Rural round-up

October 3, 2015

Federated Farmers’ President praises WTO and criticizes those stalling the TPP at Geneva Forum :

The last 20 years of the World Trade Organisation (WTO) have provided an objective framework on which to base our international trade and seen the organisation provide great assistance to small countries like New Zealand.

That was the message from Federated Farmers’ President Dr William Rolleston, Vice President of the World Farmers’ Organisation, in his address overnight to a WTO Public Forum in Geneva.

“New Zealand is a small country, which means our political influence bilaterally can be limited. Without WTO rules, disputes are more likely to be settled on bargaining power rather than the evidence,” said Dr Rolleston. . .

Fossicking in Fonterra’s annual report – Keith Woodford:

The release of Fonterra’s annual report on 24 September coincided for me with a long plane trip back from China. I used the time trying to work out what all the numbers really mean. It was not an easy task.

Fonterra’s annual report – like most reports from large companies –provides masses of numbers. Some are clearly there for public relations purposes. Others are there to meet the required rules of the International Financial Reporting Standards (IFRS). And then there is another set of numbers which Fonterra constructs according to its own rules.

These additional measures are called non-GAAP measures; i.e. ‘non-generally accepted accounting measures’. Fonterra itself acknowledges that these measures are not standard between companies, so comparison must be made with caution. . . 

‘Cloud of dread’ over Filipino workers:

A Filipino worker in the dairy industry says people with false documents are being denied visas and sent home, despite many of them not knowing their paperwork was wrong. 

Immigration New Zealand has confirmed it is investigating multiple work visa applications involving Filipino dairy workers in the South Island, after staff noticed false claims of work experience and qualifications on visa applications.

Roberto Bolanos is a dairy farmer in North Canterbury, who arrived from the Philippines 10 years ago.

Mr Bolanos said the problem started with recruiters in the Philippines who offered people dairy jobs in New Zealand, along with documents, at a cost of, in some cases, $15,000. . . 

Government to consider amending National Bovine TB plan:

An independent Plan Governance Group made up of representatives of funding organisations, OSPRI, and wider stakeholder interests, has reviewed the bovine tuberculosis National Pest Management Plan (TB Plan). Today it gave its final advice on the proposed changes to the TB Plan to the Minister for Primary Industries, Hon Nathan Guy. The changes build on the significant progress made by OSPRI under the current TB Plan.

The Plan Governance Group considered a range of technical and scientific advice, and strongly believes that the eradication of TB from New Zealand is both feasible and economically justifiable. The proposed changes to the TB Plan were consulted on with farmers, local communities, and other stakeholders in June and July this year. Over 400 quality submissions, covering a wide range of issues, were received on the draft Plan proposal, and the Plan Governance Group took them into account as it prepared its final proposal to the Minister. . . 

Rabobank Beef Quarterly Q3 2015: Traded Volumes Are Reaching Quota Limits:

New Zealand and Australia beef exports to the US are set to reach their quota limits in Q4. Meanwhile, global economic conditions—such as the appreciation of the US dollar and the depreciation of the yuan and the real—are having an impact on beef trade, according to the Rabobank Beef Quarterly Q3.

A strong US dollar has led to a reduction in US exports and support for US imports, while a weakening Chinese economy and devaluation of the yuan are curbing beef prices in China, and the devaluation of the real is expected to support Brazilian exports in the coming months. “With little change expected in major beef-trading economies in the coming quarter, other than a possibility of the US FOMC raising interest rates, a strong US currency is expected to continue to affect global beef trade”, according to Angus Gidley-Baird, Senior Animal Protein Analyst at Rabobank. . . 

Commission issues second draft determination on wool scouring assets application:

The Commerce Commission has released a second draft determination maintaining its preliminary view that it should allow Cavalier Wool Holdings (CWH) to acquire New Zealand Wool Services International’s (NZWSI) wool scouring business and assets.

The Commission released its preliminary view on CWH’s application in March 2015 and has since received further information and submissions from interested parties on various matters. The second draft determination has been released to allow interested parties the opportunity to submit on this new information.

Commission Chair Dr Mark Berry said having considered the new information, the Commission is still of the view that the public benefits of the acquisition would outweigh the loss of competition. . . 

Ballance thriving as it plans next 60 years:

Ballance Agri-Nutrients achieved record sales and returned $76 million to shareholders while keeping margins tight and prices affordable, Chairman David Peacocke told the annual meeting of shareholders in Tauranga on Wednesday.

He said the result for its financial year ended 31 May 2015 capped off a milestone year for the co-operative, which celebrated 60 years since the first shares in legacy company Bay of Plenty Fertiliser were issued. Noting the co-operative “not only survives but also thrives”, he said its core value of collective strength remained unchanged while it evolved to meet the current needs of farming.

“What has changed is that farmers are busier, operating over larger properties and working within increasingly tight environmental demands. So along with a secure supply of the right nutrients, we continually broaden our scope to tailor our products, our technology solutions and our advice for today’s farms, and the farms of the future.” . . .

Rural round-up

October 2, 2015

Chinese deal vital, SFF says – Sally Rae:

Silver Fern Farms could be facing insolvency if shareholders do not approve a 50:50 joint venture with Chinese company Shanghai Maling.

Voting has opened on the proposal before a meeting of shareholders at Dunedin’s Forsyth Barr Stadium on October 16.

Shanghai Maling, a subsidiary of state owned food giant Bright Food Group, is proposing to take a 50% stake in Silver Fern Farms, in return for an investment of $261million. . . 

Hold off on Silver Fern vote, farmers urged –  Sally Rae:

Farmers are being urged to hold off voting on the Silver Fern Farms joint venture deal with Shanghai Maling, with hints that ”concrete” alternatives will emerge.

Voting is under way and closes at 10.30am on October 14, before a special meeting in Dunedin on October 16, where two resolutions will be voted on.

As well as the Shanghai Maling proposal, the meeting will also consider the shareholder resolution, promoted by Heriot farmer Allan Richardson and John Cochrane, from Clinton, seeking full analysis of the benefits and risks of a merger with Alliance Group. That resolution was not supported by Silver Fern Farms’ board. . . 

Bright lets sparks fly – Alan Williams:

Bright Dairy group is an excellent strategic investor in Synlait Milk, the latter’s chairman Graeme Milne says.

“It’s more than just money they bring.

“They’ve got the knowledge and capability to help us make good decisions.”

Shanghai Maling, the proposed new investor for Silver Fern Farms, is part of the wider Bright Dairy-Bright Foods group. . . 

Super-drone sprayer comes with risks -Robin Martin:

The first unmanned helicopter certified to spray chemicals in New Zealand could ultimately save back-country farmers thousands of dollars but it comes with a hefty price tag – and a safety warning. 

The Yamaha RMAX is a beast by drone standards, powered by a 260cc engine and weighing in at close to 100 kilograms.

Yamaha business development manager Geoff Lamb and his team put the chopper through its paces for a gathering of curious farmers, spraying contractors and radio-controlled aircraft enthusiasts at a Lepperton farm in Taranaki this week. . . 

Fonterra boss offers $4m salary freeze:

The chief executive of Fonterra has asked for his multi-million dollar salary to be frozen this year as the co-operative goes through major cost cuts and slashes hundreds of jobs.

Theo Spierings requested the freeze on his base salary on the same day Fonterra announced it was slashing hundreds more jobs as part of a business shake-up, taking total layoffs to 750.

That came just days before the company released its annual result.

A spokesman said Mr Spierings went to a meeting of Fonterra’s people, culture and safety committee on 21 September and requested that his base salary of about $4 million for the 2015/16 year be frozen. . . 

Nutrient loss under the spotlight:

New Zealand’s shift from a pasture-based model to high feed-input dairy farms will come under the microscope in a joint research project involving Ballance Agri-Nutrients, AgResearch, DairyNZ and Tatua, in partnership with the Government’s Sustainable Farming Fund initiative.

The two year project, led by AgResearch’s Dr Stewart Ledgard, will use case study farms varying in intensity of feed use to examine effects of their system changes over the last decade on emissions, production and profit as well as testing options for improving their sustainability.

“Locally there is strong interest in understanding implications for water quality of dairy intensification through increased use of supplementary feeds and how effects can be minimised, while internationally there is a desire for food products to be produced with efficient use of resources and reduced wider environmental impacts”, says Dr Stewart Ledgard. . . 

Aussies nab heaviest fleece record:

Well it’s official New Zealand has been fleeced by the Australians ..who now hold the world record for the heaviest fleece shorn off a merino.

The Australians were quick to yell they had found a wild merino near Canberra in early September with a fleece which weighed in at 40 kilograms.

Otago’s ‘Shrek the sheep’ held the record up until last year when another wild merino – dubbed Big Ben – was found in the Mackenzie Country with a fleece weighing 28.9 kgs. . . 

Steady wool market:

New Zealand Wool Services International Limited’s C.E.O, Mr John Dawson reports that the more restricted wool type offering in the North Island sale of 6,165 bales saw a 97 percent clearance and a generally steady market.

The weighted indicator for the main trading currencies firmed 1.66 percent compared to the last sale on 24th September only impacting on the finer end of the offering.

Mr Dawson advises that the stronger New Zealand dollar and limited interest in the Fine Crossbred longer wools saw prices ease 2 to 4 percent with shorter types better supported with pries 1 to 3.5 percent softer in local terms. . . 

Rural round-up

September 26, 2015

Beef exports hit $3 billion in record season:

The value of total goods exported was $3.7 billion in August 2015, up $197 million (5.6 percent) compared with August 2014, Statistics New Zealand said today. Meat and fruit exports led the rise.

Beef exports continued to rise, up 46 percent ($61 million) in August 2015 compared with the same month last year. The beef export season runs from 1 October to 30 September.

“With one month to go in the 2014/15 beef export season, beef exports are at a new high of $3 billion,” international statistics senior manager Jason Attewell said. “So far this season, 404,000 tonnes of beef have been exported, and if we export at least 18,000 tonnes next month we’ll surpass the peak 2003/04 season for quantity exported.” . . 

June floods cost the primary sector $70 million says MPI:

The Ministry for Primary Industries (MPI) has today released a report on the economic impacts to the primary sector of the heavy rain and flooding that affected the western North Island in June.

The total on-farm cost of the June storm affecting Taranaki and Horizons regions has been assessed at approximately $70 million with up to 800 rural properties affected.

MPI Director of Resource Policy, David Wansbrough, says the greatest impact of the storm was on sheep and beef farms, due to landslides and damage to infrastructure.

“Around 460 sheep and beef farms were affected, some with significant levels of infrastructure damage and lost productive capacity. The on-farm economic impact to sheep and beef farms is estimated to total $57.6 million. . . 

People power:

When Lyn Neeson, who farms near Taumaranui, saw the Whanganui and Ohura rivers rise rapidly in June, she figured this spelled trouble for farmers downstream and she was right. 

Since July she has been working four days a week in Whanganui as the coordinator for the RST. She has the task of assessing the reports coming to her from farmers and people such as Harry Matthews and Brian Doughty who know the region and the farmers. 

A major problem is damage to fences, she says. . . 

Origin of Beef Informs Shopper Decisions:

Consumer research shows 89 per cent of supermarket shoppers in key international beef markets consider “country of origin”, when deciding which beef product to purchase.

Beef + Lamb New Zealand chief executive Scott Champion says this insight informs how the organisation works on the ground to boost sales of New Zealand origin beef.

“We use a three-pronged approach that gives consumers reasons to buy New Zealand beef ahead of other countries. We tell the New Zealand story – including environment and animal welfare aspects – and highlight our food safety systems, as well as the health and wellbeing attributes of New Zealand beef.” . . .

Dissapointing 2014/15 result for farmers, encouraging signs for coming season:

Fonterra Shareholders’ Council Chairman, Duncan Coull, said the final payout for the 2014/15 season of $4.65 for a fully shared-up Farmer is a disappointing result for the Co-op’s Farmers.

Mr Coull: “While it is encouraging to see the improvement in Fonterra’s performance in the second half of the season Farmers will be disappointed with the 25 cent dividend which was at the lower end of their expectations.

“Farmers had an expectation the business would have been able to take greater advantage of the low Milk Price environment.”

Mr Coull was encouraged by the Co-op’s improved second-half performance which saw many parts of the business operate at a high level. . . 

Wool Market Firm:

New Zealand Wool Services International Limited’s C.E.O, Mr John Dawson reports that the South Island sale this week saw a strong market with steady support.

Of the 9,250 bales on offer 84.4 percent sold.

The weighted indicator for the main trading currencies was down 0.72 percent compared to the last sale on 17th September, helping hold up local price levels.

Mr Dawson advises that in line with other Merino growing markets, local prices for Merino Fleece 18 to 23.5 microns compared to when last sold on 10th September, saw a slight easing with prices 2 to 6 percent cheaper. . . 

Waikato modelling results show high costs to farmers and region:

DairyNZ is encouraging Waikato dairy farmers to get involved in regional policy development processes after the release of new information highlighting the potential for high costs to their businesses.

Commenting on new modelling released<> today by a group of technical experts, DairyNZ’s strategy and investment leader for productivity, Bruce Thorrold says the analysis shows there is potentially a very high economic and community cost to the region of changing land use and management practices. Estimates range from $1.2 billion to $7.8 billion depending on the degree of improvement in water quality modelled.

“That’s not surprising given the size and importance of the pastoral industry in the Waikato,” he says. . .

Best Sauvignon Blanc in the World for Rapaura Springs in London:

Rapaura Springs Marlborough Sauvignon Blanc 2015 has impressed the judges and taken home the Sauvignon Blanc Trophy at the prestigious International Wines and Spirits Competition (IWSC) in London.

The IWSC was established in 1969 and is one of the world’s pre-eminent wine competitions, held in high regard with consumers and wine trade alike. The formidable reputation of its judging process, and judges themselves, set the standard for wine competitions globally. . . 

Rural round-up

September 12, 2015

Meat returns to rise over next year – Alan Royal:

A lower New Zealand currency will do much of the running for sheep meat and beef returns to farmers over the next year.

Beef + Lamb NZ expected slight increases in product values but they were likely to be outweighed by lower volumes, especially for lamb.

B+LNZ forecast an average lamb price of $5.47/kg for the export year ending September 30, 2016, a 4% lift on the provisional figure for the year finishing in a couple of weeks. . .

Few animal welfare issues in dry North Canterbury:

The Ministry for Primary Industries (MPI) has complimented farmers on how they have managed animal welfare through the prolonged North Canterbury drought.

Canterbury-based MPI Animal Welfare Manager Peter Hyde says there have had been very few animal welfare issues to deal with in North Canterbury.

“Sheep are a bit lighter than ideal but not to the extent where they are below the minimum standard that breaches of the Animal Welfare Act.”

Mr Hyde says farmers have adopted different management strategies to maintain the condition of their animals. . . 

Finalists in the NZ Innovators Awards:

Finalists in the New Zealand Innovators Awards 2015 demonstrate that Kiwi innovation is thriving, with a 24 per cent increase in entries that are of world class standard.

Announced today are the finalists who represent game changing innovation from every corner of the country, with new products and services from a broad range of industries and business disciplines. Included in the finalists are an exciting range of entries, from electric farm bikes, dairy free cheese, anti-cancer treatments and free school lunches. Spoilt for choice with this year’s entries – these are ordinary Kiwi’s doing extra-ordinary things.

New Zealand Innovation Council CEO Louise Webster says the 2015 entrants give a real sense that Kiwi innovation is moving into the main stream, demonstrating world leading approaches to innovation with many businesses going global from day one. . . 

Wool Jumps:

New Zealand Wool Services International Limited’s Marketing Executive, Mr Malcolm Ching reports that a weakening New Zealand dollar and steady off-shore buying interest saw all wool types improve for the South Island offering of 9,300 bales with 87 percent selling.

The weighted indicator for the main trading currency came down 1.29 percent compared to the last sale on 3rd September.

Mr Ching advises that compared to the last time sold on 27th August, Merino Fleece 21.5 micron and finer were 5 to 10 percent dearer with 22 to 23.5 microns 1 to 2 percent firmer. . . 

Ballance Farm Environment Awards Showcase Sustainable Farming Success:

Entering the Ballance Farm Environment Awards is a great way for farmers to show they care about the environment, say Waikato dairy farmers Susan O’Regan and John Hayward.

The couple entered the Waikato Ballance Farm Environment Awards for the first time last year and were thrilled to win two category awards, including the LIC Dairy Farm Award.

“Waikato Regional Council has been working with us on a planting programme on the farm for several years and they encouraged us to enter,” Susan says.

“We went in to the competition pretty cold and didn’t really know what to expect. We didn’t do any window dressing on the farm and we were fairly relaxed when the judges showed up and started asking us questions.” . . .

PGP delivering much needed support to rural communities:

Primary Industries Minister Nathan Guy says a further 400 rural professionals will be trained in 20 workshops delivered over the next month to support farming families and rural communities.

“These workshops are about creating a culture of mental health awareness and training within service organisations, a key outcome from ‘Transforming the Dairy Value Chain’, a Primary Growth Partnership (PGP) programme between the Ministry for Primary Industries, DairyNZ and Fonterra.

“This adds to the more than 400 rural professionals already trained in mental health awareness by the programme.

“While the economic benefits of PGP are well known as the Government’s flagship research and development programme for the primary sector, it’s great to see it is also supporting the wellbeing of dairy farmers in what is a difficult year for some. . . 

$345,000 for wilding conifers in War on Weeds:

Five groups tackling the major problem of wilding conifers have received $345,000 from the Community Conservation Partnerships Fund as part of the War on Weeds, Conservation Minister Maggie Barry says.

“Wilding conifers cover more than 1.7 million hectares of land, and are advancing at an estimated rate of 5 per cent a year,” Ms Barry says.

“They alter entire landscapes and are notoriously difficult to clear once established, representing a major threat to our unique New Zealand ecosystems, land and farms.” . . .

Sharp Blacks ‘meat’ victory for third time:

New Zealand’s national butchery team the Pure South Sharp Blacks have carved their way to victory for the third time, during last night’s Tri-Nations Butchers’ Challenge.

The team of butchers have been reigning champions for three years now, and last night they once again showed their world-class form at Auckland’s Shed 10.

Going up against the best-of-the-best from Australia and England, the Sharp Blacks endured three hours of intense competition, turning a side of beef, pork and whole lamb into art based on a Kiwiana theme. . . 

PEP agrees to buy Manuka Honey for undisclosed sum – Suze Metherell:

(BusinessDesk) – Pacific Equity Partners, the biggest private equity firm in Australia and New Zealand, has agreed to buy Manuka Health, the functional food and dietary supplement company, for an undisclosed amount, subject to Overseas Investment Office approval.

The Te Awamutu-based honey firm currently has 37 shareholders, according to records on the Companies Office, with Watermann Capital a cornerstone owner. Founder Kerry Paul owns 7.3 percent, while Milford Asset Management owns 6.3 percent. The New Zealand Herald has reported the purchase price was $110 million.

Manuka Health was founded in 2006 and exports 90-plus products based on propolis, royal jelly, bee pollen, and manuka honey to 45 countries. It has annual turnover of more than $50 million. . . 

More biosecurity detector dog power for Christchurch:

Two new biosecurity detector dog teams have started at Christchurch airport to sniff out risk goods carried by international travellers, says the Ministry for Primary Industries (MPI).

Anna Howie and Alice McKay started work on Monday. They finished their detector dog handler training in Auckland last week, along with 9 other new MPI handlers who have since started at Auckland and Wellington.

Anna will work detector dog Frank (labrador), originally sourced from an Australian customs breeding programme. Alice will work with Pip, a brand new labrador detector dog purchased from a private home in Hastings. . . 

Dairy goat industry gets $3.6 million research boost:

A research grant of $3.63 million from the Ministry of Business Innovation and Employment is set to boost dairy goat productivity in the near future.

The three year study is led by Professor Russell Snell and Associate Professor Klaus Lehnert from the Faculty of Science at the University of Auckland.

The research is aimed at accelerating sustainable productivity gain within the Dairy Goat Co-Operative (NZ) Ltd (DGC) with the primary product target of high value infant formula. . . 

Cadrona Extend Opening Hours & On Track to Break Snowfall Record:

Cardrona is set to have the best season it’s had in 20 years – just 15cm off beating its own record of 333cm total snowfall in a season. The resort is experiencing one of the best seasons in regards to snowfall and snow conditions that it has seen in the past two decades, and with the longest season in the South Island, there are still 4 weeks to break the record.

Spring has officially kicked off with a few early September snowfalls gifting Cardrona guests ideal snow conditions to start the spring season. Currently even Cardrona’s lowest lift, the Valley View Quad, still boasts superb conditions both off and on-piste. . . 

Rural round-up

August 25, 2015

Five Otago entries for farmer of year award – Sally Rae:

Five Otago farming businesses are among those entered for the 2015 Lincoln University Foundation South Island Farmer of the Year award.

Twelve entries have been received from throughout the South Island, including a West Coast farm for the first time in the history of the competition.

Operations range from sheep and beef farms to a marine mussel farm, saffron grower and fruit producer. . . 

Pipes full, water coming soon – Alan Williams:

The pipes are full and ready to start irrigating stage one of the Central Plains Water (CPW) scheme in Canterbury.

Once the control system was fully tested over the next few weeks the valves could be turned on, chief executive Derek Crombie said.

The official target date was September 1 but the practical timing for water to flow to most of the 120 farms involved would be late September or early October, depending on rainfall levels and ground temperatures. . . 

Science close to unlocking velvet’s secret:

New Zealand and South Korean scientists may soon be able to identify the compounds that give deer antler velvet its immune-boosting properties.

If successful, it would allow velvet extracts to be sold with a precise measure of the active ingredients they contain. Deer Industry New Zealand (DINZ) says this will be an important step in getting such products registered for sale as healthy functional foods. . . 

Conservation planting crowdfunded:

Crowdfunding might be better known for assisting fledgling businesses but it is also helping restore New Zealand waterways.

The Million Metres Streams Project, set up by the Sustainable Business Network in collaboration with Enspiral, is New Zealand’s first conservation crowdfunding initiative.  

Launched in October last year, the project gave people the opportunity to contribute to the restoration of waterways. It has already funded almost 5km of riparian restoration work. . . 

Deadly rattle detected in Cuban maracas:

Biosecurity staff detected a deadly rattle in a set of souvenir maracas carried by two air passengers arriving in New Zealand from Cuba.

The couple declared the Cuban percussion instruments to Ministry for Primary Industries biosecurity staff at Auckland airport earlier this month.

X-ray screening revealed the maracas used red seeds for their rattle. MPI later identified the seed asAbrus precatorius, commonly known as crab’s eye and rosary pea.

The seeds contain abrin, which is more toxic than ricin – a deadly poison associated with spies and biological weaponry. . . 

Feed field days address fluctuations:

Tips and information to help manage the ups and downs of fluctuating milk price will be provided at a series of DairyNZ events in September and October.

The Feed Tactics field days will focus on helping farmers get the best returns from all feeds used on farm.

The nationwide events follow on from one-on-one feed review visits which provided more than 750 farms with an assessment of feed allocation and grazing management in early spring. . . 

Commission reconvenes conference on wool scouring authorisation:

The Commerce Commission is to reconvene its conference on Cavalier Wool Holding Limited’s application for authorisation to acquire New Zealand Wool Services International’s wool scouring business.

The conference will be held on Tuesday 1 September to consider specific issues relating to property valuations, which form part of Cavalier’s application. . . 

GMO ‘Right to Know’ movement takes food off of plates of hungry in Africa, Asia – Michael Dzakovich:

One of the most contentious and polarizing issues today is the use of biotechnology in farming. While many farmers in industrialized countries have been safely and successfully using genetically engineered crops for almost two decades, adoption in the developing world has been significantly slower, only recently eclipsing the U.S. in terms of total acreage.

Many of these crops have been developed to produce naturally occurring nutritional compounds, resist aggressive diseases and tolerate extreme environmental conditions. The benefits of GE crops are not equitably spread throughout the developing world, as those in most critical need often cannot benefit from existing solutions created by public scientists. . . 

Dayton community harvests late farmer’s final crop – Taylor Viydo:

A community came together this week to help a family harvest the final crop of a local farmer who passed away from cancer.

Jim Hanger was still running a 5,000-acre family farm in Dayton when he passed away last week. He lost his battle to cancer at age 66.

“He was always on the tractor, the combines — if it was seeding, he was seeding. If it was harvest, he was harvesting,” said daughter Tracy Hanger. . .

Racheal Trail's photo.

Rural round-up

August 7, 2015

Rabobank Report: Moving Globally; What role will China play in the global beef market?:

Rabobank sees great potential in China’s beef market, and believes that Chinese investors will play an influential role in the global beef market over the next decade. According to Rabobank’s latest report, Moving Globally: What role will China play in the global beef market?, China’s beef demand will grow an additional 2.2 million tonnes by 2025. Driven by the weak domestic production, but with strong demand, the beef sector will likely become the first agricultural sector where China has high integration with the rest of the world and Chinese investors are expected to play an influential role in the global beef market.

In addition to the volume gap, China’s beef market also demonstrates potential for value-added and branded beef products. Strong demand from the food service and retail market channels provides opportunities for both Chinese and foreign companies in the further processing sector. . .


Fonterra’s restructure more about poor strategy than milk price – Allan Barber:

When Fonterra was formed back in 2001, there was a great sense of optimism about the potential for a New Zealand dairy company to compete on a truly global scale. The industry’s infighting and parochialism would be a thing of the past and the clear intention was to use the greater efficiencies and scale to create a substantially better performing business model.

The big question 14 years down the track is whether that objective has even remotely been achieved. Fonterra is the world’s leading exporter of milk products and the fourth largest dairy processor, so achievement to date appears consistent with the objective. But for many observers there was another, more ambitious expectation: to establish an internationally competitive value added business to compare and compete with Nestle and Danone. . .

Dairy sector needs to work together to manage downturn:

National accounting and business advisory firm Crowe Horwath is calling on all stakeholders in the dairy industry to work together to help the sector get through the current difficult period of lower milk solid prices.

On the back of dairy companies announcing a string of forecast milk price downgrades and prices continuing to plunge at the Global Dairy Trade (GDT) auctions, predictions are the current hard times for the dairy sector could potentially last another 18 months to two years.

Crowe Horwath says given the scale of the challenge now being faced by the industry, doing nothing is not an option for anyone involved, including farmers, banks, farm consultants and business advisors. . .


Fish & Game Calls for Fonterra to Lift Its Game After Pollution Conviction:

Fish & Game says Fonterra needs to lift its game after the dairy giant was fined $174,000 for several pollution offences under the Resource Management Act.

The Bay of Plenty Regional Council prosecuted Fonterra for polluting the and other waterways after several wastewater system failures at Fonterra’s Edgecumbe dairy plant.

The offences occurred several times between September 2014 and April 2015.

Fonterra pleaded guilty to six charges and was sentenced in the Tauranga District Court by Judge Smith. . .


I’m worried! I’m sympathising with organic farmers over a land use conflict! – Jim Rose:

Writing this blog of sound mind and sober disposition, I still have considerable sympathy with two organic farmers over a land use conflict they have with the neighbouring gun range.

Local land use regulations allows a gun club to set up 600 m away with competitive shooting days all day for 88 days a year. That is a voluntary self restraint. They could hold shooting competitions every day of the year. The local land use regulations allow the use of guns on rural land. The gun club used this absence of a prohibition on the use of guns in the frequency of use to set up a gun range to fire guns all day long on rural land. . . .

Market Continues to Show Strength:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that a continuing upward trend at today’s South Island wool sale saw prices increase.

The weighted indicator for the main trading currencies decreased from 0.6314 to 0.6181, down 2.1 percent. The US dollar rate was down to .6520 from .6670 which meant increased prices in NZC terms.

Of the 5,564 bales on offer 5,260 sold, a clearance of 95 percent. . .


Matariki Forestry Group announces recapitalisation:

Matariki Forestry Group (“Matariki”) today announced a NZ$242 million capital infusion from Rayonier Inc., its largest shareholder. This injection of capital will be used for the repayment of all outstanding amounts under its existing NZ$235 million credit facility and for general corporate purposes.

Upon completion of this capital infusion, Rayonier’s ownership in Matariki will increase from 65% to approximately 77% and the Phaunos Timber Fund ownership will be reduced from 35% to approximately 23%. The capital infusion is subject to certain closing conditions including New Zealand Overseas Investment Office approval and is expected to close by year end. Matariki will realise interest cost savings of approximately NZ$15 million annually as a result of the recapitalisation. . .


NZARN says strategic feed approach key to farmer viability:

Nutrition experts have entered the milk price payout debate saying that a strategic approach and optimising home grown and supplementary feed resources are key to long-term viability.

The New Zealand Association of Ruminant Nutritionists (NZARN) urges farmers, in an article published on their website ( to benchmark themselves against the best performing farms to identify areas for improvement.

Dr. Julian Waters, NZARN Chairman says, “Maximising utilisation of home grown resources such as pasture, silage and crops should be the basis for a profitable business, with a sound strategy to incorporate supplements to increase efficiencies when home grown feed is limited.” . . .

 Internet Provider Puts Farmers’ Wellbeing First:

New Zealand internet provider, Wireless Nation, further demonstrates its commitment to the rural sector in a new agreement with Farmstrong, an initiative to promote wellbeing for all farmers and growers across New Zealand.

Wireless Nation’s zero-rated data agreement means that its Satellite Broadband customers can access Farmstrong’s website without the data counting towards their data cap.

Wireless Nation’s technical director, Tom Linn says he is passionate about making internet connectivity easier for people living in rural areas. . .

New Forests agrees to purchase Marlborough timber plantations from Flight Group:

New Forests today announced that it has reached agreement to purchase approximately 4,200 hectares of freehold land and softwood plantations from the Flight Group. The plantations consist of radiata pine and are located in the Marlborough region of New Zealand’s South Island.

The agreement forms part of a larger transaction by Flight Group, including the purchase of the Flight Timbers sawmilling assets by Timberlink, an Australian timber products processor that is also an investee company of New Forests. Completion of the plantation purchase by New Forests is subject to approval by the Overseas Investment Office. . .


Rural round-up

July 31, 2015

Westland Milk cuts payout further as dairy prices fall – Suze Metherell:

(BusinessDesk) – Westland Milk Products, New Zealand’s second-largest dairy cooperative, cut its forecast milk payout to farmers by 10 cents for the current season and for next season’s by $1, in the face of sustained weakness in global dairy prices.

The Hokitika-based company will pay $4.80 to $4.90 per kilogram of milk solids for the 2014/15 season, with the final payout to be determined at the September board meeting, it said in a statement. The forecast payout for the 2015/16 season was slashed to between $4.60 and $5/kgMS, from a previously band of $5.60 to $6/kgMS.

The advance rate for this season remains at $4.80/kgMS, although the 2015/16 season rate was revised to $3.80/kgMS from $4.40/kgMS. . .


Light at the end of the paddock for dairy farmers – Jason Walls:

The New Zealand dollar is poised to shed more value against the US by the start of next year and dairy prices may only be at the current level temporarily.

This is good news for farmers, says ASB Bank rural economist Nathan Penny, who forecasts the New Zealand dollar will be at 61c against the US by the beginning of 2016.

He says the one of the biggest factors to this will be the US interest rate hike later this year. . .

Speech to Horticulture New Zealand Conference Award Dinner:

Good evening. Thank you Julian Raine, Horticulture New Zealand President, for that introduction. It is a pleasure to join you this evening in recognising excellence and future leaders of the horticulture industry.

I would particularly like to acknowledge outgoing Chief Executive Peter Silcock for all his contribution to the industry over the past 30 years.

Tonight I want to talk to you briefly about the long-term value that can be created by recognising talent and growing leaders.

A growing industry

Horticulture is a top performing primary industry. In the year to June 2015, export revenue reached $3.897 billion. This is up $602 million from 2012, a total of over 18 percent growth over four years. . .


Dairy modules hitting the spot for DWN members:

Dairy Women’s Network has received feedback on how its latest professional development offering is being perceived by its members – with impressive results.

The network launched its new Dairy Modules programme for the first time in November 2014 and has since had the programme evaluated by the renowned Net Promoter Score system, confirming world class standard. . .


Bayer Wairarapa Young Viticulturist of the Year 2015 announced:

A great win for Mark Langlands from Te Kairanga as he becomes the Bayer Wairarapa Young Viticulturist of the Year 2015. Contestants battled it out at Te Kairanga Vineyard with their final challenge being to deliver a speech to a key audience in the evening at the Martinborough Village Cafe.

Contestants completed a wide range of activities including questions on trellising, vine management, pests & diseases, budgeting, tractor maintenance and irrigation as well as having an interview and a quick fire buzzer round. . .


Wool Firms:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that despite a slightly stronger New Zealand dollar wool prices were firm to slightly dearer. With less wool available due to weather affecting shearing and vacation related shipping requirements this has helped underpin prices.

The weighted indicator for the main trading currencies increased 0.99 percent week on week.

Of the 7,905 bales on offer 96.2 percent sold. . .


PERRIAM on national stage at New Zealand Fashion Week 2015:

Luxury merino fashion brand PERRIAM has been selected for a special showcase on wool in fashion at the prestigious New Zealand Fashion Week (NZFW) in August.

PERRIAM is among some of the country’s iconic labels chosen for the Choose Wool show, taking to the runway with Sabatini, twenty-seven names, Tanya Carlson, Hailwood, Liz Mitchell and Wynn Hamlyn on Tuesday, August 25.

Curated by leading Kiwi stylist Anna Caselberg, who is known for her work with NZ wools, Choose Wool represents an important aspect of the NZ fashion industry. . .



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