Rural round-up

September 18, 2019

If we undermine farming we undermine our entire economic fabric – Barbara Kuriger:

Like my family before me, and following after me, I’ve always taken great pride in being a dairy farmer, and in the reputation of the New Zealand dairy industry internationally.

My husband and I grew up in a generation where we had the opportunity to buy a farm and build our livelihoods on the land as our family had before us. It has been a privilege to forge an incredible career as a dairy farmer. My husband, Louis, and I are both award-winning dairy farmers and we’re proud of the mark we’ve made on the industry. 

Sadly, the outlook for New Zealand’s primary sector is the worst that I’ve seen in my lifetime. I don’t make this strong statement lightly, nor to scaremonger – but rather to reflect the policy settings under a virtue-signalling government which is setting the dairy industry up for failure. As a rural MP, but more importantly as a farmer, I won’t sit back and allow the ladder to be pulled up behind future generations of New Zealanders wanting to pave their way in the farming sector.   . . 

Dannevirke shearing legend Koro Mullins passes away:

Tributes are flowing in from around the world in memory of Dannevirke shearing identity Koropiko Tumatahi (Koro) Mullins, who died suddenly on Monday at the age of 65.

Mr Mullins was known across all aspects for the shearing industry and sports, from shearer and shearing contractor to a frontman commentating role shearing great Sir David Fagan says set the standard on a global scale.

Born and raised in the Rotorua area, and of Te Arawa stock, he met the-then Mavis Paewai when he was a woolpressing teenager working for her brothers and father in Southern Hawke’s Bay.

It sparked what Fagan says was a unique family involvement and commitment to the shearing and wool industry, becoming the basis of Maori Television series Shear Bro which first aired in July last year. . . 

“Don’t lose hope’ – Pam Tipa:

Farming families and communities keen to do the right thing on water should not lose hope and confidence in the consultation process, says a Canterbury dairy farmer and industry leader.

The Government’s proposed nitrogen target for mid Canterbury isn’t attainable, says Colin Glass.

But that is no reason to give up on the consultation process, he says. “It looks as though there is nothing we could do today that would even come close to achieving that target. It simply means that if that target is not amended, farming as we know it today is not possible. Any form of farming.

“The key thing is that farmers are doing the right thing. Everyone is moving in the right direction. Now is not the time for people to lose faith or confidence in the process. . . 

Radiata pine plantations a band aid to nowhere – Di Lucas:

Climate change policies, the Billion Tree initiative and recent news promote the establishment of extensive pine plantations to benefit Aotearoa New Zealand’s climate change response by sinking carbon. Others have questioned the benefit of short-rotation plantation pines compared to natural regeneration of native forests. Whilst afforestation has an important role in New Zealand’s climate change response, we need to be clear about future implications.

There are both native and introduced tree species that grow fast and others that grow more slowly. Consider along with the speed of sequestration, the total carbon stocks that can be accumulated, and how long sequestration rates can be sustained. These rates depend on whether the forest is permanent and allowed to grow to maturity (i.e. not harvested) or harvested.  

Fast-growing trees such as pines or eucalypts in harvested plantations reach their maximum carbon storage capacity in about 20 years. Landowners then lose most of those carbon stocks when the forest is harvested; NZ loses most of the embedded carbon when logs are exported; furthermore, the globe loses most of those stocks back into the atmosphere as the products decay, as well as through associated emissions from forest management, transport and processing. Thus to store more carbon actually requires another forest to be planted on new land that is not already forested, while also continuing to replant and maintain the previous area in forest to recover the lost carbon stocks. That is, plantation areas will need to be doubled in size with every crop. . . 

Here are three farmers who are taking action on climate change – Rebecca Black:

Waikato dairy farmer Christopher Falconer is parked up on his farm looking out over the wetlands as he talks about mitigating the effects of climate change.

“I don’t make climate change-based decisions for what we do on-farm. I don’t. But as it happens, there’s a great deal of overlap between what is good for the climate, and what is good for all sorts of other things.”

Take riparian planting, the practice of growing plants alongside waterways. The goal is to mitigate nutrient loss and subsidence and stream bank erosion, but it’s also an effective carbon capture.

With nearly half of New Zealand’s greenhouse gases coming from agriculture, farming is under scrutiny and some farmers feel the country has turned its back on them. But by making climate change action part of their everyday work, three farmers says the rewards speak for themselves. . . 

Fonterra’s capital structure is no longer fit for purpose – Keith Woodford:

Fonterra’s delay in announcing its results, driven by Fonterra’s need for discussions with its auditors about appropriate asset values, provides an opportunity to reflect on Fonterra’s capital structure and whether it is still fit for purpose. The simple answer is that it is not.

The value destruction that has occurred and which is now coming to light means that inherent conflicts between the interests of farmer shareholders and investor unitholders have become too great to be papered over. Co-operatives do not survive long-term unless everyone’s interests align.

Two former directors of Fonterra, Colin Armer and Nicola Shadbolt, have both come out recently and said that reworking Fonterra’s capital structure is not the immediate priority. I agree with them. The immediate and urgent priority is to sell assets and create a new slimmed-down and financially-efficient organisational structure, with many fewer high-paid executives. . . 

Physicist Sam Hitchman wins top meat science talent award:

Attracting the best and brightest minds is and remains one of the international meat industry’s top priorities and for Sam Hitchman – a physicist in an industry dominated by biological researchers – the quest to attract new talent has paid off.

The AgResearch scientist recently won the International Meat Secretariat (IMS) Prize for Young Talent in Meat Science and Technology at the International Congress of Meat Science and Technology (ICoMST) near Berlin, Germany.

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Sam Hitchman, who is a postdoctoral research fellow in AgResearch’s Meat Quality team, says he was thrilled with the recognition, while adding he didn’t feel “young” – as his award would suggest – upon his return to New Zealand. . . 

Why going meat-free could damage your health – Luke Mintz:

It was just a few months ago that experts were declaring the end of meat. Earlier this year, consultancy firm AT Kearney predicted that by 2040, animal products will have become so socially and environmentally unacceptable that most “meat” eaten across the globe will come in the form of plant-based or lab-grown substitutes.

But a major study released this week just might put the brakes on the rapidly accelerating plant-based trend. According to Oxford University research, published in the British Medical Journal, vegetarians and vegans have a 20 per cent higher risk of stroke than those who regularly tuck into a plate of bacon and sausages.

The authors of the study, which tracked almost 50,000 Britons for 18 years, said this might be because veggies did not have enough cholesterol in their blood. The finding flies in the face of much conventional wisdom, which says that vegetarianism is a healthy alternative to a carnivorous lifestyle.

But nutritionists say the increased risk of stroke is just one of the many health risks that any would-be vegetarian should be made aware of before they take the plunge. . . 


Rural round-up

August 22, 2019

600 farmers in big water project

Large-scale initiative in Southland expected to have big effect on water quality:

You could say it’s “ace” that more than 600 farmers and multiple agencies are working together to improve water quality in the Aparima catchment area in the deep south.

ACE – otherwise known as the Aparima Community Environment (ACE) project – is a farmer-led initiative in Southland aimed at over 600 farms spread over 207,000 hectares – with 81 per cent of that area developed. It has multi-agency participation with DairyNZ, Beef & Lamb and Environment Southland involved.

The ace thing about ACE, says DairyNZ’s strategy and investment leader for responsible dairying, Dr David Burger, is its enormous scale and the intent to support all land managers in good farming practice. It will also track what happens on every single farm in the six Aparima catchment groups – Pourakino, Lower Aparima, Orepuki, Mid Aparima, Upper Aparima and Waimatuku – and relate this to water quality downstream. . . 

Federated Farmers hails court ruling as a win for Rotorua community:

The voices of farmers in Rotorua, led by Federated Farmers, have been instrumental in the Environment Court’s rejection of Land Use Capability (LUC) as a tool for nitrogen allocation.

Federated Farmers, along with the Lake Rotorua Primary Producers Collective, has been fighting a proposal by Rotorua Lakes Council, forestry and others seeking to allocate nitrogen discharges using LUC methodology.  With evidence from member farmers in the catchment, as well as by engaging experts and consultants, Federated Farmers demonstrated the LUC proposal would fail farm businesses and their communities to the point of potential ruin, Feds environment spokesperson Chris Allen said.

“It would also have had a more uncertain environmental outcome than the original proposal  by Bay of Plenty Regional Council in Plan Change 10,” he said.

“We’re pleased the Court comprehensively rejected the LUC proposal that would have required nitrogen discharge reductions of 80% by dairy farmers and 40% by drystock farmers.  In contrast, the allocation for forestry would have increased six fold. This would have meant that most farmers would have had to lease back nitrogen (that had been transferred to forestry) in order to continue farming.” . . 

Forget about another share trading review – Sudesh Kissun:

Former Fonterra director Nicola Shadbolt says the recent collapse of a few dairy cooperatives should be blamed on their strategy, not their co-op structure.

She says the collapse of Australia’s biggest dairy co-op Murray Goulburn and the demise of Westland Milk co-op on the West Coast is not about their structure.

“It is governance, it is strategy. I mean for every two co-ops that fail there are about a thousand corporates… nobody says of the corporates that it’s their business model. But with co-ops it’s always their business model that is blamed.”

Shadbolt, a fierce proponent of the cooperative model, is aware of moves by some farmers and a few directors to return capital structure to the table. . .

Is there a future for OZ Fonterra as Fonterra’s finances unravel – Keith Woodford:

Fonterra’s announcement that it expects a loss of around $600 million or more for the year ended 31 July 2019 has big ramifications for Oz Fonterra.  With overseas-milk pools now lying outside the central focus of Fonterra’s new strategy, and with Fonterra seriously short of capital, the Australian-milk pool and associated processing assets look increasingly burdensome.

If Fonterra were to divest its Australian operations, then it would demonstrate that Fonterra really is retreating to be a New Zealand producer of New Zealand dairy ingredients. It would also reinforce the notion that consumer-branded products are now largely beyond its reach.

This strategic position is close to where Fonterra was in around 2006, when it decided that it was 50 years too late to take on the likes of Nestlé.  It did have both Australian and Chilean operations at that time but they were smaller than now. It also took on an initial shareholding in Chinese San Lu at that time, but essentially Fonterra saw itself as a New Zealand-based co-operative. . .

Agriculture fears it will be milked by EU free trade deal – Mike Foley:

Australia risks trading away hundreds of millions of dollars in agricultural earnings if it doesn’t negotiate significant concessions from the European Union.

That’s according to industry groups Australian Dairy Farmers and the National Farmers’ Federation, which warned Trade Minister Simon Birmingham the EU will have to reduce its onerous tariffs and import barriers to make a free trade agreement (FTA).

“There would be no point in doing the deal for Australian farmers if we can’t see a realistic and positive outcome from this FTA,” NFF president Tony Mahar said. . . 

Want to protect the planet? Eat more beef, not less – Patrick Holden:

If students and staff at Goldsmiths University really want to help the environment, they should end their ban on selling beef on campus. Far from being the bogeymen portrayed by environmental campaigners, sustainably farmed beef and dairy cattle are integral to maintaining our green and pleasant land, keeping our waterways free of chemicals and feeding our population in the most efficient manner possible.

Two thirds of UK farmland is under grass and in most cases cannot be used for other crops. The only responsible way to convert this into food is to feed it to cattle, which are capable of deriving 100 per cent of their nutrition from grass and therefore are more efficient on such land than chickens or pigs. Even on grassland where crops could be grown, ploughing it up to create arable farms would release huge amounts of carbon into the atmosphere and require the use of pesticides, herbicides and fertiliser, all of which can devastate biodiversity.

Cattle farming does not just help to maintain grassland – it also works to improve the sustainability of existing cropland.  . . 


Rural round-up

August 14, 2019

Mainland venison marketer calls China home – Sally Rae:

When Hunter McGregor established a business in China four years ago, it was pioneering stuff.

Mr McGregor runs a Shanghai-based venison importing and distribution business, working with specialist New Zealand venison producer Mountain River Venison.

There was no market for venison in China and so it had been about creating both interest and demand for the product – “because it doesn’t sell itself”.

What he has also found is that running a business in China is getting harder. And that, quite simply, was “because it’s China”. “It’s the way things are,” he said. . . 

Looming 6A plan deadline pushed out – Sally Rae:

A significant milestone looms for rural landowners in April next year when new obligations are scheduled to come in to play to comply with the Otago Regional Council’s 6A plan change for rural water quality. But if a proposal from staff, headed to a council meeting this month, gets approval from councillors, that date will be pushed out to April 2023, as rural editor Sally Rae reports.

In a nutshell, Otago Regional Council chief executive Sarah Gardner says parts of the much-discussed 6A are working really well – but other parts are not.

And with the deadline just months away, the council did not believe it could enforce what was due to come into effect.

Talking to the Otago Daily Times ahead of the council meeting, Ms Gardner stressed the ORC was “absolutely not” walking away from its responsibilities around water quality, which remained its number one priority. . . 

Fonterra’s losses provide more questions than answers – Keith Woodford:

The forthcoming asset write downs of more than $800 million announced on 12 August by Chairman John Monaghan are clearly damaging to Fonterra’s balance sheet. It also means that Fonterra will now make a loss for the year of around $600 million. However, the implications go much further than that.

The losses mean that Fonterra will need to sell more assets to bring its ‘debt to asset ratio’ under control. The losses also ping back to the balance sheets of its farmer members, where the Fonterra shares are assets against which these farmer members have their own debts. Many dairy farmers are already struggling with their balance sheets, with banks now requiring debt repayments on loans that used to be interest-only.

If these write downs are the full story, then Fonterra will survive. The big question is whether these are all of the write downs, both for now and the foreseeable future. . . 

Farmers are getting more milk from each cow – they deserve a much better performance from Fonterra  –  Point of Order:

This   is the second  chapter  in the  woes  of  Fonterra, and  behind  it   the  dairy industry,  on  which the  New Zealand  economy is  so  dependent.

Point of Order   listed  some of those  woes    last  week.  Now, in the  wake  of  the latest  revelation,  Fonterra  will  have to absorb a loss of between $590m and $675m for the current financial year.

Critics   of the industry have  sprung  to the attack:  Minister of Regional Economic Development Shane Jones is calling Fonterra’s management “corporate eunuchs” and labels Fonterra’s board as “grossly inept”. . . 

Meat prices drive increase in overall food price index:

Rising meat prices drove food prices up in July 2019, Stats NZ said today.

Meat and poultry prices rose 2.8 percent, with higher prices for chicken, lamb, and beef, partly offset by falling pork prices.

Chicken pieces were a big driver of the monthly price rise, up 7.0 percent. The weighted average price in July was $8.61 per kilogram compared to June ($8.05 per kilo). As well as being a big contributor to the monthly change, chicken pieces were up 8.8 percent annually. In July 2018, the weighted average price for chicken pieces was $7.91 per kilogram.

Lamb chop prices reached an all-time high in July, up 1.7 percent. The weighted average price was $17.70 per kilogram compared with $17.41 in June and $16.33 a year ago. . . 

Finding the Will to Live

When Elle Perriam’s partner ended his own life in 2017, she set about changing the lives of others, embarking on a national tour in June to encourage farmers to ‘Speak Up’

New Zealand is in what can only be called a mental health crisis. Around 500 New Zealanders per year die by suicide, and we have some of the highest youth suicide rates in the OECD. The statistics are even worse in the rural demographic, where suicide rates are 20–50 per cent higher than in urban areas. The pressures of agriculture, coupled with the typical stoic, silent culture that permeates rural New Zealand can mean that those who are struggling often find it difficult to seek help, or to talk about their private battles. Geographical isolation can also be a factor, with some farm workers employed on remote high-country stations for months at a time with limited off-farm contact.

In December 2017, 21-year-old North Otago farm worker Will Gregory tragically ended his life, leaving his family, friends and girlfriend Elle Perriam devastated. Following Will’s death, Elle, a Lincoln University student, looked for a way to create positive change in the rural mental health sector, and the idea for the ‘Will to Live Speak Up Tour’ was born. Elle, with the help of her sister Sarah, launched the tour at the Hunterville Huntaway Festival in October 2018, with Will’s black Huntaway Jess as mascot. . . 

It’s a tough time being a farmer these days – Kate Hawkesby:

It’s a tough time to be a farmer these days. I really feel for them. Sure, they’ve been through lots of good and bad times, that’s the nature of farming, but it feels like this current climate is really tough.

Farming seems under fire from the government in a changing climate of new taxes, regulations, rules. it costs more to be on a farm these days. And that’s before we even get to Fonterra.

After massive write-downs of its assets, Fonterra’s forecasting a huge loss this financial year of around $675 million. That’s the second biggest loss since it began 20 years ago. No dividends will be paid to shareholders this financial year. . .


Rural round-up

July 26, 2019

Rural areas face risk form forestry – Steve Carle:

The fabric of our local rural communities could be severely impacted by conversion of sheep and beef farming to forestry if Government doesn’t change its combination of policies on the Emissions Trading Scheme and its stance on the upcoming Zero Carbon Bill. Submissions for this Bill closed on July 16.

In the Tararua District it is likely sheep and beef farms will be largely replaced by carbon farming and our farm service industries will evaporate.

New Zealand forestry is dominated by overseas investors who will likely dominate carbon farming.

“Once an investor has optimised all the benefits from the first cycle of carbon-sink, the land then becomes a carbon and financial liability,” says Keith Woodford, primary consultant at Agrifood Systems. . . 

DairyNZ CEO: make the methane target achievable:

Today, DairyNZ chief executive Dr Tim Mackle appeared before Parliament’s Environment Select Committee to send a clear message to politicians – an unachievable 47 percent methane reduction target would be setting farmers up to fail.

“The New Zealand dairy sector is committed to playing our part in the transition to a low-emissions economy, alongside the rest of the country,” said Dr Mackle.

“We are acutely aware of the importance of looking after the environment and maintaining sustainable and competitive businesses too.

“We know there are costs for our farmers but there are also costs for global inaction. That’s why we are seeking pragmatic and prudent policies that enable action and support our farmers to play their part on climate change. . . 

Townie now award-winning farmer – Annette Scott:

A self-confessed townie who married a farmer, Karen Williams never quite envisaged the path her career would take. She talked to Annette Scott about her journey to top level industry leadership.

The first woman to lead the Federated Farmers’ arable section is a self-confessed townie who married into farming.

“When I give talks at meetings I often start with my I’m a townie confession. Rural provincial townie, not a city slicker,” arable section chairwoman Karen Williams says.

“My journey to industry leadership has been largely driven by my background in resource management.”

Williams and her husband Mick farm arable, sheep and beef in Wairarapa. . . 

Truffle fascination an exciting but risky hobby for Paengaroa couple– Stuart Whitaker:

Truffles are among the most valuable and sought-after of culinary delights.

For a Paengaroa couple, the air of mystery that surrounds the rare fungi has become a healthy obsession that is now a huge influence on their lives.

Colin and Maureen Binns began creating their truffiere – a grove of trees where truffles are cultivated – in 2008. In 2015 they harvested their first Black Périgord truffles.

Last year the truffiere produced around 3kg of truffles during the two-month season, which starts in June. This season, with the help of truffle dog Jed who sniffs them out, they have unearthed around 20kg. . . 

 

Australian millet broom factory tries to resist sweeping changes in consumer culture – Hannah Laxton andKoonce and Cara Jeffery:

As an industry dies around them, two men are refusing to be brushed aside by the passage of time.

On a typical day, Geoff Wortes and Rob Richards make more than 50 brooms by hand at their factory on the edge of the Snowy Mountains.

The brooms are made using millet; the grass fibres appear stiff and uncooperative, however experienced hands mould them with ease.

More than a dozen people worked at the Tumut Broom Factory during the 1970s — now only two remain. . .

Rural life in the past was a battle for survival – Marian L. Tupy:

In my last two pieces for CapX, I sketched out the miserable existence of our ancestors in the pre-industrial era. My focus was on life in the city, a task made easier by the fact that urban folk, thanks to higher literacy rates, have left us more detailed accounts of their lives.

This week I want to look at rural life, for that is where most people lived. At least theoretically, country folk could have enjoyed a better standard of living due to their “access to abundant commons – land, water, forests, livestock and robust systems of sharing and reciprocity,” which the anthropologist Jason Hickel praised in a recent article in The Guardian. In fact, the life of a peasant was, in some important aspects, worse than that of a city dweller.

Before industrialisation, European society was bifurcated between a small minority of the very rich and the vast majority of the very poor. Sébastien Le Prestre de Vauban, a military engineer during the reign of Louis XIV, estimated that the French population consisted of 10 per cent rich, 50 per cent very poor (fort malaise), 30 per cent near beggars and 10 per cent beggars. Likewise, Francesco Guicciardini, an Italian historian and friend of Niccolò Machiavelli, wrote that “except for a few Grandees of the Kingdom [of Spain] who live with great sumptuousness, one gathers that the others live in great poverty”. . . 

 


Rural round-up

July 9, 2019

Uncertainty plus unique ownership structure drive Fonterra share volatility – Keith Woodford:

Fonterra’s shares have been on a steady downward slide for the last 18 months. In January 2018 they were selling at $6.60 dropping to $3.86 at closing on 30 June 2019.

Then this last week things suddenly turned volatile, dropping at one point on 4 July a further 10 percent to $3.45, before rising by six percent to $3.69 at close of trade on 5 July.

The causes of the long-term drop are well understood. Very simply, Fonterra made a loss of $196 million in financial year 2018 largely because of write-down on assets. Fonterra is also now in asset-selling mode to strengthen its balance sheet. Non-farmer investors are coming to understand that, with family silver having to be sold as well as some rubbish disposal, any turnaround is likely to be long-term rather than short-term. . .

One billion tree flawed says climate scientist :

The Forestry Minister Shane Jones’ one billion trees won’t reduce carbon emissions, as too few natives are being planted, climate scientist Jim Salinger says.

The government has allocated $120 million in grants to landowners to plant trees on their properties, and wants two-thirds of those planted to be natives.

Forestry New Zealand figures show in the first year, of the 91m trees planted, only 12 percent were native. . .

Falling log prices may make some woodlots unprofitable – ANZ -Rebecca Howard

(BusinessDesk) – In-market prices for logs in China – New Zealand’s largest export market – have fallen in recent weeks and ANZ Bank warns the drop will make the harvest of some woodlots unprofitable.

While some price softening is not unusual at this time of year as construction activity slows in the hot months, “the scale of the correction was unexpected,” said ANZ agriculture economist Susan Kilsby.

The price of an A-grade log landed in China has fallen from US$130/JAS cubic-metre in early June to approximately US$105/JAS cubic-metre.. .

Vet behind Mycoplasma Bovis detection hopeful for eradication:

The Ōamaru vet, whose efforts led to the identification of cattle disease Mycoplasma Bovis in New Zealand, says she is optimistic the disease can be eradicated.

Earlier this week, Dr Merlyn Hay was given the Outstanding Contribution to the Primary Industries Award, for her work to identify M Bovis in July 2017.

Dr Hay told Saturday Morning that the disease was very hard to diagnose, and in many other countries it was only detected after it had already been spreading for several decades . .

Group aims to help farmers improve M. Boris response – Daniel Birchfield:

Lines of communication between the Ministry for Primary Industries and farmers impacted by cattle disease Mycoplasma bovis have been muddied for too long, Waitaki Mayor Gary Kircher says.

Alongside Waimate Mayor Craig Rowley, he chaired the first meeting of the recently formed Waimate/Waitaki Mycoplasma Bovis Advisory Group held at the Waimate District Council on Wednesday.

The group, modelled on a similar Ashburton arrangement, was formed to support the ministry’s M. bovis eradication programme and assist with regional decision-making to benefit farmers. . .

Lamb contract rewards loyalty – Colin Williscroft:

A $9/kg fixed-price lamb contract for August is a reward for customer loyalty, Affco national livestock manager Tom Young says.

So, farmers generally should not raise their hopes it signals prices higher that they might usually expect as the season unfolds.

The contract has been the subject of much discussion at sale yards but Young said it is not an offer being made to every farmer.

It is only available to loyal clients, farmers who have shown Affco consistent support. . .

Dismantling free markets won’t solve biodiversity threat – Matt Ridley:

Driven perhaps by envy at the attention that climate change is getting, and ambition to set up a great new intergovernmental body that can fly scientists to mega-conferences, biologists have gone into overdrive on the subject of biodiversity this week.

They are right that there is a lot wrong with the world’s wildlife, that we can do much more to conserve, enhance and recover it, but much of the coverage in the media, and many of the pronouncements of Sir Bob Watson, chair of the Intergovernmental Panel on Biodiversity and Ecosystem Services (IPBES), are frankly weird.

The threat to biodiversity is not new, not necessarily accelerating, mostly not caused by economic growth or prosperity, nor by climate change, and won’t be reversed by retreating into organic self-sufficiency. Here’s a few gentle correctives.

Much of the human destruction of biodiversity happened a long time ago . . .


Rural round-up

June 28, 2019

More good farmland lost forever:

News that two large New Zealand farms have been sold off-shore, largely for forestry is depressing according to 50 Shades of Green spokesman Mike Butterick. The same owner has purchased both properties.

One farm is 734,700 hectares at Eketahuna that sold for $3.35 million. The other is 1037,000 hectares in Wairoa sold for $6 million.

“It’s bad enough having the land sold to foreigners but having good productive farmland sold for forestry and subdivision is criminal,” Mike Butterick said. . .

Decision time at Westland for Yili bid – Keith Woodford:

The time has come when Westland’s dairy farmers must make their decision. Do they want to take the money and go with Chinese mega-company Yili, or do they wish to struggle on as a co-operative?  We will know the answer after the July 4 vote.

If farmers vote to take the money, it will then be up to the Government to agree or refuse to accept Yili as the new owner. I will be surprised if they disallow the sale under the relevant OIO provisions. The ramifications of that would be severe.

Also important is whether or not the approval from Government is quick or drawn out. It is in no-one’s interest that it be drawn out, but OIO approvals can be remarkably slow.  Yili could step away if approval is not forthcoming by 31 October. . . 

NZ First is not alone in worrying at the implications of a Westland Milk sale to Yili – Point of Order:

Is   Westland  Milk   one of  NZ’s  “key  strategic assets”?

NZ  First  is adamant  it is and believes the government  should be a  applying a  “national interest test”   to the proposed  sale of the company  to the Chinese  dairy giant Yili.

Those  who  see  heavily indebted  companies  like Westland Milk struggling to  make a profit and  not  even  matching  Fonterra’s payout  to its suppliers might take a  cooler view  to  the proposed  sale. . . 

Minister heaps more costs on farmers:

The Minister of Agriculture has confirmed he hasn’t bothered asking his officials the costs farmers will face as a result of the high methane target the Government is imposing, National’s Agriculture spokesperson Nathan Guy says.

“When questioned in Primary Production Select Committee Damien O’Connor scrambled to confirm he’d seen no specific advice for costs per farm, nor has he even asked for any.

“Cabinet have blindly cooked up a methane reduction target of 24-47 per cent, despite scientific evidence suggesting this is too high and without knowing the costs per average farm and the impact it will have on rural communities. . .

Downsizing opens gate to A2/A2 farm:

He’s a dairy farmer with a passion for breeding, striving to be “at the front of the game.” She’s a converted city-girl who fell in love with the dairy farmer, despite her aversion to typical milk.

It doesn’t agree too well with my system,” Stacey White says.

“I used to have soy and almond milk and I’ve tried both them and rice milk; nothing’s really appealed in terms of taste, and baking with those substitutes doesn’t really work either.” 

So when Stacey became aware of A2/A2 milk 18 months ago, she tried it out and found it tasty, creamy, and, crucially, easily digestible.*  . . 

