Remind me why we own this?

August 31, 2016

Landcorp has reported an operating loss of $9.4 million for the year to June.

The result compared with a $4.9 million operating profit the previous year, itself an 84 percent decline on the previous year.

Statutory profit was $11.5 million, reflecting the one-off receipt of $7.4 million from land sales and unrealised “revaluation movements on items such as livestock, farm properties and financial assets, e.g. co-operative shares”, a spokesman for the company said.

“It’s been a tough year for the entire dairy sector, so our result is solid in that context,” said chief executive Steve Carden. “The result would have been lower without the progress already being made to strengthen our farming systems” and its high value Pamu product range. . . 

The loss isn’t unexpected with dairy prices so low and sheep meat having had a pretty ordinary year but remind me again why we own this company?

Landcorp owns or leases  376,942 hectares of land. Its 140 farms and 1.6 million stock units makes it New Zealand’s largest farming operation.

It has a good reputation for staff management and training, animal welfare, genetics, other farming practices and environmental sustainability.

But does that justify state ownership of the company when its total asset value in its half year report to December 2015 was $1,846.4m?

There is a case for the crown owning land to use for treaty settlements.

There’s also a very strong case for reducing that huge investment in Landcorp by gradually selling farms to free-up money to spend it where the need for, and value from, investing it are greater.

That won’t happen.

All the parties on the left are philosophically wedded to the idea of state ownership even though the government, investors and taxpayers are all better off after other partial privatisations.

National is philosophically supportive of the idea but good philosophy and policy are sometimes bad politics and it has other priorities on which to concentrate.

Why do we still own the company? Politics.


Rural round-up

July 29, 2016

Sheep milk company markets to Taiwan:

A New Zealand company has launched two sheep milk powder products in Taiwan which are the first of their kind on the market.

Spring Sheep Milk is a partnership between Landcorp and investment company SLC Group, and milks 3000 ewes on a block of Wairakei Estate on the Central Plateau.

The company specialises in nutritional powders for adults in Asia and gelato for the New Zealand market. . .

Feds disappointed with Local Governmemt’s 8-point programme:

Federated Farmers congratulates Local Government New Zealand (LGNZ) for producing a paper that seeks to provide a document for the future but is disappointed that it misses the mark.

Local Government New Zealand released its 8 point programme for a “future-focused resource management system” at their annual conference earlier today.

“We agree that our resource management system needs to be able to address challenges into the future,” says Chris Allen, Federated Farmers spokesperson on resource management.

Fur Industry Looks to Be Part of Government’s Predator-Free Solution:

New Zealand’s $130 million possum fur industry is seeking constructive ways to work with the Government in the wake of its announcement to eradicate rats, stoats and possums by 2050.

Fur Industry Council chair, Neil Mackie says: ” Predator Free New Zealand is a commendable and aspirational goal and we want to be part of the solution to achieve it.’

“We have been working closely with the Department of Conservation after the Parliamentary Commissioner for the Environment recognised the possum fur industry as having a valuable place in possum control. . .

Have your say on kiwifruit, pipfruit and potato insecticide:

The Environmental Protection Authority (EPA) is seeking your views on an application to import an insecticide, called Celsius, to control pests found in kiwifruit, pipfruit and potato crops.

The applicant, Adria New Zealand Limited, is looking to import Celsius, which contains the neonicotinoid thiamethoxam, for use as a selective insecticide, targeting specific insects that are known to attack these crops. . .

Factory Farmer? No I’m a family farmer – Lawson Mozley:

You see, every tme I spend a 10+ hour day farming this land I’m weighed down, but more so lifted up, by five generations of my family before me, and the countless generations that I hope will follow.

GM technology, efficiency overshadowed by fear

Apparently all of this history, meaning, and hope is overshadowed by the fact that my father and I use genetically engineered crops to decrease and even eliminate the needs for environmentally impactful pesticides. It’s nullified by our judicious use of herbicides and other pesticides when necessary to produce a safe, wholesome, high quality food product at a reasonable price. It’s undone by my use of vaccines to prevent diseases in my cattle and antibiotics when injuries or acute illnesses do occur . . .

Bayer Wairarapa Young Viticulturist of the Year 2016 announced:

Congratulations to Mark Langlands from Te Kairanga who became the Bayer Wairarapa Young Viticulturist of the Year 2016 on Thursday 28 July.

Langlands also won the competition last year showing he is a consistently strong, bright young viticulturist. However, he was unable to compete in the National Final in 2015 as he was overseas working a vintage in California. He is therefore thrilled that he can go forward and represent the Wairarapa this year and is determined to bring the trophy back to the region . . .


Rural round-up

June 7, 2016

Primary sector leader ‘humbled’ by award – Gerard Hutching:

Agricultural leader Chris Kelly said he was “humbled” by the Officer of the New Zealand Order of Merit (ONZM) bestowed on him in the Queen’s Birthday honours.

Kelly, who has been involved in the farming sector all his career, is best known as chief executive of Landcorp. During his 12-year stewardship of the SOE between 2001-13, Landcorp’s value mushroomed from $500 million to $1.6 billion.

“I’m proud to be part of a wonderful industry. The primary sector is not only very important for New Zealand but it’s also a great place to work.

“The most memorable component would have been my sojourn at Landcorp. I feel humbled to have been singled out because there are lots of other people who could have been,” Kelly said. . . 

Harnessing youthful energy at Mangahao – Kate Taylor:

The infamous Mangahao fog doesn’t dampen the farming enthusiasm of the Tararua Farmers of the Year. Kate Taylor paid a visit

Toddler Jack reaches for another piece of his toast as mum Ally puts a cake in the oven and dad Pete Apthorp has a well-earned coffee after sending away lambs in the early morning fog.

“The fog is at least easier to deal with than the dark last week before daylight saving ended. The people who like it lighter in the evenings have obviously never had to get stock away early for same-day kill,” says Pete with a chuckle.

Pete and Ally Apthorp, who are still in their 20s, farm on Mangahao-Pahiatua Rd, otherwise known as the Pahiatua Track to Palmerston North. They have been named the 2016 Rural Aerial Co-op Tararua Farmer of the Year and will host a field day on April 27.  . . 

NZ tech firm raises funds, wins award:

A local agri-technology company is on a high after raising $4.5 million for product development and research and being named the best AG-Tech start up in a Silicon Valley technology competition.

Engender Technologies has worked with two Centres of Research Excellence – the MacDiarmid Institute and the Dodds-Walls Centre – to develop technology to allow dairy farmers to manage the sex make-up of their herds.

It opens the way to a leading position in what’s estimated to be a $3.5 billion market. . . 

Nominations sought for 2016 trans-Tasman agribusiness leadership awards:

Nominations have opened for the 2016 Rabobank Leadership Awards, recognising the contribution of senior and emerging leaders in the success of New Zealand and Australia’s food and agribusiness industries.

The peer-nominated trans-Tasman awards – now in their eleventh year – include the flagship Rabobank Leadership Award, which was last year won by New Zealand business leader Sir Henry van der Heyden, the former chair of global dairy giant Fonterra.

The award is presented annually to an individual in a senior leadership role in the food, beverage and agribusiness sector who has created sustainable growth and prosperity at both corporate and industry level, while also demonstrating a wider commitment to society. . . 

Invasive ants eradicated from Tiritiri Matangi:

An ant considered one of the most destructive invasive species in the world has been successfully eradicated from Tiritiri Matangi Island in the Hauraki Gulf, Conservation Minister Maggie Barry says.

“Tiritiri Matangi is one of the few places in the world where Argentine ants have been successfully eradicated, the culmination of 16 years of hard work by DOC staff and volunteers,” Ms Barry says.

“They may be small, but these ants are one of the most damaging of all invasive pest species. The World Conservation Union lists them as one of the 100 worst eco-invaders on Earth.” . . 

Fungi workshop first of its kind:

Some of the world’s leading experts in fungal biology and the study of pest and weed invasions met recently at a workshop organised by researchers from the Bio-Protection Research Centre.

The aim of the  workshop, the first of its kind in New Zealand, was to stimulate discussion between scientists from different disciplines and develop a publication to guide future research in this area.

Sponsored by the New Phytologist Trust the event attracted more than 70 scientists for a day of public talks and a four day writing workshop for key participants.

