerald is stepping down.

Mr Copeland, comes to Young Farmers with an arsenal of experience from management, sales and marketing and supply chain management to tertiary teaching, journalism and being a brand ambassador.

His latest post was with Treasury Wine Estates, the second largest wine company globally. He led the export strategy and the supply chain team for four years. . .

MPI To Work with Farmers On Blackgrass Biosecurity Response:

Federated Farmers is working with the Ministry for Primary Industries (MPI), and other stakeholders to ensure that blackgrass is not established in New Zealand, following the news of a potential blackgrass incursion in mid-Canterbury.

“The seed was spilt between Ashburton and a seed dressing plant in the Methven area and is a serious threat to arable farming in New Zealand,” says David Clark, Federated Farmers mid-Canterbury Grains Chairperson.

“We have just one chance to get this right and we commend MPI for identifying and informing us of this restricted weeds presence.

“Federated Farmers is firmly committed to working collaboratively with MPI and the Foundation of Arable Research to mount a credible response. . .

Synlait joins the ‘Good News Club’

Federated Farmers is thrilled that Synlait has increased their forecast milk price of $8 per kilogram of milk solids.

“Synlait has joined the ‘Good News Club’ at a time when dairy farmers needed some reassurance in the strength of the market,” says Willy Leferink, Federated Farmers Dairy Chair.

“It has been a tumultuous time for the dairy industry this past month, but it is clear from Fonterra, Westland and Synlait that the demand for New Zealand milk is stronger than ever. . .

Wool Prices Continue to Rise:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the 9,400 bales of North Island wool on offer this week saw a 98 percent clearance and significant price lifts in some sectors compared to the last sale in the South Island on 29th August.

The weighted indicator for the main trading currencies lifted by 1.05 percent, however resurgence in wool prices in other markets coupled with limited supply locally, bypassed any currency impact with the market lifting between 3 and 10 percent.

Mr Dawson advises that Fine Crossbred Fleece and Shears were 3 to 6 percent dearer. Good Style Coarse Full Fleece were 5 to 6 percent stronger with poorer styles lifting by 7 to 10 percent. . .

Rural Equities annual profit slides 31% on property revaluations, drought; lifts dividend:

(BusinessDesk) – Rural Equities, the farming group controlled by the Cushing family, reported a 31 percent drop in annual profit as property revaluations lagged behind those from a year earlier, and as the North Island’s worst drought in seven years ate into operating earnings.

Net profit fell to $10.9 million in the 12 months ended June 30, from $15.8 million a year earlier, the Hastings-based company said in a statement. Profit included a gain in the 27-farm property portfolio of $4.9 million, smaller than the $14.3 million revaluation in 2012. Operating earnings declined to $2.1 million from $2.9 million as the drought increased the cost of feed, and the farms received lower prices for milk, sheep and wool. . .

 Eastpack Celebrates 30 Years of Packing Kiwifruit:

Leading kiwifruit post harvest supplier, EastPack has celebrated 30 seasons of packing kiwifruit. EastPack, which began in Edgecumbe and was originally called Rangitaiki Fruitpackers Co-operative, is now New Zealand’s largest post harvest kiwifruit operator, following its merger earlier this year with Satara.

Chief Executive Tony Hawken has led the company through 30 years of continuous growth.

“From day one, we have always had, and continue to have, a reputation for looking after our growers no matter how challenging the circumstances,” Mr Hawken said.

“As a grower-owned company, EastPack growers share in the company’s financial success. We consistently deliver industry-leading orchard gate returns (OGR) through our operational efficiencies, inventory management and our grower-owned structure.” . . .

Sacred Hill scores high in Gimblett Gravels Vintage Selection:

Hawkes Bay’s Gimblett Gravels has selected its top wines from an outstanding 2011 line up and Sacred Hill Vineyards is the only producer to have two wines make the grade in the prestigious Annual Vintage Selection (AVS), recording the highest scoring wines in two categories.

The selection of wines from the 2011 vintage was made this week following a tasting by one of the world’s most highly respected Masters of Wine, Andrew Caillard of Australia.

Gimblett Gravels producers were allowed to put forward no more than three wines each for the tasting with a maximum of two from any winery eligible for the final selection of 12 wines. Only wines scoring 93 points out of 100 or more were selected. . .

Rural round-up

Teaching Farm Wins Top Award in East Coast Ballance Farm Environment Awards:

A well-known Hawke’s Bay station and training farm has taken out the Supreme title in the 2013 East Coast Ballance Farm Environment Awards.

Smedley Station and Cadet Training Farm also collected several category awards at a special Ballance Farm Environment Awards (BFEA) ceremony on March 7, 2013.

Managed by Terry and Judy Walters, the 5054ha (3186ha effective) sheep, beef and deer farm near Tikokino, northwest of Waipukurau, is home to 22 cadets who are presented with a wide range of learning opportunities during the two years they live and work on the property.

BFEA judges said the intensely scrutinised station sets and achieves high benchmarks.

 “As a working farm Smedley not only practises profitable and sustainable management, it also teaches this ethos to tomorrow’s agricultural leaders.” . . .

Environmentally conscious couple asked to teach others:

An environmentally-conscious farming family in Waikato is being brought on board by Fonterra as part of a project to restore signifcant waterways around the country.

Andrew and Jennifer Hayes farm an 88 hectare dairy farm between two peat lakes – Kaituna and Komakorau (co-mark-a-row), at Horsham Downs in Waikato.

The Hayes have won environment awards for their guardianship of those lakes and Fonterra has asked them to share their knowledge with fellow farmers. . .

Survey Reveals Huge Pasture Investment:

In the past four years New Zealand farmers have sown enough new proprietary pasture seed to cover more than 1.5 million ha of land, new data shows.

“That’s the equivalent of just over 6600 average sized dairy farms,” says Thomas Chin, general manager of the New Zealand Plant Breeding and Research Association (NZPBRA).

Based on tonnages of seed sold for the four years ending 31 December 2012, the data is a NZ first and reveals the ‘colossal’ potential and effect of proprietary plant varieties on NZ farms.

“What this clearly shows is that farmers are using well-bred, well researched, proven plant genetics to get the best out of their land, and their animals,” Chin says. . .

Brown paddock recovery plan – growing grass after the dry:

 Livestock management may have been farmers’ number one priority during recent dry weeks – and rightly so – but now it’s time to think about pastures too.

“We realise you need to look after livestock, however pasture is what’s going to fuel your recovery after rain, and it will be your main feed for the next 12 months,” says senior agronomist Graham Kerr.

“Continued dry conditions in the last three weeks have dramatically changed the pasture situation on many farms, and pasture renewal programmes need to change likewise.”

The best practice in this type of year is to assess all pastures on the farm, and divide paddocks into three categories. This information can then be turned into proactive pasture renewal and pasture management plans. . .

Ambitious Young Winners in Auckland Hauraki Dairy Awards:

At just 28, the 2013 Auckland Hauraki Sharemilker/Equity Farmer of the Year, James Courtman, is young, ambitious and already successful.

Mr Courtman won the title and $14,000 in cash and prizes at the region’s Dairy Industry Awards dinner at the TelstraClear Pacific Events Centre in Manukau last night.

“I entered the awards for the first time to challenge myself, to develop better goals, and to try and win!” he said. In February he contested the regional Young Farmers Competition final, winning the AGMARDT agri-business challenge. . .

Last chance for Aorangi Young Farmer:

Next weekend will be Phil Campbell’s last chance at a Grand Final in the ANZ Young Farmer Contest. At 31, the last year for eligibility, the sheep, beef and cropping farmer will be the oldest competitor in the Aorangi Regional Final being held at the Methven Showgrounds and Heritage Centre, Saturday 16 March.

Eight competitors will be vying for a spot at the Grand Final in Auckland 16-18 May and their share of a considerable prize pack worth $13,000 thanks to ANZ, AGMARDT, Lincoln University Scholarship, Ravensdown, Silver Fern Farms, Honda, and Husqvarna. . .

Cavalier Congratulates Speed Shearers:

The Golden Shears ‘Big Bang’ speed shearing event shows that New Zealand’s reputation for world class shearing is in good hands, says Cavalier Woolscourers Ltd (CWS).

The ‘Big Bang’ is part of the annual Golden Shears programme of events, and sees world class speed shearers compete in Senior and Open grades.

“CWS congratulates Brett Roberts – who topped a Seniors field of 29 contestants with a time of just 34.5 seconds – and Digger Balme, whose 28.92 seconds saw him triumph in the Open section,” said Nigel Hales, CEO of Cavalier Wool Scourers. . .

Wool prices continue firming:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the combined North and South Island auction offering of 24,400 bales saw a 91 percent clearance and a firm to dearer market across the board.

The weighted indicator for the main trading currencies was practically unchanged compared to the last sale on 28th February, firming by 0.23 percent.

Mr Dawson advises that the Fine Crossbred Fleece was generally slightly dearer with the shear types firm to 2 percent stronger. . .

Rural round-up

Labour spokesperson’s quad confusion gets it sort of right:

Federated Farmers welcomes the belated support of Labour to reclassify quad bikes as agricultural vehicles, given the Federation has lobbied for this change.

“While we welcome Labour’s change of heart, it is a shame it did not come when Federated Farmers submitted for quad bikes to be reclassified as agricultural vehicles,” says Ian Mackenzie, Federated Farmers Transport spokesperson.

“Unfortunately for Iain Lees-Galloway, Labour’s Transport Safety spokesperson, he doesn’t seem to know that quad bikes

Gisborne Milk Co-op survival bid washed away by Fonterra ‘perfect storm’

Gisborne Milk Co-op survival bid washed away by Fonterra ‘perfect storm’ – Paul McBeth:

Gisborne Milk Co-op, the 66-year-old Bay of Plenty dairy supplier in liquidation, has lost a last-ditch bid to get back shares and supply arrangements with Fonterra Cooperative Group.

In the High Court in Auckland, Justice Rebecca Ellis turned down Gisborne Milk’s claim that Fonterra breached its empowering legislation, saying the Bay of Plenty firm made its own commercial decisions to surrender shares in the cooperative. The Dec. 17 judgment was published on the Justice Ministry’s website this week.

“It is difficult not to think of the shareholders Gisborne Milk as sailors caught in a perfect storm,” Justice Ellis said. “It is impossible not to have considerable sympathy for them. But none of their claims can succeed.” . .

are not and have never been classed as an agricultural vehicle. They are in fact classed as an ‘all-terrain vehicle.’ . . .

nternet paves way for southern merchants – Tim Fulton:

The days of wool merchants operating like “rag and bone men” have given way to flexible, efficient trading online, a large Canterbury operator says.

As a shed-buyer Mainland Wool is comfortable handling loads from one bale to 1000, using the Wool Online system to keep cost to a minimum.

The five-year-old company has become the biggest wool merchant in the South Island and is convinced of the value in electronic sales, which have become a fixture for southern operators.

One of Mainland’s three owner-operators, Dean Harrison, said online sales were ideal for them as an alternative to auction centres like Christchurch and Napier. . .

Satara boss Wilson takes final jab at Zespri fees in outgoing update – Paul McBeth:

Departing Satara Cooperative Group boss Tom Wilson has taken a stab at Zespri International’s brokerage fees at the expense of growers in his last update to shareholders.

The Te Puke-based kiwifruit and avocado grower is still in talks with Zespri, which controls the nation’s kiwifruit exports, over its 6% brokerage rate on gross sale proceeds and 6% of FOB sales, which Wilson says is costing growers between $60 million and $140 million every year.

“I continue to be amazed at the politics, patch protection and commercial arrogance that prevents this money going to growers – this should have been sorted years ago,” Wilson said. . .

‘Green’ Americans underpin price of beef – Jonathan Underhill:

It is possible to be too cute about cause and effect, but America’s determination to reduce greenhouse gas emissions and bolster its fuel security ultimately benefits New Zealand beef farmers.

The Energy Independence and Security Act of 2007, which contains the expanded Renewable Fuel Standard known as RFS2, calls for 36 billion gallons of biofuels to be added to America’s transport fuel supply (excluding jet fuel) by 2022 from a target of 16.55 billion gallons in 2013.

Of the 2022 target, the amount from corn starch-derived ethanol is capped at 15 billion gallons. The drive for mandatory minimum volumes of biofuels began in 2005 and was a shot in the arm for corn growers. Ethanol from sugar cane and biodiesel from soy are also recognised by the Environmental Protection Agency which administers RFS2. . .

Top International Wine Media Eagerly Anticipating Nelson International Aromatics Symposium:

A select group of the world’s most influential wine commentators will be descending on the small country village of Upper Moutere, near Nelson in early February to taste, compare and discuss Aromatic wines.

