Rural roundup

September 17, 2018

2018-19 lamb and beef exports forecast to both break $3 billion for the second time:

As the 2018-19 meat export season begins, Beef + Lamb New Zealand’s (B+LNZ) New Season Outlook 2018-19 report forecasts beef, lamb, and mutton prices to remain firm at historically high levels, helped by an expected weakening New Zealand dollar and strong export demand.

“We forecast slight increases in farm-gate prices for lamb and mutton in 2018-19, as prices are expected to remain relatively steady in New Zealand’s main export markets and benefit from an expected easing of the New Zealand dollar,” says B+LNZ Chief Economist Andrew Burtt. . .

NZ sheep & beef farm profits forecast to slip as expenses rise – Tina Morrison:

(BusinessDesk) – New Zealand sheep and beef farm profits are expected to decline in the coming year as higher spending outweighs a lift in revenue from the products they sell.

The average farm is expected to earn a pre-tax profit of $129,700 in the June 2019 year, down 2.8 percent from a pre-tax profit of $133,500 in the 2017/18 year, according to industry group Beef+Lamb New Zealand. . .

China is the key market for New Zealand sheep meat – Keith Woodford:

Some weeks back I wrote how the New Zealand sheep industry is in a sweet spot, with record prices. I also wrote that China is now easily our largest sheep meat market by volume. Here I share the story of some of the things that have been happening in that market, and how demand for New Zealand sheep meats has potential to further increase.

The starting point is to recognise that China’s own sheep industry is much bigger than New Zealand’s.  Whereas New Zealand has about 27 million sheep, China has about 150 million. However, most of these are farmed on arid lands in the west and far north of China, often at high altitude. Much of the product is consumed by the local people and does not reach the big cities. . .

Dry in south but wet up north – Annette Scott:

A mild, dry winter and a good start to spring has set Canterbury farmers up well but there’s concern of a big dry setting in.

Opuha Water chief executive Andrew Mockford said farmers have revelled in the great winter farming conditions but they have not put snow on the hills or water in the lakes and rivers.

While there was rain and just the third snowfall of the season early this month, there has not been enough to maintain the level of South Canterbury’s Lake Opuha. . .

Fonterra announces manager Fonterra Brands NZ :

Fonterra is pleased to welcome Brett Henshaw to the Co-operative as Managing Director, Fonterra Brands, New Zealand (FBNZ).

Brett is currently Managing Director of The Griffin’s Food Company and he will take up his role with Fonterra in the first week of December.

Fonterra Chief Operating Officer, Global Consumer & Foodservice, Lukas Paravicini, says “we are excited about Brett joining the team. He has an extensive 30-year career in FMCG and we are pleased he is coming on board.  . .

MPI to get tough on stink bug ships:

Biosecurity officials are promising to take tough action against cargo vessels believed to be infested with brown marmorated stink bug during the upcoming risk season.

“Each arriving vessel will be dealt with on a case-by-case basis. However, if our officers ultimately determine a ship is infested with stink bug, it will be prevented from discharging its cargo and directed to leave New Zealand,” says Steve Gilbert, Director Border Clearance Services, Biosecurity New Zealand

“We have also introduced a very low threshold for determining contamination. If we find a single bug, we will thoroughly investigate whether the entire vessel is contaminated. . .


Rural round-up

August 13, 2018

Synlait Milk’s $2b man John Penno only wanted to be a farmer – Heather Chalmers:

John Penno says he only wanted to be a farmer; instead he set up a major export dairy company.   

On August 10, the Synlait Milk managing director officially stepped down after turning a bare paddock near Dunsandel in Central Canterbury into a multi-product company now worth $2 billion.

With a second $260 million nutritional powder manufacturing site at Pokeno, in north Waikato, set to start processing next year for the 2019-20 season, the company had much more growth to come, he said.   . . 

Lake Opuha holds out for last minute winter snow – Pat Deavoll:

It’s not just the ski fields looking for a late-season top-up of snow.

Opuha Water chief executive Andrew Mockford is hoping “mother nature will finish the winter with a flourish” and provide the much-needed snow to melt and fill irrigation reservoir Lake Opuha in South Canterbury.

There was less snow than usual this year and it was higher up the mountain, he said. . . 

 

Red meat sector confident despite some head winds – Allan Barber:

Since I attended the 2016 conference, having missed last year’s, several things have changed considerably: two years ago Donald Trump wasn’t President, Silver Fern Farms hadn’t concluded its capital raising with a Chinese investor, alternative proteins and non-meat burgers weren’t on the industry’s radar and there was little recognition of the need for a Red Meat Story.

This year the conference programme acknowledged these changes by focusing on disruption to global trade, the China influence, heightened consumer expectations, the effects of the digital revolution and the importance of building consumer trust by telling our story about product provenance, traceability and environmental credibility. The conference was very well attended by farmers, processors and service providers, all of whom were optimistic about meeting the challenges ahead of an industry which has faced many different threats to its survival in the past 140 years. . . 

Unyielding weather for European fruit and vegetable growers, how is the heat impacting crops?

Wrinkled tomato skins, curly cucumbers and small plums – these are some of the effects of drought on fruit and vegetables in Northern Europe. Exactly how great is the impact of heat and water shortages on crops, yields and growers in the region?

Hot and dry weather affects field crop farming the most, says Cindy van Rijswick, RaboResearch Fruit and Vegetable Analyst. “Yields are lower, but fruits and vegetables are also smaller in size and sometimes have quality issues. Because of the high temperatures or lack of water, growers have smaller plums, wrinkled tomatoes, and more misshapen cucumbers. In the coming months, the harvest of apples, pears and potatoes may potentially be smaller in size and yield too.” . . 

Agribusiness professional wins Future Leader role:

As a full-time rural valuer and part-time farmer George Macmillan has insights into many aspects of the agricultural industry.

Based in the Hawkes Bay, he lives close to his family’s 380ha sheep and beef farm south west of Hastings and has recently taken over the lease of a 50ha block. As a foot in the door towards land ownership, he will use the block to grow out the dairy cross beef calves he rears every year to heavier weights and will possibly finish a small number.

George, along with Northland farmer Mack Talbot Lynn, has been appointed a Beef + Lamb New Zealand Future Leader and will represent New Zealand at the International Beef Alliance conference in Canada in September. . .

For farmers, traumas tariffs are far worse than any bad trade deal – Bart Ruth:

As a candidate, Donald Trump promised to open new markets to trade, rein in regulatory overreach, cut government spending, and rebuild infrastructure and communication networks to enable rural America to compete in the global economy.

While there have been some positive changes under President Trump – when it comes to American agriculture, we are headed toward economic disaster.

As a sixth-generation farmer and a lifelong Republican, I am alarmed over the impacts that the administration’s actions are having on the agriculture economy and rural America. President Trump has shown a blatant disregard for international institutions, sound science, proven economic theory, and the history of protectionist policy. . .


Rural round-up

January 14, 2018

Opuha River ‘flushing’ to control algae, didymo barely noticeable with river in flood, Opuha Ltd says – Elena McPhee:

It may have been barely perceptible to the eye, but releasing water from the Opuha Dam on Friday has hopefully wiped out a large quantity of didymo and other algae in the river, Opuha Water Ltd says.

Operations manager Craig Moore said the dam released a flow peaking about 65 cubic metres per second (cumecs), or 300,000 cubic metres in total during the “flushing” process in the Opuha River on Friday morning.

The river “pulse” stayed within river margins, and the wave was not really noticeable as it made its way downstream, Moore said. . .

Farmers make tracing stock hard -Neal Wallace:

Eradication of Mycoplasma bovis is still the Ministry for Primary Industry’s goal but farmers appear unconvinced it is achievable.

Another case confirmed on an Ashburton farm this week took the total to 14 but some of the more than 800 farmers who attended packed meetings with MPI officials in Methven and Ashburton last Thursday think that while admirable, eradication is unlikely and they might have to learn to live with the disease.

The ministry’s response incident controller David Yard announced plans to test three samples of milk from every dairy farm in the country from February, including milk entering the food chain as well as milk excluded from the vat in a bid to uncover any infection clusters. . . 

Lambs wool in demand – Alan Williams:

Lambs’ wool was in short supply and sold strongly at Thursday’s wool sales in Christchurch and Napier.

Buyers pushed up prices as they worked to fill orders, especially for fleece at 30 microns and lower, PGG Wrightson South Island sales manager Dave Burridge said.

Those wools were up to 8% higher in price with 30 to 32 micron lambs’ wool up to 4% dearer in Christchurch. . . 

Sex on the farm: How gene editing can revolutionize feeding the world – Ed Maixner:

(Editor’s note: Change can be difficult, especially when it comes to adopting new ways of farming and producing food. But there are big innovations underway in labs and universities that analysts describe as “revolutionary,” enabling the creation of new plants and animals in months rather than decades. For the next few weeks, Agri-Pulse will explore “The Breeding Edge” – a seven-part series on how these new precision methods for plant and animal breeding are set to transform global food production and the potential impact for agribusinesses, farmers and consumers around the world.)

The process of producing food, protecting the environment, and improving animal health is advancing at a seemingly breakneck pace.

These advancements are driven in part by new scientific discoveries, genetic research, data science, enhanced computational power, and the availability of new systems for precision breeding like CRISPR—an acronym for Clustered Regularly Interspaced Short Palindromic Repeats. . . 

C


Opuha shutdown reinforces need for more storage

February 25, 2015

The Opuha dam has provided water for irrigation, recreational users and wildlife since 1998.

But irrigation has to stop today:

. . .The Opuha Dam serves 250 farmer-shareholders, who have 16,000ha under irrigation.

“We have reached the bottom of the bucket,” Opuha Water chief executive Tony McCormick said in circular to members. By Wednesday the lake will be at 371m with a little under 1.5 per cent storage remaining, he said.

As part of an agreement to reduce the minimum Opihi river flows in early February, Opuha Water will cease irrigation and the last remaining storage will be used to try to keep the river flowing for the next 10 to 12 days, he said.

The lake level is falling at just over half a per cent a day, he said.

“There have been several small rain events in the area over the last fortnight but they have had very little effect on inflows to the dam and in the catchment generally,” McCormick said. . .

The lack of water will have environmental, economic and social implications and reinforces the need fro more water storage, a need that will be partially met by a new storage lake:

A man-made lake that could hold enough water to fill 12,000 Olympic-sized swimming pools is planned to supply more reliable irrigation in Canterbury.

The lake would likely hold 30 million cubic metres of water with storage options ranging from 5m/cum to 100m/cum and was expected by managers of the Rangitata Diversion Race (RDR) to go to the resource consent stage by the end of the year.

A 30m/cum development would cost $120 million and depended on irrigator and bank backing and the support of the community and nearby neighbours.

RDR managers said initial support was from farming, hydro, environmental, Maori and government groups. They have been told to “hurry up” and get on with the project as drought hits farmland around Lake Opuha in South Canterbury.

A large lake would open up the possibility of supplying water to South Canterbury farmers as well as the four irrigation schemes and hydro-generation the RDR has serviced over the past 70 years in Mid Canterbury.

The lake would be developed on Ruapuna farming land next to the Rangitata River, about 10 kilometres  downstream of the RDR canal intake, most of which was already owned by the company.

RDR management chief executive Ben Curry said the business case for building a large water storage pond had become more compelling because of drought on Canterbury’s east coast.

He said RDR managers had been working on the project for four years, buying the farm in 2009, and believed the time was right to move forward.

“We only have to look at what is happening with the Opuha to see the need for water storage and we are looking at creating something which could have a regional context to it. We could build a relatively modest storage pond of 10m/cum which would serve it’s purpose and we could get a digger in and get the job done, but … there is opportunity because of the locality we have chosen on the boundary between South and Mid Canterbury that could serve the region.”

Curry said the pond could relieve some of the pressure from rivers off Lake Opuha and help recharge lowland streams and aquifer water.

The project would likely be funded mostly by debt, he said. . .

Irrigation New Zealand is supportive:

Tomorrow’s early cessation of irrigation from Lake Opuha reinforces the need for further storage infrastructure like the Klondyke Storage Pond proposal being launched today by the Rangitata Diversion Race Management Ltd (RDRML), says IrrigationNZ Chairwoman Nicky Hyslop.

“It’s devastating for South Canterbury that Lake Opuha can no longer support irrigation for the remainder of the season. The Opuha Water Team has done everything they can to eke out supply, but without rain they have no further options and any remaining water will need to be diverted to maintain the health of the river,” says Mrs Hyslop.

“Opuha’s early shut-down reinforces again how water-short South Canterbury is and illustrates the need for a wider network of water storage infrastructure across the region to enable reliable water supply during dry periods,” she says.

“IrrigationNZ applauds today’s announcement by the RDRML of its intentions to build a storage pond at Klondyke in the Mid Canterbury foothills. As well as improving security of supply for Mid Canterbury irrigators, this project has the potential to deliver water south which would be of huge benefit to South Canterbury farmers,” says Mrs Hyslop.

“IrrigationNZ supports further investigation of this proposal as New Zealand needs to be thinking laterally about how we redistribute water resources in the most effective manner. The RDRML Klondyke Storage Pond project is a fantastic first step in this direction,” says Mrs Hyslop.

I ran into a friend with a business in Oamaru yesterday. She said they had been expecting a slow-down and it had come as a result of the lower dairy pay out and the drought.

Most North Otago irrigation schemes are fed from the Waitaki River which gives 99% reliability but some people rely on other schemes which have imposed restrictions and not everyone in the district has irrigation.

In South Canterbury, the impact of the drought has been more severe because of wider irrigation restrictions.

Droughts are an ongoing concern for farmers on much of the South Island’s east coast and increase water storage is the answer to that problem.


%d bloggers like this: