Rural round-up

August 18, 2016

Trade access landscape increasingly crowded – Allan Barber:

At the same time as the TPP is struggling to get across the finish line before the next American President takes over early next year, there are several signs of access to the USA freeing up for some of New Zealand’s competitors.

The announcement of greatest significance concerns access for Brazilian beef after 17 years of negotiations which will be permitted to begin in September. Admittedly Brazilian plants must still gain accreditation before they can export to the USA and, when they do, their entitlement will be included in the ‘other country’ quota of 64,800 tonnes at the same preferential tariff of 4.4 cents per kilo as New Zealand for its 213,402 tonne quota. However, there is a possibility Brazil’s eagerness to export, combined with its weak currency, will encourage it to sell at the 26.4% general tariff rate. . . 

The pros and cons of PKE – Keith Woodford:

In recent weeks, PKE has been in the spotlight.  The key reason for this has been the decision by Landcorp to phase out its use on the Landcorp farms. This has brought back into focus Fonterra’s 2015 recommendation to farmers to only use 3kg per cow per day. It has also given a platform for various other groups to promote their own perspectives.

Amongst the environmental groups, there are two polar perspectives. Greenpeace says we should stop using all PKE. However, the World Wildlife Fund (WWF) says that palm oil production is OK as long as it sustainable, and certified by the Roundtable on Sustainable Palm Oil (RSPO). . . 

A farming mum who loves helping others – Kate Taylor:

Regular visitors to the Facebook site, Farming Mums NZ, will be familiar with an online blogger whose zest for life seems never-ending. Kate Taylor reports.

There’s an element of irony about the name of Chanelle O’Sullivan’s daily blog, Just a Farmer’s Wife, because it couldn’t be further from the truth.

She is, actually, a farmer’s wife, but is also a mother of two, qualified vet nurse, blogger, project manager, 2016 scholar on the Kellogg Rural Leadership Course, guest speaker, online business woman, long-distance runner and admin for several flourishing Facebook pages.

Chanelle lives at Waitohi in South Canterbury with husband Dave, who is working on a farm on Rockwood Rd. He grew up near Timaru and has a Diploma in Farm Management from Lincoln University. . . 

Silver Fern Farms shareholders vote conclusively in favour – Allan Barber:

The long awaited special meeting finally took place this afternoon with the company’s desired outcome. 80.4% of shareholders voting voted in favour of the Shanghai Maling deal, a small reduction from the 82% that voted in favour last October.

At today’s meeting in Dunedin, as soon as the result was announced, it appears John Shrimpton who led the requisition group shook SFF chairman Rob Hewitt’s hand and agreed that democracy had had its say and the campaign was over. . . 

Clear vision for red meat sector in sight at last – Allan Barber:

After many years of relatively low levels of expenditure on market development and promotion, the red meat industry faces a major challenge in deciding how best to create the desired image to appeal to the world’s affluent consumers. Currently expenditure is divided between generic promotion, funded by farmer levies, and brand advertising by the meat exporters, with a small amount of joint funding in some of the less mature markets.

Delegates at the recent Red Meat Sector Conference heard about the importance of telling a believable and emotionally compelling story built on the heritage and healthy attributes of New Zealand and its farming sector. But they were also challenged to make sure this story is constructed on credible building blocks of environmentally sustainable farm, animal welfare and processing practices. . . 

New primary sector groups to support climate change goals:

Two new reference groups will help support New Zealand’s climate change goals and reduce emissions from the livestock and forestry sectors, Primary Industries Ministers Nathan Guy and Jo Goodhew have announced today.

“As part of ratifying the Paris agreement on climate change, New Zealand has set a target of reducing our emissions by 30 per cent below 2005 levels by 2030. The primary sector will need to be an important part of that,” says Mr Guy.

“The Biological Emissions Reference Group will bring together a wide range of agricultural, horticultural and farming stakeholders to collaborate with Government and build a solid evidence base. This will ensure we have the best possible range of information on what can be done right now to reduce biological greenhouse emissions. . . 

Glass half-full for dairy after price lift – Alexa Cook:

Dairy farmers could finally have break-even milk prices this season, AgriHQ dairy analyst Susan Kilsby says.

This season’s forecast of $4.25kg/ms is the third season of prices below $5.

Most farmers need about $5kg/ms to cover their costs, which is about $US3000 a tonne for whole milk powder, the industry’s main export.

In the overnight Global Dairy Trade auction prices lifted by 12.7 percent and whole-milk powder surged 18.9 percent to $US2695 a tonne. . . 

Countdown Egg Producer Programme for Free Range and Barn launches today – Supermarket assures farmers their investment in free range and barn eggs will pay off:

Countdown has today launched an Egg Producer Programme to support free range and barn egg farmers to increase the supply available for Countdown stores and our customers.

The Egg Producer Programme provides farmers an opportunity to increase investment in free range and barn egg capacity, as Countdown will make a commitment to take future supply through individual partnership agreements.

Currently, just 18 per cent of eggs produced in New Zealand are free range. Countdown wants to put in place plans with farmers, to increase the availability of the free range and barn eggs.  . . 

Bill to streamline Food Safety passes first reading:

Food Safety Minister Jo Goodhew is welcoming the Food Safety Law Reform Bill having passed its first reading in Parliament last night, with unanimous support.

The Bill is the final step in implementing the Whey Protein Concentrate (WPC) Inquiry recommendations, in particular those which require legislative change.

“This Bill is an important part of putting the false Botulism scare behind us. It illustrates the Government’s commitment to ensuring the safety and suitability of food, which is vitally important for the health of consumers – both in New Zealand and overseas – and our international trade reputation,” says Mrs Goodhew. . . 

Retirement of Fonterra Director:

Fonterra Co-operative Group Limited today announced that Mr John Waller ONZM will be retiring as an Independent Director on the Fonterra Board with effect from 31 August 2016.

Fonterra Chairman John Wilson said that Mr Waller is retiring to reduce his workload after serving on the Fonterra Board since 2009. He chaired Fonterra’s Fair Value Share Review Committee, the Trading Among Farmers Due Diligence Committee and the Milk Price Panel, and was a member of the Audit and Finance Committee and the Risk Committee.

“John has been an outstanding director of our Co-operative and has made an invaluable contribution by combining his strong personal values, drive and leadership with commercial common-sense. I am pleased that after such a significant contribution John is finding the time to rebalance his commitments so that he can spend more time with his family and pursue his other interests. . . 


Rural round-up

November 12, 2015

Fonterra’s silent majority hold key to shareholder vote on number of directors:

Fonterra shareholders who want to send a message to their company have been encouraged to support the proposal to reduce the number of directors on the company’s board.

Colin Armer and Greg Gent, the two former directors behind the proposal, say that shareholders are the only people who own the company’s constitution and the only people who have the right to change it.

Mr Gent said he wanted to encourage those who do not normally vote to do so this time. . . 

Improving resource base key to sustainable growth:

Improving the quality of our natural resources is the key to sustaining economic growth in our primary sectors right across regional New Zealand, says Economic Development Minister Steven Joyce and Primary Industries Minister Nathan Guy.

Ministers Joyce and Guy today launched the updated Building Natural Resources chapter of the Business Growth Agenda with an emphasis on lifting primary sector productivity while improving our environmental outcomes at the same time.

“Our natural resources are central to achieving growth and more jobs in New Zealand’s economy, especially our regional economies. We are committed to using new scientific techniques and innovations, alongside infrastructure developments in information technology and water storage, to achieve both productivity gains and environmental gains,” says Mr Joyce. . . 

NZ’s primary sector leaders of tomorrow still bank on brand Kiwi, want deeper debate on GMOs – Jonathan Underhill:

(BusinessDesk) – New Zealand’s emerging agri-business leaders say affluent consumers in 2035 will pay a premium for products sold with a strong provenance story and that are more tailored to their needs, according to KPMG’s Agribusiness Agenda 2015.

The accounting firm asked a range of primary sector organisations to nominate emerging leaders and more than 50 of them – scientists, company executives, farmers, government officials and marketers – met for a summit in Auckland in September and were asked to share their vision for the sector in 2035. They were also surveyed on their priorities and the results compared to a separate poll of current leaders. . . 

RBNZ asks banks to stress test dairy loans, confident they can weather downturn – Paul McBeth:

(BusinessDesk) – New Zealand’s major lenders are able to cope with a protracted downturn in the dairy sector, which the Reserve Bank estimates could cause credit losses of as much as 18 percent over a four-year period.

The central bank has requested the five biggest lenders to the dairy sector – ASB Bank, ANZ Bank New Zealand, Bank of New Zealand, Westpac New Zealand and Rabobank New Zealand – to stress test their portfolios, which the Reserve Bank sees as a growing risk to the health of the nation’s financial stability. The regulator was encouraged by “realistic provisions” set aside for the portfolios, and its modelling suggests a sustained downturn would be manageable for the wider system. . . 

Dairy farming not fanning Indonesian forest fires:

Federated Farmers echoes the concerns of Greenpeace and others regarding the devastation and environmental impact of forest fires that have burned for more than three weeks across Indonesia, but says the use of Palm Kernel Expeller (PKE) as a supplementary feed source for dairy cows is not to blame.

“It’s important to remember that PKE is not the reason for these fires or tropical deforestation. It is a by-product of the extraction of palm oil and palm kernel oil which would otherwise be treated as waste,’ says Federated Farmers Dairy Industry Chair Andrew Hoggard.

“Dairy farmers are taking this waste product and making use of it as a supplementary food source, used mainly as an alternative to pasture during adverse weather such as droughts, to maintain the welfare of herds and the productivity of New Zealand’s vitally important dairy industry.” . . 

Panning for Pink Gold: Fonterra Expands Capacity in High-Value Lactoferrin:

It takes 10,000 litres of milk and incredibly sophisticated technology to make just one kilogram of lactoferrin – a high-value ingredient that Fonterra has recently doubled its capacity to produce.

The new $11 million upgrade of the lactoferrin plant at the Co-operative’s Hautapu site is now running at full volume, helping to meet growing worldwide demand for the product affectionately known as ‘pink gold’.

Lactoferrin is a naturally occurring iron-binding protein found in milk and is in high demand, particularly in Asia, for a wide range of nutritional applications from infant formula through to health foods and yoghurts. . . 

Enter Dairy Industry Awards and go on holiday:

Those that enter the 2016 New Zealand Dairy Industry Awards can win a holiday of their choosing – so long as they enter soon.

Entries in the 2016 New Zealand Share Farmer of the Year, Dairy Manager of the Year and Dairy Trainee of the Year competitions are now being accepted online at www.dairyindustryawards.co.nzand close on November 30.

Those that enter by midnight on November 20* will go into the Early Bird Entry Prize Draw and be in with a chance to win a share of $12,000 in travel vouchers and spending money. . . 


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