Rural round-up

October 2, 2018

Fonterra’s China farms are a target for asset sales – Keith Woodford:

This is the first of a two-part series putting Fonterra’s China Farms under scrutiny. In this first part, the focus is on the origins of how Fonterra managed to entrap itself in its loss-making China Farms project.

Fonterra’s new leadership team of Chair John Monaghan, CEO Miles Hurrell and CFO Marc Rivers has made it clear in recent farmer meetings that debt reduction is a priority.  All options are supposedly on the table. However, the only way to achieve rapid debt reduction is by selling non-strategic assets. In that context, Fonterra’s China Farms must surely be lined up in the cross wires.

Fonterra’s China Farms have been loss-making for at least four years. Accumulated losses over that period, using market prices rather than internal transfer prices, total NZD $179 million EBIT.  These losses are before any contribution to Fonterra’s unallocated overheads of nearly $500 million per annum or paying interest on the borrowed capital. More detail on that in Part 2 of this series. . .

Planting a billion trees – Primary Land Users Group:

How does that relate to the Waikato Region under PC1?

The Government has set a goal to plant one billion trees over 10 years (between 2018 and 2027).

Why plant 1 billion trees?

The short answer is because trees absorb carbon dioxide (CO2) from the atmosphere and turn it into wood, which holds carbon for as much as hundreds of years. Trees absorb CO2, protect the soil, improve water quality and create wildlife habitat
.

The long answer is because New Zealand has committed to reduce greenhouse gas levels which contribute to climate change. It has three reduction targets – for 2020, 2030 and 2050
.

Urbanitess keen for a career in dairy :

One in five of all people wanting to take up a dairy apprenticeship is coming from New Zealand’s biggest city, and Primary ITO chief executive Linda Sissons says many more will be needed where they came from.

Primary ITO (industry training organisation) and Federated Farmers are celebrating the first year of the joint Federated Farmers Apprenticeship Dairy
. . .

Have your say on the dairy herd management scheme:


The Ministry for Primary Industries (MPI) wants to hear from the dairy industry and people with an interest in how the dairy herd improvement regulatory regime can help to ensure that New Zealand’s dairy industry remains world leading
.

The dairy herd improvement regulatory regime has not been comprehensively reviewed since it was established in 2001, says Emma Taylor, MPI’s Director of Agriculture, Marine & Plant Policy.

“It’s important the dairy herd improvement regulatory regime reflects the changing needs of the dairy industry. It’s timely to look at how the regulatory settings can better support industry both now and into the future
. . .

Consuming milk at breakfast lowers blood glucose throughout the day :

A change in breakfast routine may provide benefits for the management of type 2 diabetes, according to a new study published in the Journal of Dairy Science. H. Douglas Goff, PhD, and the team of scientists from the Human Nutraceutical Research Unit at the University of Guelph, in collaboration with the University of Toronto, examined the effects of consuming high-protein milk at breakfast on blood glucose levels and satiety after breakfast and after a second meal. Milk consumed with breakfast cereal reduced postprandial blood glucose concentration compared with water, and high dairy protein concentration reduced postprandial blood glucose concentration compared with normal dairy protein concentration. The high-protein treatment also reduced appetite after the second meal compared with the low-protein equivalent.

“Metabolic diseases are on the rise globally, with type 2 diabetes and obesity as leading concerns in human health,” Dr. Goff and team said. “Thus, there is impetus to develop dietary strategies for the risk reduction and management of obesity and diabetes to empower consumers to improve their personal health.” . .

Capacity crowd expected at inaugural ‘Beyond Bovis’ seminar:

 Hundreds of farmers and rural professionals are expected to attend the inaugural ‘Beyond Bovis’ seminar in Hamilton next month

Held in conjunction with the Waikato A&P Show the event is, according to the Director of Showing Waikato, Doug Lineham, the first of its kind in New Zealand, its goal being to rebuild and strengthen the New Zealand cattle industry in the wake of Mycoplasma Bovis (Mb
).