“This was an incredible opportunity to bring together plant invasion ecologists, fungal ecologists and plant pathologists,” says Professor of Invasion Ecology Ian Dickie. . . 

Dairy: In a tough year, farmers can optimise tax through preferential livestock valuation:

With this years continued convergence of values between the Herd Scheme Value and National Standard Cost for dairy cattle, professional services firm Crowe Horwath says farmers are presented with an opportunity to review their livestock valuation methods and optimise their operations for tax efficiency.

That’s according to Tony Marshall, agri tax specialist who points out that the IRD’s 2016 Herd Scheme (HS) values have drawn to their closest with the National Standard Cost (NSC) in some time. “Valuation choice is important due to the tax treatment of livestock under each scheme,” he notes. “Once livestock are valued under HS, movements in value are non-taxable, whereas movements in value under the NSC method are always taxable, either as income or a deduction.” . . .

LIC bulls deliver top results for farmers:

LIC is celebrating the co-operative’s top bulls with the release of the industry’s latest Ranking of Active Sires (RAS) list – which ranks the top breeding bulls in New Zealand.

”These are our farmers’ bulls, developed by LIC on behalf of farmers for farmers,” LIC’s General Manager Biological Systems Geoff Corbett said.

The co-operative is pleased to see that 26 of the top 30 bulls of all breeds in the country are LIC’s. In other great results, the top 12 bulls across all breeds are LIC’s. . . 

CropLogic Secures New Licence for Global Growth:

Precision agriculture firm CropLogic has signed an exclusive agreement with the New Zealand Institute of Plant & Food Research to expand the marketing of its patented technology to corn, wheat, soybean and cotton farmers in the United States.

The technology — developed over 30 years out of Plant & Food Research, a New Zealand Crown Research Institute, and guided and shaped for international markets by IP investor Powerhouse Ventures — enables growers using the firm’s predictive modelling systems to pinpoint the best times to apply nutrients and to conserve precious water for maximum plant yields. . . 


Rural round-up

May 9, 2016

Women motivate NZ dairy industry’s survival – Kelsey Wilkie:

Stress, money management and solidarity were the themes of a women in dairy conference. Kelsey Wilkie reports.

Hundreds of women dairy workers came together to talk milk prices, cash cows and rugby in Waikato this week.

The Dairy Women’s Network event at Claudelands Event Centre in Hamilton  attracted 340 women keen to to discuss farming issues in the wake of a devastating downturn in milk prices..

Fonterra’s forecasted payout has fallen from $5.25 a kilogram of milksolids down to $3.90/kg. . . 

From wet feet to wool sock success – Sally Rae:

It all began with cold, wet feet.

American couple Peter and Patty Duke were long-time ski instructors before embarking on a business career which has resulted in their launching outdoor apparel brand SmartWool.

The company, based in Steamboat Springs, Colorado, was later sold to Timberland and is now a wholly owned subsidiary of the VF Corporation, which owns other well-known brands such as Wrangler, The North Face and Lee.

After a break away from the industry, the apparel entrepreneurs got back into business, continuing their passion for merino wool with their woollen sock company, Point6. . .

Landcorp/NZM ink carpet deal:

Landcorp and The New Zealand Merino Company (NZM) have signed a contract to supply wool to Australia’s most exclusive carpet manufacturer.

The agreement with Prestige Carpets will see 120 tonnes of wool sent to Australia through their New Zealand-based supply chain.

Prestige uses pure New Zealand wool and a cutting-edge tufted construction method to create carpets targeted at Australia’s leading designers and architects. . . 

Objects of the exercise:

They are the unsung heroes of the Golden Shears World Shearing and Wool Handling Championships.

Millers Flat farmer Trevor Peters is supplying more than 2000 Romney sheep for the event which is being held in Invercargill in February.

The sheep would present the world-class shearers with a good challenge, Mr Peters said.

The Peters family farms six properties: Spylaw, at Dunrobin, Bullock Range, at Moa Flat, Clutha Downs, at Beaumont, Attadale Station, at Middlemarch, Teviot Valley Station, at Millers Flat, and a finishing farm at Waikaka. . . 

