Rural round-up

November 27, 2015

Rural NZ areas sit on ‘powder keg’ as temperatures rise – Mike Watson:

Rural fire authorities are warning farmers and contractors to check for potential ‘hot spots’ inside machinery and farm equipment as temperatures rise in Marlborough.

Marlborough Kaikoura Rural Fire Authority chief fire officer Richard McNamara said the rural region was on a “powder keg’ as temperatures rise and hot northwest winds continued to dry vegetation causing significant risk of fire outbreaks.

“It is a real issue, and anyone working with farm machinery and equipment, such as welding or grinding, needs to be aware of the risk of sparks igniting any vegetation nearby,” he said. . . 

Many positives but RMA reforms don’t go far enough:

Federated Farmers cautiously welcomes the Resource Legislation Amendment Bill introduced at Parliament today, but is concerned that proposed reforms do not go far enough.

“What we have is a Bill that looks to make the RMA less costly and cumbersome, and these are positive changes,” says Federated Farmers’ Environment and RMA spokesperson Chris Allen.

“Federated Farmers believes the Bill provides for better plan making and we support the introduction of a collaborative planning approach as long as the right checks and balances are in place, so that this is a robust and productive process.” . . .

Alliance launches new products for Chinese market:

Meat cooperative Alliance Group is launching a new range of market-ready lamb, beef and venison products for the food retail market in China.

Alliance Group has reached an agreement with its in-market partner Grand Farm – China’s single largest importer of sheepmeat – to market the co-branded Pure South-Grand Farm products in the country from next year.

Marketing general manager Murray Brown said with meat volumes going into China becoming more difficult, the company was looking to add value to exports. . . .

Competitive future for “unbroken” NZ dairy – visiting global expert:

New Zealand dairy is well placed to compete in the global market as prices begin to recover in the coming 12 months, a visiting global dairy specialist has told localproducers.

Tim Hunt, New York-based global dairy strategist with international agribusiness banking specialist Rabobank, says while current market conditions are “extremely tough” for many local producers, the New Zealand dairy sector is “unbroken” and has the fundamentals in place to enjoy a strong, competitive future in the global dairy trade. . . .

Ongoing disruption and volatility in dairy, with winners and losers – Keith Woodford:

In the last two weeks we have seen increasing signs of further disruption and volatility in dairy. First, there was good news with Fonterra announcing that they had turned the corner In relation to enhanced corporate profitability. But then, only two days later, there was another decline on the (GDT Global Dairy Trade) auction – this time of 7.9 percent overall and 11 percent for whole-milk powder.

In the meantime, The a2 Milk Company announced that they were almost doubling their previous estimate of profitability for the coming year, triggering another increase in the share price. Since the start of November through to 24 November the price rose 60 percent on large volumes. . . 

Ruataniwha promoter seeks mix of equity, debt funding – Jonathan Underhill:

(BusinessDesk) – Hawke’s Bay Regional Investment Co, the developer and sponsor of the Ruataniwha Water Storage Scheme, says the $275 million project will be funded with a mix of equity and debt, and is likely to result in a secondary market for water contracts.

HBRIC, the investment arm of Hawke’s Bay Regional Council, is in talks with three potential investors and banks about funding. The council is putting up $80 million for an equity stake in a yet-to-be formed irrigation company. The $195 million balance will come from outside investors, bank debt and an expected contribution from the government’s Crown Irrigation Investments, which acts as a bridging investor for regional water infrastructure developments. . . 

Cellphone helps save house from Australian bushfire:

An Australian man who saw his farm “explode in a fireball” on CCTV cameras at the property says his house survived because he used his phone to activate a sprinkler system from the other side of the country.

Charles Darwin University vice chancellor Professor Simon Maddocks said the reason his house at the 45-hectare wheat farm on the outskirts of Hamley Bridge escaped the fire was because of his neighbours – and the fact he activated an irrigation system at the property by remote control from Darwin.

