Rural round-up

February 16, 2014

Price fixing doesn’t work Part XVII – Tim Worstall:

Thailand is finding out, in a most painful manner, what happens to those who try to fix prices:

Thailand, once the world’s biggest exporter, is short of funds to help growers under Prime Minister Yingluck Shinawatra’s 2011 program to buy the crop at above-market rates. After the government built record stockpiles big enough to meet about a third of global import demand, exports and prices have dropped, farmers aren’t being paid, and the program is the target of anti-corruption probes. Political unrest may contribute to slower growth in Southeast Asia’s second-largest economy.

In order to curry favour with the rice farmers who compose a substantial part of the electorate prices were fixed and fixed high. The inevitable thus happens, magically more is produced than anyone wants to consume and here at least it is looking like the government will go bust over it. “Produced” is of course a flexible word: there are long running reports of rice being smuggled over the Burmese border to take advantage of those high Thai prices. . . .

NAIT helps clear Northland TB infection:

ONLY ONE bovine tuberculosis (TB) infected herd remains in Northland.

Six other herds have been cleared by TBfree New Zealand. The single, remaining infected herd has recently had a whole herd TB test and is also on the verge of being cleared of the disease. The six other herds were linked by stock movements made before the disease was diagnosed.

TBfree Northland committee chair Neil MacMillan QSM said the cooperation of farmers and landowners in allowing TB testing and wild animal control contractors’ access to their properties to remove the disease was appreciated. . .

Rain and visitors pour into Waimumu – Terry Brosnahan:

It was cold, wet and muddy, but the money still poured in at the Southern Field Days at Waimumu, near Gore, this week.

Persistent rain on the second day of the three-day event didn’t deter farmers from attending and spending.  

Exhibitors spoken to reported strong sales and enquiries. They said farmers and contractors had done their research and were ready to do business rather than just come for a day out.

Field days chairman Mark Dillon said 12,100 people paid to attend the first day and 12,500 the second. Figures for Friday, the final day were not available when Farmers Weekly went to print. In 2012 a record 33,000 people went through the gates of the biennial event. Based on the area filled, a record number of cars were parked. . . .

Biocontrol bugs on show at Waimumu:

THEY’RE CREEPY, they’re crawly, and they’re on display in the Environment Southland marquee at Southern Field Days.

Following on from biocontrol success in several areas, a raft of biocontrol agents including Dung beetles, Broom galls mites, Green thistle beetles; Gorse soft shoot moths and Ragwort plume moths are making an appearance in the council’s tent this year.

Senior biosecurity officer Randall Milne says it’s an opportunity to educate the public about biosecurity and biocontrol agents. . .

Success: farming smarter, not harder

Fifteen years ago Doug Avery was locked into failure.

The Marlborough sheep and beef farmer was barely coping, personally and financially, after years of successive drought had ravaged his farm.

“The severity of eight years of drought, including four one-in-one-hundred-year droughts, was so bad that I recognised the road that I was travelling was completely stuffed,” Avery says.

His 1500ha farm, Bonaveree, overlooking the Dominion Salt facility at Lake Grassmere, has been in the family for nearly 100 years.

But the glorious sunshine and drying nor’westerly winds that create perfect conditions for extracting salt from seawater were destroying the 59-year-old and his farming business.  . .

From white gold to kiwi gold:

Exchanging the dairy farm for kiwifruit vines came down to seeing the golden-sweet potential that was ripe for the picking for Bay of Plenty couple Elaine and Wayne Skiffington.

After 28 years of dairy farming, the couple decided to invest all their efforts into kiwifruit around 12 years ago and have never looked back.

“We saw the potential kiwifruit had to offer and went for it,” Wayne says.

Originally purchasing their 50 hectare property in Pongakawa, in the Western Bay of Plenty 20 years ago for run-off purposes for the dairy farm, it also happened to include a kiwifruit orchard. Not knowing much about kiwifruit but not wanting to get rid of the vines, the couple decided to lease the orchard to Direct Management Services (DMS), while they ran the farm. . .


Rural round-up

February 13, 2014

Farming confidence bodes well for Southern Field Days – Diane Bishop:

Southern Field Days is the place to be.

That’s according to 789 exhibitors who will showcase their wares at the South Island’s largest rural expo – the Southern Field Days – which starts at Waimumu near Gore today and continues tomorrow and Friday.

