Rural round-up

November 17, 2016

Quake carnage raises 10m new hill at Clarence River – Tim Cronshaw:

A 10 metre high hill pushed up by the 7.5 earthquake on a previously flat river paddock has left valley farmers along the Clarence River completely flabbergasted.

The hill has appeared from nowhere on farmland along river flats about eight kilometres up the valley.

“It was completely flat and now there is a 30 foot hill in the middle of Priam’s Flat and the whole river has come up,” said Matariki farmer James Murray. “it’s unbelievable and if you hadn’t know what it looked like before you would never notice it.” . . .

Fairlie couple 2016 South Island Farmer of the Year:

A husband-and-wife “super team” has secured the title of the Lincoln University Foundation’s South Island Farmer of the Year at the 2016 finals held tonight (Wednesday 16 November).

Chief Judge Nicky Hyslop says that Neil and Lyn Campbell won the judges’ praise with the “efficient, incredibly flexible and adaptive” approach to the way they have developed their dryland property. Their focus has been on systems that allow them to pursue activities that generate the most profit at the most effective point of time, with land stewardship always the foundation of their decisions.

The Campbells’ farm consists of 769ha of rolling hills and flats in Middle Valley near Fairlie in South Canterbury, producing sheep, deer breeding and finishing, and a variety of crops. . . 

Nattrass eyes another stint on Fonterra board:

Former Fonterra director Stuart Nattrass is making a bid to rejoin the co-op’s board. The South Canterbury farmer has been confirmed as a self-nominated director candidate.

He will face off with the two board-nominated directors Michael Spaans and Donna Smit.  

The self nomination process allowed any Fonterra shareholder (with the support of 35 different shareholders) to put themselves forward as a director candidate and be considered for election by their fellow shareholders alongside the previously announced Independent nomination process candidates. . . 

Fonterra running normally, helping quake-hit farmers – Mark Daniel:

With the South Island earthquake dominating our screens, Rural News Group had the opportunity to catch up with Fonterra’s Director of Farmer services, Matt Bolger at Wednesday’s Farm Focus Day at Owl Farm, Cambridge.

Bolger confirmed that since the seismic event they had been in close contact with their teams on the ground in the area, and could confirm that there were no injuries to Fonterra staff or suppliers.

He also told the largely farmer based audience that all factories in the organisation were running normally, although some had shut down automatically due to aftershocks, but were now all back on line. . . 

Crayfish confused by quake ushered back into the water – Kate Newton:

Disorientated crayfish, thrust out of the ocean onto the Kaikoura coastline, have been slowly ushered back into the water by locals.

Along the Kaikoura coastline, earthquake conversation keeps turning to the native crayfish for which the coast is named.

A horde of escaped crayfish (koura) was a side effect of Monday’s massive 7.8 magnitude shake, according to Ward resident Kerry Snell.

“When we got to the [Burkhart Fish] factory, the crayfish that were ready for the load-out, all the bins had tipped over and there were crayfish crawling everywhere. A couple of hundred. I think it was two tonnes of crayfish, just all crawling around. Disoriented too, as we all were.” . . .

Appeal Court turns down Fonterra’s bid to keep inferior terms for ex-NZDL suppliers – Paul McBeth:

Fonterra Cooperative Group has lost its bid to overturn a High Court ruling against inferior terms offered to the suppliers of the failed New Zealand Dairies Ltd business in South Canterbury. 

The Court of Appeal bench, comprising Justices Tony Randerson, Helen Winkelmann and Brendan Brown, today rejected Fonterra’s application to throw out a ruling that it breached the Dairy Industry Restructuring Act by imposing less favourable terms on farmers who had previously supplied NZDL.  . . .

Sanford’s Move From Volume to Value Helps Boost Profit 152%:

Sanford Limited (NZX:SAN) has today posted a 152% increase in net profit after tax to $34.7m for the year ended 30 September.

The Group posted an 85.5% increase in reported EBIT to $57.7m, with revenue up $13.2m to $463.5m.

Sanford CEO, Volker Kuntzsch said it’s a pleasing result after a year of focus across the business on executing the company’s volume to value strategy. . . 

Sanford annual profit more than doubles on weaker kiwi, cheaper fuel – Paul McBeth:

BusinessDesk) – Sanford, New Zealand’s largest listed fishing group, more than doubled annual profit as a weaker kiwi dollar and cheaper fuel bolstered earnings in the face of a smaller catch, and as year-earlier impairment charges weren’t repeated.

Net profit rose to $34.7 million, or 37.1 cents per share, in the 12 months ended Sept. 30 from $13.8 million, or 14.8 cents, a year earlier, the Auckland-based company said in a statement. Revenue rose 2.9 percent to $463.5 million, even as the volume of its catch shrank 11 percent as the company extracted more from a higher-value catch and a weaker kiwi generated bigger export receipts. . . 

Fonterra Co-operative Group Ltd v McIntyre and Williamson:

PARTNERSHIP AND ORS (CA736/2015)
[2016] NZCA 538
PRESS SUMMARY

This summary is provided to assist in the understanding of the Court’s judgment. It does not comprise part of the reasons for that judgment. The full judgment with reasons is the only authoritative document. The full text of the judgment and reasons can be found at http://www.courtsofnz.govt.nz.

1. The Court of Appeal has today dismissed an appeal brought by Fonterra against a High Court ruling that Fonterra had discriminated against a group of dairy farmers by offering them less favourable terms on which it would purchase their milk.

2. The respondents are South Island dairy farmers who were contracted to supply milk to New Zealand Dairies Ltd (NZDL) when it went into receivership in May 2012.

Fonterra successfully tendered to purchase NZDL’s plant in Studholme. As part of the deal, NZDL’s suppliers agreed to switch to selling their milk to Fonterra. . . 

Good news for wine and spirit industries:

Commerce and Consumer Affairs Minister Paul Goldsmith has welcomed the passing of a bill which will enable New Zealand wine and spirit makers to register the geographical origins of their products.

“The value of our wine exports has now reached $1.6 billion. We must jealously guard the reputation of New Zealand wines if we are to continue growing our wine exports,” says Mr Goldsmith.

The Bill amends the Geographical Indications (Wines and Spirits) Registration Act (the Act) to ensure the process for registering geographical indicators runs smoothly. . . 

Largest robotic farm taking shape:

A 6500-head dairy farm in Chile will become the world’s largest robotic dairy after signing an agreement to install 64 DeLaval VMS milking robots.

The farm, owned by AgrÌcola Ancali and part of the Bethia Group, already has 16 DeLaval VMS installed and averages 45.2 litres for the 920 cows going through the robotic milking system.  

Ancali AgrÌcola chief executive, Pedro Heller, says the expansion follows good results from first stage of the robotic dairy. . . 


Rural round-up

October 20, 2016

43 jobs axed at Mossburn works – Simon Hartley:

Silver Fern Farms has axed more 43 Mossburn meatworkers’ jobs as it rationalises killing shed numbers across the country.

While the closure is vaunted as an ”opportunity” for Silver Fern Farms, the Northern Southland job losses will gut the micro-economy of Mossburn, with its population of barely 200.

The new killing season at Mossburn was just about to start; now, plant decommissioning will start next month. . .

Devastating news for small town – Tracey Roxburgh:

The Deer Capital of New Zealand received a body blow yesterday when news broke of Silver Fern Farms’ plans to close its venison plant.

The mood in Mossburn yesterday afternoon was sombre and while no-one spoken to by the Otago Daily Times seemed surprised by the proposed closure of the plant, which employs 43 staff, all agreed it was devastating for the small town.

Silver Fern Farms announced in a statement it was consulting staff at its South Island Mossburn venison plant and at its North Island Wairoa mutton processing plant, on ”options for closing the two small sites”. . .

Silver lining in overseas efforts to ditch meat diet:

Meat exporters are unfazed by a campaign to shift the world away from meat to plant protein.

A group of 40 investment companies, managing about $1.8 trillion in assets, have launched a campaign to encourage 16 major companies including WalMart, Unilever, Nestle, Kraft Heinz, and Tesco, to change the way they source protein for their products, in an effort to reduce environmental and health risks.

The investment companies, brought together by the Farm Animal Investment Risk & Return (FAIRR) Initiative, have warned about the impact of meat production on the planet.

“The world’s over reliance on factory farmed livestock to feed the growing global demand for protein is a recipe for a financial, social and environmental crisis,” said Jeremy Coller, founder of the FAIRR Initiative and chief information officer of Coller Capital, one of the investment firms involved in the campaign. . . 

New Zealand King Salmon Lists on NZX & ASX

Aquaculture – a “healthy” portfolio ingredient

Salmon is on the menu at both the NZX Main Board (NZX) and the ASX with the listing today (19 October) of the world’s largest aquaculture producer of King salmon.

The initial public offer (“IPO”) for Nelson / Marlborough-based New Zealand King Salmon was for 69.2 million ordinary shares, quoted under the ticker NZK.

With the government supporting well-planned and sustainable aquaculture growth, New Zealand King Salmon sought $30.0 million in new capital to repay debt, and to fund future investment and working capital.

As a result of the fully subscribed IPO, and based on the $1.12 price per share, the company’s market capitalisation is $154.5 million, excluding certain shares offered under an employee share ownership plan. . . 

The reds have it in South Island Farmer of the Year finals

Three red meat producers and a Central Otago wine business will be up against each other for the finals of the Lincoln University Foundation 2016 South Island Farmer of the Year at Lincoln University on November 16.

The four finalists are:

James Dicey, a viticulturist and owner of Grape Vision Limited based in Bannockburn, Central Otago.

Lauren and Geoff Shaw, sheep and beef farmers in Central Otago, near Ranfurly.

Lyn and Neil Campbell, Campbell Farms, Middle Valley, near Fairlie in South Canterbury farming sheep, beef, bulls and deer, and arable crops.

Simon Lee, Manager Mendip Hills Station, Parnassus, North Canterbury, farming sheep, beef and deer.

Foundation Chair Ben Todhunter says he’s looking forward to a great finals night on November 16. . . 

When it comes time to hang up the gumboots:

With the average age of New Zealand farmers pushing 60, and land values on a steady increase, it’s no surprise succession planning is currently top-of-mind for the agricultural industry.

In fact, leading commentators see private farm succession as the single biggest challenge for the industry to overcome during the next decade.

Dairy Women’s Network and its partners ASB and Crowe Horwath are coming together to offer support to farmers around this daunting and extremely personal, but important issue, over the next few months.

The partners will be delivering free succession planning workshops across the country, over the next six months. . . 

Timber industry upbeat despite challenges:

“Challenges facing the NZ timber industry are real and significant but the industry is generally in a good demand cycle and sentiment is positive” says New Zealand Timber Industry Federation (NZTIF) president, John McVicar.

“Domestic demand for timber is very strong at the moment” he said.

“However the upside was tempered with a number of very real challenges facing the industry.” . . 

Commission releases draft report on Fonterra’s 2016/17 Milk Price Manual:

The Commerce Commission today released its draft report on its annual statutory review of Fonterra’s Milk Price Manual for the 2016/17 dairy season. The Commission’s draft finding is that the 2016/17 Manual is largely consistent with the purpose of the milk price monitoring regime under the Dairy Industry Restructuring Act 2001 (the Act).

Deputy Chair Sue Begg noted that most of the Manual remains unchanged.

“The most significant amendment introduced this year is the inclusion of Fonterra’s sales outside the GlobalDairyTrade auction platform for whole milk powder, skim milk powder and butter milk powder. This shift could result in an increase in the milk price for the 2016/17 season of five cents per kilogram of milk solids,” Ms Begg said. . . 

Fonterra Receives Awards for Tanker Safety:

Fonterra’s GM Transport and Logistics Barry McColl has been named Road Risk Manager of the Year at the Australasian Fleet Safety Awards.

The award recognises his role in maintaining the safety of more than 1,600 drivers in 500 tankers travelling more than 90 million kilometres a year.

Fonterra Director New Zealand Manufacturing Mark Leslie said the award is a great tribute to the outstanding work of Mr McColl and his team. . . 

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Rural round-up

February 2, 2013

Low prices worry sheep farmers – Gerald Piddock:

Sheep prices rather than feed issues is the major cause for concern for South Canterbury sheep farmers midway through the 2012-2013 season.

Feed levels were good because of the periodic rain throughout the summer. While that was a positive, the returns farmers were receiving for their sheep was a big pill that was hard to swallow, South Canterbury Federated Farmers meat and fibre chairman Neil Campbell said.

“At least we’re not having to sell stock on a depressed store market,” he said. . .

Farmers fume at silence on power line route – Chris Gardner:

Waipa Networks is facing a backlash from angry landowners over its refusal to reveal where it plans to build a 110kv power line, which will cross three Waikato districts.

 Ray Milner, chief executive of the Te Awamutu-based network provider, refused to detail exactly where the company wants to erect the $20 million line when he spoke at Otorohanga District Council yesterday despite being told of landowners’ frustrations.

The line will start near Fonterra’s dairy factory on the outskirts of Te Awamutu and end near the Hangatiki intersection near Waitomo village. The distance by road is approximately 40km. . .

