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. . .


Rural round-up

April 1, 2016

Nutritional Sales Underpin Half Year Underlying Profit of $12.3 Million:

Synlait has reported an underlying net profit after tax (NPAT) of $12.3 million for the first half of the 2016 financial year (HY16).

In contrast to $0.4 million in HY15, this improved performance is primarily the result of increased nutritional sales in canned infant formula.

“We’re glad to deliver a solid result for the first half of FY16. Our significant investment in customer and product development, people, plant and operating systems in recent years is beginning to transform our earnings,” said Chairman Graeme Milne. . . 

European market conditions depress Westland’s payout prediction:

Global market conditions for dairy products point to at least two more seasons of low milk payouts in New Zealand, Westland Milk Products told shareholders today as the co-operative revised its predicted payout for the 2015-16 season to $3.90 – $4.00 per kilogramme of milk solids, down from last month’s prediction of $4.00 – $4.10.

Westland CEO Rod Quin said the major driver of the revised payout remains the global oversupply of milk, compounded by the ongoing high availability and aggressive approach by the European dairy market.

Quin and Westland Chair Matt O’Regan have recently returned from Europe where they met with customers, farmers, processors, traders and industry advocates. . . 

Fonterra makes best of a bad job – Allan Barber:

The PR spin has been pretty active signalling a much improved half yearly result which was duly delivered this morning. The company confirmed a 40 cent dividend for the full year with the interim dividend being paid next month as usual and the final dividend being paid in two tranches in May and August instead of October.

This improvement in cash flow will do something, but not a lot, to comfort farmers labouring under a debt burden. Unfortunately it will do absolutely nothing to support sharemilkers who will have to rely on their share of the milk payout. Predictions for the rest of 2016 are notable for their conservatism, probably in recognition of a disappointing track record when forecasting the extent of the current downturn. . . 

Fonterra’s six-month results – good news but some underlying issues – Keith Woodford:

As expected, Fonterra has announced a greatly enhanced six-month profit for the period ending 31 January 2016. The profit of $409 million (NPAT; i.e. net profit after finance costs and tax) is up 123% from the same period in the previous year.

The expected full year profit of 45-55c per share implies an annual profit of about $800 million compared to $506 million for the full year 2014/15.

These figures are all very much in line with expectations . The reason for this is that when milk prices to farmers are low, then Fonterra has low input costs. Accordingly, there is more scope for corporate profit. . . 

Keep sharing the load by talking about it:

No matter which branch of farming you are in, you will face tough times, says Nelson farmer and Horticulture NZ President Julian Raine. When that happens, don’t be too proud to ask for help.

Speaking to the Farming Show’s Jamie Mackay as part of the Getting Through Adversity radio series, Julian said that even with the best planning, erratic weather events can cause mayhem. Jamie suggested that growing fruit crops is arguably one of the riskiest pursuits in farming: “One adverse event at the wrong time and suddenly your whole crop is wiped out. If you are a sheep farmer, for example, you at least have lambing spread over three weeks, or if you are dairy your risk is spread over nine months of milking.” . . 

Meat exporters ready to reap benefits of TPP:

The Trans-Pacific Partnership (TPP) agreement eliminates all tariffs on beef into our biggest market, the United States, within five years of coming into force.

Trade Minister Todd McClay, speaking at the Canterbury Employers Chamber of Commerce this morning, says New Zealand exported meat products worth over $2.8 billion to TPP countries in 2015 and the gains once TPP comes into force will be significant.

“Our beef into Japan currently attracts a 38.5 per cent tariff. That has made it extraordinarily hard for our exporters to compete with other countries with lower tariffs. . . 

Ongoing market challenges weigh on New Zealand farmers, with confidence close to 10-year low:

The significant and persisting challenges in market conditions continue to weigh heavily on the nation’s farmers, with New Zealand’s rural confidence at the second lowest level recorded in the past 10 years, the latest Rabobank Rural Confidence Survey has shown.

Completed earlier this month, the survey found more than half of farmers surveyed (53 per cent) had a pessimistic outlook on the agricultural economy over the coming 12 months. This was significantly up from 30 per cent with that view in the previous survey, in late 2015. . . 

Dairy downturn: councils prepare to tighten belts:

Councils in rural areas might be forced to cut spending if the dairy downturn lasts for a long time, Local Government New Zealand head Lawrence Yule says.

A Westpac-McDermott Miller regional economic survey has shown big falls in confidence in major dairy areas including Waikato, Taranaki, and Southland.

Mr Yule said the businesses in many rural towns were already hunkering down as farmers tightened their spending, and that could spread. . .

NZX to teach farmers about new milk contract:

NZX expects to receive regulatory approval for the new fresh milk futures and options product within two weeks.

Chief executive Tim Bennett said there was a demand for the fresh milk contracts product after Fonterra scrapped its guaranteed milk price product for the upcoming season. . . 

NZ helping to restore Fiji’s dairy sector after Winston:

The New Zealand government says it will help restore Fiji’s dairy industry which is losing thousands of litres of milk and was devastated as a result of last month’s cyclone.

New Zealand announced additional aid to help Fiji’s recovery on Wednesday.

A lot of that money is going into the continuing infrastructure rebuild led by the New Zealand Defence Force. . . 

Helensville Farmers First To Claim Supreme Title In Auckland Ballance Farm Environment Awards:

“Environmental champions” Richard and Dianne Kidd are Supreme winners of the inaugural Auckland Ballance Farm Environment Awards.

At a special Ballance Farm Environment Awards (BFEA) ceremony on March 30 (2016), the Helensville couple was also presented with the Beef + Lamb New Zealand Livestock Award and the Farm Stewardship Award in partnership with QEII National Trust and New Zealand Farm Environment Trust.

BFEA judges described Whenuanui Farm, the Kidd family’s 376ha sheep, beef and forestry unit, as “a show piece farm on the edge of Auckland city”. . . .

From paddock to packet: The family behind NZ’s most successful independent chips – Ryan Bridge:

You’re about to meet a family of potato farmers who beat the odds to grow one of the country’s most successful independent chip businesses.

The Bowans are from Timaru and not only do they grow spuds, they transport them to their own factory and make the chips too.

Together they are Heartland Potato Chips.

It all started when Raymond Bowan decided to grow his own potatoes as a teenager. His son James Bowan has taken over running the family potato farm and unlike his old man, he doesn’t do it by hand anymore, there’s a flash piece of kit to help. . . 

Food development facility opportunity for creative entrepreneurs:

Those looking to be innovative with their food are wanted at the FoodSouth food development pilot plant on the Lincoln campus, but there are no Heston Blumenthal creations on the menu.

The final part of a national food innovation network, the facility provides three purpose-built independent food safe development spaces along with a variety of processing equipment — an extruder, ovens, dryers, enrober, mixers, and a mobile product development kitchen among them.

It enables businesses to develop product prototypes for market validation, trial new equipment, carry out scale-up trial work and sample manufacture in 20L to 200L batch sizes, conduct process development and improvement, and validate quality systems. . . 

It’s in the family for new A&P Association President:

Sheep and beef farmer Warrick James has been elected as President of the Canterbury Agricultural and Pastoral Association for 2016 at the Annual General Meeting at Riccarton Park Racecourse on 30 March.

Based in Central Canterbury near Glentunnel, Mr James was confirmed as President of the 154th Canterbury A&P Show in front of outgoing President Nicky Hutchinson and Association Members.

“It means a lot to be President of the Canterbury A&P Association. We host the largest and most prestigious Show in the country – it really is the pinnacle of the A&P movement. Having been involved from a young age with my family and seeing my own children take part over the years just makes this even more special.” . . .

Trio spread cheer on woolshed tour – Suzette Howe:

At a time when life’s a bit tough for rural communities, a trio of Kiwi performers are setting off on a woolshed tour to boost morale. 

They’re coming armed with their own stage curtain, a bar and plenty of laughs.

Over the next five weeks the talented ladies will transform more than 20 working wool sheds into live stages the length of the South Island.

They’re travelling by horse truck, carting hundreds of chairs, a bar, and full production set.

Farmer Georgie Harper says it’s hard to say no when the performance is brought to you. . . 

Itinerary and booking information at The Woolshed Tour.


Rural round-up

May 5, 2015

Dairy price rise case of ‘when not if’ – Sally Rae:

DairyNZ research and the latest economic outlook for dairy farming was outlined at a Farmers Forum, organised by DairyNZ, in Balclutha last weekend. Agribusiness reporter Sally Rae went along.

Medium-term prospects for dairy prices remain ”solid but not spectacular”, Rabobank’s director of dairy research New Zealand and Australia, Hayley Moynihan, says.

The 2014 15 season was further evidence of the market volatility expected to continue in global dairy markets, Ms Moynihan said.

A recovery in prices was all about ”when and not if” but the recovery was likely to be more prolonged than seen in 2009 10 and 2012 13. . .

 DairyNZ chief’s bloodline is farming – Sally Rae:

DairyNZ chief executive Tim Mackle always wanted to be a farmer.

Brought up on a Kaikoura dairy farm which has been in his family for generations, farming is in his blood.

His intention was to go to Lincoln University, complete his tertiary studies and then return and farm alongside his brother.

But he got ”sidetracked” by the science and business aspect and was encouraged to follow that path. . .

Dairy to benefit from Chinese-NZ research:

A new research project between China and New Zealand is to focus on how to improve the efficiency of water use in the dairy sector.

The collaborative project involves AgResearch and the Chinese Academy of Sciences and is aimed at helping a range of factors from watering feed crops to washing out cow sheds.

Principal scientist at AgResearch’s Ruakura base Stewart Ledgard said both countries had a lot to learn from each other. . .

 Les Roughan still going strong in dog trialing at 91 – Diane Bishop:

Les Roughan’s ticker isn’t the best.

But, the 91-year-old, who lives at Mandeville, is determined to finish the dog trialing season before undergoing heart surgery.

Roughan is the oldest competitor at the Tux South Island Sheep Dog Trial Championships which are being held on Leithen Valley Farm at Greenvale this week. . .

New research into West Coast agricultural pest:

Fresh research by AgResearch scientists will help unlock mysteries of one of the West Coast’s worst agricultural pests and allow farmers to make better management decisions and potentially save money.

Porina caterpillars are grazers that have the potential to reduce the long term quality and production of pasture but AgResearch Senior Scientist Sarah Mansfield says very little is known about the pest’s specific impact on the West Coast.

However, research conducted during a three year $300,000 Sustainable Farming Fund project will allow farmers to better understand how to monitor for the pest and then utilise control methods more efficiently and cost effectively.

“One of the big problems is that farmers often use control methods too late and after the damage is already done,” Dr Mansfield says.

“Clearly this costs a great deal of time and money for very little return so we hope to be able to provide them with more effective tools to alleviate this.” . . .

NZX adds iFarm to its AgriHQ business –  Suze Metherell:

(BusinessDesk) – NZX has bought iFarm, the livestock market information business, for an undisclosed sum from owners Jon Sherlock and Peter Fraser and will add the firm to its AgriHQ data business.

The Napier-based agriculture service publishes reports covering export data and prices as well as a wrap up of stock sales across the country, the Wellington-based exchange operator said in a statement. The acquisition price was confidential and wasn’t material. . .


Rural round-up

June 14, 2014

Integrated agri-food value chains – Keith Woodford:

Many New Zealand agri-food companies are still struggling to understand the global shift to integrated agri-food value chains. This move has been playing out most spectacularly in the infant formula industry, where the small companies have been badly caught out, but the trend is much broader than that.

A key driver is the need to have food safety systems in place that span from consumers back to producers. It is not simply a case of the food having to be safe, it is also a case of there being a transparent evidential trail. Food testing is just a small part of this system.
A major focus has to be on overall business systems that react to first stage mistakes before they compound into major events. It was just such a failure to react to the warning signals that led Fonterra down a shambolic path with the botulism scare in 2013.

There is also a key idea relating to provenance. Consumers not only want to know that something is safe; they also want to know that they are buying is what they think they are buying, and that the brand is genuine. . .

Milk spill stopper wins innovation award – Jamie Small:

The dragons have chosen, and another farm invention is one step closer to commercial success.

For the second year running, Fieldays had its own Dragons Den-style competition for agricultural innovations.

The joint initiative, run by Fieldays and Hamilton business incubator Soda Inc, selected nine innovators from a pool of 20 to present their gadgets to a panel of experienced investors and business leaders.

The top prize, Most Viable Business, went to Pahiatua couple Graeme and Alison Franklin with the DTexH2o. . . .

Primary Industry’s outlook good:

Federated Farmers believes the ‘2014 Situation and Outlook for Primary Industries’, released by the Ministry for Primary Industries, shows a promising future for the New Zealand economy thanks to kiwi farmers.

“This report shows an increase of 16.3 percent in primary sector exports, to $37.7b on the previous year, which translates to increased farmgate incomes of 22 percent and an increase in off farm spending of 11 percent,” says Bruce Wills, Federated Farmers National President.

“These statistics remind us of the importance of exports to New Zealand, in particular the impact on farmgate incomes and spending on farm inputs, which has a direct influence on rural and provincial economies. . . .

Applauding the night away: superb exporters win top recognition:

Spectacular export growth of hundreds of chicken and turkey products has won Tegel Foods the Supreme Award in the 2014 Air New Zealand Cargo Export NZ Auckland export awards.

Prime Minister John Key presented the award last night at the Langham hotel in Auckland also attended by Auckland Mayor Len Brown and ‘Minister for Business’, Steven Joyce.

The judges said Tegel has been an iconic brand in New Zealand for more than 50 years and began developing export markets 11 years ago. . . .

Fonterra slapped with $150,000 fine over NZX disclosure – Suze Metherell:

(BusinessDesk) – The New Zealand Markets Disciplinary Tribunal has fined Fonterra Cooperative Group $150,000 for breaching continuous disclosure requirements to the NZX during the dairy manufacturer and exporter’s botulism false alarm last August.

Auckland-based Fonterra undertook a world wide recall after it quarantined several batches of whey protein concentrate last August on concern it was contaminated with a potentially dangerous strain of clostridium bacteria, capable of causing botulism. The strain was ultimately shown to be harmless. . . .

Boys from the farm turn on the charm – Libby Wilson:

Fieldays’ rural bachelor contestants have done the hard yards in the leadup to their event.

The eight eligible blokes chased sheep, shot clay targets, and went zorbing on their journey from Auckland to Mystery Creek.

And the action continued yesterday, with fencing, speed-dating and cooking.

Yesterday morning they faced questions from Waikato women.

It seems ladies into a romantic but rural first anniversary picnic would be a good match with Wanganui’s Fraser Laird, 26. “I’ve got some back paddocks at the back of the farm. It’s got a bloody good view. Serious,” he said. . . .

Farmers encouraged to embrace technology – Susie Nordqvis:

Accounting firm Xero is laying down a challenge to farmers this week’s Fieldays: start embracing technology and innovation to maximise profits and grow the economy.

The innovation hub at Fieldays is not quite Dragon’s Den, but it is a sure fire way of fast-tracking participants onto the national stage.

“We have developed an ice maker that makes a slurry and you can reduce milk from 32degC down to 5degC in three seconds,” says innovation den participant Richard Upperton.

Xero says if more people followed Mr Upperton’s lead then the economy would be in better shape. . .

New Zealanders and shearing – Ali Ikram:

Sheep outnumber New Zealanders seven to one. 

They’re crucial to our economy and they get a bad wrap when it comes to their intelligence.

But there was one question we desperately wanted answered – as New Zealanders, can we all shear a sheep?

Is it innate in us – a birth-right?

Or are there some born and bred in cities who simply can’t shear, no matter what? . . .


Rural round-up

July 23, 2013

Synlait Milk jumps 19% in NZX debut after raising $75m:

Business Desk – Synlait Milk jumped 19 percent in its NZX debut after raising $75 million in an initial public offering that was restricted to clients of brokers and institutional investors.

The shares first traded at $2.62 compared with the IPO price of $2.20. They were last at $2.75, valuing the company at $402 million.

Synlait Milk will use the $75 million raised to repay debt and help fund construction of a new lactoferrin extraction and purification facility, an on-site blending and consumer packaging plant, a new dry store, a quality testing laboratory, a butter plant, and a new spray dryer, according to the prospectus. Existing shareholders took advantage of the sale to sell down their own holdings, raising $38.7 million. . .

Strong Chinese Interest in Westland’s New Infant Range:

Westland Milk Products’ launch of its new Westpro NutritionTM range in China on Thursday last week (19 July) was well received with strong interest from customers and Chinese media.

The official launch of Westland’s range of infant nutrition base powders was part of a week-long visit to Shanghai by the company to demonstrate Westland’s commitment to the China market, raise awareness of the Westland Milk Products brand and to promote Westpro Nutrition. . .

International student exchanges opportunity of a lifetime – Pasture to Profit:

International Agricultural Student Exchanges offer an opportunity of a life time experience, few will ever forget. Exchange to another country, another University with a mix of exchangees from many different nations provides endless excitement, friendships & cultural appreciation at an age when you can “suck it all in” big time. I’d like to encourage many more agricultural students to apply for exchanges.

Potential employers look very favourably on any graduate who has taken these opportunities & made the most of them. . .

Entries Open for Next Ballance Farm Environment Awards:

Entries for the 2014 Ballance Farm Environment Awards open on August 1, 2013, and organisers are again expecting strong interest in the popular competition.

Facilitated by the New Zealand Farm Environment Trust (NZFE), the awards promote sustainable land management by showcasing the work of people farming in a way that is environmentally, economically and socially sustainable.

Held in nine regions, the awards are open to all farming and horticultural types. . .

Chair appointed to racing board:

Racing Minister Nathan Guy today announced the appointment of Glenda Hughes as Independent Chairperson of the New Zealand Racing Board’s (NZRB’s) governing body.

Ms Hughes was appointed as Independent Chairperson following consultation with the racing industry.

The racing industry makes an important contribution to the New Zealand economy, generating around $1.6 billion annually and around 17000 jobs. . .

Rotorua to host Maori Forestry Forum:

Registrations are now open for ‘Mai i te ngahere oranga – Māori Forestry Forum’ to be held at Waiariki Institute of Technology in Rotorua on Friday 16 August.

With $2 billion in forestry assets that include land, trees and energy options, Māori are set to become key stakeholders in the future of forestry.

This inaugural Māori Forestry Forum will provide a platform for Māori land and forest owners to discuss their experiences, issues and aspirations for Māori forestry in Aotearoa. . .


Rural round-up

April 18, 2013

Rationalisation of water services supported:

Rationalising water services and placing them at arms-length from local political control, as recommended in a new report is supported by industry body Water New Zealand.

However, the real concern Water New Zealand has is whether the reforms proposed by the expert group looking at local government infrastructure will be implemented (expert’s report released today).

“The need for reform has been known for a long time, but to date little progress has been made,” Water New Zealand’s Chief Executive, Murray Gibb said.

“Ratepayers and taxpayers will get improved services and better value for their money if the reforms are implemented. The proposals accord with industry best practice and should be supported,” he said.

Two other recommendations supported by Water New Zealand, are;
1. that a minister with responsibilities for management of all water related issues is appointed, and,
2. where economically justified, metering and volumetric charging for water are implemented. . .

Praise for NZ’s Tb programme:

A senior UK minister has praised New Zealand for its work in controlling bovine tuberculosis (Tb) during a fact-finding visit over the weekend.

Owen Paterson, UK Secretary of State for Environment, Food and Rural Affairs, said he had enormous admiration for what had been achieved by the TBfree New Zealand programme.

“You are still a society that is much more closely tied to the land and you have had this spectacular success freeing up your agricultural industry,” Paterson said.

“People understand the importance of agricultural production and food production and there are all sorts of lessons to be learned from what you have done.” . .

NZX to target agricultural firms – Christopher Adams:

Boosting the number of listed agricultural firms is one of the NZX’s main priorities and there are about 20 firms in the Waikato alone that could potentially float on the local bourse, says exchange chief executive Tim Bennett.

While agriculture is New Zealand’s largest sector, earning about half the country’s export income, it is under-represented on the sharemarket compared with other industries such as retail and manufacturing.

Bennett said he saw the lack of listed agricultural companies as a problem and an opportunity.

“As a country that’s got a significant export presence in agriculture, we clearly need to provide capital to that sector and at the moment there’s a relatively small number of companies involved in the agricultural sector on the NZX,” Bennett said. . .

Miraka – it’s Maori for milk:

Given the attention that focuses on Fonterra’s every move, it can seem that the huge co-op and the dairy industry are one and the same thing. But despite its dominance, a band of smaller players is surviving – and sometimes thriving – in the giant’s shadow.

One of the newest is a tiny, Maori-controlled dairy company which kicked off late in 2011, quickly turned a profit and already has a waiting list of potential suppliers after just two seasons.

The company, Miraka, runs a wholemilk factory at Mokai, 30km northwest of Taupo, that is already “full” – meaning it can’t take on any more suppliers. The fact that there is a waiting list is hardly surprising, given that it pays 10c per kg over the going rate at Fonterra.

And, unlike the co-operative model, Miraka does not require its suppliers to hold shares. . .

NZ Processing for China win-win – Tim Fulton:

Favourable signals from China’s elite could be just what New Zealand needs to expand its forestry portfolio, a member of the latest trade delegation to that country says. Tim Fulton reports.

Peter Clark, from PF Olsen, has come home from a week-long trip to China convinced New Zealand is moving closer to a stronger domestic milling industry.

NZ has proven its ability to use “rain, soil, sunshine and nitrogen” to turn seeds into logs for export, but the Rotorua-based chief executive wonders whether the timing is right to do more advanced processing at home. . .

Preparing new staff for the season ahead:

DairyNZ is reminding dairy farmers to prepare for new employees as the new season nears.

DairyNZ people team leader, Jane Muir, says people management practices have improved greatly on-farm in recent years, but there are always opportunities to do things better.

“The recent Federated Farmers/Rabobank Farm Employee Remuneration Survey showed 91 percent of dairy farmers provided permanent employees with written contracts – a sharp increase on previous years,” says Jane.

“This is great news because one of the areas where big wins can be achieved is around the staff recruitment and orientation process – the contract is just one part of that. . .

Rural Bachelor is back and this year there’s an international flavour:

The NZ National Agricultural Fieldays is on the look out for hard working rural blokes to represent the farming community  and are calling for entries across the country to the Trans Tasman. This year the competition will consist of eight finalists (six Kiwis and two Australians) who will be flown to a mystery location on Monday 10th June prior to Fieldays, each of the finalists will then make their way to Fieldays, stopping in specific towns along the way to complete various tasks.

The finalists will be judged on a range of aspects from technical skills, innovation, effort to enthusiasm and crowd involvement. They will also participate in heats throughout Fieldays and be judged on their interaction with Fieldays staff and volunteers, their team spirit, helpfulness, conduct and attitude in relation to Fieldays values. . .


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