Rural round-up

July 18, 2019

Suggestions definitely off the agenda – Neal Wallace:

Fonterra will not retain 50c of the milk payout, as suggested by commentators, or change the way it sets the milk price as part of its business reset, chief financial officer Marc Rivers says.

It is confident it can address its debt issue and strengthen its balance sheet without those measures.

The reset is on track to meet its target of $800m this year while reduced spending will boost its profitability.

“We’re both tightening our belts and looking for savings but also looking at our investment portfolio,” Rivers said. . .

Speculators push lamb prices up – Neal Wallace:

Speculators have pushed North Island store lamb prices 35c/kg above the same time last year despite winter slaughter prices being similar to last year.

Affco’s recent $9/kg contract for prime lambs appears to have hyped the store market even though AgriHQ analyst Nicola Dennis says other meat companies are offering winter slaughter prices that mirror last year’s at about $7.50 to $7.80/kg.

The contract is available only in August to Affco clients who have been regular suppliers and applies only to stock processed at North Island plants. . .

Grower group still busy after 100 years – Pam Tipa:

A group of vegetable growers centred on Pukekohe in South Auckland say regulatory changes could be do-or-die for their growing enterprises.

The Pukekohe Vegetable Growers Association (PVGA) celebrated its 100th anniversary last year and vice president Kylie Faulkner says the advocacy role of the group is crucial.

“There are a lot of changes happening now with the Resource Management Act, the National Water Policy Statement and how the different councils are approaching those rules,” she told HortNews.  . . 

Vege growing nice addition to farming business – Peter Burke:

It’s easy to see what the small central North Island town of Ohakune is famous for. On the outskirts of the town is a huge carrot and a children’s play area based on this popular vegetable.

Peter Burke reports on a vegetable grower who has helped enhance the town’s great reputation.

Ron Frew started growing carrots in 1967, just after coming home to Ohakune from completing his university degree. Since then, he and his family have built up a huge farming business which includes growing carrots and potatoes.

They also have a dairy farm and a large sheep and beef property running 25,000 breeding ewes and 650 breeding cows.  . . 

Protein competition on the rise in China – Sally Rae:

Increased protein competition in China is being cited by Rabobank as something to watch as strong demand for beef from China drives up export returns.

In Rabobank’s latest Agribusiness Monthly report, animal protein and sustainability analyst Blake Holgate said the China Meat Association had announced the Chinese government would be expanding its sourcing of animal protein products in an attempt to replace the lost pork production that had resulted from the African Swine Fever outbreak.

That might include allowing imports of Indian buffalo and lifting the current ban on UK beef. There were also reports of an increase in the number of international meat facilities being accredited for export into China. . .

Why George Monibot is wrong – grazing livestock can save the world – L. Hunter Lovins:

George Monbiot’s recent criticism of Allan Savory’s theory that grazing livestock can reverse climate change ignores evidence that it’s already experiencing success

In his recent interview with Allan Savory, the high profile biologist and farmer who argues that properly managing grazing animals can counter climate chaos, George Monbiot reasonably asks for proof. Where I believe he strays into the unreasonable, is in asserting that there is none.

Savory’s argument, which counters popular conceptions, is that more livestock rather than fewer can help save the planet through a concept he calls “holistic management.” In brief, he contends that grazing livestock can reverse desertification and restore carbon to the soil, enhancing its biodiversity and countering climate change. Monbiot claims that this approach doesn’t work and in fact does more harm than good. But his assertions skip over the science and on the ground evidence that say otherwise. . .

 


Rural round-up

October 10, 2018

High lamb prices will hit profit – Nigel Malthus:

Alliance Group has warned that its annual result, due to be reported in November, will show a drop in profit.

“The financial performance of the company this year will be down… meaningfully,” chief executive David Surveyor told farmers attending the company’s roadshow meeting in Cheviot last week.

However, he assured shareholders the company is profitable, the balance sheet remains “incredibly strong, and for the avoidance of any doubt we have the ability to make sure we build our company forward.” . . 

3 M bovis farms confirmed through bulk milk testing – Sally Rae:

 Only three farms have been confirmed through bulk milk testing as having Mycoplasma bovis – but the Ministry for Primary Industries says it is too early to speculate about final results.

The second bulk milk surveillance programme was being undertaken now as spring was the best time to test for the disease, the ministry said.

