Rural round-up

September 14, 2018

Fonterra loss could be opportunity for change – Andrew McRrae:

Dairy farmers are hoping the massive financial hit taken by Fonterra will be used as an opportunity to reset the business for the future.

The dairy cooperative delivered a net loss of $196 million for the year ended July, after being hit by compensation payouts and investment write downs.

Revenue rose 6 percent to $20.4 billion.

Orini farmer Allan Crouch said even though a loss had been signalled, it was still very disappointing, especially compared to the $734m profit the year before. . .

Fonterra ponders Beingmate future as part of strategic review – Nikki Mandow:

(BusinessDesk) – Fonterra is looking at whether it should get rid of its disastrous Beingmate investment as part of an ‘everything up for grabs’ strategic review.

Speaking as the company announced the first full-year loss in its 18-year history, chairman John Monaghan said the company was doing a “full stocktake and portfolio review looking at all our major investments, assets and joint ventures to see how they are performing and where they fit with our strategy”. Beingmate was a key investment under the spotlight. . .

Co-op must do better:

The Chairman of Fonterra’s Shareholders’ Council Duncan Coull has said he is extremely disappointed with the Co-op’s 2018 Annual Results.

“There’s no denying that our farmers are unhappy with current performance, and this year’s results,” he said.

“The underlying result and its impact on earnings, dividend and carrying value is totally unacceptable and one that our farming families will not want to see repeated. Moving forward, it is imperative that our business builds confidence through achievable targets and at levels that support a higher carrying value of our farmers’ investment. . .

A thoroughly modern-day forward-thinking farmer – Pat Deavoll:

If ever there was the epitome of a thoroughly modern-day Kiwi farmer, the new Federated Farmers South Canterbury president would be it.

Jason Grant does it all. He owns and manages two dairy operations and a 1000 hectare dry stock farm, is a director of an irrigation company, an active member of two river catchment groups, a husband to Anna and father to Ruby (11), Oscar (12) and Wills (13), and of course, in his Federated Farmers role, an advocate for the local farming fraternity.

That he has a lot on his plate is an understatement. He says his life is “pretty full.” . . .

Farmers deserve recognition for their hard milk slog – Lyn Webster:

We are living in fantasy land where many people seem to think money grows on trees.

Well, it bloody well doesn’t!

Warning: I am grumpy because I have just lost my job due to impeding farm sale – more on that later.

About 25 per cent of New Zealand’s overseas revenue is generated by dairy farming, which is done by about 36,000 people.  That’s not many people to bring in a huge chunk of the country’s income.  

When the payout drops, which can happen overnight, it can affect your dairy farming business very badly very quickly.  Milk prices are volatile, sensitive to international demand and currency changes. Farmers put their seasonal plans in place, including stock numbers and a budget – if the milk price plummets, you pretty well have to suck it up because you haven’t got much wiggle room. . .

Funds run dry for beekeeper working to eliminate deadly parasite – Maja Burry:

A West Coast beekeeper says his bees are resistant to the varroa mite but that decades worth of work may be lost unless he can urgently pull together enough money to keep his business running.

Varroa mites infest bee hives, feeding on larvae and an infected hive usually dies within three or four years.

Westport beekeeper Gary Jeffery said he wanted to eliminate the parasite by distributing mite-resistant queen bees that he has bred around New Zealand. . .

Fonterra changes vindicated– Hugh Stringleman:

The calibre of new directors and nominees for the Fonterra board vindicates the governance changes and the downsizing of the board and outweighs the initial loss of experience, departing director Nicola Shadbolt says.

Her decision not to seek a fourth three-year term is in accordance with the guideline of nine years as the optimum and 12 years as the maximum.

The three candidates for vacancies around the board table announced last Monday are one-term sitting director Ashley Waugh along with Jamie Tuuta and Peter McBride. . .

Deer market doing well – Ashleigh Martin:

The deer market is achieving well at the moment, New Zealand Deer Farmers Association chairman John Somerville says.

“Venison prices are the best they’ve ever been and the velvet has been really stable for six or more years with some really good pricing.

“We’re hoping for slow steady growth of the deer market


Rural round-up

October 19, 2016

New Zealand Food Awards unveils the ‘best of the best’ for 2016:

The winners of the 2016 New Zealand Food Awards, in association with Massey University, were unveiled this evening at a gala dinner among 400 guests at the Auckland War Memorial Museum, with nine products from 11 companies taking out the top spots.

A record number of entries – up 62 per cent on last year – made competition for the prestigious awards more intense than ever this year.

Wanganui’s Coastal Spring Lamb proved the overall champion, claiming the ultimate accolade of the Massey University Supreme Award, as well as the Export Innovation and Chilled Foods Award categories with its Lamb Rack. Judges were particularly impressed with the process used to grow, market and sell the product from pasture to plate.

Coastal Spring Lamb owners, Richard and Suze Redmayne, say winning the Massey University Supreme Award was a dream come true and great recognition for the farming families behind the high quality product. . . 

Exporters back single QA standard for deer farms:

All five major venison marketing companies and the NZ Deer Farmers Association (NZDFA) are backing the introduction of a revamped quality assurance programme for farmed deer.

The companies have agreed on a single standard for deer that will eliminate duplication between companies running their own QA programmes. They have also agreed that, after a three-year phase-in period, compliance with the QA standard will be a requirement for the supply of animals for Cervena™ venison.

The development of the single standard was initiated by the marketers and co-ordinated by Deer Industry NZ (DINZ) as part of the industry’s Passion2Profit (P2P) programme. . . 

NZ to support dairy development in Peru:

Economic Development Minister Steven Joyce has today announced New Zealand will contribute $4 million to a four-year dairy development partnership with Peru.

“The New Zealand Peru Dairy Support Project will use our expertise to improve the profitability of up to 90,000 dairy farmers in the Peruvian Sierra,” Mr Joyce says.

“The project will focus on assisting Peruvian farmers with New Zealand technologies to improve milk and cheese production, handling and processing practices, and more effective research and extension.

“Dairying has good potential to increase smallholder dairy productivity and incomes in the Sierra, generating regular cash income and contributing to household nutrition and food security. . . 

Hawke’s Bay Apple Crop Budding Well for a High Quality Season:

Hot, sunny weather in Hawke’s Bay is budding well for another high quality apple crop as the trees reach full bloom.

One of New Zealand’s largest apple growers, BOSTOCK New Zealand is expecting a solid season in 2017.

BOSTOCK New Zealand Owner John Bostock says the outlook is positive thanks to mild weather and few frosts.

“Warm, dry conditions are ideal when trees are in bloom – we have had some really hot days in Hawke’s Bay, with temperatures reaching the mid 20s and indications show it’s a strong bud. . . 

The Stories of Ehrlich, Borlaug and the Green Revolution – Gopi Rajagopal:

 Fifty years after high yielding variety seeds came to India, a look at how they got here – and what may have happened if they didn’t.

For the average person, the names Ehrlich and Borlaug may not mean anything. However, in the late 1960s and early 1970s, the two Americans, in their own way, did something extraordinary. Paul R. Ehrlich, a professor of biology at Stanford University, painted a depressing picture of the state of the world – a picture that had hundreds of millions dying within a decade, and nations such as India and England ceasing to exist.

Norman Borlaug, along with his associates, proved Ehrlich wrong. Borlaug helped nations such as Mexico and India double, even triple, their crop yield – an increase that outpaced the population growth rate and ensured that famines would remain only in the history books. . . 

Inland Revenue considers updating farmhouse expenses rules:

Inland Revenue is looking to bring tax accounting practice regarding farmhouse expenses into line with the law.

This is all part of a review of out-dated practices and policies.

The practice of full-time farmers deducting 25% of farmhouse expenses without needing to provide evidence of their business use has been accepted by the department since the 1960s.

Farmers have also been able to deduct 100% of rates bills and interest costs on loans.

Inland Revenue Group Tax Counsel Graham Tubb said this has allowed some farmers to claim deductions for private spending. . . 

Farmers’ Market Comes to Town:

Four New Zealand farmers have joined forces to bring the freshness of farmers’ market free range eggs to selected supermarkets across the country – introducing Craft Farmers’ Co-op. Kiwis can now enjoy premium free range eggs, within days of local hand-picking.

Located in Northland, Auckland, Wairarapa and Canterbury, the four independent farmers share common philosophies in the way they care for their hens and respect their environment. By collaborating as Craft Farmers’ Co-op, the farmers can provide farm-fresh free range eggs direct to more Kiwis in more locations.

Craft Farmers’ Co-op eggs are hand-packaged at the farm, into biodegradable, recyclable cartons, each with a story about the local farmer who picked them. This means people know exactly where their eggs have come from – the ultimate in traceability. . . 

Pioneering vineyard placed on the market for sale:

The first sheep farm/vineyard conversion property in the Marlborough district of Ward, continuously owned by the same family for six generations, has been placed on the market for sale.

A pioneering vineyard that led the conversion from sheep farming to grape growing in its region has been placed on the market for sale, ending six generations of family ownership.

Francis Estate Vineyard at Ward, South-East Marlborough, was established as a sheep and beef breeding farm by Frederick William (Billy) Francis and his wife Agnus Elizabeth Francis in 1905. The farm remained a meat and wool production focused operation until the late 1980s when the removal of farm subsidies affected the profitability of the sector nationwide. . .

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Rural round-up

September 29, 2013

Renewed attack on AgResearch move – Annette Scott:

A move by AgResearch to push on with its restructuring plans has been labelled short-sighted and flawed by southern leaders, with jobs set to go in their regions.

The Crown research institute (CRI) proposed in July the relocation of hundreds of science and support roles from its centres at Ruakura, near Hamilton, and Invermay, near Dunedin, to bigger research hubs in Palmerston North and Lincoln.

This was in line with a planned $100 million investment in its campus infrastructure. . .

Relief over Invermay assurances support, uni link to be retained – Sally Rae:

Federated Farmers Otago president Stephen Korteweg says he is heartened by an assurance that dry stock farm system capability to support deer, sheep and beef farming will be retained at Invermay, and that AgResearch’s linkage with the University of Otago’s genetics team will be maintained.

In a statement this week, after AgResearch’s announcement it still intended to slash jobs at Invermay, Federated Farmers national vice-president William Rolleston said the rural lobby organisation supported the reconfiguration of AgResearch because of the need for ”modern progressive agricultural research centres of excellence”. . .

Purchaser found for Australian Business – Annette Scott:

Ravensdown has signed a conditional sale and purchase agreement for its failed Western Australia business.

The co-operative announced last week it was selling to Louis Dreyfus Group, which has been involved in the Australian market for many years.

Detail of the agreement is yet to be finalised.

Louis Dreyfus is a French company involved globally in agriculture, oil, energy and commodities, global processing, trading and merchandising, as well as international shipping. . .

“First Steps” – the best gift I’ve ever given myself – Eloise Neely:

I attended the Agri-Women’s Development Trust course in Whangarei with two goals, to make new friends and connections and seek guidance to reinvent myself after 20 years farming in the South Island.

First Steps is exactly what the name suggests, a group of rural women meeting to examine their feelings, values and visions to discover the first steps of the rest of their lives.

Who is a First Steps woman? She may be a farmer by choice or an “accidental” farmer, single or partnered and age is not a factor. A First Steps woman may be a rural professional or anyone with a connection to the land. She is often the unseen farming partner quietly raising the next generation and keeping small communities together. . .

Deer industry tipped to become ‘red hot‘ –

The deer industry will be ”red hot” next year, Stanfield’s European Red Deer Stud owner and ”Motivate” group chairman Clive Jermy, of Darfield, says.

Mr Jermy, Deer Industry New Zealand (DINZ) production manager Tony Pearse and New Zealand Deer Farmers Association (NZDFA) chairman Kris Orange , of Geraldine, are members of Motivate, a group putting together recommendations to encourage more people to enter the industry or to remain in it, to improve training and availability and to raise the industry’s profile.

Mr Jermy said the deer industry was an exciting one to be in. . .

Cow drowns in effluent on hellish road trip:

Two South Westland dairy farmers, a stock agent, a trucking company and two of its middle management have been prosecuted over a road trip suffered by 25 cows on the way to the slaughterhouse.

It is the first prosecution by the Ministry for Primary Industries under the Animal Welfare Transport Code.

At the heart of the case, which was part heard in the Greymouth District Court yesterday, was a cattle shipment from Whataroa and Hari Hari to the Silver Fern Farms meatworks in Hokitika on October 25 last year, which was then diverted to a freezing works at Belfast, in Christchurch. . .

Innovative wastewater system for wheatbelt:

Western Australia Water Minister Terry Redman has announced work had begun to connect Hyden residents to an innovative wastewater scheme, the first of its kind in WA.

The $3.6 million trial was supported by 90 per cent of the town during a community poll in 2011 and is part of the State Government’s infill sewerage program.

“Hyden’s STED system will take wastewater that has already been treated in household septic tanks through a pipeline system and to a disposal pond located outside of town,” Mr Redman said. . .


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