Rural round-up

August 18, 2016

Trade access landscape increasingly crowded – Allan Barber:

At the same time as the TPP is struggling to get across the finish line before the next American President takes over early next year, there are several signs of access to the USA freeing up for some of New Zealand’s competitors.

The announcement of greatest significance concerns access for Brazilian beef after 17 years of negotiations which will be permitted to begin in September. Admittedly Brazilian plants must still gain accreditation before they can export to the USA and, when they do, their entitlement will be included in the ‘other country’ quota of 64,800 tonnes at the same preferential tariff of 4.4 cents per kilo as New Zealand for its 213,402 tonne quota. However, there is a possibility Brazil’s eagerness to export, combined with its weak currency, will encourage it to sell at the 26.4% general tariff rate. . . 

The pros and cons of PKE – Keith Woodford:

In recent weeks, PKE has been in the spotlight.  The key reason for this has been the decision by Landcorp to phase out its use on the Landcorp farms. This has brought back into focus Fonterra’s 2015 recommendation to farmers to only use 3kg per cow per day. It has also given a platform for various other groups to promote their own perspectives.

Amongst the environmental groups, there are two polar perspectives. Greenpeace says we should stop using all PKE. However, the World Wildlife Fund (WWF) says that palm oil production is OK as long as it sustainable, and certified by the Roundtable on Sustainable Palm Oil (RSPO). . . 

A farming mum who loves helping others – Kate Taylor:

Regular visitors to the Facebook site, Farming Mums NZ, will be familiar with an online blogger whose zest for life seems never-ending. Kate Taylor reports.

There’s an element of irony about the name of Chanelle O’Sullivan’s daily blog, Just a Farmer’s Wife, because it couldn’t be further from the truth.

She is, actually, a farmer’s wife, but is also a mother of two, qualified vet nurse, blogger, project manager, 2016 scholar on the Kellogg Rural Leadership Course, guest speaker, online business woman, long-distance runner and admin for several flourishing Facebook pages.

Chanelle lives at Waitohi in South Canterbury with husband Dave, who is working on a farm on Rockwood Rd. He grew up near Timaru and has a Diploma in Farm Management from Lincoln University. . . 

Silver Fern Farms shareholders vote conclusively in favour – Allan Barber:

The long awaited special meeting finally took place this afternoon with the company’s desired outcome. 80.4% of shareholders voting voted in favour of the Shanghai Maling deal, a small reduction from the 82% that voted in favour last October.

At today’s meeting in Dunedin, as soon as the result was announced, it appears John Shrimpton who led the requisition group shook SFF chairman Rob Hewitt’s hand and agreed that democracy had had its say and the campaign was over. . . 

Clear vision for red meat sector in sight at last – Allan Barber:

After many years of relatively low levels of expenditure on market development and promotion, the red meat industry faces a major challenge in deciding how best to create the desired image to appeal to the world’s affluent consumers. Currently expenditure is divided between generic promotion, funded by farmer levies, and brand advertising by the meat exporters, with a small amount of joint funding in some of the less mature markets.

Delegates at the recent Red Meat Sector Conference heard about the importance of telling a believable and emotionally compelling story built on the heritage and healthy attributes of New Zealand and its farming sector. But they were also challenged to make sure this story is constructed on credible building blocks of environmentally sustainable farm, animal welfare and processing practices. . . 

New primary sector groups to support climate change goals:

Two new reference groups will help support New Zealand’s climate change goals and reduce emissions from the livestock and forestry sectors, Primary Industries Ministers Nathan Guy and Jo Goodhew have announced today.

“As part of ratifying the Paris agreement on climate change, New Zealand has set a target of reducing our emissions by 30 per cent below 2005 levels by 2030. The primary sector will need to be an important part of that,” says Mr Guy.

“The Biological Emissions Reference Group will bring together a wide range of agricultural, horticultural and farming stakeholders to collaborate with Government and build a solid evidence base. This will ensure we have the best possible range of information on what can be done right now to reduce biological greenhouse emissions. . . 

Glass half-full for dairy after price lift – Alexa Cook:

Dairy farmers could finally have break-even milk prices this season, AgriHQ dairy analyst Susan Kilsby says.