Farming lobby group denies organising geese cull – Paul Gorman:

Federated Farmers is distancing itself from last year’s bloody Lake Ellesmere cull in which Canada geese were bludgeoned to death with clubs and baseball bats.

Rotting carcasses were left floating in the lake after the controversial cull, raising fears of waterway pollution.

Federated Farmers high-country regional policy adviser Bob Douglas said this week that the organisation was not planning further culls of the pest bird.

Instead, it was working with people badly affected by the geese on their land to find a better solution. . .

Experts dump on dung beetle – Richard Rennie:

LEADING scientists and health experts believe there are major risks if dung beetles are released in New Zealand.

The beetles are in caged field trials in Northland after approval was granted by the Environmental Risk Management Authority (ERMA) for 11 species to be imported.

ERMA has since been disbanded and the Environmental Protection Authority (EPA) has taken over its role.

Championed by Landcare, the beetles are intended to assist rapid breakdown of animal waste, help reduce fly infestations resulting from dung presence, and possibly reduce the need for drench use. . .

Wheels may come off rural delivery – Richard Rennie

THE viability of rural mail contractors will be threatened if NZ Post pushes delivery services to only three times a week.

The state-owned enterprise is seeking to adjust the 1998 deed of understanding it has with the government on delivery conditions for standard letters and postal outlet services.

 NZ Post’s proposal document acknowledges rural New Zealand will be most affected by changes, particularly rural delivery contractors.

 One adjustment option the SOE has is to reduce mail services to three days a week . . .

High Value Harvest Underway:

New Zealand’s annual seed harvest is about to hit overdrive, and if last year’s official trade figures are any indication, there’s a surprising amount of money riding on the next few weeks.

Vegetable and forage seed exports were worth NZ$168million for the year ended 31 December 2012, up from NZ$138million the previous year, reports Statistics New Zealand.

Seed industry leaders have welcomed the result, especially considering the exchange rate, and are now eyeing up ways to grow the trade further while maintaining the rigorous standards that position New Zealand at the top end of a large, competitive global market. . .

Rabobank supports red meat sector collaboration program for greater farmer profitability:

Agricultural banking specialist Rabobank has welcomed the newly-announced red meat sector collaboration between industry and government to enhance the long-term profitability of New Zealand’s beef and lamb industries.

Rabobank New Zealand CEO Ben Russell said the bank was pleased to confirm its support as a participant in the proposed program. Rabobank notes the program is reliant on the forthcoming vote by farmers on Beef and Lamb New Zealand’s contribution. . .

Thorn Park Provides Highlights on Karaka Select Sale Day 2:

The momentum has continued right throughout Day 2 of New Zealand Bloodstock’s 2013 Select Yearling Sale today, with buyers reporting tough competition ringside.

By the close of play, 285 of the 611 Select Sale lots had sold for $12,809,000, with the average currently at $44,944 with the clearance rate strengthening slightly to 70%.

The top price was provided early in the day by Lot 707, the Thorn Park colt from Windsor Park Stud that was purchased for $140,000 by NZB as agent. The second foal of the Montjeu mare Kashira, he is from the family of dual Group 1 winners Military Plume and Monaco Consul.

Thorn Park colt Lot 718 fetched the second top price of the day. . .

Judging Underway in 2013 Dairy Awards:

Judging gets underway this week in the 2013 New Zealand Dairy Industry Awards.

National convenor Chris Keeping says the judges will begin the process to determine the 2013 New Zealand Sharemilker/Equity Farmer of the Year, New Zealand Farm Manager of the Year and New Zealand Dairy Trainee of the Year winners.

All entrants participate in the judging process that will select the 34 regional winners in the 12 regional competitions.

“Entrants had been invited to attend information evenings during the past couple of weeks to give them a bit of an idea of what to expect when judges visit on their farms – in the case of sharemilker/equity farmer and farm manager entrants – and what is expected of them. . .

Self-sufficient dairy farm placed on the market:

A well developed dairy farm on the north-east coast of the South Island has been placed on the market for sale.

The 187 hectare Mahunga Farm, 23 kilometres south of Kaikoura, is being marketed by Bayleys Real Estate as an attractive investment to an entry-level dairy farmer, or a group looking for a low-cost and low-output farm to draw healthy profits from. It is flat and well equipped with quality infrastructure. This farm has a sale price of $4.2million (plus GST if any).

Bayleys Canterbury salesperson Ruth Hodges said the current owners invested in Mahunga Farm with a long-term view – focusing on improving pasture quality and developing the farm into a low-input, profitable operation. . .


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