Rural round-up

May 5, 2019

Sensible immigration will allow rural communities to flourish – Nick Hanson:

A big shakeup could be coming for New Zealand’s immigration policy.

Many of the proposed changes are sensible and will lead to a simplification of the immigration system, but there is also concern that while the system might be easier to understand, it will be harder, longer and more costly to employ workers from overseas.

Under the proposals, every employer who wishes to employ a migrant must become an accredited employer. In theory, this is good  migrants deserve to come to New Zealand to an employer who treats them well and complies with New Zealand employment law.  . . 

Fonterra could learn lessons in enterprise and growth from Australia’s Wesfarmers – Point of Order:

NZ  co-ops have been  getting  a  bad  media  rap   lately.  Take  Fonterra, for example.  Andrea Fox, one of the  country’s  best-informed journalists  specialising  in agriculture  issues,  started   a  new series in the  NZ  Herald  with the  headline:  “Fonterra: Disappointment and soured  dairy dreams”.

Noting   the dairy goliath had a silver-spoon  birth   nearly  18 years ago she  wrote:

“Today the  co-operative  is looking a bit like  the family’s overweight, lazy teenager  hogging the remote  on the biggest couch in the room And the  credit card bills are coming in”.

After Fonterra posted a historic first net loss of $196m, Fox  says  calls  are heating up  for  the company to be split up  and a  company, perhaps  listed, spun off it, open to outside capital  investment to  chase  high-value product  markets. One of the country’s investment  gurus, Brian Gaynor, says even major shareholders  are telling him it’s  time for  change. . . 

Uncertainty swirls over Mackenzie dairy plan – David Williams:

The legal battle over a large dairy farm planned for the Mackenzie Basin is heading to the High Court. David Williams reports.

The future of the Mackenzie Basin’s Simons Pass Station – a lightning rod for national environmental opposition – remains as unclear as a swirling effluent pond.

Dunedin businessman Murray Valentine has spent 16 years and millions of dollars gathering approvals, court settlements, and building infrastructure for a $100-million-plus dairy development at Simons Pass, near Lake Pukaki. Valentine told Newsroom last year he plans to irrigate 4500 hectares at the property – some of which is Crown lease land – and stock more than 15,000 animals, including 5500 cows. (The average herd size in New Zealand is 431 cows. The national herd is five million milking cows.)

As of late last year, 840 cows were being milked and Valentine says the development is about a quarter finished. . . 

Regional wrap:

Confident sheep and beef farmers are paying top money and have out-bid foresters for land on the North Island’s East Coast. In the South Island apple harvesting’s almost finished in the Nelson Motueka region.

Kaitaia, in Northland’s north, needs a good dose of rain – the five or six millimetres at the weekend didn’t help much.  Where there are wet spots in paddocks new grass is germinating well.

Around Pukekohe it’s been quiet in market gardens because of the school holidays and the working week being interrupted by statutory holidays. Many staff have taken time off. It’s been warmer this week than last and Monday’s 15mm of rainfall has been enough for most crops. . .

Bumper crop of Young Vegetable Growers:

Seven of New Zealand’s best and brightest will vie for the title of Young Vegetable Grower of the Year in a competition in Pukekohe next Friday, 10 May.

The victor will be crowned Young Vegetable Grower of the Year, and move on to the Young Grower national final, to be held in Tauranga in October. There, they will join the winners of the Bay of Plenty, Central Otago, Hawke’s Bay, Nelson, and Gisborne regional fruit-grower events, to compete for the national title of Young Grower of the Year 2019.

Contestants will demonstrate their knowledge and skills around topics vital to the management of a successful horticulture business, including tractor proficiency, sales and marketing, and health and safety. The winner will be decided at an awards dinner on Friday night, where they will speak to an audience from throughout the industry about growing in a climate of change. . . 

Stuart Varney is proud to be a farmer the Fox business star sees a Chinese trade deal coming soon – Betsy Freese:

Stuart Varney has a top-rated market program on television, but he is happiest when he is working on his 1,100-acre tree farm in upstate New York. The host of Varney & Co., weekdays 9 a.m. to noon EDT on FOX Business, is in the midst of his first timber harvest this spring. Born and raised in the U.K., Varney, 70, helped Ted Turner launch CNN in 1980. He became an American citizen in 2015. I caught up with Varney to talk about agriculture, trade deals, and the media.

SF: Tell me about your farm.

SV: It’s lovely rolling hills and forests, a delightful piece of land. It reminds me of my native England. I bought it 18 years ago because I wanted a big piece of land within a reasonable drive of my home in New Jersey. In England, the idea of owning 1,000 acres, or even 100 acres, is out of the question unless you are a billionaire. But in America, you can do it. We found this property for a reasonable price. It was my piece of America. I fell in love with it. The idea of creating a tree farm came later. I didn’t know anything about logging and didn’t buy it for that purpose, but we hired a forester and he created a plan. Our first harvest is this year. We will harvest 1,088 trees. . . 


Rural round-up

April 16, 2019

‘M. bovis’ effects force family off farm – Sally Rae:

Graham Hay is preparing to walk off the land his family has farmed for nearly a century.

The Hakataramea Valley property has been in the family since his grandfather took over in 1921 and Mr Hay has lived there all his life.

It is gut-wrenching to hear his voice choking, as he explains how he and his wife Sonja have had no choice but to sell their farm.

Already under financial pressure coming out of an irrigation development phase, he believed they could have farmed through that. . . 

Lessons learned: MPI holds public meeting with farmers – Sally Rae:

Painful lessons have been learned during the Mycoplasma bovis response and hopefully all lessons will be “locked in” and used in the event of another disease incursion, programme director Geoff Gwyn says.

Mr Gwyn was speaking at a public meeting in Oamaru last week, as part of a series of farmer and public meetings throughout the country.

Those meetings came in the wake of the launch of the 2019 Mycoplasma bovis National Plan, released by the Ministry for Primary Industries, DairyNZ and Beef + Lamb New Zealand last week. . . 

Yili bid for Westland Milk raises questions about dairy co-operatives – and Fonterra’s ownership – Point of Order:

On  the face  of  it, it’s  a  no-brainer.  Weighed  down  with  debt,  Westland  Milk,  based in   Hokitika  is financially  on  its  knees.  Riding  to  its  rescue,  Chinese  dairy  giant  Yili  has come in with a  $588m buyout deal   which  will yield  $3.41  a share   to the co-op’s  farmer shareholders,  and, as well,   absorb  Westland’s debt and liabilities.

According to  Westland, the  nominal value of its shares  has ranged  from  70c  to $1.50  per share. For the  average-sized  Westland farm, the  share offer translates to  about half a  million dollars cash.

The offer  looks even  more attractive since  Westland had to  cut its  milk payout  forecast, while other  companies’ forecasts  are rising.  Westland, which has  grown out of  the West  Coast’s  150-year  dairy heritage, hasn’t paid  a  competitive milk price   for  several years. . . 

Lumsden Maternity Centre downgrade may force expectant mothers to travel further

Mothers may be forced to travel further to give birth after a Southland birthing centre was downgraded.

The Southern District Health Board announced the Lumsden Maternity Centre downgrade last August, triggering community outcry, a protest march, petition and appeals to the government.

The centre has become a maternal and child hub where babies are only delivered in an emergency.

The company that ran the centre said mothers travelled from as far away as Queenstown and Te Anau to use the birthing services. . . 

Farmhand’s common sense solution for vegan activism – Andrea Davy:

A YOUNG farmhand has offered up a commonsense approach for stopping the spread of misinformation around Australian farming.

Coming off the back this week’s vegan protests, which rolled out across the nation on Monday, Zoe Carter posted a Facebook live where she called on the industry to “step up” and increase education in schools.

Zoe has more than 140,000 followers online, an audience she has grown through sharing videos and photos from her life working in ag.

In the post, she said the current education system was leaving a huge knowledge gap on how food was produced. And, unfortunately, this space was being filled up with “lies” peddled on social media. . . 

Large-scale highly fertile stock finishing farm for sale:

A highly-productive farm whose grazing stock once produced prized wool used by one of New Zealand’s foremost carpet manufacturers has been placed on the market for sale.

Puketotara, near Huntly in the Waikato, was previously owned by Douglas Bremner – the businessman who founded the legendary Bremworth Carpet brand in 1959. Wool from the Drysdale sheep farmed at Bremner’s Puketotara farm was used in the production of quality carpet manufactured at the company’s mill in South Auckland.

The Bremner family sold the property in 1989, and soon after it was converted into an intensive breeding and finishing farm – stocking beef and sheep and producing cash crops.. . 


Rural round-up

March 21, 2019

Shareholders say sale was inevitable – Brendon McMahon:

The possible sale of Westland Milk Products to China is a ”sad day” for the West Coast but necessary to save the business, a sample of farmer-shareholders said yesterday.

The Hokitika dairy co-operative, praised for years for retaining its independence in the face of Fonterra amalgamations, is poised to be sold to the Chinese dairy giant Yili.

Harihari dairy farmer and former board member Jon Sullivan greeted the news yesterday morning with ”she’s gone”.

Farmers had been left with ”no choice” but to sell, he said. . . 

Fonterra Announces 2019 Interim Results And Updates on Its Portfolio And Strategic Reviews:

Fonterra Co-operative Group Limited today announced its 2019 Interim Results which show the Co-op has returned to profitability with a Net Profit After Tax (NPAT) of $80 million, but normalised Earnings Before Interest and Tax (EBIT) are down 29% on the same period last year to $323 million.

• Key numbers in Interim Results
o Sales volumes 10.7 billion liquid milk equivalents (LME), up 2%
o Revenue $9.7 billion, down 1%
o Normalised EBIT: $323 million, down 29%
o NPAT: $80 million, up 123%
o Total normalised gross margin: $1.5 billion
Ingredients Gross Margin: $791 million, down 9%
Consumer and Foodservice Gross Margin: $766 million, down 7%
o Full year forecast earnings: 15-25 cents per share
o Forecast Farmgate Milk Price: $6.30-$6.60 per kgMS
• Sales process started for Fonterra’s 50% share of DFE Pharma
• Completed the sale of Corporacion Inlaca to Mirona
• Update on full strategy review . . 

Fonterra to hit debt reduction target from asset sales – Paul McBeth:

 (BusinessDesk) – Fonterra Cooperative Group expects to slice $800 million from its debt ledger through the sale of assets already signalled for the block.

The world’s biggest dairy exporter is strengthening its balance sheet as part of its wider strategic review. That’s included the divestment of a range of assets no longer deemed central to the cooperative’s future, the latest of which was a 50 percent stake in DFE Pharma – a joint venture with FrieslandCampina which supplies bulking agents, or excipients, in medicines including tablets and inhalers.

Fonterra has already announced plans to sell ice-cream maker Tip Top, with investment bank First NZ Capital receiving final bids earlier this month. It’s also considering its options for its 18.8 percent stake in Beingmate Baby & Child Food. . . 

Comforting news for dairy farmers as companies report results and the world price rises again – Point of Order:

Encouraging signs emerged this week that key elements in the structure of NZ’s largest export industry are whipping themselves back into the shape they should be.

The giant  co-op  Fonterra  has  gone back  into the  black  with a net profit of $80 million in the  first half,  after previously recording  a  net  loss of  $186m.

Meanwhile Westland Milk Products, NZ’s second biggest dairy co-op, is in line to be  sold  to China’s biggest  dairy company,  Yili,  in  a $588m  transaction that would inject nearly half a million  dollars into the operations of  each  of its  suppliers. . . 

Fonterra’s culture change– Craig Hickman:

Is it just me or is Fonterra undergoing a remarkably rapid culture shift in a very short space of time?

Last year I attended the Ashburton leg of the Fonterra Financial Results Roadshow: quite apart from the delicious lunch and sneak preview of the new Whittaker’s ice cream, it was a chance to hear then interim-CEO Miles Hurrell  and new board chair John Monaghan deal with the unpleasant reality of Fonterra’s first ever financial loss.