This season’s forecast of $4.25kg/ms is the third season of prices below $5.

Most farmers need about $5kg/ms to cover their costs, which is about $US3000 a tonne for whole milk powder, the industry’s main export.

In the overnight Global Dairy Trade auction prices lifted by 12.7 percent and whole-milk powder surged 18.9 percent to $US2695 a tonne. . . 

Countdown Egg Producer Programme for Free Range and Barn launches today – Supermarket assures farmers their investment in free range and barn eggs will pay off:

Countdown has today launched an Egg Producer Programme to support free range and barn egg farmers to increase the supply available for Countdown stores and our customers.

The Egg Producer Programme provides farmers an opportunity to increase investment in free range and barn egg capacity, as Countdown will make a commitment to take future supply through individual partnership agreements.

Currently, just 18 per cent of eggs produced in New Zealand are free range. Countdown wants to put in place plans with farmers, to increase the availability of the free range and barn eggs.  . . 

Bill to streamline Food Safety passes first reading:

Food Safety Minister Jo Goodhew is welcoming the Food Safety Law Reform Bill having passed its first reading in Parliament last night, with unanimous support.

The Bill is the final step in implementing the Whey Protein Concentrate (WPC) Inquiry recommendations, in particular those which require legislative change.

“This Bill is an important part of putting the false Botulism scare behind us. It illustrates the Government’s commitment to ensuring the safety and suitability of food, which is vitally important for the health of consumers – both in New Zealand and overseas – and our international trade reputation,” says Mrs Goodhew. . . 

Retirement of Fonterra Director:

Fonterra Co-operative Group Limited today announced that Mr John Waller ONZM will be retiring as an Independent Director on the Fonterra Board with effect from 31 August 2016.

Fonterra Chairman John Wilson said that Mr Waller is retiring to reduce his workload after serving on the Fonterra Board since 2009. He chaired Fonterra’s Fair Value Share Review Committee, the Trading Among Farmers Due Diligence Committee and the Milk Price Panel, and was a member of the Audit and Finance Committee and the Risk Committee.

“John has been an outstanding director of our Co-operative and has made an invaluable contribution by combining his strong personal values, drive and leadership with commercial common-sense. I am pleased that after such a significant contribution John is finding the time to rebalance his commitments so that he can spend more time with his family and pursue his other interests. . . 


Shareholders back SFF

August 15, 2016

Silver Fern Farms’ shareholders have backed the board in its plan to enter into partnership with Shanghai Maling:

A strong majority of 80.4% of votes in favour of the 50/50 partnership with Shanghai Maling reinforced Silver Fern Farms Board’s position that the partnership is in the best interests of shareholders and the Co-operative.

The resounding support from shareholders came at a Special Meeting requisitioned by Messrs John Shrimpton, Blair Gallagher and a group which included 31 other shareholders who supported a statement stating they wanted to stop the $261m investment into Silver Fern Farms.

The 80.4% of shareholders’ votes in support of the partnership follows the result of the October 2015 vote, where 82% of votes cast supported the transaction. Both vote results exceeded the 75% Special Resolution threshold put forward by the Requisitioners. Chairman Rob Hewett said it was pleasing shareholders remained overwhelmingly supportive of the partnership.

“While the Board has clearly stated its view that the outcome of this meeting could not bind the company given the valid and binding approval last October, it is pleasing to see shareholders reaffirm their support and maintain their confidence in this exciting opportunity to create a sustainable Silver Fern Farms,” Mr Hewett said.

Mr Hewett said the partnership would create a strong Silver Fern Farms.

“This partnership will enable us to generate higher, sustainable returns for our shareholders.

“Shareholders have again made it clear they want progress for their company. They want meaningful change and are genuinely excited about the prospects presented through this significant investment and partnership with Shanghai Maling.

“The Board has strongly disagreed with the negative stance on the transaction taken by Messrs Shrimpton and Gallagher. They have caused significant disruption and their actions have been damaging to the company. Their allegations have proven to be entirely unfounded. Independent reviews by both the Financial Markets Authority and the Registrar of Companies have found no issue with the information provided to shareholders in October 2015 or the actions of the Directors.

Chief Executive Dean Hamilton said the process to complete the transaction had continued with all outstanding information now with the Overseas Investment Office for its consideration.

“We remain confident that we will achieve OIO approval prior to 30 September, and proceed to complete the transaction by 4 January 2017 as previously announced.

“The clear message from the voters is to get on with it, and realise this opportunity ahead of us.”

2610 shareholders voted representing 62.15% of eligible votes.

John Shrimpton says he accepts that shareholders have spoken.

New Zealand First which has also been a very vocal opponent of the plan continues to show it doesn’t understand the issue:

New Zealand First says Silver Fern Farms’ shareholders will regret selling majority control of their co-op to the Chinese but expects the Overseas Investment Office will greenlight it at breakneck speed.

“Today was the owners of Silver Fern Farms last chance to preserve one of New Zealand’s great assets for present and future farmers,” Mr Peters says. . . 

“How is it that foreigners can see value in what we produce, but the producers and this government can’t? Meat progressively joins forestry and increasingly dairying to condemn farmers as price takers at the bottom of the heap. . . 

This was a matter for shareholders not politicians.

SFF needs a large investment if it is to survive. Shareholders weren’t prepared to invest more and the company wasn’t able to get other investment from within New Zealand.

If the partnership doesn’t go ahead the company has no future, and even if it does get OIO approval, SFF has a lot of work ahead of it.

The deal leaves Alliance Group as the only co-operative in the meat industries, farmers who prefer that model can choose to support that company.


Rural round-up

May 4, 2016

Frustrating waste of time and money, but it’s the price of democracy – Allan Barber:

The media release from Silver Fern Farms about the requisition for a special meeting to consider the resolution to form a partnership with Shanghai Maling reeks of the company’s frustration at what it sees as a complete waste of time. However, regardless of that frustration, the company has agreed to the requisition and will set a date for the meeting.

A group of 80 shareholders, led by John Shrimpton and Blair Gallagher, has passed the required 5% threshold to requisition the board to hold a special meeting in compliance with the Companies Act. Shrimpton cancelled a meeting with the board which he had arranged for 2nd May and which the board was keen to hold, so its members could learn and understand the purpose and legal justification of the requisition.

Not surprisingly the board sets out a list of very cogent reasons why it considers the requisition a waste of management time and resources, notably 67% of shareholders have already voted with 85% in favour of the deal, SFF would be in breach of contract if it pulled out and there would be no legal obligation on the company as a result of the special meeting. . . 

Females rule in the stud cattle world – Kate Taylor:

With a twinkle in his eye aimed at wife and daughter-in-law sitting at the table with him, David Thomson says “women rule the world” in his business… the cattle business.

“If I was buying a bull, I tried to make sure it had a good dam line behind it,” he says.

“On this rolling to steep limestone country, calves pick up a lot from their mothers, such as temperament and ability to walk. Chances are, if you have a toey cow she’ll have a toey calf and will be culled.” . . 

Rural Health issues brought to the Beehive:

Rural health issues will be brought to the Beehive this week during the Rural Health Alliance Aotearoa New Zealand’s’ (RHANZ) ‘RuralFest’ conference.

RHANZ, which is made up of 42 membership organisations, are gathering in Wellington for the inaugural RuralFest – to discuss and determine the top health and well-being issues facing rural communities.

Rural GP Dr Jo Scott-Jones says RuralFest is a flagship event for RHANZ, who represent a united voice from across multiple rural sector organisations. . . 

Pee could be the key to pest control -Conan Young

A Christchurch researcher may have found a way to dramatically increase the effectiveness of possum traps.

Poison remains the most effective means of controlling possums, but trapping is preferred near towns and cities. Photo: 123RF

At present the success rate for possum traps can be as low as 30 percent, but a new lure which replaces icing sugar with possum urine has increased the kill rate by as much as 25 percent.

Lure creator and Landcare Research scientist Janine Duckworth said possums spent more time at the traps set with urine and were more likely to trigger the trap. . . 

