Rural round-up

October 15, 2018

Big changes coming – Neal Wallace:

Farming will change fundamentally if new freshwater quality management rules restricting intensive winter grazing and fertiliser use are introduced.

The Government last week released Essential Freshwater: Healthy water, fairly allocated, a report on how to improve freshwater quality within five years.

While it lacked detail the Government singled out winter grazing, hill country cropping, feedlots and nutrient use as causes of degraded water quality that will be a focus. . .

No rural-urban divide found here – Neal Wallace:

Anna Jones never forgot her rural roots when a career in journalism took her to live in some of England’s largest cities. Having experienced life on both sides of the fence she realised she had to do something about the role of the media in the urban-rural disconnect. She told Neal Wallace there are faults on both sides.

ANNA Jones concedes alcohol was involved in a game she created called Farmer Jargon Bingo, played with friends one evening in the English city of Bristol.

A simple concept, it required her urban friends to provide their definition of commonly used farming terms which the farmer’s daughter, journalist and Nuffield scholar duly recorded. . .

 

Move around world never regretted – Sally Rae:

Harry might have met Sally but when Rory met Frank, it was to lead to a move to the other side of the world.

Irish-born Dr Rory O’Brien is research manager at DRL Ltd, based at Invermay’s Agricultural Research Centre. Originally known as Deer Research Laboratory, it was established by Prof Frank Griffin in 1985 within the Department of Microbiology and Immunology at the University of Otago.

It has worked closely with veterinarians and farmers for more than 30 years to develop and make available custom-diagnostic services. . . 

Moo beat music for process manager – Sally Rae:

Working in a shiny new $240 million nutritional formula plant is a far cry from a dream of being a musician.

But Nathan McRae, process manager at Mataura Valley Milk on the outskirts of Gore, has no regrets about eventually choosing a career in the dairy industry.

His interest was sparked in Europe during a year-long OE with his wife. He decided he wanted to take the opportunity the industry offered and pursued that interest when he returned to the South.

Gore-born-and-bred, Mr McRae has lived in the Eastern Southland town all his life, with the exception of his OE. . .

Commission releases draft report on Fonterra’s 2018/19 Milk Price Manual:

The Commerce Commission today released its draft report on its annual review of Fonterra’s Milk Price Manual for the 2018/19 dairy season.

Commission Deputy Chair Sue Begg said Fonterra’s 2018/19 Manual remains largely consistent with the purpose of the milk price monitoring regime under the Dairy Industry Restructuring Act.

The Commission has no concerns with Fonterra’s amendments to the Manual this year. However, the treatment of farmer support and the capacity of standard plants remain aspects of the manual that would benefit from revisions to improve consistency with the purpose of the regime and clarity, respectively. . . 

Hill country landscapes focus of five-year project:

Hill country landscapes are the subject of a comprehensive research project which focuses on growing diverse pastures to sustainably lift productivity and profitability, and benefit rural communities.

The five-year project, which is a collaboration between Beef + Lamb New Zealand (B+LNZ), the Ministry for Business Innovation and Employment, PGG Wrightson, Seed Force and the Federation for Maori Authorities, will be looking at legumes and forage options for hill country, matching land use with land use capability, developing pasture management guidelines and building strong rural communities.

B+LNZ ‘s Research Manager Tanya Robinson says field work, led by Professor Derrick Moot from Lincoln University, has already started with plot trials evaluating a number of legumes and forages. . .

A sheep that stole the A and P show:

An enterprising sheep stole some of the limelight at the Ellesmere A and P Show on Saturday, gatecrashing a ribbon ceremony and masquerading as an alpaca after escaping from a pen at the shearing shed.

The cunning plan came unstuck when there weren’t enough ribbons to go around, leaving the opportunist ovine without so much as a stitch of silk to wear, with barely anywhere to hide and looking decidedly sheepish as it stood beside the beribboned alpaca section winners with their owners in the main oval. . . 

Low emission cows: farming responds to climate warning – Jonathan Watts:

From low-emission cows to robotic soil management, the farming industry will have to explore new approaches in the wake of a UN warning that the world needs to cut meat consumption or face worsening climate chaos.

That was the message from Guy Smith, vice-president of the National Farmers’ Union (NFU), this week as policymakers began to discuss how Britain can address the challenges posed by the recent global warming report by the UN’s Intergovernmental Panel on Climate Change (IPCC).

Farming and land use are set to move to a more central position in the climate debate in the wake of that report, which urged countries to widen their emissions-cutting efforts beyond the energy industry to agriculture and transport. . .

 


Rural round-up

February 20, 2018

Niche markets open up for farmers with good animal welfare and environmental records – Pat Deavoll:

Merino farmers front-footing environmental and animal welfare standards are finding better paying niche markets opening up for them.

A property in the Ashburton Lakes area has secured a contract to sell wool direct to a major American retailer, said Rakaia Gorge runholder Willy Ensor.

“I can’t name the property yet, but one of the reasons they pulled it all together was because they had a very traceable animal welfare system and an audited farm environment plan. . .

Milton woolhandler claims Southern Shears title :

Milton woolhandler Cheri Peterson has become the latest addition to the ranks of Open-class winners by claiming the Southern Shears title in Gore.

Uniquely, all three in Friday’s final were gunning for their first Open win in New Zealand, with the South Otago rookie winning by just over 15pts from runner-up South Island-based Foonie Waihape, from Gisborne, and third placegetter Candy Hiri, of Gore, who were separated by just 0.53pts.

While Waihape had the quicker time and both Waihape and Hiri had better board points, Peterson had the better fleece and oddments points, to make extended a unique record at Gore.. . 

Nutritional formula plant will put Gore on the map – Sally Rae:

From bare farmland to a bustling construction site, the rural landscape of McNab, near Gore, has transformed remarkably over the past 18 months.

The population has been temporarily boosted through the day by about 350 people on-site during the construction phase of Mataura Valley Milk’s new nutritional formula plant.

Work began on the site in August 2016, and the $240 million project is on track for commissioning in May.

Once operational, it will be staffed by 65 full-time employees and process about 500,000 litres of whole milk a day to produce 30,000 tonnes of infant formula a year at full capacity. . .

State-of-the-art $30m fertiliser plant unveiled :

The Ravensdown co-operative has unveiled its new $30 million state-of-the-art fertiliser blending plant and distribution centre in New Plymouth today.

The company’s regional manager, Mike Davey, said a feature of the facility is a $5 million precision blending plant imported from the United States.

“So you’re blending the right amount of product, the right amount of nutrients, the fertilizer’s then spread accurately in the exact amount that’s required for that particular job.” . .

Second sweep of the Great DDT Muster gathers pace:

A nationwide initiative to rid New Zealand of banned pesticides like DDT is gaining momentum as farmers turn over tonnes of the dangerous chemicals for safe disposal.

The programme, called The Great DDT Muster, has so far collected some 17 tonnes of banned persistent organic pollutants (POPs) and other chemicals from properties in Northland to Invercargill. . .

Defiant cow flattens farmer and swims to remote island to escape abbatoir :

A resilient cow destined for a trip to a slaughterhouse has taken control of her own fate, smashing through a metal fence, flattening a farmer and swimming to a nearby island.

Workers attempted to load the stubborn bovine onto a truck bound for an abattoir in Poland last month but it quickly became pretty clear she wasn’t having a bar of it.

The beast instead rammed the fence in the escape, breaking one of the farmworker’s arms in the process. . .


Rural round-up

October 10, 2017

Dairy company Synlait to spend on research at Massey University – Jill Galloway:

A rival to dairy giant Fonterra could spend millions of dollars on research in Manawatū.

Canterbury-based dairy company Synlait will use some of its $7 million annual research and development budget at Massey University and its FoodPILOT​ unit.

It wants to spend the money on innovation, specifically on processing and packaging, as well as new products, and plans to develop a new centre for its operations. . . 

Mataura Valley Milk something special – Bernard May:

Mataura Valley Milk is creating something special just north of Gore.

We’re building a highly specialised nutrition plant unlike any other in Australasia to manufacture premium nutritional formulas.

It’s a completely different business from a dairy company, as we will be making highly functional and high-value products to order.

Mataura Valley Milk is a positive, and many would argue necessary, addition to the dairy industry in Southland. . . 

Tihoi Farm finds right balance:

Taking part in DairyNZ’s P21 research programme has helped Parkhill Farms to not only reduce its environmental impact, but also maintain profitability.

Chris Robinson of Parkhill Farms values having a choice about which farming system he wants to run. However, he also values water quality and understands that regional regulations limiting nutrient loss from his operation will affect his farming practice.

In 2015, DairyNZ was searching for a commercial farm on which to apply research proven at a farmlet scale. For Chris and brother-in-law Richard Webber, it was a great opportunity to investigate changes to their farming system to meet potentially conflicting goals. And so the P21 Focus Farm was created. . . 

Feds calls for stable and responsible government negotiations:

 

Next week promises to be a defining period for negotiations to form a new government and Federated Farmers is asking that whoever governs is pragmatic about future actions.

“Federated Farmers is ready to work with any government. We are an advocacy organisation for farmers, it is our job to work with all government, and opposition, representatives,” Federated Farmers president Katie Milne says. . . 

Rural video blogger shares positive farming stories – Brad Markham:

Staring down the barrel of a camera, Sophie Brown is momentarily distracted by a noisy, low-flying plane overhead.

The usually unflappable Taranaki farmer quickly tilts her camera skyward, attempting to catch a glimpse of the winged intruder.

The chatty blonde’s out in an old barn introducing viewers of her video blog to the 80 bull calves she’s rearing this spring. . .

Farmers Fast Five: Sophie Brown – Claire Inkson:

Proud to be a Farmer Farmers Fast Five: Where we ask a farmer five quick questions about farming, and what agriculture means to them. Today we talk to Heels 2 Boots Video Blogger and Proud Farmer Sophie Brown

How long have you been farming?

I honestly don’t know when I became a farmer. Coming from the city, farming wasn’t natural to me, so when I started dating my husband eight years ago, everything farm related was new! Three years ago when we moved to the new family farm, I gave up my day job, so I guess I became a ‘farmer in training’ then! I only recently, on a departure card at the airport, described myself as a farmer, that was a big step for me! . . 


Rural round-up

August 4, 2017

Tool built to stop rogue spray incidents – Adriana Weber:

Winegrowers in Central Otago have developed a new tool to prevent agri-chemicals drifting and damaging their crops.

The Central Otago Winegrowers Association has created a map designed to stop rogue spray incidents.

Its past president, James Dicey, said spray drifting cost winegrowers millions of dollars every year in lost production.

“Grape vines are remarkably difficult to kill but they are ridiculously sensitive to some of these chemicals, so they can take a bit of a hit for a couple of years and that can have a downstream effect on the volume of grapes and the volume of wines that’s produced off those grapes,” he said. . . 

Westland Payout on the Way Up:

Westland Milk Products has reached a milestone in its efforts to offer shareholders a sustainable and industry competitive payout with confirmation of next season’s forecast payout.

Westland is forecasting a net payout range (after retentions) of $6.40 to $6.80 for 2017-18 season – a substantial improvement on the two previous seasons. The industry-competitive forecast comes after ten months of analysis and systems change under its new Chief Executive Toni Brendish and new Chair Pete Morrison, resulting in changes at both managerial and board level to better position the company for success in a changing and challenging global dairy market. . . 

Funding a boost for quake affected farmers says Feds:

Federated Farmers is delighted that a joint application made to the Ministry for Primary Industries’ Earthquake Recovery Fund has been successful.

The Federation led the application towards a Farm Business and Land Recovery Programme, which will give direction to recovery research following the Hurunui-Kaikōura earthquake. . . 

Mid-range option considered for Manuherikia water – Alexa Cook:

A new option is on the table for a water scheme in central Otago.

Crown Irrigation Investments is putting $815,000 funding into the Manuherikia Water Project, which will allow a Falls Dam proposal to move forward.

The dam is about an hour north of Alexandra and, with water permits expiring in the next five years, farmers want reliable irrigation for the future. . . 

Crown Irrigation provides funding for Orari-Temuka-Opihi-Pareora Irrigation Scheme:

Crown Irrigation Investments Ltd (Crown Irrigation) has agreed development grant funding of $339,875 for the Orari-Temuka-Opihi-Pareora (OTOP) irrigation conceptual design and costing project, which Environment Canterbury (ECAN) is managing. The South Canterbury area and particularly the greater Opihi catchment has long suffered from water shortages and drought, and numerous water reticulation and supply options have been considered over the years. . . 

New irrigation funding welcomed:

Primary Industries Minister Nathan Guy has welcomed new grant funding of over $1.1 million for two irrigation projects in South Canterbury and Central Otago.

Crown Irrigation Investments Ltd has agreed development grant funding of $339,875 for the Orari-Temuka-Opihi-Pareora (OTOP) irrigation conceptual design and costing project, which Environment Canterbury (ECAN) is managing. . . 

Agricultural Aviation Recognises Outstanding Performance:

The New Zealand Agricultural Aviation Association is pleased to confirm the winners of two awards presented at the Aviation Leadership Gala Awards Dinner in Hamilton on Tuesday 25 July.

‘These awards recognise operational excellence and outstanding industry leadership in agricultural aviation,’ said Alan Beck, Chairman of the NZ Agricultural Aviation Association (NZAAA). . . 

Biosecurity heroes recognised at Parliament:

Biosecurity heroes from across the country were recognised in Wellington tonight with the announcement of the 2017 New Zealand Biosecurity Award recipients.

Minister for Primary Industries Nathan Guy says the winners of these inaugural awards have shown a real commitment to protecting New Zealand.

“Biosecurity is my number one priority as Minister and crucial in protecting our economy and way of life. These awards recognise that it is a shared responsibility for all New Zealanders, and celebrate the efforts of people who are doing their bit for biosecurity every day. . . 

Extra boost for Bay of Plenty farmers:

Flood-hit farmers in the Bay of Plenty region will have a further opportunity to apply for a grant to help with clean up and recovery, say Social Development Minister Anne Tolley and Minister for Primary Industries Nathan Guy.

The $100,000 Primary Industries Flood Recovery Fund is part of a package of additional support totalling $295,000 for farms and orchards who suffered damage following the floods. 

“The Government is committed to ensuring communities in the Bay of Plenty have the support they need to recover from the April floods,” says Mrs Tolley. .  .

Zespri wins top award for US trade:

Zespri won the Supreme Award as well as Exporter of the Year at the AmCham-DHL Awards in Auckland last night, recognising the investment made to grow kiwifruit sales across the United States.

Zespri Chief Operating Officer Simon Limmer says the company is growing strongly across North America, with most of this growth coming from the new gold variety Zespri SunGold. . . 

Ngāi Tahu Seafood appoints new directors:

Ngāi Tahu Seafood Limited is pleased to announce the appointment of two new directors, Jen Crawford and Ben Bateman, bringing the total of Ngāi Tahu directors on the board to four out of six.

Ms Crawford has 20 years’ national and international legal experience in project consenting and planning, along with governance experience in the Canterbury region. She has previously worked in leading law firms in New Zealand and the UK, including a partnership at Anderson Lloyd. . . 

Seafood industry congratulates its stars:

New Zealand’s seafood stars have been recognised at the industry’s annual conference in Wellington today.

Chief Executive of Seafood New Zealand Tim Pankhurst said the conference, titled Oceans of Innovation, was a celebration of the exciting developments in the industry over the past few years, most of which were not well known.

“Some of the recipients of the Seafood Stars Awards played a significant part in the world-leading, cutting edge technology that is making a real difference to the way commercial fishing targets what it needs and is lessening its environmental footprint,” said Pankhurst. . . 

One stop source for New Zealand seafood information launched:

A one-stop source for information on New Zealand seafood was launched at the New Zealand Seafood Industry conference in Wellington today.

OpenSeas is a third-party verified, broad-based transparency initiative designed to enable customers of New Zealand seafood, primarily international customers, a single, comprehensive source of information about the environmental, social and production credentials of the New Zealand seafood industry. . . 

Commercial fishing industry worth more than $4 billion to NZ economy – BERL:

A report from economic researchers, BERL shows New Zealand’s commercial fishing industry is worth $4.18 billion.

Chief Executive of Fisheries Inshore New Zealand, Dr Jeremy Helson, says the report confirms the importance of commercial fishing to New Zealand.

“The Ministry for Primary Industries says exports alone are expected to reach $2.3 billion by 2025. Add the contribution to the domestic market through jobs, investment in infrastructure and the sectors supporting the industry and you have a significant contributor to the New Zealand economy,” said Helson. . . 

Name Change for New Zealand’s Top Performing Sector:

The apple and pear industry has a new name, New Zealand Apples and Pears Incorporated, a change from Pipfruit New Zealand.

The unanimous decision was made at the industry’s annual general meeting held in Napier today.

New Zealand Apples and Pears chief executive, Alan Pollard, said the new name tells exactly what the industry is “apples and pears” and takes advantage of the strong global reputation of “brand New Zealand”. . . 

Mataura Valley Milk on track for August 2018 production start:

Southland farmers are expressing significant interest in becoming Mataura Valley Milk shareholders and the company expects to fill its supplier requirements, general manager Bernard May says.

The company is striving to be the ‘World’s Best Nutritional Business’ manufacturing and producing premium infant milk formula mainly for export from its purpose-built nutrition plant at McNab, near Gore, Southland. . . 

Update on China Infant Formula Registration Process:

Synlait Milk Limited  and The a2 Milk Company Limited  are confident with the progress of their application to export a2 Platinum® infant formula to China from 1 January 2018.

The CFDA requires manufacturers of infant formula to register brands and recipes with them in order to import products from 1 January 2018. . . 

 


Rural round-up

July 30, 2016

‘Massive’ Chinese stake in the south – Dene Mackenzie:

News of a $200 million milk plant to be built 5km north of Gore has been enthusiastically welcomed by Gore Mayor Tracy Hicks, who yesterday described the announcement as “massive”.

Mataura Valley Milk will have nearly 72% Chinese ownership. Construction of the new plant is planned to start on the site of the former McNab auction yards in October, with a planned commissioning date of August 2018.

Southland dairy farmers will hold 20% of the shares and be the suppliers to the new factory.

Much of the production will be infant milk powder bound for the Chinese market, although other markets will be developed. . . 

Westland Milk Products appoints new Chief Executive:

Westland Milk Products, New Zealand’s second biggest dairy co-operative, has announced the appointment of Toni Brendish as its new Chief Executive Officer.

Westland Chairman Matt O’Regan said today (28 July 2016) that Brendish has extensive leadership experience in the international food and dairy industries, most recently as Vice President of DKSH (Thailand), a large consumer goods distribution business based in Bangkok, where she currently resides.

“Toni’s familiarity with the manufacture, supply chain and sales and marketing of value-added dairy products, including paediatric and nutritional powders and UHT dairy products, will be of immense value to the company as we progress the development and execution of our growth strategy for these businesses,” O’Regan said. . . 

Processing on the horizon – Shannon Gillies:

Waitaki Orchards in Kurow is building a fruit processing plant to avoid a repeat of the loss of up to 50 tonnes of its apricot crop earlier this year because of rain.

The orchard lost most of the crop on nearly half of its 35,000 trees in January after two weeks of near-continuous rain.

The orchard’s smaller crop of nectarines was also badly hit, but other stone fruit, cherries and plums survived the rain. . . 

Upbeat conference attracts 200+ delegates – Allan Barber:

The delegates at the 2016 Red Meat Sector Conference were challenged and entertained by a stimulating range of guest speakers and New Zealand icons the Topp Twins.

Minister for Everything Stephen Joyce gave the welcome speech at the Sunday evening cocktail function and took the opportunity to compliment the industry on its great performance in offsetting the dairy downturn, while encouraging it to work hard on progressing PGP funded projects with 40% of the total already allocated to the red meat sector.

At the formal conference opening the next morning Minister for Food Safety Jo Goodhew made a strong plea for industry government collaboration to protect New Zealand’s food safety and biosecurity reputation. She reinforced her message with the reminder that the consumer is not just interested in product quality and food safety, but also in its provenance, sustainability and the animal welfare standards applied to its production. . . 

Sheep, beef farms must focus on costs – Hugh Stringleman:

Sheep and beef farmers need to focus on onfarm costs in the same way as dairy farmers, Beef + Lamb New Zealand chairman James Parsons says.

The key focus for his organisation was to help farmers get the average onfarm cost structure down below $3 a kilogram of product, both meat and wool.

When opening the Red Meat Sector conference in Auckland, Parsons said everyone in the sector needed to tell their story better to get product value growth from export markets.

The Red Meat Sector Strategy aimed to increase export earnings from all products – meat, wool and co-products – from $8 billion to $12b. . .

Risk, reward in produce sector – Stepehn Bell:

Huge changes in the booming horticulture sector present export opportunities but also mean considerable risk is developing, Westpac industry economist David Norman says.

Risks included consolidating in fewer markets, growing debt, the potential for more non-tariff barriers and the risk of labour shortages, Norman said in Westpac’s Industry Insights into Horticulture.

The sector was small in terms of jobs with about 39,000 full-time equivalents but accounted for more than 7% of merchandise exports with earnings of $3.4 billion in the year to May. Its exports, accounting for 60% of production, had grown 140% this century compared to 94% for all exports. . .

When a farm kid goes to an animal rights conference… – Laura Bardot:

I grew up on a cattle farm in rural Missouri. I am a classic, stereotypical farm kid that was involved in the local 4-H and FFA. I raised cows, pigs, chickens, rabbits and ducks. I know how to drive a tractor and drove a truck in a field before I drove a car on the highway.

Bullying farmers and ranchers 

I became aware of the Humane Society of the United States (HSUS) and People for the Ethical Treatment of Animals (PETA) from their pessimistic TV commercials trying to gain more donations by appealing to viewers’ emotions. I knew these animal rights organizations always said they were trying to help dogs and cats, but when they said they needed to “rescue” farm animals, that’s when I started to do research.

In August of 2014, Missouri residents voted on a “Right to Farm Bill”- ensuring Missouri farmers and ranchers are guaranteed the right to farm for forever in the state. I advocated heavily in favor of this bill, yet I met several people who were skeptical, and the majority of those people were misinformed on the bill by anti-agriculture groups. Therefore, I attained a dislike for these groups that felt the need to bully and pressure their way into getting what they think is best for animals – which often does not align with science. . . 

FMG's photo.


How bad will it get?

October 7, 2008

Adolf Fiinkensein over at No Minister  thinks the dairy industry’s a bit off colour and it’s going to infect the rest of the country.

He bases his diagnosis on five symptoms:

1 Sliding world commodity prices for dairy products

2 The melamine scare in China and other Asian countries.

3 The world wide credit crunch caused in the first instance by the Democratic Party’s drive for ‘affordable housing’ for indigent blacks and the subsequent sub-prime fiasco.

4 Most of our major farm banks are Australian owned. (Australians don’t understand NZ agriculture)

5 Our trading banks’ attitude to risk and their habit of re-rating individual client risk from time to time.

I agree dairying is not at the peak of health it was a few months ago, but my prognosis is more positive than Adolf’s.

To address his points:

1. World prices for dairy products are going down but this is a correction after hitting a record high. They’re still well above the historical average and while they’re likely to be volatile in the short term they’re unlikely to go right back to where they were before the boom and the medium to long term outlook is positive. As Adolf notes the dollar is going down and that will help off-set any decline in commodity prices.

2. The melamine scare may actually help us because although Fonterra is a minority shareholder in San Lu, more than 30 companies were also victims of the poisoning. Because of that it’s regarded as a Chinese problem and companies which had used Chinese milk, in China and other countries, will be looking for suppliers whose milk they can trust – and one of the first they’ll come to is Fonterra.

3. The credit crunch is already having an impact. Mataura Valley Milk has put construction of its new plant near Gore on hold; planned dairy conversions are on hold and farmers are closing their cheque books. That will have a negative impact on the people who supply and service them but as long as the farmers have reasonable equity they’ll weather the storm.

4. Regardless of who owns them, the banks employ people who understand agriculture here and they’re not going to want to threaten their equity by doing anything which will put a farming business at risk if they can avoid it.

5. If banks are worried about their debtors, and they have reason to be, I think those who’ve borrowed for houses will have more to worry about than dairy farmers.

People who converted for this season or are in the process of converting for next season, who budgeted on a higher payout than is now expected and have little equity will be overstretched. However, one good thing about dairy farming is the cash flow. Unlike sheep, beef and cropping where you get one or two large payments a year, dairy farmers get paid each month and as long as the banks get their share of that they will probably be prepared to watch and wait.

As well as that, interest rates are likely to come down and providing the banks are reasonably confident of farmers’ performance in the medium term they will probably give them a bit of leeway in the short term to allow them to farm their way out of trouble.

That doesn’t mean everything on the farm is rosy, but it’s nowhere near as bad as it was in the 1980s.

Then we’d been dependent on subsidies which were stripped away but the economy was still highly regulated; inflation was over 20% and interest rates were higher still.

We’ve adjusted to life without subsidies and are stronger because of it; and  in spite of Labour’s scorn for the “failed” polices of the 80s and 90s, they’ve left them more or less alone so the economy is freer and stronger. Interest rates are higher than desirable but they’re likely to come down and while inflation too is above the comfort level, it’s still well below the levels we faced in the 80s.

Dairying accounts for about 25% of our exports so Adolf is right that if its off colour the rest of the country will catch the bug. There’s no doubt the economy is sick,  and dairying will be affected, but because it was fitter to start with it’s better equipped to withstand the infection than most other sectors.


New milk plant on hold

October 2, 2008

Construction of the Mataura Valley Milk plant  near Gore has been postponed for 12 months because of funding difficulties.

The $90 million plant was due to open next August:

However, chief executive Chris Shelley said last night company directors thought it prudent to postpone construction by 12 months because delays in closing funding meant a risk of missing the start of the 2009 milking season.

Mr Shelley said commercial production would now begin in August 2010.

The global financial crisis was also a factor in the postponement, he said.

 This is only a posptonment but  there are pretty strong indications the dairy boom has peaked.

Milk companies forecasts for this season’s payout are good by historical standards, but down on last season’s.

Dairy returns are still better than those for beef and lamb, but rising prices for meat are closing the gap which make conversion to dairying less attractive than it was.


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