Schouten Machines managing director Marcel van Hazendonk said it was his second time exhibiting at the field days.

“You’ve got to be here. It’s important for exhibitors because if you’re not here you could be missing out on business,” Mr van Hazendonk said.

Southern Field Days chairman Mark Dillon expected there would be a “mad rush” this morning as exhibitors completed their sites in readiness for the crowds. “As long as the weather stays like this it will be fantastic,” he said. . .

Not much in farming qualifies as natural – Doug Edmeades:

The word “natural” and its derivatives such as “nature’s way”, “nature’s own”, “grown naturally”, a “product of nature” and “naturally organic” are tossed into product advertising like minties at a lolly scramble.

They convey a feeling that something, a product or a process, is honest and true, as in the way Mother Nature intended, and not artificial or false, in the sense of being man- made.

The implication is always that nature’s way is better than man’s way or more specifically, mankind has screwed nature and we must now bow our heads in penitential shame.

I thought it was time to play with this idea. Is our clover-based pastoral system natural? . . .

LIC’s half-year profit dips – Alan Williams:

Sales were higher but costs of a rebuild of the database and technology platform bit into LIC’s half-year profits.

The dairy genetics company reported today an after-tax profit of $26.9 million for the six months ended November 30 on sales of $135m.

In the same period a year earlier the profit was $30m on sales of $131.2m. Earnings per investment share slipped to 91.3c from $1.01.

High milk prices and stable weather had encouraged farmers to increase investment in a range of information management tools, chairman Murray King said. . . .

 

Solid Energy farm blocks for sale – Lauren Hayes:

More than 2000 hectares of farmland has been put on the market in Eastern Southland.

The land is owned by Solid Energy and is being sold, as one of the largest offerings of New Zealand dairy land, through PGG Wrightson Real Estate.

PGG Wrightson Real Estate general manager Peter Newbold said the block was made up of nine farms, three of which were dairy farms and six of which could be dairy support properties or dairy conversions. . .

 

Progress For Wool:

Over 100 New Zealand wool industry members gathered in late January to listen to international wool leaders discuss the significant progress being made on a global scale by both the Campaign for Wool and International Wool and Textile Organisation (IWTO).

Peter Ackroyd the President of the International Wool and Textile Organisation (IWTO) and Chief Operating Officer of the Campaign for Wool and Ian Hartley, the Chief Executive of the British Wool Marketing Board shared the stage.

Ackroyd shared the background and benefits of the International Wool and Textile Organisation including internationally recognised procedures which are fundamental to trade and manufacturing, coordinated environmental standards, and standardising environmental “foot printing”. . .

February 2014 – Rabobank Agribusiness Monthly & Rural Economics Monthly:

The Rabobank Agribusiness Monthly provides timely information and analysis on agricultural conditions, commodity price updates and commentary on the latest sectoral trends and developments. In conjunction, the Rural Economics Monthly provides a useful overview of the key macro developments in the local and global economies while also covering specific economic developments relevant to New Zealand and Australian agricultural sectors.

Key highlights
Agribusiness Monthly

• Beef – Strong Chinese demand drives growth in beef exports

• Dairy – Chinese supply issues to drive commodity markets in 2014

• Other costs – Baltic Dry Index weak as global economy takes wrong turn

• Fertilizer – All eyes on demand fundamentals in 2014

• Climate – Mostly normal outlook for New Zealand

• Currency – New Zealand dollar supported by solid economic growth . . .

The full report is here.

Nitrogen management made easy by new farming app:

A next-generation product for nitrogen management on-farm will be launched by the innovative Kiwi start-up company, Regen, at the Southern Field Days in Waimumu beginning this Wednesday the12th of February.

Regen, who successfully launched “ReGen Effluent” are now bringing to market “ReGen Nitrogen” – a powerful yet simple product that assists farmers make real-time decisions about fertiliser application.

“ReGen Nitrogen uses on-farm data such as climate and soil information. It calculates the expected response from nitrogen application on any given day and advises the farmer for or against application and the reasons why. The product calculates the kilograms of dry matter likely to be achieved from each kilogram of nitrogen, given the prevailing climate and soil conditions. It also calculates how many cents per kilogram of dry matter that response rate would equate to,” says Bridgit Hawkins, Chief Executive Officer & Director at Regen. . . .


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