Rural round-up

April 24, 2018

Precious arable land – Eric Crampton:

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

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

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

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

We are growing houses instead of food – Feds:

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

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

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

Auckland Council rates policy fails to value private land conservation:

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

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

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

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

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

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

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

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

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

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

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

What you see above is crazy exciting for our family!

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

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

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

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

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

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

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

Good Idea! Feds Likes NZX Primary Sector Index Concept:

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

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

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

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

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

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


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