Two people have been confirmed dead and more than a dozen injured in the fires which continue to burn north of Adelaide. . . 

Consultation on freshwater management ideas planned:

A report today published by the Land and Water Forum on the next steps needed to improved management of freshwater will be carefully considered by Government and help contribute to a public discussion paper to be published next year, Environment Minister Dr Nick Smith and Primary Industries Minister Nathan Guy said today. 

“The Government has an ambitious programme of work on improving New Zealand’s freshwater management.  These ideas on requiring good management practice, of how we can maximise the economic benefit of water within environmental limits, integrated catchment management, stock exclusion and enabling more efficient use of water are a further contribution on how we can achieve that,” Dr Smith says.

“I acknowledge the Forum’s significant efforts in tackling difficult policy challenges and we welcome their recommendations,” says Mr Guy. . . 

Irrigation New Zealand Welcomes 4th LAWF Report:

Irrigation New Zealand welcomes the fourth Land and Water Forum (LAWF) Report.

“The diverse group of forum members have spent a lot of time collaborating to reach the additional recommendations,” said Andrew Curtis, CEO of Irrigation New Zealand. “This has resulted in constructive advice to Ministers for the development of freshwater policy. It’s now time for the government to act.”

“Freshwater is a natural and recurring resource we need to protect, and is a national asset which needs to be properly and carefully managed to bolster our agricultural-led economy. . . .

Barbara Stuart returns to the NZWAC board:

Nelson farmer and outdoor-access supporter Barbara Stuart has been appointed to the Board of the New Zealand Walking Access Commission.

The appointment heralds Mrs Stuart’s second tenure on the board, where she previously served from 2008 to 2011.

New Zealand Walking Access Commission chairman John Forbes said Mrs Stuart had long been a champion of walking access and her return was very welcome. . . .

Farm Environment Trust’s Annual Report Highlights Growth:

The New Zealand Farm Environment (NZFE) Trust and its flagship event, the Ballance Farm Environment Awards, have celebrated another successful year.

Now available on the Trust’s website, the 2015 annual report outlines the organisation’s continued growth through 2015, with another region signing up to the Ballance Farm Environment Awards (BFEA).

“We are delighted to have the Auckland region in the Awards for the 2016 programme,” said NZFE Trust chairman Simon Saunders.

“Having Auckland on board is a huge step towards being able to offer a complete national programme. We are almost there.” . . . 

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

November 12, 2015

Fonterra’s silent majority hold key to shareholder vote on number of directors:

Fonterra shareholders who want to send a message to their company have been encouraged to support the proposal to reduce the number of directors on the company’s board.

Colin Armer and Greg Gent, the two former directors behind the proposal, say that shareholders are the only people who own the company’s constitution and the only people who have the right to change it.

Mr Gent said he wanted to encourage those who do not normally vote to do so this time. . . 

Improving resource base key to sustainable growth:

Improving the quality of our natural resources is the key to sustaining economic growth in our primary sectors right across regional New Zealand, says Economic Development Minister Steven Joyce and Primary Industries Minister Nathan Guy.

Ministers Joyce and Guy today launched the updated Building Natural Resources chapter of the Business Growth Agenda with an emphasis on lifting primary sector productivity while improving our environmental outcomes at the same time.

“Our natural resources are central to achieving growth and more jobs in New Zealand’s economy, especially our regional economies. We are committed to using new scientific techniques and innovations, alongside infrastructure developments in information technology and water storage, to achieve both productivity gains and environmental gains,” says Mr Joyce. . . 

NZ’s primary sector leaders of tomorrow still bank on brand Kiwi, want deeper debate on GMOs – Jonathan Underhill:

(BusinessDesk) – New Zealand’s emerging agri-business leaders say affluent consumers in 2035 will pay a premium for products sold with a strong provenance story and that are more tailored to their needs, according to KPMG’s Agribusiness Agenda 2015.

The accounting firm asked a range of primary sector organisations to nominate emerging leaders and more than 50 of them – scientists, company executives, farmers, government officials and marketers – met for a summit in Auckland in September and were asked to share their vision for the sector in 2035. They were also surveyed on their priorities and the results compared to a separate poll of current leaders. . . 

RBNZ asks banks to stress test dairy loans, confident they can weather downturn – Paul McBeth:

(BusinessDesk) – New Zealand’s major lenders are able to cope with a protracted downturn in the dairy sector, which the Reserve Bank estimates could cause credit losses of as much as 18 percent over a four-year period.

The central bank has requested the five biggest lenders to the dairy sector – ASB Bank, ANZ Bank New Zealand, Bank of New Zealand, Westpac New Zealand and Rabobank New Zealand – to stress test their portfolios, which the Reserve Bank sees as a growing risk to the health of the nation’s financial stability. The regulator was encouraged by “realistic provisions” set aside for the portfolios, and its modelling suggests a sustained downturn would be manageable for the wider system. . . 

Dairy farming not fanning Indonesian forest fires:

Federated Farmers echoes the concerns of Greenpeace and others regarding the devastation and environmental impact of forest fires that have burned for more than three weeks across Indonesia, but says the use of Palm Kernel Expeller (PKE) as a supplementary feed source for dairy cows is not to blame.

“It’s important to remember that PKE is not the reason for these fires or tropical deforestation. It is a by-product of the extraction of palm oil and palm kernel oil which would otherwise be treated as waste,’ says Federated Farmers Dairy Industry Chair Andrew Hoggard.

“Dairy farmers are taking this waste product and making use of it as a supplementary food source, used mainly as an alternative to pasture during adverse weather such as droughts, to maintain the welfare of herds and the productivity of New Zealand’s vitally important dairy industry.” . . 

Panning for Pink Gold: Fonterra Expands Capacity in High-Value Lactoferrin:

It takes 10,000 litres of milk and incredibly sophisticated technology to make just one kilogram of lactoferrin – a high-value ingredient that Fonterra has recently doubled its capacity to produce.

The new $11 million upgrade of the lactoferrin plant at the Co-operative’s Hautapu site is now running at full volume, helping to meet growing worldwide demand for the product affectionately known as ‘pink gold’.

Lactoferrin is a naturally occurring iron-binding protein found in milk and is in high demand, particularly in Asia, for a wide range of nutritional applications from infant formula through to health foods and yoghurts. . . 

Enter Dairy Industry Awards and go on holiday:

Those that enter the 2016 New Zealand Dairy Industry Awards can win a holiday of their choosing – so long as they enter soon.

Entries in the 2016 New Zealand Share Farmer of the Year, Dairy Manager of the Year and Dairy Trainee of the Year competitions are now being accepted online at close on November 30.

Those that enter by midnight on November 20* will go into the Early Bird Entry Prize Draw and be in with a chance to win a share of $12,000 in travel vouchers and spending money. . . 

Rural round-up

November 6, 2015

Lochinver Station sells to New Zealand buyer:

One of New Zealand’s largest farms, Lochinver Station in the central North Island, will remain in New Zealand ownership following its sale for an undisclosed sum to privately owned New Zealand farming group Rimanui Farms Ltd.

It will take over the ownership of the 13,843 hectare sheep and beef station, upon settlement of the sale in March next year, from one of New Zealand’s largest private companies, Stevenson Group Limited, which has owned it for more than half a century.

Bayleys Real Estate recommenced marketing the property last month after the Government announced it had turned down an Overseas Investment Office application from Chinese company Shanghai Pengxin’s subsidiary Pure 100 to buy the property. . . 

IrrigationNZ calls for 350,000ha more land to be irrigated – Sophie Boot:

(BusinessDesk) – IrrigationNZ is calling for a dramatic escalation in irrigation, saying New Zealand could bring water to an additional 350,000 hectares by 2025, boosting agricultural production and providing a buffer against weather events such as El Nino-induced drought.

The lobby group wants a 50 percent increase in irrigated land in the next 10 years, according to its industry snapshot released today. New Zealand currently has about 720,000 hectares of irrigated land, and IrrigationNZ has produced a map showing where irrigation could be expanded, pushing total watered land to more than 1 million hectares.

Chief executive Andrew Curtis said New Zealand’s primary production growth is being hampered by a lack of a reliable water supply, which ultimately holds back economic growth. . . 

No jobs?  move to the regions, urges govt:

Unemployed people are being urged to look to the regions for work by the government, after the unemployment rate broke the 6 percent mark yesterday.

The rate is now at its highest point in two years and economists have predicted that it is likely to rise further.

Listen to more on Morning Report ( 4 min 32 sec )

But Steven Joyce, Minister of Tertiary Education, Skills and Employment told Morning Report it was a “multi-regional story”, with lot of shifts around the country.

He said that in some regions such as Otago and Northland, there were shortages of people applying for jobs, and unemployed people should consider moving if they could. . . 

Forestry joins GIA biosecurity agreement:

The forestry industry has become the sixth industry group to join the Government Industry Agreement (GIA) biosecurity partnership, Primary Industries Ministers Nathan Guy and Jo Goodhew have announced today.

“It’s great to have the New Zealand Forest Owners Association (FOA) onboard, working with the Ministry for Primary Industries to manage and respond to the most important biosecurity risks,” says Mr Guy.

“A growing number of industries have now signed up to work together with the Government through the GIA.” . . 

Forest defence bolstered by agreement with government:

The Forest Owners Association says having a biosecurity agreement with the government is a vital part of the forest industry’s defence system.

FOA chief executive David Rhodes and primary industries minister Nathan Guy today signed what is known as a Government-Industry Agreement at Parliament. The agreement defines where responsibilities and costs will fall in the event of an outbreak of a serious forest pest or disease.

“For 50 years we have had a forest health surveillance scheme that is seen by overseas experts as one of the best in the world. But being ‘best’ is not good enough, we need it to be as near to perfect as we can make it,” says Mr Rhodes. . . 

FMG's photo.

Competition not sufficient to warrant deregulation

November 6, 2015

The Commerce Commission has found there’s not yet enough competition to deregulate the dairy processing industry.

The Commission began its review in June this year at the request of the Minister for Primary Industries as required under the Dairy Industry Restructuring Act 2001 (DIRA).

Deputy Chair Sue Begg said the Commission’s draft finding is that, on balance, there is not sufficient competition at the farm gate and factory gate to consider full deregulation at this time.

“Our primary concern is that competition in the factory gate is very limited. Without the existing regulations, Fonterra would be able to increase the price of raw milk it sells to other domestic processors. This could in turn result in higher retail prices for dairy products in New Zealand,” Ms Begg said.

“While there are signs of competition and growth in the farm gate market, particularly in Canterbury, Southland and Waikato, Fonterra faces little competition as the dominant buyer of raw milk in most regional markets. However, it does not have the ability or incentive to reduce prices to farmers in this market due its co-operative nature and constraints from competitors.”

The Commission also concluded that Fonterra has limited ability and incentive overall to shut competitors out of dairy markets if the regulations were removed.

The Commission’s draft report has outlined options for transitioning to deregulation in the future and resetting the current market share thresholds that prompt a competition review. The recommendations include:
Taking a staged approach to amending the DIRA regulatory regime, beginning with a review of the Raw Milk Regulations with an eye to allowing a factory gate market to develop
Resetting the market share thresholds in both the North and South islands to 30 percent (up from the current 20 percent) as the trigger for a competition review of the dairy industry.
“Our analysis suggests that gradual relaxation of the Raw Milk Regulations may encourage the factory gate market to develop. Full deregulation currently poses a potential risk to domestic competition in goods such as fresh milk and cheese, where independent processors are dependent on regulated access to raw milk from Fonterra. Taking a staged approach to deregulation would mitigate this risk,” Ms Begg said.

