Rural round-up

July 18, 2016

Market monopolies a bigger threat to agricultural markets than subsidies – Gerald Piddock:

Market monopolies and not subsidies are the biggest threat to economic sustainability in world agricultural markets, says an international expert.

Belgium-based AgriCord managing director Ignance Coussement said the existence of the monopolies made it difficult for smaller farmers around the world to compete against larger scale “industrialised’ farmers within a nation’s domestic market.

How smaller family farming enterprises competed against these larger scale farms in the market was a tricky issue, he said. . . 

John Key to push for Indonesia to lift beef trade restrictions for Kiwi exporters – Sam Sachdeva:

Prime Minister John Key hopes rising beef prices, as well as a global trade case, will encourage Indonesia to lift restrictions on Kiwi beef imports.

Key has promised to raise concerns with Indonesian president Joko Widodo when the pair meet in Jakarta on Tuesday evening (NZ time).

New Zealand has joined 14 other countries in taking action against Indonesia through the World Trade Organisation over its beef import restrictions and quotas. . . 

When computers became part of NZ farming:

Lincoln University’s role in making the computer one of the essential tools on the farm is told in a new book by Dr Peter Nuthall, an Honorary Associate Professor in Lincoln’s Department of Land Management and Systems.

‘Dare to compute. The early years in the development and uptake of farm computer systems’ is written about the Kellogg Farm Management Unit (KFMU) at Lincoln, which Dr Nuthall founded and was head of for all but two years of its existence, from 1980 to 1995.  

The unit was initially funded by the Kellogg Foundation in the United States, a philanthropic fund. KFMU aimed to develop computer software for farm and horticultural property managers, and train them in its use.  

Dr Nuthall says the history of the unit needs to be told as it played an important part in introducing computer technology and software to primary producers in New Zealand and Australia. . . 

Quarterly tractor sales buoyant despite dairy payout:

“New Zealand Tractor sales are relatively buoyant, despite the current dairy payout,” says NZ Tractor and Machinery Association President, Mark Hamilton-Manns.

The second quarter results of New Zealand tractor sales, compiled by the NZ Tractor and Machinery Association, show tractor sales declined slightly, by 8.5%, compared to the same quarter last year. Several segments saw an increase, however, including the consumer segment which grew by 15%, as more Kiwis bought smaller 20–60hp compact tractors for their lifestyle blocks, hire fleets and some commercial applications. . . 

Early Winter Sees Prices Ease:

Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were seven fewer farm sales (-1.5%) for the three months ended June 2016 than for the three months ended June 2015. Overall, there were 472 farm sales in the three months ended June 2016, compared to 489 farm sales for the three months ended May 2016 (-3.5%), and 479 farm sales for the three months ended June 2015. . . 

Manuka honey buzz boosts farmland prices Alexa Cook:

Demand for manuka honey has boosted the value of farmland, with many properties doubling price over the past couple of years, a real estate firm says.

The manuka honey industry has surged, with exports growing by 45 percent last year to $281 million. New Zealand is now the third largest exporter of honey by value.

Bayleys Real Estate rural agent Mark Monckton, who is based in Taranaki, said the growth was good news for some of his region’s more remote farming businesses. . . 

 Landmark merger a win-win for organic sector:

The organic community celebrated the landmark merger of two long-established charitable organisations yesterday. Members of the Soil & Health Association of NZ Inc and the New Zealand Biological Producers and Consumers Society Inc (BioGro Society) voted in favour of the proposal. This means that the Society will transfer its assets to Soil & Health, on winding up on 30 September.

The merger brings together the skills and resources of the two charities into one strong, unified organic sector body.

Soil & Health will become the proud new owner of BioGro NZ Ltd, New Zealand’s largest organic certification agency. This will empower Soil & Health to carry out its vital education and advocacy work for healthy soil, healthy food and healthy people. . . 

Synlait GM Accepts next international role:

Michael Stein, Synlait’s General Manager Quality and Regulatory, has accepted the role of Quality and Food Safety Director, Asia Pacific, with Danone Nutricia Early Life Nutrition.

“This is a great personal and professional opportunity for Michael and a clear milestone in his international career,” said John Penno, Synlait’s CEO and Managing Director.

Mr Penno was disappointed to learn Mr Stein will depart Synlait at the end of September 2016, but fully supports his decision. . . 


Rural round-up

June 23, 2015

Water presents high risk to agribusiness:

Whether it’s growing crops, generating electricity or entertaining tourists, water is a key ingredient for the success of the New Zealand economy, yet this also makes it a key risk.

PwC’s latest publication, Preserving water through collaboration that works, considers how New Zealand within a global context, has responded to water risks and the potential to improve water management in the future. New Zealand faces its own risks which differ from those in other parts of the world, and these risks, are increasing.

PwC Director and Local Government expert David Walker says, “A usable supply of water is fundamental to the New Zealand economy and permeates across all industries – and notably farming, forestry, electricity generation and public sectors. However continued effective water management is becoming more complex and costly. . .

ASB Farmshed Economics Report Cash is king for farmers

• Despite a better milk price forecast, farm cashflows will remain weak this season.

• But falling interest rates are putting cash back in farmers’ pockets.

• Meanwhile, the hot air has been let out of the NZ dollar.

Despite Fonterra’s better opening season milk price forecast, farm cashflows will still face pressure this season, according to the latest ASB Farmshed Economics Report. . .

 

TPP dairy deal ‘not at a level we would currently like’, says Key – Pattrick Smellie:

(BusinessDesk) – The Trans-Pacific Partnership trade pact does not yet include an acceptable deal on access for New Zealand’s most important exports, dairy products, with little more than a month to go before the controversial 12 nation trade deal could be concluded.

“I think the way I would describe it is there’s a deal. It’s probably not at the level that we would currently like,” said Prime Minister John Key at his post-Cabinet press conference in Wellington. He was referring to comments last week by Trade Minister Tim Groser that negotiations on dairy access to the heavily protected US, Canadian and Japanese markets had “barely started.” . . .

A2 shareholder Freedom Foods in consortium to take over milk marketer – Fiona Rotherham:

(BusinessDesk) – A2 Milk Co’s cornerstone shareholder, Freedom Foods Group, is part of a consortium with an international dairy group that’s eyeing a takeover of the dual-listed milk marketer.

Freedom Foods, which owns about 19 percent of A2 Milk with a related entity, is mulling a takeover of A2 Milk, making an indicative non-binding and conditional expression of interest to buy the shares it doesn’t already own. A deal would be contingent on the consortium, which includes an “unnamed leading international liquid dairy milk company”, undertaking due diligence. It also has a restriction on A2 Milk changing the number of shares on issue, effectively scotching a planned equity raising. . .

LIC seeks $125M debt facilities this year, targets $140M equity over decade – Jonathan Underhill:

Livestock Improvement Corp, which aims to lift annual revenue to $1 billion by 2025, says it plans to establish $125 million of debt facilities this year and is likely to require $140 million in equity capital over the next 10 years to meet its growth goals.

Details of its capital requirements are included in a presentation the bull semen and dairy genetics database manager is taking around the country to explain to its shareholders how its changing focus, with increased capital spending and new product development, is changing its financial profile. Previously it has only required seasonal debt funding, typically for three months, the presentation shows. .

Upper South Island Butchers Battle It Out:

The best young butchers in the Upper South Island have been announced following the Alto Young Butcher and Competenz Butcher Apprentice of the Year regional final on Saturday.

Rowan Lee from Peter Timbs in Bishopdale was the winner of the Alto Young Butcher category, while Matthew Clemens from New World Ilam topped the Competenz Butcher Apprentice category, both highly sought after titles. . .

 

Tractor and Machinery Association elects new President:

Mark Hamilton-Manns, New Zealand Sales Manager for John Deere, has been elected President of the Tractor and Machinery Association (TAMA).

Formerly Vice President of the organisation, he takes over from Ian Massicks, New Zealand Kubota Manager for CB Norwood Distributors, who had been President for six years.

Roger Nehoff, General Manager New Zealand Retail for Landpower New Zealand, was elected Vice-President. . .


%d bloggers like this: