Rural round-up

12/02/2020

New risks for dairy, meat products – Sally Rae:

The sun is setting on the “golden run” for New Zealand’s food exports.

While the global supply of dairy and meat products was expected to remain constrained, new global risks were now impacting demand, ANZ Research’s latest Agri Focus report said.

Lamb prices had dropped sharply in the past couple of months but were still at record levels for this time of the season.

A lift in slaughter numbers, weaker prices in certain markets and a slightly stronger New Zealand dollar were the main drivers in the reduction in farm-gate price, the report said. . . 

Dry conditions and fires making life hard for Rangitikei farmers :

Local farmers are struggling to re-home livestock with fires and dry conditions engulfing several hectares of land, Rangitikei’s mayor says.

A fire spanning around 80 hectares near Lake Alice was reported on Saturday, and contained today, but by Sunday evening fire-fighters wre still trying to put it out.

Two helicopters and nine fire trucks were at the scene today dampening hot spots and monitoring for any flare ups.

Fire and emergency says crews were able to contain the blaze faster thanks to help from the public. . . 

Flood-affected farmers urged to ask for help :

Authorities are concerned that some flood-affected farmers in Southland are not asking for help.

Emergency Management Southland (EMS) controller Bruce Halligan says this is despite a huge effort to talk to Southland farmers affected by last week’s flooding.

“We are concerned that some farmers who may have already been contacted, and said they were coping, will need help as they assess the damage to their properties and begin to realise the amount of work and resource required.”   . . 

Nelson’s prospects rise on new dam’s development – Tim Fulton:

Horticulture is set to grow in Nelson as the clock ticks down on a long-awaited dam in Lee Valley.

The Waimea Community Dam, due to be commissioned in February 2022, will release stored water from the headwaters of Lee River to the Waimea Plains. It’s set to be a boon for pipfruit, which already generates high returns from a scarce supply of flat land in the region.

Waimea Irrigators Ltd (WIL) chairman, Murray King, is one of just two dairy farmers in the planned irrigation zone.  . . 

Proposed Oceania pipeline draws irrigators’ ire – Daniel Birchfield:

A North Otago-based irrigators’ collective has slammed Oceania Dairy Ltd’s proposed pipeline project in a submission to Environment Canterbury against its construction.

Oceania Dairy, owned by Chinese dairy giant Yili group, lodged six consent applications with Environment Canterbury for the construction of a 7.5km pipeline that would allow it to discharge up to 10,000cum of treated wastewater into the sea per day.

Waitaki Irrigators Collective Ltd filed one of 117 submissions opposed to the project. Six submitters supported it, and three were neutral. . . 

Medigrowth NZ plan Central Otago medicinal cannabis business:

A Central Otago-based company is forging ahead with plans to develop a medicinal cannabis cultivation, research and manufacturing business in the heart of wine country.

Medigrowth New Zealand, based in Cromwell, plans to provide pure and safe New Zealand-grown cannabinoid medicines to a market that recent research shows is “crying out” for alternatives to existing pain medications.

Queenstown businessman Aaron Murphy has been joined by Medigrowth Australia directors Todd McClellan and Adam Guskich in the New Zealand venture. . . 


Rural-round-up

21/01/2018

Perendale tops sale at $8,600 – Sally Rae:

South Otago farmers Howie and Marion Gardner topped the South Island ram fair in Gore this week, selling a Perendale ram for $8600.

It was bought by the McKelvie family, from Wyndham, and Mike McElrea, from Edievale.

It was a solid sale for Perendales as 37 rams sold for an average of $2686. Richard and Kerry France, from Moa Flat, achieved the second-top price, $8500, for a ram sold to Fernvale Genetics.

Carrfields Otago genetics representative Roger Keach said the  two-day sale was sound but not spectacular, with a lot of good rams not finding homes. . . 

Increase in farm sales bucks trend – Nicole Sharp:

Southland was one of two regions with increased farm sales at the end of 2017.

Data released by the Real Estate Institute of New Zealand (REINZ) showed for the three months ended November 2017, Southland had seven more farm sales than in the same period in 2016.

Taranaki was the  only other region to record an increase, with one more farm sale for the three months ended November 2017 than for the same period in 2016.

REINZ rural spokesman Brian Peacocke said while the sales volume for the three-month period ended November 2017 showed a significant easing from the same period in 2015 and 2016, the figures, except for Southland and Taranaki, reflected the anticipated increase in volumes from the previous month of October for dairy, finishing and grazing properties. . . 

Farmers Fast Five: David Clark – Claire Inkson:

Where we ask a farmer five quick questions about farming, and what agriculture means to them. Today we talk to Mid Canterbury Proud Farmer David Clark.

1. How long have you been farming?
I grew up in the North Island and left school at the end of the 6th Form at a time when farming in New Zealand was very tough coming out of the ’80s downturn. I was very fortunate to be employed by the Cashmore Family at Orere, SE of Auckland. It was during this time that my employers showed me by example that there was a future in farming if you worked hard and did things well, this set me on my course.

2. What sort of farming were you involved in?
My parents had been both Town Milk Dairy and Sheep and Beef Farmers and I was determined to make a start for myself so started contract fencing which then led into a wider range of Agricultural Contracting activities. In 1994 my parents sold their farm and I sold my contracting business and we pooled our resources and purchased a dryland sheep property at Valetta, inland Mid Canterbury. . . 