LIC migrates to NZX’s Main Board:

Herd improvement and agritech co-operative LIC will move to the Main Board of the NZX (NZSX) next month, transferring from the Alternative Board.

This comes as NZX announced it will move to a single equities board from July 1 and close the NZAX and NXT.

Of the companies migrating, LIC is the largest by market capitalisation, at approximately $109 million.

There are around 14 agritech companies featured on the NZX Main Board and only one other farmer-owned co-operative (Fonterra). . . 

How NZ farming is like a Steinway piano – Glen Herud:

I wonder if we rely too much on our pasture-based farming or our beautiful scenery or our clean image.

What if the things we think are our strengths are actually weaknesses?

Steinway and Sons had been the leading maker of grand pianos since 1853 when their business was crippled by Yamaha.

Professor Howard Yu explains how Steinway held on to their main strength for far too long and it eventually became a weakness. . .

 


Rural round-up

June 9, 2019

A recipe for disaster:

That old saying about not being able to see the wood for the trees could well describe the government’s infatuation with forestry at the expense of farming.

Objections are growing stronger in rural New Zealand to the impact the ‘one billion trees’ programme will have on the regions’ farming landscapes, infrastructure and communities. Concern is such that a new lobby group has formed, wanting to preserve the economy, health and welfare of the NZ provinces.

Named 50 Shades of Green, it aims to convince politicians and decisionmakers that the current push to plant a billion trees will destroy the provinces and ultimately may endanger the national economy. . . 

DIRA review nibbles at the status quo and avoids the big questions – Keith Woodford:

The current review of the Dairy Industry Restructuring Act (DIRA) does not address the big decisions that face the New Zealand dairy industry. That may well be a wise decision by Government.

Big decisions will indeed be necessary over the coming years. Clearly, they are difficult decisions. However, trying to make those decisions through the DIRA mechanism would be a brave decision and, in all likelihood, with unintended consequences. So, the Government has stepped back.

Instead, Government is using DIRA to nibble around the edges.  Whether those nibbles are the correct nibbles remains a moot point. . . 

Rural real estate feeling the pinch in South Canterbury – Samesh Mohanlall:

Parts of the rural real estate market are struggling in Canterbury and South Canterbury with key industry figures saying they are concerned about the effect of compliance regulations, anti-farming rhetoric and Environment Canterbury’s (ECan) climate emergency declaration.

South Canterbury’s Federated Farmers president Jason Grant and rural estate agents say much of the gloomy projection in the latest Real Estate Institute of New Zealand (Reinz) rural report stemmed from environmental constraints and negative sentiments “coming out around farming”.  . .

Carbon farms help soil, water – Annette Scott:

Carbon farming is about managing soil, vegetation, water and animals while turning opportunities on the farm into improved business performance and profitability.

All while ensuring long-term benefits to farm businesses, the local economy and the environment.

That was the buy-in for more than 60 farmers and industry stakeholders who attended a Canterbury Agribusiness carbon farming seminar.

Most attendees when asked why they attended said the same – to understand something that’s all a bit new and learn what opportunities are available to them. . . 

Nelson mums find solution for skin condition in the paddock – Anuja Nadkarni:

It all started with some flowers planted in a paddock.

Dot Kettle and her partner Georgia Richards traded in their fast-paced corporate lives in Wellington for a more relaxed life to raise their three boys in Dove Valley, 45 minutes from Nelson more than 10 years ago.

Kettle, a lawyer, and IT analyst Richards knew next to nothing about farming, but with 42 hectares of land, the couple decided to plant a field of peonies for export as they are the ideal blooms for Nelson’s climate. . . 

Dodgy fert size to get shake-up – Richard Rennie:

Lumpy, uneven and irregular fertiliser, long the bane of farmers and spreaders, will face tighter scrutiny once the Fertiliser Quality Council establishes standards for the product’s physical qualities.

While standards have been set for the mineral and nutrient content of fertiliser, council chairman Anders Crofoot admits it has taken longer than expected to set them for particle shape and size.

“Setting the chemical standard for fertilisers was fine and has worked well for a long time. . .

 


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