“We recognise that any changes to the regime would need to be carefully managed and welcome submissions from interested parties. In particular we want to test the evidence on the likely costs and benefits of deregulation and whether our recommended approach of developing a more competitive factory gate market is appropriate at this time.”

Submissions on it are open until December 4th.

Primary Industries Minister Nathan Guy and Commerce and Consumer Affairs Minister Paul Goldsmith have welcomed the Commerce Commission’s release of a draft report on the state of competition in New Zealand’s dairy industry today.

The report was commissioned by the two Ministers on 2 June 2015 as required under the Dairy Industry Restructuring Act 2001. That Act allowed the formation of Fonterra, and includes provisions to promote contestability in New Zealand’s farm gate and factory gate dairy markets to ensure their efficient operation.

“The Commerce Commission has formed an independent view based on its expertise as New Zealand’s primary competition regulatory agency. On balance, the draft report has found that competition is not sufficient to warrant deregulation at this point,” says Mr Guy.

Submissions on this draft report are open until 4 December 2015. Following a period for cross-submissions, the final report will be released by 1 March 2016.

“I intend to consult on a package of policy proposals in mid-2016, following receipt of the Commerce Commission’s final report.

“The dairy industry is a major part of our economy and this process will be helpful in assessing whether the Act is effectively promoting contestability, and in turn, the efficient operation of our domestic raw milk markets.”

“I would like to thank the Commerce Commission for their work to date, and I encourage all those with an interest in this area to consider the Commissions draft report carefully, and to make a submission if necessary,” Mr Goldsmith says.

The final report will help inform the Government’s policy decisions, in particular, whether or not to allow the default expiry of the pro-competition provisions of the Act in the South Island (the current expiry threshold was met in the South Island in the 2014/15 season).

The draft report is here.

Now that the expiry threshold has been met in the South island I hope that the Minister will allow the default expiry of the pro-competition provisions.

Rural round-up

October 3, 2015

Federated Farmers’ President praises WTO and criticizes those stalling the TPP at Geneva Forum :

The last 20 years of the World Trade Organisation (WTO) have provided an objective framework on which to base our international trade and seen the organisation provide great assistance to small countries like New Zealand.

That was the message from Federated Farmers’ President Dr William Rolleston, Vice President of the World Farmers’ Organisation, in his address overnight to a WTO Public Forum in Geneva.

“New Zealand is a small country, which means our political influence bilaterally can be limited. Without WTO rules, disputes are more likely to be settled on bargaining power rather than the evidence,” said Dr Rolleston. . .

Fossicking in Fonterra’s annual report – Keith Woodford:

The release of Fonterra’s annual report on 24 September coincided for me with a long plane trip back from China. I used the time trying to work out what all the numbers really mean. It was not an easy task.

Fonterra’s annual report – like most reports from large companies –provides masses of numbers. Some are clearly there for public relations purposes. Others are there to meet the required rules of the International Financial Reporting Standards (IFRS). And then there is another set of numbers which Fonterra constructs according to its own rules.

These additional measures are called non-GAAP measures; i.e. ‘non-generally accepted accounting measures’. Fonterra itself acknowledges that these measures are not standard between companies, so comparison must be made with caution. . . 

‘Cloud of dread’ over Filipino workers:

A Filipino worker in the dairy industry says people with false documents are being denied visas and sent home, despite many of them not knowing their paperwork was wrong. 

Immigration New Zealand has confirmed it is investigating multiple work visa applications involving Filipino dairy workers in the South Island, after staff noticed false claims of work experience and qualifications on visa applications.

Roberto Bolanos is a dairy farmer in North Canterbury, who arrived from the Philippines 10 years ago.

Mr Bolanos said the problem started with recruiters in the Philippines who offered people dairy jobs in New Zealand, along with documents, at a cost of, in some cases, $15,000. . . 

Government to consider amending National Bovine TB plan:

An independent Plan Governance Group made up of representatives of funding organisations, OSPRI, and wider stakeholder interests, has reviewed the bovine tuberculosis National Pest Management Plan (TB Plan). Today it gave its final advice on the proposed changes to the TB Plan to the Minister for Primary Industries, Hon Nathan Guy. The changes build on the significant progress made by OSPRI under the current TB Plan.

The Plan Governance Group considered a range of technical and scientific advice, and strongly believes that the eradication of TB from New Zealand is both feasible and economically justifiable. The proposed changes to the TB Plan were consulted on with farmers, local communities, and other stakeholders in June and July this year. Over 400 quality submissions, covering a wide range of issues, were received on the draft Plan proposal, and the Plan Governance Group took them into account as it prepared its final proposal to the Minister. . . 

Rabobank Beef Quarterly Q3 2015: Traded Volumes Are Reaching Quota Limits:

New Zealand and Australia beef exports to the US are set to reach their quota limits in Q4. Meanwhile, global economic conditions—such as the appreciation of the US dollar and the depreciation of the yuan and the real—are having an impact on beef trade, according to the Rabobank Beef Quarterly Q3.

A strong US dollar has led to a reduction in US exports and support for US imports, while a weakening Chinese economy and devaluation of the yuan are curbing beef prices in China, and the devaluation of the real is expected to support Brazilian exports in the coming months. “With little change expected in major beef-trading economies in the coming quarter, other than a possibility of the US FOMC raising interest rates, a strong US currency is expected to continue to affect global beef trade”, according to Angus Gidley-Baird, Senior Animal Protein Analyst at Rabobank. . . 

Commission issues second draft determination on wool scouring assets application:

The Commerce Commission has released a second draft determination maintaining its preliminary view that it should allow Cavalier Wool Holdings (CWH) to acquire New Zealand Wool Services International’s (NZWSI) wool scouring business and assets.

The Commission released its preliminary view on CWH’s application in March 2015 and has since received further information and submissions from interested parties on various matters. The second draft determination has been released to allow interested parties the opportunity to submit on this new information.

Commission Chair Dr Mark Berry said having considered the new information, the Commission is still of the view that the public benefits of the acquisition would outweigh the loss of competition. . . 

Ballance thriving as it plans next 60 years:

Ballance Agri-Nutrients achieved record sales and returned $76 million to shareholders while keeping margins tight and prices affordable, Chairman David Peacocke told the annual meeting of shareholders in Tauranga on Wednesday.

He said the result for its financial year ended 31 May 2015 capped off a milestone year for the co-operative, which celebrated 60 years since the first shares in legacy company Bay of Plenty Fertiliser were issued. Noting the co-operative “not only survives but also thrives”, he said its core value of collective strength remained unchanged while it evolved to meet the current needs of farming.

“What has changed is that farmers are busier, operating over larger properties and working within increasingly tight environmental demands. So along with a secure supply of the right nutrients, we continually broaden our scope to tailor our products, our technology solutions and our advice for today’s farms, and the farms of the future.” . . .

Rural round-up

September 24, 2015

Groser: TPPA not a gold-plated deal – Patrick Smellie:

New Zealand negotiators expect to conclude a Trans-Pacific Partnership Agreement (TPPA) deal with some improved access for dairy exports to the highly protected markets of North America and Japan but it won’t be a “gold-plated deal”, says Trade Minister Tim Groser.

He acknowledged that comments from Prime Minister John Key on Monday, that whatever deal was achieved would be “at least the very best we can do”, had been interpreted as a sign of a poor deal on dairy in the offing.

But Mr Groser told BusinessDesk that New Zealand negotiators weren’t in “capitulation mode”. . . 

No drought-breaker but ‘darn good help‘:

A farmer in the heart of the North Canterbury drought is welcoming the rain currently falling in parts of the region, describing it as a good morale boost for many farmers.

Vince Daly runs a 160 hectare cropping farm in Cheviot. He said the NIWA weather station on his farm showed the soil moisture level on his farm has gone from 32 percent to 37 percent this week so far. Normally it is at 100 percent at this time of year.

