Rural round-up

June 28, 2019

More good farmland lost forever:

News that two large New Zealand farms have been sold off-shore, largely for forestry is depressing according to 50 Shades of Green spokesman Mike Butterick. The same owner has purchased both properties.

One farm is 734,700 hectares at Eketahuna that sold for $3.35 million. The other is 1037,000 hectares in Wairoa sold for $6 million.

“It’s bad enough having the land sold to foreigners but having good productive farmland sold for forestry and subdivision is criminal,” Mike Butterick said. . .

Decision time at Westland for Yili bid – Keith Woodford:

The time has come when Westland’s dairy farmers must make their decision. Do they want to take the money and go with Chinese mega-company Yili, or do they wish to struggle on as a co-operative?  We will know the answer after the July 4 vote.

If farmers vote to take the money, it will then be up to the Government to agree or refuse to accept Yili as the new owner. I will be surprised if they disallow the sale under the relevant OIO provisions. The ramifications of that would be severe.

Also important is whether or not the approval from Government is quick or drawn out. It is in no-one’s interest that it be drawn out, but OIO approvals can be remarkably slow.  Yili could step away if approval is not forthcoming by 31 October. . . 

NZ First is not alone in worrying at the implications of a Westland Milk sale to Yili – Point of Order:

Is   Westland  Milk   one of  NZ’s  “key  strategic assets”?

NZ  First  is adamant  it is and believes the government  should be a  applying a  “national interest test”   to the proposed  sale of the company  to the Chinese  dairy giant Yili.

Those  who  see  heavily indebted  companies  like Westland Milk struggling to  make a profit and  not  even  matching  Fonterra’s payout  to its suppliers might take a  cooler view  to  the proposed  sale. . . 

Minister heaps more costs on farmers:

The Minister of Agriculture has confirmed he hasn’t bothered asking his officials the costs farmers will face as a result of the high methane target the Government is imposing, National’s Agriculture spokesperson Nathan Guy says.

“When questioned in Primary Production Select Committee Damien O’Connor scrambled to confirm he’d seen no specific advice for costs per farm, nor has he even asked for any.

“Cabinet have blindly cooked up a methane reduction target of 24-47 per cent, despite scientific evidence suggesting this is too high and without knowing the costs per average farm and the impact it will have on rural communities. . .

Downsizing opens gate to A2/A2 farm:

He’s a dairy farmer with a passion for breeding, striving to be “at the front of the game.” She’s a converted city-girl who fell in love with the dairy farmer, despite her aversion to typical milk.

It doesn’t agree too well with my system,” Stacey White says.

“I used to have soy and almond milk and I’ve tried both them and rice milk; nothing’s really appealed in terms of taste, and baking with those substitutes doesn’t really work either.” 

So when Stacey became aware of A2/A2 milk 18 months ago, she tried it out and found it tasty, creamy, and, crucially, easily digestible.*  . . 

LIC migrates to NZX’s Main Board:

Herd improvement and agritech co-operative LIC will move to the Main Board of the NZX (NZSX) next month, transferring from the Alternative Board.

This comes as NZX announced it will move to a single equities board from July 1 and close the NZAX and NXT.

Of the companies migrating, LIC is the largest by market capitalisation, at approximately $109 million.

There are around 14 agritech companies featured on the NZX Main Board and only one other farmer-owned co-operative (Fonterra). . . 

How NZ farming is like a Steinway piano – Glen Herud:

I wonder if we rely too much on our pasture-based farming or our beautiful scenery or our clean image.

What if the things we think are our strengths are actually weaknesses?

Steinway and Sons had been the leading maker of grand pianos since 1853 when their business was crippled by Yamaha.

Professor Howard Yu explains how Steinway held on to their main strength for far too long and it eventually became a weakness. . .

 


Trading halt unlikely to be for +ve reasons

August 10, 2018

Fonterra placed a trading halt on its units yesterday.

Fonterra placed a trading halt on its units on the NZX yesterday as it works through reviewing its earnings guidance.

It expects to update the market by the end of trading today.

Fonterra Shareholder Fund units last traded at $5.11, down more than 18% from a year ago, having started the year at $6.66 in January.

In a brief notice to the NZX yesterday, Fonterra said it was preparing its annual financial statements for the financial year ended July.

”As a result of the work being undertaken there may be a variation from the earnings guidance previously given to the market,” the company said.

The fund’s units are open to the public and also farmer suppliers. . .

This is very unlikely to be for positive reasons.

The grapevine thinks this might result in a cut to the forecast dividend rather than the farmgate milk price, but that might be wishful thinking.

 


Rural round-up

April 24, 2018

Precious arable land – Eric Crampton:

I just don’t get the fixation with making sure that nobody builds a house on agricultural land.

The government plans to make it harder for councils to approve new homes and lifestyle blocks on productive land near urban areas.

A report out today, called Our Land 2018, shows New Zealand’s urban sprawl is eating up some of the country’s most versatile land.

It highlights that between 1990 and 2008, 29 percent of new urban areas were built on some of the country’s most versatile land. . . 

We are growing houses instead of food – Feds:

We are losing our most productive land to houses – that’s the most significant point Federated Farmers takes from the ‘Our Land 2018’ report released today.

The Ministry for the Environment report shows the pressure New Zealand agriculture is under from the loss of highly productive and versatile land due to urbanisation.

There was a 10% increase in urban areas from 2002 to 2012 and the loss would be even more now with the pressure on housing in the last few years. . . 

Auckland Council rates policy fails to value private land conservation:

Auckland Council is proposing to remove rates remission for privately owned land protected by QEII covenants.

QEII National Trust CEO Mike Jebson says “we are submitting against Auckland Council’s proposed policy. This policy discourages landowners from protecting natural heritage areas on their properties and fails to support protection of biodiversity on private land in the region.”

“QEII covenants often protect the habitat of threatened indigenous species, and provide corridors linking larger areas of private and public land set aside for conservation. The work landowners do in protecting their land, like excluding stock from the protected area, is critical in encouraging regeneration of native vegetation.” . .

 A2 shifts from a brand to a category, with Nestle and Mengniu now on board – Keith Woodford:

It is only six weeks since mega-sized Fonterra in New Zealand and medium-sized Freedom Foods in Australia announced their intention to produce A2 dairy products, these being products free of A1 beta-casein.  Since then, both Nestle and Mengniu have stepped up to announce that they too are developing brands for A2 infant nutrition products.

To place this in perspective, and as reported by Rabobank, Nestle is easily the largest global dairy company by turnover, followed by Lactalis, Danone, Dairy Farmers of America and then Fonterra. Further down comes Mengniu at number 11 globally, but number 2 in China.

It is now evident that dairy products free of A1 beta-casein are shifting from being a niche brand belonging to The a2 Milk Company (A2M) to becoming a broader dairy category. This was always going to happen, but the speed at which it is now occurring is taking most people by surprise. . . 

Livestock Improvement buys back $5.3M of shares to simplify structure – Tina Morrison:

 (BusinessDesk) – Farmer-owned cooperative Livestock Improvement Corp will buy back $5.3 million of its shares as part of its move to simplify its share structure.

In March the company’s shareholders voted to reclassify all cooperative control shares and investment shares into a single class of ordinary shares. Livestock Improvement said today that a small number of shareholders had elected to exercise their minority buy-out rights under the proposal. . . 

#SustainabilitySunday: A tale of two farms – Uptown Farms:

What you see above is crazy exciting for our family!

These two pictures are from two fields, only separated by an old fence row. The photos were taken about 4 foot apart. 

The farm in the bottom photo has been traditionally managed for north Missouri row crop farms. You see larger and more compacted soil clods, fairly typical of dirt in the area. 

On the farm in the top photo we have been using no-till and cover crop practices for three growing seasons. What you see, and would feel if you were here, is a light and loose soil. It’s full of organic matter without any compaction. (Think of potting soil compared to dirt from your backyard.) 

We have actually added soil to this farm by allowing crop residue and cover crops to decompose and turn to dirt. In only three years, we have changed the soil makeup of our farm.  . . 

Scales hunts for NZ agribusiness acquisitions to fit with apple export business – Tina Morrison:

 (BusinessDesk) – Scales Corp is eyeing potential agribusiness acquisitions that would fit well with its export apple business as the country’s largest apple grower aims to become the foremost investor in and grower of New Zealand agribusiness.

“We think New Zealand agribusinesses are in a good space, they make good products, and sell them to Asia,” chief executive Andy Borland told BusinessDesk. “We have over the years developed our skills around exporting and dealing with Asia, particularly China, and we are looking at businesses within New Zealand that would work with those sort of dynamics and be complementary to our apple business. We are really looking for those sort of New Zealand opportunities.” . . 

Good Idea! Feds Likes NZX Primary Sector Index Concept:

Federated Farmers congratulates the New Zealand Stock Exchange for coming up with the idea of creating a ‘primary sector index’ for investors.

The NZX intends to launch the new primary sector index later this year, where it will sit alongside the existing indices for other sectors such as energy, healthcare and real estate.

The index will include 15 companies, including Fonterra and A2 Milk. . . 

China begins to challenge multinationals in domestic infant formula market, says GlobalData :

CITIC Agri Fund Management, backed by Chinese state-owned CITIC Group, has recently agreed to buy a 25.18% stake in Hong Kong-based Ausnutria Dairy, one of the leading local suppliers of infant formula in the Chinese market. This clearly marks a change in direction for the government, which has hitherto been focusing its efforts on regulation in this sector, says leading data and analytics company GlobalData.

Local suppliers in China are yet to recover from the melamine contamination scandal in 2008, with parents continuing to put their faith in foreign-made milks even after a decade. . . 


Rural round-up

April 15, 2018

Water schemes left high and dry – Annette Scott:

The canning of Crown funding for water schemes is a “kick in the guts” for rural communities, especially when six regions have been declared in drought this year, National Party agriculture spokesman Nathan Guy says.

“This Government has now raided $100 million and effectively pulled the plug on any lifeline for rural communities,” Guy said.

“These projects, such as Hunter Downs and Hurunui, are about rural communities providing for much wider regional development and what needs to be remembered is that this Crown funding is not a grant. It’s a loan and it’s all paid back. . . 

Jeff Grant becomes Kiwi meat’s Brexit rep:

OSPRI and AgResearch chairman Jeff Grant has been appointed at the meat industry’s Brexit representative to be based in London.

On behalf of Beef + Lamb New Zealand and the Meat Industry Association the former National MP will provide the red meat sector’s response to Brexit.

Grant will work closely with B+LNZ’s Europe representative, the Government and commercial interests to help strengthen the red meat sector’s ties with the United Kingdom and safeguard NZ’s exports to the key market. . . 

Ploughing with horses luck of the draw – Nicole Sharp:

Straight and steady is the aim of the game, but it is no easy task with Anna and Nugget, who have minds of their own.

The two Clydesdales are part of Sean Leslie and Casey Rae’s horse ploughing team, from Middlemarch, which will be competing at the New Zealand Ploughing Championships in Thornbury this weekend.

They are one of six horse teams competing in the event and they will attempt to plough the straightest, neatest and tidiest plot, but a lot of it was luck of the draw, Mr Leslie said.

“It does depend on soil conditions and being able to tackle it and master it.” . . 

Auckland Council rates policy fails to value private land conservation:

Auckland Council is proposing to remove rates remission for privately owned land protected by QEII covenants.

QEII National Trust CEO Mike Jebson says “we are submitting against Auckland Council’s proposed policy. This policy discourages landowners from protecting natural heritage areas on their properties and fails to support protection of biodiversity on private land in the region.”

“QEII covenants often protect the habitat of threatened indigenous species, and provide corridors linking larger areas of private and public land set aside for conservation. The work landowners do in protecting their land, like excluding stock from the protected area, is critical in encouraging regeneration of native vegetation.” . . 

NZX targets ‘natural advantage’ in primary industries with new index, dairy derivatives expansion – Paul McBeth;

(BusinessDesk) – NZX wants to capture New Zealand’s “natural advantage” in the primary sector with a new index tracking listed industry players and build on the early success of its dairy derivatives market, says chief executive Mark Peterson.

The Wellington-based company is in the process of refocusing on its core market business to revive investor interest in the capital markets. Among those initiatives is a drive to capture New Zealand’s comparative advantage in agriculture and horticulture, and Peterson told shareholders at today’s annual meeting in Christchurch a new index will be launched in the second quarter including stocks such as a2 Milk Co, Fonterra Shareholders’ Fund, Comvita, New Zealand King Salmon, Scales Corp, Sanford, and Seeka. . . 

Working Lands: A Missouri farmer saves prairie and grassland birds – Joel Vance:

Tom Smith’s anthem could be “Don’t Fence Me In,” except that he has a fencing company. His customers can be bizarre; one wanted a 10-foot fence to protect his garden from starving mobs fleeing Kansas City and St. Louis, which, he was convinced, would burn to the ground within two years.

But most are more ordinary landowners to whom Smith, a 63-year-old cattleman, preaches the value of native grass. Smith raises about 90 grass-fed feeder calves on 627 leased acres of Hi Lonesome Prairie, a state-owned property near his Cole Camp, Missouri, home. “When I found a neighbor was planning to plow a patch of big bluestem,” Smith says, “I told him, ‘Oh, man, don’t plow that. What you’ve got there is native prairie.’ . . 

Z


Rural round-up

November 1, 2017

Farmers’ efforts rewarded with improving water quality – Esther Taunton:

Taranaki has recorded its best stream health trends in 21 years, a new report shows.

The 2017 Healthy Waterways report showed water quality in the region was ‘fit for purpose’ by almost all measures within the compulsory national criteria at almost all sites most of the time.

Published by the Taranaki Regional Council, the report looked at trends from 20 years of monitoring and showed most measures were improving or not changing significantly for the ecological health and physical and chemical state of 99 per cent of Taranaki rivers and streams. . . 

No Sign of Bonamia in wild oysters:

The latest testing of the Bluff wild oyster fishery shows no sign of Bonamia ostreae, says the Ministry for Primary Industries.

The testing was part of MPI’s surveillance programme for the invasive parasite, says MPI Director of Readiness and Response Geoff Gwyn.

“This is great news for the local industry and everyone involved in the response,” says Mr Gwyn. . . 

Global meat trends look positive – Allan Barber:

2016 saw widely differing agricultural export performances between New Zealand and our trans-Tasman neighbours. According to the Red Meat Advisory Council’s State of the Industry 2017 report, Australia broke all records by increasing its exports of red meat to A$15.1 billion, up by nearly A$6 billion since 2009. It was the world’s biggest exporter of beef, second biggest for sheep meat and third biggest live exporter.

In contrast New Zealand’s exports of red meat and offal declined by $909 million to $5.9 billion or 7.4% from 2015; the fall was shared fairly evenly between beef (down $481 million) and sheep meat (down $415 million), although the percentage drop for beef was much higher at 14.4% compared with 4.6% for sheep meat. Both volume and value contributed to the decline, with the United States responsible for three quarters of the beef shortfall and the EU, including UK, responsible for half that of sheep meat. . . 

Building a NZ brand:

Beef + Lamb New Zealand’s market development team is building a compelling case for the red meat industry to work with a New Zealand brand story under which individual brands could sit.

Michael Wan, who led a marketing team on a research trip to China, United States, Germany, India, Indonesia, United Kingdom, United Arab Emirates and New Zealand, says this country needs a strong value proposition at a national level and to invest in telling its story.

The trip, which included comprehensive qualitative research at every level of the supply chain in each of the markets they visited, highlighted both a low awareness of NZ – especially its food production systems – but also the potential for growth in the lamb category. . .

Farmer Fast Five – Charles Douglas-Clifford – Claire Inkson:

The Farmers Fast Five: Where we ask a Farmer five quick questions about Farming, and what Agriculture means to them. Today we talk to Ballance Farm Environment Award Winner and Proud North Canterbury Farmer Charles Douglas-Clifford.

1.         How long have you been farming?

I have been involved in farming in one way or another all my life. I grew up on the family farm as a 6th generation descendant, finished
school and worked on various farms in Australia for a year. I then went to Lincoln University to study a BCom Ag. I went on to spend 6 years working as a rural bank manager for the National Bank in Palmerston North, Nelson and Timaru. Then in early 2012 I returned home to Stonyhurst with Erin, after getting married and have been here ever since.           

2.         What sort of farming were/are you involved in?                    

In the 6 years working as a rural manager I got to see a wide range of farming operations throughout the country. I was also
fortunate to have been in the finance sector through the global financial crisis. . . 

2017 Fonterra Elections Results Announced:

Returning Officer Warwick Lampp, of electionz.com Ltd, has declared the final results of the 2017 elections for the Fonterra Board of Directors, Directors’ Remuneration Committee and Shareholders’ Council.

Shareholders voted to elect incumbent Director John Monaghan and new Directors Brent Goldsack and Andy Macfarlane. . . 

Velvet market underpinned by growing demand:

The new deer velvet season has opened strongly, with farmers reporting early enquiry from buyers at prices 10-15 per cent above last season’s close.

Deer Industry NZ (DINZ) Asia market manager Rhys Griffiths says the price recovery is timely, given the investment many farmers are making in upgrades to their velvetting facilities.

“Regulatory changes in China last season led to a loss of buyer confidence and a dip in prices that did not reflect the steady growth in demand for NZ velvet from China and Korea, our major markets,” he says. . . 

Biosecurity Week 2017 kicks off:

Pests and diseases from offshore can cause serious harm to New Zealand’s unique environment and primary industries; and the Port of Tauranga is one of many potential gateways.

Biosecurity Week activities highlight the importance of biosecurity and the role that everyone in the Bay of Plenty can play in managing unwanted biosecurity risks says Kiwifruit Vine Health Chief Executive Barry O’Neil.

“We’re looking forward to talking to people who work on and around the Port about biosecurity – it’s such an important issue and one that really does affect everyone.” . . 

NZX plans to launch skim milk powder option contract – Tina Morrison:

(BusinessDesk) – NZX, the financial markets operator, plans to launch a global skim milk powder option contract in December in response to customer demand.

The Wellington-based company said trading volumes in its skim milk powder futures market are up 113 percent this year as interest in its suite of dairy risk management tools increases. The new contract will add to the NZX’s existing futures contracts for whole milk powder, skim milk powder, anhydrous milk fat and butter, and its whole milk powder options. . . 

Innovative trading platform Syndex announces partnership with agritech firm:

Online share exchange Syndex is supporting New Zealand agritech company Regen to undertake a major expansion.

Syndex is an independent online trading platform for any proportionally owned asset for the private economy. Fractions of agricultural assets, units in commercial property and private equity can all be funded and purchased through the Syndex exchange. . . 


Rural round-up

July 14, 2016

Dairy farmers urged to plan for volatility – Sally Rae:

Dairy farmers need to strengthen their business structures by rebuilding equity in the next price upcycle and further develop flexible production systems that can easily reduce costs when prices fall, a new report from Rabobank says.

The severe price downturn marked the third trough in the past decade and the sector must plan for inevitable future volatility, report co-author and dairy analyst Emma Higgins said.

“Tough decisions will need to be made in the next upward cycle. Farmers will need to make a careful and considered decision whether to put some debt to bed or chase a profit margin through increased investment and spending. . . 

Million kg milestone for milk futures:

NZX celebrated a milestone in the development of its New Zealand milk price futures contract on Friday, with more than one million kilograms of milk solids (kg/ms) traded since the product launched at the end of May.

The total number of contracts traded since launch was 184 at close of trading on Friday. Each contract is worth 6000 (kg/ms), totalling 1,104,000 kg/ms.

The 2016/17 contract has traded at an average price of $4.53, while the 2017/18 average contract price was $5.60. . . 

Critical shortage of doctors in NZ small towns:

There’s almost no such thing as a ‘community doctor’ anymore, health expert Professor Ross Lawrenson says.

There’s a critical shortage of doctors in small towns across New Zealand, and Waikato University’s Prof Lawrenson wants medical students sent to rural practices earlier to combat the problem.

“The two medical schools did a survey of medical students who were just qualifying, and only two percent of them wanted to live in a community of less than 10,000 population – there’s a real issue there.”

He says the system is at crisis point, and he believes the way doctors are trained is letting down rural communities. . . 

Meat and dairy exporters secure largest ever container ship for Asia run – Pattrick Smellie

 (BusinessDesk) – The Kotahi joint venture between Fonterra Cooperative Group and Silver Fern Farms is launching a new weekly service to Asian export markets using the largest container ship ever to call at a New Zealand port.

The service will operate through the Port of Tauranga, where a $350 million port expansion and dredging operation will allow visits by a ship capable of carrying more than twice the usual number of containers seen on cargo ships operating through New Zealand.

The new service will see ships with a capacity of 9,500 TEUs – 20-foot container equivalents – calling at Tauranga on their way from the west coast of South America before heading to ports in North Asia. . . 

Rabobank New Zealand announces new CEO:

Rabobank New Zealand has announced the appointment of Daryl Johnson to the position of chief executive officer.

Effective immediately, the appointment sees Mr Johnson take over the role from Crawford Taylor, who has served as CEO in an interim capacity since October 2015.

Announcing the appointment, Rabobank New Zealand Chairman John Palmer said the bank was very pleased to have a highly-experienced banking executive of Mr Johnson’s calibre take the helm of the business as it continues its growth and development in the New Zealand market. . . 

MOU with Foshan City kicks off global Food Integrity Conference:

Chinese representatives visiting from Foshan city will sign a Memorandum of Understanding (MOU) with the Asia Pacific Centre for Food Integrity tomorrow morning at the opening of the Food Integrity Conference 2016.

The MOU is an exciting step for the APCFI to work closely with colleagues in China on food safety education in Foshan. Foshan has a population of more than 7.2million and is the third largest city in the Guangdong province.

This agreement is a huge opportunity for the Asia Pacific Centre for Food Integrity, Executive Director and Conference Organiser, Dr Helen Darling. . . 

New salmon farms for Marlborough:

The opening of two new salmon farms in the Marlborough Sounds today is a welcome development for New Zealand’s aquaculture industry, Environment Minister and Nelson MP Dr Nick Smith says.

“Salmon is a healthy, sustainable and high-value product and we should be proud that New Zealand is the world’s largest producer of farmed king salmon. New Zealand King Salmon’s Marlborough Sounds operation supports 440 jobs and $115 million in annual export earnings, and comes from just 8 hectares of farms in the 800,000 hectare Sounds. No other primary industry is able to support so many jobs and families from such a small area.”

The two new salmon farms in Pelorus Sound, the Waitata Bay farm and the Kopāua farm in Richmond Bay, add to King Salmon’s operating farms in Queen Charlotte Sound. They will eventually take the company’s production from 6000 to 10,500 tonnes per year, and boost earnings to more than $170 million. . . 

Million dollar mouse pest drops completed:

The ambitious Million Dollar Mouse pest eradication project on remote Antipodes Island in the sub-Antarctic has been completed ahead of schedule, Conservation Minister Maggie Barry says.

A second helicopter drop of rodent bait across the island was finished yesterday afternoon, following a first phase completed on June 29.

“Despite very unsettled weather conditions, the Million Dollar Mouse team have done an outstanding job of making use of every available weather window to get the bait drop completed,” Ms Barry says.

“This is the most challenging pest eradication ever carried out in New Zealand and is a globally significant conservation achievement, safeguarding a unique, remote and forbidding land and the many extraordinary species living there.” . . 

Lamb flap prices rise to a year high in June; beef, lamb leg stable – Tina Morrison

(BusinessDesk) – New Zealand lamb flap prices rose to their highest level in a year, driven by increased demand from China where the meat is used in traditional hotpot dishes.

Lamb flap prices rose to US$4.40 per kilogram in June, up from US$4.05/kg in May and the highest level since the first week of June last year, according to AgriHQ’s latest monthly sheep & beef report.

Chinese demand for lamb flaps has helped turn the offcut into a premium cut and lifted the overall return Kiwi farmers can get from their animals. The meat is processed into a lamb roll and sliced thinly for hotpot, the dominant cooking style for lamb and a staple of the Chinese national diet. . . 

Strong 2016 vintage confirms positive outlook for NZ wine:

As demand for New Zealand wine continues to grow in the key markets of the USA, the United Kingdom and Australia, the industry is rising to the challenge. That’s according to Alistair King, Crowe Horwath’s viticulture specialist, who says the outlook is positive, particularly with a plentiful grape harvest for the 2016 vintage.

“The wine industry is targeting a goal of export earnings of $2-billion by 2020; after a poor vintage in terms of volume for 2015 where just 312,000 tonnes of grapes came in, this year is looking considerably better,” he says. . . 

Mission Estate Selected as One of the World’s Best:

Mission Estate, New Zealand’s oldest winery, has further cemented its place on the global wine map by having its Jewelstone Syrah 2013 selected to appear at WINE Explorers’ Grand Annual Tasting 2016.

WINE Explorers is a unique four-year project to take an inventory of all of the wine producing countries of the world. Now in it’s third year, the unprecedented task has seen the WINE Explorers travel to 92 countries, visiting 250 winegrowing regions, surveying a total of 1500 vineyards and tasting over 15000 wines. . . 


Rural round-up

May 28, 2016

Westland ups its payout prediction for the coming season:

New Zealand’s second biggest dairy co-operative Westland Milk Products has released a budget for the 2016-17 dairy season of $4.55 – $4.95 per kilo of milk solids (kgMS).

Payout for the current season will be in the range of $3.80 – $3.90 per kgMS.

Westland will also start its payout advance payments for the 2016-17 season at $3.80 per kgMS, payable 20 September 2016. . . 

Westland tops Fonterra – Hugh Stringleman:

Dairy farmers received cold comfort when Fonterra announced a low forecast milk price of $4.25/kg milksolids for the new season from June 1, with an advance rate beginning at $3.01.

Analysts’ expectations had been for an opening price of $4.60 or more, as well as some upside when world product prices steadily improved as expected towards the end of 2016.

They said Fonterra seemed to base its opening forecast on spot market prices and not the generally expected improving trend. . .

Farm profits help rural students get ahead – Kate Taylor:

A hill country farm east of Dannevirke has helped hundreds of young people with their tertiary studies. Kate Taylor visited to find out how.

Sheep and beef farmer Max Buckendahl has called the Weber district home for almost three decades but when his 30th anniversary rolls around next year he’s off to see the country.

Together with partner Lynn Moss and a fifth-wheeler artic truck caravan, he’s going to work (and fish) in the warmer climates of Northland for half the year and travel New Zealand for the other half.

“There’s no particular reason to go now but I wanted to stay here 30 years first,” he says. . . 

Silver Fern Farms:Details of Special Meeting:

• Special Meeting date set for Monday, 11 July 2016

Dunedin 27 May 2016: Silver Fern Farms has today settled the statement from two of the 80 requisitioners, in a form that Silver Fern Farms is willing to include in its Notice of Meeting, and has set a date of Monday 11 July to hold the Special Meeting.

The Board has received a statement from two of the 80 requisitioners and notes that the original 80 requisitioners sought a meeting of shareholders to consider: . . 

Silver Fern shareholders to vote again on Shanghai Maling deal in July – Paul McBeth:

 (BusinessDesk) – Shareholders of meat processor Silver Fern Farms will have a second vote on whether to approve its planned tie-up with China’s Shanghai Maling Aquarius in July, though the board intends to go ahead with the deal irrespective of the outcome.

The cooperative today set the meeting for July 11 in Dunedin where shareholders will vote on approving the proposed partnership and restructure, where the Chinese firm takes 50 percent ownership of the meat processor in return for $261 million of cash, a special dividend, and funds to bankroll the cooperative for seven years. Shareholders backed the deal in October, but John Shrimpton and Blair Gallagher, representing a group of 80 shareholders, have since sought a special meeting to effectively reconsider the transaction. . . 

Federated Farmers welcomes Freshwater Improvement Fund:

Federated Farmers is commending the Government on a new $100 million Freshwater Improvement Fund to aid communities investment in solutions for water quality in New Zealand’s rivers, lakes and groundwater supplies, announced in yesterday’s budget.

Federated Farmers water spokesperson Chris Allen says the fund will help communities achieve desired water quality outcomes sooner.

“It’s going to take innovative thinking, time and money to get to the level of water quality our communities aspire too,” he said. . . 

TB continues to be challenge for next decade:

Funding for TB control is less than it has been in the past but Federated Farmers is confident the new programme will continue to make progress with a more efficient spend of the money.

Federated Farmers OSPRI (TB Free NZ) spokesman Anders Crofoot said: “The amended TB Plan is a shift in approach from containing the disease to active eradication in livestock and wildlife. To date we’ve been successful at removing TB from large areas of New Zealand. This means with improved operational efficiencies and targeted work, enabled by advances in modelling we should see new TB Plan targets achieved.

The programme carried out by OSPRI will aim to eradicate bovine TB from cattle and deer by 2026, and from TB-infected wildlife in New Zealand by 2055. . . 

Government Support for Landcare:

Yesterday’s Budget marks a return to stable base-line funding for the work of NZ Landcare Trust.

The Minister for the Environment is responsible for financial appropriations for the 2016/17 financial year which include approximately $27 million for grants to third parties for water initiatives, environmental management and education programmes.

A specific appropriation identified within ‘Vote Environment’ has been established for the promotion of sustainable land management practice through a national network of coordinators. These funds are available due to the reprioritisation of $800,000 from the Community Environment Fund. This transfer reflects joint Ministers’ decision to fund the NZ Landcare Trust activities for 2016/17 and out years. No expiry date for this resourcing commitment has been set and it is identified as an on-going commitment. . . 

DairyNZ’s commitment to supporting dairy farmers:

Industry body DairyNZ is committed to supporting dairy farmers following the announcement by Fonterra of an opening forecast Farmgate Milk Price of $4.25 per kgMS for the 2016-17 season.

“The $4.25 per kgMS is not a surprise, although the particularly low opening advance rate of $2.50 per kgMS plus capacity adjustment is tough for farmers who will find the winter particularly difficult,” says DairyNZ chief executive, Tim Mackle. “This is the lowest opening advance rate in at least the last 14 years.

“The break-even milk income required for the average farmer is $5.25 per kgMS, yet under this forecast scenario they’ll only be receiving $4.45 per kgMS all up in terms of farm income, including retro payments from last season and dividends. . .

PwC supports NZ Milk Futures to manage milk price risk:

The NZX today launched a NZ Milk Futures contract that will eventually provide the opportunity for large and small dairy farmers to proactively risk manage milk price movements and volatility.

“The new futures contract essentially replaces, and considerably enhances, the Guaranteed Milk Price (GMP) contract previously offered by Fonterra,” says Roger Kerr, PwC Partner and Treasury Advisor.

“While the new futures contract has been expected, it will need support from the market to ensure its viability. This means that industry players with resources available to make this commitment, should be encouraged to participate,” says Mr Kerr. . .


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