Rural round-up

August 1, 2015

A Free Trade Deal must include Free Trade:

Federated Farmers says the Government must hold firm on a deal for agriculture at the Trans Pacific Partnership talks in Hawaii.

Federated Farmers’ Dairy Chair Andrew Hoggard is adamant that the reason for New Zealand being at the 12 nation talks is to establish free trade in the region, and a trade deal that doesn’t include meaningful access for dairy is not a free trade deal.

“Let’s be clear. Dairy is our largest export earner. It would be like the Japanese concluding a deal that didn’t have anything in it for automotive or technology trade.” . .

 

Like Uber but for dairy – Offsetting Behaviour:

There could be a lot of opportunities for Canadian dairy in opening up their markets to foreign competition, and in having foreign markets opened to their products. But there would be transitional costs.

The Globe and Mail reports on some relevant aspects here. But they miss the supply management angle. One important reason that Canadian dairy farmers oppose changes to the system is that they own a lot of quota rights. Under the Canadian system, the right to milk a cow costs money. And just like taxi permit owners in regulated markets hate Uber, Canadian dairy farmers hate New Zealand. But who can really blame them? If you were sitting on a big regulatory asset somebody proposed wiping out, wouldn’t you object?  . . .

Health and Safety — some way to go – Katie Milne:

The long awaited report back to the Select Committee on the Health and Safety Reform Bill has now occurred.

We don’t totally know what we are getting. The Labour Party will be opposing the legislation.  The Council of Trade Unions doesn’t like it. The Government has signalled a Supplementary Order Paper to amend the Bill before it goes through its final stages before becoming law and there are regulations to be drafted to sit under the eventual Act as well.

Besides this, WorkSafe New Zealand has considerable discretion how it implements the new Act and the interpretation courts put on the sections and regulations will keep a whole lot of lawyers busy for some years to come. . .

Farmers warned to prepare for more milk cuts:

National dairy industry body DairyNZ is warning farmers to prepare for further cuts to companies’ already low milk price forecasts.

It comes as ASB announced this morning it expects Fonterra to slash its forecast by $1 to $4.25 per kilo of milk solids when it reviews its payout next week.

However, the bank is predicting an end of season payout of $4.50. . .

T&G Global strengthens position as asparagus marketer –  Jonathan Underhill:

(BusinessDesk) – T&G Global, the fruit marketer controlled by Germany’s BayWa, has acquired assets from long-term Australian partner M&G Vizzarri, strengthening its position as a major asparagus trader.

T&G’s 50 percent-owned Australian subsidiary Delica will buy Vizzarri Farms, the asparagus marketer founded by Mario and Gina Vizzarri, from its Delica co-shareholder M&G Vizzarri. No price was disclosed.

The joint venture will be renamed T&G Vizzarri Farms and will become “one of the leading asparagus traders in the southern hemisphere,” T&G Global said in a statement. Targeted revenue from the enlarged business is about $40 million in its first year and more than 5,000 tonnes, it said. Currently Delica handles export sales for Vizzarri Farms, which owns 29 properties with a combined 1,900 acres. . .

Treble Cone’s Busiest Ever Start to a Snow Season:

The South Island’s largest ski area – Treble Cone (Wanaka, New Zealand) has enjoyed its busiest ever start to a snow season and has set new records for both its ‘busiest week overall’ and ‘busiest July ever’.

With fantastic pre-season and early season snowfalls the entire mountain including the Home and Saddle Basins, the right-of-passage Summit Slopes, the revered expert only Motatapu Chutes, and the Matukituki Basin were all open from Opening Day.

Over the first week of the New Zealand school holidays Treble Cone enjoyed its busiest ever week of skier visits, with all terrain open spreading guests across the entire mountain enjoying the cold dry snow.

 


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