Farming difficult but not all gloom and doom – Steve Wyn-Harris:

There is an increasingly growing level of anxiety in this part of the world as the dry conditions reduce options for building up some feed covers as we head in towards winter.

If we don’t get proper rain in these last two or three weeks of May then we can, at best, expect 10kg DM/ha/day or a total of 600kg DM/ha for June and July, which for most is about maintenance.

So early August feed covers are going to be around end of May covers and for many this will be too short for lambing and calving. . .

Old-fashioned farming and good old-fashioned common sense – Peter Burke:

The name Johnstone has been synonymous with breeding bulls in the Whanganui district for at least 90 years.

There are now five generations of Lindsay Johnstones: the latest one is Lindsay – call him Lindsay the fifth.

Back in 1925 Lindsay’s grandfather started off by developing a herd of Herefords. He managed to breed some pure white Herefords and, remarkably, Lindsay has kept that tradition going and has 25 of these animals on his property; more in memory of his grandfather than for commercial gain. . .

Feijoa-geddon could be coming to New Plymouth – Jermey Wilkinson:

Peter Peckham has collected bugs of all kinds for nearly 80 years and had never seen a guava moth until last month.

The New Plymouth man said he was in the shower when he saw the Pacific Island guava moth and rushed to get his bug net to capture it.

“They have quite a distinctive flight pattern, they fly quite slowly unlike other moths,” he said.  . .

 


Rural round-up

March 8, 2016

Embrace change Ballance CEO says – Sally Rae:

Agriculture has to ‘‘sell itself to New Zealand”.

That is the strong belief of Ballance Agri-Nutrients chief executive Mark Wynne, who cited a generation of people with no rural connections.

The sector – which was the foundation of New Zealand’s wealth – had to keep promoting its good stories, he said. . . 

$2m fertiliser plant opens near Timaru – Sally Rae:

More than $2million has been invested at Ballance Agri-Nutrients’ Washdyke site with the official opening of a specialist PhaSedN fertiliser manufacturing plant.

Timaru Mayor Damon Odey and Ballance chief executive Mark Wynne attended the opening, along with local farmers.

The plant was developed in partnership with Te Poi Manufacturing Ltd. It was expected to initially produce about 10,000 tonnes annually with capacity to build production as demand grew. . .

Landcorp to scale back Wairakei dairy conversion – Tina Morrison:

(BusinessDesk) – Landcorp Farming, the state-owned farmer, confirmed it will scale back the conversion of former forestry land to dairy farming on leased land at the Wairakei Estate north of Taupo following a slump in milk prices and concern about the environmental impact.

New Zealand’s largest corporate farmer “will significantly reduce dairy’s footprint from the original plans and instead include alternative uses for the 14,500 hectares of former forestry land it leases from Wairakei Pastoral,” the Wellington-based company said in a statement.

Landcorp has a 40-year lease to develop and farm the former forestry land, and since 2004 has developed 13 dairy farms with 17,000 cows over 6,400 hectares of the property. A new land-use model will see the eventual number of dairy farms and cows on the Wairakei Estate significantly reduced from the 39 originally planned, it said today. . . 

Industry group well advanced on bobby calf initiatives:

The eight organisations that formed a Bobby Calf Action Group at the end of 2015 are well advanced on a range of initiatives ensuring best practice handling and management of bobby calves.

The group is DairyNZ, Dairy Companies Association of New Zealand, Meat Industry Association, Federated Farmers, New Zealand Petfood Manufacturers Association, Road Transport Forum, New Zealand Veterinary Association and the Ministry for Primary Industries.

Scott Gallacher, MPI Deputy Director General Regulation and Assurance, said a number of the initiatives being worked on were new, other initiatives were already underway but were being accelerated. . . 

Seeka commits to a new HQ and major infrastructure development to handle growing kiwifruit processing demand:

Seeka Kiwifruit Industries (NZX-SEK) will move into its new headquarters in Te Puke by the middle of this year and plans to make it a centre of excellence for its produce and grower-focused business, says Chief Executive Michael Franks.

“Our new HQ will reflect our focus on the crops we and our growers produce, and the harvest and post-harvest value chain,” said Mr Franks.

The move is part of this year’s planned capital expenditure of $20 million to develop new infrastructure to handle increasing kiwifruit volumes. . . 

