Rural Round-up

June 17, 2019

ANZ’s rural manager questions capital call – Richard Rennie:

It is a case of when rather than if banks will have to increase their capital reserves against loans and rural customers will end up paying, ANZ commercial and agricultural manager Mark Hiddleston says.

Late last year the Reserve Bank said it wants banks to increase the amount of capital held as security against loans, with weighted capital increases likely to be greater for riskier parts of banks’ lending. 

That prompted fears the dairy and construction sectors in particular could wear the brunt of the higher capital requirements through higher interest rates. . .

Community a priority for environmental winners – Nigel Malthus:

Staying in touch with their community is a priority for the 2019 Canterbury regional Ballance Farm Environmental Award winners, Duncan and Tina Mackintosh.

The Mackintoshes own and run White Rock Mains farm, a 1056ha sheep and dairy support property nestled against the hills at North Loburn, near Rangiora.

Their recent winner’s field day featured presentations from the local North Loburn Primary School, which has partnered with the Mackintoshes on Garden to Table and Predator-Free programmes.

Cattle culls don’t rely on tests – Annette Scott:

Herds with cattle bought from properties confirmed as being infected with Mycoplasma bovis will be culled, regardless of test results, Primary Industries Ministry chief science adviser John Roche says.

More efficient testing is in the pipelines but it’s several years away.

In the meantime any herds containing cattle from properties confirmed as infected will be considered extremely high risk and will also be culled, Roche said.

Tests being used are adequate to determine the need to cull infected and extremely high risk animals.  . .

Climate change and the rural way of life – Alex Braae:

The government’s environmental policy is creating major tensions in farming communities. Alex Braae went to a meeting in Taumarunui to see it play out. 

“We’ve got to get the government’s attention somehow. Okay, we’re not all going to jump on our tractors and drive to Wellington. But we could jump on our tractors and block all the roads for a day and a half, just to get them to listen.”

The comment came from the floor, at a public meeting on carbon farming being held at the Taumarunui Golf Club. It was a rainy day, which meant farmers had some free time. The room was packed and fearful. In question was the future of their town, their district and their way of life.

A while ago, some farmers started talking about the ‘triple bottom line’ – economic, environmental and social. They started assessing themselves on not only how much money could be brought in, but how the farm contributed to the wider community and ecosystem. It’s a concept borrowed from the world of corporate sustainability, and has parallels in the long term view of what farming should be about. Obviously, the performance of the farming world has been mixed on all three, particularly the environmental bottom line, but the mindset is changing.. . 

One billion trees snag? Bay of Plenty, Taupō face ‘drastic’ shortage of planters – Samantha Olley:

The Government wants one billion trees planted across the country by 2028. It has allocated $120 million for grants for landowners to plant new areas and $58m to set up Te Uru Rākau forestry service premises in Rotorua. Across the country, 80m trees are expected to be planted this season. However, Bay of Plenty and Taupō contractors are facing an uphill battle to get trees in the ground. Reporter Sam Olley investigates.

CNI Forest Management has 100 planters working in the wider Bay of Plenty and Taupō this season but it’s not enough and the company is struggling to find workers now more than ever before.

Director Stewart Hyde told the Rotorua Daily Post the company started recruiting six weeks before the start of May when planting began, but “we just can’t get enough people”.

“It’s having a drastic effect.” . . 

How to restore depleted soils with cattle – Heather Smith Thomas:

Michael Thiele’s mission today is to acquaint more farmers and ranchers with a holistic view of agriculture.

Thiele grew up on a farm west of Dauphin, Man., just north of Riding Mountain National Park. His father had a small grain farm and a few cows.

“We were busy trying to farm and make a living and like all the other farmers around us, we were creating a monoculture of grain crops — mostly wheat, canola, oats and barley,” says Thiele.

“When I went to university, I thought soil was simply dirt,” he says. People didn’t realize how alive soil is, teeming with life and activity, and how much we depend on a healthy soil system. Now Thiele is trying to help producers understand that the way we farmed created unhealthy soil. . . 

 


Rural round-up

August 20, 2018

Big US beef index job for AbacusBio – Sally Rae:

Dunedin-based agribusiness consulting company AbacusBio is rebuilding the selection indexes for the American Angus Association, the world’s largest beef cattle society.

AbacusBio partner Jason Archer, who has specialised in beef cattle throughout his career, was thrilled the company was chosen for the work.

The association has more than 25,000 members across the United States and Canada and the scale of the industry was “unbelievable”,  Dr Archer said.

In fact, the work that was being done by AbacusBio meant it affected billions of dollars’ worth of production.

Often, breed societies had selection indexes balancing all the traits that were being measured, and those indexes were both a selection tool and also became “a bit of a benchmark” when evaluating bulls, he said. . . 

Walk On history ‘pretty amazing Kiwi story’ – Sally Rae:

The establishment of Walk On is a “pretty amazing Kiwi story”, new chief executive Mark Davey says.

The  company, founded by young entrepreneur Lucas Smith, produces blister protection products using soft merino wool.

It has appointed Dr Davey as its first chief executive as part of an initiative to carry the momentum of Walk On’s initial domestic success into international markets.

Walk On had secured a national distribution deal with outdoor and adventure sports multi-channel retailer Torpedo 7 and was also available in 10 retail stores nationally, Dr Davey said. . . 

Milking it: NZ’s milk price: Who’s getting rich? Susan Edmunds:

New Zealand milk prices are “astoundingly high” – and we might have supermarkets to blame, one marketing expert says.

Bodo Lang, head of department at the University of Auckland Business School, said the price paid by New Zealanders stood out internationally.

“Particularly when considering that New Zealand is home to one of the world’s largest dairy companies, Fonterra. The problem, however, is not restricted to milk. Other dairy products too have, in comparison with other industrialised nations, exceptionally high prices.”

He said a litre of fresh milk in Germany was selling for the equivalent of $1.51, compared to $2.37 in New Zealand. . . 

Milking it: ‘Micro differences’ between brands. Why are some customers happy to pay a premium? – John Anthony:

Craig Prichard remembers when milk tasted very different from region to region.

“Milk in Taranaki where I grew up was different to the milk in Napier,” Prichard said.

The Massey associate professor, and sheep milk specialist, said things like climate, pasture and production methods used to greatly change the taste profile and characteristics of milk.

“That’s largely disappeared.” . . 

Rural land value a shrinking influence for a bank loan – Andrea Fox:

Banks’ rural credit decisions will increasingly depend on sustainable farming practices, not land value, says the country’s biggest rural lender ANZ Bank.

Commercial and agriculture managing director Mark Hiddleston said ANZ’s credit decisions have for some time been based more on farm performance than the traditional 65 per cent land-to-value ratio and that model looks likely to increase in use.

Also due for change he believes is the banking sector’s use of “a lot of averages”. . . 

Horizons proposes plan change that will get farms compliant – Laurel Stowell:

In an effort to get intensive farms legally consented, Horizons Regional Council is proposing to change numbers on the maximum nitrogen they can leach in its controversial One Plan table.

The matter was discussed at a strategy and policy committee meeting on August 14, and councillors agreed to a three-staged approach.

Last year the Environment Court told the council it must refuse consent to farmers unable to restrict nitrogen leaching to totals in the One Plan’s Table 14.2. The totals were taken from a version of Overseer, a computer system for estimating the amount of nitrogen leaching through soil. . . 

 

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Rural round-up

February 3, 2018

Farmers band together for storm clean-up – Alexa Cook:

West Coast farmers are picking up the pieces after ex-cyclone Fehi left paddocks ruined, fences ripped out, and trees down.

The Westland dairy factory in Hokitika only has limited power and can’t process milk or pick it up from several parts of the region – including farms in Ikamatua and north, Runanga up to Karama, and Mount Hercules south.

Dairy farmer Rebecca Keoghan lives near Westport and manages seven Landcorp farms in the area. . . 

Events to offer advice to farmers – Sally Rae:

Various events and gatherings to help farmers coping with drought conditions have already been scheduled throughout Otago.

On Tuesday, the drought in Southland and parts of Otago was classified as a medium-scale adverse event.

That classification covered all of Southland, plus the Queenstown Lakes, Central Otago and Clutha districts and triggered additional funding of up to $130,000 for rural support trusts and industry groups to co-ordinate recovery support. . . 

Bull attack: ‘Pushed me into the ground, gored me a bit‘ – Phil Pennington:

A Hawke’s Bay farmer and his dogs have survived an attack by a half-tonne bull that flipped over his quad bike.

“One bull just broke out of the mob and snorted a couple of times, and you have that sense of dread that something’s not going to go right here,” said Robert Pattullo, 57, from his family farm at Puketitiri 15km west of Napier.

“He charged at the bike – I’d hopped off by that stage – completely flipped it over in one go. This is a 650-kilo bull against a probably 350-kilo bike.”

Friesian bulls were normally placid and he did not know what had set the animal off yesterday morning, Mr Patullo said. . .

Milk producer cuts forecast price:

Westland Milk Products has cut its forecast milk price back by more than 20 cents.

The co-operative is now expecting a price of between $6.20 and $6.50.

Fonterra’s farmgate forecast milk price is currently $6.40 kg/ms, and Synlait is forecasting $6.50.

Westland chair Pete Morrison said the drop in milk price was in line with other milk companies.

“We’re kind to all our stakeholders and we want to keep it as reliable and with as much integrity as possible … so we thought best to indicate that now. . . 

Rising milk price helps push Open Country annual revenue above $1B –  Jonathan Underhill:

(BusinessDesk) – Open Country Dairy, New Zealand’s second-largest milk processor, generated more than $1 billion of revenue last year but payments for milk rose faster than receipts from customers and profit fell.

Profit was $23 million in the year ended Sept. 30 from about $62 million a year earlier, its accounts show. Sales rose 34 percent to $1.1 billion while cost of sales gained about 44 percent.

Open Country didn’t disclose volume figures in its public annual accounts but chair Laurie Margrain said it was up on a year ago.. . .

Beef + Lamb NZ to review investment in Sector Capability:

Beef + Lamb NZ (B+LNZ) is seeking farmers’ views on its Sector Capability Programme.

Richard Wakelin, B+LNZ’s General Manager Innovation, says the review will consider farmer investment through B+LNZ in the Sector Capability Programme overall and its various activities.

“The review will look at B+LNZ investment in the current portfolio of activities, how these activities align with farmer needs and perceptions, and how they provide value back to the sheep and beef sector.” . . 

Global demand for NZ kiwifruit creating regional growth opps:

The New Zealand kiwifruit sector is set for growth following 2017’s record season and new development opportunities across the country, according to the ANZ Kiwifruit Insights paper.

The sector has bounced back following the PSA crisis, helped by increasing global demand which saw kiwifruit sales rise by $694m from the 2015/16 – 2016/17 seasons.

“The success of the kiwifruit sector is remarkable. It has continued to invest in new varieties while staying connected to consumer demand and has worked hard to keep international markets alive,” said ANZ Managing Director for Commercial & Agri, Mark Hiddleston. . . 

New Zealand and India building stronger horticultural relationships:

A new partnership has been announced between New Zealand and the State of Himachal Pradesh under the Himachal Pradesh Horticultural Development Project which targets smallholder farmers in northern India.

The Himachal Pradesh Horticultural Development project aims to be the start of a much broader relationship with New Zealand horticulture.

The New Zealand team, working on the project, includes scientists from Plant & Food Research, Agfirst Engineering, Fruition Horticulture and other New Zealand-based specialists with additional support from the New Zealand pipfruit industry body, New Zealand Apples & Pears and New Zealand Government agencies. . . 

The Woolmark Company and adidas present the Woolmark Performance Challenge:

The Woolmark Company and leading sports brand adidas have joined forces to launch a design competition focussing on the development of innovative, forward-thinking products for the performance industry. The Woolmark Performance Challenge is a new annual competition for tertiary students in Europe and North America and is set to kick-start the career of the eventual winner.

The competition provides an unrivalled opportunity for tertiary students to develop innovative new product applications within the sports and performance market, by applying the science and performance benefits of Australian Merino wool. . .


Rural round-up

June 16, 2017

Mānuka genes could help fight myrtle rust – scientist:

Mānuka tree genetics has the potential to help the myrtle plant family develop resistance to myrtle rust, a scientist says.

The airborne disease has spread to Te Puke, meaning there are 46 infected properties across Northland, Waikato, Taranaki and the Bay of Plenty.

The Ministry for Primary Industries said it was no closer to containing the spread, which affects all members of the myrtle plant family – including pōhutakawa and mānuka. . .

Steady progress with Primary Growth projects – Allan Barber:

It is eight years since the Primary Growth Partnership programme was announced by the then recently elected National Government. At the end of 2016 there were 20 projects under way and just two completed, but 30th June sees the completion of FarmIQ, the largest of the red meat sector programmes. This seems to be an appropriate point to evaluate the success of PGP, in particular the six meat and two wool programmes which have been allocated total Crown and industry funding of $342 million.

The key point about PGP is its funding structure, with the taxpayer and industry putting up approximately half each, thus ensuring industry commitment to a better than even chance of a successful outcome. Nevertheless, as a general principle, the larger the amount of money invested, the greater the difficulty of measurement and the wider the potential for missing the target. . . 

Impassioned plea for rural health research funding:

The head of the national rural health group today made an impassioned plea for the government to consider much-needed rural research.

Michelle Thompson, chief executive of the Rural Health Alliance Aotearoa New Zealand (RHAANZ) says there is a strong feeling that rural health outcomes are poorer than urban health outcomes but until they have the hard data they can’t be sure whether there is a difference or understand the scale of the difference.

Earlier this year the RHAANZ presented its five most urgent priorities to government, one of which included comprehensive rural health research support. . . 

Cartel’s gonna cartel – Eric Crampton:

Canada’s dairy cartel continues to impress. After Canada negotiated increased access to Canadian markets for European cheesemakers, the dairy cartel managed to do this:

Under the terms of the Comprehensive Economic and Trade Agreement (CETA), Canada has agreed to allow nearly 18,000 additional tonnes of European cheese to be imported tariff free.

But CBC News has learned that when Canadian officials briefed their European counterparts on how they would allocate the quota for importing this new cheese, not everyone around Europe’s cabinet table felt Canada’s approach lived up to the spirit of the negotiations.

A European official, speaking on the condition of anonymity because he was not authorized to speak, characterized the state of things as a “row.” . . 

Beef and Sheep sector outline key priorities in their 2017 Manifesto: “Blueprint for partnership with the New Zealand Government”:

Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA) are presenting the sector’s priorities to all political parties ahead of this year’s General Election.

The two organisations, who represent New Zealand sheep and beef farmers and meat processors, marketers and exporters have outlined in a manifesto a set of key priority policy areas on which to base a stronger partnership with government. 

MIA Chief Executive Tim Ritchie said the sheep and beef sector is our second largest goods exporter and a significant contributor to the New Zealand economy. . . 

Launch of Māori Kiwifruit Growers Forum an industry first:

The Māori Kiwifruit Growers Forum was officially launched yesterday in Tauranga, representing a first for the kiwifruit industry.

The forum has been created to advocate for the interests of Māori growers in the sector and is a partnership between Māori kiwifruit growers, Te Puni Kōkiri and Zespri.

Minister for Māori Development, Hon Te Ururoa Flavell attended the launch at Te Hua Whenua Orchard in Welcome Bay. . . 

Finalists selected in NZ Sheep Industry Awards:

Leading farmers, scientists, a retired sheep breeder and a ground-breaking stock trading company are among the finalists selected in this year’s Beef + Lamb New Zealand Sheep Industry Awards.

This year’s Awards feature five people-related categories in which finalists were selected by a team of judges representing the farming and agribusiness industries.

These “people” awards sit alongside the Supplier of Year Award, where processing companies nominate a top supplier and four genetics awards, in which the top three animals in each category are selected through the Beef + Lamb New Zealand Genetics evaluation. . . 

Kiwi entrepreneurial spirit on show at Fieldays:

From dairy to blueberries and from milk to beer, agribusiness diversification is the hot topic at this year’s National Fieldays according to ANZ’s Managing Director Commercial & Agri Mark Hiddleston.

Visiting Fieldays this week, Mr Hiddleston said many producers were looking outside their main business for ways to make their operations more profitable and resilient.

“In just half an hour I met three different dairy farmers who either have, or are in the process of, looking at other forms of milking. That might be diversifying to milking sheep or goats, or moving into something entirely different, such as hops to support the craft beer industry,” Mr Hiddleston said. . . 

Resurgent New Zealand Dollar Lowers Wool Prices:

New Zealand Wool Services International Limited’s Marketing Executive, Mr Nathan Arthur advises that the rise in the New Zealand dollar generally saw corresponding lowering of local wool prices in most areas apart from fine crossbred fleece and some targeted coarser types.

Of the 7,930 bales on offer 56 percent sold. . . 

The value of a good rural school:

The integral role that a school plays in a local community is heightened in rural locations where it becomes a focal point for social activity and where a real sense of ownership is instilled among parents.

With more people seeking out lifestyle properties where they can raise their families away from the pressures of a fast-paced city, the educational opportunities on offer are very much part of the decision-making process. A good rural school is a key driver for a tree change lifestyle.

It’s not just a matter of reading, writing and arithmetic. The small country school takes on a life of its own. It’s usually a Civil Defence base, often its swimming pool is available to families after-hours via a key system, the principal will know all the children by name and will sometimes be teaching, and pet days are part of the school calendar. . . 

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A farmer’s tan from Agri 67


Rural round-up

June 14, 2017

Man who coined Gypsy Day says controversy ‘ridiculous’:

Former Northland rural report broadcaster Goldie Wardell is amused, but slightly miffed, that a term he introduced to New Zealand’s farming lexicon is now being called derogatory, and is banned in some circles.

It’s Gypsy Day. There, we’ve said it (while we still can).

“I’ve come in to confess,” Mr Wardell announced not too penitently. “I started the expression.”

Mr Wardell’s voice sounds familiar as he relates the story of how, back in the 1980s, he coined the phrase Gypsy Day for June 1, the traditional day sharemilkers pack up their cows and households and move to a new farm. . . 

Primary Sector Science Roadmap launched:

Primary Industries Minister Nathan Guy and Science and Innovation Minister Paul Goldsmith have tonight launched the Primary Sector Science Roadmap at the National Fieldays.

Mr Guy says science will be a key driver in lifting overall primary sector exports to the target of $64 billion by 2025.

“From climate change, to changing consumer preferences, to a greater emphasis on issues like traceability and provenance, science and technology have an important role to play in ensuring our primary industries remain globally competitive,” says Mr Guy. . . 

Smaller New Zealand wine vintage is full of promise:

The 2017 grape harvest has come in smaller than expected according to New Zealand Winegrowers.

The 2017 Vintage Survey shows the harvest totalled 396,000 tonnes, down 9% on last year said
Philip Gregan, CEO of New Zealand Winegrowers. “Given strong demand in overseas markets
wineries had been looking forward to a larger harvest this year. With the smaller vintage however,
export volume growth is likely to be more muted in the year ahead.”

Mr Gregan said the smaller vintage was due to weather conditions. “Generally summer weather was
very positive but there were some challenges as the season progressed.” . . . 

More success for Patersons – Sally Rae:

The Paterson family, from Gimmerburn, have added to their considerable farming successes by winning the New Zealand ewe hogget competition.

The awards night for the competition, which was in its 21st year, was held in Cromwell on Thursday.The family won both the fine wool and crossbreed categories and the overall title went to their crossbreed flock.

Father and son Allan and Simon Paterson, with their respective wives, Eris and Sarah, are the fourth and fifth generations to farm Armidale, which has been in the family since the 1880s. . . 

Positive steps towards tackling stock theft:

Federated Farmers is delighted to see the Sentencing (Livestock Rustling) Amendment Bill being drawn from the ballot to go before Parliament.

Livestock theft is not only a financial burden to farming businesses but also a risk to people’s safety. Farmers are often alone when confronting stock thieves.

“It’s frightening when you are faced with someone in a remote rural area who is most likely armed. The successful passing of this bill would show the victims of livestock rustling that the justice system is prepared to take these crimes seriously,” says Rick Powdrell, Federated Farmers’ Rural Security Spokesperson. . . 

More farmers seeking information on how to comply with water quality rules:

More Otago farmers are looking for information and advice on how to minimise their operation’s impact on water quality and comply with rules in the Otago Water Plan.

That’s one of the key findings of the Otago Regional Council’s annual survey to monitor the level of understanding and uptake among farmers about meeting their responsibilities under the Water Plan. . . 

Ravensdown Joins Agrigate Online Platform:

The Agrigate team has added another heavyweight data partner to the online tool, signing an agreement with agri-nutrient provider Ravensdown.

The agreement, signed last week, will see Ravensdown’s pasture and nutrient data added to the array of information that farmers can access using Agrigate.

Ravensdown captures and presents data on soil tests, nutrient status, pasture performance and proof of placement to drive better decisions.  . .

Live calf probiotic a world-first at Fieldays:

In a first for Fieldays, New Zealand company BioBrew is preparing to showcase CalfBrew, a live animal probiotic.

BioBrew will present its innovative product at the Callaghan Innovation Centre at this week’s Fieldays. CalfBrew is the first fresh probiotic containing live, active microbes to treat scouring and support optimal gut health in calves more effectively than current freeze-dried probiotics. As a world-first live probiotic supplement, CalfBrew has also demonstrated increased growth rate in calves. . . 

Wallace Corporation and Farm Brands Announce Merger:

Wallace Corporation Limited and Farm Brands Limited today announced the completion of the merger of their respective coproducts businesses and operations, to create Wallace Group Limited Partnership. The new multi-million dollar entity will also acquire the assets and business of Dunedin rendering business, Keep It Clean Ltd.

The merger of the two multigenerational coproducts businesses aims to optimise its processing capability, including developing higher value finished products, and establish an expanded casualty cow collection service in the South Island. . .  

Dairy sector well placed to take advantage of technology revolution:

Higher dairy payouts have put dairy farmers in a good position to take advantage of new technologies that will redefine farm efficiency in the years ahead, according to ANZ’s Managing Director Commercial & Agri, Mark Hiddleston.

“While diary and other commodity markets remain changeable, a higher payout provides an opportunity for our dairy farming customers to pay down some of the debt they’ve built up, and to reinvest in their businesses,” Mr Hiddleston said. . . 


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