They include internationally recognised wine experts Matthew Jukes and Jamie Goode from the UK, David Lawrason from Canada, Alder Yarrow and Jordan McKay from the USA, Cees van Casteren and Cuno Van’t Hoff from the Netherlands, Felicity Carter from Germany and Jan Arrnhenius and Jan Peterson from Sweden alongside some of New Zealand’s top wine commentators. . .

Demand Lifts Wool Prices:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the combined North and South Island first wool auction for 2013 resulted in a strong market based on recent increased buying interest particularly from China.

Of the 21,900 bales on offer, 90 percent of the offering sold. The weighted indicator for the main trading currency compared to the last sale on 19th December was practically unchanged, lifting only 0.05 percent and having no impact on prices. . .

The ANZ Contest is heating up:

The District Finals are completed, the Regional Finalists have been found, and the anticipation is building because the next phase of ANZ Young Farmer Contest is about to begin. The ANZ Young Farmer Contest, now in its 45th year, is New Zealand’s Ultimate Rural Challenge, inspiring excellence, showcasing innovation and growing human capabilities.

District Finals are the entry level for the Contest and over 300 New Zealand Young Farmer members from throughout the country entered in one of 23 District Finals held in the last few months of 2012.

Each District Final was organised and run by a team of local volunteers. . . .

Beef + Lamb NZ has a competition to win dinner with the three Iron Maidens here.

And from Medical Humour:

Rural round-up

Water measuring to allow more efficient measurement:

Environment Minister Amy Adams has welcomed the effective start of new regulations that require for the first time significant water takes to be metered, as part of a wider programme to improve fresh water management.

From tomorrow, all significant water takes (more than 20 litres per second) need to be metered. Smaller water takes down to five litres per second will gradually be covered by the regulations so that by 2016, about 98 per cent of consented water will be measured.

“It is time to get serious about how we use water in this country. It is a replenishable resource but a finite resource at a given time and place,” Ms Adams says. . .

Youth no bar for contractor – Sally Rae:

Geoff Scurr was just 16 when he bought his first bulldozer.

Two years later, the hard-working East Otago teenager bought a contracting business.

He was determined to prove to a few critics, who thought he would never make it work because he was so young, that they were wrong.

Geoff Scurr Contracting Ltd recently celebrated its 25th anniversary with a function at the East Otago Events Centre, attended by several hundred people.

The business now employed six staff, along with casual workers when needed. Forestry work was a major component, along with irrigation dams, installing fibre-optic phone cables, subdivisions, farm work and quarrying. . .

Underlying Strength To Wool Market:

Mr John Dawson, General Manager, New Zealand Wool Services International Limited reports that although the South Island sale saw several categories at slightly lower price levels than last week’s North Island sale, there is still steady demand and a general underlying strength to the market.

Of the 10,362 bales offered this week, which was considerably more than anticipated, 75 percent of the offering sold. The passed-in wools were predominantly lots with inflated grower reserves.

The weighted indicator for the main trading currencies was unchanged compared to the last sale on 1st November. . .

New Zealander to head world dairy organisation:

Dr Jeremy Hill, Director Research Science Technology & Development at Fonterra Co-operative Group Ltd, is President-Elect of the International Dairy Federation (IDF); the first New Zealander elected to that role in its 109-year history.

“This is truly a major moment for New Zealand on the world stage,” says Willy Leferink, Federated Farmers Dairy chairperson speaking from the IDF summit in Cape Town.

“Dr Hill will serve a four year term effective from this Friday and is, I believe, the first time a New Zealander has ever headed the world body for the dairy industry. As one of the Kiwis at the IDF we are very, very proud. . . .

88 ENTER DAIRY AWARDS IN FIRST WEEK

Exactly 88 entries have been received in the 2013 New Zealand Dairy Industry Awards, since entries opened just one week ago.

Entries in the New Zealand Sharemilker/Equity Farmer of the Year, Farm Manager of the Year and Dairy Trainee of the Year are being accepted online at www.dairyindustryawards.co.nz. They close on December 20.

Mrs Keeping says there have been 24 entries in the sharemilker/equity farmer contest (up from 18 at the same time last year) and 34 entries in the farm manager contest to date. . .