Rural round-up

February 6, 2020

Significant risks highlighted in ETS reform bill:

Federated Farmers, Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA) today warned the Government’s proposed reforms to the Emissions Trading Scheme risk accelerating the conversion of productive pasture land into forestry.

The lack of any restriction on how much carbon dioxide can be offset using forestry carbon credits and the lack of any robust analysis of socio-economic impacts of the Climate Change Response (Emissions Trading Reform) Amendment Bill will have major unintended consequences for farmers and regional New Zealand.

All three organisations have expressed concerns about the Bill in submissions to the Environment select committee. . .

Foreign funds talk to farmers – Nigel Stirling:

As many as 10 foreign funds are talking to large-scale farmers about refinancing loans the big banks want rid of, farm debt adviser Scott Wishart says.

Sydney-based Merricks Capital was the first foreign investment fund to break ranks with a $140m refinancing of dairy farmer Van Leeuwen Group in December.

The money manager said it is targeting $2 billion out of $10b in farming loans it believes the Australian-owned banks want off their balance sheets in the next five years.

After years of strong lending growth the Australian banks are reassessing their involvement in the New Zealand market after the Reserve Bank doubled the amount of capital they must hold against their loans. . . 

Cereal crops deluged:

Chris Dillon was 10 days away from harvesting 280ha of cereal crops when the Mataura River burst its banks and flooded his Ardlussa farm north of Gore on Tuesday.

He estimates about 1000ha of cereal crops on eight farms beside the river are under water,

His wheat, barley and peas were exceptional this year.

Provided the water drops quickly he can salvage some crop while insurance will cover a percentage of the production cost of the wheat only. . . 

New Zealand wine exports soar :

In 2019 there was an 8% increase in New Zealand wine exports, with total export value now reaching a record $1.86 billion according to New Zealand Winegrowers.

The USA continues to be New Zealand wine’s largest market with nearly $600 million in exports.

The non-stop increase in international demand is testament to the premium reputation of New Zealand wine, especially in its major markets where the country remains either the highest or second highest priced wine category in the USA, UK, and Canada. . . 

Consortium led by Lynker Analytics awarded government contract to identify New Zealand forest loss using Artificial Intelligence:

Wellington technology start-up Lynker Analytics has been selected by the Ministry for the Environment (the Ministry) to lead a consortium including UAV Mapping NZ and Carbon Forest Services to inventory the extent of forest loss in New Zealand during 2017 and 2018.

Each year 40,000 – 50,000 hectares of forest is harvested in New Zealand as part of normal forestry land use activity. Most of this forest area is replanted, however a small but significant area is deforested and converted to another land use. Deforestation is an important form of land-use change from a greenhouse gas perspective. The Ministry assesses deforestation in New Zealand every two years to meet international reporting obligations under the United Nations Framework Convention on Climate Change and the Kyoto Protocol. . .

Presbyterian Support Central funds support farming students, youth camps and community events

Presbyterian Support Central has distributed more than $170,000 from its Ann Sinclair Trust and James Gibb Fund this year.

Ann Sinclair Trust

Administered by Presbyterian Support Central, the Ann Sinclair Trust provides financial assistance to farming, agriculture, horticulture, orcharding and animal husbandry students. . .


Rural round-up

January 28, 2020

Farmers face ‘catastrophic’ costs in coming years, despite all sectors performing well – Bonnie Flaws:

Farmer morale is low, despite record highs for commodity prices last year, farmers say.

Lamb, beef, forestry and fruit all saw record prices in 2019, and 2020 got off to a good start with milk prices up 2.8 per cent.

But the sheer amount of challenges “coming down the line”, from regulation like the zero carbon bill and freshwater management policies, to restricted lending from banks has resulted in low farmer confidence and morale, Canterbury dairy farmer Jessie Chan-Dorman said.

“Yes, it’s a really good milk price, but most of us will be paying down debt and consolidating. There won’t be the growth we’ve seen in previous years.” . . 

Drought conditions on the horizon with pockets of extremely dry weather in Waikato – Sharnae Hope:

The country’s biggest dairy region is facing the first signs of a “green drought” after a spell of limited rain for the last couple of weeks.

With summer weather finally in full force temperatures are expected to rise and soil moisture levels plummet throughout Waikato and Northland, NIWA say.

While much of the region still has green paddocks, Northern Waikato and Coromandel/Peninsula have entered very dry to extremely dry conditions.

Waikato Federated Farmers president Andrew McGiven said it’s not unusual for this time of year, but if it continues into late February farmers will be concerned. . . 

Hailes a meat man to the bone – Neal Wallace:

Danny Hailes has had plenty of variety in his 27-year career with Alliance but it now reaches a new level with his elevation to livestock and shareholder services manager. He talks to Neal Wallace.

WHEN Danny Hailes looks back over his meat industry career he quotes one statistic he says reveals much about the capability of New Zealand sheep and beef farmers.

In 2004 Hailes managed the company’s newly bought and renovated Dannevirke plant where the average weight of lambs processed that season was 15.5kg.

Seven years later in his last year managing the Pukeuri plant north of Oamaru the average weight of lambs processed was over 18kg. . . 

2020 the year of ‘New-Gen’ ag – Dr Jacqueline Rowarth:

Could 2020 be the year of New Zealand ‘generative agriculture’? 

A new thought for the New Year – New Zealand ‘generative agriculture’… or New-gen, for short.

New-gen captures New Zealand’s approach to the soil-plant-animal-environment continuum that makes up agriculture: animals have been moved in herds or flocks around the farm or station, enabling them to graze the pasture at its optimum quantity and quality and return dung and urine to the soil in situ. Earthworms have been introduced to enhance organic matter incorporation into the soil and water has been applied in some areas to overcome drought. The result is that organic matter has been maintained or increased.

Efficiencies developed over the past 100 years have been based on science, informed by research, and honed by farmers. . . 

Rabobank climbs rural loans ladder – Nigel Stirling:

Rabobank has leapfrogged ASB to become the country’s third largest rural lender in yet another sign the Australian banks are backing off lending to farmers.

The Dutch bank had $10.7b on loan to farmers at the end of September, behind ANZ with $17.4b and the BNZ with $14.1b, official figures show.

ASB, which is culling jobs at its rural lending division as it sets itself for a slow-down in lending growth, slipped to fourth place with $10.6b of rural loans. Westpac rounded out the top five with loans of $8.6b.

The switch in rankings follows a strong period of lending growth for Rabobank at the same time as three of the four Australian-owned banks throttled back their lending to the sector. . . 

Veganism may not save the world but healthier animals could – Jeff Simmons:

At this month’s Golden Globes, the meal got almost as much attention as the movies with award-winner Joaquin Phoenix and other celebrities touting veganism as a path to saving the planet. The event’s meatless menu created a lot of buzz and critics gave the effort mixed reviews.

I’m a big proponent of reducing our impact on the environment and I applaud people who want to be part of real change. We face big challenges and it will take all of us working together. If there’s one thing I can absolutely agree with Joaquin on, it’s that we should be talking about animals and their impact on our world. But his storyline is missing the bigger picture. Let’s make sure the facts don’t hit the cutting room floor.  . . 

 


Rural round-up

September 14, 2019

Farmers feeling victimised by current government:

Farmers feel they are being dragged through the mud as continued environmental regulations are imposed on the sector.

An open letter has been sent to the Prime Minister this week asking for more consideration for the rural industry.

The letter says the Government’s approach to environmental policy is undermining the mental health and well-being of the pastoral sector . .

Govt freshwater proposals a blunt instrument for complex water problems:

The meat industry says the Government’s freshwater proposals represent a blunt instrument for complex water problems.

Meat Industry Association chief executive Tim Ritchie said they generally welcomed the proposal for processing plants to have a Risk Management Plan for wastewater discharges into waterways.

“Under resource consent requirements, processing sites already have similar plans in place.” . . 

Foreign buyers circle dairy debt – Nigel Stirling:

Foreign hedge funds have approached the country’s largest rural lender about buying dairy loans the bank wants off its books.

It is understood a large international investment bank has flown in to sound out industry consultants on the potential for buying assets from the big banks, including loans to dairy farmers.

The international interest comes as the Australian-owned banks review their New Zealand operations in light of proposals from the Reserve Bank to significantly increase the amount of capital they must hold against their loans.

Feds plead for rates fairness – Hugh Stringleman:

Rating for revenue gathering by councils based on the salable value of farms is not a true assessment of ability to pay, Federated Farmers president Katie Milne says.

“It is a bit like assessing someone’s wealth on the basis of the car they drive,” she said in a forward to Federated Farmers Platform on the 2019 local government elections.

The federation makes no apology for focusing heavily on the cost of local government and how that cost is recovered. . . 

There are 600 jobseekers in Wairoa. Its major employer Affco meatworks wants to hire immigrants :

A leading Wairoa youth advocate hopes the town’s major employer will never have to use imported labour despite lodging an application with Immigration New Zealand for approval to hire overseas workers.

The application has been lodged by Affco Talley, current operators of a plant that has a history in the town dating back 103 years and employs hundreds of workers each year.

It’s opposed by the New Zealand Meatworkers Union, but Wairoa Young Achievers Trust youth service manager Denise Eaglesome-Karekare, who is also the town’s deputy mayor, has a goal to make sure any shortfall in the available labour force is still able to be filled by those in the town. . .

Vegan activists are tormenting farmers into quitting – Tim Blair:

Farms run as much on trust as they run on sweat, long hours and hard work.

By nature accessible and open, farms are not easily secured against destructive forces. That’s where the trust comes in. Farmers trust us not to damage their properties and livelihoods, and in exchange they feed and clothe us.

It’s a win-win social pact. Or at least it was, until the recent rise of militant veganism.

Victorian Farmers Federation president David Jochinke last month described the torment caused by vegan and animal liberationist farm invasions. . .


Rural round-up

August 21, 2019

Output record delights new manager – Sally Rae:

Alliance Group recently marked the 2019 season at its Mataura plant in Southland by breaking a beef processing record. Business and Rural Editor Sally Rae talks to plant manager Melonie Nagel about breaking records — and life in New Zealand.

When cattle beast number 150,216 went through the Mataura plant last week, a photograph was taken to record the occasion.

The vibe in the factory – having beaten the previous record by more than 8000 – was “wonderful”, plant manager Melonie Nagel said.

It was an opportunity for staff to gather and also recognition that without a team effort – involving both Mataura employees and the farmers supplying the stock – it never would have happened, Ms Nagel said. . .

Banks want farm billions back – Nigel Stirling:

Floating farm mortgage rates and some fixed rates fell after the Reserve Bank slashed the Official Cash Rate but not all farmers are benefiting.

The country’s largest rural lender, ANZ, said it will cut its agri variable base rate by 40 basis points from today and its fixed base rates by between 20 and 30 basis points.

Other banks also signalled cuts to rural lending rates after the Reserve Bank moved to head off a slowing economy by lopping 50 basis points off the benchmark interest rate to a record low 1%. . .

Farmers furious at Australian animal rights activists publishing addresses and location on map – Gerald Piddock:

Federated Farmers are furious that an Australian animal rights group have begun listing descriptions and addresses of Southland farms on a website map, claiming it could encourage illegal activity by activists on farms.

The map, created by activist group Aussie Farms lists 150-200 farms, both drystock and dairy across the Southland region.

National president Katie Milne said it was hugely worrying that it could be the start of a more extreme form of animal activism in New Zealand, which in Australia and Europe had seen people break into farms, releasing and stealing stock and chain themselves to farm machinery. . . 

Making a difference:

John Ladley will go down in history as the person who took a broken Doug Avery to that life-changing lucerne workshop where he first met Professor Derrick Moot.

