Rural round-up

November 4, 2017

Beef + Lamb pulls plug on the Glammies – Nicole Sharp:

For 10 years, farmers from throughout the country have entered their best of best in the Golden Lamb Awards, better known as the Glammies.

This year, looking to reinvest farmer levies in more crucial areas, Beef + Lamb New Zealand has pulled its funding from the event. Nicole Sharp reports.

After 10 years of celebrating farmers’ best-raised lamb, the Glammies are no more.

Since the event’s inception, Beef + Lamb New Zealand Ltd (BLNZ) has partnered with Beef + Lamb New Zealand Inc to run the event, with BLNZ the predominant funder.

In the past six months, BLNZ has been consulting its farmers and reviewing its strategy and anticipated revenue stream through to 2022. . . 

Wool prices lift but long way to go – Simon Hartley:

The worst appears to be over for wool prices but prices are still very low and the industry is ”still not out of the woods yet”, ASB senior rural economist Nathan Penny says.

Prices for 39 micron wool, for example, had lifted 25% from the record low level set in July this year, he said. Despite the lift, 39 micron prices remained 28% below the 10-year average level, Mr Penny said in the latest ”Farmshed Economics” report.

Meanwhile, mid micron prices had been stable over recent months. Prices bottomed out earlier than coarse types towards the start of the year. . . 

 NZ King Salmon shares hit record on guidance uplift, sales growth -Tina Morrison:

New Zealand King Salmon Investments shares rose to a record after the fish farmer raised its 2018 earnings guidance, saying it expects to lift volumes while maintaining prices and improving production.

The stock climbed 3.5 percent to $2.35 and has soared 78 percent this year. They were sold in the initial public offering in September 2016 at $1.12 apiece. . . 

 – Keith Woodford:

[The article below was intended to be published some weeks back at The Conversation. The Conversation is the online portal, funded by Universities in Australia, New Zealand and the UK, where academics are encouraged to communicate and converse with non-academics. However, this particular article was blocked at the last minute by the Senior Editor(s) at The Conversation, having previously been approved within their editorial system. The Senior Editor(s) felt that the interests of associated commercial parties, who might benefit from dissemination of the article, were too great. A fuller story of that publishing saga will be posted shortly.
The content, formatting and supporting links are shown as originally agreed with The Conversation and reflect the prior input of one of their editors. This article can be freely republished, with or withut this foreword, but retaining the title as posted here, and with acknowledgements as to source [https://keithwoodford.wordpress.com].

Authors: Keith Woodford & Boyd Swinburn
Disclosures: See end of article

Type 1 diabetes, an autoimmune disease in which the body attacks its own insulin-producing cells, is on the rise globally.
Early evidence of an association between type 1 diabetes and a protein in cow milk, known as A1 beta-casein, was published in 2003. However, the notion that the statistically strong association could be causal has remained controversial.
As part of a seven-person team, we have reviewed the overall evidence that links A1 beta-casein to type 1 diabetes. Our research brings forward new ways of looking at that evidence. . . 

Sheep dairy better match for clean green image:

New Lincoln research points to sheep dairy better fulfilling the green credentials New Zealand uses to differentiate its produce in the global market than its cow counterparts.

Senior Lecturer in Agribusiness Management Dr Nic Lees co-authored the paper “Competitive advantage through responsible innovation in the New Zealand sheep dairy industry.”

It finds, rather than competing on cost the sheep dairy industry should promote sustainability and environmental benefits, and be innovative…

Website covers new ground for fertiliser spreaders:

A new website has been launched by the New Zealand Groundspread Fertilisers Association (NZGFA). The site – www.nzgfa.co.nz – promotes best practice fertiliser spreading. It was recently unveiled alongside a new logo at the NZGFA 61st annual conference.

The new site provides industry news and advice for groundspreaders as well as information for farmers, growers and other fertiliser users on how to find a local groundspreader accredited to Spreadmark, the industry’s standard. There is also career advice for prospective groundspreaders, and a video that explains training as well as potential salary. . . 

Allied Farmers unsure about the year ahead with weak first-quarter livestock sales – Sophie Boot:

(BusinessDesk) – Allied Farmers’ first-quarter livestock earnings fell, although the rural services firm says it’s too early to say whether it will recover by the end of the current half or the financial year.

Earnings in the three months ended Sept. 30 were below the same period a year earlier “largely due to the impact of the wetter spring weather, which has generally had the impact of reducing livestock sales in this quarter,” the Hawera-based company said in a statement. Allied Farmers had previously predicted “careful growth” in the livestock business, tempered with a flat outlook for the meat processing business as overseas prices remain low. . . 

Harry is a prince among bull calves:

Harry the Hereford-cross, a hungry four-month old bull calf weighing 214kg has beaten his rival hands down in a competition between two DairyNZ research and development farms to raise the heaviest IHC calf.

Harry looked good from the start, arriving early in the season and weighing 50kg at birth. He had the right bloodline to wear the crown. His Dad was a pure bred Hereford and his Mum was a Friesian so he was already set on a winning course, according to Scott Farm Manager Ben Fisher. . . 

“When you cross a beef bull with a Friesian or dairy cow you get what’s known as hybrid vigour,” Ben says. “He’s got very good genes.”


Rural round-up

September 6, 2017

Ag-tech edge requires boldness – Conor English:

Just as the axe handle allowed the human race to prevail, New Zealand needs to put its mind to discovering the next combination of technologies that is going to keep our country at the forefront of ag and food technology.

That is going to take capital, risk, and some out-of-the-box thinking.  There is much to do if we want to lead the race, writes Conor English.

The axe handle was incredibly important for the human race.

By combining three previously separate elements — a stone, a stick and string — humans invented a tool that gave them leverage and strength to better hunt animals that were faster and stronger than us. . . 

New technologies helping clean up NZ’s waterways:

New Zealand farmers and companies are starting to use Internet of Things (IoT) sensors, data analytics and automation to decrease impact on New Zealand rivers, a leading national tech expert says.

In countries, right across the world the IoT devices are being used to help clean up water, New Zealand IoT Alliance executive director Kriv Naicker says.

Irrigation is by far the largest use of water in New Zealand, making up 65.9 percent of water use between 2013 and 2014, the Ministry for the Environment says. . . 

Farmers becoming ‘lepers’ due to cattle disease scare – Gerard Hutching:

South Canterbury and Otago beef farmers are unwitting victims of the cattle disease Mycoplasma bovis even though testing so far has shown their livestock are free of any traces of the disease.

A farmer who rears calves as dairy support told Stuff he had a contract worth $100,000 for 200 calves cancelled as soon as the buyer heard the animals were being tested.

The Ministry for Primary Industries (MPI) has indicated these farmers will not be eligible for compensation. . . 

Provisional tax relief at last – Chris Cunliffe:

Provisional tax has long been difficult to get right and expensive to get wrong.

But not anymore: the much-maligned old rules have been put out to pasture.

These assumed farmers and growers could correctly forecast their income tax liability ahead of time, but if their prediction was not spot-on they got slapped by Inland Revenue’s steep interest on top of the underpaid amount.

Now new rules provide greater certainty about payments and reduce compliance costs for businesses who calculate their payments using the standard method. This method means you base your payments on 105% of last year’s income tax liability (or 110% of the previous year’s liability if your return has not been filed). Most taxpayers pay provisional tax this way. . . 

Dunedin produces mastitis diagnostics – Sally Rae:

A Dunedin-based startup has produced a diagnostic test kit to help farmers deal with the costly problem of bovine mastitis.

Mastitis, which is inflammation of the udder, is a major financial burden to the dairy industry, both in New Zealand and globally.

It was predominantly treated using antibiotics and mastitis treatment was the largest single use for animal health antibiotics.

On average, it was estimated to cost about $60,000 a year for an 800-cow herd, and the industry, as a whole, about $280 million.

Mastaplex founder Dr Olaf Bork has been developing products for treating mastitis at the Bayer Centre for Animal Health, before patenting his own research and founding the startup company. . . 

