Rural round-up

May 6, 2018

Johan’s unusual job – Samantha tennent:

Johan Fourie always gets a kick telling people he works in the “sex industry”, particularly unsuspecting townies. His official role is the production farm manager for CRV Ambreed at Bellevue Farm in the Waikato.

The 26-year-old South African is responsible for the semen harvesting, animal health care and well-being and general semen production of CRV’s bulls.

There are around 160-180 bulls on the farm at any one time, with a maximum capacity of 250. The farm is set up in different parts; the internal barns and paddocks make up the EU Facility and the outer parts of the farm are the isolation and pre-quarantine areas. . . 

Century farmers to be recognised :

The New Zealand Century Farm and Station Awards committee in Lawrence, Otago, is preparing for its awards dinner in May where it will formally honour 32 families who have farmed their land for 100 years or more. Eleven are families that have kept their farm for 150 years.

 Also starting to filter through is land that was distributed under the Discharged Soldiers Settlement Act in 1915 which allowed returned servicemen to be granted farmland on generous terms and given access to cheap loans to develop.

Committee chairwoman Karen Roughan says the work ahead of these soldiers was immense. “Often the land the men were allocated was remote, densely forested with virgin bush and without easy access by road. Many of the soldier-settlers lacked farming experience, were undercapitalised and faced long periods of time on their own as they battled to build a new home and develop sustainable living off their land. A large percentage gave up and walked off the land, often with hefty mortgages owing. . .

Fonterra’s milk collection back 2% :

Fonterra’s milk collection this season is tracking 2% lower than in 2017, a steeper decline than for the industry as a whole and suggesting rivals have picked up more of the national milk pool.

Fonterra’s global dairy update says the company collected about 1.31 million kilograms of milk solids in New Zealand in the 10 months ended March 31. It expects production for the whole season ending May 31 will be down on the previous year at 1.5 million kg/MS, an improvement on its previous estimate of 1.48 million kg/MS. It cited difficult weather for the decline. Fonterra’s share of the national milk pool is about 82%. . . 

 

Entries Open for Pork, Bacon And Ham Awards:

New Zealand’s greatest butchers and meat producers will once again compete to showcase their unique skills and innovative products this June, with entries now open for this year’s New Zealand Pork, Bacon and Ham Awards.

The competition – which draws hundreds of entries from butchers, producers and deli owners nationwide – will present awards for Innovative Pork, Convenient Pork, as well as a range of categories featuring prime New Zealand bacon and ham.

CEO David Moffett says NZ Pork founded the awards to provide retailers the opportunity to showcase their very best PigCareTM Accredited New Zealand pork products. . . 

This ‘climate beneficial’ wool hat comes from carbon positive sheep – Adele Peters:

At the southern end of the Surprise Valley on the border of California and Nevada, Bare Ranch looks essentially like it did in the early 1900s: sheep and cattle grazing on broad fields under a backdrop of mountains. But because of some subtle changes, the ranch now produces what’s being marketed as “climate beneficial” wool.

The wool–which The North Face is using in a new beanie with the tagline, “Warm your dome, not the globe”–is produced in a way that allows the ranchers to sequester large amounts of carbon as they raise sheep. In a year, Bare Ranch’s methods will sequester around 4,000 metric tons of CO2, offsetting the emissions from roughly 850 cars. . . 

Latest study confirms an animal-free food system is not holistically sustainable – Sara Place:

Let’s be clear, a healthy and sustainable food system depends on having both plants and animals. Researchers at USDA’s Agricultural Research Service and Virginia Tech just published a study in the Proceedings of National Academies of Sciences confirming this socially debated fact. The study examined what our world would look like without animal agriculture in the U.S. The bottom line? We’d reduce greenhouse gas emissions in the U.S. by 2.6 percent, and 0.36 percent globally[1] — but we’d also upset our balanced food ecosystem and lack essential dietary nutrients to feed all Americans.

One important role livestock — such as cattle — play in our sustainable food system is taking human inedible food and ultimately making it nutritious. Specifically, cattle act as upcyclers — meaning they eat grasses and plant matter leftover from human food production and upgrade them into nutritional, high-quality protein. In fact, they produce 19 percent more edible protein than they consume[2]. . . 

 


Will Icebreaker VF deal get OIO tick?

November 4, 2017

Icebreaker, one of the company’s that made merino fashionable, is selling to a USA company  but the deal needs OIO approval:

US-based VF Corporation needs Overseas investment office approval to buy Kiwi merino clothing maker Icebreaker, meaning the deal is worth at least $100 million. The terms of the deal were not disclosed.

Merino producers have been getting a lot of pressure to sign up to 10-year contracts with Icebreaker. The proposed sale explains that and a good number of committed producers would have made the deal more attractive to the buyer.

VF Corporation has a market capitalization of around US$28 billion and its portfolio includes The North Face, Timberland, SmartWool, Vans, Wrangler and Lee. In its third-quarter result, the company forecast its 2017 revenue would be approximately US$12.1 billion.

Icebreaker had annual sales of $220 million, of which 86 percent were in offshore markets. Its own outlets and e-commerce sales make up 32 percent of sales, according to the company’s latest statement.

While the terms of the deal were not disclosed, Icebreaker confirmed the need for OIO approval due to the size of the transaction, implying a minimum value of at least $100 million. In a separate statement, VF said “the purchase price is not material to VF.” It also clarified that it expects the transaction to close in April 2018. . . 

I would think the deal would be worth considerably more than $100 million. Regardless of how much more, closure by next April is probably very optimistic.

Friends who have had dealings with the OIO, as sellers and buyers, said it was a very time-consuming process.

Unless it gets a straight decline from the outset, it won’t be any faster under the new government.

According to Icebreaker, the deal creates an expanded opportunity for the New Zealand merino industry. “This is a once in a lifetime opportunity for our global Icebreaker team and for our New Zealand wool suppliers to introduce a whole new universe of consumers to the benefits of sustainably farmed, ethically sourced, New Zealand Merino wool,” said Icebreaker founder Jeremy Moon.

John Brakenridge, CEO of the NZ Merino Company, noted VF have also had a long-term commitment to the New Zealand Merino industry through their investment in SmartWool and NZ Merino has worked with SmartWool in areas such as sustainability and social responsibility.

“Today we are seeing record demand and prices for New Zealand merino wool …the synergy of these two brands working as sisters from the same stable to build increased awareness of the Merino apparel category represents an exciting new development for the New Zealand merino wool industry,” he said. . . 

People tend to be less opposed to selling land to foreigners than selling companies.

But no matter who owns it the land and the business carried out on it stay here.

When a company is sold, there is no guarantee anything will stay in New Zealand.

Icebreaker is a New Zealand company and its clothing is designed here using locally grown merino wool but manufacturing has been done overseas for several years.

If the sale does go ahead, people who want New Zealand made merino will still have the choice of buying from companies like Glowing Sky and Mons Royale.

 


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