Rural round-up

October 3, 2018
Government blamed for pessimism – Neal Wallace:

Growing pessimism among dairy farmers has sent confidence plunging into negative territory for the first time since early 2016. The quarterly Rabobank Rural Confidence Survey of 450 farmers reveals confidence in the agricultural economy has fallen from plus 2% in June to minus 3% in September.

Those expecting an improvement in the next 12 months fell from 26% to 20% while those expecting conditions to worsen rose slightly from 23% to 24%. . .

Farmer group aims at land best practice  – Simon Hartley:

A farmer-led initiative covering six Aparima catchments in Southland is looking at ways to improve land management practices to benefit the environment and local communities.

The Aparima Community Engagement (ACE) project, which represents six local catchment groups, has been under way since March this year, and a fortnight ago briefed Environment Minister David Parker on its aims during his visit to the area.

The type of issues being tackled includes identifying best practice around the likes of buffer zones for wintering, and the use of crops and fertiliser. . . 

McDonald’s lauds Maori beef farm  – Hugh Stringleman:

Hapū-owned Whangara Farms, on the East Coast north of Gisborne, has been accredited to the McDonald’s Flagship Farmers programme, the first such appointment in the Southern Hemisphere. Under general manager Richard Scholefield for the past 12 years, the 8500ha group has become the 28th Flagship Farmer for the worldwide restaurant chain and the seventh beef supplier. . .

Hunting lobby wins concessions over tahr cull  – Kate Gudsell, Eric Fryberg:

The powerful hunting lobby has won concessions in the heated fight over the cull of thousands of Himalayan Tahr.

A meeting was held yesterday between Minister of Conservation Eugenie Sage and hunting groups including the New Zealand Deerstalkers Association and the Game Animal Council as well as conservation groups such as Forest and Bird, and iwi Ngāi Tahu with the hunting industry emerging confident at the outcome.

The hunting fraternity say Ms Sage has pulled back from positions which the industry had found unacceptable and forced her to re-think plans to cull 10,000 Himalayan Tahr from the Southern Alps.  . .

Seeka warns of possible PSA outbreak in Victorian orchard – Gavin Evans:

(BusinessDesk) – Seeka, New Zealand’s biggest kiwifruit grower, says it may have found the fruit disease PSA in an orchard it is developing in Australia.

It has notified Agriculture Victoria of unusual bacterial symptoms and is removing suspicious plant material pending further test results. . .

Pāmu releases first Integrated Report – returns to paying a dividend

Pāmu Farms of New Zealand (Landcorp) has released its first truly integrated Annual Report for 2018 today.

Chief Financial Officer Steve McJorrow said the 2018 EBITDAR[1] of $48.5 million, announced on 31 August, was very pleasing, and reflected good milk and red meat returns, along with revaluation of carbon holdings (NZUs).

“We are also pleased to be back to paying our shareholders a dividend, which will be $5 million for the 2017/18 financial year. . .

Dairy Hub farm reserach to be revealed at field day:  – Yvonne O’Hara:

Kale versus fodder beet, phosphorous supplementation and buffer widths will be the focus of the Southern dairy hub’s next field day at Makarewa on October 10.

DairyNZ senior scientist Dawn Dalley said they would be updating those attending about the early results of the studies being carried out on site.

Farm manager Shane Griffin will be talking about the hub farm’s progress and Dr Ross Monaghan, of AgResearch, will discuss results of the nitrogen leaching study.

Dairy apprenticeship programme celebrates first birthday:

Federated Farmers is wishing happy birthday today to the Federated Farmers Apprenticeship Dairy Programme on its first anniversary.

The pilot programme supported by MBIE, the PrimaryITO and Feds, was launched last year with the intention of finding more Kiwis keen to work in the dairy industry on farm, and keen to upskill into a farming career.

After almost a year Feds is proud to say we’ve had 193 employer expressions of interest, and 98 completed farm charters, enabling employers to enter the programme along with 180 eligible apprentice expressions of interest and 62 apprentices in the programme. . .

 

Rural round-up

September 19, 2018

North Island farmers lose 100,000 lambs after spring storm –  Gerard Hutching:

Farmers have suffered “devastating” lamb losses in eastern and central North Island over the last two weeks with an estimated toll of about 100,000.

At current prices of $144 per mature lamb, the economic hit could be $14.4 million.

By contrast Otago and Southland farmers are expected to escape lightly from the impact of snow that has fallen on Monday.

Federated Farmers high country chairman Simon Williamson said lambing would not begin in the areas where most snow had fallen until the beginning of October. . .

NZ maple syrup industry ‘possible and promising’ – Will Harvie:

Canada produces 71 per cent of world’s maple syrup and 91 per cent of that originates from the province of Quebec. But a clutch of New Zealand academics think this country could have a maple syrup industry, despite a mild climate and no sugar maple forests.

Their preliminary research has “determined that a plantation of maple saplings for use in commercial production of maple syrup is a possible and a promising endeavour in New Zealand”, according to a presentation to be given at a chemical engineering conference in Queenstown on October 1.

The most promising places for maple syrup production are roughly Molesworth Station and inland from Westport, both in the South Island, according to their paper.   . .

Local contract a big arable win :

A big multi-year supply contract to Countdown supermarkets for local wheat and grain is regarded by the arable industry as a breakthrough.

Until this year the in-house bakeries of the more than 180 Countdown supermarkets used premixed ingredients produced here and imported from Australia.

But in a deal Christchurch-based Champion Flour Milling business innovation manager Garth Gillam said is the culmination of years of effort, the supermarkets’ bakeries have switched entirely to premixes made using locally-grown products for all in-store baking of loaves, rolls, buns and scones. . .

Rembering your purpose – the big picture – Hugh Norris:

Farmers have told us that one thing that has helped them cope better with the ups and downs of farming, is to remember why they got into farming in the first place and to think about the contribution they make to their wider community.

Keeping the bigger picture of life in mind, and not just being caught up in the endless day-to-day tasks of farming, can be protection against burnout and loss of physical and mental health.

Having a sense of meaning and purpose in life has been shown in many scientific studies to be better for our mental and physical health and even help us live longer. . .

Deer milk brand gets two food award nods – Sally Rae:

New Zealand’s pioneering deer milk industry has received a further boost by being named a finalist in this year’s New Zealand Food Awards.

Pamu, the brand for Landcorp Farming, is a finalist in both the primary sector award and the novel food and beverage award.

Earlier this year, Pamu deer milk won the Grassroots Innovation award at the national field days at Mystery Creek. . .

M. bovis highlights need to improve, not scrap, rural Adverse Events Scheme

Mycoplasma bovis (M. bovis) highlights that a scheme deferring tax on income from forced livestock sales should be improved not scrapped, Chartered Accountants Australia and New Zealand (CA ANZ) says.

“Ditching Inland Revenue’s Adverse Events Scheme would remove a valuable tool that farmers and rural businesses can use to smooth out the ups and downs of their income and expenditure after an adverse event,” said CA ANZ New Zealand Tax and Financial Services Leader, John Cuthbertson. . . 


Rural round-up

September 9, 2018

Make jobs attractive to youth – Neal Wallace:

Farmers need to change their approach to employment conditions to encourage more people to work for them, Federated Farmers employment spokesman Chris Lewis says.

Low regional unemployment is making staff recruitment more challenging but there are already fewer people choosing agricultural careers.

To be competitive farmers need to consider more than just pay but also rosters, hours of work, housing, the workplace environment, pressure of the job and ensure they meet their legal payroll and time-recording obligations. . .

Annual results will put Fonterra under microscope – Sally Rae:

Scrutiny from farmers is expected next week when new chairman John Monaghan and recently appointed interim chief executive Miles Hurrell front Fonterra’s 2017-18 annual results presentation.

While commodity price fluctuations were “part and parcel” of the reality of being a dairy farmer, grumblings about Fonterra’s corporate performance have been growing, Westpac senior economist Anne Boniface said.

From an historical perspective, prices remained at relatively robust levels and, at $6.50, most farmers would be in positive cashflow territory. . . 

FENZ urges caution on controlled burns – John Gibb:

Large, controlled burn fires at Northburn Station, near Cromwell, produced huge smoke clouds on several days this week, but burned without any problems, Fire and Emergency New Zealand said.

Otago principal chief rural fire officer Graeme Still, of Dunedin, said permitted fires at Northburn had produced large clouds of smoke on Monday, Wednesday and yesterday, but finished without incident.

Fire conditions were suitable at Northburn, partly because remaining snowpack restricted any potential fire spread, he said yesterday. . . 

Wool recovery continues – Alan Williams:

Wool prices made another step forward at Thursday’s Napier sale, building on the gains of a fortnight earlier.

After a disappointing start to the season prices have lifted in the last few weeks and strong wools in the 35-37 microns range were up by another 4% to 5%, PGG Wrightson’s North Island auctioneer Steven Fussell said.

Second-shear wools were mostly up by similar margins on a fortnight earlier with good style 2 to 3 inch fibre length ahead about 7%. . .

On the farm: our guide to what’s been happening rurally:

What’s happening on farms and orchards around New Zealand? Each week Country Life reporters talk to people in rural areas across the country to find out.

North Island-Te Ika-a-Māui

The week finished off much better than it started in Northland. Mid-week the Far North town of Kaitaia had its second 13 degree day of winter – that’s chilly for them. A cold southerly is blasting through and apparently farmers are “right up against it” for pasture. Any strongly kikuyu dominant sward is very slow growing; rye grass is going okay but patches of it are few and far between on most farms. . . 

Fruit exports boost wholesale trade in June quarter:

Fruit exports drove wholesale trade sales up in the June 2018 quarter, Stats NZ said today.

The seasonally adjusted total sales value for wholesale trade rose 2.6 percent in the June 2018 quarter, following a modest 0.3 percent rise in the March 2018 quarter.

Five of the six wholesaling industries had sales rises in the June 2018 quarter. The largest industry increase was in grocery, liquor, and tobacco wholesaling, which was up 3.0 percent ($236 million). . . 

Deer milk hits the spot as finalist in NZ Food Awards:

Pāmu’s deer milk is on the awards stage again with today’s announcement that it is a finalist in two categories in this year’s New Zealand Food Awards.

The NZ Food Awards have been a highlight of the food sector for over 30 years and aim to demonstrate innovation, creativity and excellence in the food industry in New Zealand. . .

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Rural round-up

September 2, 2018

Proving consultants were wrong – Neal Wallace:

Sheep farmers are enjoying a golden patch but it would be a challenge to find a more profitable breed than Merino-Romney halfbreds. That is a contrast to the last rites that were read to the mid micron sector by consultants 18 years ago. Neal Wallace meets some farmers who ignored those forecasts of impending doom and stayed loyal to halfbred sheep.

John Duncan confesses to never being a great meeting goer. 

One the Otago sheep and beef farmer recalls attending was in Ranfurly in about 2000 at which he was told there was no future for mid micron wool.

International consultants McKinsey had just released a report on how to improve wool grower profitability. Recommendations included dissolving the Wool Board and, alarmingly to owners of mid micron sheep such as Duncan, warning the fibre did not have a future. . . 

Westland weighs options – Hugh Stringleman:

Westland Milk Company’s 420 farmer-shareholders will have some options for capital structure to chew on at the co-operative’s annual meeting on December 5.

Chairman Pete Morrison said a report from a strategic review of the company being done by Macquarie Capital and DG Advisory will be available for shareholders.

The quest is to find a sustainable capital structure and competitive milk price. . . 

Virtual reality experiments in Rotorua could replace forestry field work – Samantha Olley:

The forestry industry has been experimenting with virtual reality in Rotorua this week to develop new ways of measuring tree growth.

The University of Tasmania and Interpine are carrying out the research, which is partially funded by Forest and Wood Products Australia.

The university’s Human Interface Technology Lab leader, Dr Winyu Chinthammit, said the experiments aimed to give skilled workers a safer and more efficient way to measure forests, using data from aerial LiDar scanners, rather than field work. . . 

Sheep-milking gets a hoof-hold in Waikato’s dairying’s heartland – Gerald Piddock:

The burgeoning sheep-milking industry has upped its stake in Waikato’s dairying heartland.

Two new farms will be ready to milk this season. Both are near Cambridge and are owned by Taupō-based Spring Sheep Milking Co, a joint venture between state-owned enterprise Pamu and marketing firm SLC Group.

Spring Sheep announced plans to establish the two farms in December and to grow sheep-milking from a handful of exporters to at least 60 farms by 2030. . . 

On the farm: a guide to rural New Zealand:

Do you know what’s happening on farms and orchards around New Zealand? Each week Country Life reporters talk to people in rural areas across the country to find out.

Northland has had a fantastic winter. While the skies delivered two and a half times the normal amount of rain in June, July and August were extremely mild and farmers didn’t need to put on their wet weather gear nearly as often. Calving is all but finished so farmers are thinking ahead to mating and treating cows that had trouble calving so they’ll be in good shape for the next round. With the threat of Mycoplasma Bovis being transferred from farm to farm, farmers are being advised to lease bulls from credible sources.

In South Auckland, Pukekohe had a fine weekend but heavy rain fell on Wednesday leaving the ground too wet to be worked on. While the free irrigation is normally welcome, too much of a good thing is entirely another matter. Some crops are showing signs of diseases that flourish in wet conditions. Heavy supplies of broccoli continue to be hard to sell. . .

Pāmu lifts operating profits despite challenging climatic conditions

Pāmu (Landcorp Faming Limited) has announced EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Revaluations) of $48.5 million for the year ended 30 June 2018 (FY18), up $12.9 million (36 percent) from the previous year. Net profit after tax was $34.2 million a reduction of $17.7 million (34 percent) largely due to lower gains from biological assets (forestry and livestock) and a higher tax expense.

Directors have declared a dividend of $5 million which will be paid on 15 October 2018. . . 

 UK could run out of food a year from now with no-deal Brexit, NFU warns – Lisa O’Carroll:

Britain would run out of food on this date next year if it cannot continue to easily import from the EU and elsewhere after Brexit, the National Farmers’ Union has warned.

Minette Batters, the NFU president, urged the government to put food security at the top of the political agenda after the prospect of a no-deal Brexit was talked up this week.

“The UK farming sector has the potential to be one of the most impacted sectors from a bad Brexit – a frictionless free trade deal with the EU and access to a reliable and competent workforce for farm businesses is critical to the future of the sector,” she said. . .

 


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