Wet flattens milk curve – Hugh Stringleman:

The extraordinary number of wet days over winter has raised the worry of a repeat spring milk production plateau rather than peak.

Soils in almost all dairying districts were saturated and fine weather was needed to kick-start spring grass growth and milk production.

Dairy farmers in northern provinces had almost completed the extended winter pasture feeding rotation when cows were break-fed the saved autumn pasture growth for 90 days. . . 

Major increase in community conservation funding:

Conservation work in New Zealand will be supercharged by substantially increasing the amount of money available to hard-working volunteer groups, National Party Conservation Spokesperson Maggie Barry says.

“We have a beautiful natural environment, and the efforts of local communities are crucial to protecting our landscape and native species for future generations,” Ms Barry says.

To support these groups, National will more than double the amount of funding available through the Department of Conservation Community Fund, from $4.6 million to $10 million a year. . . 

Spring farm sales upturn expected – Alan Williams:

Winter calving and lambing preparations and rainfall impacts have slowed the rural real estate market but prices have remained firm.

With an increased milk payout and higher beef prices “a quiet air of confidence or perhaps relief is quietly growing with the rural sector”, Real Estate Institute rural spokesman Brian Peacocke said.

Sales for the three months to the end of July were down by 76 to 392 compared to the end of June when there were 459 sales. In the July period last year there were 468 sales. . . 

New Zealand King Salmon fy17 result and dividend exceed expectations:

A combination of operational achievements and a successful market positioning strategy underpins strong growth for New Zealand King Salmon Investments Ltd which today reported its full year result for the twelve months to 30 June 2017 (FY17). The Board affirms the Company’s full year FY18 forecast as presented in its Product Disclosure Statement (PDS) dated 23 September 2016, prepared for its Initial Public Offering (IPO).

Key highlights include:

• Net profit after tax of $22.8 million, up 778% on the comparable twelve month period to 30 June 2016 (FY16) and 125% ahead of the Prospective Financial Information forecast (PFI) . . 

Fieldays reveals post-event survey results and theme for 50th anniversary in 2018

Results from a recent visitor and exhibitor survey has New Zealand Agricultural Fieldays celebrating another successful year as preparations begin for their 50th anniversary event in 2018.

In the survey, 96 per cent of visitors rated their experience of Fieldays 2017 as “good” to “excellent” and 92 per cent of exhibitors said they would exhibit again.

The iconic event, billed as the largest of its kind in the southern hemisphere, saw a record 133,588 people through the gates – its highest visitor number yet. . . 


Rural round-up

July 8, 2016

Sheep industry recognises top performance:

The sheep industry celebrated its best and brightest at the Beef + Lamb New Zealand Sheep Industry Awards in Masterton last night.

This is the fifth year the industry’s top performers have gathered to acknowledge outstanding contributors in genetics, science and commercial lamb production.

Amongst the award recipients were Northland sheep breeder Gordon Levet, who was recognised for his long-term work breeding towards worm resistance, while Hawkes Bay farmers James and Jane Hunter won the Blackdale Stud Sheep Industry Supplier of the Year. . . 

Amethyst the foundation jewel of Hereford family – Kate Taylor:

Five generations of one family have sat at the head of NZ Herefords. Kate Taylor went to Akitio, southeast of Dannevirke, to meet the latest one.

Akitio farmer Philip Barnett has followed in the footsteps of his father, grandfather, great grandfather and great, great grandfather to become president of NZ Herefords.

Barnett and wife Lyn own the Kaitoa Hereford Stud, which traces its origins back to the importation of a cow called Amethyst in 1882.

It is a cow family that still remains a linch pin of the stud more than 130 years later, along with the Kaitoa Lady, Princess and Leonora cow families. . .

Bobby calf welfare: everyone has a role to play:

As the dairy industry’s spring calving kicks off, the Bobby Calf Action Group (BCAG) is reminding everyone who handles calves of the important role they have to play.

“The rubber hits the road now, it’s up to everyone across the supply chain to meet the required standards of care for bobby calves this season,” says Ministry for Primary Industries Deputy Director General, Scott Gallacher.

Eight organisations make up the BCAG which was formed at the end of 2015 to accelerate and add to existing measures aimed at ensuring everyone involved with bobby calves applies best practice in their handling and care. . . 

Dairy farms that survive the current downturn will be leaner, more agile and resilient – Rees Logan:

Two difficult seasons of below-average dairy payouts, and a third being forecast, have delivered a big wake-up to the dairy farming industry.

The average payout for the current and last two seasons is approximately $4.55 (including dividend) against DairyNZ’s estimated average breakeven payout required by farmers of $5.25. This means three seasons where most farmers have had to take on additional debt just to survive.

Dairy farmers have been forced to take a ruthless approach to expenditure and to switch their focus from production to profitability in a bid to cut debt. . . 

Irrigation 101 to upskill professionals:

A beginner’s guide to irrigation will be offered in Hawke’s Bay next month for professionals who need to better understand the sector to help their dealings with farmers.

The Irrigation Fundamentals course is a two day workshop offered by IrrigationNZ to introduce non-farmers to the principles of irrigation management. The course, particularly targeted at frontline staff of organisations and businesses that provide services to the irrigation industry, will take place in Hastings on 3rd and 4th August.

Rural advisors, environmental consultants and regional council staff are among those who have attended the course so far in the South Island. . . 

NZ venison prices rise amid tight supply as farmers rebuild herds -By Tina Morrison:

(BusinessDesk) – New Zealand meat processors are having to pay more to secure supply of local venison to service their overseas contracts as farmers retain their breeding hinds to rebuild herds.

Spot prices for a 60-kilogram AP stag have hit $7.85/kg, up from $6.60/kg this time last year and the highest level for this time of year since 2011, according to AgriHQ. Venison production dropped 36 percent in May from the year earlier month, and is down 23 percent in the processing season so far, from Oct.1 through May 31, according to AgriHQ. . . 

Bright fisheries future:

New Zealand fisheries are in good heart, with great potential for the future, Seafood New Zealand Chief Executive Tim Pankhurst said today.

He was speaking at the Marine Societies of New Zealand and Australia conference at Victoria University of Wellington, which has attracted more than 350 marine scientists from both countries.

Pankhurst says the outlook for the New Zealand seafood industry is bright.
“We are not going to run out of fish.”

“We have a seafood sector that is in good heart. Our stocks are sustainable – it’s not just the fishing industry saying that, the science supports it, and the world wants what we produce – and aquaculture is expanding.” . . 

NZ King Salmon reviewing capital options as IPO rumoured – Paul McBeth:

(BusinessDesk) – New Zealand King Salmon Investments says it’s reviewing its capital options to support the development of three new farms in the Marlborough Sounds after Australian media reported the company was looking at an initial public offering.

The Nelson-based salmon farmer and processor hired Credit Suisse and First NZ Capital to test investor interest in Australia and New Zealand for a dual-listing on both sides of the Tasman, valuing the company at $200 million, the Australian Financial Review’s Street Talk column reported. . . 

NZ Yarn Appoints New CEO:

Colin McKenzie has been appointed as the new CEO for Christchurch based NZ Yarn Ltd, effective Monday, 4 July.

NZ Yarn manufactures and markets high quality wool spun yarns for the carpet industry worldwide.

McKenzie was most recently CEO and Managing Director of Cavalier Corporation. He has extensive experience in the textile and manufacturing sectors, and for companies servicing local and export markets.

NZ Yarn is 100% New Zealand owned by Carrfields Primary Wool and several independent investors, who bought it from receivers in 2014. . . 

Global Uncertainity Affects Wool Market:

New Zealand Wool Services International Limited’s C.E.O, Mr John Dawson reports that the ongoing fallout from the Brexit result, continued minimal activity from China and a strong New Zealand dollar have compounded to make significant inroads into local wool values.

The weighted currency indicator compared to last sale lifted 0.66 percent, however against the GBP the New Zealand dollar strengthened a further 4.4 percent making a shift of over 13 percent since the Brexit announcement. Market sentiment is bearish as many clients take a cautious approach during this unsettled period. . . 


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