Farmers and cyclists – the dark side of social media – Marc Gasgoigne :

I’m a dairy farmer and I’m also a cyclist. Sometimes I wonder if I’m one of the most hated people in New Zealand.

Whenever dairy farming features in the news there are plenty of knockers queuing up to put the boot in, apparently we are the cause of many of the world’s problems, from global warming to polluting the rivers to abusing baby cows.

But now cyclists are featuring in the knocking machine. First there was the publican in Rangiora who banned cyclists wearing lycra from entering his premises, saying it was offensive to his patrons.

Then there was a Facebook post abusing cyclists, ironically on the NZ Farming page (NZ Farmer has no connection with NZ Farming).  . . 

Farm takeover! Planting GMO corn – Uptown Farms:

Two weeks ago, April 23, was the day I had been waiting for since I successfully coerced my farmer husband into letting me take over sixty acres! 

To read about #my60Acres from the start, go here and scroll down to the bottom!
 
It was finally planting day!   Picking the right time to plant involves a little bit of planning, some major guessing and hopefully some good luck!
 
Long before planting however I worked with Matt to figure out exactly what type of corn seed we would use. . . 


Rural Round-up

May 2, 2016

EU ramps up dairy production again – Keith Woodford:

The EU has now released dairy production statistics for February 2016 and from a New Zealand perspective the news is all bad. Daily milk production has increased 6.5% from January to February. Some increase was expected – February is always higher than January on a daily basis – but the extent of the increase is a surprise.

The combined January and February production is up 7.4% from last year, and February production, once adjusted for the leap year, is up almost 10% on a daily basis from January last year.

There are some glimmers of hope in other parts of the world, and I will come to that later in this article. First, more about Europe. . . 

Silver Fern Farms’ response to requisition for shareholder meeting:

On 13 April, Silver Fern Farms received a requisition led by Mr John Shrimpton and Mr Blair Gallagher, representing a group of 80 shareholders. The requisition is for the Board of Silver Fern Farms to call a special meeting of shareholders to consider the following resolution:

“Resolution: as a Special Resolution:

That the shareholders of Silver Fern Farms Limited (the Company) hereby approve the proposed partnership of the Company with Shanghai Maling and the restructure described in the Notice of Meeting and Shareholder Information Pack dated 28 September 2015 by way of this special resolution of shareholders.” . . 

Quit humanising animal agriculture – Kellie for Ag:

There is a difference between human and humane. I think people are forgetting that very important difference.

The last few weeks I’ve been dealing with animal rights activist on my Facebook page and I was quite stunned at what they were saying to me. One of my ‘favorites’ was, “How would you like it if I raped your mother and killed your father and siblings?”.

This comment bothered me in more than just one way. First of all, don’t you dare threaten my family. Second, humans and cattle are not in the same ‘playing field’. Survival of the fittest isn’t about equal rights for everyone.

If animal rights activist had their way: . . .

Livestock broker tackles broncos – Sally Rae:

He’s a bronc riding, world-record setting “stick-throwing” stock agent.

At just 21, Madison Taylor has already represented New Zealand in two very diverse activities, pipe bands and rodeo.

Now living in the Hakataramea Valley, Mr Taylor works for South Island-based independent livestock broking firm Peter Walsh and Associates. ……….. 

Schools to help name biosecurity puppies:

The Ministry for Primary Industries has proudly welcomed six new biosecurity puppies and is giving New Zealand schools the chance to name one of them.

Working biosecurity detector dog Aria gave birth to the beagle puppies (three boys and three girls) in March. They are collectively called “G-litter”.

The floppy-eared puppies will undergo intensive training to work at New Zealand’s ports and airports where they will sniff out food, plants and other items that could pose biosecurity risk to New Zealand. . . 

Side event chance to connect:

Attend the South Island Dairy Event 2016 in Invercargill and invest in yourself and your business.

That’s the message from Side event committee chairwoman Heidi Williams, who wants dairy farmers to set aside June 20 to 22 for the dairy conference.

Organised by farmers, for farmers, the annual programme was designed to promote thinking and debate, and help like-minded farmers to network and find inspiration, she said. . . 


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