The impact of (Mb) has extended beyond the breeding and animal containment strategies of individual farms to a widespread impact on the movement of all cattle,” Doug Lineham said. . .

 


Rural round-up

September 20, 2018

Scratching beneath the surface of Fonterra’s accounts – Keith Woodford:

Fonterra’s loss of $196 million for the year ended 31 July 2018 has left nowhere for the Fonterra Board to hide. Wisely, it has chosen to take the loss on the chin. In line with this, it has completed the jettisoning of CEO Theo Spierings. Two of its most experienced directors (Wilson and Shadbolt) are also departing.

Fonterra plans to now take stock of the situation before charting a path to the future. However, the latest Fonterra communications at farmer meetings are emphasising debt reduction.

A black and white sort of a guy
New Chairman John Monaghan has been described to me as a black and white sort of a guy. That might be exactly what Fonterra needs; someone who calls a spade a spade and cuts through the public relations massaging that bedevils Fonterra
. . .

Synlait nearly doubles profit in tenth year of operation:

Synlait has reported a net after tax profit (NPAT) of $74.6 million, almost double the NPAT of $39.5 million announced for the same period last year.

The results for the financial year ending 31 July 2018 (FY18) were achieved in a period of large investment, and a renewed focus on the future.

An increase in finished infant formula sales helped to drive this profit, which was enabled by a number of investments in the blending and consumer packaging space. . .

Comedy night to highlight rural wellness:

A group of Kiwi comedians are set to hit the road for a series of shows designed to get farmers off the farm and laughing.

Farmstrong, a group which promotes rural wellness, has helped organise five further comedy nights after a successful sold-out first show in Waikato.

The initiative is also supported by NZ Young Farmers and the Rural Support Trust. They say it aims to help highlight the issue of mental health and wellbeing, and are a way for farmers to take a break. . .

Apropos of this, Farmstrong has a wellbeing check list.

New boss aiming for more talent – Pam Tipa:

To hit targets and ensure a flow of young talented people coming into agriculture requires connecting with everybody.

This is the view of Lynda Coppersmith (48), who takes over as Young Farmers chief executive on October 1.

”If that means we need to do more to connect with women and show young women there is a career path, then let’s do it,” says Coppersmith. . .

Waimea Dam Bill widely supported at first reading:

Support has been welcomed from National, Labour, NZ First and Act parties for the introduction of the Tasman District Council (Waimea Water Augmentation Scheme) Bill that saw 112 votes in support to eight opposed and its referral to the Governance and Administration Select Committee, Nelson MP Nick Smith says.

“This Bill is the last critical piece of work required to enable the construction of this dam in the Lee Valley and resolve the long term problems of water security and river health on the Waimea Plains. The project has full resource consents and the $100 million in funding required from horticulturalists, Government and Council. This Bill is about resolving the issue of access to the land for the reservoir in the Mount Richmond Forest Park. . .

Urgent cull of South Island’s Himalayan tahr population ordered by Conservation Minister – Holly Carran:

The Conservation Minister Eugenie Sage has ordered an urgent cull of the Himalayan tahr population across the central South Island, claiming the numbers have reached destructive levels.

The Department of Conservation (DoC) wants to remove 10,000 tahr on public conservation land, including the Westland/Tai Poutini and Aoraki Mt Cook National Parks, over the next ten months. 

The Tahr Liaison Group – made up of organisations with hunting interests and Ngāi Tahu, will help reduce the numbers by hunting an extra 7500 – overall halving the population if successful.  . .

Walking Access Commission appoints new Chief Executive:

The Walking Access Commission, the Government’s expert agency on public access to the outdoors, is pleased to announce the appointment of Ric Cullinane as its new Chief Executive.

Mr Cullinane has been the Commission’s Operations Manager since 2010, and brings a wealth of knowledge and experience to his new role. . . 


Rural round-up

September 14, 2018

Fonterra loss could be opportunity for change – Andrew McRrae:

Dairy farmers are hoping the massive financial hit taken by Fonterra will be used as an opportunity to reset the business for the future.

The dairy cooperative delivered a net loss of $196 million for the year ended July, after being hit by compensation payouts and investment write downs.

Revenue rose 6 percent to $20.4 billion.

Orini farmer Allan Crouch said even though a loss had been signalled, it was still very disappointing, especially compared to the $734m profit the year before. . .

Fonterra ponders Beingmate future as part of strategic review – Nikki Mandow:

(BusinessDesk) – Fonterra is looking at whether it should get rid of its disastrous Beingmate investment as part of an ‘everything up for grabs’ strategic review.

Speaking as the company announced the first full-year loss in its 18-year history, chairman John Monaghan said the company was doing a “full stocktake and portfolio review looking at all our major investments, assets and joint ventures to see how they are performing and where they fit with our strategy”. Beingmate was a key investment under the spotlight. . .

Co-op must do better:

The Chairman of Fonterra’s Shareholders’ Council Duncan Coull has said he is extremely disappointed with the Co-op’s 2018 Annual Results.

“There’s no denying that our farmers are unhappy with current performance, and this year’s results,” he said.

“The underlying result and its impact on earnings, dividend and carrying value is totally unacceptable and one that our farming families will not want to see repeated. Moving forward, it is imperative that our business builds confidence through achievable targets and at levels that support a higher carrying value of our farmers’ investment. . .

A thoroughly modern-day forward-thinking farmer – Pat Deavoll:

If ever there was the epitome of a thoroughly modern-day Kiwi farmer, the new Federated Farmers South Canterbury president would be it.

Jason Grant does it all. He owns and manages two dairy operations and a 1000 hectare dry stock farm, is a director of an irrigation company, an active member of two river catchment groups, a husband to Anna and father to Ruby (11), Oscar (12) and Wills (13), and of course, in his Federated Farmers role, an advocate for the local farming fraternity.

That he has a lot on his plate is an understatement. He says his life is “pretty full.” . . .

Farmers deserve recognition for their hard milk slog – Lyn Webster:

We are living in fantasy land where many people seem to think money grows on trees.

Well, it bloody well doesn’t!

Warning: I am grumpy because I have just lost my job due to impeding farm sale – more on that later.

About 25 per cent of New Zealand’s overseas revenue is generated by dairy farming, which is done by about 36,000 people.  That’s not many people to bring in a huge chunk of the country’s income.  

When the payout drops, which can happen overnight, it can affect your dairy farming business very badly very quickly.  Milk prices are volatile, sensitive to international demand and currency changes. Farmers put their seasonal plans in place, including stock numbers and a budget – if the milk price plummets, you pretty well have to suck it up because you haven’t got much wiggle room. . .

Funds run dry for beekeeper working to eliminate deadly parasite – Maja Burry:

A West Coast beekeeper says his bees are resistant to the varroa mite but that decades worth of work may be lost unless he can urgently pull together enough money to keep his business running.

Varroa mites infest bee hives, feeding on larvae and an infected hive usually dies within three or four years.

Westport beekeeper Gary Jeffery said he wanted to eliminate the parasite by distributing mite-resistant queen bees that he has bred around New Zealand. . .

Fonterra changes vindicated– Hugh Stringleman:

The calibre of new directors and nominees for the Fonterra board vindicates the governance changes and the downsizing of the board and outweighs the initial loss of experience, departing director Nicola Shadbolt says.

Her decision not to seek a fourth three-year term is in accordance with the guideline of nine years as the optimum and 12 years as the maximum.

The three candidates for vacancies around the board table announced last Monday are one-term sitting director Ashley Waugh along with Jamie Tuuta and Peter McBride. . .

Deer market doing well – Ashleigh Martin:

The deer market is achieving well at the moment, New Zealand Deer Farmers Association chairman John Somerville says.

“Venison prices are the best they’ve ever been and the velvet has been really stable for six or more years with some really good pricing.