Infected animals were more likely to shed the bacteria after a stressful period, such as calving and the start of lactation
.

To date, almost 10,000 of the country’s 12,000 dairy farms had completed two rounds of testing, MPI said in an update
.

Govt committed to Mycoplasma bovis eradication; $25.6M spent to date – Rebecca Howard:

(BusinessDesk) – The government has paid $25.6 million in compensation claims related to Mycoplasma bovis and remains committed to phased eradication, said Prime Minister Jacinda Ardern and Biosecurity Minister Damien O’Connor.

One of the biggest challenges for farmers has been navigating the compensation process and Ardern and O’Connor announced a new recovery package aimed at making that easier.

The package includes a team of rural professionals who understand both farming and the compensation process who can sit down and work with farmers on their claims. The Ministry for Primary Industries has also produced an improved compensation form and guide and an online calculator of milk production losses. It will also provide regional recovery managers for key areas. . . .

Marc Rivers: The man with Fonterra’s fortunes in his hands – John Anthony:

Marc Rivers has a TEDx talk. And it’s not about numbers, profit and loss – and there is no mention of balance sheets.

Rivers, Fonterra’s top number cruncher, is not your typical chief financial officer.

Unlike their charismatic chief executive counterparts, chief financial officers are generally regarded as robotic accountant types, capable of presenting a company’s financial position in jargon that few people understand. . . 

State of the Rural Nation Survey finds rural dwellers less likely to talk to health professionals

  • Seven in ten people have felt increased stress over the last five years
  • Those aged 18-39 feeling the most pressure
  • 61 percent said living rurally limits access to mental health resources

A recent survey has found that 70 percent of rural New Zealanders have felt more stress over the last five years.

The State of the Rural Nation Survey, conducted by Bayer New Zealand and Country TV, asked participants several questions regarding their views on critical topics impacting rural New Zealand today, including a series of questions around mental health.

Of those who responded that they had felt increased stress over the last five years, over half (54 percent) attributed financial pressures as the main reason, while the impact of environmental factors (ie droughts, flooding, hail) on people’s work and livelihoods came in at a close second (49 percent). . . 

Gene editing in brief: What, how, why:

Embracing gene editing could have huge benefits for New Zealand’s primary industries and we shouldn’t be scared of the technology, scientists say.

The latest paper in a series from the Royal Society Te Apārangi outlined five ways gene editing could be used in farming and forestry and scientists are keen for Kiwis to discuss the issue.

It sounds scary, though.  So what’s it all about?

Gene editing (also known as genome editing) is the targeted alteration of a specific DNA sequence. While older genetic modification technology typically added foreign DNA to a plant or animal, gene editing involves precise modification of small sections of existing DNA.  . . 

Mental health workshop focus on rural people:

Workshops being held across the country are equipping farmers and rural professionals with the tools to recognise and support those who are struggling.

NZ Young Farmers has organised five of the Good Yarn workshops, the second of which was held in Carterton last week.

Greytown dairy farmer Rachel Gardner, one of 14 attendees last week, is encouraging other young people to talk about mental health. . . 

Meat measurement technology given funding boost :

Adelaide-based AgTech startup MEQ Probe has received $500,000 funding from Meat & Livestock Australia and industry partners Teys Australia and the Midfield Group to test ground-breaking technology to objectively measure the eating quality of meat.

Coming just a few months after MEQ Probe took home a coveted Pitch in the Paddock prize at the tri-annual Beef Australia event, the funding also includes investment from MEQ Probe founder, AgTech betaworks Availer.

It will enable a commercial pilot of the MEQ Probe technology, which uses nanoscale biophotonics to measure the marbling and tenderness of meat; both major drivers of eating quality.   . . 

 

Blueberry orchard for sale offers jam-packed opportunities:

A substantial blueberry orchard with its own commercial processing plant and refrigerated pack-house – producing one of the rarest but highest-yielding blueberry crops in New Zealand – has been placed on the market for sale.

The 8.8-hectare property at Gordonton in the Waikato features some eight hectares of blueberry plantings under canopy cover, along with buildings, equipment, and plant used for picking, sorting, packing and chilling blueberries.

Planted on peat soil and regularly fertilised, the orchard has some 15,000 trees – including 500 of the new Jaac variety of blueberry which produces a heavier-yielding crop than traditional clones. Other blueberry varieties grown in the orchard include Powder Blue, Tiff Blue, Centra Blue, O’Neal, Sunset, and Velluto. . . 


Rural round-up

October 2, 2018

Fonterra’s China farms are a target for asset sales – Keith Woodford:

This is the first of a two-part series putting Fonterra’s China Farms under scrutiny. In this first part, the focus is on the origins of how Fonterra managed to entrap itself in its loss-making China Farms project.

Fonterra’s new leadership team of Chair John Monaghan, CEO Miles Hurrell and CFO Marc Rivers has made it clear in recent farmer meetings that debt reduction is a priority.  All options are supposedly on the table. However, the only way to achieve rapid debt reduction is by selling non-strategic assets. In that context, Fonterra’s China Farms must surely be lined up in the cross wires.

Fonterra’s China Farms have been loss-making for at least four years. Accumulated losses over that period, using market prices rather than internal transfer prices, total NZD $179 million EBIT.  These losses are before any contribution to Fonterra’s unallocated overheads of nearly $500 million per annum or paying interest on the borrowed capital. More detail on that in Part 2 of this series. . .

Planting a billion trees – Primary Land Users Group:

How does that relate to the Waikato Region under PC1?

The Government has set a goal to plant one billion trees over 10 years (between 2018 and 2027).

Why plant 1 billion trees? The short answer is because trees absorb carbon dioxide (CO2) from the atmosphere and turn it into wood, which holds carbon for as much as hundreds of years. Trees absorb CO2, protect the soil, improve water quality and create wildlife habitat. The long answer is because New Zealand has committed to reduce greenhouse gas levels which contribute to climate change. It has three reduction targets – for 2020, 2030 and 2050.

Urbanitess keen for a career in dairy :

One in five of all people wanting to take up a dairy apprenticeship is coming from New Zealand’s biggest city, and Primary ITO chief executive Linda Sissons says many more will be needed where they came from. Primary ITO (industry training organisation) and Federated Farmers are celebrating the first year of the joint Federated Farmers Apprenticeship Dairy. . .

Have your say on the dairy herd management scheme:

The Ministry for Primary Industries (MPI) wants to hear from the dairy industry and people with an interest in how the dairy herd improvement regulatory regime can help to ensure that New Zealand’s dairy industry remains world leading.

The dairy herd improvement regulatory regime has not been comprehensively reviewed since it was established in 2001, says Emma Taylor, MPI’s Director of Agriculture, Marine & Plant Policy. “It’s important the dairy herd improvement regulatory regime reflects the changing needs of the dairy industry. It’s timely to look at how the regulatory settings can better support industry both now and into the future. . .

Consuming milk at breakfast lowers blood glucose throughout the day :

A change in breakfast routine may provide benefits for the management of type 2 diabetes, according to a new study published in the Journal of Dairy Science. H. Douglas Goff, PhD, and the team of scientists from the Human Nutraceutical Research Unit at the University of Guelph, in collaboration with the University of Toronto, examined the effects of consuming high-protein milk at breakfast on blood glucose levels and satiety after breakfast and after a second meal. Milk consumed with breakfast cereal reduced postprandial blood glucose concentration compared with water, and high dairy protein concentration reduced postprandial blood glucose concentration compared with normal dairy protein concentration. The high-protein treatment also reduced appetite after the second meal compared with the low-protein equivalent.

“Metabolic diseases are on the rise globally, with type 2 diabetes and obesity as leading concerns in human health,” Dr. Goff and team said. “Thus, there is impetus to develop dietary strategies for the risk reduction and management of obesity and diabetes to empower consumers to improve their personal health.” . .

Capacity crowd expected at inaugural ‘Beyond Bovis’ seminar:

 Hundreds of farmers and rural professionals are expected to attend the inaugural ‘Beyond Bovis’ seminar in Hamilton next month Held in conjunction with the Waikato A&P Show the event is, according to the Director of Showing Waikato, Doug Lineham, the first of its kind in New Zealand, its goal being to rebuild and strengthen the New Zealand cattle industry in the wake of Mycoplasma Bovis (Mb).

The impact of (Mb) has extended beyond the breeding and animal containment strategies of individual farms to a widespread impact on the movement of all cattle,” Doug Lineham said. . .

 

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