Miles especially came across as humble, honest and realistic, and those are attributes in direct contrast to the brash and overly optimistic Fonterra leadership we are used to seeing.  . . 

Interim Results support the need for fundamental change :

The Fonterra Shareholders’ Council supports today’s acknowledgement that fundamental change is needed to improve the performance of the Co-operative.

“Fonterra’s farmer shareholders will agree that the results announced today are not where they should be,” says Council Chairman Duncan Coull. “The Shareholders’ Council backs the Board and Management’s initiative to thoroughly review strategy. A well defined and executed strategy focused on our farmers’ milk is critical to maintaining sustainable returns and an enduring co-operative for generations to come.” . . 

Significant investment in major growth projects for Synlait:

– NPAT half year profit of $37.3 million
– Re-confirmed guidance for canned infant formula volumes of 41,000 – 45,000 MT
– Manufacturing efficiencies have supported improved production and sales volumes
– Key growth projects including Synlait Pokeno and our Advanced Liquid Dairy Packaging Facility remain on track
– New growth opportunities in liquid milk, Talbot Forest Cheese and lactoferrin expansion
– New purpose ‘Doing Milk Differently for a Healthier World’ established. . . 

Hyslop elected to Beef + Lamb directorship – Sally Rae:

Irrigation New Zealand chairwoman Nicky Hyslop has ousted sitting Beef + Lamb New Zealand director Bill Wright.

She beat Mr Wright, a Cave farmer, by a margin of 1808 votes in the recent Central South Island director election.

Mrs Hyslop and her husband Jonty farm Levels Estate, an intensive sheep, beef and arable property on the outskirts of Timaru.

Mr Wright was elected in 2016, having previously been chairman of the B+LNZ Central South Island Farmer Council for six years. . . 

Urban-fringe kiwifruit orchard with growth potential placed on the market for sale:

One of closest commercial kiwifruit orchards to Auckland’s urban boundary – with potential to treble its production capacity – been placed on the market for sale.

Known as MacLachlan Orchard, the 12.2-hectare property at 90 Mullins Road in Ardmore is planted on flat land, and is forecast to produce some 42,000 trays of fruit in the current season.

The orchard’s 3.3 canopy hectares of productive land comprises some 2.29-canopy hectares of the Hayward green kiwifruit variety and 1.07 canopy hectares of the G3 gold kiwifruit strain picked off vines which were grafted some six years ago. . . 


Rural round-up

March 1, 2019

Govt warned over loaning WMP $10m :

The Government was warned that loaning Westland Milk Products $10 million may set a precedent to other companies that they could turn to the Government when they could not get a loan from the bank.

In a briefing to Finance Minister Grant Robertson in September last year, released on the Treasury’s website this afternoon, Treasury officials said the decision to loan Westland the money should be deferred.

Despite this, two months later Regional Economic Development Minister Shane Jones announced that $9.9 million would be allocated to the South Island dairy co-op. . .

Fund farmers for the public benefits that come from their land – Mike Foley:

 Imagine if Australia’s private landholders, who manage half the country’s landmass, were investing significant funds into climate change reduction and environmental improvements.

That’s the scenario a cross-industry coalition of agricultural, forestry and environment groups are working towards, using the lead-up to the federal election to argue for policy change which could reimburse farmers for the public benefits delivered by their land management outcomes. . .

Fonterra’s milk-price news is soured by chairman’s critique of the company’s earning performance  – Point of Order:

At last a ray of sunlight into the country’s cowsheds: giant dairy co-op Fonterra has lifted its forecast farmgate milk price to $6.30-$6.60kg/MS, up from $6-$6.30, on the back of strong global demand.

The good news extends to next season, with ANZ economists predicting – because dairy commodity prices are improving more quickly than expected – the forecast for 2019-20 could go as high as $7.30kg/MS.

And there is something else Fonterra suppliers might get a bit of a glow from: the recognition by Fonterra’s top brass that the co-op has not been performing anywhere near where it should be. They’ll be looking for a sharp improvement, even if the co-op has a long way to go to match the achievements of smaller outfits like A2 Milk and Synlait. . . 

Fonterra Fund units hit record low – Rebecca Howard:

(BusinessDesk) – Units in the Fonterra Shareholders’ Fund hit a record low after the dairy cooperative cut its forecast earnings and said it won’t pay an interim dividend.

Fonterra downgraded its earnings forecast to 15-25 cents per share from a previous forecast of 25-35 cents per share, blaming the increased milk price which saw it hike the farmgate price to its supplier-shareholders.

The downgrade implies annual earnings of between $242-403 million in the year ending July, compared to the earlier projection of $403-564 million. . .

Fonterra to explore opportunities in complementary nutrition:

Fonterra has taken a stake in Motif Ingredients, a US-based food ingredients company that develops and commercialises bio-engineered animal and food ingredients. 

Fonterra joins Ginkgo Bioworks, Breakthrough Energy Ventures, Louis Dreyfus Companies and Viking Global Investors.

Judith Swales, head of Fonterra’s Global Consumer and Foodservice business, says the move is part of the Co-operative’s commitment to its farmer-owners to stay at the forefront of innovation to understand and meet the changing preferences of consumers. While the terms will not be disclosed, Fonterra’s investment represents a minority stake in the business. . . 

Ngāti Hine Forestry Trust Launches “Ngā Māhuri o Ngāti Hine”:

Twenty young men from Kaikohe and Moerewa are set to start their journey in the Forestry Industry as trainees on the new Ngā Māhuri o Ngāti Hine Mānuka Plantation Training Program.

This is the first part of a 2yr program funded by the Billion Tree fund through Te Uru Rākau and supported by the Ministry for Primary Industries Economic Development Unit. Ngāti Hine Forestry Trust is partnering with Johnson Contractors LTD to deliver a “learn while you earn” approach to L2 Forestry Training.

Ngāti Hine Forestry Trust Chair, Pita Tipene says “Ngā Māhuri o Ngāti Hine means the saplings of Ngāti Hine; this is an industry training program which embodies the kaupapa of Ngāti Hine Forestry Trust Mission – He Ringa Ahuwhenua, He Hanga Mahi, to actively grow our assets. These akonga (learners) are our hapū and community assets”. . . 


Rural round-up

February 22, 2019

Guy Trafford assesses how the Tax Working Group report would change signals to farmers, and how they are likely to respond – Guy Trafford:

Given the signals that have been coming out from the Tax Working Group over the last few months there haven’t been too many surprises as to what was revealed today. That may, probably will, come after the politicians have had their play with it.

From a farming perspective there are some pluses and minuses.

Succession planning
The roll over clause is attractive, but liable to alter land/business selling behaviour. It is only available as a succession tool in the event of the assets being passed on after the death. It is then made a liability in the event of the next generation deciding to sell at which point the value goes back to 2021 or whenever the older generation first took over the land. . . 

Grass on the A2 side of the dairy fence is looking greener – and the profits plusher – Point of Order:

The  contrasting   fortunes of  Fonterra  and  A2 Milk came into the  spotlight   this  week,  after the  latter  reported a  startling 55%  rise in  half-year net profit  to  $152m.  Fonterra  shareholders will be ruefelly recalling  their  company’s  performance last year  when  it  reported its  first-ever  net  loss  of  $196m.

A2 Milk  shareholders  are  marching to a  very  different  tune.  Despite  one market  analyst  reckoning its share price had  become over-priced, buyers  pushed  it up  by  more than  a dollar to  $13.95  as they absorbed  news  of   strong sales growth in all key product segments – infant formula, liquid milk and milk powders. . . 

Fatty milk Jersey cows in demand – Yvonne O’Hara:

”Fat is back” and no longer the ”ogre” it used to be, and that is good news for Jerseys as they have a higher fat content relative to protein than many other breeds.

DairyNZ’s New Zealand Animal Evaluation Unit (NZAEL) released its annual Economic Values (EV) index last week to reflect the increased global demand for high fat dairy products, compared to protein.

Economic Values is an estimate of a trait’s value to a dairy farmer’s production and profitability and contributes to cattle breeding worth (BW). . . 

LIC welcomes Fonterra’s a2 announcement:

The farmer-owned co-operative, which breeds up to 80% of the national dairy herd, says this increase in supply matches the demand it has experienced for its A2 genetics and testing services.

Last year, the co-operative introduced dedicated A2 bull teams and extended its test offering in anticipation of Fonterra’s next move with The a2 Milk Company.

LIC’s General Manager NZ Markets, Malcolm Ellis, who is also a Fonterra shareholder and farm owner, comments:

Fonterra scours world for $800m cash injection – Hugh Stringleman:

Where in the world will Fonterra get $800 million to reduce its debt while returning to profitability and making enough money to pay a good dividend on the $6 billion dairy farmers have invested in the co-operative? Hugh Stringleman looks for answers.

March 20 looms as the next milestone in Fonterra’s return to financial health and wellbeing when it declares first-half results for the 2019 year.

It will also say where asset sales, joint ventures and partnerships will be made or amended to improve the balance sheet. . .

Kiwifruit sector front-foots campaign to find pickers:

The kiwifruit industry is pulling out all the stops to make sure the 2019 harvest, which starts mid-March, isn’t short of workers – ensuring that quality Zespri kiwifruit is sent to overseas customers in premium condition.

New Zealand Kiwifruit Growers Incorporated (NZKGI) Chief Executive Officer Nikki Johnson says the amount of green and gold kiwifruit on the vines is forecast to be even higher than last year’s harvest, meaning around 18,000 workers will be needed. “Last year, the harvest was at least 1,200 workers short at the peak – we don’t want a repeat of that.” . . 

Central Districts Field Days has something for everyone:

More than 26,000 people are expected to flock to Manfeild in Feilding this month for New Zealand’s largest regional agricultural event, Central Districts Field Days.

Now in its 26th year, the 2019 event has plenty to offer all – from farmers and foodies to tech heads and townies.

“We’re really excited about this year’s event,” says Stuff Events & Sponsorship Director David Blackwell. “There are a record number of exhibitors and we have some great new areas and activities that are sure to make this year’s Central Districts Field Days a community event to remember.” . . 

Give it a go” – Bay or Plenty Young Grower of the Year  :

Alex Ashe, a technical advisor at Farmlands Te Puna, was named Bay of Plenty’s Young Fruit Grower for 2019 at an awards dinner in Tauranga last night.

The practical competition took place last Saturday, 9 February, at Te Puke Showgrounds, where the eight competitors tested their skills and ability to run a successful orchard in a series of challenges. These were followed by a speech competition discussing future disruptors to horticulture at the gala dinner last night. . .

Wine survey reveals profit, innovation and price on the up :

For only the third time in the history of the annual survey, all five winery tiers featured profitable results in 2018

Survey results indicate a positive correlation between innovation and financial performance.

2018 saw a 1.8 percent lift in average prices received by Kiwi wineries. . .

Veganism is on the rise, but experts say the cons of the diet outweigh the pros – Martin Cohen and Frederic Leroy:

After decades in which the number of people choosing to cut out meat from their diet has steadily increased, 2019 is set to be the year the world changes the way that it eats. Or at least, that’s the ambitious aim of a major campaign under the umbrella of an organisation simply called EAT. The core message is to discourage meat and dairy, seen as part of an “over-consumption of protein” – and specifically to target consumption of beef.

The push comes at a time when consumer behaviour already seems to be shifting. In the three years following 2014, according to research firm GlobalData, there was a six-fold increase in people identifying as vegans in the US, a huge rise – albeit from a very low base. It’s a similar story in the UK, where the number of vegans has increased by 350 per cent, compared to a decade ago, at least according to research commissioned by the Vegan Society. . . 

 


Rural round-up

December 21, 2018

Taratahi agri training operator in interim liquidation – Paul McBeth:

(BusinessDesk) – The Taratahi Agricultural Training Centre has been placed into interim liquidation at the request of its board of trustees as declining student numbers saw its funding drop faster than it could cut costs.

The High Court yesterday appointed David Ruscoe and Russell Moore of Grant Thornton as interim liquidators after the board sought to protect the position of its staff, students, creditors and other stakeholders, the accounting firm said.