Barn farmer got the very best advice – Nigel Malthus:

Pareora dairy farmer Peter Collins has paid tribute to the man at the centre of the Mycoplasma bovis outbreak in helping him set up his huge new dairy barn system.

“I was very lucky to have Aad Van Leeuwen to help me with it,” says Collins.

Collins converted his 800ha farm 10km south of Timaru about three years ago and built the 1200-capacity freestall barn two years ago. The farm now milks 1200 cows, including some winter milkers, and supplies the Oceania Dairy milk powder plant at Glenavy.

With the efficiencies afforded by the barn they are on track to produce 600kgMS/cow this season. . .

Record temperatures bring challenges for livestock and farmers:

With New Zealand experiencing record-breaking heatwaves this summer, AgResearch scientists say farmed animals can be susceptible and the pressure is on farmers to manage it.

The extreme temperatures across the country include the hottest recorded temperature in Dunedin and Invercargill over recent days. The increased heat and humidity raises issues of not only the welfare of livestock, but also production from those animals.

Fortunately extensive research over the last 15 years at AgResearch into dairy cows, and how they cope with the heat, has provided important insights for animal management, says senior scientist Dr Karin Schütz. . . 

Fonterra welcomes research findings that milk matters for healthy Kiwi kids:

Fonterra welcomes the findings of a Massey University that show a high proportion of young Kiwi kids are getting the goodness of dairy nutrition by drinking milk.

The research, published in the New Zealand Medical Journal, showed 88 per cent of young children in New Zealand regularly consume cow’s milk and there was no relationship between full-fat milk consumption and the risk of children being overweight from drinking it.

Fonterra General Manager Nutrition Angela Rowan said the Co-operative supports the Ministry of Health guidelines which recommend reduced and low fat varieties for those two years and older. . . 

ASX-listed Bod Australia signs deal to produce hemp-based mānuka honey – Sophie Boot:

(BusinessDesk) – ASX-listed Bod Australia has signed an agreement with mānuka honey producer Manuka Pharma to produce a hemp-based honey product line.

Bod, a developer and distributor of cosmetics and natural medicines, is aiming to develop a range of over-the-counter and therapeutic products using cannabis extracts. It says it’s building a sustainable, multi-faceted cannabis business through a deal with Swiss manufacturer Linnea Natural Pharma Solutions. The honey agreement will see Manuka Pharma source, develop and manufacture the product, with Bod then importing the honey to Australia and packaging it for sale. . .

 


Rural round-up

06/03/2017

Leading by example – Cheyenne Stein

Like many young girls, Megan Hands dreamt of being a vet. Today she’s a farm environmental auditor at Irrigo Centre helping farmers come to grips with environmental policies.

Megan grew up on her parents’ dairy farm in Shannon and it was during the early days of the Horizons One Plan that she revised her career path.

“When I was younger there were some resource management battles going on in Opiki near our farm and my dad started to get involved with that and that’s when I started to take an interest in the resource management side of agriculture.”

How many cows are polluting urban harbours? – Alan Emmerson:

I was really interested to read articles in the Herald on Auckland’s polluted beaches. Well-researched and well-written they showed me a problem of massive proportions. We have our nation’s biggest city’s beaches polluted by sewage every time it rains.

It is not an insignificant problem either as the Herald’s coverage showed. One million cubic metres of wastewater and raw sewage, the equivalent of 400 Olympic swimming pools, pours into Auckland Harbour each year.

The waste comes from 41 points around the city almost every time it rains.

As a farmer, albeit semi-retired, I found the story fascinating. Every week we read in the paper that Greenpeace, the Greens, Fish and Game or Massey’s Mike Joy are slagging farmers over water quality.

When it comes to our biggest city, however, it seems that councils can pollute with impunity. . . .

Water quality everyone’s goal – Neal Wallace and Richard Rennie:

Manawatu dairy farmer James Stewart believes the goals the Government has set in its latest freshwater standards are aspirational and should engage entire communities, rather than leave the farming sector on its own to solve.

“The goal to make 90% of New Zealand’s lakes and rivers swimmable is a message for us all as New Zealanders to step up and do our bit to achieve that,” he said. . . 

Walking access cut as cattle spooked  – Chris Morris:

Dunedin city councillor Doug Hall is at the centre of a fresh land dispute, after locking the gates on public access to a walking track crossing his farm.

It was confirmed yesterday the council had closed the Cleghorn St track, above St Leonards, and the Campbell St track, near Bethunes Gully, following complaints from the landowner, Cr Hall, last month.

The Cleghorn St track had since been reopened on a ‘‘restricted’’ basis, and walkers had been cautioned to beware of stock, but it appeared the Campbell St track would remain closed for now. . . 

Sleepy Central Otago town of Omakau comes of age – Rhys Chamberlain:

Remember when you could stop at an intersection and not have to wait for traffic to pass? Remember when cheese rolls weren’t fancy? Remember when you could wear stubbies to the pub? 

Omakau still has this. It might be small and slow-moving but all of a sudden people are taking notice.

Seemingly people are looking for a place where the climate is good, their kids are safe, the people are welcoming and which doesn’t have the overinflated housing hype of other Central Otago towns. . . 

Otago student wins Oceania scholarship – Sally Brooker:

Former Waitaki Girls’ High School pupil Tara Willans (18) has been awarded the 2017 Oceania Dairy scholarship.

She will receive an annual payment of $3000 for up to three years, plus the opportunity for paid work experience at Oceania’s milk factory near Glenavy during study breaks.

Tara is starting a bachelor of arts and science majoring in politics and environmental management, with a minor in accounting, at the University of Otago.

”We had more applications this year than any other year we have been doing this,” Oceania Dairy general manager Roger Usmar said.

Award finalists announced:

Six finalists have been named in this year’s Otago Ballance Farm Environment Awards.

The finalists are sheep and beef farmers Simon and Kirstin Engelbrecht (Stoneburn), Nelson and Fiona Hancox (West Otago), Graham and Pam Hunter (Tuapeka West), Simon, Sarah, Allan and Eris Paterson (Gimmerburn), Robin and Emma Wightman (Tuapeka West) and dairy farmers Ben and Tanya Davie (Clydevale).


Rural round-up

09/06/2016

Five-year deal ‘huge’ for fine wool sector – Sally Rae:

“A breath of fresh air for fine wool” is how Central Otago farmer Bevan McKnight describes a $45 million deal between Italian textile company Reda and the New Zealand Merino Company.

Under a five-year contract to source fine wool from NZM, 2500 tonnes will be shipped to Italy to fuel the growth of Reda’s high-end suiting fabrics and active product ranges.

Mr McKnight and his wife, Tiffany, of Merino Ridges, in the Ida Valley, were ‘‘absolutely” passionate about merino sheep. . . 

Farmer buoyed by support – Sally Rae:

Port Chalmers dairy farmer Merrall MacNeille has suggested a pilot programme involving the University of Otago, Ministry for Primary Industries and himself, in an attempt to keep selling his milk.

Mr MacNeille and his wife Alex have been inundated with support from customers and the public since being ordered to stop selling raw milk after a tuberculosis-positive heifer was discovered on their property above Careys Bay.

For at least three years, he has been working with the university, supplying milk to use in an electronic milk purifier. Unlike regular pasteurisation, which heated milk to “crazy” temperatures and then cooled it, the machine did not heat the milk. . . 

South Canterbury deer farms join forces for feed for profit project – Pat Deavoll:

Martin Rupert of Mt Peel and Dave Morgan of Raincliff Station have teamed up in a DEEResearch funded project aimed at giving South Canterbury deer farmers the chance to pool skills, knowledge and experience.

The focus farms have informal field days allowing participants the opportunity to discuss shared issues. 

“It’s pretty basic. The theme is “feed to profit.” We all have to feed stock well to make a profit,” said Morgan. . . 

 Driving force behind wildlife sanctuary – Patrick O’Sullivan:

Andrew Lowe’s passion for conservation has seen him named a Member of the New Zealand Order of Merit.

He was the driving force in the establishment of the 2500ha Cape Sanctuary wildlife restoration project at Cape Kidnappers.

It enabled the re-introduction of endangered wildlife species that once flourished at the Cape and Ocean Beach, and contains the greatest diversity of native birds on mainland coastal New Zealand. . . 

Fonterra Eltham – Filling Billions of Burgers World-Wide:

Fonterra today celebrated the official opening of its new slice on slice cheese expansion at Eltham, with the plant now able to produce enough cheese to fill more than three billion burgers each year.

The expansion opening, which was attended by Fonterra farmers, staff, iwi and central and local government representatives, was officiated by Whanganui MP, Hon. Chester Borrows and South Taranaki District Council Mayor Ross Dunlop, along with Fonterra CEO Theo Spierings, Director David MacLeod and Managing Director Global Operations Robert Spurway.

The first cheese marks the successful completion of the 10 month build to install two new lines that will double the site’s sliced cheese production. The new individually wrapped sliced cheese line was completed last year. . . 

Brushing up on first aid down on the farm – Joyce Wyllie:

“Ah, Ah, Ah, Ah…Staying Alive” is the rhythm to play in the mind while remembering guidelines for CPR compressions and breaths.

Who would have thought the Stayin’ Alive disco song by the Bee Gees would have a place on the farm?

The action plan acronym “DRS. ABCD” jogs the memory for action in an emergency situation.  First ensure there is no Danger to patient, self or bystander, check for Response, Send for help, then deal with Airways, Breathing, Circulation and finally D for Doctor.

All this and more will be familiar to those who have done a first aid course.  Jock and I had a day off the farm to brush up on these important skills and increase our confidence  dealing with a crisis. The others on the  training were mostly  farmers but also truck drivers, retired folk and young mums. . . 

Yili’s Oceania Dairy narrows full-year loss as production ramps up, sales surge – Jonathan Underhill:

(BusinessDesk) – Oceania Dairy, the South Canterbury-based dairy company owned by China’s Inner Mongolia Yili Industrial Group, narrowed its annual loss as sales quadrupled from its processing facility at Glenavy.

The loss was $16.3 million in calendar 2015, from a loss of $17.6 million in 2014, the first full year for the company created in 2013. Revenue soared to about $141 million from $34 million a year earlier, according to Oceania’s financial statements. . . 

Leading New Zealand botanists honoured:

Conservation Minister Maggie Barry has presented New Zealand’s foremost botany award, the Loder Cup, to Neill and Barbara Simpson of Queenstown.

One of New Zealand’s oldest conservation awards, the Loder Cup recognises outstanding work to investigate, promote, retain and cherish the country’s incomparable native plant life.

“Neill and Barbara Simpson truly deserve to be honoured with the presentation of the cup at the Green Ribbon Awards tonight,” Ms Barry says.

“Their tireless work to protect native flora and get others involved in looking after it has been an almost life-long journey.

“They are an outstanding couple who have worked with extraordinary dedication, and represent the very best of the New Zealand conservation movement.” . . 

Canada’s dairy farmers say diafiltered milk from U.S. costs them millions – Lucas Powers:

Our wily neighbours to the south have figured out a clever way of not paying tariffs on a certain — let’s say “controversial” — commodity, and Canadian dairy farmers say it’s costing them hundreds of millions every year.

The product in question is called diafiltered milk.

Essentially, it’s milk that’s filtered, flushed with water, and then filtered a second time, with a few other steps along the way. The end product has a high concentration of protein, about 85 per cent, and very little of the fat and lactose that make up natural milk.

‘It’s a classic case of the right hand of the government doing one thing, and the left hand doing another.’
– Maurice Doyon, Laval University professor

The Canadian government allows it to cross the border without a tariff, because if it were dried into a powder, it would have the same amount of protein as the kinds of protein powders allowed to pass through tariff-free under trade agreements. . . 

Moving beyond pro/con debates over genetically engineered crops – Pamela Ronald:

Since the 1980s biologists have used genetic engineering to express novel traits in crop plants. Over the last 20 years, these crops have been grown on more than one billion acres in the United States and globally. Despite their rapid adoption by farmers, genetically engineered (GE) crops remain controversial among many consumers, who have sometimes found it hard to obtain accurate information.

Last month the U.S. National Academies of Sciences, Engineering, and Medicine released a review of 20 years of data regarding GE crops. The report largely confirms findings from previous National Academies reports and reviews produced by other major scientific organizations around the world, including the World Health Organization and the European Commission.

I direct a laboratory that studies rice, a staple food crop for half the world’s people. Researchers in my lab are identifying genes that control tolerance to environmental stress and resistance to disease. We use genetic engineering and other genetic methods to understand gene function. . . 

 


Rural round-up

22/09/2015

Oceania Dairy Guarantees Minimum Payout:

Oceania Dairy has delivered good news to its supply farmers with a guaranteed minimum milk payout of $4.50 per kilogram of milk solids for the 2015/16 dairy season.

As the New Zealand dairy sector reels from continued turbulence in global dairy markets Oceania has sought to support its local supply farmers and their communities with the guarantee.

“With Fonterra reducing its forecast payout for the season to $3.85, we wanted to send an important signal of support and partnership to our supply farmers,” said Roger Usmar, General Manager, Oceania Dairy Limited.

“Backed by our owner, Yili, Oceania Dairy has looked at how we can practically support our suppliers at a difficult time for the sector. . . 

Dairy prices a ‘hot topic’ at world summit – Jemma Brackebush:

Farming leaders from around the globe are gathering in Europe this week for the World Dairy Summit.

The week-long summit gets under way today in the Baltic State of Lithuania.

Federated Farmers dairy chairperson Andrew Hoggard is attending and said the main focus would be on science, the environment, animal welfare and international trade.

A hot topic will be how farmers around the world react to low dairy prices, he said. . . 

Factory expands in ‘leap year’ – Allison Beckham:

The addition of three further milk processing plants to Fonterra’s Edendale factory – already the largest in the world by volume – means Fonterra can make a wider range of products and respond more quickly to demand, managing director of global operations Robert Spurway says.

The company has almost completed a $157 million expansion. A new 2900sq m building houses three processing plants – a milk protein concentrate (MPC) plant to separate protein from skim milk and turn it into protein powder, a reverse osmosis plant to increase the capacity of an existing drier by about 300,000 litres a day, and an anhydrous milk fat plant capable of processing 550,000 litres of cream daily. . . 

Synlait annual profit slumps 46% as lactoferrin sales struggle, forecast payout cut – Paul McBeth:

(BusinessDesk) – Synlait Milk, which counts China’s Bright Dairy & Food as its biggest shareholder, posted a 46 percent drop in annual profit as lactoferrin sales missed expectations and it kept milk payments high enough to ensure supply. Synlait cut its payout forecast for the current season.

Net profit dropped to $10.6 million, or 7.21 cents per share, in the 12 months ended July 31, from $19.6 million, or 13.4 cents a year earlier, the Rakaia-based milk processor said in a statement. That was just within the $10 million-to-$15 million forecast Synlait gave when reporting its first-half results in March. Revenue fell 25 percent to $448.1 million, and the bottom line was also weighed on by a $1.6 million unrealised loss on foreign exchange.

Synlait is “in a global operating environment where milk prices have fallen to unsustainably low levels and this is reflected in our FY15 revenue,” chairman Graeme Milne said. “Our suppliers are an important part of our business and we’ve prioritised paying them higher advances and final payments for their milk, relative to our earnings, in what has turned out to be the first of probably two very challenging years on farm.” . . .

 .s on for New Zealand’s next generation of agri-leaders:

• Applications for the 2016 Zanda McDonald Award now open

Agriculture’s young leaders in New Zealand are being urged to step forward and apply for the 2016 Zanda McDonald Award.

Open to agri-business professionals with natural leadership skills from across New Zealand and Australia, the award comes with a $30,000 prize package comprising; an overseas mentoring trip, a place on Rabobank’s Farm Manager’s Programme and $1,000 cash.

Applicants aged 35 or younger and currently in paid employment in agriculture have until Friday 30th October 2015 to submit their entries. . . 

B+LNZ CHIEF EXECUTIVE SIGNALS MARCH 2016 DEPARTURE:

Beef + Lamb New Zealand chairman, James Parsons has today announced the resignation of the organisation’s chief executive, Dr Scott Champion. Dr Champion will leave the industry body, and also his role as chief executive of the New Zealand Meat Board, at the end of March 2016, after 10 years with the organisations.

Dr Champion commenced with then Meat & Wool New Zealand, as General Manager Market Access and Market Development in March 2006. He then stepped up to the CEO roles in late September 2008.

Most recently, Dr Champion has successfully led Beef + Lamb New Zealand (B+LNZ) through the 2015 Sheepmeat and Beef Levy Referendum which secured over 84 per cent support for the organisation to continue working on behalf of farmers. . . 

First-Time Entrants Enjoy Farm Environment Competition:

It took West Otago farmers Richard and Kerry France about eight years to enter the Ballance Farm Environment Awards (BFEA) but they finally gave it a go last year.

Richard says the experience was well worthwhile and his recommendation to other first-time entrants is to not leave it as long as they did.

“It’s a very well-run competition and it makes you take a ‘big picture’ look at the sustainability of your operation,” he says.

“We put up our hand this year because we felt our farm was ready, but my advice to other farmers would be to get in as soon as you can because that way you will get the benefits earlier.” . . .

Red Meat Profit Partnership and New Zealand Young Farmers partner for education programme:

The Red Meat Profit Partnership (RMPP) has teamed up with New Zealand Young Farmers to promote the value of Education in Agriculture. This new programme offers teachers and students the chance to engage with the Primary Sector to highlight the opportunities within New Zealand’s largest export led industry. This journey is to be “triggered off” with a launch event in Christchurch on September 22.

This programme will offer teachers and students the chance to engage with the Primary Sector to show the vast learning and career opportunities within the industry. Much more than “on-farm” careers this programme encompasses the full value chain – the science, innovation, marketing as well as the global consumer. . . 

Fonterra Shares Further Results of Its Business Review:

Fonterra Co-operative Group Limited today provided a further update on its business review.

Fonterra Chief Executive Theo Spierings said the purpose of the review was to ensure that Fonterra remains well positioned to compete in a rapidly changing global dairy market.

One-off savings generated by changes the Co-operative is making during the business review, such as improving working capital, have already enabled the Co-operative to support our farmers during challenging market conditions. . . 

Zespri shares innovation in inaugural Symposium

Zespri invests over $15 million in kiwifruit innovation science each year and the inaugural Kiwifruit Innovation Symposium on 29 October in Mt Maunganui gives people a chance to see the latest developments for themselves.

Zespri General Manager Marketing and Innovation Carol Ward explains innovation is huge part of the industry with significant investment from Zespri, along with the NZ government and industry. Zespri wants to share this work with its community and hear their ideas about where innovation could go in the future.

“We want to show our growers and industry what’s coming up and the future challenges we’re tackling. The focus for the past few years has been on developing tools and techniques to grow profitably with Psa – now we’re turning our focus back to other areas again and we want to bring industry along with us. . . 

Keeping on top of worms – Mark Ross

Managing internal parasites (worms) is one of the biggest challenges that farmers face in producing healthy stock.

According to research, there is widespread resistance to several drench families in sheep, cattle, deer, and goats on New Zealand farms. This is estimated to cost farmers in excess of $20 million per annum.

Resistance can develop to any drench. So every farmer needs a plan to manage the risk of worm resistance on their farm. Animal welfare and productivity in the future will rely on farm plans that are developed today to control the emergence of drench resistance on farms. . . 


Rural round-up

03/02/2015

Tips to help farmers get through – Sally Rae:

Otago Rural Support Trust co ordinator David Mellish offers some advice to farmers facing the dual challenges of a low dairy payout and a very dry season.

The Otago economy relies heavily on a strong and thriving agribusiness sector.

The agricultural sector faces two potentially significant challenges at present _ the low dairy payout and the very dry season. . .

Westmere Lavender business a personal purple patch – Sally Rae:

Sam Laugesen admits to being an avid animal collector.

Joining the 1400 cows on the Kurow dairy farm on which she lives with partner Luke Campbell and daughters Daisy (4) and Sylvie (3) is her very own farmyard, open to the public, alongside her new small business, Westmere Lavender.

It is home to a variety of chooks, miniature and full sized horses, a sheep, kunekune pigs and Highland cattle, with delightful monikers, such as Handbag the steer.

”I call this my farmlet. All this is mine, the [dairy] cows don’t come here,” she said, as she indicated the paddocks around her lavender patch. . .

Dry will restrict GDP growth – Sally  Rae:

The dry conditions plaguing farmers seem set to take a toll of the economy, with expectations they will take a ”significant chunk” out of total GDP growth over the first half of the year.

Although Westpac economists did not expect it to result in a recession (two quarters of negative growth), given the positive momentum in the rest of the economy, they expected GDP growth to be ”very low” over the coming two quarters.

Dry conditions were most intense on the east coast of both islands but were becoming more widespread. . .

Encouraging signs as Yili MOU takes first steps:

Lincoln University hosted senior management from both Inner Mongolia Yili Industrial Group and its subsidiary Oceania Dairy last week in discussions aimed at building on the Memorandum of Understanding (MOU) signed between Lincoln University and Yili in 2014.

The group was headed by Dr Xiaopeng Huang, deputy director of Yili‘s Innovation Centre, and Mr Shane Lodge, Quality and Compliance Manager of Oceania Dairy.

A range of topics were discussed during the visit, with a particular emphasis on value chains. The visit also included presentations and demonstrations on Lincoln University’s ‘paddock to plate’ research. . .


Rural round-up

30/11/2014

New Glenavy Dairy Factory Officially Opened:

Leading global dairy company, Inner Mongolia Yili Industrial Group (Yili), today officially opened its $236 million Oceania Dairy factory in Glenavy, South Canterbury.

Yili also confirmed plans to invest a further $400 million in the South Canterbury factory over the next five years, increasing its total investment to in excess of $600 million.

Yili is China’s largest dairy company and one of the top ten dairy companies in the world. Oceania Dairy Limited is a wholly owned subsidiary.

The first stage of the Glenavy factory was completed in September and the factory is in its first full season of production. . .

 NZ secondary schools eye agribusiness subjects to bolster industry –  Tina Morrison:

New Zealand secondary schools are trialling an agribusiness programme which aims to feed more students into tertiary study to provide future talent for the industry.

Some 48 students trialled a pilot curriculum at St Paul’s Collegiate School in Hamilton this year with another 85 signed up for next year, the school said in a statement. Seven other schools throughout the country have joined the project and will offer the subject in 2016, with the new subject expected to be available to all secondary schools by 2017, it said. . .

Feed to farmers faster:

SealesWinslow is celebrating as its $10 million upgrade to get feed to farmers faster nears completion. The investment has predominantly focused on its Morrinsville feedmill and distribution centre, officially opened last week, and includes improvements to its counterpart facilities in Ashburton and Wanganui.

The wholly-owned subsidiary of Ballance Agri-Nutrients, SealesWinslow has made the investment to lift its service and manufacturing and distribution capabilities to better meet the needs of its customers.

Speaking at the official opening at Morrinsville, Ballance Chief Executive Mark Wynne said the investment was another way the co-operative was supporting farmers to lift production and productivity. . .

Karaka 2015 Handbook & IPad Catalogue Available Now:

The Karaka 2015 Handbook is online now for New Zealand Bloodstock’s National Yearling Sales Series, as well as the catalogue being loaded on to the free iPad application.

Designed as your ‘go-to’ guide for all things Karaka, the Karaka 2015 Handbook contains detailed information that will make your trip to Karaka in January a breeze.

The Handbook contains all the information you will need to make your selection process a breeze from vendor information and sire previews, to bonus schemes, Karaka Million information, highlight lots and past successes. . .

Figured and LIC Announce Partnership:

Strategic partnership to deliver integrated technology solution to farmers

Figured, (www.figured.com), New Zealand’s innovative farm financial management software provider, and farmer-owned co-operative LIC (NZX:LIC) today announced a new strategic partnership combining LIC’s leading position in the herd improvement industry with Figured’s expertise in cloud-based farm accounting. LIC has also invested in Figured to secure a cornerstone shareholding, with an 18.8% equity stake, and an LIC director will also sit on the board.

“The partnership with LIC is an important endorsement of our vision of improving the business of farming. Our proven innovation in farm accounting and early market traction provides a compelling proposition for LIC,” said Paul Reid, Chief Executive of Figured. “By offering farm accounting in a cloud-based platform we enable the whole farming team to work together to monitor, re-plan and review financial performance and improve farm profit in real-time from any location.” . .

 


Rural round-up

05/08/2014

Farmprint a form of insurance – Sally Rae:

Stock rustlers beware. Mosgiel-based company Oritain is using its pioneering approach to scientifically certify the origin of food products to help address the multimillion-dollar issue of stock theft.

The company, which is based at Invermay, uses an ”origin” based system, identifying the naturally occurring chemical properties of food products, which were influenced by the soils and environment in which they were produced.

It works with food producers throughout New Zealand and around the world to protect their brands and reputation – and now it is using the same system to protect farmers’ stock. . .

Enjoying role helping select merino genes – Sally Rae:

Anna Vaughan got ”hooked” on merino sheep while undertaking work experience at Lake Coleridge Station, in the Canterbury high country, during her university summer.

Now, Miss Vaughan (31) is combining her passion for the breed and for farming with her work as genetics project manager for the New Zealand Merino Company (NZM), where she is heavily involved with its central progeny test (CPT).

Miss Vaughan is from a farming background – her parents were dairy farmers – but her last four secondary school years were spent at Te Anau, where they managed a sheep and beef farm for Landcorp. . .

Three generations growing veges – Kay Blundell:

The third generation of Gordon Sue’s family is tilling the soil and growing vegetables in Horowhenua, catering for growing demand from supermarkets throughout the North Island.

Sue’s great-grandfather came from China in the 1860s to dig for gold. When that was elusive he turned his hand to growing vegetables.

Sue’s father was born in Alexandra, Otago, went back to China and moved to Wellington where he ran a greengrocer’s shop before he and his wife moved to Levin when Sue was a 1-year-old.

Since then the family has made a “comfortable living” market gardening. . .

New machine age for Japan’s ageing farmers:

New types of agricultural machinery with functions and designs that differ from conventional tractors and rice planters are attracting new attention in Japan.

They include high-tech machines for assisting elderly farmers whose physical strength is weakened. Machines with designs intended to attract young people are also being released.

Agricultural machinery makers are trying hard to expand the domestic market for the new styles of products.

The average age of farmers in Japan reached 66.2 in 2013. For agricultural machinery makers, how to support farmers with waning physical strength is an important challenge. . . . . .

Commodity prices drive rural appetite – Larry Schlesinger:

RURAL property investors are ­paying close attention to commodity prices as appetite improves for ­agribusiness investments.

In its latest Rural and Agribusiness report, Colliers International said many agriculture regions had passed their ­bottom points and that a positive ­agricultural commodities outlook was “key” for the sector.

Commodity prices reflect supply and demand market dynamics. Rising ­commodity prices often act as leading indicators of rising property values provided the outlook is also favourable in terms of interest rates, rainfall outlook and water availability. . .

Oceania Dairy Factory Receives First Milk:

Oceania Dairy’s new $214 million Glenavy milk processing plant received its first intake of milk from South Canterbury and North Otago farmers today.

The milk will be used for the next stages of the plant commissioning as the 14 -month construction programme draws to its conclusion. The initial plant testing has been completed using water. The final six weeks of commissioning and performance testing will now be undertaken with milk before the final handover of the factory from construction to production by the middle of September

“This is a landmark day for Oceania Dairy Limited, for our supply farmers and for the district,” said Aidan Johnstone, Chief Executive Officer for Oceania Dairy.

“The factory represents a significant investment by Oceania’s owners, Yili, that will have an ongoing impact on the rural economy of the region. . .

Rural TV

We had a massive weekend in Wanaka smashing the boots on the D-floor to the ultimate NZ country - this guy had a birthday & his pals throw him a party - hope you all had a good one!


Rural round-up

01/08/2014

Westland forecast follows Fonterra’s suit:

The dairy cooperative, Westland Milk Products, has charted a similar course to Fonterra’s benchmark forecast released yesterday for the current 2014/15 season, by announcing a pay-out forecast of $6 to $6.40 per kilogram of Milksolids (kg/MS).

“Given Fonterra’s announcement yesterday, farmer-shareholders on the Coast appreciate this early heads-up from our co-op,” says Renee Rooney, Federated Farme0rs Dairy chairperson.

“Even better is firming confirmation of the 2013/14 final payout in the $7.50 – $7.70 kg/MS range. Of course we’ve got retentions on top but it is set to be a good payout and Westland’s supplier communication has been pretty good. . .

Heads of Agreement and Strategic Relationship formed between Te Rūnanga o Ngāti Apa and Lincoln University:

Te Rūnanga o Ngāti Apa and Lincoln University today announced the signing of a Heads of Agreement and Strategic Relationship.  This relationship agreement forms the basis for partnerships across education, training, research and commercial development.  The Ngā Wairiki-Ngāti Apa people of Whangaehu, Rangitīkei and Turakina own the Rūnanga, and have interests in seeing their people developed in all levels of the primary industries.  The Rūnanga is also keen to see the general Māori population in the region given better access to primary sector training and tertiary education.

Rūnanga Chairman Pahia Turia said that “Through our Treaty settlements we have land, and we have recently established Te Hou Farms Limited Partnership which purchased the historic Flock House farms near Bulls, early in June.  We are therefore committed investors in the primary sector, and we have a real interest in seeing our own people developed and working at all levels in the primary sector on and around our investments.” . . .

The Changing Face of the Global Dairy Industry:

Standing in front of the milk powder dryer of Oceania Dairy Limited’s new factory at Glenavy, Shane Lodge has a feeling of deja vu – but with a difference.

Shane’s 30 year career in the dairy industry has seen him involved in new plant construction for Fonterra and New Zealand Dairy Limited. The difference this time, is that Oceania’s owners are Chinese and that is a reflection of the changing face of the global dairy industry. . .

How to take the anxiety out of farm succession planning:

Many farmers put succession planning into the too hard basket because of rising capital values, but it’s a crucial process that will be a lot less fraught with danger if family members are involved in the process, says Neil McAra, Crowe Horwath’s Managing Principal – Southland.

“It’s never too early to start planning for retirement and farm succession,” said Mr McAra, who noted that one key to a successful plan was distinguishing between reward for services provided by family members and the risk/reward for ownership/investment in the business.

Another key element was for the farm owners to ensure they had considered whether they would have an ongoing role in the business, and define what that role would be.
“To alleviate the possibility of things getting off track, it is important to ensure that owners adequately plan for the future of the farm and the people within it, so that all runs smoothly and they can enjoy the transition process.” . .

Fisheries (Foreign Charter Vessels and Other Matters) Amendment Bill passes third reading:

A bill to strengthen the regulation of foreign-owned commercial fishing vessels operating in New Zealand waters has passed its third and final reading in Parliament today.

The Fisheries (Foreign Charter Vessels and Other Matters) Bill will require all foreign charter vessels to carry the New Zealand flag from 1 May 2016, and operate under full New Zealand legal jurisdiction.

“This bill will help maintain our reputation around the world. It shows that we are serious about the fair treatment of fishing crews, the safety of vessels and New Zealand’s international reputation for ethical and sustainable fishing practices,” Mr Guy says. . .

Seafood New Zealand Says Kaikoura Conservation Legislation a Community Template:

Seafood New Zealand has hailed the passage of the Kaikoura (Te Tai-o-Marokura) Marine Management Bill by Parliament today as a template for seafood and environment conservation measures throughout New Zealand.

Parliament passed the bill into law on the last day of sitting before the House rose for the election campaign.

Seafood New Zealand Chief Executive Tim Pankhurst says the legislation is designed to serve the long term interests of those who use and enjoy the Kaikoura coastline. . .

Rural Valuer recognised with top industry award:

QV registered Valuer David Paterson has had his outstanding service to the valuation profession recognised with the New Zealand Institute of Valuers (NZIV) Premier Award – the John M Harcourt Memorial Award.

Paterson, who has been a valuer for more than 30 years and is the National Manager of QV business, Rural Value, accepted the award in front of 300 attendees at the NZIV conference in Rotorua earlier this month.

He told the audience, “I feel honoured to receive this award, especially when you note some of the previous recipients.” . .

Aussie investors to sell their NZ vineyard investments:

The high value of the New Zealand dollar has motivated the Australian owners of several vineyards in the heart of New Zealand’s premier sauvignon blanc grape growing region to place two of their properties on the market for sale.

Both neighbouring vineyards are in the highly-fertile Waihopai Valley in Marlborough. The larger of the two vineyards is a 43 hectare holding – with almost 38 hectares planted in a mix of sauvignon blanc and pinot gris varieties. The second vineyard is a 36 hectare landholding planted in almost 24 hectares of sauvignon blanc grapes. . . .

 


2nd Chinese company to process milk in NZ

12/01/2013

Chinese company Yashili International plans to invest $210M in a milk processing operation in New Zealand.

Yashili International Holdings, which manufactures and distributes infant milk formula products in China, is the latest Chinese company looking to invest in New Zealand, with plans to build a 1.1 billion yuan ($210 million) processing plant.

The Chaozhou City, Guangdong-based company’s board signed off on a project to set up a manufacturing facility in New Zealand to process up to 52,000 tons of finished and semi-finished products including base milk powder by the second half of next year, according to a statement on the Hong Kong Stock Exchange. Yashili currently sources most of its raw milk from New Zealand.

The company will spend 950 million yuan on acquiring land and building the plant, and a further 150 million yuan as working capital for a New Zealand subsidiary.

The local unit, Yashili New Zealand Dairy Co, was incorporated in July last year according to Companies Office records and has entered into a conditional agreement to buy land where the facility will operate. The acquisition is subject to certain conditions, including approval from the Overseas Investment Office. . .

Last month another Chinese company, Yili, announced plans to buy Oceania Dairy Group’s  land and plans for an infant milk processing plant between Glenavy and Waimate in South Canterbury.

Federated Farmers dairy chairperson Willy Leferink said if the factory went ahead it would probably give the local farmers a good opportunity to get the best milk price for their milk.

There would be competition in the region between several companies including Synlait, Fonterra, possibly even Westland Milk.

Leferink said there would be plenty of supply available for a new plant.

Any new start-up company has the right to milk from Fonterra for three years. After that it would need its own supplier contracts.

There was still a “huge expansion” taking place in the dairy industry in that region, with a couple of big irrigation schemes like Hunter Downs and South Waitaki still to come off which would increase the amount of irrigated area down there and could lead to increased milk supply.

Leferink said he did not see “a hell of a lot of stretch” in the supply base until the country reached the maximum number of cows it could sustain in the long-term, and even then cows could produce more milk than they were currently.

“Also New Zealand has got a fantastic reputation when it comes to food safety . . . I dare say second to none . . . and these people are looking for very safe food because the Chinese don’t trust their own food because of the melamine scandal and a couple of other things,” he said. . .

Farmers wanting to supply Fonterra have to buy shares in the co-operative.

Supplying companies like  Yili or Yashili could be more attractive for some farmers who don’t want, or don’t have the money, to buy shares.


Oceania Dairy gets resource consent

27/02/2010

Environment Canterbury and Waimate District Council have approved Oceania Dairy’s resource consent application for a dairy processing plant at Glenavy.

The plant plans to process approximately 220 million litres of milk and produce around 32,000 tonnes of milk powder a year. It is expected to be operational for the start of the 2011/2012 season.

It’s a $95 million development and the company is now concentrating on its $74.75-million capital raising.

Farmers have the option of being shareholders and suppliers or just suppliers. The company is also seeking investment from non-farmers.

Farmers who supply Fonterra have to own shares in the company. With Oceania farmers could supply the company without having to make a capital investment. That could be attractive to people starting in the industry or those already in dairying who want to lower their debt levels.

However, this is a new company and farmers will have to weigh up whether or not they can get a return from a company without a track record which would be close to or better than that from Fonterra.

Only suppliers can own Fonterra shares. Oceania offers an opportunity to invest in dairying for non-farmers but no investment is risk free and only time will tell if this company can succeed in export markets.

Most forecasters are expecting stability or a slight reduction in milk prices in the short to medium term. But most also recognise that the world is short of food and any company from New Zealand selling milk does so with the assistance of our reputation for high standards of food safety.


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