Rural round-up

July 4, 2016

Drought conditions in South Island continue:

The impact of ongoing dry conditions on the eastern South Island means the medium-scale drought classification will be extended until the end of the year, Primary Industries Minister Nathan Guy has announced today.

“Extra funding of up to $88,000 will go to drought recovery coordination and the five Rural Support Trusts in the area, with $30,000 of this going to the North Canterbury Rural Support Trust,” says Mr Guy.

The announcement was made by Mr Guy at a meeting with local farmers in North Canterbury today, his fifth visit to the region since April last year.

“This will mean the area has been in drought for nearly two years, since its initial classification on 12 February last year. This will be the longest period of time a classification of this type has lasted for.” . . 

Jobs and land galore in Kaitangata:

Kaitangata has a jobs problem perhaps unique among small New Zealand towns – there are too many.

There are only two people without jobs in the entire town of 800, but at least 100 vacancies waiting to be filled.

Three-bedroom standalone houses are now being offered for only $230,000. There are currently 30 sections available, with the houses being built to order.

Clutha District Mayor Bryan Cadogan says they come with “stunning views out over the delta”. . . 

Past, present and future of the meat industry (part 3) – Allan Barber:

The future

There are two diametrically opposing views on the meat industry’s future outlook: either the world is short of protein and has an insatiable appetite for what we produce or meat will be replaced by artificial or synthetic proteins, much cheaper and easier to produce.I can’t predict just where on the continuum between these two extremes actual reality will settle or which direction the trend will move. But it’s probably worth hazarding a guess that the top end of the market will continue to prefer the real thing, produced and presented to a high quality, while the poor who are unable to afford much if anything will be happy to accept the cheaper, artificial version. It is also quite possible the increasingly global craze for fast food, especially hamburgers, could be met by synthetic beef, but here again there would be a premium end of the market demanding the real thing. . . 

MPs urged to back no-tillage farming – Alexa Cook:

An international soil scientist is urging the government to reduce carbon by promoting “no-tillage” farming to the primary sector.

The method is a way of growing crops or pasture from year to year without disturbing the soil through tillage, which results in carbon being captured in the soil instead of released through ploughing.

Scientist John Baker met with Labour MPs this morning as part of his crusade to get the message across that New Zealand has the machinery and technology to transfer carbon into the soil and keep it there. . . 

Silver Fern Farms announces contract extension and new special meeting date – Allan Barber:

Silver Fern Farms have issued two new media releases announcing a revised completion date for the contract with Shanghai Maling and a new date for the shareholder requisitioned meeting.

The revised date of 30th September for meeting the one remaining condition of the contract has been agreed in principle by both parties and is subject to agreement of both boards. SFF’s CEO Dean Hamilton said “We needed to allow more time to answer the further information requests from the OIO and to then provide sufficient time for the OIO and then Ministers to consider the application. We continue to believe that the investment will be approved given its substantial merits.”

“The agreement to the new date reflects positively on the ongoing commitment of both parties to the transaction.” . . 

  – Allan Barber:

ANZCO Foods has just released its annual result for the 15 month period ended 31 December which shows a reduced profit compared with its 12 month 2014 performance. Pre-tax net profit was $5.702 million ($7.128 million in 2014) while NPAT was $4.49 million, down more than 50% on the equivalent 2014 result which included part of the tax benefit from the 2012 loss.

Notable features of the result were a large increase in inventory and in current bank debt which can be partly explained by the purchase of the remaining 50% of Five Star Beef and the effect of the December quarter. However these factors do not seem to explain fully the extent of the increase. . . 

Super Fund swoops on Southland dairy farms – Mel Logan:

The New Zealand Superannuation Fund (NZSF) is actively buying up dairy farms in Southland, clinching deals on seven properties with more to follow.

The new acquisitions come under a dark industry debt cloud and take the NZ Super Fund’s farm portfolio to 21, following two recent dairy purchases in Canterbury. 

NZSF says while the dairy sector faces some difficult short term challenges, it continues to have strong long-term potential. . . 

Fonterra Enhances Pre-Season Preparation:

A single-minded focus on effectiveness, efficiency and innovation across all aspects of Fonterra’s winter maintenance programme is delivering savings for the Co-operative as it gets match-fit for spring.

Director of NZ Manufacturing Mark Leslie said this “winter shut” period is an important time of year for manufacturing teams as all assets across Fonterra’s network of sites are fine-tuned to ensure they are ready for the season ahead.

“Each year we process around 18 billion litres of milk, with the bulk of this carried out in the spring months. The work we’re doing now will help us get match-fit for that peak period.” . . 

Fonterra Launches The Switch To Z Biodiesel:

Fonterra has taken another step forward in its commitment to environmental sustainability, today launching its switch to new Z biodiesel – as a foundation customer for the ZBioD fuel.

Fonterra and Z were joined by Minister of Energy and Resources Hon. Simon Bridges, Whakatane Mayor Tony Bonne and other dignitaries today in celebrating the partnership at the Co-operative’s Edgecumbe site.

Fonterra Chief Operating Officer Global Operations, Robert Spurway said the shift to biodiesel is part of a move towards greater efficiency and sustainability across all operations, and helping Z make cleaner burning biofuel available in New Zealand. . . 

New Zealand Pork, Bacon and Ham Lovers Pay Attention!:

New Zealand pork, bacon and ham lovers pay attention – the ninth annual judging of the 100% New Zealand Pork, Bacon & Ham Competitions kicks of this Friday (1 July) in Wellington.

The Competitions celebrate New Zealand’s finest home-grown pork products and assist customers to identify and appreciate sustainable pork, bacon and ham which is PigCare™ Accredited*. The competitions support our pig farmers, who raise pork solely for New Zealanders.

This year an impressive 210 entries from butcheries nationwide will be scrutinized by an expert and independent panel of 34 judges comprising leading chefs, food connoisseurs and master butchers. The judges will blind-taste each entry to select New Zealand’s best pork, bacon and ham. . .  . . 


Rural round-up

May 21, 2015

Extra support for drought affected North Canterbury:

Primary Industries Minister Nathan Guy has met with drought-affected farmers in Cheviot, North Canterbury today and says they’re still feeling the impacts of drought.

“North Canterbury – and the Cheviot area in particular – has missed most of the recent rainfall, and continues to face severe drought conditions,” says Mr Guy.

“Because of this, an additional $20,000 is being allocated to the North Canterbury Rural Support Trust. This will help them with more intensive activities, including individual visits and community events. . .

Livestock moved out of Canterbury drought – Hamish Clark:

Farmers have shipped tens of thousands of sheep and cattle out of north Canterbury and hundreds of tonnes of feed in as the drought there deepens.

The worst-hit area is around Cheviot, which is north of Christchurch, and the locals are desperate for rain.

The ewes are sniffing and searching the parched earth for a single blade of green grass, but there is none.

Cheviot farmer and local Chris Jefferies says farmers in the area are really struggling. . .

Supreme winners open their gates:

Environmental farm award winners for the Horizons Region opened their gates and shared their secrets with other farmers last week.

William Akers, Laura Oughton, Hugh and Judy Akers from Broadlands Station in Ashhurst were announced as the 2015 Ballance Farm Environment Awards supreme winners in March. As part of winning the award, recipients are asked to host other farmers on farm in order to share ideas and inspire others.

Horizons Regional Council environmental manager for land Grant Cooper was on the judging panel for the final round and says Broadlands is a straightforward, efficiently run station. . .

Ministers request report on dairy competition:

Primary Industries Minister Nathan Guy and Commerce and Consumer Affairs Minister Paul Goldsmith announced today they will request a report on the state of competition in New Zealand’s dairy industry from the Commerce Commission.

The report is required under the Dairy Industry Restructuring Act, which allowed for the merger of our largest dairy co-operatives to form Fonterra Co-operative Group Limited.

The DIRA contains provisions to ensure contestability in New Zealand’s farm gate and factory gate markets. These provisions are intended to expire when there is workable competition in the domestic dairy market. . .

$5m new funding for forestry research partnership:

The Government will invest $5 million over seven years in a research partnership to increase the competitiveness of the forestry sector, Science and Innovation Minister Steven Joyce announced today.

“Forestry is New Zealand’s third largest export earner – behind dairy and meat, contributing around $5 billion to our exports. This investment aims to strengthen the ties between research organisations and the industry to produce excellent research driven by industry needs,” says Mr Joyce.

The new partnership is led by Future Forests Research, an industry-operated entity, in collaboration with Scion, the University of Canterbury, and the NZ Dryland Forests Initiative. . .

NZ export log prices hit 3-year low; may start picking up as demand improves – Tina Morrison:

(BusinessDesk) – New Zealand export log prices, which fell to a three-year low this month, may start to pick up as demand improves in China, the country’s largest market.

The average wharf gate price for New Zealand A-grade logs fell to $83 a tonne in May, from $94 a tonne in April, marking the lowest price since May 2012, according to AgriHQ’s monthly survey of exporters, forest owners and sawmillers. The AgriHQ Log Price Indicator, which measures average log prices weighted by grade, dropped to 88.40 from 93.29 in April.

The price for New Zealand A-grade logs delivered to China fell to US$99/JAS from US$111/JAS last month, the lowest level since AgriHQ started collecting the data in 2012. . .

Southern Dairy Hub Case to Be Presented:

Trustees of the Southern Dairy Development Trust are very pleased with the support received for the Southern Dairy Hub, with 516 farmers and businesses pledging $1.306 million in support.

“It’s an absolutely fantastic result and a huge endorsement for the Hub project,” Chair Matthew Richards says. “We are grateful and thankful for the support from our community and are confident we will get a good hearing in front of our industry partners, DairyNZ and AgResearch.”

Mr Richards says the official numbers includes postal pledges that arrived following the April 30 pledge deadline and takes the result to 55% of farmers between Dunedin and Bluff as having pledged their financial support. . .

Rural Business Network Launches Free Mentoring Initiative:

Rural Business Network (RBN) in partnership with Business Mentors New Zealand (BMNZ) has launched a new initiative offering mentoring support to rural businesses throughout New Zealand. The project is called ‘Rural Mentor’ and will provide a tool to enhance on-farm profitability and enable access to skills and knowledge that isn’t commonly known to be available.

The new Rural Mentor initiative sees the BMNZ registration fee waived for a limited number of NZYF and Rural Business Network members

Daile Jones, National Rural Business Network Coordinator says `Farmers in the sheep, beef or dairy sector operating their own business or farm managers that want a fresh perspective, will be matched with a business professional who can offer confidential advice, assistance and support that will help overcome business challenges, set new goals and achieve success. There’s no lack of knowledge out there, just a shortage of knowing what information is available.” . . .

Call OSPRI if you’re moving this Gypsy Day:

Don’t put your livelihood at risk when moving or selling stock over the Gypsy Day period; make sure you call OSPRI to update your NAIT and TBfree details and record all animal movements.

“This will help protect New Zealand’s reputation as a producer of high quality, safe food and maintain access to valuable international markets,” said Dr Stu Hutchings, OSPRI Group Manager.

Up to date NAIT data allows farmers to get back to business sooner in the event of a biosecurity incursion or food safety concern and is already being used to contain existing animal diseases like bovine tuberculosis (TB). . .


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