Dairy industry left with costs for 1080 blackmail threat

March 24, 2016

The man found guilty of threatening to add 1080 to infant milk formula has been jailed for eight and a half years.

. . .Jeremy Hamish Kerr (60) previously admitted two counts of blackmail and the High Court at Auckland this morning heard the cost of the crime to the country was more than $37 million. . . 

By March 2015, police had 36 full-time staff on the case, resulting in a $5 million bill for the taxpayer. . .

Fonterra managing director of people, culture and safety Maury Leyland said the company lost more than $20m because of the threats and subsequent response. . .

And the Ministry of Primary Industries’ deputy director-general regulation and assurance Scott Gallacher discussed the “significant impact” on the country’s entire economy.

The ministry’s bill came to $4.2m as a result of Kerr’s actions.

“It was one of the most challenging responses MPI . . . had ever staged,” Mr Gallacher said.  

“Complex interactions and negotiations were required on international and domestic fronts.”

Had those negotiations not been successful, it could have seen a $7.5 billion reduction in GDP in the 2015 calendar year, he said. . .

LOSS TO THE COUNTRY

Fonterra – $20m+
Other dairy companies – $47,000 – $1.9m
Federated Farmers – $100,000+
Foodstuffs and Progressive Enterprises – $1.7m
MPI – $4.2m
Police – $5m
TOTAL = $37m+

Most of those costs have been and gone.

The cost of added safety checks and on-going security at all milk processing plants is continuing.

The only good thing about this whole saga is that New Zealand’s reputation for producing safe food has been strengthened.

 

 


Rural round-up

September 10, 2013

Could have done better – Hugh Stringleman:

Fonterra’s operational review of the botulinum food-safety scare has identified opportunities when the mess might have been avoided.

Group director of strategy Maury Leyland and her in-house team have also come up with several ways of preventing something like this happening again.

Fonterra said its world-class manufacturing facilities, quality systems, and robust testing regimes were all stress-tested by the incident.

“Overall our systems worked well, while some aspects showed room for further improvement,” Leyland said.

Chief executive Theo Spierings said many innovative actions had resulted from the review and Fonterra remained well-placed as the world leader in dairy nutrition but with no room for arrogance. . .

Primary role push for deer markets :

Dan Coup’s heart lies in New Zealand’s primary sector.

Mr Coup in July took over as chief executive of Deer Industry New Zealand, replacing Mark O’Connor, who stood down after 13 years in the position to run his family-owned investment business.

Less than two months into the role and Mr Coup is excited about the opportunities for the industry, while being realistic about the challenges it faces. . .

Young farmers’ CEO experienced – Sally Rae:

Terry Copeland has been appointed chief executive of New Zealand Young Farmers.

Mr Copeland’s background includes management, sales and marketing, supply chain management, tertiary teaching, journalism and being a brand ambassador.

His latest post was with Treasury Wine Estates, the second largest wine company globally. He led the export strategy and the supply chain team for four years. . .

Satisfaction in seeing improvement :

Colinswood Bush is alive with birdsong and has the feel of forest, a tribute to Conservation Award finalist Nigel McPherson’s stewardship. Mr McPherson (84) talks about 20 years leading the volunteers responsible for the restoration of the biodiversity of the native forest remnant on Otago Peninsula.

What is it about the project that got you involved and kept you interested?
Colinswood Bush is on private land at Macandrew Bay and has been protected by a Department of Conservation covenant since 1993. Here was a native bush remnant in the early stages of recovery previously neglected, but still with damage from grazing animals, wind, muehlenbeckia and other weed vines smothering lower growing trees, weeds and weed trees in plenty; but also the results by others to restore the original forest and some remaining good specimen trees such as broadleaf, kowhai, lacebark, a matai and nearby two substantial totara pointing to the possibilities that restoration was a realistic goal. . .

Farmlands Acquires NRM:

Farmlands Co-operative Society Limited has announced they have acquired the brand and business of NRM, an iconic New Zealand agricultural brand in the animal nutrition business. Farmlands, in partnership with commercial pig and poultry feed producer Mainfeeds, bought the New Zealand feed milling assets of Viterra, which became available for sale following the global acquisition of Viterra by Glencore.

The purchase will be completed over the next two months.

Commenting on the acquisition, Farmlands Chairman Lachie Johnstone said, “The purchase of NRM will deliver significant benefits to shareholders as part of the co-operatives animal nutrition strategy. Nutrition and water are increasingly recognised as two of the keys in furthering the development of agricultural production. . .

10 Reasons to be at the NZB Ready to Run Sale:

With catalogue production in full swing for New Zealand Bloodstock’s 2013 Ready to Run Sale of 2YOs here are 10 great reasons to consider making a trip to Karaka in November for this flourishing Sale:
RTR Cat Cover

11 Individual Group 1 winners in the past 6 seasons

15 Group 1 victories in the past 6 seasons

6 Derby winners since 2010

7 Cups wins in NZ since 2009 . . .


Rural round-up

September 7, 2013

Fonterra crisis: could have done better – Hugh Stringleman:

Fonterra’s operational review of the botulinum food-safety scare has identified opportunities when the mess might have been avoided.

Group director of strategy Maury Leyland and her in-house team have also come up with several ways of preventing something like this happening again.

Fonterra said its world-class manufacturing facilities, quality systems, and robust testing regimes were all stress-tested by the incident.

“Overall our systems worked well, while some aspects showed room for further improvement,” Leyland said. . .

Government inquiry critical for New Zealand:

Federated Farmers welcomes the Government’s confirmation of an independent inquiry into the handling of Fonterra’s contamination incident.

“It is critical this inquiry is held to the highest standard and that it remains independent, robust and comes up with meaningful recommendations,” says Willy Leferink, Federated Farmers Dairy Chairperson.

“New Zealand’s reputation as a credible and trusted supplier of food both domestically and internationally, demands this if we are to move forward. It is crucial that we repair any damage to our well deserved reputation as world leader in food safety and trade. . .

Lamb supply model based on dairy industry – Alan Williams:

A new supply offer to lamb producers is a bid to replicate the payment system in the dairy industry, South Canterbury livestock agent Peter Walsh says.

His company, Peter Walsh & Associates (PWA), is offering farmers advance payments of $8 a lamb a month, from the start of lambing through weaning and for a maximum four months.

The total $32 a lamb payment would help farmers with much-needed cash flow, the company said in a note to clients.

The Meat Industry Excellence (MIE) farmer group had concerns about the third-party involvement between farmer and processor, chairman Richard Young said. . .

Canterbury irrigation project wins $2.4m Govt grant:

Canterbury’s vast Hurunui irrigation project has received a shot in the arm with a $2.4 million grant from the Ministry for Primary Industries’ irrigation acceleration fund.

The money will go towards feasibility work on the Waitohi irrigation and hydro scheme, a crucial part of the project that will irrigate the plains and valleys in the Hurunui and Waipara Rivers through four storage reservoirs.

The project is the first to emerge from the Canterbury Water Management Strategy and if the initial study shows the dams can be built. further investment will be required to take the scheme to full feasibility stages. . .

Genomics can fast track tree breeding:

The forest industry is investigating new tree breeding techniques that could more than halve the time it takes to develop new varieties of pine.

The Government is contributing half the cost of a $5 million research programme by the Radiata Pine Breeding Company.

Chief executive John Butcher said using established selective breeding techniques can take up to 30 years to reach the stage of planting new tree varieties. . .

Stratford farmer in breach of Minimum Wage Act:

A Stratford farmer is to pay a former worker wage arrears after the Ministry of Business, Innovation and Employment’s Labour Inspectorate identified breaches of minimum employment rights.

The case follows Labour Inspectorate action in the dairy sector focussing on employer maintenance of accurate time and wage records.

The Labour Inspectorate found the worker’s pay was averaged across seasons and didn’t meet the minimum wage rate. . .

Seeka first-half profit plunges 92 percent on Psa impact:

Seeka Kiwifruit Industries, the fruit grower and coolstore and packhouse operator, reported a 92 percent dive in first-half profit as the outbreak of Psa-V vine bacteria takes its heaviest toll on certain kiwifruit varieties.

Net profit sank to $672,000, or 5 cents per share, in the six months ended June 30, from $8.5 million, or 59 cents, a year earlier, the Te Puke-based company said in a statement. Revenue dropped 16 percent to $67 million on declining kiwifruit volumes. The most dramatic was the slump in Zespri Hot16A gold to production of just 155,000 trays, compared with 1.2 million trays a year earlier. . .