“We’re hoping for slow steady growth of the deer market


Good and bad news in Fonterra’s annual report

September 13, 2018

Fonterra’s annual report has both good and bad news:

The good – last season’s payout dropped a cent but is still the third highest the company has achieved.

The bad – a net loss after tax of $196 million.

Federated Farmers Dairy Chairperson Chris Lewis says the company must do better.

“That’s the first full-year loss in their 18-year history. From a $745 million profit last financial year to a $200 million loss – that’s a big drop and they simply must do better. But I’m confident they’ll turn things around.”

Chris says farmers and shareholders will be looking for the new chief executive and chairperson to hit the ground running.

“I hope those two have a new broom for the shop floor. Good communication will be key.” . . .

Highlights:

  • Total Cash Payout for 2017/18 season: $6.79
    • Farmgate Milk Price $6.69 per kgMS
    • Dividend of 10 cents per share
  • New Zealand milk collections: 1,505 million kgMS, down 1%
  • Sales volumes: 22.2 billion Liquid Milk Equivalents (LME), down 3%
  • Normalised sales revenue: $20.4 billion, up 6%
  • Net loss after tax: $196 million
  • Normalised EBIT: $902 million, down 22% 
  • Normalised gross margin: 15.4%, down from 16.9%
  • Return on capital: 6.3%, down from 8.3%
  • Normalised earnings per share: 24 cents
  • Gearing ratio: 48.4%, up from 44.3%
  • FY19 forecast Farmgate Milk Price: $6.75 per kgMS
  • FY19 forecast earnings per share range: 25-35 cents 

It might be easier for a new chair and new, albeit acting, CEO to make the necessary changes to improve performance than it would had the board and management stayed the same.

Director elections are underway and could bring in some fresh talent that will help the process.

The media release continues:

Fonterra CEO Miles Hurrell says the Co-operative’s business performance must improve.

“There’s no two ways about it, these results don’t meet the standards we need to live up to. In FY18, we did not meet the promises we made to farmers and unitholders,” says Mr Hurrell.

“At our interim results, we expected our performance to be weighted to the second half of the year. We needed to deliver an outstanding third and fourth quarter, after an extremely strong second quarter for sales and earnings – but that didn’t happen.”

Mr Hurrell says that in addition to the previously reported $232 million payment to Danone relating to the arbitration, and $439 million write down on Fonterra’s Beingmate investment, there were four main reasons for the Co-operative’s poor earnings performance.

“First, forecasting is never easy but ours proved to be too optimistic. Second, butter prices didn’t come down as we anticipated, which impacted our sales volumes and margins. Third, the increase in the forecast Farmgate Milk Price late in the season, while good for farmers, put pressure on our margins. And fourth, operating expenses were up in some parts of the business and, while this was planned, it was also based on delivering higher earnings than we achieved.

“Even allowing for the payment to Danone and the write down on Beingmate, which collectively account for 3.2% of the increase in the gearing ratio, our performance is still down on last year.”

Mr Hurrell says when looking at the underlying performance of the business, which you can see in the normalised EBIT of $902 million, progress has been made in moving more milk into higher value products.

“While sales volumes were down 3% in FY18, a larger proportion of milk was sold through Consumer and Foodservice and Advanced Ingredients. In fact, 45% of our sales volumes were through these businesses and this is up from 42% in FY17, despite the higher input-price environment.

“Our Consumer and Foodservice business grew in all regions, except Oceania, with our strongest growth in Greater China. Of particular note, our Consumer business in China broke even this year, two years ahead of schedule. A big contributor to this success is the popularity of Anchor, which is now the number one brand of imported UHT milk in both online and offline sales in China.

“Despite this progress, performance across the Co-operative was below our expectations. Based on this, the Board has decided to limit our dividend to just the 10 cents paid in April and has confirmed the final Farmgate Milk Price for the 2017/18 season at $6.69 per kgMS,” added Mr Hurrell.

Plan for the future:

Mr Hurrell says these results are not just numbers – they’re the livelihoods of the Co-operative’s farmers and their families and the investment of unitholders.

“There are people depending on us – farmers, unitholders and employees who want to be part of a successful Co-operative. We are putting in place a clear plan for how we are going to lift Fonterra’s performance. It relies on us doing a number of things differently.

Fonterra’s Board and Management has outlined a plan based on three immediate actions:

  1. Taking stock of the business Fonterra will re-evaluate all investments, major assets and partnerships to ensure they still meet the Co-operative’s needs today. This will involve a thorough analysis of whether they directly support the strategy, are hitting their target return on capital and whether it can scale them up and grow more value over the next two-three years. This will start with a strategic review of the Co-operative’s investment in Beingmate.
  2. Getting the basics right – Fonterra has already begun taking action and fixing the businesses that are not performing. The level of financial discipline will be lifted throughout the Co-operative so debt can be reduced and return on capital improved.
  3. Ensuring more accurate forecasting – the business will be run on more realistic forecasts with a clear line of sight on potential opportunities as well as the risks. It will also be clear on its assumptions, so farmers and unitholders know exactly where they stand and can make the decisions that are right for them and their businesses.

And the outlook for the coming season:

The forecast Farmgate Milk Price for the 2018/19 season is held at the $6.75 per kgMS Fonterra announced at the end of August and the Co-operative’s forecast earnings per share range for FY19 is 25-35 cents.

At $6.75 per kgMS the forecast Farmgate Milk Price for the 2018/19 season is the third consecutive year of strong milk prices. That’s good for farmers and for rural economies where farmers spend 46 cents of every dollar they earn.

Chairman John Monaghan says the Co-operative is being clear with farmers and unitholders on what it will take for the Co-operative to achieve the forecast earnings guidance.

“For the first time we are sharing some business unit specific forecasts. Among others, these see the Ingredients and Consumer and Foodservice businesses achieving an EBIT of between $850 million and $950 million, and between $540 million and $590 million, respectively.”

“FY19 is about lifting the performance of our Co-operative.

“We are taking a close look at the Co-operative’s current portfolio and direction to see where change is needed to do things faster, reduce costs and deliver higher returns on our capital investments.

“This includes an assessment of all of the Co-operative’s investments, major assets and partnerships against our strategy and target return on capital. You can expect to see strict discipline around cost control and respect for farmers’ and unitholders’ invested capital. That’s our priority.”

The results are here.

 


Rural round-up

September 9, 2018

Make jobs attractive to youth – Neal Wallace:

Farmers need to change their approach to employment conditions to encourage more people to work for them, Federated Farmers employment spokesman Chris Lewis says.

Low regional unemployment is making staff recruitment more challenging but there are already fewer people choosing agricultural careers.

To be competitive farmers need to consider more than just pay but also rosters, hours of work, housing, the workplace environment, pressure of the job and ensure they meet their legal payroll and time-recording obligations. . .

Annual results will put Fonterra under microscope – Sally Rae:

Scrutiny from farmers is expected next week when new chairman John Monaghan and recently appointed interim chief executive Miles Hurrell front Fonterra’s 2017-18 annual results presentation.

While commodity price fluctuations were “part and parcel” of the reality of being a dairy farmer, grumblings about Fonterra’s corporate performance have been growing, Westpac senior economist Anne Boniface said.

From an historical perspective, prices remained at relatively robust levels and, at $6.50, most farmers would be in positive cashflow territory. . . 

FENZ urges caution on controlled burns – John Gibb:

Large, controlled burn fires at Northburn Station, near Cromwell, produced huge smoke clouds on several days this week, but burned without any problems, Fire and Emergency New Zealand said.

Otago principal chief rural fire officer Graeme Still, of Dunedin, said permitted fires at Northburn had produced large clouds of smoke on Monday, Wednesday and yesterday, but finished without incident.

Fire conditions were suitable at Northburn, partly because remaining snowpack restricted any potential fire spread, he said yesterday. . . 

Wool recovery continues – Alan Williams:

Wool prices made another step forward at Thursday’s Napier sale, building on the gains of a fortnight earlier.

After a disappointing start to the season prices have lifted in the last few weeks and strong wools in the 35-37 microns range were up by another 4% to 5%, PGG Wrightson’s North Island auctioneer Steven Fussell said.

Second-shear wools were mostly up by similar margins on a fortnight earlier with good style 2 to 3 inch fibre length ahead about 7%. . .

On the farm: our guide to what’s been happening rurally:

What’s happening on farms and orchards around New Zealand? Each week Country Life reporters talk to people in rural areas across the country to find out.

North Island-Te Ika-a-Māui

The week finished off much better than it started in Northland. Mid-week the Far North town of Kaitaia had its second 13 degree day of winter – that’s chilly for them. A cold southerly is blasting through and apparently farmers are “right up against it” for pasture. Any strongly kikuyu dominant sward is very slow growing; rye grass is going okay but patches of it are few and far between on most farms. . . 

Fruit exports boost wholesale trade in June quarter:

Fruit exports drove wholesale trade sales up in the June 2018 quarter, Stats NZ said today.

The seasonally adjusted total sales value for wholesale trade rose 2.6 percent in the June 2018 quarter, following a modest 0.3 percent rise in the March 2018 quarter.

Five of the six wholesaling industries had sales rises in the June 2018 quarter. The largest industry increase was in grocery, liquor, and tobacco wholesaling, which was up 3.0 percent ($236 million). . . 

Deer milk hits the spot as finalist in NZ Food Awards:

Pāmu’s deer milk is on the awards stage again with today’s announcement that it is a finalist in two categories in this year’s New Zealand Food Awards.

The NZ Food Awards have been a highlight of the food sector for over 30 years and aim to demonstrate innovation, creativity and excellence in the food industry in New Zealand. . .

z


Fonterra forecast drops 25c

August 31, 2018

Fonterra has dropped its forecast payout for the current season by 25 cents.

Fonterra Co-operative Group Limited today revised its 2018/19 forecast Farmgate Milk Price from $7.00 per kgMS to $6.75 per kgMS.

Fonterra Chairman, John Monaghan, said the change was in response to stronger milk supply signals coming from some of the world’s key dairy producing regions.

“Over the past quarter, we have seen increased milk supply out of markets including Europe, the US and Argentina. These regions have a big influence on the supply and demand balance and therefore global prices. For example, the one per cent increase in US milk production represents just under 100 million litres of extra milk.

“At the same time, demand for whole milk powder and dairy fats is showing signs of slowing in some parts of Asia, Africa and the Middle East,” added Monaghan.

Fonterra CEO, Miles Hurrell, said the weakening NZD/USD exchange rate had only partially offset the decline in global dairy prices, and it was important to give farmers a realistic assessment of the market.

“It’s still very early in the season and a lot can change over the coming months. A drop in the new season Milk Price forecast will be frustrating to our farmers, but it’s important we give them the facts so they can make informed decisions in their farming businesses,” said Hurrell.

The timing of today’s update is in line with DIRA requirements for Fonterra to review the Milk Price every three months. The Co-operative last considered the Milk Price in May.

This isn’t unexpected and $6.75 is still a reasonable amount, though no-one should bank on that not being revised down again.


Rural round-up

August 21, 2018

Anti-glyphosate zealots want ag to use more fuel, chemicals and cut food output – Tim Burrow:

Sensationalist headlines about glyphosate have been plastered across media worldwide for the past week.

This followed the decision of a Brazilian court ruled to suspend the registration of glyphosate until national health regulatory agency completes a toxicological re-evaluation – which could take a couple of years.

Within days of the that ruling, the Californian Superior Court ruled that Monsanto was liable in a lawsuit filed by a man who alleged the company’s glyphosate-based products caused his cancer. . . 

Dedication to fruit industry recognised – Yvonne O’Hara:

Earnscy Weaver has been a familiar figure in the Central Otago horticultural scene all his life.

