Rural round-up

July 4, 2016

Drought conditions in South Island continue:

The impact of ongoing dry conditions on the eastern South Island means the medium-scale drought classification will be extended until the end of the year, Primary Industries Minister Nathan Guy has announced today.

“Extra funding of up to $88,000 will go to drought recovery coordination and the five Rural Support Trusts in the area, with $30,000 of this going to the North Canterbury Rural Support Trust,” says Mr Guy.

The announcement was made by Mr Guy at a meeting with local farmers in North Canterbury today, his fifth visit to the region since April last year.

“This will mean the area has been in drought for nearly two years, since its initial classification on 12 February last year. This will be the longest period of time a classification of this type has lasted for.” . . 

Jobs and land galore in Kaitangata:

Kaitangata has a jobs problem perhaps unique among small New Zealand towns – there are too many.

There are only two people without jobs in the entire town of 800, but at least 100 vacancies waiting to be filled.

Three-bedroom standalone houses are now being offered for only $230,000. There are currently 30 sections available, with the houses being built to order.

Clutha District Mayor Bryan Cadogan says they come with “stunning views out over the delta”. . . 

Past, present and future of the meat industry (part 3) – Allan Barber:

The future

There are two diametrically opposing views on the meat industry’s future outlook: either the world is short of protein and has an insatiable appetite for what we produce or meat will be replaced by artificial or synthetic proteins, much cheaper and easier to produce.I can’t predict just where on the continuum between these two extremes actual reality will settle or which direction the trend will move. But it’s probably worth hazarding a guess that the top end of the market will continue to prefer the real thing, produced and presented to a high quality, while the poor who are unable to afford much if anything will be happy to accept the cheaper, artificial version. It is also quite possible the increasingly global craze for fast food, especially hamburgers, could be met by synthetic beef, but here again there would be a premium end of the market demanding the real thing. . . 

MPs urged to back no-tillage farming – Alexa Cook:

An international soil scientist is urging the government to reduce carbon by promoting “no-tillage” farming to the primary sector.

The method is a way of growing crops or pasture from year to year without disturbing the soil through tillage, which results in carbon being captured in the soil instead of released through ploughing.

Scientist John Baker met with Labour MPs this morning as part of his crusade to get the message across that New Zealand has the machinery and technology to transfer carbon into the soil and keep it there. . . 

Silver Fern Farms announces contract extension and new special meeting date – Allan Barber:

Silver Fern Farms have issued two new media releases announcing a revised completion date for the contract with Shanghai Maling and a new date for the shareholder requisitioned meeting.

The revised date of 30th September for meeting the one remaining condition of the contract has been agreed in principle by both parties and is subject to agreement of both boards. SFF’s CEO Dean Hamilton said “We needed to allow more time to answer the further information requests from the OIO and to then provide sufficient time for the OIO and then Ministers to consider the application. We continue to believe that the investment will be approved given its substantial merits.”

“The agreement to the new date reflects positively on the ongoing commitment of both parties to the transaction.” . . 

  – Allan Barber:

ANZCO Foods has just released its annual result for the 15 month period ended 31 December which shows a reduced profit compared with its 12 month 2014 performance. Pre-tax net profit was $5.702 million ($7.128 million in 2014) while NPAT was $4.49 million, down more than 50% on the equivalent 2014 result which included part of the tax benefit from the 2012 loss.

Notable features of the result were a large increase in inventory and in current bank debt which can be partly explained by the purchase of the remaining 50% of Five Star Beef and the effect of the December quarter. However these factors do not seem to explain fully the extent of the increase. . . 

Super Fund swoops on Southland dairy farms – Mel Logan:

The New Zealand Superannuation Fund (NZSF) is actively buying up dairy farms in Southland, clinching deals on seven properties with more to follow.

The new acquisitions come under a dark industry debt cloud and take the NZ Super Fund’s farm portfolio to 21, following two recent dairy purchases in Canterbury. 

NZSF says while the dairy sector faces some difficult short term challenges, it continues to have strong long-term potential. . . 

Fonterra Enhances Pre-Season Preparation:

A single-minded focus on effectiveness, efficiency and innovation across all aspects of Fonterra’s winter maintenance programme is delivering savings for the Co-operative as it gets match-fit for spring.

Director of NZ Manufacturing Mark Leslie said this “winter shut” period is an important time of year for manufacturing teams as all assets across Fonterra’s network of sites are fine-tuned to ensure they are ready for the season ahead.

“Each year we process around 18 billion litres of milk, with the bulk of this carried out in the spring months. The work we’re doing now will help us get match-fit for that peak period.” . . 

Fonterra Launches The Switch To Z Biodiesel:

Fonterra has taken another step forward in its commitment to environmental sustainability, today launching its switch to new Z biodiesel – as a foundation customer for the ZBioD fuel.

Fonterra and Z were joined by Minister of Energy and Resources Hon. Simon Bridges, Whakatane Mayor Tony Bonne and other dignitaries today in celebrating the partnership at the Co-operative’s Edgecumbe site.

Fonterra Chief Operating Officer Global Operations, Robert Spurway said the shift to biodiesel is part of a move towards greater efficiency and sustainability across all operations, and helping Z make cleaner burning biofuel available in New Zealand. . . 

New Zealand Pork, Bacon and Ham Lovers Pay Attention!:

New Zealand pork, bacon and ham lovers pay attention – the ninth annual judging of the 100% New Zealand Pork, Bacon & Ham Competitions kicks of this Friday (1 July) in Wellington.

The Competitions celebrate New Zealand’s finest home-grown pork products and assist customers to identify and appreciate sustainable pork, bacon and ham which is PigCare™ Accredited*. The competitions support our pig farmers, who raise pork solely for New Zealanders.

This year an impressive 210 entries from butcheries nationwide will be scrutinized by an expert and independent panel of 34 judges comprising leading chefs, food connoisseurs and master butchers. The judges will blind-taste each entry to select New Zealand’s best pork, bacon and ham. . .  . . 


Rural round-up

November 16, 2015

Fonterra increases forecast earnings per share range:

Fonterra Co-operative Group Limited is increasing its forecast earnings per share range for the current financial year to 45-55 cents. With a forecast Farmgate Milk Price of $4.60 this lifts the total available for payout to $5.05-5.15 per kgMS and would currently equate to a total forecast cash payout of $4.95-5.00 per kgMS after retentions.

Fonterra is also increasing the rate at which farmers are paid the Co-operative Support of 50 cents per kgMS, with the total amount paid up to December going from 18 cents to 25 cents.

Chairman John Wilson said performance in the period 1 August – 31 October 2015 built on the strong second half of the 2015 financial year. . . 

95pct of rats killed by 1080 drops – Dave Williams:

New Zealand’s biggest pest poisoning programme killed 95 percent of the rats it went after and more evidence shows forests are better off after 1080 drops, scientists say.

The New Zealand Ecological Society 2015 Conference is being held at the University of Canterbury this week and one focus is on the use and effects of 1080, or sodium fluoroacetate.

The toxin has been widely used for pest control in New Zealand since the 1950s – possums are a target because they spread tuberculosis – but critics say it kills more than just pests. . . 

Kiwi inventions set to revolutionise horticulture industry 5:

Two giant hot-air blowers are being trialled in South Island vineyards and cherry orchards to fight off severe spring frosts. 

The Kiwi invention could protect crops and transform the horticulture industry.

The blowers stand five metres tall and blows out warm air like a giant blow drier.

Known as the Heat Ranger, it’s one of two machines being put to the test in Otago and North Canterbury. . . 

Speech to DRC Food Security and Food Safety Strategy Summit – Nathan Guy:

Distinguished guests,

It is my pleasure to speak here today. I want to thank the Development Research Centre (DRC) for inviting me here to participate at this Summit.

Today I will discuss the role that New Zealand, as a regional partner in the Asia Pacific, can play with China in meeting the challenges of food security and food safety.

As China liberalises its economy and raises living standards, its demand for raw materials and food for its 1.3 billion population will have a significant impact on global agricultural markets.

All agricultural producing nations have an interest in a strong China. As China looks to move away from a solely manufacturing-driven economy to one propelled jointly by agriculture, manufacturing and services, New Zealand can be a practical partner to support this change.

Background on NZ

We have a lot to offer because we are an agricultural and food producing nation.

The wider primary sector – including agriculture, horticulture, forestry and fisheries make up around three quarters of our merchandise exports. . .

AsureQuality first in World to Issue an Accredited FSSC22000-Q Certificate:

Food safety assurance provider AsureQuality is the first Conformity Assessment Body (CAB) in the world to be both accredited to the new FSSC22000-Q scheme, and to issue accredited FSSC22000-Q certification to a customer.

First published in February this year by the Foundation for Food Safety Certification, FSSC22000-Q gives organisations the option to have their Food Safety and Quality Management Systems certified under one certification, by way of one integrated audit rather than individual FSSC22000 and ISO9001 audits.

The first dairy site in the world to gain FSSC22000-Q certification is Fonterra’s Te Awamutu site, with other Fonterra sites awaiting certification. . . 

World first for Fonterra:

Fonterra Te Awamutu has become the first site in the world to be awarded the newly created Food Safety System Certification 22000 – Quality, an internationally recognised food safety accreditation.

Where previously food safety and food quality have been audited and assessed separately, the new certification gives companies the option of combining their food safety and quality management systems into one certification. This provides customers with the assurances of international best-practice in both food safety and quality.

Fonterra Director New Zealand Manufacturing Mark Leslie said this highlights the Co-operative’s commitment to producing the highest quality dairy nutrition and world-leading service. . . 


Rural round-up

June 17, 2013

40% productivity rise realistic – Sally Rae:

On-farm productivity gains in the New Zealand sheep industry over the past 25 years have been an ”extraordinary story”, AbacusBio consultant Dr Peter Fennessy says.

Productivity, which drove profitability, had been increasing at about 2.5% a year, which he attributed to a combination of genetics and management.

There had been genetic improvement through consolidation of the ram-breeding sector and larger ram-breeding flocks, and uptake of new technology (rams and pasture) and better pasture management. . .

Working within cap on nitrogen – Sally Rae:

“As a nation, we cannot continue to have conversations about protecting water quality without having a parallel set of conversations that redefine the New Zealand farming business model.”

So says Taupo farmer and entrepreneur Mike Barton, who, when faced with what was effectively a cap on stock numbers, sought to increase the value of the product he produced.

A nitrogen cap was imposed on farmers around Lake Taupo to protect its water quality, with 35,000ha of land now covenanted for 999 years to remove 20% of manageable nitrogen. . .

Fonterra invests further $30m into Whareroa:

Fonterra has announced a further $30 million investment to expand its Dry Distribution Centre at its Whareroa site in Taranaki.

This follows a $23 million upgrade of the Whareroa coolstores last year, bringing the total capital investment in the logistics infrastructure on site to more than $50 million since 2011.

Fonterra Director of Logistics, Mark Leslie, says the project is part of Fonterra’s overall drive to simplify their supply chain and reduce the associated costs.

“These investments are part of a strategy to deliver more products, more directly to ports for export. . . “

Fieldays; washer cleans up– Jackie Harrigan:

Taranaki dairy farmer Simon Washer made a clean sweep of the Fieldays Rural Bachelor of the Year Competition for 2013.

After a busy week of an Amazing Race through the North Island followed by a series of eight challenges at Mystery Creek, 25-year-old Simon won the People’s Choice Award – having built his Facebook following to more than 700 likes – before being presented with the Golden Gumboot Award for overall Rural Bachelor of the Year.

Simon is sharemilking in coastal Taranaki and a motor-cross and trail riding fan who is also involved in Young Farmers and chairman of his local club. . .

Green’s Taranaki claims poppycock – Harvey Leach:

What we saw on TV3’s Campbell Live about landfarming in Taranaki and then got from a Green Party media release was straight out of the conspiracy theorists’ playbook.

The Green Party called on Fonterra to stop taking milk from land in Taranaki that it said had been spread with oil and fracking waste, which included toxic chemicals.

This divides things into “everyone even remotely involved-qualified versus me”. In our case, those remotely involved-qualified were landowners, Fonterra, Taranaki Regional Council, petroleum companies and the Petroleum Exploration and Production Association. The “me” in this story was the Green Party of Dr Russel Norman. . .

 


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