Rural round-up

June 16, 2019

Industry shifts from volume to value – Sally Rae:

A long-term “erosion of confidence” in the primary sector needs to be reversed, KPMG global head of agribusiness Ian Proudfoot says.

The 2019 KPMG Agribusiness Agenda was launched this week at National Fieldays at Mystery Creek, the 10th year it has been published.

In his introduction to the report, Mr Proudfoot said confidence was low despite the progress the industry had made over the last year.

Efforts to encourage farmers and growers to celebrate their role as food producers had not fallen on deaf ears but the positive messages had, on occasion, been “drowned out by a chorus of criticism”, most of which had been unbalanced, he said.

“If you have been told for years that you are the past, that you are bad for the environment, that you underpay your labour, even if you know these claims to be inherently wrong, many end up believing them. It is this long-term erosion of confidence that needs to be reversed.” . . 

Massey finds a new model for baby beef – Richard Rennie:

Twin drivers of environmental and welfare pressure on farmers when dealing with bobby calves prompted Massey University researchers to explore options that will also deliver an economic return to farmers.

Two years into the New Generation Beef project, team leader Dr Nicola Schreurs said initial results indicate taking bobby calves with Jersey genetics and rearing them to eight, 10 or 12 months for processing delivers a product with market potential.

“We are also being careful to distinguish New Generation beef from veal, which, technically, under European Union definitions, it is. But veal brings its own often negative connotations we would rather avoid.” . . 

Changes are needed at Landcorp – Alan Emmerson:

I’ve just read the Landcorp, Pamu as they like to be known, annual report. In a word, it is nauseating.

They start by telling us their vision is to be the premium supplier of meat, milk and fibre for niche markets. 

“We pursue this vision with strategies based on Pamu’s six capitals – strategies for excellence in farming and adding value for products, investors, people and the environment.”

It is an 82-page, heady tome telling us, among other things, they’re supplying markets in Australia, China, Europe North America and more.

The acting chairman and chief executive told us “Pamu enters its fifth year of delivering on our strategy of operational excellence in creating value beyond the farm gate with real momentum.”

They’re into farm wellbeing, gender equity, animal welfare, environmental assessments farm by farm, (who isn’t) and relationships with tangata whenua.

They’ve surveyed stakeholders including our old mates at Greenpeace. What they could add they didn’t say. . . 

NZ primary industry exports seen rising 7.1% this year – Rebecca Howard:

(BusinessDesk) – The government expects primary industry export revenue will rise 7.1 percent to $45.7 billion in the June year, but predicts growth will be flatter in the future.

The lift marks the “second straight year of substantial export growth,” said Agriculture Minister Damien O’Connor when he presented the Ministry for Primary Industries’ Situation and Outlook report for June 2019 at Fieldays. Export revenue was $42.7 billion in the prior year, up 11.7 percent. . .

 

The man who helped feed the world – Tim Harford:

In the early 1900s, newlyweds Cathy and Cappy Jones left Connecticut in the US to start a new life as farmers in north-west Mexico’s Yaqui Valley, a little-known dry and dusty place, a few hundred kilometres south of the Arizona border.

When Cappy died in 1931, Cathy decided to stay on. By then she had a new neighbour: the Yaqui Valley Experiment Station, a grand agricultural research centre with impressive stone pillars, and cleverly designed irrigation canals.

For a while, the centre raised cattle, sheep and pigs, and grew oranges, figs and grapefruit.

But by 1945, the fields were overgrown, the fences fallen and the windows shattered. The station was infested with rats. . .  

Strawberry growers asked to vote on a levy proposal:

Strawberry Growers New Zealand Board is asking growers to vote on a proposal to apply for a levy on strawberries, with voting papers going out today.

Following extensive consultation with growers and other stakeholders, Strawberry Growers New Zealand (SGNZ) are calling for all commercial strawberry growers to vote in a referendum to determine if there is a clear mandate from growers to apply for a commodity levy.

A levy rate of $26 per 1000 strawberry plants sold is being proposed, with support being sought to apply to the Minister for Agriculture for a Commodity Levies Order on strawberries. . . 


Rural round-up

June 12, 2015

Commission opens consultation on dairy competition review:

The Commerce Commission today released a consultation paper outlining its proposed approach, timeframes and scope for its review of the state of competition in the New Zealand dairy industry.

Commissioner Dr Stephen Gale said the Commission was now seeking submissions on its proposed approach.

“Our review will look at whether the regulations are helping or hindering the efficient operation of the New Zealand dairy industry. To do this we intend to examine how competition has developed since Fonterra was established and what it might look like in the future,” Dr Gale said. . .

 Te Kuiti farmer appointed to Deer Industry New Zealand board:

William Oliver of Te Kuiti has been appointed to the Deer Industry NZ board for a three-year term.

One of three candidates for a vacant producer position on the eight-strong board, he was appointed yesterday following interviews by the Deer Farmers Association’s Selection and Appointments Panel.

Panel chair Paddy Boyd says a “robust” interview process highlighted the skills of the candidates.

“It is very reassuring in terms of governance and succession to have people of William’s calibre standing for the board, especially at a time when Deer Industry NZ has major initiatives underway to build deer farm profitability and to halt the decline in the national herd,” he said. . .

 Centrus 84 takes out International Innovation Award:

Waikato Milking Systems has taken out the International Innovation Award with its Centrus 84 Rotary Platform at Fieldays® 2015.

The Centrus 84 is the first fully-composite rotary platform and is 80% lighter than previous platforms and five times stronger.

“Sometimes you get a feel for something,” says Executive Manager Dave Cassells. “When I saw the concept drawings for this one, I knew we had something unique.

Federated Farmers Fielday Seminar: ‘Precision agriculture’ :

Agri Innovation expert, Mark Burgess, has told Federated Farmers seminar at the Mystery Creek Fieldays this morning that automation is king amongst the technology options for farmers.

He said that automation is the primary driver for farmers investing in new technologies on-farm whereas technologies that support improved farm management are lagging.

“Farmers are at risk of being overwhelmed with more data than they can make use of, however we are beginning to see integration through increasingly sophisticated farm management software, which is removing barriers enabling farmers to use more technology in support of their farm management decisions.” . . .

Cow sickness not from genetic modification:

Federated Farmers’ President and science spokesperson William Rolleston says recent stock sickness or deaths are likely to have been caused by a high sugar content in the fodder beet they have been eating.

“It’s got nothing to do with genetic modification as GE Free New Zealand has speculated.  Fodder beet has only recently been brought into widespread use in New Zealand and unfortunately some farmers are still coming to terms with how to best feed it to their stock.”

“We know there is a problem with stock feed transition and there is some cautious advice, such as that from Dairy New Zealand, on how to manage feed of fodder beet without complications.” . .

Fieldays a pathway into the primary industries – Chris Lewis:

Today marked the start of Fieldays, an event I have enjoyed going to since a kid, now I take my two children to experience it. I guess it’s a pathway into the primary industries where you start as a young one looking at all the agriculture equipment, eventually graduating to talking shop with sales reps and renewing relationships with your key suppliers.

My children remember the farm servicing people that came on farm to help us and then recognise them again at Fieldays when we talk business. This is how relationships start for generations and good companies recognise this with many businesses I deal with being family owned and generational. . .

New partnership to provide enhanced pasture management for farmers:

Farmer-owned co-operative LIC has entered into a partnership with Precision Farming Ltd, supplier of GIS-based systems that manage the application of farm nutrients to optimise pasture growth including fertiliser and effluent.

The two companies have signed an agreement whereby Precision will share its nutrient management functionality for integration with the co-op’s MINDA farm management system used by more than 90 per cent of NZ dairy farmers.

LIC chief executive Wayne McNee said it would provide enhanced information for farmers about their pasture and feed availability. . .

 

KPMG Agribusiness Agenda 2015 highlights the importance of improved rural broadband:

Today’s release at NZ National Field Days by TUANZ member, KPMG, of the Agribusiness Agenda 2015 highlights the importance of improving access in the rural sector to high speed broadband. The Agenda notes that since the last release in 2014 there has been an increased priority attached to delivering high speed rural broadband. This year it has risen four places in a list of strategic issues of concern to be the second equal along with food safety. The first issue of concern being ensuring a world-class biosecurity system.

Ian Proudfoot, KPMG Global Head of Agribusiness, said that “Fast connectivity in rural areas not only supports economic growth. It enhances healthcare delivery, overcomes isolation, and enables the unemployed to develop skills and become productive.” . .

 


Rural Round-up

June 11, 2015

Prime Minister officially opens Fieldays 2015:

Crowds filled the Village Green to see Prime Minister John Key officially open the 47th NZ National Agricultural Fieldays®, along with NZ National Fieldays SocietyTM President Warwick Roberts.

The Prime Minister arrived at Mystery Creek this morning and greeted Fieldays visitors before giving his midday Opening Ceremony speech.

Prime Minister Key said there is an importance for innovation in the farming and science sector to lift New Zealand’s profitability at the ceremony. . .

 

Fieldays fans get on site fast for opening day  – Libby Wilson:

When the sun went down on the first day of Fieldays at Mystery Creek, just under 30,000 people had already checked out what was on offer.

Day one had started fast for the agricultural expo, NZ National Fieldays Society chief executive Jon Calder said.

“We had 15,000 on site by 9 o’clock,” he said. . .

Inventions on show at Fieldays – Adrien Taylor:

A device that converts cow poo into water and fuel is one of the inventions to catch the attention of farmers at this year’s Fieldays.

At the four-day event near Hamilton, a group of business experts are on site to help innovators get their ideas into production.

Fieldays commercial general manager Nick Dromgool says innovation is one of the key pillars of the event. . .

Higher NZ milk production, increased payout to boost NZ economy by $1.8B, AgriHQ says – Tina Morrison:

 (BusinessDesk) – Increased milk production and a higher forecast payout to dairy farmers for the upcoming season should bolster the New Zealand economy by $1.8 billion, according to AgriHQ.

The AgriHQ NZ milk production predictor forecasts growth of about 2.5 percent to 1,930 million kilograms of milk solids for the 2015/16 season, following 3 percent growth in the 2014/15 season.

The expectation for increased milk production comes as New Zealand dairy companies are forecasting higher payouts to farmers this year on the expectation global prices will pick up. Fonterra Cooperative Group, the world’s largest dairy exporter, expects to increase its payout for the 2015/16 season to $5.25 per kilogram of milk solids, from $4.40/kgMS in 2014/15. Synlait Milk expects to pay $5.50/kgMS in the upcoming season, up from a range of $4.40-$4.60/kgMS this season. . .

 Livestock export ‘a win for both countries’:

Federated Farmers says the live sheep shipment headed to Mexico will help that country restock following a serious drought as well as farmers hit by drought here.

The shipment leaving Timaru this morning is New Zealand’s largest-ever live sheep export of 50,000 sheep.

Three thousand cows will also be shipped to Mexico.

The Ministry for Primary Industries (MPI) said the animals were being sent to Mexico for breeding purposes and not for slaughter. Shipments of live animals for slaughter is banned. . .

Concerns at major live sheep shipment:

About 50,000 sheep – New Zealand’s largest live sheep export shipment for nearly a decade – are about to leave Timaru for Mexico.

The Ministry for Primary Industries (MPI) has approved the export of the sheep, as well as about 3000 cattle, for breeding purposes, due to high demand in Mexico after a recent drought.

Since 2007, livestock cannot be exported for slaughter unless special approval is granted by the Director-General.

Agribusiness Agenda 2015 – volume 1

Growing value – an uncertain future

The uncertain future of the dairy sector is currently top-of-mind for many primary sector leaders, reports KPMG New Zealand.

That was a key theme arising from the KPMG Agribusiness Agenda 2015, titled “Growing Value”.

KPMG’s Global Head of Agribusiness, Ian Proudfoot, says conversations about the dairy industry’s future have “changed dramatically in the last year”. . .

 

Ministers welcome KPMG Agribusiness Agenda:

Primary Industries Ministers Nathan Guy and Food Safety Minister Jo Goodhew have welcomed the annual KPMG Agribusiness Agenda, which shows strong industry support for the Government priorities of strengthening biosecurity and adding value to exports.

“This annual report surveys over 100 leaders in the primary sector and is a valuable snapshot of industry views,” says Mr Guy.

“It’s no surprise to see biosecurity highlighted again as the number one issue by industry, as it has been my number one priority since becoming Minister. . .

Combined rural firies take home top award

The district’s combined rural firies have scooped the Supreme Award at the 2015 Trustpower Ashburton Community Awards last night at Hotel Ashburton.

The Awards were announced and presented last night in front of almost a hundred spectators, entrant nominators and volunteers. . .

 

Opportunities for greater New Zealand-European Union agricultural partnerships:

Primary Industries Minister Nathan Guy says his visit to Europe over the last 10 days successfully highlighted opportunities for more agricultural partnerships between producers in the European Union and New Zealand.

Mr Guy visited France and Poland, and represented New Zealand at the International Agricultural Forum at the Milan Expo and at the 39th Food and Agriculture Organisation of the United Nations (FAO) conference in Rome. . . 

Rabobank Fertiliser Quarterly Q2: Neutral Nutrients:

Fertiliser markets will be neutral to slightly bearish the coming three months, according to the Rabobank Fertilizer Quarterly Q2. Across-the-board price support for fertilisers seems possible only if volumes discipline from suppliers remains or intensifies. In demand terms, price support would have to originate from India and Brazil.

Currently, demand in India remains fragile as buyers await more clarity on rupee volatility and monsoon rains. Brazilian buyers are holding out on significant purchases, based high-beginning stock levels and a subdued agricultural outlook. “In Brazil, we expect that full-year fertiliser imports in Brazil, could decline with as much as 15 to 20 percent YOY,” says Rabobank analyst Victor Ikeda. . .

Premium dairy brand launches ‘Breast Milk’ onto supermarket shelves:

New Zealanders wanting to support the search for a cure for one of our biggest killers can do so by having a swig of ‘Breast Milk’.

Lewis Road Creamery is backing Breast Cancer Cure’s mission to find a cure for breast cancer by repackaging its most popular organic cow’s milk, Homogenised, as Lewis Road Creamery Breast Milk f or a three-month period, from today. . .

Lewis Road Creamery ‘breast milk’ causes upset:

Lewis Road Creamery says it did not intend to mislead customers with its new “breast milk”, a labelling move that has been slated by breastfeeding advocates.

In a bid to raise money for breast cancer research, Lewis Road has branded its blue top 1.5 litre organic homogenised cow’s milk with a red label reading: “Breast Milk: the cow’s milk that funds the cure”. 

For every labelled bottle sold (RRP $6.09) Lewis Road will donate 20 cents to Breast Cancer Cure, the research foundation that originally pitched the idea to the dairy company. . .

 

 


Rural round-up

November 13, 2013

New Zealand’s Primary sector must not tolerate its weakest links

•        Industry must be prepared to remove those not prepared to meet baseline standards
•        Regulation needs to be balanced to avoid overburdening a strategic sector of the New Zealand economy

The global reputation of New Zealand’s primary sector lives or dies on every participant in the industry doing the right thing each and every day.  In a connected world it only takes one person to fail in fulfilling their duty to the environment, their animals or the community for significant pressure to come to bear on the whole sector’s license to operate.

The message that the industry can no longer tolerate weak links is a central theme in the latest volume of the KPMG Agribusiness Agenda 2013 which is released today. The fourth volume of the Agenda, titled “Balancing the needs of the environment, communities and businesses” discusses the issues associated with building a world class, sustainable primary sector in New Zealand. . .

Rollover protection on quads a lifesaver – researcher:

Associate Professor Charley Lamb, of Lincoln University’s Telford Division, has backed Whangarei coroner Brandt Shortland’s recommendation for more research to be done in New Zealand into the protection devices.

Mr Shortland’s recommendation follows the release this week of his findings into five quad-bike related deaths in which he says the vehicles are a farmer’s best friend, and also their worst enemy.

His recommendations include the compulsory wearing of helmets, more research on roll-bars and more training for riders.

On average, five people each year are killed in quad-bike accidents on farms and a further 850 are injured. . . .

Shock tactics and scars suggested for quad bike safety ads – Abby Brown:

Tweeting farmers say there needs to be an educational advertising campaign that uses shock tactics and even scars to warn of the hazards of using alcohol or drugs before using a quad bike.

Some farmers also said there needs to be more research on roll-over protection, speed limits need to be considered and most supported the call for the use of helmets.

Colin Grainger-Allen (@NZcows) tweeted that authorities like ACC need to use shock tactics to run educational advertising campaigns about the hazards of using quad bikes after drinking or drug use like they do with the anti-drink driving campaign. . .

Van der Heyden shares ideas with MIE – Alan Williams:

Former Fonterra chairman Sir Henry van der Heyden is playing down his role with red-meat lobby group Meat Industry Excellence (MIE).

“I’m sharing my ideas and experience from what I’ve learned in my time in the dairy industry with a large number of farmers and MIE is part of that,” van der Heyden said.

“Over the past two or three years many folk in the red-meat sectors have contacted me.”

It is understood van der Heyden has spoken at “invitation-only” MIE meetings with farmers over the past few months, ahead of director elections at the two biggest meat industry co-operatives, Silver Fern Farms and Alliance Group, at their annual meetings in December. . .

Leadership Reaffirmed for Grape and Wine Industry

New Zealand Winegrowers, the national organisation for the country’s 1,500 grape growers and winemakers, has announced the re-election of Steve Green as Chair and John Clarke as Deputy Chair for a second year.

Mr Green is proprietor of Carrick, a boutique Central Otago winery; he has been involved in the Central Otago grape and wine industry since 1994, has previously served as Chair of Central Otago Winegrowers and has been on the New Zealand Winegrowers Board since 2005.

Mr Clarke is a Gisborne grapegrower with over 30 years’ experience in the grape and wine industry. Mr Clarke, who is a former Gisborne Mayor, has previously served for ten years as the Chair of Gisborne Winegrowers and joined the New Zealand Winegrowers Board in 2006. . .

Wine & Tourism – a Winning Combination:

 2013 is turning out to be an outstanding year for Hawke’s Bay winery Sileni Estates. Off the back of recent local and international award success for their wines, Sileni Estates have recently been awarded the coveted Hawke’s Bay Cellar Door of the Year at the Hawke’s Bay A&P Wine Awards.

Cellar Door of the Year recipients in 2010 and 2012, Sileni Estates are surprised and delighted to receive the award again in 2013. Owner and CEO Graeme Avery comments, “We are thrilled that the Sileni Cellar Store has been awarded Cellar Door of the Year in three of the past four years. It is a credit to our dedicated and hardworking Cellar Store Team – Anne Boustead, Emily Lay and Simone Hartley; and to Sileni’s long term commitment to promote Hawke’s Bay and its wines.” . . .

Quality of wine shines through at Air New Zealand Wine Awards:

New Zealand wineries have again impressed judges at this year’s Air New Zealand Wine Awards with wines of outstanding quality making up the 111 gold medal winners.

Pinot Noir was the strongest performer, winning 22 gold medals, while 20 gold medals were awarded for Sauvignon Blanc and 17 for Chardonnay.

The aromatics classes, consisting of Gewürztraminer, Pinot Gris, Riesling, Viognier and Albariño, also shone in this year’s competition, bagging a total of 25 gold medals. The judges were impressed by the sparkling class, which was awarded 19 medals, including six gold.

Chair of Judges, Michael Brajkovich MW, said New Zealand winemakers are producing world-class wines across an exciting and diverse range of varieties. . .


How matters not who

June 8, 2012

A KPMG survey found that people who work the land aren’t bothered by who owns it:

KPMG interviewed 98 industry leaders for its Agribusiness Agenda, which reveals restricting foreign investment in agriculture land and assets is among their lowest priorities.

No surprises there, anyone with a real connection to farming knows it’s not who owns the land but how they farm it that matters.

Head of Agribusiness Ian Proudfoot told NBR ONLINE industry leaders realise that throughout New Zealand’s history, offshore investment has always featured.

“Initially it came from Britain, then Europe, the United States and Australia, and now the Asian countries who have got surplus cash and are looking for good investment opportunities.

“We can’t turn our back on foreign investment now. That would be inappropriate just because it’s coming from a country where we have less in common than we did with previous investors.”

While people who rarely get closer to a farm than looking over the fence as they travel along main highways are exercised over foreign investment, those directly affected welcome it.

Farmers’ main concern around the Crafar farms issue is that if you refuse offshore investors, there are not enough New Zealand buyers to purchase the land, despite claims to the contrary, he says.

“Without those foreign investors to support market prices, the value of the assets the farmers have are worth less in reality.

“Therefore the amount they can borrow goes down and the ability to grow their business is reduced.”

One argument put forward by opponents of foreign investment is that it puts land prices out of the reach of locals.

Land has never been easy to buy.  The harm done to the businesses of the many who aren’t selling would far outweigh the benefits to the few who might get a bargain if there was less foreign investment or worse, none at all.


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