Manawatu Dairy Awards Winners Look for New Opportunities:

The 2016 Manawatu Dairy Industry Awards big winner, Stephen Shailer, is on the hunt for a new dairy farm position and hopes his win will help his progress.

Mr Shailer won the 2016 Manawatu Share Farmer of the Year title and $10,450 in prizes at the region’s awards dinner held at Awapuni Racecourse last night. The other major winners were Renae Flett, the 2016 Manawatu Dairy Manager of the Year, and Karl Wood, the 2016 Manawatu Dairy Trainee of the Year.

“We entered the awards for the first time this year as we are hoping to move to a 50:50 sharemilking position or lease farm, so we entered in an effort to make our CV stand out a bit more,” Mr Shailer says. “We also wanted to push ourselves to identify our own strong and weak points.” . . .


Rural round-up

February 18, 2016

Landcorp forecasts bigger loss this year, no dividend – Tina Morrison:

(BusinessDesk) – Landcorp Farming, the state-owned farmer, won’t pay a dividend to the government for a second consecutive year as low milk prices erode earnings from its dairy business.

The company expects to post a net operating loss of between $8 million and $9 million in its current financial year ending June 30, chief financial officer Steve McJorrow told parliament’s primary production select committee in Wellington. That’s a bigger loss than the $1 million to $6 million it forecast in December, and compares with a net operating profit of $4.9 million last year. The projected loss means Landcorp won’t pay a dividend for the year, McJorrow told BusinessDesk after the select committee meeting. . . 

Drought relief in the pipeline for North Otago – Rob Tipa:

Farmers in the North Otago downlands between Duntroon, Enfield and Herbert will be happy to leave behind the stresses of desperately dry summers when the taps are opened on an expanded irrigation scheme covering an extra 25,000 hectares next spring.

In December, this region was shaping up for a summer from hell as farmers were forced to destock quickly with predictions of an El Nino long, hot summer drought.

The North Otago Irrigation Company, which currently supplies about 100 shareholders with irrigation water from the Waitaki River, was running at full capacity in November and December to cope with demand. . . 

North dairy farms lift collective environmental record:

Northland’s dairy farms are collectively lifting their environmental compliance performance with record numbers achieving full compliance last season.

Joe Carr, chairman of the Northland Regional Council’s Environmental Management Committee, says 65 percent of the more than 900 farms inspected over four months from mid-August last year had achieved full compliance, the highest rate ever recorded.

Councillor Carr, an Okaihau-based beef farmer and forest owner who represents the council’s Hokianga-Kaikohe constituency, says 944 farms were visited by the council or its contractor last season. . . 

Wall to wall sky – it’s a big country – Kate Taylor:

Most travellers drive around the South Island looking up at the picturesque high country. Kate Taylor jumped at the opportunity to experience the views up close with four-wheel-drive company NZ Adventures.

Asking how four-wheel-drive a four-wheel-drive trip will be is probably not a good start for my 1250-kilometre high country safari down the South Island.

Usually I would class myself as a good vehicle passenger – chatty, happy and with not an ounce of carsickness. But I think my hosts receive the occasional message about my state of mind… a tight grip on the door handle, mouth firmly shut and eyes to the upward view.

The trip caters for people with their own 4WD vehicles and preferably drivers with 4WD experience. Certainly, some of the places driven in the tour are not for the fainthearted, with sheer drops on the side of the tracks or long, steep inclines up to spectacular views and back down again. . . 

Journey to the top of the world – Kate Taylor:

Kate Taylor concludes her three-part series about a 4WD high country safari from Blenheim to Cardrona. The final days of the six-day journey are more familiar territory for the Otago farmer’s daughter.

Standing beside the monstrous Leaning Rock high above the Cromwell Gorge, I assume the tour guide is joking when he says I can see the Blue Mountains where I grew up.

After all, we had already been on top of one Blue Mountain in North Canterbury and driven through part of Blue Mountain Station in Mid Canterbury.

But there they are – no bird’s eye view of West Otago but undoubtedly the Blue Mountains in the distance. . .

I couldn’t find part 2 of this series, if you come across it please post the link in comments.

