Rural round-up

April 3, 2015

New Zealand Greenshell mussel breeding begins at brand new hatchery in Nelson

New Zealand aquaculture will be getting stronger mussels, thanks to some heavyweight Kiwi science underway in Nelson.

A new hatchery and lab facility is opening today (02/04) just north of the city at the Cawthron Aquaculture Park where Greenshell™ Mussels can be selectively bred like sheep or cattle to give our mussel farmers the very best that nature has to offer on their mussel farms.

The project leaders say it takes the element of chance out of mussel farming. . .


New hatchery to boost mussel industry:

Primary Industries Minister Nathan Guy has welcomed a major milestone for the aquaculture industry today with the opening of the country’s first ever hatchery specially designed for mussels.

The mussel hatchery and nursery facility in Nelson is part of the SPATnz Primary Growth Partnership (PGP) programme, which was established to develop selectively bred, high-value Greenshell™ mussels.

“This hatchery is the culmination of years of research and development by a team of scientists from Shellfish Production and Technology New Zealand Ltd (SPATnz) and the Cawthron Institute,” says Mr Guy.  . .

“It has the potential to generate nearly 200 million dollars per year to New Zealand’s economy. . .

Wasps sting NZ economy:

Two species of introduced wasps are costing New Zealand’s economy more than $130 million a year.

A study by the Department of Conservation and the Ministry for Primary Industries showed German and common wasps, which belong to the genus Vespula, have had huge economic impacts on farming, beekeeping, horticulture and forestry.

Department of Conservation scientist Eric Edwards said the loss of honey production was one of the major costs. . .

NZ’s “basketcase” bee industry seeks levies, national body – Suze Metherell:

(BusinessDesk) – Representatives of New Zealand’s fragmented bee industry have called on government support to reintroduce commodity levies for honey and the creation of a single national body by April next year.

Appearing before the primary production select committee, John Hartnell, chair of the Federated Farmers Bee Industry Group, Ricki Leahy, president of the National Beekeepers Association and its chief executive Daniel Paul, said government support is needed to reimpose commodity levies to help fund a single, comprehensive national association to represent the industry worth an estimated $5.1 billion annually. . .

New beagle pups join biosecurity team:

Two wriggly beagle puppies will spend their first Easter as trainee biosecurity detector dogs.

Ten-week-old Charleston and Roxy (brother and sister) joined the Ministry for Primary Industries’ detector dog programme two week ago.

If all goes well, they will start sniffing out food and plant materials at New Zealand’s airports and ports after 12-14 months of training. . .

Low dairy prices may have silver lining:

While all dairy farmers will be feeling the financial crunch this year, some are still looking for a silver lining.

Federated Farmers’ sharemilking chair Neil Filer said it could provide an opening for young sharemilkers to get their foot in the door.

Prices fell by 10.8 percent in last night’s GlobalDairyTrade auction, with an average price of $US2746 a tonne. Whole milk powder fell 13.3 percent to $US2538.

Mr Filer said sharemilking was still seen as an attractive and viable industry and at times like this, there could be a positive side. . .


Infant formula marketing decision welcomed:

The Infant Nutrition Council (INC) welcomes the Commerce Commission confirmation of the authorisation of the INC’s Code of Practice for marketing infant formula.

The Code of Practice restricts the advertising and marketing of infant formula by members.

It has been in place since 2012 and is consistent with New Zealand’s commitment to the World Health Organisation’s International Code of Marketing of Breast Milk Substitutes (WHO Code). . .


Fonterra Notifies Affirmation of Credit Rating:

Fonterra Co-operative Group Ltd is pleased to advise that it has been notified by Standard & Poor’s Ratings Services that they have affirmed Fonterra’s credit rating. This affirmation follows the release of Standard & Poor’s rating criteria for agricultural co-operatives which applies to Fonterra. . .

Rural round-up

February 19, 2015

Future dairy leaders – Sam Johnson:

Last week I was invited to speak to 60 graduates at Fonterra in Palmerston North. As New Zealand’s largest co-operative, Fonterra is seen as delivering significant economic value back into Aotearoa.

The 60 graduates I was privileged to speak to have all graduated at the top of their classes from various institutions around New Zealand. After graduating, they each spent two years working in various factories around the country, learning about everything; from milk production, the intricate details of making yoghurt to coming up with new ideas using their skills to streamline processes, ultimately seeking to improve the efficiency and success of Fonterra.

Before I arrived, each person delivered a 10-minute presentation on their project or thesis around their area of expertise. Then the debates began on whether or not the idea would save the company $10 million. While saving money didn’t appear to be the brief from the company, I was interested in how frequently the cost saving aspect was referenced. . .

Good progress in Auckland fruit fly operation:

Field work is ramping up in Auckland today in response to the detection earlier this week of a single male Queensland fruit fly in a surveillance trap in Grey Lynn.

MPI, along with response partners and Government Industry Agreement partners KVH and Pipfruit NZ, have responded swiftly.

Today a field team of more than 90 staff is setting additional fruit fly lure traps to determine if other flies are present in the area.

Field teams are also collecting samples of fruit from home gardens in the area to test for any flies or their eggs or larvae. . . .

Students making quads safer:

850 farmers are injured each year from quad bike accidents in New Zealand. Two to seven die. A group of young innovative entrepreneurs are launching a new, safe storage solution for carrying equipment on quad bikes. Launching this week, Flatpak is a bag that is specifically designed to easily attach onto the back of a quad bike. They are launching their pledge me campaign on the 18th of February. Here, customers are able to pre-order a limited edition Flatpak along with other rewards.

They are working to raise $40,000 to produce their first run of 100 Flatpaks! They need your help. . .

‘Tactics for Tight Times’ to be shared – Sally Rae:

DairyNZ has launched a campaign to help dairy farmers get through a tough season brought on by a low milk price and drought.

The declaration of drought conditions on the South Island’s east coast as a medium scale adverse event had highlighted the ”critical need” for extra support for farmers, DairyNZ chief executive Tim Mackle said.

”The milk price hit a six year low in December, and dry conditions have exacerbated the situation, forcing many farmers to make some pretty tough decisions, especially as they look to set themselves up for next season,” he said. . .

Aorangi Young Farmers to be put to the test in ANZ Young Farmer Contest Regional Final:

The second ANZ Young Farmer Contest Grand Finalist will be determined next weekend, Saturday 28 February at the Aorangi Regional Final held in Oamaru.

“This contest season is shaping up to be very impressive after a fantastic Regional Final in Queenstown over Waitangi weekend. Every year the calibre of contestants continues to impress,” says Terry Copeland, Chief Executive of New Zealand Young Farmers – organisers of the event.

The eight finalists are contending for a spot at the Grand Final in Taupo 2 – 4 July and their share of an impressive prize pack worth over $271,000 in products, services and scholarships from ANZ, FMG, Lincoln University, Silver Fern Farms, AGMARDT, Ravensdown, Honda, Husqvarna and Vodafone. . .

 Tractor industry reports buoyant sales:

Waikato led the way in purchases of tractors in New Zealand during 2014, in a year when tractor sales approached record highs.

A total of 4061 tractors were purchased between January and December, including 3,419 of at least 40 horsepower (HP), the most common measure for farm tractors. The figure is significantly more than the 3065 40HP tractors bought in 2013.

Ian Massicks, president of the Tractor and Machinery Association (TAMA) which gathers the sales data, said a combination of the record dairy payouts last year and good growing conditions were key to farmers investing in new equipment. . .


And Spring Rolls into Summer:

Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 109 fewer farm sales (-19.3%) for the three months ended January 2015 than for the three months ended January 2014. Overall, there were 455 farm sales in the three months to end of January 2015, compared to 486 farm sales for the three months ended December 2014 (-6.4%) and 564 farm sales for the three months to the end of January 2014. 1,811 farms were sold in the year to January 2015, 1.0% more than were sold in the year to January 2014.

The median price per hectare for all farms sold in the three months to January 2015 was $27,997 compared to $22,664 recorded for three months ended January 2014 (+23.6%). The median price per hectare fell 2.7% compared to December. . .

Rural round-up

February 12, 2015

Farmers trading risks with barns, study shows:

Investing in a wintering barn may feel good for the farmer but it won’t necessarily be profitable, according to a DairyNZ study.

DairyNZ senior economist Matthew Newman and AgFirst consultant Phil Journeaux, presented the interim results of the study to a conference in Rotorua today, indicating that the jury is still out on whether investing in a wintering barn is a good financial or environmental move.

The paper presented to the Australian Agricultural and Resource Economics Society’s annual (AARES) conference is based on analysis of a selection of five South Island farms with free stall barns. . .

Safer Farms a personal responsibility:

Speech by Peter Jex-Blake, Federated Farmers Gisborne/Wairoa provincial president to the SaferFarms launch at Wairakaia Station, Muriwai

First of all I would like to congratulate WorkSafe on the Safer Farms initiative. Improving farmer awareness and understanding of risks involved, along with education on how these risks can be minimised and or managed, is a far more effective approach than dishing out heavy handed fines which are totally disproportionate to the offence committed, and create much antagonism towards the regulators.

By nature, farmers are individuals who strongly believe in personal responsibility rather than having ‘big brother’ telling them what to do, and have an inherent intolerance for bureaucracy and attending to endless compliance documents. Family farms are still the backbone of the New Zealand economy, and often are run solely by family members. Farmers do what they do because they enjoy the lifestyle the business provides. It enables the family to be involved in the business. It is a challenging, demanding and complex business, so attending to increasing compliance and filling out of forms is not something that most farmers enthuse over, and does take away some of the enjoyment factor. . .

Biosecurity officials go to war over bug:

Biosecurity officials are raising a bit of a stink about a voracious bug that could cause havoc with fruit and vegetable crops if it gets loose here.

The Ministry for Primary Industries has scaled up treatment requirements for vehicles and machinery coming from the United States because of more frequent discoveries of the brown marmorated stink bug on these imports.

The stink bug originated in Asia, notably China, Japan, and Korea but has now invaded the United States where it is causing huge losses to crops. . .

China-NZ Customs work to enhance trade:

Customs Minister Nicky Wagner says New Zealand and China Customs authorities are a step closer to establishing a system to enhance trade assurance and facilitation under the New Zealand China Free Trade Agreement.

Ms Wagner and NZ Customs officials met with the Vice Minister of the General Administration of China Customs Mr Sun Yibiao and his delegation in Auckland today to discuss facilitating trade and combating drug trafficking.

“Trade with China is critical to our economy, and it’s important that traders’ documents meet our trade partners’ standards to ensure exports travel smoothly,” Ms Wagner says. . .


Julio’s first day of farming – Julian Lee:

Campbell Live reporter Julian Lee – also known as Julio – wanted to find out what it was really like to be a dairy farmer.

So he left the office for the day and stayed on the Downings’ Farm in Morrinsville and did an actual shift on the job.

Everyone in the Campbell Live office was so impressed by Julio’s first day as a dairy farmer, that we’ve decided to turn it in to a series: Have you got a job for Julio? . . .

Merino fashion brand PERRIAM expands with the launch of Little PERRIAM:

Little PERRIAM, the exciting, fresh new babies and children’s merino clothing label by Wanaka fashion designer Christina Perriam, launches online and in select retail outlets today.

Today’s release of the first Little PERRIAM range follows the successful launch of Christina’s new luxury lifestyle merino fashion brand PERRIAM, which took place in Tarras in October 2014.

Little PERRIAM replaces Christina’s hugely popular babies and children’s label Suprino Bambino as she continues to deliver her new brand’s overall vision. With similar design elements to Suprino Bambino, like fun prints, bold colours, touches of Liberty fabrics and on-trend designs, the Winter 2015 range of Little PERRIAM is expected to continue to be a hit with parents and kids.


Leading real estate company strengthens leadership of its rural division:

Bayleys Real Estate has strengthened its countrywide rural division – with the appointment of Simon Anderson to head up the company’s rural marketing and sales activities nationally in the newly created role of national country manager.

Mr Anderson has been involved with the company’s rural activities for 13 years as the regional rural manager for the Bay of Plenty, Waikato and Taranaki regions.

Based out of Bayleys’ Tauranga office, Mr Anderson will take on a strategic role to expand the agency’s national and international marketing of rural properties – ranging from horticulture, sheep and beef, forestry and viticulture sites, through to agricultural and dairying blocks. . .




Rural round-up

January 19, 2015

Water not just a pipe dream – Tim Fulton:

The latest Canterbury drought is reinforcing a message in farming: irrigation is valuable, stored supply is better and an alpine water source is best of all. TIM FULTON reports.

When the norwesters keep blowing rain on the Southern Alps and drying out the plains, even irrigators with the most advanced water networks can feel anxious.

Farmer shareholders on the $115 million Rangitata South irrigation scheme are facing tight storage conditions, even though they have access to periodic floodwater.

The network has been “just squeaking along with a rain here, a little fresh there” since it started supplying last spring, chairman Ian Morten says.

More water cannot be delivered from the main pond to farms on the scheme until the Rangitata River flows at 110 cubic metres. . .

Drought fears grow as dry spell continues:

Primary Industries Minister Nathan Guy is expected to visit the parched South Canterbury area in the next few weeks as concern mounts that it and some other regions may be heading for a serious drought.

The Ministry for Primary Industries is monitoring the conditions in South Canterbury, as well as North Otago, Wairarapa and southern Hawke’s Bay.

MPI director of resource policy David Wansbrough said it had been talking with farmers and rural support trusts on a weekly basis.

However, he said farmers and communities appeared to be coping so far and the Government was not planning to step in with any support measures at this stage. . .

Drought!!!? – Gravedodger:

Drought is widely regarded in agricultural terms as a prolonged period of low rainfall when pastures and crops become seriously degraded by dehydration.

Yes last spring was one of low precipitation in many districts and having traveled the East coast from North Otago to The Bay of Plenty in the last 50 days there are now pockets with fodder insufficiency from “The Dry” but drought it aint.

Large Parts of Australia have been in that situation for several years and many rural properties are in a savage drought. With livestock having lost a serious degree of body weight, water supplies gone burger and absolutely zero opportunity to remove stock as buyers do not exist, increasing numbers of Aussie Farmers are taking their lives as despair overcomes their will to continue. . .

Big dry affects dairy production – Dene Mackenzie:

Dairy production is likely to slow below previous forecasts as parts of Canterbury and Otago dry off and water restrictions kick in, ASB rural economist Nathan Penny says.

”As we get further into the New Zealand summer, attention is turning to agricultural production. In the case of dairy, production has been good to date this season – albeit uneven across the regions.” . . .

Storage gives power to farmers – William C. Bailey:

United States corn and soybean farmers have a clear understanding that bad markets and low prices will reverse themselves to good times, just as good times will, eventually, fade into bad times.

The challenge, when these high or low points appear, is to prepare for the phase that will follow.

US corn and soybean farmers have enjoyed, over the past three to five seasons, really, really good prices. . .

 Sheep help drive tribe’s farm performance:

Ngati Porou has turned around its farming fortunes, reporting a surplus of $324,000 in its last financial year.

The figure compares to the previous period’s deficit of $1.46 million.

The Tairawhiti tribe said performance of its sheep division had improved, with sheep values and prices increasing.

Ngati Porou also said its lamb crop nearly doubled over two years, reaching 12,224 last year. . .

Rural gig good for peace-lovers – Steve Wyn-Harris:

Possibly every generation throughout history reckons things are getting worse and we are all going to hell in a hand basket.

That’s a little how I’m feeling at the moment.

However, there are great things happening here at the beginning of the 21st century which we should be grateful for.

For much of the world’s population improved healthcare and better food have led to the longest life expectancy humans have ever experienced. . .


Rural round-up

December 24, 2014

The winding path for agri-food – Keith Woodford:

With another year winding down, it is time to reflect on how well the agri-food industries have been travelling, and to look forward to what the next twelve months might bring.

2014 will be the remembered as the year that the dairy industry started on the super highway but then hit a pot hole. Many in the industry expected a slow-down, but most have been surprised by the depth of the hole. It is also the year when the dairy industry began to recognise the full extent of the nitrogen leaching challenge.

For beef, 2014 was the best farming year there has ever been, and for sheep farmers it was also a positive year. The kiwifruit recovery gained momentum, and the wine industry moved forward. These outcomes have all occurred despite an exchange rate that for much of the year was at record highs. . . .

Landcorp seeks to fatten sheep returns through wool deal, milk – Fiona Rotherham:

(BusinessDesk) Landcorp, New Zealand’s largest corporate farmer, is moving on two fronts to expand the money it makes from sheep, signing a three-year contract with NZ Merino to manage its entire wool clip and planning a trial of milking some of the flock.

The state-owned enterprise indicated last July it was taking a serious look at milking sheep as a way of getting a third income, along with meat and wool, from its flock.

Chief executive Steve Carden said while milking sheep is common offshore, most of it is consumed domestically and there is no real international player. Landcorp has been investigating establishing a premium, niche sheep milk brand from the 370,000 ewes it farms. . .

Venison companies working together:

The venison exporter and processor, Duncan and Co is hoping it will soon join other companies whose plants have been certified to supply venison to China.

This year seven venison processing plants received approval to export to China, which was a new market for New Zealand farmed deer meat.

Duncan and Co’s general marketing manager Glenn Tyrrell said it was hoping its plants would also be cleared for China in the new year.

And it was working with four other companies on a joint marketing project. . .

Avocado industry waits for China clearance:

The New Zealand avocado industry is waiting for clearance to export to China, as it expands its trade into Asian markets.

The Ministry for Primary Industries was negotiating an access agreement for China and avocados are at the top of its priority list for horticultural products.

Chief executive of New Zealand Avocado Jen Scoular said only Chile and Mexico had access to China for the fruit.

But she said avocado industry representatives attended a fruit and vegetable fair in Beijing last month, where Chinese officials indicated they saw no technical reasons why New Zealand should not be granted access as well. . .

Gibbston Valley Winery launches full-service bike centre to cater for growing demand:

Award-winning Gibbston Valley Winery is adding to the experiences that locals and visitors can enjoy at the winery with the opening of a new on-site bike centre.

Gibbston Valley Winery CEO Greg Hunt said the centre was the next stage in the company’s continued expansion, enabling them to cater to the growing demand for cycling facilities in the region and grow its biking product while also showcasing award-winning wine and food.

“Located across from the beautiful Kawarau River and next to Rabbit Ridge Bike Resort, our new biking centre gives people convenient access to some of the top biking trails in Queenstown and a premium Central Otago wine and food experience,” said Mr Hunt. . .

Silver Fern Farms Confirms Audited Result:

Silver Fern Farms has bounced back to profit and reduced debt for the 2014 year.

The co-operative is reporting a net profit before tax for the year of $1.8 million, a $38.3 million improvement on the 2013 season. Over the same period the company paid down $99 million in debt as part of a plan to reduce the cost of debt servicing to the company.

Chairman Rob Hewett says Silver Fern Farms’ shareholders will be heartened to see audited confirmation of the turnaround in profitability. . . 

Sealord nets a profit and pays dividend:

Sealord Group Ltd has reported a net profit after tax of NZD$25.4 million for its financial year ending 30th September 2014.

The result marks a return to profit for the Group following the exit from its Argentine fishing investment the previous year.

The result has enabled Sealord to declare a dividend of NZD $10.5 million to its shareholders.

Company revenues of NZD $448 million were slightly lower on the previous year due to unfavourable foreign exchange movements.

According to Chairman Matanuku Mahuika, the result represents a significant turnaround from the previous year. . .

Rural round-up

December 19, 2014

New tool to test sheep meat quality:

An international project testing the eating quality of sheep meat using DNA measurements will enter its final stage next year, with the tool developed set to be tested on commercial flocks in New Zealand.

In September last year, a sheep genotyping tool known as a SNP (snip) chip was created by an international team of scientists as part of the FarmIQ genetics project.

John McEwan, one of the project’s leaders and AgResearch principal scientist, says the chip measures hundred of thousands of DNA variances and allows a sheep’s performance to be predicted by testing its DNA, rather than extensive progeny testing being needed.

“We take an ear punch out of the sheep – just a very small piece of tissue about three millimetres in diameter – and we extract the DNA out of that from the sheep. Then we place that DNA on this slide or chip and develop it with a set of chemicals and the DNA variance appears as different colours.” . .

Farmer contracts not taxing water-take:

Contracts signed so far to take water from Hawke’s Bay’s Ruataniwha dam and irrigation project added up to only about 13 percent of the commitment needed to make the scheme commercially feasible.

But the company running the project says farmers representing more than half of the minimum water-take required have made the decision to join the scheme and have asked for contracts.

The figures are in a report that the Hawke’s Bay Regional Council’s investment company presented to the council today.

The company has until the end of March next year to decide whether the dam and irrigation project in the Tukituki River catchment will have enough backing to proceed. That includes having enough farmers signed up to take a minimum of 40 million cubic metres of water a year. . .

Ngai Tahu launches farming diploma:

Ngai Tahu has launched a new Maori Farming Diploma which it hopes will produce the country’s future leaders in agriculture.

Whenua Kura is a partnership between Te Tapuae o Rehua, Ngai Tahu Farming and Lincoln University.

The diploma course is the first of its kind where students will study in a Maori environment and learn how to apply critical Ngai Tahu values such kaitiakitanga (guardianship), manaakitanga (hospitality) and rangatiratanga (self-determination) to land use. . .

It’s always Christmas for farmers – Vincent H. Smith:

It is Christmas time once again and in my part of the world, southwestern Montana, the snow has arrived and will be with us until early March.  Most nights the temperature will fall well below 20 degrees Fahrenheit; some days the thermometer won’t rise above zero.

That’s winter time in the Northern Great Plains and the eastern Rocky Mountains, where cabin fever is a real phenomenon and ranching becomes truly hard work. In this world, cattle can be inconvenient. They need water and calories in places where they can feed and drink, and cows often calve on bitterly cold February and early March nights.

Ranching is also risky in the winter time; herds can be decimated by blizzards and what seem like mile high snow drifts. And ranchers, on the whole, are genuine risk taking entrepreneurs who, for the most part, neither seek nor receive substantial federal bailouts. Most of them also know that country of origin labelling is a bad economic idea that has reduced the prices they are paid by meatpackers and feedlots. The National Cattlemen’s Beef Association, for example, has recently argued that the US should “reform” and essentially terminate that program rather than appeal a recent WTO finding that the program violates US WTO commitments. . .

A new standard for labelling of export infant formula:

The Ministry for Primary Industries (MPI) has today issued a new standard to clarify the labelling requirements for exports of infant formula.

“The standard has been developed as part of the infant formula market assurance programme announced by the Government in June 2013,” said Scott Gallacher, MPI Deputy Director-General, Regulation and Assurance.

“It is the first of a set of technical regulatory changes that will be introduced progressively over the next six months to further strengthen our assurance system for exports of infant formula products.

“MPI consulted on the new standard during July and August. The new standard clarifies the information that must be on labels of infant formula intended for export, and information or representations that are restricted or prohibited on these products. . .

New labelling standard for infant formula:

Food Safety Minister Jo Goodhew has today welcomed a new standard under the Animal Products Act that clarifies the labelling requirements for infant formula exports.

“Currently all export dairy products are exempt from New Zealand’s food labelling standards, they instead meet labelling requirements of the importing country,” Mrs Goodhew says.

“Infant formula is a special product. For this reason, the Ministry has put in place this new standard, which applies regardless of where the infant formula is being sent. This will ensure exporters know what information must be on labels, and what information and images are prohibited.  . .

20 years of selling semen and nothing’s a problem:

Te Aroha local, born and bred, Butch Coombe celebrates 20 years working with CRV Ambreed as a field consultant.

Starting out part-time to supplement the income on his 110-acre farm, his sales patch grew and grew and enabled him to buy extra things for farm like a new four-wheeler with his ‘top up earnings.’ When his area grew to the point where it could support his family, he decided to sell the farm and join CRV Ambreed full-time.

It was a big move for Coombe and his wife Heather, who had been farming their whole married life – some 30 years – but he was pleased not to have to leave the industry or cattle completely. . .


Govt accepts WPC recommendations

December 9, 2014

Primary Industries Minister Nathan Guy says the government accepts all the recommendations of the report into last year’s whey protein concentrate incident.

“The rigour and conclusions of the report, as well as the actions of key players since the incident, should further strengthen confidence in New Zealand’s world class food safety system,” says Mr Guy.

The second report of the independent inquiry, headed by Miriam Dean QC, looks at how the potentially contaminated WPC entered the New Zealand and international markets, and how this was subsequently addressed.

“This is a very robust piece of analysis which makes some valuable recommendations for all parties involved. I am pleased a number are already in place or are being implemented,” says Mr Guy. 

“The report concludes that the Ministry for Primary Industries took the correct decisions in putting consumer interests and public health first, both in New Zealand and overseas, by adopting a precautionary approach,” says Mrs Goodhew.

“It recommends, among other things, that MPI works to finalise its single scalable response model and undertake regular exercises and simulations. We accept these recommendations and work is already well-advanced in these areas.

“MPI has already better aligned its structure, provided greater clarity on food safety responsibilities and accountabilities to key players, and put in place new governance processes.

“A Food Safety Law Reform Bill is being developed for introduction in 2015, and a Food Safety and Assurance Advisory Council is meeting quarterly.

“Working groups with industry representation are underway focusing on traceability and capability in the dairy sector. A Food Safety Science Centre is being established, and MPI has increased its presence in key overseas markets, including China,” says Mrs Goodhew.

“In addition to the funding provided by Government as part of its response to the Inquiry’s first report, we will be providing $7.9m over four years for MPI to strengthen its core food safety regulatory and operational capability,” says Mr Guy.

“The first part of the Inquiry reported back to the Government in December 2013. It concluded that New Zealand has a world class food safety system, and that the WPC incident was not the result of any failure in the regulatory system.

“It made 29 recommendations to the Government, all of which were accepted, and good progress has been made on implementing these.

“All parties involved in this incident have learnt valuable lessons, and have become stronger and better prepared for any future issues. We are aware of significant changes Fonterra has made to its processes and systems following the incident,” says Mr Guy.   

“We want to thank Miriam Dean QC who led the Inquiry, assisted by Tony Nowell and Dr Anne Astin, and Professor Alan Reilly as the independent peer reviewer.”

The full report is here.

Fonterra’s initial response to the incident was appalling.

However, the company learned from that and the government’s acceptance of this report’s recommendations will further strengthen food safety.

That is essential for both health and economic reasons when so much of our export income comes from food.


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