Rural round-up

August 13, 2013

Engaging youth in agriculture – the key to a secure food future – Farming First:

Engaging youth in agriculture has been a prominent topic recently and has risen up the development agenda, as there is growing concern worldwide that young people have become disenchanted with agriculture.

With most young people – around 85%living in developing countries, where agriculture is likely to provide the main source of income it is vital that young people are connected with farming.

Currently around the world we’re living in an era where rapid urbanisation has led to a decline in rural populations and for the first time ever the majority of the world’s population lives in a city. The UN World Health Organization predicts that “by 2030, 6 out of every 10 people will live in a city, and by 2050, this proportion will increase to 7 out of 10 people” meaning that more young people than ever before are moving to cities and towns to find work, leaving few behind to work in rural areas. . .

Fonterra’s Group Director of Strategy to lead Recovery Management Team:

 Fonterra today announced that Maury Leyland, Group Director of Strategy, will lead its Recovery Management Team responsible for the ongoing operations of the precautionary recall and will oversee the operational review announced by the CEO last week.

Chief Executive, Theo Spierings, said, “Maury will manage all aspects of the recent recall and will oversee the operational review I announced last week. She will report directly to me on progress and findings. This will be an in-depth review covering our business processes, information and traceability systems, and current ways of working, including decision-making processes”, Mr Spierings said.

Ms Leyland said the operational review is separate to the one being conducted by the Board of Directors of Fonterra, but that the findings will be shared directly with them.

“Our initial investigations have given us a clear idea of the events that led to our precautionary recall, but we now need to establish a detailed understanding of the processes, systems and decisions involved. . .

 

China’s Bright Dairy looking better after Fonterra’s food safety stumble, Moody’s says – Paul McBeth:

China’s Bright Food Group, a cornerstone stake in local processor Synlait Milk, is likely to get a boost from Fonterra Cooperative Group’s food scare and might get a credit rating upgrade from Moody’s Investors Service.

Fonterra is the biggest milk powder supplier into China with about 60 percent market share, and last week’s food safety scare is seen as credit positive for Bright Food’s Baa3 credit rating with a stable outlook, Moody’s said in a statement. The New Zealand dairy exporter discovered bacteria that can cause botulism, which sparked a recall of potentially tainted food and prompted Chinese authorities to suspend imports of affected products.

“The incident is credit positive of Bright Food, which operates its dairy business through Bright Dairy & Food Co, a 65 percent Shanghai listed company and is one of China’s top three dairy producers by revenue,” Moody’s senior analyst Alan Gao said. . .

PGG Wrightson take $321M charge on goodwill, operating earnings drop on drought:

PGG Wrightson, the rural services company controlled by China’s Agria Corp, took a $321 million charge to write off goodwill from its 2005 merger while posting a decline in operating earnings in line with guidance on the effects of this year’s drought.
The net loss was $306.5 million in the 12 months ended June 30, from a profit of $24.5 million a year earlier, the Christchurch-based company said in a statement. Sales fell 15 percent to $1.13 billion. Stripping out the impairment, net profit would have been $14.6 million, missing First NZ Capital expectations for net earnings of $19.4 million. . .

‘Broccoli lady’ honoured for kumara work – Tennessee Mansford:

A Kiwi woman’s just been named Australasia’s marketer of the year for her work to promote the humble kumara.

And it’s not the first time American-born Lisa Cork has made headlines with her vegetable antics. Twenty years ago she sent 10 tonnes of broccoli to US President George Bush.

It was labelled broccoli-gate or the broccoli brouhaha, and it all stemmed from one statement by then US President George Bush, Sr in 1990. . . .

Giesen The Brothers Pinot Noir 2011 wins top trophy:

Growing recognition of the calibre of Marlborough Pinot Noir has been highlighted with Giesen The Brothers Pinot Noir 2011 winning top accolades at the 2013 Spiegelau International Wine awards dinner in Auckland on the weekend.

Produced from the sought after Wairau Valley in Marlborough, The Brothers Pinot Noir 2011 won gold and then went on to win the overall trophy for Singapore Airlines Champion Pinot Noir.

Marcel Giesen said Giesen Wines is now focusing considerable attention on Pinot Noir, having planted their first 100% organic Pinot Noir vineyard only three years ago. . .


Rural round-up

June 5, 2013

Hepatitis A outbreak linked to Oregon berry farm – Mary Clare Jalonick:

The Food and Drug Administration is investigating an outbreak of hepatitis A linked to a frozen organic berry mix sold by an Oregon company.

The FDA and the federal Centers for Disease Control and Prevention said Friday that 30 illnesses are linked to Townsend Farms Organic Anti-Oxidant Blend, which contains pomegranate seed mix. Illnesses were reported in Colorado, New Mexico, Nevada, Arizona and California.

Several of those who fell ill reported buying the berry mix at Costco, according to CDC. A Costco spokesman said Friday that the company has removed the product from stores and is attempting to contact members who purchased the product in recent months. . .

Research shows importance of dairy

New consumer research shows 72% of Asians think dairy is an important part of a balanced diet.

However, the research also shows fewer than half the 9000 people surveyed in nine countries are eating every day.

Fonterra strategy director Maury Leyland said the results clearly demonstrate growing awareness of the importance of dairy nutrition across the region and the opportunity this presents to the New Zealand dairy industry. . .

High quality tipped for bumper olive harvest – Peter Watson:

It’s a nervous time for Nelson olive growers as they try to beat the onset of winter, and the birds, to harvest what is expected to be a record crop.

Ideally, Peter Coubrough wanted to wait a couple of weeks before starting picking on his small grove on the Waimea estuary near Mapua to allow further ripening and get the oil percentage up, but he was unwilling to take that risk and lose a heavy crop.

“The weather hasn’t been as warm and sunny as we would have hoped.

“If we don’t get the fruit off now it will either get frosted or the birds will get it,” he said as the pickers arrived last week to begin work at Frog’s End Estate. . .

Vital investment tool developed for wood processors:

A major study report released by the Wood Council highlights the need for by-products from established industries like sawmilling if New Zealand is to develop profitable businesses based on emerging technologies, like bio-fuels and bio-chemicals.

The WoodScape study is the result of collaboration between the forest and wood products industry, the NZ Ministry for Primary Industries and NZ Trade and Enterprise, which together funded the project.

Crown Research Institute Scion, in partnership with FP Innovations and the Wood Council, evaluated wood processing investment opportunities in a New Zealand setting. . .

Fertiliser company seeking $10m for phosphate project:

Chatham Rock Phosphate is going to the public for the first time to raise up to $10 million, to help fund it through to the start of mining in 2015.

The fertiliser company said the public offer aims to raise $4 million with the ability to accept oversubscriptions of a further $6 million.

The offer will consist of new ordinary shares at an issue price of 35 cents per share with one option attached to every three shares issued. . .

Reaping rewards of hard work – Rebecca Harper:

There seem to have been a rash of farming awards handed out recently – perhaps it’s the season for it.

As a first-time attendee at the New Zealand Dairy Industry Awards, they were extremely impressive.

The awards, held at the TSB Arena in Wellington, ran like a well-oiled machine. It was a most professional and well-attended black-tie event.

The evening reflected the pride in the dairying industry and the esteem the awards are held in. There was truly the cream of the crop in the room.

And for an industry that pulls in a huge chunk of the country’s wealth, it was great to see its top achievers given the credit they are due, in the capital city. . .

Russell McVeagh and Fonterra scoop up ALB Law Awards:

Fonterra’s Trading Among Farmers transaction, completed in November 2012, was one of the big winners at this year’s ALB Australasian Law Awards. The transaction won New Zealand Deal of the Year and the IPO of the Fonterra Shareholders’ Fund won the Equity Deal of the Year Award, an Australasian-wide category. Russell McVeagh acted as the principal legal advisors to Fonterra from the beginning of the transaction in 2010 to its completion.

The firm would like to congratulate the Fonterra legal team, which also won the New Zealand In-house Team of the Year Award in recognition of their outstanding hard work and achievement. . .

New agriculture vehicle regulations:

New rules for agricultural vehicles came into force on June 1 with rural contractors – and farmers –being encouraged to familiarise themselves with these changes.

Rural Contractors New Zealand – the national association and the leading advocate for rural contractors in New Zealand – executive director Roger Parton says the new rules offer agricultural vehicle owners improved compliance and greater operational flexibility. He says Rural Contractors NZ has worked collaboratively with Ministry of Transport, NZTA and NZ Police to develop them.

“These changes are a long time coming and have resulted in rules that are easy to understand, comply with and enforce,” Roger Parton adds. “These changes recognise the unique operating characteristics and environment that agricultural vehicles require to travel on the road.” . . .


%d bloggers like this: