Rural round-up

February 25, 2016

Tough dairy times all over the globe – Jim Dickrell

French dairy farmers are once again taking manure and spreading it on roads, five dairy farms a week are going out of business in Great Britain, and the New Zealand government told its farmers to “stand on their own two feet.”

In France, according to theInternational Business News, farmers have blockaded roads, entered supermarkets and filled shopping carts with cheap food imports and even hurled their farm boots at government buildings.

In response, the French government said it will cut social security taxes farmers are required to pay by $556 million this year. . .

Ruataniwha irrigation scheme promoter confirms preferred private investor close to selection – Pattrick Smellie:

A preferred private sector investor in the Ruataniwha water storage scheme is close to selection, says its primary backer, the Hawke’s Bay Regional Investment Co.

HBRIC confirmed media reports earlier in the week that suggested a preferred private investor is about to start due diligence on the $275 million project, which would create a 93 million cubic metre reservoir to store water in the upper Makaroro river to improve river flows for agricultural use in the Tukituki River catchment.

Infratil-controlled Trustpower pulled the plug on its involvement in early 2014, followed by its other private backer, South Island iwi Ngai Tahu’s investment arm, before a board of inquiry process delayed resource consents for the dam while new environmental quality standards were set. . . 

SMART Watering campaign wraps up citing strong interest in water efficiency tools:

A pilot water efficiency campaign initiated by IrrigationNZ in four Canterbury districts this summer has concluded with evidence of strong interest in making water savings.

Home gardeners and lifestyle irrigators were the primary targets of the inaugural water efficiency campaign, which ran with the support of Timaru, Ashburton, Selwyn and Waimakariri District Councils, Environment Canterbury and inaugural industry partners Water Supply Products and RX Plastics.

The campaign launched in late November with the release of case studies illustrating how home gardeners and community projects can use irrigation tools and technologies to minimise water use and maximise productivity. . .

 

High prices, good growth cut cattle sales:

High beef prices and a surge in pasture growth has led to the cancellation of two cattle sales in Gisborne, a farmer and former stock agent says.

In January, two cattle sales were cancelled because there were not enough stock.

Barrie Gordon has worked in the cattle industry for more than 60 years and said only a few sales had been cancelled in the major cattle breeding region in all that time. . . 

PGG Wrightson posts 19% drop in first-half profit as farmers tighten spending – Tina Morrison:

PGG Wrightson posted a 19 percent drop in first-half profit as low dairy prices and fear of an El Nino drought contracted farmer spending at the rural services firm.

Profit fell to $16.1 million, or 2.1 cents a share, in the six months ended Dec. 31, from $19.7 million, or 2.6 cents, in the year earlier period, the Christchurch-based firm said in a statement. Revenue declined 4.8 percent to $623 million, while the cost of sales slid 6.9 percent to $462 million.

Farmers have tightened their wallets after milk processors like Fonterra Cooperative Group, the country’s largest, cut their farmgate milk payouts below the cost of production as a global oversupply lasts longer than anticipated. Fears of an El Nino drought heading into summer also kept farmers cautious with their spending. . . 

Dramatic improvement in forest industry safety record:

Following a spate of workplace deaths in 2013, New Zealand’s forestry industry has set a shining example in improved safety performance nationally over the past three years. Annual serious harm incident rates dropped in half over the past two years. The numbers dropped from 160 incidents in 2013, to 107 in 2014 and then to 79 in 2015.

Even more striking – the rate of serious harm in production forestry has dropped to less of one-third of the rate in 2008. This is based on annual forest harvest volumes lifting from less than 20 million cubic metres per annum to over 30 million in that period. . . .

Tree man scales new job at Taratahi –

Past competitive tree-climber and arborist Richard Wanhill has returned to his primary sector roots, he says, with his appointment as business development manager at Taratahi Agricultural Training Centre.

Mr Wanhill, who shifted to Wairarapa from the capital after originally hailing from Auckland, had worked as an arborist for about 15 years and also operated as a contract arboriculture and horticulture educator as a partner in a company named Thought Planters.

“I was teaching arboriculture mostly in New Zealand, Australia and Singapore and some in other places like Cambodia and Thailand. The competitive tree-climbing I’ve done has been only nationally in New Zealand, which is internationally recognised as one of the top tree-climbing countries in the world. . . 

 

Fonterra And Its Farmers Supporting Dairy Development:

Four Fonterra farmers will travel to Sri Lanka this year as part of a new farmer volunteer scheme to work with Sri Lankan dairy farmers.

Troy Doherty from Bay of Plenty, Tim Phillips from Waikato, Murray Douglas from Northland, and Marloes Levelink from West Otago, will spend a month at Fonterra’s new demonstration and training farm in Pannala, near Colombo.

While in Sri Lanka they will work with local farmers and Fonterra supplier relationship officers on areas including animal nutrition, prevention and treatment of mastitis and how to run a farm as a business. . . 


Rural round-up

September 28, 2015

Freehold on Mackenzie Crown land not an easy ticket to millions, farmers say – Tim Fulton:

Farmers accused of making big profits from Crown land deals in the Mackenzie Basin say they are doing the bare minimum to make a living.

High Country property researcher and Lincoln University academic Dr Ann Brower says the Crown is missing out when tenure review land is sold freehold by farmers.

The median on-selling price per hectare was 493 times the Crown’s original sale price, she said. . .

Signs of movement on dairy as TPP negotiators meet in Atlanta – Pattrick Smellie:

(BusinessDesk) – News media in the US and Canada are reporting signs of a deal coming together on access for dairy products into North America as trade ministers gather in Atlanta, Georgia, for the latest round of talks attempting to conclude the Trans-Pacific Partnership trade and investment pact.

The Atlanta talks are being billed as potentially the final round of talks, although New Zealand Trade Minister Tim Groser has yet to commit to attend them, despite being in the US this week for climate change talks in New York.

He said almost a week ago that there was still no adequate offer from the key TPP dairy-producing countries – the US, Canada and Japan. Market access for dairy products and automobiles, and patent extensions for new generation bio-logic pharmaceuticals, are reportedly the only remaining sticking points of substance between the 12 countries negotiating the new Pacific Rim agreement, which US president Barack Obama is committed to concluding as part of a strategy to assert US geopolitical interests in Asia and counter the rise of China. . . 

No heavy hand – Neal Wallace:

Shanghai Maling president Shen Wei Ping has given an assurance he will not use his casting vote to exert control over Silver Fern Farms should shareholders agree to a partnership between the two food companies.

In an interview during a visit to Dunedin, Shen said the clause giving the Shanghai Maling Aquarius chairman the casting vote on the appointment of the chief executive and annual business plan, was an auditor requirement for reporting the company’s financial results.

He said the proposed deal between the Chinese company and SFF would be a true partnership with board decisions by consensus. . . 

Taggart returned as Ballance director:

Murray Taggart has been returned as a Ballance Agri-Nutrients Ward C director in the South Island after a three-way contest for the position.

Also seeking the directorship were Temuka intensive cropping and livestock finishing farmer Nick Ward and former chief executive of Silver Fern Farms Keith Cooper.

Mr Taggart, who is also chairman of meat co-operative Alliance Group, joined the Ballance board in 2009. He is a past director of CRT Society and Southern Farms NZ, past chairman of the National Meat and Wool Council and Federated Farmers, and past member of the National Board of Federated Farmers. . . 

Generic marketing questioned – Matthew Cawood:

WHEN you have powerful brands, do you need generic marketing?

Agrifood consultant David McKinna posed that rhetorical question to the recent 2015 Meat Industry Conference as part of his discussion on the rise of brand marketing.

“You don’t see your breakfast cereal in generic marketing campaigns. You don’t see generic campaigns for toothpaste. The brands do the job,” he said.

“Your industry has spent a lot of money on generic marketing. As they say in advertising, fifty per cent of it works, but we don’t know which bit.”

Dr McKinna foresees a future in which generic marketing takes a back seat, but doesn’t disappear entirely.  . . 

Government delivers National Policy Direction for Pest Management:

The National Policy Direction for Pest Management has come into effect.

MPI’s director of biosecurity and animal welfare policy, Julie Collins, says established pests are estimated to cost New Zealand’s primary sector up to $3.3 billion annually.

“Even small improvements to New Zealand’s pest management system could save millions of dollars in the long term.”

“The National Direction will support national and regional management of challenging pest issues such as wilding conifers, by ensuring consistent approaches to the way rules are set across New Zealand and that landowner obligations are clearly signalled and underpinned by robust analysis.” . . 

Wendy Harker making Holstein history in NZ – Sonita Chandar:

She may have made history by being elected the first female head of Holstein Friesian New Zealand but the new president says it will not define who she is or what she does.

Wendy Harker, a Te Awamutu breeder, is the first woman to take on the top role in the association’s 105-year history.  She has sat on the board for six years as a council member.

“I have been a part of the national team for six years,” she says. . .

Connie Sue Farmer-Wollenberg's photo.


Rural round-up

June 29, 2015

Snow does little to blunt Hurunui drought – Tim Cronshaw:

Melting snow has combined with the first decent rainfall in six months to provide some relief for dry Hurunui but it would be a stretch to call it a drought breaker.

Much of the snow over the last week has thawed and gone into soils to go some way to replenishing ground moisture that has taken a hammering in the district particularly extending from Hawarden to Cheviot.

The problem is that it’s arrived too late for farmers as winter pulls the plug on major grass or winter crop growth.

Snow, sleet and rain topped up gauges by 20mm to 50mm over Hurunui farmland in the first major rain of the year.

Federated Farmers North Canterbury Meat & Fibre chairman Dan Hodgen said the snow and rain event would be of little initial help for farmers. . .

US likely to force pace on TPP with fast track in place – Pattrick Smellie:

(BusinessDesk) – The United States is likely to try and force the pace of negotiations to conclude the Trans-Pacific Partnership in the next few weeks, following a vote in the US Senate last night that all but ensures President Barack Obama will gain so-called ‘fast track’ authority to complete the controversial agreement.

One more Senate vote is expected overnight tonight, New Zealand time, to confirm Trade Promotion Authority – an essential component to resuming the 12 nation talks that have been stalled for months while Obama cobbled together a coalition of Democrats and Republicans large enough to support the measure. . .

TPP does not add up for NZ without good dairy outcomes:

The Dairy Companies Association of New Zealand (DCANZ) is firm in its view that a good deal on dairy in TPP is necessary for any deal to stack up for New Zealand.

“The facts are that dairy accounts for 35% of NZ exports. You can’t even come close to achieving an acceptable deal for New Zealand without a good deal on dairy” says DCANZ Chairman Malcolm Bailey.

DCANZ which represents the common policy interests of 11 New Zealand dairy companies, accounting for 98% of milk processed is following the negotiations carefully. . .

 

Landcorp sees NZ dairy conversion rate slowing – Tina Morrison:

 (BusinessDesk) – Landcorp Farming, which has almost tripled its milk production over the past decade, expects the rate of dairy expansion will slow as environmental restrictions, and higher land and labour costs make it less viable.

Large tracts of flat land in New Zealand once used for sheep farming have been converted to dairy as farmers were lured by higher prices for dairy products while demand for sheepmeat and wool waned. The number of dairy cows has jumped to a record 6.7 million, while sheep numbers dropped below 30 million for the first time in more than 70 years, according to data published by Statistics New Zealand last month, covering the 2014 agricultural year. . .

2015 National Award Winners: Recipients of the Gordon Stephenson Trophy:

John and Catherine own 1240ha Highlands Station – a productive and well-maintained hill-country farm south of Rotorua. Sitting within the Lake Tarawera and Rotokakahi catchments, the farm’s distinctive contour was shaped by volcanic activity which flattened forests, carved out hill faces and left the area covered in Phosphate-rich mud.

John’s father Allen began developing Highlands Station in the early 1930s and award judges noted the Ford’s “strong family history of commitment to agriculture”.

Highlands Station has a “much loved feel” and its outstanding meat and wool production puts it among New Zealand’s leading sheep and beef farming operations. . .

 Appointments to Conservation Boards made:

Associate Conservation Minister Nicky Wagner today announced 41 appointments to the 14 Conservation Boards across New Zealand.
“I want to congratulate each of the community representatives who are being appointed in 2015, particularly the 14 who will serve for the first time. I would also like to thank the outgoing representatives for their contribution to conservation in their region,” Ms Wagner says.

“A third of Conservation Board positions were open for renewal this year. The diverse range of appointees will bring a wide array of knowledge and skills to conservation management in the communities they represent. . .

Nobody’s happy with manuka honey definitions: MPI – Suze Metherell:

 (BusinessDesk) – New Zealand’s lack of definition for what constitutes manuka honey has overseas regulators worried about forgeries, with China likely to introduce a certification scheme for the honey imports, the Ministry for Primary Industries is telling the country’s beekeepers.

There is no industry-wide consensus on exactly what constitutes manuka honey, with MPI working to come up with a formal definition and a method for identification. While it isn’t a food safety issue, MPI “takes concerns about the authenticity of New Zealand products very seriously and is acting to address these,” according to its website. . .


Rural round-up

June 23, 2015

Water presents high risk to agribusiness:

Whether it’s growing crops, generating electricity or entertaining tourists, water is a key ingredient for the success of the New Zealand economy, yet this also makes it a key risk.

PwC’s latest publication, Preserving water through collaboration that works, considers how New Zealand within a global context, has responded to water risks and the potential to improve water management in the future. New Zealand faces its own risks which differ from those in other parts of the world, and these risks, are increasing.

PwC Director and Local Government expert David Walker says, “A usable supply of water is fundamental to the New Zealand economy and permeates across all industries – and notably farming, forestry, electricity generation and public sectors. However continued effective water management is becoming more complex and costly. . .

ASB Farmshed Economics Report Cash is king for farmers

• Despite a better milk price forecast, farm cashflows will remain weak this season.

• But falling interest rates are putting cash back in farmers’ pockets.

• Meanwhile, the hot air has been let out of the NZ dollar.

Despite Fonterra’s better opening season milk price forecast, farm cashflows will still face pressure this season, according to the latest ASB Farmshed Economics Report. . .

 

TPP dairy deal ‘not at a level we would currently like’, says Key – Pattrick Smellie:

(BusinessDesk) – The Trans-Pacific Partnership trade pact does not yet include an acceptable deal on access for New Zealand’s most important exports, dairy products, with little more than a month to go before the controversial 12 nation trade deal could be concluded.

“I think the way I would describe it is there’s a deal. It’s probably not at the level that we would currently like,” said Prime Minister John Key at his post-Cabinet press conference in Wellington. He was referring to comments last week by Trade Minister Tim Groser that negotiations on dairy access to the heavily protected US, Canadian and Japanese markets had “barely started.” . . .

A2 shareholder Freedom Foods in consortium to take over milk marketer – Fiona Rotherham:

(BusinessDesk) – A2 Milk Co’s cornerstone shareholder, Freedom Foods Group, is part of a consortium with an international dairy group that’s eyeing a takeover of the dual-listed milk marketer.

Freedom Foods, which owns about 19 percent of A2 Milk with a related entity, is mulling a takeover of A2 Milk, making an indicative non-binding and conditional expression of interest to buy the shares it doesn’t already own. A deal would be contingent on the consortium, which includes an “unnamed leading international liquid dairy milk company”, undertaking due diligence. It also has a restriction on A2 Milk changing the number of shares on issue, effectively scotching a planned equity raising. . .

LIC seeks $125M debt facilities this year, targets $140M equity over decade – Jonathan Underhill:

Livestock Improvement Corp, which aims to lift annual revenue to $1 billion by 2025, says it plans to establish $125 million of debt facilities this year and is likely to require $140 million in equity capital over the next 10 years to meet its growth goals.

Details of its capital requirements are included in a presentation the bull semen and dairy genetics database manager is taking around the country to explain to its shareholders how its changing focus, with increased capital spending and new product development, is changing its financial profile. Previously it has only required seasonal debt funding, typically for three months, the presentation shows. .

Upper South Island Butchers Battle It Out:

The best young butchers in the Upper South Island have been announced following the Alto Young Butcher and Competenz Butcher Apprentice of the Year regional final on Saturday.

Rowan Lee from Peter Timbs in Bishopdale was the winner of the Alto Young Butcher category, while Matthew Clemens from New World Ilam topped the Competenz Butcher Apprentice category, both highly sought after titles. . .

 

Tractor and Machinery Association elects new President:

Mark Hamilton-Manns, New Zealand Sales Manager for John Deere, has been elected President of the Tractor and Machinery Association (TAMA).

Formerly Vice President of the organisation, he takes over from Ian Massicks, New Zealand Kubota Manager for CB Norwood Distributors, who had been President for six years.

Roger Nehoff, General Manager New Zealand Retail for Landpower New Zealand, was elected Vice-President. . .


Rural round-up

May 2, 2015

Trelinnoe treads lightly on the environment – Kate Taylor:

From crutching sheep at home on the farm to meeting the world’s top farming politicians, the passion Bruce Wills has for all facets of farming is evident from the moment you meet him.

His brother Scott is the other side of the coin, a man of few words, until you ask him about the farm’s stock policies, then the same passion is evident.

They both love Trelinnoe – an 1134ha hill country farm carved out of the scrub by their parents and an uncle through the 1950s and 60s. . .

Ruataniwha irrigation scheme gets 15 years to sort water quality – Pattrick Smellie:

 (BusinessDesk) – A revised decision from the board of inquiry considering the Ruataniwha Water Storage Scheme relaxes water quality conditions that were previously regarded as unworkable. It gives irrigators 15 years to find ways to manage nitrogen levels in the Tukituki River to very low levels.

The board’s original decision, released last June, set a maximum level for dissolved inorganic nitrogen (DIN) downstream from the scheme of 0.8 milligrams per litre, a level consistent with the highest quality freshwater bodies under the government’s recently updated National Policy Statement on freshwater management, and at odds with DIN levels in the river today.

To get around that, the decision created an exemption for some 615 farms to discharge higher levels of nitrogen, leading to successful appeals from a range of environmental groups who argued the board had created a “factual fiction” by setting a high standard that would not then be expected to be met. . .

 

IrrigationNZ says Board of Inquiry decision on Tukituki ‘reasonable’ but far from practical for farmers:

“The Board of Inquiry for the Tukituki Catchment has reached a reasonable decision in what has been a long process,” says Andrew Curtis, CEO of IrrigationNZ. “But it is a far from practical outcome for farmers and the regional economy. We believe nutrient limits set for the Tukituki system remain unrealistic for what is a productive working agricultural landscape.”*

IrrigationNZ does however recognise the positive step taken in the decision to exclude some hill country farms, forestry, orchards and lifestyle blocks from having to gain consents, but points out that the reality is the majority of commercial enterprises will still require one. . .

 

Alliance Group Targets 3,300 Tonne Carbon Reduction:

One of the world’s largest processors of sheepmeat, Alliance Group Limited, aims to reduce carbon emissions by 3,300 tonnes over the next three years, as part of a new energy management agreement with the Energy Efficiency and Conservation Authority (EECA).

The agreement, announced in Southland today by Alliance Group Chief Executive David Surveyor and EECA Chief Executive Mike Underhill, includes a thermal and electricity energy use reduction of approximately 10 Gigawatt hours per annum by 2017. This is the equivalent annual energy use of about 960 households.

David Surveyor says reducing the company’s energy use makes good business and environmental sense and that the new partnership with EECA is the next phase of Alliance Group’s energy management journey. . .

Synlait Milk ingredient will help to significantly enhance sleep:

Synlait Milk has commercialised a dairy-based milk powder ingredient that is clinically proven to enhance sleep.

Results from an independent clinical trial of iNdream3 have proved its efficacy as a sleep promoting ingredient.

iNdream3 is made from melatonin-rich milk collected in the hours of darkness, when cows naturally produce increased concentrations of melatonin in their milk

“We’ve been developing this product for several years and this clinical trial is a major milestone in proving the ability of iNdream3 to improve sleep,” said Dr Simon Causer, Synlait’s Research and Development Manager.. . .

Maori farm vitally important for community:

A Northland sheep and beef farm in the running for the top Maori farming award has impressed the judges with its strong ties to a small local community.

Paua Station is one of three finalists for the Ahuwhenua Trophy and as part of the awards is hosting an open day today.

The almost 3,000 hectare station lies just south of Cape Reinga, about 80 kilometres north of Kaitaia, and surrounds the small community of Te Kao.

It is owned by Parengarenga Incorporation, whose general manager, John Ellis, said the running of the farm was very much centred around the community. . .

Dairy Awards Finalists in Auckland for Annual Awards:

The 33 finalists in the 2015 New Zealand Dairy Industry Awards are in Auckland, where the winners of the New Zealand Sharemilker/Equity Farmer of the Year, New Zealand Farm Manager of the Year and New Zealand Dairy Trainee of the Year will be announced on Saturday night.

“The national awards is a big deal for these finalists – they’ll meet some key industry people, develop lifelong friendships and important networks, and be exposed to opportunities that’ll propel their career forward,” National Convenor Chris Keeping says.

Judging has been taking place during the past two weeks, as judges have visited the sharemilker/equity farmer and farm manager finalists on their farms. However, the final judging component will take place tomorrow when all finalists will participate in an interview. . .

Country’s Top Steaks Make The Cut:

Following today’s semi-final taste test, the 20 most succulent steaks in New Zealand have been named as finalists in the 2015 Beef and Lamb New Zealand Steak of Origin Competition.

A panel of 12 well-known foodwriters and chefs, including Kerry Tyack and Julie Biuso, tasted a total of 69 sirloin steaks, judging each one on taste, tenderness and aroma, to find the top four for each class.

Semi-final judge, Kerry Tyack says as a returning judge, he was reminded of the outstanding quality of New Zealand beef.

“Although the steaks vary in taste, texture and appearance, they’re all of a consistently high standard,” says Tyack. . .

Hawke’s Bay Harvest Bodes Well for a Stellar 2015 Vintage:

The Hawke’s Bay wine region looks set to enjoy its third consecutive year of great vintages.

With picking nearly complete, Hawke’s Bay grape growers and wine makers are optimistic that this will be another good year, following exemplary vintages in 2013 and 2014. Hawke’s Bay is the first region to forecast the quality of this year’s vintage following harvest.

“Most would be considering this to be a very good, solid vintage,” Michael Henley, Chair of the Hawke’s Bay Winegrowers Association (HBWG) and CEO of Trinity Hill Wines, says. . .


Rural round-up

August 15, 2014

Commission releases draft report on 2013/14 review of Fonterra’s base milk price calculation:

The Commerce Commission today released its draft report on Fonterra’s base milk price calculation for the 2013/14 dairy season. The base milk price is the price Fonterra pays to farmers for raw milk.

The Commission is required to review Fonterra’s calculation of the base milk price each year as part of the Dairy Industry Restructuring Act’s milk price monitoring regime. The review assesses if Fonterra’s calculation approach provides incentives for it to operate efficiently and provides for contestability in the market for purchasing farmers’ milk.

The scope of the Commission’s review is only to look at the base milk price, not the retail price that consumers pay for processed milk. . . .

 

Fonterra’s farmgate milk price out of step with efficiency – Pattrick Smellie:

 (BusinessDesk) – The Commerce Commission says Fonterra Cooperative Group’s decision to cut the last season’s forecast payout to farmer shareholders by 55 cents per kilogram of milksolids below the result produced by its Farm Gate Milk Price calculation is not consistent with the milk price regime’s intention to make Fonterra operate efficiently.

However, it says the decision – the first ever taken to vary the payout from the calculated level since the Farm Gate Milk Price regime came into force in 2009 – was consistent with ensuring competitive provision of milk to alternative suppliers, the commission concluded in its annual review of the regime.

Under the Dairy Industry Restructuring Act, which allowed a merger to create Fonterra despite creating a dominant local market player, the commission must monitor how Fonterra sets the price it pays farmers for milk as part of efforts to ensure it’s possible for local dairy market competitors, such as Synlait or Westland Milk, to emerge.

Under the monitoring and reporting regime, the commission has no ability to force any change on Fonterra. . .

 

Latest dairy farm visits reveal poor record keeping:

The Ministry of Business, Innovation and Employment’s Labour Inspectorate has released the results of the third phase of its national dairy strategy, which involved visits to farms that employ migrant workers.

The findings show that while no exploitative conduct was found, a quarter of the farms visited were in breach of employment laws for poor record keeping.

Senior Labour Inspector Kris Metcalf says the visits were part of a long-term operation to check compliance with minimum employment obligations at dairy farms across the country.

“The majority of the 42 dairy farms visited in this phase were meeting minimum employment standards,” says Kris Metcalf.

“However, 11 farms were found to be in breach of their minimum employment obligations which is disappointing. . .

Government migrant dairy worker survey highlights procedure hole:

Following the third phase of the Ministry of Business Innovation and Employment’s (MBIE) dairy strategy, focussed on migrant workers, Federated Farmers knows a sizable minority of farmers still need to meet basic employment law and the Federation is offering to help.

“The latest information from MBIE shows that there has been a significant improvement in the performance of dairy farmers, but far too many are failing to take accurate time sheets seriously enough,” says Andrew Hoggard, Federated Farmers Employment Spokesperson.

“We are pleased MBIE inspectors did not find any exploitative behaviour of migrant workers on the 42 farms they visited. That said we’ve still got a bit of work to do with our guys on record keeping and basic employment practices. . . .

Softening the dairy blow:

• NZ dollar is under pressure
• Interest rate predictions delayed
• Meat sector outlook remains bullish

While eleven of the last twelve dairy auctions have recorded price falls, the sheer magnitude of the falls is bringing other factors in to play, according to the latest ASB Farmshed Economics Report.

“With dairy prices down by 37 percent on a year ago, the NZD has finally come under some pressure” says Nathan Penny, ASB Rural Economist.

“The NZD has passed its peak. We expect the NZD to trade at around 85 US cents for the rest of the year.”

“The dairy price falls are also a major reason why we’ve pushed back our interest rate call.” ASB Economics now expects the next OCR increase in March 2014 rather than their previous call for a December 2014 hike. . .

 

Working group for dairy processing sector:

Primary Industries Minister Nathan Guy has announced the establishment of a working group to develop a ‘roadmap’ on how to meet the future capability needs of the dairy processing sector.

“This was a recommendation of the independent Government Inquiry into the Whey Protein Concentrate (WPC) Contamination Incident last year. It found that our food safety regulatory model for dairy is among the best in the world, but also recommended improving people capability to strengthen the food safety system.

“The inquiry highlighted the shortage of experienced people with processing expertise across the industry’s regulatory sector, and at all levels of the system. . .

 Does Australia want to compete? – Jo Bills :

Recently the Business Council of Australia released a report it commissioned from McKinsey & Co – Compete to Prosper: Improving Australia’s global competitiveness.

It was fascinating reading – taking a helicopter view of the Australian economy and the global competitiveness of industry sectors.

Most of us probably regard Australia as a trading nation, but the McKinsey analysis highlights the fact that our economy remains quite inwardly focussed – while we are the world’s 12th largest economy, we rank 21st in terms of global trade – well behind some that you might assume we should be ahead of.

As part of the study, the McKinsey number-crunchers developed a Relative Competitiveness Score, applied it to all sectors of the Australian economy and found that only one sector – agriculture – stood out as truly competitive. . .

Boost for wilding tree control in Waimakariri:

A group of volunteers dedicated to clearing wilding trees around Flock Hill in upper Waimakariri is to receive a major funding boost, Associate Conservation Minister Nicky Wagner announced today.

Waimakariri Ecological and Landscape Restoration Alliance will receive $309,000 over the next three years from the Department of Conservation’s Community Conservation Partnership Fund.

“Wilding trees are now the most significant threat to biodiversity and infrastructure in the 60,000 hectares of public and privately owned lands in the upper Waimakariri Basin. . .

Forest contractors welcome WorkSafe submission:

Today the government’s safety agency for forestry, WorkSafe NZ, has publicly released its submission to the panel of the Independent Forest Safety Review. The Forest Industry Contractors Association (FICA), the industry group that originally initiated the review, has welcomed the comments from the regulator.

“We’re pleased that some vital issues have been highlighted by Gordon MacDonald’s WorkSafe NZ team,” says spokesman John Stulen of the Forest Industry Contractors Association, “They’ve made some very practical observations vital to making change in our industry.”

Stulen says WorkSafe NZ has been open and frank in their criticism of some shortcomings, yet has also been constructive at the same time. . .

Feed Partnership Set to Shake Up South Island Mag Regime:

South Island dairy farmers can now reap the rewards of a revolutionary new Magnesium product, which is transforming Magnesium use in dairying.

Animal feed ingredient supplier, BEC Feed Solutions, is partnering with South Island animal feed manufacturer and blender, James & Son (NZ) Pty Ltd, to give the region’s dairy farmers convenient access to its Bolifor® MGP+ product.

Bolifor® MGP+ is a unique alternative to messy pasture dusting and laborious daily drenching, and contains the essential minerals Magnesium and Phosphorus in the one product. It’s anticipated thatBolifor® MGP+ will be well received in the South Island, given that farmers, vets and animal nutritionists are observing an increase in Phosphorus deficiency due to the region’s dependency on fodder beet crops and changing land use. . .


Rural round-up

June 11, 2014

Sector in good heart – judge – Sally Rae:

After travelling 3800km in nine days, visiting 27 farms throughout New Zealand, Preston Hope is heartened by the state of the sheep industry.

Mr Hope, who farms with his wife, Tori, at Deep Stream, between Middlemarch and Outram, was one of three judges for the final round of the New Zealand ewe hogget competition.

The couple won the competition in 2012 and it was an honour to be asked to officiate, he said. . . .

2014 New Zealand wine vintage to support export growth:

The 2014 New Zealand grape harvest has been completed with high quality grapes picked across the country.

“All grape growing regions experienced very favourable growing conditions through the summer and into the early autumn. 2014 is set to be another memorable, high quality vintage which will provide a further boost to growing wine exports” said New Zealand Winegrowers Chief Executive Officer Philip Gregan.

According to the 2014 Vintage Survey, 445,000 tonnes of grapes were harvested. The 2014 crop is up 29% on the harvest last year and will position the industry well for the continuing consumer demand for New Zealand wine. Virtually every region has achieved production growth and for the first time Nelson, Waipara and Central Otago have exceeded 10,000 tonnes. . . .

Skilled and off-farm jobs the growth areas for agriculture – Pattrick Smellie:

(BusinessDesk) – Support services will be the biggest source of job growth for an increasingly sophisticated agricultural sector, a report on the future workforce needs of primary industries concludes.

Projections for the Ministry of Primary Industries, published today, forecasts that some 140,000 primary sector support services jobs will be required by 2025, compared with around 105,000 now, making it the fastest area of job growth and the largest source of employment in the primary sector, which covers sheep, beef, dairy and other animal farming, horticulture, fishing, and forestry.

Sheep and beef farming shows the largest fall in projected workforce size will be in the sheep and beef sectors, where jobs are expected to shrink to around 70,000 by 2025, from around 95,000 in 2002. The booming dairy sector shows hardly any job growth in the next decade, settling at around 50,000. . . .

Accommodation shortage of Fieldays – Susie Nordqvist:

It might be the biggest event of its type in the Southern Hemisphere, but Fieldays management says the event’s future growth could be threatened by an accommodation shortage in Hamilton.

So canny locals are cashing in and renting out their homes.

“I’m renting out my house to exhibitors who are exhibiting over the week of Fieldays, and I’m going as far away from here as I possibly can,” says homeowner Sam Ward. . .

Forest owners want people to speak up

The sponsors of the Independent Forestry Safety Review welcome the public consultation document issued by the review panel on Friday.

”It poses a series of questions which will provide a useful structure for the public consultation meetings that begin on 12 June. We strongly encourage forest owners, contractors, workers and anyone else with an interest in improving the safety of people working in forestry to go to one of the meetings, or to make a private submission,” says Forest Owners Association (FOA) president Paul Nicholls. . . .

New Zealand Avocados Achieve Record Sales For 2013-14 Season:

New Zealand’s avocado industry today announced it has more than doubled its sales from last season to $136m, setting new records in both export and New Zealand markets.

This stunning return eclipses the previous sales record of $84.1m set in 2009-10 and is far in excess of the $60.4m worth of avocados sold last year.

Jen Scoular, Chief Executive of NZ Avocado, says this season’s success is due to a number of reasons including initiatives which are transforming the industry into a more cohesive and competitive sector. . . .

B+LNZ Sheep Industry Awards 2014:

Help us recognise the best of the best in the Beef + Lamb New Zealand Sheep Industry Awards. Nominations close 30 June.

Beef + Lamb New Zealand is excited to be hosting our annual showcase for sheep farming excellence in Napier this year, the first North Island venue for the event. . .

Search for top NZ rural consultants gets closer

Nominations for the annual Consultant of the Year Awards have closed and Farmax is one step closer to announcing this year’s top New Zealand dairy, sheep and beef, and emerging rural professionals.

Farmax general manager, Gavin McEwen, said the awards were developed last year to recognise the expertise and value agricultural consultants and rural professionals provide to the New Zealand pastoral farming industry, which often goes unnoticed.

“On a regular basis we see first-hand the invaluable service that rural professionals provide farmer clients with. The feedback we receive from farmers about their consultants is really uplifting. It shows just how much of a difference consultants can make to their clients’ businesses,” Mr McEwen said. . . .


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