Rural round-up

March 4, 2015

Water refusal ‘will have wide imapct’:

Federated Farmers says the Canterbury Regional Council’s refusal to allow some farmers to exceed their groundwater limits this year will have a widespread impact on farming there, as the drought bites deeper.

Some farmers with seasonal restrictions on their ground water allocation have asked the council if they can increase the amount of water they can take, because they say they’ll need more to get them through the irrigation season.

Environment Canterbury turned them down because it said limits were set for each zone for environmental reasons.

It said groundwater levels were now very low, particularly in the southern half of the region, where some wells have dropped to record levels. . .

Improvements to food traceability on agenda:

Food Safety Minister Jo Goodhew has welcomed the release of the Dairy Traceability Working Group’s reports, which make recommendations on food supply chain traceability.

“The group was formed following a recommendation from the Government Inquiry into the Whey Protein Concentrate Contamination Incident, with a mandate to investigate dairy traceability,” Mrs Goodhew says.

“However traceability is critical for all foods exported from New Zealand, and the government is now considering applying the report’s recommendations across all food sectors. . .

Magnetic milk – the lure of dairy investment down under:

In 2014 there was a flurry of inbound investment activity by Asian dairy companies, mostly from China, into the New Zealand and Australian dairy sectors. However Rabobank warns that ongoing growth in import requirements by Chinese and wider Asian dairy companies shouldn’t be taken for granted.

In a recently-released report ‘Magnetic milk – the lure of dairy investment down under’, global agribusiness banking specialist Rabobank says a specific focus for overseas investors in New Zealand dairy has been on securing access to liquid milk and ingredients for infant formula.

Report co-author, Rabobank director of Dairy Research, New Zealand and Asia Hayley Moynihan says a quest to secure access to a high-quality, safe milk pool is driving international investment in dairy down under.

“Between 2014 and 2020 we expect China and South East Asia combined to account for almost one third of the increase in global dairy imports,” Ms Moynihan says. . .

 

 – Keith Woodford:

[This post was first published in the Fairfax NZ Sunday Star Times on 22 February 2015. It is the fourth of a series of five on Fonterra.  The earlier posts were ‘The evolution of Fonterra’, ‘Fonterra’s jouney’, and ‘Fonterra’s global reach’.]

One of the big challenges for Fonterra has been to determine its overall market position. Is it a marketer of commodities? Or is it a marketer of fast moving consumer goods (fmcgs)? Or is it a marketer of specialist ingredients? Can it be all three?

The challenge of trying to be all three is that the appropriate business culture is different for each market positioning. Commodity marketing is all about logistics, efficiency, and financial discipline. Fmcgs are all about entrepreneurship, creation of brands, being fast on one’s feet, and willingness to take risks. Specialised ingredients require a focus on science and technology. . .

 

Scholar is one to watch:

Henry Buckingham says his Beef + Lamb New Zealand scholarship is worth far more than the $5,000 per annum financial support.

“It’s the people I’ve got to meet and the information I’ve picked up from those people.”

The 19 year old is one to watch. He was the 2011 winner of the New Zealand Teen Ag award, which runs along similar lines to the national young farmer of the year competition. Henry also has a goal of competing in the Coast to Coast and is currently building up for the event. . .


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