Rural round-up

April 6, 2018

Vet companies importing illegal drugs likely source of Mycoplasma – Gerard Hutching:

Officials on the hunt for the source of the cattle disease Mycoplasma bovis have narrowed their search to two properties in the upper North Island and one in Southland, sources say.

Two sources with a close knowledge of the situation said the North Island raids carried out in late March by Ministry for Primary Industries (MPI) officials were related to veterinary businesses importing illegal drugs.

The Southland search involved a farm.

One of the sources said some veterinary pharmaceutical companies sold cheaper drugs not commonly used in New Zealand. . . 

Devastating disease has huge impact on those farmers affected – Joyce Wyllie:

 “It’s just a hill…get over it !” Golden Bay locals often repeat that slogan to visitors who find the long winding trip over the Takaka hill challenging and occasionally nausea inducing.

Getting over that hill has been more of a trial since cyclone Gita’s devastation and on-going closures during required major repairs. Much to relief of travellers, especially freight firms, the road crew are making great progress. We still have queues and convoys to make the trip but now one-lane flow is safe for all vehicles including truck and trailer units. Traffic controllers report 1000 to 1200 vehicles passing through daily which is a surprising number considering only 4000 of us live in Golden Bay.

Last week I left home before daybreak and already a stream of traffic was driving south through Takaka. Looking up from the bottom of the hill I could see dozens of headlights zig-zagging upwards through the blackness. It gives a sense of being on the move together and I wondered at the purpose of all these other travellers. Having to head over at restricted times does mean more organisation, earlier mornings and no chance to pop over and back for an appointment.

But any feelings of being hard done by hold ups and disgruntled about delays and disruptions to my routine and life were put in perspective when I listened to news on the radio. . . 

Woolhandler determined to succeed – Sally Rae:

Pagan Karauria believes it is mental training that has helped her perform so well on the competitive woolhandling circuit this season.

Karauria (29) won the open woolhandling title at the Royal Easter Show in Auckland at the weekend, beating world champion Joel Henare who helped mentor her to the win.

The Alexandra shearer reached more finals than ever before this season, bouncing back from the disappointment of narrowly missing out on a place in the New Zealand team for last year’s world championships in Invercargill.

Karauria was born into shearing royalty; her father Dion Morrell is a master shearer and world record-holder, while her mother Tina Rimene is a former world champion wool-handler.

She attributed her success this season to the mental training, mainly with her father and also some work she had done with Henare. . .

Husband and wife battle for top woolhandling honour – Doug Laing:

The opening day of the New Zealand Shearing and Woolhandling championships in Te Kuiti tomorrow could see a unique piece of matrimonial property decided by a couple whose family exemplify the adage “the family that plays together stays together.”

Ricci and Angela Stevens, of Napier, are currently tied for first place in Shearing Sports New Zealand’s 2017-2018 Senior woolhandling rankings going into the last event, the New Zealand Senior Woolhandling Championship, the final of which will be held late tomorrow afternoon.

Only Dannevirke woolhandler Ash Boyce can deny them the season’s honour, and then only if he reaches the championships final, and they don’t. . . 

Statistics eye-opener during push to connect rural Tararua – Christine McKay:

With 1311km of rural Tararua mapped for Connect Tararua, the results have been a real eye-opener, district councillor Alison Franklin says.

“Of the rural area mapped, 75.5 per cent has no cellphone coverage and 6.1 per cent can access four bars of reception,” she said.

Tararua District Mayor Tracey Collis said the statistics were incredibly powerful, even if some weren’t good to hear.

“Those statistics don’t include Tararua’s three biggest towns, but do include Norsewood.” . . 

Synlait to double lactoferrin capacity following new supply agreement:

Synlait Milk  has secured a multiyear lactoferrin supply agreement[1] that will underwrite an investment of approximately $18 million to double lactoferrin manufacturing capacity at Synlait Dunsandel.

“Lactoferrin is a high value, specialty ingredient used in a range of nutritional food products around the world. This agreement is a major step forward for our growing lactoferrin business and delivers to our strategic commitments,” says John Penno, Managing Director and CEO.

Lactoferrin is an iron-binding protein recognised for its anti-bacterial and anti-inflammatory properties. As a naturally occurring milk protein, it is commonly used in infant formula products throughout the world. . . 

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Good news from Fonterra & Synlait

March 21, 2018

Fonterra has announced an increase in the forecast milk payout:

Fonterra Co-operative Group Limited today increased its forecast Farmgate Milk Price for the 2017/18 season to $6.55 per kgMS and announced a full year forecast dividend range of 25 – 35 cents per share with an interim dividend of 10 cents per share.

Chairman John Wilson says the ongoing strong global demand for dairy and stable global supply are continuing to support global prices, particularly for the important Whole Milk Powder category.

“Farmers will welcome a forecast cash payout of $6.80 – $6.90, which would be the third highest in the last decade. This is also good news for New Zealand as it represents around $10 billion flowing into the country’s economy. However, we are very aware of the challenges many of our farmers are facing this season with difficult weather conditions impacting production.

“While the global supply and demand picture remains positive and we expect prices to stay around current levels, we will be watching for any impact on market sentiment as spring production volumes build in Europe,” he added.

New from China isn’t all good though.

Fonterra’s Greater China business continues to perform well overall but the Co-operative has re- assessed the value of its Beingmate investment so that it reflects a fair value at this point in time.

Commenting on this decision, Mr Wilson says the Board has assessed the carrying value of Beingmate at $244 million and therefore taken an impairment of $405 million. . . 

Synlait Milk has announced a record half-year profit:

Synlait Milk  has reported a half year net profit after tax (NPAT) of $40.7 million for the six months ending 31 January 2018.

This is compared to $10.6 million for the same period last year (H1 FY17).

Synlait’s Managing Director and CEO, John Penno, says the strong earnings growth of $30.1 million has been driven by increases in manufacture and sales of our highest margin products, as well as improved margins and earlier sales of our ingredients products.

“The growth trajectory of canned infant formula has continued with total consumer packaged volumes almost tripling from the same period last year and up 36% on the second half of last year,” he says.

“Our relationship with The a2 Milk Company™ continues to strengthen where we remain their exclusive manufacturer for the important Australia, New Zealand and China market.”

“We have also renegotiated our supply agreements with New Hope Nutritionals and with Bright Dairy, which provides for four-fold volume growth over a five-year period. However, we don’t expect this to impact sales until FY19,” he says.

In the six months to 31 January 2018, Synlait has invested $34.5 million in capital expenditure throughout New Zealand. The major components of this were the Synlait Auckland blending and canning facility ($11.2 million) the new wetmix kitchen at Synlait Dunsandel ($18.4 million). Synlait also established a new research and development centre in Palmerston North. . . 

This is good news for farmers and the wider economy.

The anti-dairying movement gets a lot of attention, much of it based on mis-information and emotion, but that doesn’t change the importance of the industry as a major export earner.

 


Dairy following failed example of meat industry

March 14, 2018

Have we reached peak dairy factory?

The number of dairy factories sprouting in Waikato has got to the stage that farmers are concerned the industry has reached a tipping point.

They fear further growth could lead to overcapacity – too many milk processing sites – and dairying will follow the path of the meat industry, which over the past decade has been plagued by plant closures and job losses. . .

Fonterra Shareholder’s Council chairman and Waikato farmer Duncan Coull​ says it is becoming a national issue for the industry. It is bigger than Fonterra and an industry-wide discussion is needed to find a way to save it from itself.

“Do farmers really want to reach that tipping point because once that tipping point is reached, there is no turning back. We need to start asking ourselves the question as farmers what we want the industry to look like going forward.

“If farmers continue to allow capacity to be built and continued to supply that capacity, be very careful what we wish for, we are another red meat sector waiting to happen and we are another Australian dairy industry waiting to happen.” . . 

Farmers like some competition but it the meat industry found out at great cost – in money and human terms – that it is possible to have too much competition.

Synlait chief executive John Penno​ says the dairy industry is already at overcapacity and the vast bulk of the processing technology built in recent years has been large-scale milk powder plants producing dairy commodities.

“There’s no question in my mind that overcapacity across the industry exists. But the real question is, is it the right capacity? What is the total capacity is the wrong question.”

Synlait does not operate in that market and builds plants focusing on high-end, value-added products. . ..

Farmers are free to choose which company they supply.

A new one might look attractive, especially if it doesn’t require suppliers to buy shares.

But the lesson from the meat industry is that more competition isn’t always better for farmers or the industry.


Rural round-up

January 29, 2018

Raising profile of farm careers – Sally Rae:

Brought up in a Southland farming family, Olivia Ross grew up living and breathing  the red meat sector.

From raising pet lambs to seeing processing chains process the property’s lambs each year, her exposure to the industry was unlimited.

After leaving Takitimu Primary School in the rural township of Nightcaps, she headed to boarding school in Invercargill and that was when her association with, and understanding of, the urban population began. . . 

Strong sales show venison, velvet booming:

Confidence in the future profitability of venison and velvet production has flowed through to the market for sire stags, with strong sales reported throughout the country, Deer Industry New Zealand says.

Breeders reported a marked improvement on last year’s results. Although no stags broke the $100,000 mark, average prices were up strongly for most sales, several by more than 50%. The overall clearance rate was  94%, compared with 83% last year.

Venison schedule prices to farmers normally peak  each year in October before the last chilled shipments leave for Europe for the annual game meat season. This season, prices  continued to rise into January, with the published average now around a record $10.30kg for a carcass in the preferred weight range, DINZ chief executive Dan Coup said. . . 

Better dialogue needed to help bridge divide with farming’s critics – Andrew McGivern:

The weather certainly plays on people’s minds in different ways at this time of year.

Those planning a holiday at the beach naturally have a different perspective to those estimating pasture growth to determine if there will be a feed surplus or deficit for their animals.

Until last year, I would have never said that you can’t get too much rain over that late summer/early autumn period, but the Tasman Tempest closely followed by two cyclones made a liar out of me.

And with the early hot and dry start to summer we had in December, the immediate future for farmers in the Waikato was looking bleak. But we had that rain in early January and have now had a bit of a follow up, so once again the grass is growing, and things are starting to look up.

The decline in milk production has stirred the overseas markets up with GlobalDairyTrade prices improving. That also buoys farmers’ morale, knowing that it is strengthening the milk price. . . 

Synlait’s 2017 / 2018 Forecast Milk Price Remains Steady at $6.50:

Synlait Milk has reaffirmed its milk price forecast of $6.50 kgMS for the 2017 / 2018 season.

However the company has signalled that this forecast is dependent on commodity prices continuing to firm for the rest of the season.

“Our price of $6.50 kgMS has remained in place since May 2017, but global pricing remains unpredictable,” says John Penno, Managing Director and CEO. . . 

No regrets after going robotic – Mark Daniel:

While robotic (voluntary) milking systems appear to be gaining in popularity, the Fisher Farm, between Cambridge and Te Awamutu, has a head start on today’s converts.

Now well into its sixth season, the operation milks 300 cows over 80ha, and lays claim to the title of being the first farm in Waikato to install a DeLaval VMS.

When owner John Fisher first looked at the concept, the farm had a traditional herringbone milking shed without a feed pad, and was operated by two full-time staff and a relief milker.  . . 

 

Booming horticulture exports forecast to soon rise to $5.6b – Jamie Gray:

Horticulture is fast becoming agriculture’s “fourth engine” and will soon rival the meat industry in export receipts, ASB rural economist Nathan Penny says.

The Ministry for Primary Industries, in its latest update, said horticulture’s strong growth is forecast to continue, with exports expected to reach $5.4 billion for the year ending June before rising to $5.6b in the next year.

Meat and wool export revenue is forecast to increase 4.2 per cent to $8.7b in the year, supported by strong red meat prices and increasing exports of value-added products, then to $8.8b the following year. . . 

Hort’s performance worth watching as avocados smash records – Andrew Marshall:

Supercharged activity in several horticulture categories in recent years has prompted Rural Bank to tag the sector as one to watch closely in 2018.

In particular, a couple of notable movers smashing records in domestic and export markets are avocados and oranges.

In the vegetable industry, crops with increasing export market traction and likely price growth in the year ahead include asparagus, celery, broccoli and cauliflower, according to Rural Bank’s Ag Answers research team. . . 


