Rural round-up

December 22, 2015

Federated Farmers praises farmers on Lake Brunner improvement:

Federated Farmers is praising the efforts of local farmers in improving the water quality of the West Coasts largest river, Lake Brunner.

Years of hard work by the Lake Brunner farming community has resulted in the water quality target, set out by the government, being reached five years ahead of schedule.

“The early achievement of the target is a great example of how we can reverse deteriorating water quality when farmers work together to reach a shared objective,” says Federated Farmers West Coast President Katie Milne. . . 

Curse of the Christmas tree – Lachlan Forsyth:

It’s arguably the biggest pest in New Zealand, but one of the least known.

Pinus contorta, otherwise known as wilding pine, may look like a lovely Christmas tree, but it is a vicious weed which is strangling the life out of our forests.

It has already infested seven percent of the country – 1.7 million hectares.

Left unchecked, it’ll infest 20 percent of New Zealand within two decades.

Not to be confused with pinus radiate, the common tree in forestry blocks, pinus contorta is a nasty, twisting tree, and it is rampant. . . 

Rabobank Global Beef Quarterly Q4: Ongoing Tight Supply to Support Prices:

Tight supply will support prices in 2016 as demand is expected to remain firm even though supply pressure is easing. China and the US will be the main import markets to watch in 2016—in particular the strength of demand, given high prices. According to Rabobank’s Global Beef Quarterly Q4 2015 report, Australia, Brazil, India and the US will be the main exporters to watch—in particular the supply of cattle and beef, in response to rebuilding pressures at different points in the cycle.

China continues to play a critical role in the global beef market despite a slowing economy. Although the domestic market has been volatile due to the impact of the grey channel, it will continue to offer sustainable opportunities for the rest of the world. . . 

NZ lamb exports likely to drop this season amid weak demand in China, UK – Tina Morrison:

(BusinessDesk) – New Zealand farmers are heading for lower returns for their lambs this season amid weakness in the country’s two largest export markets in China and the UK.

While prices for the first of the new season lambs processed in October and November for the UK Christmas chilled market were similar to last year, that won’t be enough to offset weakness in the broader market as the season cranks up to its peak production period from now through till May, according to AgriHQ senior analyst Nick Handley. . . 

1080 report shows poison being used responsibly:

The latest report by the Environmental Protection Authority on the use of 1080 in New Zealand provides further reassurance to the public that the poison is safe and is being used responsibly, Environment Minister Dr Nick Smith says.

“1080 is a vital tool in protecting our native wildlife, like Kiwi, and preventing the spread of bovine tuberculosis. The area of land treated has doubled to almost one million hectares because of the “Battle for our Birds” but with very few incidents. This is a huge credit to the professionalism of the Department of Conservation (DOC) and TBFree New Zealand. . . 

Landcorp inks agreement with iwi for Sweetwater farm in Northland – Tina Morrison:

(BusinessDesk) – Landcorp Farming, New Zealand’s largest corporate farmer, will continue to be involved in the management of Northland farm Sweetwater after iwi take ownership of the property under a Treaty of Waitangi settlement.

Northland iwi Te Rarawa and Ngai Takoto will take ownership of the 2,480 hectare property near Kaitaia tomorrow, as part of a 2010 settlement. Landcorp, which has been managing Sweetwater in consultation with the iwi, will continue to provide farm management expertise, livestock and technology under a new joint-management and profit-sharing arrangement, the Wellington-based state-owned enterprise said in a statement. . . 

HBRIC Ltd Update:

Hawke’s Bay Regional Investment Company Ltd (HBRIC Ltd) is confident it can confirm a preferred investor mix for the Ruataniwha Water Storage Scheme before the end of the year.

HBRIC Ltd told today’s Hawke’s Bay Regional Council meeting that intensive work is being done with three potential investors and it continues to target the end of the calendar year to confirm investors for the scheme. However it says it won’t make the decision public until very early in the New Year. . . 

Kaingaroa Timberlands profit rescued by foreign exchange gain as log prices fall – Sophie Boot:

(BusinessDesk) – Kaingaroa Timberlands, the nation’s biggest forestry business, posted a 37 percent gain in full-year profit as a foreign exchange gain more than made up for a drop in international log prices.

Net profit rose to US$332.8 million in the year ended June 30, from US$243.7 million a year earlier, according to the company’s financial statements. Profit included a US$281 million gain on foreign exchange movements, compared to a year-earlier charge of US$149.7 million. Revenue fell 22 percent to US$355.2 million, of which the bulk came in reduced log sales. . . 

Rural and Southern businesses best place for work life balance:

If you are planning to start a new business in the New Year and still want to have some time to enjoy the best of the Kiwi lifestyle, it could be worth thinking about moving to the country or heading down South.

According to the latest MYOB SME research, a net 54 per cent* of business operators working in rural New Zealand are satisfied with their work/life balance, while only 45 per cent of those working in the city are happy with how they split their time between work and leisure. . . 


