Rural round-up

November 30, 2016

Training isn’t meeting needs – Neal Wallace:

It requires a liberal dose of lateral thinking to grasp the paradox that is primary sector training.

Recently the Tertiary Education Commission said it wanted to invest more money into primary sector training because there were plenty of jobs.

The primary sector continues to struggle to find staff and this week the Government announced an extension to the Recognised Seasonal Employer Scheme allowing another 1000 foreigners to work on the coming harvest.

But, incongruously, primary sector training is in upheaval with several high-profile providers responsible for training about 1000 young people, exiting the industry, others looking for a new provider and, in the case of Lincoln University, making 51 staff redundant to balance its books. . . 

Show deal boosts export potential – Colin Ley:

The southern hemisphere’s biggest agribusiness exhibition, the National Fieldays, and Europe’s largest agricultural show, have signed a collaboration deal.

They have signed memorandum of understanding as part of an initiative to boost farm business and trading links between New Zealand and the European Union.

The move would deliver major benefits to NZ’s 130,000-visitor event, held near Hamilton each June, and Eurotier’s 160,000-visitor show held in Hannover, Germany, every second year, Fieldays chief executive Peter Nation said. . .

Govt working with wine industry to secure 2017 Marlborough vintage:

Economic Development Minister Steven Joyce and Primary Industries Minister Nathan Guy are working with the Marlborough wine industry to respond to the challenges of the November 14 earthquake and assist with the 2017 vintage.

“The Marlborough wine industry faces some challenges,” Mr Joyce says. “The key impact has been damage to around 20 per cent of the wine storage tanks in the region, and the potential that a lack of storage will affect the ability of the industry to process the full 2017 harvest, which commences in around 15 weeks.” . . 

Animal blamers got it all wrong – Alan Emmerson:

I wrote back in September that we needed to stop playing the blame game over the Havelock North water crisis. We needed to find out and quickly how to fix the problem.

Last week that game reached new heights of absurdity with the Hawke’s Bay Regional Council issuing proceedings against the Hastings District Council.

What they’re actually doing is suing their own ratepayers, which won’t achieve anything except lining the pockets of lawyers.

The interesting point is that it’s not farmers who are now in the gun but the Hastings council over bore maintenance and siting. . . 

Westland lifts its payout prediction:

Hokitika-based Westland Milk Products, New Zealand’s second largest dairy co-operative, has lifted its total operating surplus ( payout) predictionfor the 2016-17 season to range of $5.50 to $5.90 per kilo of milk solids (kgMS).

This is estimated to produce a net return to shareholders (after retained earnings) of $5.30 to $5.70 per kgMS. The co-operative’s previous estimate for the season was a net range (after retained earnings) of $4.55 to $4.95 per kgMS.

Chief Executive Toni Brendish said the lift in payout prediction has been made possible by two factors. . . 

Synlait Increases Forecast Milk Price to $6.00kgMS:

Synlait Milk (NZX: SML; ASX: SM1) has increased their forecast milk price from $5.00 kgMS to $6.00 kgMS for the 2016 / 2017 season.

Synlait planned to provide an updated forecast at the start of February 2017, however Mr Milne said an update now is more appropriate and beneficial for Synlait’s 200 Canterbury milk suppliers.

“We’ve kept a close eye on the global dairy market and the trending increase in dairy prices can’t be ignored. As a result, we’ve increased our forecast milk price to $6.00 kgMS,” said Graeme Milne, Chairman.

Mr Milne said reduced European production over the past three months shows European dairy farmers are responding to lower milk prices. . . 

Dairy volatility has not gone away – Keith Woodford:

Fonterra’s recent upgraded estimate of $6 per kg milksolids (fat plus protein) for the 2016/7 milk price has been welcomed by everyone in the industry. Given that it is only six months since Fonterra’s initial for this season of $4.25, the current estimate should also remind us of the impossibility of predicting milk prices with any accuracy.

This level of inaccuracy is typical of the last three years, where Fonterra’s initial estimates compared to the final price were out by $1.40 in 2014, $2.60 in 2015 and $1.35 in 2016.

Currently, we are about half way through the milk season in terms of production, and most companies will have sold about half of their total seasonal production. With some forward selling, they may even be ahead of this.  It is about this stage of the season that I bring in my price-range estimate to about $1.80 (i.e. plus or minus 90c around a mid-point).   . . 

Plan to diversify Southland economy:

Economic Development Minister Steven Joyce and Primary Industries Minister Nathan Guy today announced government support for a new regional growth plan to bolster the Southland economy.

The Southland Regional Development Strategy Action Plan was developed by the Southland Regional Development Strategy Governance Group and is supported by the Government’s Regional Growth Programme, which aims to increase jobs, incomes and investment in regional New Zealand.

“Southland has a relatively small economy which relies on a limited number of industries. While the regional population is growing, for the past ten years population growth has been significantly slower than in the rest of the country,” Mr Joyce says. . .

Predator Free 2050 Ltd board appointed:

The company which will be a key player in achieving New Zealand’s Predator Free 2050 ambition is now up and running, Conservation Minister Maggie Barry says.

“Today marks the official establishment of Predator Free 2050 Ltd and the appointment of a skilled board of nine directors,” Ms Barry says.

“This company, and its leadership, will be absolutely integral to the success of the Predator Free 2050 programme. Their role will be to direct investment into regionally significant predator eradication projects and the breakthrough science solutions we need to achieve predator free status.”

Formation of the company was signalled in July, when the Government committed to the ambitious goal of eradicating rats, stoats and possums from New Zealand by 2050. . . 

HortNZ celebrates 100 years of representing growers:

 

Today, Horticulture New Zealand celebrates 100 years of representing growers, with its foundations in the New Zealand Fruitgrowers Federation formed in 1916.

“Our focus is on uniting fruit and vegetable growers to give a strong and unified voice on matters related to our part of food supply in New Zealand and our export markets,” Horticulture New Zealand President Julian Raine says.

“Looking back at the history of the organisation, there is very much a recurring theme of creating an environment where growers can innovate and grow and in doing so, contribute to the economy with jobs and exports.” . . .

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