Over the years, John has watched with interest – and immense satisfaction – as Doug has transformed his business and life, raised awareness of mental health issues in rural communities and written a best-selling book.

“It has made me very aware of the influence you can have on one person’s life.”

For John, helping others become the best version of themselves is what gets him out of bed in the morning and as B+LNZ’s South Island General Manager, John sums his job up in just three words – “it’s all about people.” . .

Dairy product prices for manufacturers up 8.7 percent :

Prices received by manufacturers of butter, cheese, and milk powder rose 8.7 percent in the June 2019 quarter compared with the March 2019 quarter, after falls in the previous two quarters, Stats NZ said today.

Dairy product manufacturers received higher prices for products such as butter, cheese, and milk powder in the June 2019 quarter. Together, output prices for this group of products increased 8.7 percent from the previous quarter, the biggest rise in over two years. Prices rose by 16 percent in the March 2017 quarter. . . 

Cultured lab meat may make climate change worse – Matt McGrath:

Growing meat in the laboratory may do more damage to the climate in the long run than meat from cattle, say scientists.

Researchers are looking for alternatives to traditional meat because farming animals is helping to drive up global temperatures.

However, meat grown in the lab may make matters worse in some circumstances.

Researchers say it depends on how the energy to make the lab meat is produced. . . 


Rural round-up

July 5, 2019

User-pays emphasis in productivity report is spot on, Federated Farmers says:

The Productivity Commission’s report on local government funding is another step in a very long journey to genuine equity for farmer ratepayers, Federated Farmers says.

“To cover costs of council services, we value the emphasis in this draft report on the principle that who benefits should pay a fair amount, and that the legislative framework be changed to back this principle,” Federated Farmers local government spokesperson Andrew Maclean says.

“We agree this ‘benefit principle’ should be the primary basis for deciding cost allocations.

“Paying huge amounts of money for council services distant from farms is a key problem. Farmers need this resolved and we see potential in this report to achieve fairness,” Maclean said. . .

It’s not weak to speak – Luke Chivers:

Farmers are by nature independent, optimistic, proud, resilient and strong. But the perfect storm of terrible weather, prolonged market weakness, global trade wars and more is driving some farmers to breaking point. Luke Chivers spoke to a dairying couple whose change in perspective has transformed their farm, their family and their community. 

It was a warm, sunny afternoon in Takaka in Golden Bay. 

As daylight beamed through a window only to hit the back of a curtain Wayne Langford found himself bedridden in a cool, dark room. He had been flat on his back every afternoon for more than a week to escape his constant mental anguish. 

But this day was different.

“I had like an out-of-body experience.

“It was as though I was hovering above myself looking down and saying ‘what the hell are you doing in bed?” . . .

NZ questions US farm subsidies – Nigel Stirling:

New Zealand is among a handful of World Trade Organisation members pushing the United States to come clean over billions of dollars paid to its farmers as compensation for the trade war with China.

In May US President Donald Trump announced a further US$16b in payments to follow US$12b in aid dispensed in July last year.

American farmers have borne the brunt of retaliatory tariffs on US exports to China. . .

Rural contractors worried about spreading Mycoplasma bovis – Tim Newman:

Rural contractors have expressed their fears about unwittingly spreading Mycoplasma bovis between farms. 

The issue came up during a panel discussion on M bovis and biosecurity at the Rural Contractors New Zealand national conference in Nelson on Thursday. 

The Ministry for Primary Industries (MPI) admitted farmer privacy issues made the situation challenging for contractors but the chance of them spreading the disease further was low.   . .

Fonterra tries again in India, launches ‘Dreamery’ yoghurt and milks — Anuja Nadkarni:

Fonterra has launched a range of four products in India under the brand Dreamery through a joint venture with retail giant Future Group.

Fonterra first entered the Indian market in 2001 but the venture fell through.

The Dreamery range of products is the first brand under the joint venture Fonterra Future Dairy, which included two flavoured milk drinks, yoghurt and skim milk in tetra-packs. . .

Darfield partnership named top wheat growers

A Darfield father and son have claimed this year’s top wheat growers’ award.

Syd and Earl Worsfold were named 2019 supreme award winners in the United Wheat Growers wheat competition awards recently. The pair also won the feed wheat section.

Earl Worsfold farms in partnership with his parents Syd and Trish Worsfold on 400ha, including 260ha which Earl leased from a neighbour. . .

Why veganism is not the answer to reducing our environmental impact – Emma Gilsenan:

Reducing our environmental impact is more complex than simply removing animal products from the diet.

This week, on Wednesday, June 12, the National Dairy Council (NDC) – in association with Teagasc, Ornua and Lakeland Dairies – hosted its annual farm walk and seminar on the McKenna family farm in Emyvale, Co. Monaghan.

Speaking on the day, Dr. Marianne Walsh – a senior nutritionist with NDC – made some interesting points about veganism and the affect a complete plant-based diet would have on the environment and the population as a whole.

She said: “At the moment we have about 7.7 billion people and this is set to rise to about 9.7 billion by the year 2050. Which can exasperate some of the current problems that we are facing. . . 


Rural round-up

June 3, 2019

Townies ringing the changes on rural folk – Nigel Malthus:

Decisions are being made about and for New Zealand’s rural communities by the 80% of the population who live in urban areas, say the authors of a new book on rural change.

Current trends favour a market led, business focussed approach to regional growth, but these trends downplay social and community considerations, and that needs further thought, the authors say.

Heartland Strong: how rural New Zealand can change and thrive finds that rural communities have enormous strengths which could be enhanced and maintained even in the face of inexorable change. . .

Debt problems rise only slightly – Nigel Stirling:

The number of dairy farmers struggling with high debt has risen slightly, according to the Reserve Bank’s latest stock-take of the health of the financial system.

In its twice-yearly Financial Stability Report it said the number of non-performing dairy loans reported by the trading banks has increased slightly.

“The dairy sector is continuing to recover from the two major dairy price downturns in the past decade. . .

Plan needed for competing wood demands – Fonterra – Gavin Evans:

(BusinessDesk) – Wood is a viable industrial fuel but greater effort may be needed to ensure that new demand from processors doesn’t strip supplies from existing users, Fonterra says.

Co-firing the firm’s Brightwater milk powder plant near Nelson on a wood-coal blend shows that wood is a viable means to reduce emissions from process heat, Tony Oosten, the firm’s energy manager, says.

Capital and fuel costs for new wood or coal boilers are now very close and the company could – were it to be building its Darfield 2 dryer in Canterbury again – do that with wood. . . 

 

World leading scientist teaming up with Fonterra on sustainability:

Professor Ian Hunter is a serial entrepreneur. Born in New Zealand, he started his first company at age nine and published his first scientific paper at age 10.

Now living in Boston, he’s the Professor of Mechanical Engineering at MIT, the co-founder of 25 companies, and has more than 100 patents to his name.

He’s also working on a new project – a partnership with Fonterra to solve some of dairy farming’s biggest sustainability challenges.

Kakariki Fund to help horticulture starts accelerate growth:

A wholesale investment offer being launched this week is aimed at helping the emerging stars of the New Zealand horticulture sector accelerate their growth.

Kakariki Fund Limited, which is seeking $100 million, will invest in orchards, vineyards, plantations and farms to be co-managed by leading horticulture processors and exporters including apple growers Rockit Global and Freshmax, Sacred Hill wines, craft beer hop grower Hop Revolution, Manuka honey producer Comvita and kiwifruit grower and packer DMS Progrowers.

Kakariki is targeting annual investment returns of 10%*, which will be made up of earnings from the sale of crops through the partners and any increases in land values.  . . 

Meat is magnificent water, carbon, methane & nutrition  – Diana Rodgers:

“When we try to pick out anything by itself, we find it hitched to everything else in the Universe.” – John Muir

There was a recent article in The Washington Post entitled “Meat is Horrible”, once again vilifying meat, that was full of inaccurate statements about the harm cattle impose on the land, how bad it is for our health, and how it should be taxed. Stories like this are all too common and we’ve absolutely got to change our thinking on what’s causing greenhouse gas emissions and our global health crisis.

Hint: it’s not grass-fed steak

In the few days since the story originally came out, I’ve been brewing up some different angle to write. I’ve written here, and here about the benefits of red meat, and how Tofurky isn’t the answer to healing the environment or our health. I keep saying the same thing over and over. Recently, I posted this as a response to Arnold Schwarzenegger’s new claims that a plant-based diet is optimal. I also wrote about Philadelphia’s sugar tax here, and I don’t think a meat tax is any better of an idea, especially when the government is subsidizing the feed. I’m feeling quite frustrated. . . 


Rural round-up

April 6, 2019

FARMSTRONG: Putting people first comes first

A thriving Canterbury dairy farmer puts as much thought into looking after his staff as he does stock and pasture. 

Duncan Rutherford manages an operation with 14 staff, 2300 cows and some sheep and beef on a 3300-hectare property. 

He and his family are still dealing with the aftermath of the 2016 Kaikoura earthquake. 

“It was a reasonable challenge all right. A couple of houses got fairly damaged and one is still being repaired.  . . 

Exporters’ Brexit concerns grow – Peter Burke:

New Zealand primary produce exporters’ concerns continue rising about the confusion in the British parliament over Brexit.

NZ’s agricultural trade envoy Mike Petersen says given the possibility of a no-deal, exporters are making contingency plans for such an event.

But they also still hope a deal will be agreed so they won’t have to trigger plans for a no-deal. The whole thing is a terrible mess, Petersen told Rural News last week. . . 

Young farming couple applauded for farm sustainability – Angie Skerret:

A farming couple applauded for their commitment to farming sustainability have a simple message for other farmers – make a plan and make a start.

Simon and Trudy Hales, of Kereru Farms, are one of eleven regional winners of the Ballance Farm Environment Awards – taking out the Horizons regional award.

The Hales are the fourth generation to farm the land, and have worked hard to make positive changes on their 970ha sheep and beef farm near Weber. . .

A2 Milk says lift in dairy prices may impact in FY2020 – Rebecca Howard:

 (BusinessDesk) – A2 Milk Company said recent increases in dairy pricing will have an impact on gross margin percentages in the 2020 financial year but it doesn’t anticipate any significant impact this year.

Dairy product prices rose for the ninth straight time in the overnight Global Dairy Trade auction. The GDT price index added 0.8 percent from the previous auction two weeks ago and average prices are now up 28 percent since the auction on Nov 20.

“We do not anticipate any significant impact to gross margin percentage during FY19 as a result of recent increases in dairy pricing as reflected in Global Dairy Trade Indices. . . 

Dairy industry tells EU ‘hard cheese’ – Nigel Stirling:

The dairy industry is digging its heels in over the European Union’s attempts to seize dozens of cheese names for the exclusive use of its own producers.

The EU has long sought to use its free-trade agreements to extend its system of Geographical Indications (GIs) and its trade talks with NZ have been no exception.

As part of the talks the European Commission has given NZ negotiators a list of 179 food names and hundreds more wine and spirit names linked to European places it says should be given legal protection over and above that provided by this country’s own system of GIs protecting names of wines and spirits introduced several years ago. . . 

Scott and Laura Simpson’s focus on data collection pays off in Inverell drought – Lucy Kinbacher:

SOME of the toughest decisions are made during unfavourable seasons but for Inverell’s Scott and Laura Simpson their efforts during the good times are making their management easier. 

The couple are into their fifth year of ownership of the 1700 hectare property Glennon, which was previously run by Mr Simpson’s parents. 

At the time they had a herd of Brangus content types so the pair moved to incorporate more Angus genetics and breed more moderate females.  . . 


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