Rural round-up

December 27, 2017

More than 100 people help farming family after tragedy – Andrew Owen:

About 40 shearers and a support crew of more than 60 helped a farming family complete one of the biggest tasks of the year, days after a tragic accident cost the lives of their son and his friend.

Craig “Yopp” Murphy, 31, and his mate Jason Payne, 34, died on December 9 when their ute rolled on a remote, privately-owned farm in Kohuratahi, in the Whangamomona Valley, about 76 kilometres inland from Stratford.

Craig Murphy’s funeral took place on Saturday, December 16, and four days later more than 100 people got to work helping his bereaved parents, Whangamomona Valley farmers Dan and Kathy Murphy, shear their 3400 sheep for free, a task that needed to be finished at the peak of the season before Christmas. . .

Hunter Downs scheme meets share target – Daniel Birchfield:

The 12,000ha Hunter Downs irrigation scheme is to go ahead, after the required number of shares were sold.

Hunter Downs Water Ltd, the company behind the proposal to use water from the Waitaki River on land towards Timaru, held its annual meeting on December 14, when it was expected a decision would be made on whether to proceed or return funds to those who had already made the commitment to take water.

After a delay of several days, Hunter Downs Water Ltd chairman Andrew Fraser announced yesterday the company had “secured sufficient farmer uptake to now enable it to proceed” and finalise the funding structure and contractual arrangements to start construction, which was likely to be early next year. . .

New trapping project already successful – Louise Scott:

A pest control operation to protect native birds in the Rees-Dart River delta is proving successful just one month in.

Glenorchy local Russell Varcoe has built and set four new trapping lines as part of the Routeburn Dart Wildlife Trust’s Braided River Project.

That includes 601 traps — of which 574 had been placed by last Friday.

It is hoped the project will protect five species classified by the Department of Conservation as either endangered or threatened: wrybills, black-fronted terns, banded dotterels, black-billed gulls and black stilts . .

Leading questions: Synlait Milk founder and chief executive John Penno:

Business leaders discuss the year just gone and what will affect them in 2018. Today: Synlait Milk founder and chief executive John Penno.

What is 2018 looking like for your business?

2017 was very busy – after opening a new infant formula blending and packaging facility in Auckland, and nearing capacity at our Dunsandel site, we are entering 2018 looking to build an infant formula manufacturing site somewhere in the upper North Island.

We’ll also be constructing a $125 million world-class milk packaging plant in Dunsandel to supply fresh milk and cream to South Island families through our new partnership with Foodstuffs South Island. . . 

 

 

Rain on Christmas wish-list as drought conditions become critical in outback Queensland – Eric Barker:

With less than half the average rainfall across many parts of western Queensland this year, rain is top of the Christmas wish-list for most graziers.

While widespread winter rain in 2016 lifted spirits, most of central and south-west Queensland has been officially drought declared for the past four years.

Grazier and Blackall Tambo Shire Mayor Andrew Martin said most of the area had been suffering below-average wet seasons before the drought declarations. . .


Rural round-up

December 8, 2017

Dairy not all about milking it:

A Lincoln University pilot study is backing the importance of environmental and social responsibility, as well as the bottom line, to dairy farmers.

Seeing themselves as “guardians of their land” and adopting environmentally friendly ways of farming is a key component of the farmers’ personal convictions.

The study, What really drives dairy production systems: economic rationale or social and environmental responsibility? surveyed owners, share milkers and managers, to format a questionnaire for much larger sample of interviews with farmers, due to take place in January. . .

Day a chance to experience life on a farm – Sally Rae:

When Duncan Wells left secondary school, he was encouraged not to go farming.

It was during the farming downturn in the 1980s and his farming father suggested he get some other skills.

So he became an electrician and worked for a few years before giving in to his passion for the dairy sector.

Now Mr Wells and his wife Anne-Marie are sharing that passion with others – opening the gates of their Outram dairy business, Huntly Road Dairies, to allow the public to experience a taste of farm life.

On Sunday, Fonterra has organised an ”open gates” initiative, with 40 selected farms around the country opening for the day. . . 

Beef + Lamb New Zealand supporting sustainable hill country scientific programme:

A scientific programme aimed at improving the sustainability of hill country for sheep and beef farming is to be launched with the support of Beef + Lamb New Zealand (B+LNZ).

The project, which is backed by the Ministry of Business, Innovation and Employment’s Partnership Scheme, will look at ways to invigorate hill country by developing sustainable production systems.

A strategy and action plan to increase the sustainability of hill country farming (economic, environmental, social and cultural) will be one of the key pr iorities for the initiative.  . . 

NZ Beef prices expected to hold firm in the face of expanding global production:

New Zealand beef prices moved marginally higher in quarter three and are expected to hold relatively firm in the coming months despite expanding global beef production generating intense competition in global markets, according to Rabobank’s latest Beef Quarterly report.

Rabobank animal proteins analyst Blake Holgate said stronger-than-anticipated demand for New Zealand beef in key export markets, combined with restricted domestic supplies and a weakening New Zealand dollar, resulted in a marginal increase in New Zealand slaughter prices in quarter three. . . 

Focus on New Zealand brands needed in face of trade uncertainty:

Uncertainty over Brexit means New Zealand needs to urgently focus on developing brands and differentiating our agricultural exports.

Senior lecturer in Agribusiness Management Dr Nic Lees, said New Zealand produces some of the best fruit, wine, meat, seafood and dairy products in the world but around 70 per cent reaches the consumer with no identification that is sourced from here.

“Sudden changes such as Brexit remind us that relying on undifferentiated commodity exports leaves us vulnerable to sudden changes in government policies,” Dr Lees said.

“When consumers demand a branded product, it is difficult for governments to shut it out of the market.” . .

Fonterra imposes grading system on milk fat with ‘excessive’ PKE, Fed Farmers confirms – Jonathan Underhill:

(BusinessDesk) – Fonterra Cooperative Group has followed through on its work into the impact of palm kernel expeller on the composition of fat in the milk it collects with a grading system that will start in September 2018.

The new system follows consultation with farmers and is the latest step in Fonterra’s efforts to reinforce its Trusted Goodness logo, which is designed to appeal to consumers who want sustainable and ethical practices in food production and is underpinned by New Zealand’s “natural, grass-fed advantage”. But Fonterra’s research has shown that PKE also has implications for dairy product manufacturing and sales in global markets of products such as butter. . . 

New PKE grading system warrants contractual clause change for farmers:

Federated Farmers is reminding dairy farmers and sharemilkers to update existing business agreements as they face joint liability to meet upcoming changes for using palm kernel (PKE) as feed.

Dairy co-operative Fonterra is introducing a grading system next September to measure milk fat composition, which changes with excessive use of PKE impacting on manufacturing capability and seasonal customer preferences.

Fonterra farmers who don’t comply with new recommended levels for cows’ PKE intake will be penalised. . . 

Synlait opens new Wetmix kitchen:

Synlait Milk  has today officially opened its new Wetmix kitchen, which will enable it to simultaneously run both large-scale infant formula spray dryers.

This will double the amount of infant formula powder which can be produced at the Dunsandel site, from 40,000 metric tonnes (MT) to 80,000 MT per year.

“We were at the point where our current Wetmix facility was at capacity, and our consumer demand was continuing to grow. Building this new Wetmix kitchen will relieve that pressure,” says John Penno, Managing Director and CEO. . . 

New arrangement simplifies meat exports to Egypt:

A new arrangement signed recently will simplify New Zealand’s meat product exports to Egypt, the Ministry for Primary Industries (MPI) said today.

Under the new arrangement, Egyptian authorities will no longer have to visit each individual meat premises that wishes to export to Egypt.

The arrangement was signed by MPI Director-General Martyn Dunne and Egyptian Deputy Minister for Agriculture Dr Mona Mehrez in Wellington. . . 


Rural round-up

November 30, 2017

Mouldy hay bale discovery leads to new NZ cheese – Adriana Weber:

A discovery in a mouldy bale of hay has led to a new type of cheese its makers hope will put New Zealand on the map.

Whitestone Cheese, a family-run business based in Oamaru, has discovered a new, local blue mould culture.

Chief executive Simon Berry said he spent about six months trying to find a version of Penicillium roqueforti, originally found in limestone caves in France.

He and his head cheesemaker set out to swab similar caves in Otago, and had come close to calling it quits when they received a timely phone call. . . 

Our world of cheesecraft :

We’re often asked, how many of your cheese recipes come from the New World versus those based on old recipes? Great question…

 Cheese is just like wine, their heritage styles date back to old Europe and Middle East. And just like wine, each little village in Europe put their own twist on cheese recipes to forge their own style. Such as Camembert being from Camembert, while Brie is from Brie.

 This Old World would soon branch out into the new. As civilizations split and expanded around the globe, up popped the New World producers. In the case of wine, California’s Napa Valley, South Africa, Australia, Argentina and New Zealand all joined this group. They each made the most of similar climatic conditions to grow European grape varieties and developed their take on traditional wines.

 It’s exactly the same with cheese. Thousands of miles from the traditional home of Brie and Camembert, at Whitestone we discovered that the local great grass growing combined with fantastic dairy meant we could produce European style cheeses. The result was a Mt Domet Double Cream Brie, Waitaki Camembert and Lindis Pass Brie all named after local source icons, stamping our kiwi regional characteristics to these classics. . . 

Storm hits early crop of cherries – Tom Kitchin:

One Teviot Valley orchardist says between 30% and 40% of his crop was damaged because of the sudden torrential Central Otago downpours.

He has also had to lay off staff for the next 10 days.

Other orchards in the valley and Alexandra-Clyde area have fared somewhat better.

The Teviot Valley orchardist, who did not wish to be named, said his first varieties of cherry, Burlat and Earlise, were severely affected by Sunday’s downpour.

He said his varieties of cherries came earlier than other pre-Christmas and post-Christmas varieties.

About 30% to 40% of his crop was damaged by 50-60mm of rain, so he had to lay off staff.

”Roxburgh’s feeling it at the moment. I employ local people. I feel sorry for them.” . . 

Synlait founder Penno to step down as CEO after 12 years, will remain a director –  Jonathan Underhill:

(BusinessDesk) – Synlait Milk founder and chief executive John Penno is to step down after 12 years leading the Dunsandel-based milk processor, whose shares have almost tripled since listing in July 2013.

Penno will step down in the next 12 months in what the company said would be an orderly transition. He will stay on during an international search for his successor.

Penno, who has spent a total of 17 years with the company, said he was ” looking forward to getting back to my entrepreneurial roots and will be looking for opportunities to get involved with start-ups and young companies, which is where my wife, Maury, and I want to continue to make a contribution.” . . 

Celebrating the Kiwi inventor who transformed dairy farming:

Global dairy equipment company DeLaval today celebrated 100 years since the launch of the world’s first commercially successful milking machine by sharing the story of an unknown Kiwi inventor.

At an event held in Hamilton today, the company recognised the vision and innovation of Norman John Daysh. In the early 1900s, Norman invented the first commercial vacuum-pump milking machine that went on to revolutionize the dairy industry.

Norman’s grandchildren John Daysh and Mary Daysh were the guests of honour at the centenary event. John Daysh said he is thrilled his Grandfather is receiving recognition one hundred years after his machine was launched to the world, saying it’s been an untold story until now. . . 

Famous Cambridge stud sold:

One of the country’s most famous horse studs has been sold.

Cambridge Stud has been sold by champion breeder Sir Patrick Hogan.

It has been bought by businessman Brendan Lindsay, who founded and recently sold the Sistema plastic business, and his wife Jo Lindsay. . .

Strong Farm Machinery Sales Herald Strong 2018:

Sales of tractors are strong and the farm machinery sector is employing more workers, demonstrating a positive outlook in the primary industry, says NZ Tractor and Machinery Association (TAMA) President, Roger Nehoff.

Mr Nehoff said in the year to date (end of October) the total number of tractor sales was up about 11% on the year before with some regions up by 45 to 50%. Overall sales were 3164, compared with 2849 for the same period in 2016 and 2978 in 2015.

In addition, the total number of people employed in the tractor and farm machinery sales and servicing sector had increased by more than 350 since 2015 and was now at 2846. . . 

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