Mr Daly said 43 millimetres of rain had fallen but farmers further inland have, so far, not been so lucky. . . 

Aorere Wins NZ RiverPrize:

NZ Landcare Trust’s Aorere River Project won the inaugural Morgan Foundation NZ Riverprize at the International Riversymposium Gala Dinner in Brisbane last night.

Richard Thompson Chair of NZ Landcare Trust’s Board of Trustees said “What a fantastic result for the Trust and the Aorere community. This is an amazing result given the strength of the competition… it really underlines the value of this project and the work carried out by NZ Landcare Trust.”

NZ Landcare Trust CEO Dr Nick Edgar accepted the award on behalf of the Aorere River Initiative. “I think this is a real victory for community-led grassroots river management in New Zealand. Without the Aorere river community, the story really wouldn’t have happened.” . . 

Rural areas feeling agricultural sector slowdown:

Almost a third of businesses in regions see revenues fall

Three quarters of agricultural businesses expect economy to decline

Businesses in New Zealand’s rural areas are already feeling the effects of a significant slowdown for the agricultural sector, according the latest MYOB Business Monitor survey of over 1000 businesses nationwide, which includes over 200 rural SMEs.

Over the last 12 months, just 18 per cent of rurally-based SME operators have seen their revenue rise, compared to the SME average of 31 per cent. Almost a third (32 per cent) have seen revenue decline in the year to August 2015 (25 per cent SME average). . . 

Fonterra director Farrelly replaces Norris on Fund board – Paul McBeth:

(BusinessDesk) – Fonterra Cooperative Group director Ian Farrelly will replace Ralph Norris as one of the dairy exporter’s representatives on the board of the Fonterra Shareholders’ Fund manager.

Farrelly will join the board of the fund’s manager at the close of its annual meeting on Nov.27 when Norris retires, Fonterra said in a statement. Farrelly has been on the board of Fonterra since 2007, having clocked up a 20-year career in banking including 15 years as head of ASB Bank’s rural division. He operates a 400-hectare calf rearing farm in Te Awamutu and has dairy farm interests in Canterbury and Waikato. . .

Lasers: the transformation to come –  Lynley Hargreaves:

Cather Simpson wants every child and parent in New Zealand to know the word photonics – and to consider photonics science or engineering as a career. An Associate Professor at the University of Auckland and Director of the Photon Factory, she’s worked on problems as diverse as robotic surgery and sorting dairy herd sperm by sex. Now as part of the International Year of Light and Light-based Technologies, Associate Professor Simpson is working to give school children, and the general public, a glimpse of the future of laser manufacturing.  . . 

Official start of new PGP lamb programme:

Primary Industries Minister Nathan Guy has welcomed the official start of a new Primary Growth Partnership (PGP) programme involving premium quality lamb products.

“The ‘Targeting New Wealth with High Health’ PGP programme aims to reach existing and emerging markets with a new class of premium lamb products with improved health qualities,” says Mr Guy.

“This is a collaboration between Alliance Group, Headwaters New Zealand and the Ministry for Primary Industries (MPI). It will help our producers tap further into the increasing demand for premium and healthy foods, and add value to our exports. . . 

Rabobank Agribusiness Monthly (NZ) – September 2015:

Rabobank’s Agribusiness Monthly provides timely information and analysis on agricultural conditions, commodity price updates and commentary on the latest sectoral trends and developments.

Key highlights
Agribusiness Monthly

Dairy – Global commodity prices have shown signs of recovery in recent weeks, as international buyers look for short-term cover, given that prices appear to have reached a floor.

Beef – Steady demand from the US continues to fuel farmgate prices, with record levels reached this September (NZD 6.10/kg cwt). Prices have edged up 33% from last year, supported by seasonal tightening of supplies.

Sheepmeat – Farmgate prices have continued to improve into September 2015, with supply tightening heading into lambing season. . . 


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