Rural round-up

January 12, 2014

Getting red meat sector ‘back on its feet’ – Sally Rae:

Over the fence and across the kitchen table, the state of the red meat sector and calls for restructuring dominated farmer discussions last year, as sheep numbers continued to shrink and dairy conversions and moves to dairy grazing continued.

Back in March, Beef and Lamb New Zealand chairman Mike Petersen told farmers attending the organisation’s annual meeting in Wanaka that the sector was at a ”critical junction”.

While he spoke of how volatile returns were a threat to the industry’s future and farmers were questioning whether the industry had a future, the organisation’s economic service estimated farm profit before tax for the 2012-13 season would fall 54% on the previous season because of sharply lower lamb prices and widespread drought. . . .

World food prices dropped last year – Neena Rai:

World food prices fell by 1.6% in 2013, down 8.8% from their all-time peak in 2011, driven by falling international prices for grains, sugar and palm oil, according to the United Nations’s Rome-based Food and Agriculture Organization Thursday.

The Food and Agriculture Organization’s monthly index measures the monthly change in international prices of a basket of food commodities and is the global leading economic indicator for food prices.

While the most recent food price spike in 2011 was triggered by a lack of cereal supply, the recent fall in food prices is mainly due to higher expected supplies of corn and wheat this year. . .

Shelter from the storm – Sally Rae:

Mustering huts still play an important role on some high country properties, like the Hore family’s Stonehenge, in Maniototo, but hut life is a little more comfortable these days, as Sally Rae reports.

It was April, 1959 when Dave McAtamney first slept in Deep Creek Hut.

At only 15, it was his first mustering trip in the area and he was ”dead keen” to take part.

Riding an old part-draught mare called Ginger, he was part of a much more experienced mustering crew that included his father and two uncles, and it was the start of a long association with the hut.

”I had quite a bad cold, if I remember rightly. I was coughing a bit in the night and Dad got out of bed, went over to the whisky bottle and poured a big whisky into me. It was the first time I’d ever drunk a whisky.” . . .

Good times ahead – Stephen Bell:

Sentiment in the primary industries is at an all-time high and commentators say the optimism is backed up by reality.

Business confidence across the economy is booming, say bank analysts, who add the caveat a surge in activity means a tight lid will have to be kept on inflation.

However, companies are upbeat and their profit expectations and employment intentions are the highest in two decades, confidence surveys show.

Agrifax senior analyst Nick Handley said there was good cause for optimism in agriculture.

“The outlook is good across all the major sectors, with none of them really staring down the barrel of a below-par year,” he said. . .

Beaumont rising: developments look set to turn fortunes – John Gibb:

Once a fading rural backwater, the township of Beaumont now seems destined for a much brighter future.

People who have lived near the inland Otago township, on the Clutha River/Mata-au, for 20 years or more will remember earlier sometimes divisive and frustrating conflicts over proposed big hydro-electric dams, which would have flooded the area.

One proposal, by the Electricity Corporation of New Zealand (ECNZ) in 1992, was to build a dam at Tuapeka Mouth that would have flooded 3000ha, including all of Beaumont. But among a series of more promising developments the long-delayed replacement work involving the nearby 19th century Beaumont Bridge is at last due to start next year. . .

Positive results at Point Pearce – Gregor Heard:

A JOINT venture between the Point Pearce indigenous community on the Yorke Peninsula in SA and a local farming family continues to go from strength to strength and provide strong training and employment opportunities for the community.The project, in which the Wundersitz family leases the Point Pearce farm, has been running since 2010.The Wundersitzes, based at nearby Maitland, were looking to expand their farming business, Anna Binna, when the Aboriginal Lands Trust advertised for a new tenant for the Point Pearce farm. . . .

Farmers need more for flat milk supply:

The Western Australian dairy industry is calling for reform to the state’s milk pricing structure in 2014.

Representative body WA Farmers argues that if the state’s dairy processors require a year-round flat supply of milk from producers, they should be expected to pay accordingly.

“Ideally, the processors would like about the same amount of milk rolling in each day. Because we are basically a drinking milk state, the daily requirement for WA is pretty even,” says WA Farmers dairy section president, Phil Depiazzi.

“If they do want flat supply, that means they’re going to have to pay a higher price to achieve that.” . . .

Where will you build your next dairy? – Catherine Merlo:

Milk prices aren’t the prime attraction for moving to a new area

The heartland between the Rockies and the Mississippi River appears to offer the most dairy-friendly resources and long-term future for those looking to build new or satellite dairies.

That was not only the professional assessment of a dairy relocation consultant but the personal experience of three dairy producers who spoke at the Dairy Today Elite Producer Business Conference in Las Vegas this past November.

Dairy relocation consultant Tom Haren and dairy producers Linda Hodorff, Rein Landman and Mike McCarty comprised a panel that discussed, “Where Will You Build Your Next Dairy?” . . .


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