Rural round-up

August 29, 2015

Leave Fonterra to sort itself (or not) – Stephen Franks:

The amalgamation/monolith structure of Fonterra was a mistake. But it is what we have and pulling it to bits now could compound the mistake.

The Fonterra monopoly came from a conjunction of  dairy politics with the instincts of a leftist Clarke Cabinet, at a time when they needed to rebuild trust with business. The Fonterra ‘capture the value chain’ slogans appealed to a Cabinet nurtured on coop=good/big battalions/commanding heights socialism. So they legislatively outflanked the Commerce Commission, relegated official reservations, and created the monolith.

The Herald has an excellent review of the reasoning and the outcomes by Tony Baldwin, an official at key times. But his recommendations could be used to support those who’d like now to pull levers the other way, and impose new structures, equally well meant, equally sloganistic,  and equally without knowing the future any more reliably. . . 

Why hasn’t Fonterra worked? – Tony Baldwin:

Created in 2001, Fonterra was heralded as a ‘breakthrough idea’ meant to help New Zealand ‘catch the knowledge wave’. 14 years on, there’s been no economic transformation, writes Tony Baldwin.

“Potentially better than an oil well,” boasted Fonterra’s founding chairman, John Roadley, in 2002.

“White gold” is another favourite label.

Over many decades, New Zealand has invested massively in raw milk as a pathway to economic prosperity. It’s why Fonterra was formed. . . .

Landcorp strategy of dairy investment over dividends at odds with government’s surplus goal – Tina Morrison:

(BusinessDesk) – Landcorp Farming, which is taking on debt to convert former forestry land into dairy farms, won’t pay a dividend this year, highlighting the friction between the state-owned farmer’s long-term strategy and the government’s demand for regular payments in preference to investment.

New Zealand’s largest corporate farmer posted an 84 percent decline in annual profit to $4.9 million, in line with its forecast of $1 million to $6 million, as revenue fell 12 percent to $213.5 million on weak milk and lamb prices.

Debt rose 25 percent to $222 million, mostly to fund dairy conversions on the 26,000 hectare Wairakei Estate north of Taupo, slated to become the biggest milk producer in the southern hemisphere. Landcorp is 12 years into a 40-year lease to operate and develop the estate. . .

Northland Ballance Farm Environment Awards Recognise ‘Labour Of Love’:

Entering the 2015 Ballance Farm Environment Awards (BFEA) proved a thoroughly enjoyable experience for Northland farmers Ian and Sandy Page.

The Pages own Tahere Farm near Whangarei in the Pataua North district. Previously a run-down unit, the couple has spent many years developing the 162ha farm into a model of sustainability. With the whole title area under QEII National Trust covenant, BFEA judges said Tahere was like a privately owned regional park, farmed in the public interest.

“By entering an open space covenant, Ian and Sandy have invited the world to share their dreams.”

Tahere has about 62ha of indigenous forest. Another 59ha runs sheep and beef and the balance is in production forestry. . . 

Diabetes nutraceutical wins 2015 Proof of Concept grant:

A team developing a nutraceutical that could help regulate blood glucose levels thereby support the treatment of type II diabetes has won the University’s 2015 Proof of Concept grant.

The $50,000 grant, offered by the University’s commercialisation arm, Otago Innovation, is aimed at transforming novel research at Otago into a marketable idea, product or service.

Dr Phil Heyward and Dr Alex Tups of the Department of Physiology are working on the nutraceutical, which involves a plant product. They are collaborating with Associate Professor Nigel Perry of Plant and Food Research and Pat Silcock, the Manager of Food Science’s Product Development Research Centre, who each bring essential expertise to the project. . .

Wine awards recognise top drops from the Bay:

Some of the country’s best viticulturists and vineyards have been recognised for their grape growing skills.

The Bragato wine awards were announced in Hawke’s Bay last night as part of the New Zealand Winegrowers Romeo Bragato conference.

A Villa Maria chardonnay, with grapes grown by Brett Donaldson, won the Bragato Trophy.

And a Villa Maria cabernet sauvignon merlot, made from grapes grown by Phil Holden in Hawke’s Bay, won the champion domaine wine.

Chair of the judges, Ben Glover, said the competition recognises the grape growing behind a top drop. . . 

Inaugural New Zealand Young Winemaker crowned:

A night of nerves, skill and finesse surrounded the all-female finalists of the inaugural Tonnellerie de Mercurey 2015 New Zealand Young Winemaker competition last night.

Hawke’s Bay Winemaker, Lauren Swift took the inaugural title after she battled it out following three days of winemaking challenges at the Romeo Bragato conference.

Lauren says, “It was an extremely tough competition, I’m really thrilled with the result. It’s been such a great opportunity for me, and has already opened a number of doors and given me so much confidence. . . .


Man who made Fonterra

June 8, 2011

In yesterday’s post on rural people who received Queens Birthday honours I made a glaring omission – John Roadley who received a Member of the Order of Merit for services to the dairy industry.

He was the last chairman of the Dairy Board and the first chairman of Fonterra, overseeing the industry’s transition from multiple local co-operatives to a single, farmer-owned company.

Dairying had risen to the top of the farming sector because farmers controlled their industry, invested in research and then adopted the technology in their farms and dairy plants, Mr Roadley said.

He is the man who made Fonterra and the journey from the Dairy Board to the company under his leadership is a blueprint for change.

He had a clear goal, worked out the steps needed to achieve it and got the support of the people involved at every step. The result is a strong farmer-owned co-operative which is competing globally for the good of its shareholders and the country.


%d bloggers like this: