Rural round-up

November 17, 2016

Quake carnage raises 10m new hill at Clarence River – Tim Cronshaw:

A 10 metre high hill pushed up by the 7.5 earthquake on a previously flat river paddock has left valley farmers along the Clarence River completely flabbergasted.

The hill has appeared from nowhere on farmland along river flats about eight kilometres up the valley.

“It was completely flat and now there is a 30 foot hill in the middle of Priam’s Flat and the whole river has come up,” said Matariki farmer James Murray. “it’s unbelievable and if you hadn’t know what it looked like before you would never notice it.” . . .

Fairlie couple 2016 South Island Farmer of the Year:

A husband-and-wife “super team” has secured the title of the Lincoln University Foundation’s South Island Farmer of the Year at the 2016 finals held tonight (Wednesday 16 November).

Chief Judge Nicky Hyslop says that Neil and Lyn Campbell won the judges’ praise with the “efficient, incredibly flexible and adaptive” approach to the way they have developed their dryland property. Their focus has been on systems that allow them to pursue activities that generate the most profit at the most effective point of time, with land stewardship always the foundation of their decisions.

The Campbells’ farm consists of 769ha of rolling hills and flats in Middle Valley near Fairlie in South Canterbury, producing sheep, deer breeding and finishing, and a variety of crops. . . 

Nattrass eyes another stint on Fonterra board:

Former Fonterra director Stuart Nattrass is making a bid to rejoin the co-op’s board. The South Canterbury farmer has been confirmed as a self-nominated director candidate.

He will face off with the two board-nominated directors Michael Spaans and Donna Smit.  

The self nomination process allowed any Fonterra shareholder (with the support of 35 different shareholders) to put themselves forward as a director candidate and be considered for election by their fellow shareholders alongside the previously announced Independent nomination process candidates. . . 

Fonterra running normally, helping quake-hit farmers – Mark Daniel:

With the South Island earthquake dominating our screens, Rural News Group had the opportunity to catch up with Fonterra’s Director of Farmer services, Matt Bolger at Wednesday’s Farm Focus Day at Owl Farm, Cambridge.

Bolger confirmed that since the seismic event they had been in close contact with their teams on the ground in the area, and could confirm that there were no injuries to Fonterra staff or suppliers.

He also told the largely farmer based audience that all factories in the organisation were running normally, although some had shut down automatically due to aftershocks, but were now all back on line. . . 

Crayfish confused by quake ushered back into the water – Kate Newton:

Disorientated crayfish, thrust out of the ocean onto the Kaikoura coastline, have been slowly ushered back into the water by locals.

Along the Kaikoura coastline, earthquake conversation keeps turning to the native crayfish for which the coast is named.

A horde of escaped crayfish (koura) was a side effect of Monday’s massive 7.8 magnitude shake, according to Ward resident Kerry Snell.

“When we got to the [Burkhart Fish] factory, the crayfish that were ready for the load-out, all the bins had tipped over and there were crayfish crawling everywhere. A couple of hundred. I think it was two tonnes of crayfish, just all crawling around. Disoriented too, as we all were.” . . .

Appeal Court turns down Fonterra’s bid to keep inferior terms for ex-NZDL suppliers – Paul McBeth:

Fonterra Cooperative Group has lost its bid to overturn a High Court ruling against inferior terms offered to the suppliers of the failed New Zealand Dairies Ltd business in South Canterbury. 

The Court of Appeal bench, comprising Justices Tony Randerson, Helen Winkelmann and Brendan Brown, today rejected Fonterra’s application to throw out a ruling that it breached the Dairy Industry Restructuring Act by imposing less favourable terms on farmers who had previously supplied NZDL.  . . .

Sanford’s Move From Volume to Value Helps Boost Profit 152%:

Sanford Limited (NZX:SAN) has today posted a 152% increase in net profit after tax to $34.7m for the year ended 30 September.

The Group posted an 85.5% increase in reported EBIT to $57.7m, with revenue up $13.2m to $463.5m.

Sanford CEO, Volker Kuntzsch said it’s a pleasing result after a year of focus across the business on executing the company’s volume to value strategy. . . 

Sanford annual profit more than doubles on weaker kiwi, cheaper fuel – Paul McBeth:

BusinessDesk) – Sanford, New Zealand’s largest listed fishing group, more than doubled annual profit as a weaker kiwi dollar and cheaper fuel bolstered earnings in the face of a smaller catch, and as year-earlier impairment charges weren’t repeated.

Net profit rose to $34.7 million, or 37.1 cents per share, in the 12 months ended Sept. 30 from $13.8 million, or 14.8 cents, a year earlier, the Auckland-based company said in a statement. Revenue rose 2.9 percent to $463.5 million, even as the volume of its catch shrank 11 percent as the company extracted more from a higher-value catch and a weaker kiwi generated bigger export receipts. . . 

Fonterra Co-operative Group Ltd v McIntyre and Williamson:

PARTNERSHIP AND ORS (CA736/2015)
[2016] NZCA 538
PRESS SUMMARY

This summary is provided to assist in the understanding of the Court’s judgment. It does not comprise part of the reasons for that judgment. The full judgment with reasons is the only authoritative document. The full text of the judgment and reasons can be found at http://www.courtsofnz.govt.nz.

1. The Court of Appeal has today dismissed an appeal brought by Fonterra against a High Court ruling that Fonterra had discriminated against a group of dairy farmers by offering them less favourable terms on which it would purchase their milk.

2. The respondents are South Island dairy farmers who were contracted to supply milk to New Zealand Dairies Ltd (NZDL) when it went into receivership in May 2012.

Fonterra successfully tendered to purchase NZDL’s plant in Studholme. As part of the deal, NZDL’s suppliers agreed to switch to selling their milk to Fonterra. . . 

Good news for wine and spirit industries:

Commerce and Consumer Affairs Minister Paul Goldsmith has welcomed the passing of a bill which will enable New Zealand wine and spirit makers to register the geographical origins of their products.

“The value of our wine exports has now reached $1.6 billion. We must jealously guard the reputation of New Zealand wines if we are to continue growing our wine exports,” says Mr Goldsmith.

The Bill amends the Geographical Indications (Wines and Spirits) Registration Act (the Act) to ensure the process for registering geographical indicators runs smoothly. . . 

Largest robotic farm taking shape:

A 6500-head dairy farm in Chile will become the world’s largest robotic dairy after signing an agreement to install 64 DeLaval VMS milking robots.

The farm, owned by AgrÌcola Ancali and part of the Bethia Group, already has 16 DeLaval VMS installed and averages 45.2 litres for the 920 cows going through the robotic milking system.  

Ancali AgrÌcola chief executive, Pedro Heller, says the expansion follows good results from first stage of the robotic dairy. . . 


Rural round-up

August 29, 2016

Farmers enable us to reach our potential. Let’s celebrate that – Federated Farmers:

Farmers get their hands dirty so we can pursue goals and livelihoods beyond growing and harvesting the food we need to survive.

With food plentiful, and lifestyle expectations high, we seem to have forgotten the role of farmers in the modern world.

Why is it farmers in developing countries only farm around a hectare of land each?  It is because that is how much land one person can cultivate in one season by hand.  The food production in many developing countries is not limited by land, but by labour and productivity.  That is why big families are necessary – more hands to till more land.

Have you ever stopped to think how many potentially great doctors, engineers or scientists spend their lives on the end of a hand-hoe in these countries?  Never to see their potential fulfilled.  In many developing countries subsistence farmers make up more than 80 per cent of the population.

Delegating farmers to provide our food gives the rest of us freedom and choice to do what we are good at. . . 

Drought warning – Annette Scott:

Low or no flow in many of Canterbury’s streams and rivers could lead to early water restrictions this season, Environment Canterbury warns.

Canterbury has entered its third successive drought season with 86% of water bores affected and some wells at their lowest in 30 years.  Only significant snow and rain could make a difference now, ECan chief Executive Bill Bayfield said.  

Weather forecasters reported one of the wimpiest winters in recent years and had already announced spring’s early arrival. Significant rain or a decent snow-dump were not on the radar. .  .

Feral cats reaching plague proportions – Robin Martin:

Feral cats are reaching plague proportions in New Zealand’s back country and no-one seems to want to take responsibility for the problem, says a Taranaki beekeeper.

Sarah Hart and her partner Steven Henwood say they often drive through – what they describe as – “herds” of wild cats while out retrieving hives.

The couple live in the remote Okoki valley, about 20 kilometres inland from Urenui in North Taranaki.

Ms Hart said at dusk the rugged beef and sheep country was alive with feline forms – some of the estimated 2.5 million feral cats in New Zealand. . . 

We aren’t that couple – Uptown Farms:

Dear America, 

It struck me this morning, as my husband and I were walking out the door – there is something I need to tell you.  Something I need you to know.  

We aren’t that couple.  In fact, I’m not even sure if we own a pitchfork.  

A lot has changed since the 1930’s.  Our corn yields have increased six times over.  We use computers, GPS, seed technology. We grow more, on less water and land. Our farms are bigger, our equipment is bigger, even our animals are bigger.  We do all of this with fewer people than ever before in history. 

We have college degrees, my husband actually has two. One of us works off the farm full time which is the new norm for farm families – just like non-farm families.  We are professionals.  . . 

Cavalier Corporation returns to profit:

New Zealand carpet maker Cavalier Corporation has returned to a profitable position posting a net profit after tax of $3.1 million for the financial year ended 30 June 2016.

This represents a significant turnaround from the company’s write downs and recorded loss of $25.7 million in 2015.

Both net profit and normalised profit of $6.3 million after tax were slightly up on the earnings guidance Cavalier issued in June.

Cavalier Corporation CEO Paul Alston says the company’s performance is encouraging and representative of the transformation it is undertaking with debt reduction and a dual focus on revenue and cost. . . 

Milk production plummets 10.3%:

Australian milk production plummeted 10.3 per cent in July compared with last year, with massive drops in Tasmania, South Australia and northern Victoria, according to the latest figures from Dairy Australia.

Farmers have slashed production in response to the big cut in milk prices, initially by Murray Goulburn and Fonterra in May and then by most processors in July.

Tasmanian production is hardest hit, down 19.6 per compared with July 2015. . . 

Seeka hikes interim dividend as first-half profit almost doubles Paul McBeth

(BusinessDesk) – Seeka Kiwifruit Industries hiked its interim dividend to shareholders as the first harvest from its recent Australian acquisition and record crops contributed to a first-half profit that almost doubled.

Net profit rose to $7.1 million, or 43 cents per share, in the six months ended June 30 from $3.7 million, or 24 cents, a year earlier, the Te Puke-based company said in a statement. Revenue climbed 39 percent to $134.2 million, and the board declared an interim dividend of 10 cents per share, payable on Sept. 29 to shareholders on the register on Sept. 22. That’s up from 9 cents a share a year earlier. . . 

Delegat to pay bigger dividend after posting record annual operating profit – Paul McBeth

(BusinessDesk) – Delegat Group will pay a bigger dividend to shareholders after reporting a record operating profit for the 2016 financial year, with North American sales driving revenue growth.

The Auckland-based company’s board declared a dividend of 12 cents per share payable on Oct. 14 to shareholders on the register on Sept. 30, up from 11 cents it’s paid in the past two years. The winemaker reported a record operating profit of $37 million, on a 9 percent increase in global case sales to a record 2.41 million, including 1 million cases sold in North America.

“The directors consider that the underlying operational performance and strong cash flows justify an increase in dividends this year,” executive chairman Jim Delegat said. . . 

Central Otago winery nails Decanter tasting in UK – “Outstanding”:

Central Otago winegrowers Roger and Jean Gibson are elated that a wine from their Lowburn Ferry vineyard has ranked Number One in high profile Decanter magazine in the UK. The in-depth tasting of more than 170 pinot noirs from across New Zealand in Decanter’s September 2016 issue was carried out by a panel of three prominent UK industry wine judges. Lowburn Ferry Home Block Pinot Noir 2014 scored 96 points out of a possible 100, giving it “Outstanding” status in the tasting.

In the covering feature article reviewing the tasting, New Zealand is described as being “the best Pinot-producing country outside of France.” . . 

Dunedin owners of Central Otago winery win their first wine trophy:

Central Otago’s Black Quail Estate vineyard and truffière is victorious after being awarded the Mike Wolter Memorial Trophy and Champion Pinot Noir at the Bragato Wine Awards in Marlborough last night.

Black Quail Estate 2013 Pinot Noir is a true boutique, single vineyard wine. All the Pinot Noir is from this single vineyard on Felton Road, Bannockburn and only 400 cases are made every year.

Sitting on 25 hectares of prime grape growing land on Felton Road, Bannockburn Dunedin’s Keillor family purchased the land in 1999. Owners Rod and Mirani Keillor immediately planted ten hectares with Pinot Noir and now have planted the rest with olives, fruit and hazelnut trees. . . 


Rural round-up

August 10, 2016

Dairy downturn has a $1.3b impact on Waikato/Bay of Plenty farmers – Gerald Piddock:

The dairy slump has ripped more than a billion out of Waikato and Bay of Plenty farmers’ pockets, new figures show.

Farm consultancy group AgFirst’s 2016 Financial Survey shows the average dairy farmer’s net cash income was down $273,000 last season.

When multiplied by the region’s 4800 dairy farms, that’s $1.3b in lost income.

The big question was how much longer farmers could maintain the current situation where they had drastically reduced expenditure, AgFirst consultant Phil Journeaux said. . . 

Wintry blast hits farmers hard – Matt Shand:

The milking shed has frozen shut at Taharua Valley Farm as 200 dairy cows huddle together waiting for the problem to be fixed.

At 783 metres above sea level, the 2000-cow PenXing Group Milk New Zealand farm is one of the hardest hit by the recent snowstorm. Just over 100 metres lower in Taupo, the snow was a fun novelty. But here it is causing serious challenges. 

There is no such thing as time off for farmers and farmhands. Hot water and heaters are used to help thaw the shed out so it can hopefully milk animals tonight.  . . 

The snow has come again – Keith Woodford:

Every year we all talk about the weather and how fickle it is.  This year is no different. In most parts of the country, June and July were unseasonably warm.  Where I am in Canterbury, winter grass growth has possibly been higher than ever before.  Grass covers at the start of August were excellent.

In contrast, last year was one of the coldest winters on record, with many South Island farms getting no net growth in June and July.   That year, there was a string of southerlies, whereas this year warm winds were blowing over the Alps. . . 

MPI investigators target alleged unregulated meat sales:

A team of Ministry for Primary Industries investigators today executed a search warrant at an alleged unregulated meat premises in Turangi.

This was the culmination of a six month undercover operation involving the purchase of considerable quantities of venison, lamb and pork products from a local Turangi man.

The man is now being spoken to by MPI investigators in relation to the alleged sale of meat from an unregulated premises.

MPI Compliance Operations Manager, Gary Orr, says a decision will be made shortly as to whether charges will be laid under the Animal Products Act. . . 

Profit jumps for New Zealand’s leading fresh produce exporter :

Turners & Growers Global has posted an 89 percent gain in first-half profit driven by sales from new and existing businesses and a one-time gain from the sale of its crate hire unit.

The fruit marketer is controlled by Germany’s BayWa but is Auckland based. Their product base includes apples, pears, mandarins, coconuts and kiwifruit.

T&G profit rose to $22.7 million, or 18.2 cents a share in the six months ended June 30, from $12m, or 9.8 cents, a year earlier. Sales rose 14 percent to $423m. . . 

Fonterra Shareholders’ Council to get clearer mandate – Paul McBeth

(BusinessDesk) – The Fonterra Shareholders’ Council, which represents farmer interests in the world’s biggest dairy exporter, is poised for a refreshed mandate with clearer guidelines on how it interacts with the milk processor.

The council and Fonterra Cooperative Group are seeking feedback from farmers on a series of proposals to update the group’s governance to make the council’s role clearer, explain how it works with Fonterra’s board and management, and improve communication with farmer shareholders. Farmers are expected to vote on any changes to the council’s governance at a special meeting in mid-October. . . 

One of the worlds’ most respected wine consultants appointed to NZ’s boutique vineyard Chateau Waimarama:

After an extensive international search, award winning boutique vineyard Chateau Waimarama, has lured leading Bordeaux wine consultant Ludwig Vanneron half way across the world to be its wine specialist.

Ludwig Vannerons’ stellar career has seen him work in prestigious and major wine areas of Bordeaux, managing the winemaking process in estates from small chateau Bordeaux appellation properties to great classified growths. . . 


Rural round-up

August 3, 2016

DairyNZ: break-even cost pared back as farmers lift efficiency:

Industry body DairyNZ says the increased dividend and the maintained $4.25 per kg MS Fonterra Farmgate Milk Price is some good news for farmers with shares.

But another positive is also emerging – New Zealand dairy farmers have sharpened their systems and reduced costs through this sustained low milk price period.

DairyNZ chief executive Tim Mackle says while the milk price will continue to keep pressure on farmers this season, the industry’s performance in cost-cutting on-farm means break-even costs have been reduced. . . 

TB Differential Levy:

New Zealand’s meat processors have for some years collected a single uniform biosecurity levy on beef and dairy cattle at meat processors to pay for the costs of TB eradication. Following a review undertaken last year, the Government and DairyNZ agreed that dairy farmers shall pay for a greater share of their share contribution to TB eradication via a differential levy paid on dairy cattle at meat processors.

Meat processors opposed this differential levy on dairy cattle at meat processing. Meat processors believe that it is contrary to good public policy for costs to be charged at the point of production where they do not arise – in this case, costs incurred by dairy farmers should have been met by a charge on their dairy production, rather than through a complex system of differentiating dairy and beef cattle at meat processing. . . 

Walker First Woman to Walk Away with Rural Real Estate Award:

Katie Walker accepts her award from Brennon Skipper (CEO of realestate.co.nz).

Taumarunui farmer Katie Walker, is the first woman to receive the coveted REINZ Rural Rising Star of the Year award.

Katie has made her mark, after her first year in the traditionally male dominated rural sector of the real estate industry. She joined the Property Brokers rural team three weeks after her second baby was born. “I had been in rural retail trade for years, left to have a family and wanted to come back to something more flexible,” she said.

“I went for the interview and I knew this was it.”

Independent travellers bring tourism dollar to new regions:

A new report into New Zealand’s tourism sector says travellers are looking to regional New Zealand for a more ‘authentic’ Kiwi experience.

In its latest report on the tourism sector, consumer behaviour analysts Marketview has looked at the spending patterns of tourists around the country, and Managing Director Stephen Bridle says the results mean good news for regional New Zealand.

“Our figures show confident, independent tourists want unique and authentic experiences centred on specific interests. Those here for cycling, golf, fishing and even shopping can find something uniquely Kiwi almost anywhere in the country.” . . 

Wood and carbon values boost forest interest:

Significant rises in New Zealand carbon prices and positive prospects for exported timber may signal a renaissance for forest plantings, with new opportunities for landowners and investors alike in coming years.

Since April the value of carbon prices in New Zealand have almost doubled to $18/tonne after languishing as low as $2.50 a tonne only two years ago.

Meantime log prices have remained relatively firm, sitting $15 a tonne above their five year average with some strong price signals over the past year coming from traditional markets including China and increasing market share to India and South Korea. As of May export values were up 6% in value on a year to year basis. . . 

Agcarm President Mark Christie to the 69th Agcarm Annual Conference:

New Zealand farmers and growers have been exporting food and fibre for over 150 years. Our primary industry export revenue is estimated to reach over $36.7 billion in the year ending June 2016.

Over this time innovation and research based science has allowed New Zealand farmers and growers to become world leaders in productivity and quality – with New Zealand well placed to help feed a growing global population.

These gains are increasingly at risk due to the politicising of science which is leading to its marginalisation. So arguing for sensible science is one of our industries greatest challenges. . . 

Production imminent at NZ’s first commercial scale biodiesel plant:

New Zealand’s first commercial-scale biodiesel plant today received its first delivery of inedible tallow, which enables the beginning of biodiesel production.

Z Energy’s $26 million biodiesel plant at Wiri, Auckland, is now in the commissioning phase and will start to produce high quality, sustainable biodiesel later this month. At the plant’s peak of production it will produce 20 million litres of biodiesel, which will be supplied as a biodiesel / mineral diesel blend to both commercial and retail customers across much of the upper half of the North Island.

Z’s General Manager of Supply and Distribution, David Binnie, said the delivery of tallow was a milestone which has been years in the making. . . 

Ten Year Milestone for Central Otago Wine Industry Ambassador Programme:

Telling the world about Central Otago’s wines and proving to people who sell those wines just how spectacular they are, is the job of Central Otago Pinot Noir Ltd (COPNL).

COPNL’s latest group of brand ambassadors flew out of Queenstown airport at the end of last week, marking the completion of COPNL’s tenth iconic ‘E’Sensual’ event.

E’Sensual has been part of the Central Otago wine industry’s event calendar each year since 2007, and is targeted at international and national wine specialists who enjoy a first-hand taste of what the region’s wine industry has to offer. The 2016 E’Sensual marked the tenth anniversary of the event and celebrated the 150th E’Sensual guest hosted in the region. . . 

PGG Wrightson says annual profit rose about 20%; shares gain –  Paul McBeth

(BusinessDesk) – PGG Wrightson shares gained 4.5 percent after it said full-year profit rose about 20 percent and operating earnings beat guidance, which had already been upgraded on the strength of the horticulture and beef sectors.

The Christchurch-based company today said trading beat expectations “due to a variety of factors” and that operating earnings before interest, tax, depreciation and amortisation exceeded $68 million in the year ended June 30. Wrightson raised its earnings forecast in June, predicting ebitda of between $65 million and $68 million in the year, though down from $69.6 million in 2015. . . 


Rural round-up

July 28, 2016

NZer Matt Smith breaks world shearing record:

New Zealander Matt Smith has broken one of the biggest world records in shearing sports in England overnight.

He smashed the world solo nine-hours ewe shearing record with a new tally of 731 in the first global shearing record attempted in the Northern Hemisphere.

The previous record of 721 had stood for more than nine years since being shorn by Hawke’s Bay shearer Rodney Sutton in 2007.. . 

Farm survey shows confidence subdued but steady:

Farmer confidence has picked up slightly since surveyed last in January but remains weak, according to Federated Farmers’ July 2016 Farm Confidence Survey.

The survey was conducted immediately after the Brexit decision and this appears to have dampened farmer confidence in the global market, on top of their existing concerns about the domestic scene, president of Federated Farmers Dr William Rolleston says.

“The strength of the global economy, post Brexit, is weighing heavily on farmers’ expectations. . . 

Leading Kiwi farmers join global master class on fact-finding mission to Zambia:

Six New Zealanders were among a select group of 20 leading farmers from around the world to recently attend a Rabobank Global Farmers Master Class in Zambia.

The week-long education program – which comprised alumni of previous Rabobank Global Master Class events held around the world – brought together farmers from nine key food and agriculture-producing countries to observe the potential of the Zambian agricultural sector and to discuss the challenges facing local producers. The program saw participants visit a range of agricultural operations in Zambia’s Lusaka and Mkushi regions and hear from a number of key Zambian agriculture industry participants. . .

Challenges as Marlborough wine industry booms  Shannon Redstall:

Wine production in Marlborough is tipped to increase by 25 percent over the next five years so industry leaders are meeting to today to plan for the future.

The movers and shakers of the Marlborough wine industry are holding a meeting today to discuss the future of one of the country’s biggest exports.

Results from the recent Marlborough Labour Market Survey, a joint initiative by Wine Marlborough, New Zealand Winegrowers and Marlborough District Council, show the industry is rapidly expanding. . .

Predator-Free New Zealand Critical to Dairy Industry:

Fonterra has welcomed the Government’s goal of New Zealand becoming predator free by 2050.

“This is a hugely significant goal, and one that the dairy industry shares,” said Carolyn Mortland, Fonterra’s Director of Social Responsibility.

“A predator free New Zealand would have significant benefits for New Zealand’s environment as well as help with animal TB eradication.”

TB and other diseases carried by possums and rats carry a high on-going cost to farmers, as well as to dairy companies investing in pest control for the protection of production facilities. . . 

Allied Farmers shares jump 16% on earnings upgrade – Paul McBeth:

(BusinessDesk) – Allied Farmers shares jumped 16 percent after the rural services firm gave a rosier view on annual earnings due to a better than expected performance from its livestock division.

The Hawera-based company said pre-tax profit was between $1.4 million and $1.6 million in the year ended June 30, up from $1.11 million a year earlier. The final result will be released on by Aug. 29. The shares climbed 0.7 of a cent to 5 cents, valuing the company at $8.3 million.

“A large portion of NZ Farmers Livestock’s income is budgeted to be received in May each year, due to the timing of dairy herd sales,” chairman Garry Bluett said. “ . .

 


Rural round-up

July 8, 2016

Sheep industry recognises top performance:

The sheep industry celebrated its best and brightest at the Beef + Lamb New Zealand Sheep Industry Awards in Masterton last night.

This is the fifth year the industry’s top performers have gathered to acknowledge outstanding contributors in genetics, science and commercial lamb production.

Amongst the award recipients were Northland sheep breeder Gordon Levet, who was recognised for his long-term work breeding towards worm resistance, while Hawkes Bay farmers James and Jane Hunter won the Blackdale Stud Sheep Industry Supplier of the Year. . . 

Amethyst the foundation jewel of Hereford family – Kate Taylor:

Five generations of one family have sat at the head of NZ Herefords. Kate Taylor went to Akitio, southeast of Dannevirke, to meet the latest one.

Akitio farmer Philip Barnett has followed in the footsteps of his father, grandfather, great grandfather and great, great grandfather to become president of NZ Herefords.

Barnett and wife Lyn own the Kaitoa Hereford Stud, which traces its origins back to the importation of a cow called Amethyst in 1882.

It is a cow family that still remains a linch pin of the stud more than 130 years later, along with the Kaitoa Lady, Princess and Leonora cow families. . .

Bobby calf welfare: everyone has a role to play:

As the dairy industry’s spring calving kicks off, the Bobby Calf Action Group (BCAG) is reminding everyone who handles calves of the important role they have to play.

“The rubber hits the road now, it’s up to everyone across the supply chain to meet the required standards of care for bobby calves this season,” says Ministry for Primary Industries Deputy Director General, Scott Gallacher.

Eight organisations make up the BCAG which was formed at the end of 2015 to accelerate and add to existing measures aimed at ensuring everyone involved with bobby calves applies best practice in their handling and care. . . 

Dairy farms that survive the current downturn will be leaner, more agile and resilient – Rees Logan:

Two difficult seasons of below-average dairy payouts, and a third being forecast, have delivered a big wake-up to the dairy farming industry.

The average payout for the current and last two seasons is approximately $4.55 (including dividend) against DairyNZ’s estimated average breakeven payout required by farmers of $5.25. This means three seasons where most farmers have had to take on additional debt just to survive.

Dairy farmers have been forced to take a ruthless approach to expenditure and to switch their focus from production to profitability in a bid to cut debt. . . 

Irrigation 101 to upskill professionals:

A beginner’s guide to irrigation will be offered in Hawke’s Bay next month for professionals who need to better understand the sector to help their dealings with farmers.

The Irrigation Fundamentals course is a two day workshop offered by IrrigationNZ to introduce non-farmers to the principles of irrigation management. The course, particularly targeted at frontline staff of organisations and businesses that provide services to the irrigation industry, will take place in Hastings on 3rd and 4th August.

Rural advisors, environmental consultants and regional council staff are among those who have attended the course so far in the South Island. . . 

NZ venison prices rise amid tight supply as farmers rebuild herds -By Tina Morrison:

(BusinessDesk) – New Zealand meat processors are having to pay more to secure supply of local venison to service their overseas contracts as farmers retain their breeding hinds to rebuild herds.

Spot prices for a 60-kilogram AP stag have hit $7.85/kg, up from $6.60/kg this time last year and the highest level for this time of year since 2011, according to AgriHQ. Venison production dropped 36 percent in May from the year earlier month, and is down 23 percent in the processing season so far, from Oct.1 through May 31, according to AgriHQ. . . 

Bright fisheries future:

New Zealand fisheries are in good heart, with great potential for the future, Seafood New Zealand Chief Executive Tim Pankhurst said today.

He was speaking at the Marine Societies of New Zealand and Australia conference at Victoria University of Wellington, which has attracted more than 350 marine scientists from both countries.

Pankhurst says the outlook for the New Zealand seafood industry is bright.
“We are not going to run out of fish.”

“We have a seafood sector that is in good heart. Our stocks are sustainable – it’s not just the fishing industry saying that, the science supports it, and the world wants what we produce – and aquaculture is expanding.” . . 

NZ King Salmon reviewing capital options as IPO rumoured – Paul McBeth:

(BusinessDesk) – New Zealand King Salmon Investments says it’s reviewing its capital options to support the development of three new farms in the Marlborough Sounds after Australian media reported the company was looking at an initial public offering.

The Nelson-based salmon farmer and processor hired Credit Suisse and First NZ Capital to test investor interest in Australia and New Zealand for a dual-listing on both sides of the Tasman, valuing the company at $200 million, the Australian Financial Review’s Street Talk column reported. . . 

NZ Yarn Appoints New CEO:

Colin McKenzie has been appointed as the new CEO for Christchurch based NZ Yarn Ltd, effective Monday, 4 July.

NZ Yarn manufactures and markets high quality wool spun yarns for the carpet industry worldwide.

McKenzie was most recently CEO and Managing Director of Cavalier Corporation. He has extensive experience in the textile and manufacturing sectors, and for companies servicing local and export markets.

NZ Yarn is 100% New Zealand owned by Carrfields Primary Wool and several independent investors, who bought it from receivers in 2014. . . 

Global Uncertainity Affects Wool Market:

New Zealand Wool Services International Limited’s C.E.O, Mr John Dawson reports that the ongoing fallout from the Brexit result, continued minimal activity from China and a strong New Zealand dollar have compounded to make significant inroads into local wool values.

The weighted currency indicator compared to last sale lifted 0.66 percent, however against the GBP the New Zealand dollar strengthened a further 4.4 percent making a shift of over 13 percent since the Brexit announcement. Market sentiment is bearish as many clients take a cautious approach during this unsettled period. . . 


Rural round-up

July 6, 2016

How many ticks does SFF need? – Neal Wallace:

Silver Fern Farms can rightly ask just how many hoops does it have to jump through before opponents of the proposed transaction with Shanghai Maling accept the legitimacy of last year’s shareholder approval of the deal?  

The Companies Office and Financial Markets Authority – bodies charged with administering business behaviour – have both rejected complaints about SFF’s handling of last October’s shareholder vote, the financial information supplied to its shareholders and to Shanghai Maling.  

But a more important hoop it could be argued SFF has easily traversed is shareholder support. . . 

Highly profitable banks are playing a long-term and responsible game with struggling dairy farmer borrowers – Rees Logan:

In the year to March 2016, lending to the dairy sector increased by 9% to approximately $40 billion.

During that same period, land prices in the dairy sector dropped 16%, according to Real Estate Institute (REINZ) figures. This fall in land prices means the increased lending is effectively funding the losses the banks’ customers are suffering as a result of the low dairy payout.

Key asset values are decreasing (land and livestock) and debt is increasing so owner equity and bank security is quickly eroding. 

DairyNZ figures show approximately 50% of New Zealand’s dairy sector debt is held by the top 20% of its indebted farmers. This is a major concern. . . 

Marlborough farmer ‘wild’ after overnight electric fence theft – Jennifer Eder:

An electric fence has been stolen in Marlborough in an overnight heist, leaving stock on the loose and a farmer out of pocket.

Grovetown farmer George Wadworth found his sheep loose along the road on Sunday morning and discovered about a kilometre of fence had vanished.

“I was pretty wild. My main concern was not really for stock safety but people using the road. It’s quite close to a main highway, and if a sheep hits someone’s windscreen at 100kmh, it’ll kill you.”

Community constable Russ Smith said someone had “gone to quite a bit of trouble” to remove 250 plastic fence standards, or electric fence posts, from the  16-hectare vineyard. . . 

NZ commodity prices rise in June, led by seafood, dairy – Paul McBeth:

(BusinessDesk) – New Zealand commodity prices rose for a second month in June, led by more seafood and dairy products, although an appreciating kiwi dollar limited those gains in local currency terms.

The ANZ commodity price index rose 3.7 percent last month, after a 1.1 percent increase in May. On an annual basis, prices were down 5.4 percent. In New Zealand dollar terms the index rose 0.3 percent, adding to a 2.5 percent increase in May, and an annual decline of 5.9 percent. The trade-weighted index rose 4.9 percent in June.

“There was broad-based strength across all the major categories. However, producers won’t be celebrating too loudly,” ANZ Bank New Zealand agri-economist Con Williams said in his report. “In many cases, world prices are still below the same time last year and the NZD rose over the month too.” . . 

New partnership supports takahē recovery

A newly-signed partnership between DOC and Fulton Hogan will help the critically-endangered takahē continue its recovery, Conservation Minister Maggie Barry says.

Worth $1 million, the partnership was signed at the Burwood Takahē Centre near Te Anau today by DOC director-general Lou Sanson and Fulton Hogan’s director of investments, Bob Fulton.

“The Takahē Recovery Programme has just had its most successful breeding season on record, with 38 chicks fledged,” Ms Barry says.

“Consistently high numbers of chicks are being produced each year, thanks to the hard work of DOC staff, volunteers and our Treaty partner, Ngai Tahu. Fulton Hogan will support the next step in the species’ recovery.” . . .

TB eradication scheme marks milestone:

New Zealand has taken another step towards becoming TB-free with large areas of previously infected land being declared free of the disease.

OSPRI administers the TBfree programme aimed at eradicating bovine tuberculosis from cattle, deer and wildlife.

It has has been progressively achieving this by intensive possum control, then carrying out wildlife surveys to confirm the disease has been eradicated. . . 

Fonterra Lichfield Achieves One Million Building Hours:

Major milestones are being knocked off as construction on one of the world’s largest dryers races towards completion – the result of over one million working hours on the new Fonterra Lichfield milk powder dryer.

For more than 3,000 people representing 300 companies, the finish is now clearly in sight as the September commissioning date for this world-class dryer nears.

South Waikato Operations Manager Sam Mikaere says it takes one look at the numbers behind the build to get an appreciation for its impressive scale.

“This is not just any dryer we’re building. Along with our D2 dryer down at Fonterra Darfield, this will be the biggest milk powder dryer on the planet,” he says. . . 

Record turnout at RCNZ annual conference:

A record turnout of 153 contractors, from all around the country, descended on the Bay of Islands – in late June – for this year’s RCNZ annual conference.

RCNZ national president Steve Levet was delighted with the record conference turnout – held at the Copthorne Hotel and Resort, in Paihia, from June 27-30 – given the current economic climate.

“This is the largest turnout that I can recall and it seems many rural contractors have decided to ignore some of the doom and gloom merchants and are clearly focussed on looking forward to better times.”

Mr Levet says the conference had an exciting agenda of relevant and pertinent issues to the rural contracting sector – along with a number of top-line speakers. This year’s conference theme was: “Your Business from Start to Finish” and it also celebrated the 20 year anniversary of Rural Contractors NZ (RCNZ) as an organisation. . . 

Hawke’s Bay Tonnellerie de Mercurey Young Winemaker 2016 Announced:

Congratulations to Alex Roper from Mission Estate for winning Hawkes Bay Young Winemaker 2016. The competition took place on 1 July at EIT in Taradale followed by dinner and contestants speeches at Mission Estate. Yvonne Lorkin was the charming and entertaining MC who also ran the wine options section of the evening.

Congratulations also goes to Tom Hindmarsh from Dry River in Martinborough who came second (contestants from around the North Island were eligible to enter) and Brad Frederickson from the Hawke’s Bay Wine Company who came third. . . 


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