Rural round-up

October 8, 2017

Story of Hakataramea farrmer and his sausage dog subject of new children’s book – Jody O’Callaghan:

The instant bond between a South Canterbury farmer and his vertically-challenged sausage dog is the stuff legends are made of.

An unlikely friendship formed the day miniature dachshund Poppy was handed to Hakataramea farmer James Hayman. It has become the subject of children’s book Bob n Pops, their nicknames.

Author Harriet Bremner, Hayman’s partner, has released the book nine months after the 27-year-old was killed in a farm accident in January. . . 

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Irish love their farmers why don’t kiwis? – Peter Burke:

During the election campaign NZ farmers – and the rural community in general – came under attack from politicians and the public, and felt they were being demonised.

This is in sharp contrast to what’s happening 20,000km away in Ireland, where the people are proud of what their farmers do. Peter Burke reports.

In Ireland the public are proud of what their farmers are doing, says Padraig Brennan, director of markets for Origin Green. . . 

Run by Bord Bia (the Irish Food Board), Origin Green is a highly successful quality assurance programme that most of Ireland’s dairy farmers have signed up to; o have the nation’s major food and drink manufacturers, some beef farmers and even major retail outlets such as McDonalds restaurant chain. . .

Poo is powering a Southland dairy shed – Sonita Chandar:

Poos and wees are heating and lighting up a cowshed in Southland.

In what could only be described as an environmental game-changer, Glenarlea Farm, one of Fortuna Group’s farms in Southland, is converting effluent methane into electricity.

Dairy Green agricultural and engineering consultant John Scandrett says the new system has been 13 years in the making and is now generating enough electricity to power the cowshed and heat the shed hot water. . . 

Reducing nutrient losses wins dairy science award:

Investing in cutting edge science paid off for the Pastoral 21 (P21) research team from DairyNZ and AgResearch at the 2017 Kudos Science Excellence Awards.

The P21 team won the Agricultural Science Award for the research, being applied on commercial farms across the country, that has helped increase productivity while lowering the environmental footprint through the reduction of nutrient losses.

The research has led to 30-40 percent reductions in nitrate losses on farm.

Small changes have led to big environmental gains, says DairyNZ principle scientist Dr David Chapman. . . 

Polish Dairy to join Fonterra’s Global Dairy Trade platform from Nov 21 – Rebecca Howard:

(BusinessDesk) – Polish Dairy, the fifth largest producer of milk in the European Union, will join Fonterra Cooperative Group’s Global Dairy Trade platform from Nov 21, initially offering skim milk powder, whole milk powder, butter and lactose on the platform.

“Central Europe has become an increasingly important dairy region. The addition of a seller from Poland is evidence of the emerging strength of that nation’s dairy sector, and will be welcomed by our network of over 500 registered GDT Events buyers,” said Eric Hansen, director of Global Dairy Trade in a press release. The platform, which has moved more than US$20 billion in dairy products since it launched in 2008, is looking to broaden its offering to meet customer needs. . . 


Rural round-up

August 21, 2017

Labour needs to provide detail on water charging policy:

New Labour Party leader Jacinda Ardern’s plan to charge water royalties for commercial bottlers and irrigation schemes is a pre-election crowd pleaser.

It capitalises on the outrage some people feel when they read of pure New Zealand water being shipped off in bottles overseas for the profit of foreigners. The idea that revenues raised can be redirected into cleaning up our stressed and polluted waterways also speaks to valid environmental concerns.

But the policy has come out of nowhere, and the lack of detail is worrisome. Voters could be excused for thinking it is a glib, once-over-lightly headline-grabber.

If they find themselves on the Treasury benches after next month’s election, Labour might learn the lesson with water that US President Donald Trump learned with healthcare – who knew that it could be so complicated? . . 

Te Mana brings the fat back into lamb to appease even the harshest critics – Pat Deavoll:

Chef and co-owner of the Wanaka Gourmet Kitchen, Dale Bowie reckons he can get even the most ardent critic to enjoy a lamb rack thanks to a product called Te Mana Lamb.

“We’ve had customers here say they don’t like lamb, but when others on their table start saying how great it is, they try some and think it’s brilliant,” Bowie says.

A generation of Kiwis has grown up with the mantra that fat is bad, yet Bowie’s table guests are told that Te Mana Lamb has a high level of Omega-3 fatty acids and polyunsaturated fats that are good for you. . .

Poo-powered electricity, hot water – Pam Tipa:

A biogas recovery system using methane from dairy effluent to generate electricity and heat water was one of three finalists in the Energy Technology of the Year award in the 2017 Deloitte Energy Excellence Awards.

The system was installed by John Scandrett of Dairy Green Ltd with Fortuna Group Ltd.

The ground-breaking project implementing a prototype methane recovery system on a 950-cow farm in Southland has demonstrated for the first time commercial viability of this technology within a cool climate, says Dairy Green in its award entry. . .

Getting off the well-worn farm track – Jamie Gray:

New Zealand’s farming model will have to change as lab-grown meat gobbles up the low-cost market, and Landcorp can lead the way, says chief executive Steven Carden.

Carden, who heads up the country’s biggest farming company, says the old model – producing bulk commodities at low prices – has served the country well for the last century or so.

Until now.

“We see headwinds coming around the traditional protein farming model, [that’s] meat and milk,” he says. . .

Selling our meat is a game of two halves – Craig Wiggins:

Over the past few months I’ve emceed a fair share of rural awards and conferences where mention of synthetic proteins and insect flour scared many a middle-aged farmer.

The talk that’s being shouted from on high about being prepared for these new products to take over the world of food production as we know it was more than enough to cause many a listener to question their future as sustainable farmers of the future.

A synthetic steak, a petri dish hamburger and cricket flour chocolate mudcake all sound like a taste test from hell. However, we’re being led to believe these products won’t only be palatable but taste more like the real thing than the real thing. . .

FMG board revamp:

Three agribusiness leaders have been elected to the board of rural insurer FMG.

Geoff Copstick, Murray Taggart and Steve Allen were elected by FMG members at its annual meeting in Hanmer Springs this week.

Copstick was chief financial officer of Gallagher Group in Hamilton for nine years. He is now on Gallagher’s board and chair of its audit and risk committee. Copstick also serves as an independent advisor to Northland Regional Council on finance, audit and economic development issues. . .

Scarred country creates pest nest – Tim Futon:

Earthquake damage has helped gorse, broom and pest animals fan out across Kaikoura.

Kaikoura’s pest liaison committee chairman Derrick Millton said the region faced an explosion of deer, goats and possums.

Parts of the Clarence back-country were full of Red deer and there was serious risk of more erosion and fouling of waterways if they weren’t kept in check, he said. . .

Two NZ wineries sold to fine wine start-up – Lauren Eads:

Two prominent New Zealand wineries have been acquired by a newly-established fine wine company co-founded by the man who launched Craggy Range and a US-based wildlife conservationist.

Pyramid Valley Vineyards in Waikari, North Canterbury, and Lowburn Ferry Wines, Central Otago, have both become the first purchases of Aotearoa New Zealand Fine Wine Estates Limited Partnership (ANZFWE) – a new venture between Brian Sheth, sole director of US-based Sangreal Wines LLC, and Steve Smith MW, sole director of LandbaseWineNZ Ltd. . .


Green’s not for growth

May 3, 2013

The Green party is soliciting funds for its election campaign with an email that says:

 . . . National’s policies of more mining, weakening environmental protections, poor economic management and growing inequality are not the recipe for a fair society and a better future.

 In contrast to National, we have the ideas to deliver a richer New Zealand. . .

Green is supposed to be the colour of growth but these Greens are really reds promoting the policies that have failed in the past.

Take their plan to bring down the exchange rate. Prime Minister John Key says currency intervention and printing money won’t work:

. . . “It didn’t work very well for Argentina, or Venezuela or Zimbabwe and it could never be done in New Zealand at the sort of magnitude we’ve seen in the United States,” said Key.

As for the New Zealand dollar versus its United States counterpart, Key used a seesaw analogy.

“It’s a bit like being a seesaw and if I weigh 85 kilos and you weigh 170 kilos, I’m going to go up when you sit on the seesaw and you’re going to go down. And that’s really the situation we’ve got at the moment.”

“We kind of weigh 85 kilos and the United States weights 850 tonnes. Right up to this point it (the US) has been very unwell. It has got everything from aids to bird flu. It has really been pretty unwell so the market’s just massively adjusting what they’re doing.”

When people say the Reserve Bank should be printing money, Key said you wouldn’t do that with base rates – the Official Cash Rate – at 2.5%.

“All you do is cut interest rates for a start off. The second thing was even if you printed money, it’s never going to work. I think they’ve printed US$5.5 trillion in the US. I mean it’s massive. So what would we print? NZ$50 billion or something? It wouldn’t make an iota of difference.”

“So my view would be I know we want to get the exchange rate down and I know it’s hurting a lot of companies. But it’s a cycle you’re going to have to ride through and all the Government can do is control the things that are in our control. So get out there and reform the Resource Management Act, make sure we don’t spend too much money, make sure we keep pressure off interest rates, manage the place well,” Key said. . . .

The reds want to increase the burden of government, their policies will lead to higher interest rates and they haven’t a clue about good economic management.

. . . Furthermore, he said intervention in the currency markets never works.

Here Key cited an example from his previous career at Merrill Lynch, where at one time he was head of global foreign exchange. One of Merrill Lynch’s biggest clients was the Bank of Japan, which used to intervene in the currency markets through Merrill Lynch.

“To tell you how bad it got, one night we were sitting there and the Bank of Japan rang up and the US$-yen was about 90 or something and they didn’t want it to go down lower. And the guy said to me ‘I want you to start buying dollars at 90’. And I said ‘how many do you want me to buy’, and he said ‘well, I’m going out for three hours so I’ll give you a yell when I get home.’ And I said ‘yeah, but how many do you want me to buy?’ And he said ‘I’m going out for three hours, don’t you understand the conversation?’

“I bought US$4.5 billion in three hours. He said ‘where is it (the US dollar-yen exchange rate)’ and I said ‘it’s 90, you bought US$4.5 billion. And he said ‘ah, well I’m off to bed now give me a ring in the morning’,” said Key.

“It never worked, it just never worked. I don’t know how much money they lost on intervention but it was massive.” . . .

Who do you believe – someone who has worked in international finance and has managed the country through the global financial crisis or people who want to print money and whose power policy would have a chilling effect on on private investment? Rob Hosking writes:

. . . There is something essentially frivolous about anyone who would cheerfully rip up the value of some of the country’s largest firms, and the value of the investment in those firms, simply for a political positioning exercise.

This is why the exchange caught by TV3 between Green energy spokesman Gareth Hughes and party spin zambuck Clint Smith was so telling.

For those who missed it, Mr Hughes was asked if the party was pleased at the reaction: Mr Hughes paused, turned to Mr Smith and asked “Hey, Clint – are we pleased?”

It was telling that he even had to ask.

But the almost palpable glee coming out of the Green and Labour camps at the destructive impact of their policy is highly revealing. 

It underlines – not for the first time – the problem with the makeup of both parties. They are dominated at the MP and the staff level by the sub-genus homo politicus.

That is, they are full of people who have done nothing in their lives apart from politics. All parties have a complement of this group, but with Labour and the Greens the group has reached critical mass.

This group has been involved in politics at university, moved from there to various political/union offices and then into parliament. 

There is little real world experience and everything is viewed through a very narrow prism of political advantage.

It’s the sort of attitude which means the value destruction seen this week can be just laughed off.

There will, unless we are careful, be more such frivolous policies to come.

I would use a far stronger word than frivolous and the business community certainly isn’t taking it lightly.

In an open letter to LabourGreen they say the policy would harm jobs, growth and investment, causing interest rates to rise, reducing KiwiSaver retirement savings and making people less well off.

. . .Business shares your concerns about constantly rising power prices and their impact on our global competitiveness. Businesses and consumers work hard every day to minimise their spending on electricity in order to stay in business and

to make their household budgets stretch further.
However, we do not think that electricity policies based on subsidies and greater state control are the right answers. Such policies have been tried in the past and have been shown to be incapable of meeting the challenges of a modern economy
with a complex, real-time electricity market.
 
Putting aside the sheer complexity of their implementation, policies that protect businesses from the full costs of the inputs they use ultimately dull the incentive to innovate and make them less, not more internationally competitive. Reducing retail
prices below the full marginal cost of production encourages households to use more than they should.
Of particular concern with the policies announced is their chilling effect on investment across the entire economy.
 
We are especially concerned at investment analyst reports noting the potential for $1.4 billion of shareholder value to be wiped off the books of the private power companies. A similar amount, if not more, will come off the value of the public power companies.
 
 
Capital destruction on such a scale will severely undermine business confidence.
It sends signals to investors, on whom the New Zealand economy relies, that their wealth and the benefits it provides are not welcome.
 
Investment plans and job creation opportunities are foregone.
 
Rather than remote and intangible, this dampening of investment intentions will have a direct and real economic impact on those of all walks of life who seek to accumulate wealth by working hard to save, invest and grow. It causes interest rates
to rise, depletes retirement savings held in KiwiSaver accounts and means that other economic opportunities such as first homes are foregone and new business ventures as savings are unexpectedly reduced.
 
Individuals are less well-off as a result.
 
With the good of all New Zealanders in mind we ask you to withdraw these damaging policies. We offer to work with you in increasing public understanding of the operation of the electricity market and in ensuring consumers, both small and large,
have better choice from one of the increasingly competitive electricity markets in the world.
 
Yours sincerely,
 
 Phil O’Reilly Chief Executive BusinessNZ
 
Ken Shirley Chief Executive Officer Road Transport Forum
 
Catherine Beard Executive Director Manufacturing NZ
 
Ralph Matthes Executive Director Major Electricity Users Group
Chris Baker Chief Executive Straterra

John Scandrett Chief Executive Officer Otago Southland  Employers’ Association

Raewyn Bleakley Chief Executive  Business Central–Wellington

Kim Campbell Chief Executive EMA

Peter Townsend Chief Executive CECC

Michael Barnett Director  New Zealand Chambers of Commerce

These people represent people who employ people, the ones who need certainty and confidence to make investment that creates jobs, earn export income and pay taxes.

These are people who work in the real world.

They know there’s nothing funny about bad policy that would take the country backwards, cost jobs and make us all poorer.

They know that Green isn’t for growth and it doesn’t mean go.

Green economic policy is bright red and it will mean stop to economic growth and job creation.


Real job creation preserve of private sector

August 21, 2011

Quote of the week from John Scandrett, Otago Southland Employers Association CEO:

“If a job gets created by the public sector, or by a charity,  then it’s funded either by tax dollars or donations that were both initially created by the private sector.”   

This doesn’t mean there aren’t necessary and meaningful jobs in the public service and charities. It does mean that funding for them comes directly or indirectly from the private sector.

To ensure the private sector created the maximum number of jobs, everyone had to do their part to ensure barriers were not inadvertently put in the way.   

Barriers could include things like unnecessarily high taxes, too much regulation and difficulties getting consents.   

Those were all things the Government could do something about in a job creating supporting capacity, he said.   

“The Government should concentrate on removing the barriers that get in the way of the private sector creating jobs.”  

More flexible employment law, lower tax rates and a start on reducing the burden of the state under National have removed some of the barriers to job creation in the private sector and there is still work to be done.

But the effort shold be on improving the enviroment which helps the private sector create jobs rather than the government creating jobs itself.


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