His contribution as a consultant, research liaison officer, industry body board member and leader was recognised when he was made a life member of Horticulture New Zealand at its conference last month.

However, he was in the United States talking to orchardists about recent developments with cherries, and will receive the award later.

He was delighted with the honour and was pleased as it also acknowledged the support of his wife Irene and family. . . 

Cookie Time founder Michael Mayell bets on a future of hemp – Aimee Shaw:

After 35 years in the biscuit business, Cookie Time founder Michael Mayell is heading in a new food direction: hemp seeds.

The snack food maker turned social entrepreneur is now advocating a future of hemp smoothies and other edibles.

Christchurch-based Mayell founded Cookie Time in 1983, aged 21, and has been on a “food journey” ever since.

His foray into hemp followed three months of researching the future of food. He’s now hooked. . . 

 

Why is Fonterra so bad at international ventures? – Keith Woodford:

Fonterra’s recently appointed Chair John Monaghan, in announcing the appointment of interim CEO Miles Hurrell, said that Fonterra wants to pause and reassess the way ahead.  This could be a breath of fresh air.  It needs to be a wind of change.

A starting question has to be why has Fonterra been doing so badly with its international ventures. This includes both international processing of milk and marketing of consumer-branded products. In the case of China, it also includes farming.

The so-called Fonterra Communications Division, but in reality the Fonterra Propaganda Division, has done a stalwart job over many years of painting over the cracks. But even those skilled operators have been unable to cover up some of the recent messes, particularly in China, but also elsewhere. . . 

OneFortyOne purchase of Nelson Forests confirmed by Overseas Investment Office:

OneFortyOne (OFO) has received confirmation that the Overseas Investment Office has approved its purchase of Nelson Forests. The completion date for the purchase will be Tuesday the 4th of September 2018.

Nelson Forests, currently owned by investment funds advised by Global Forest Partners LP, is a vertically-integrated plantation and sawmill business in the Nelson Tasman and Marlborough regions of New Zealand.

“We are very pleased that approval has been granted by OIO. The decision is important, providing certainty for the Nelson Forests’ team, customers, the region and the broader NZ forest industry. We look forward to being a strong contributor to the region,” said OFO’s Chief Executive Officer, Linda Sewell. . . 

Manawatu agtech start-up raises $900k seed investment:

A Palmerston North-based start-up company, Koru Diagnostics, has had impressive success with its first funding round.

Koru, which is developing cost-effective laboratory and rapid farmside tests, was substantially oversubscribed when it closed its seed funding round recently with close to a million dollars.

CEO, Rhys McKinlay, is very happy with the outcome. “We raised over $900k, mostly from angel investors, which will give us a commercialisation runway through until late 2019. These funds will be directed towards product development and commercial scale-up, protecting our IP and securing new commercial partnerships,” he says. . .

Horticulture signs up to prestigious Ahuwhenua Trophy:

Horticulture today signed up to be part of the prestigious Ahuwhenua Trophy Te Puni Kōkiri Excellence in Māori Farming Award, which recognise excellence in Māori farming.

Today, Horticulture New Zealand chief executive Mike Chapman and Kingi Smiler, Chairman of the Ahuwhenua Management Committee, signed an agreement that will see a horticulture Ahuwhenua Trophy in 2020. Each year the awards recognise a farming sector and horticulture will be on a third year rotation, after dairy (2018) and sheep and beef (2019). . . 

New Queenstown wine tour company will capitalise on booming industry:

With local family and tourism connections dating back three generations, a Kiwi couple are looking to make their mark on the booming Queenstown wine tourism industry.

Husband-and-wife to be Emma Chisholm and Lee Saunders have launched Alpine Wine Tours, a new wine experience offering unique, personalised and ‘adult-only’ experiences for every wine-lover.

Central Otago’s wine tourism industry is heading into a boom period, following research by Tourism New Zealand and New Zealand winegrowers showing that around 25% of international tourists seek out a wine experience, (increasing to 42% for those who visit to cycle or play golf). . . 


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