 

Is Fonterra’ strategy outdate – Jacqueline Rowarth:

More developments in dairy processing operations, this time in Northland, are yet another nail in what must not be allowed to become Fonterra’s coffin.

The dairy farmers in the region will, potentially, have a choice of which company to supply. The dilemma for them is whether they continue to support their co-operative or move to a new company promising good returns.

The promise is based on the demand in China for UHT milk and ice cream: China is now believed to be the biggest ice cream market globally. Chinese spending on ice-cream increased over 50% between 2009 and 2014. Furthermore, consumption is still under a quarter of that consumed by Americans, giving plenty of room for further increases. The new company should be onto a winner. . . 

Canterbury farmer unofficially tops world crop record – Monique Steele:

A Canterbury farmer with a wheat crop yielding above the world record missed out on glory because it was never officially recorded.

Leeston farmer David Birkett harvested 16.7 tonnes a hectare from his feed-wheat crop which would have topped the existing record of 16.519t/ha held in the United Kingdom.

He suspected he was heading for a personal best, but decided against bringing in officials to verify a Guinness world record attempt. . . 

Southern Dairy Hub site found:

Southern Dairy Hub (SDH) chair Maurice Hardie says the vision of a southern research and development dairying centre is much closer to being realised with a conditional agreement on two properties now having been reached pending the satisfaction of a number of minimum requirements for both parties.

“This is an important milestone in our plan to build a facility that is a partnership between local farmers, DairyNZ and AgResearch; the new farm will enable local dairy farming issues to be researched on southern soils in southern conditions,” he says. . .


Rural round-up

August 27, 2015

Farmers not off the hook on health and safety:

It’s a complete fallacy that the farming community doesn’t have to worry about health and safety as a result of proposed changes to the Health and Safety Reform Bill, according to an expert in the field.

Crowe Horwath agri health and safety expert Melissa Vining says the recent hype around proposed changes have monopolised the headlines in recent days with many accusing the government of letting farmers off the hook.

However she is quick to dispel the myth that farmers have been given a mandate to ignore health and safety. . . 

Landcorp posts 2014/15 annual results:

Landcorp has recorded a net operating profit of $4.9 million on revenue of $224.3 million for the year ended 30 June 2015.

The $4.9 million net operating profit is down from the $30 million result the previous year. The sharp decline in the price of milk solids, combined with lower lamb prices, saw income from farm products drop 11.7 per cent on the previous year, to $213.5 million.

Landcorp chief executive Steven Carden said record-low dairy prices and tough growing conditions had driven overall financial performance down. However, a constructive response to challenging conditions had helped buffer Landcorp from major impact. . .

New Zealand in unique position for ‘water development’:

New Zealand has many advantages over the rest of the world when it comes to ‘water development’ but we need to get better at leveraging water use – for our future well-being and to protect us from the effects of climate change, says IrrigationNZ CEO Andrew Curtis.

This week is World Water Week 2015 with a theme of ‘Water for Development’. More than 3000 people, including world leaders, water experts and international aid organisations, have gathered in Stockholm, Sweden to debate solutions for water crisis around the globe at an annual symposium run by the Stockholm International Water Institute (SIWI) (www.worldwaterweek.org.nz).

Mr Curtis says New Zealanders are blissfully unaware of the relative advantage New Zealand has with plentiful rivers, lakes and groundwater supply across the country. . . 

Huge potential in Chathams – farmer:

The Chatham Islands has a huge, untapped potential for farming but a better understanding of soils is needed, one of the islands’ farmers says.

The islands are part of New Zealand and lie 750km east of the South Island.

Federated Farmers Chatham Islands chair Tony Anderson said there were 15 large farming operations there but many farmers worked a second job in the fishing industry. . . 

‘Power Play’ Innovation in Dairy Awards:

Entrants in the 2016 Dairy Manager of the Year contest will play to their strengths with a ‘power play’ initiative among the new judging criteria.

The change is one of many to the 2016 New Zealand Dairy Industry Awards programme, aimed at enabling more people to enter the awards competitions and at ensuring people with similar age, skills, maturity and investment in the industry compete against each other.

National convenor Chris Keeping says other changes include new competition names, entry and judging criteria – like the power play. . . 

OMG Dairy NZ Confessions Stories Advice's photo.


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