Taratahi is a private training establishment, employing 250 staff, and educating 2,850 students this year. It owns and manages eight farms across the country. . . 

IrrigationNZ welcomes new chief executive:

IrrigationNZ has appointed Elizabeth Soal as its new Chief Executive.

“IrrigationNZ has recently adopted a new strategy which focuses on creating an environment for the responsible use of water for food production. As part of the strategy we will be focusing on advocacy, encouraging innovation through sharing ideas and adopting new technology, developing a robust information base, bringing the irrigation sector, researchers and decision makers together to make better decisions for our future and creating world‑leading irrigation standards,” says Nicky Hyslop, IrrigationNZ Board Chair.

“Elizabeth has a strong background in water management, law and policy and she will help contribute to all of these goals but she is particularly well qualified to contribute to national discussions as we seek to achieve solutions to complex issues around water allocation which result in good outcomes for both communities and the environment.” . . 

Feds welcome new IrrigationNZ chief executive:

Federated Farmers welcomes Elizabeth Soal as the new chief executive of Irrigation New Zealand.

Federated Farmers maintains an excellent working relationship with Irrigation New Zealand,” Feds water and environment spokesperson Chris Allen says.

Elizabeth has the credentials and background, including her strategy and policy work for the Waitaki Irrigators Collective, to help ensure INZ continues its excellent work.” . .

Federated Farmers disputes E Coli claims – Eric Frykberg:

There is no proof that E. Coli found in three Canterbury rivers came from cows, according to Federated Farmers.

Research commissioned by Fish and Game found dangerous pathogens in three Canterbury rivers – the Ashley, Selwyn and Rangitata.

Fish and Game insisted the cause was leaching from dairy farms.

But Federated Farmers water spokesperson Chris Allen said the problem could be caused by wildlife, or human activity, as well as from animals. . . 

Research suggests we should take a harder look at the benefits of organic foods – Point of Order:

The Green Party’s food policy may need revisiting, in the light of research published in the past week.

The policy was introduced in May 2017 by Green Party MP Mojo Mathers, who lost her list place in Parliament at the general election.

How we produce, distribute and consume food is of critical importance to growing resilient healthy communities, minimising our ecological footprint and maintaining a
stable economy, she said.  That’s why food policy lies at the heart of Green policy. . . 

Reflections on the year that was – Allan Barber:

From a New Zealand domestic perspective the attempt to eradicate Mycoplasma Bovis has had the biggest impact on farming, most of it focused on the relatively small number of properties forced to cull their entire herd, some of it directed at those properties under surveillance or Notice of Direction, and some of it on the agricultural service industry, including meat processors, cartage contractors, stock agents and saleyards, as well as calf clubs and A&P shows.

MPI is cautiously optimistic the disease can be eradicated which would be the first time any country has achieved such an outcome. However there is still plenty of water to flow under the bridge before anyone can say with confidence that the hitherto impossible has been achieved. 2019 will almost certainly be the year we know for certain, one way or the other. . . 

Guy Trafford finishes 2018 with a GDT review, news of a new Fish & Game river survey, calling out plant-based-milk, and an update on the MPB eradication – Guy Trafford:

An ever so slight increase in the Global Dairy Trade price for whole milk powder with a +0.3% lift. It may not put much of a smile on farmers faces but at least it is a not a drop.

Overall the GDT went up by +1.7% with both butter and cheddar making gains with lifts of +4.9% and +2.2% respectively so not such a poor result. With this now being the second – be they small – lift in a row and we have to go back almost 12 months before we had a repeat of two consecutive sales lifting. Dairy Futures had predicted a higher 3% lift in WMP for this period and with volumes sold down 0.7% on the previous sale, which was also down, the remainder of the season still looks precarious. The next sale is on the 2nd of January 2019. . . 

New captain for 2019 Meat Blacks:

One of the final jobs of 2018 is to take a look at the 2019 Meat Blacks team that will lead the sector next year.

There haven’t been too many adjustments to make, though the sector has had a couple of big retirements from the leadership, lock Sir Graeme Harrison (ANZCO) and number eight James Parsons (B+LNZ Ltd) have departed this year. Linesman Martyn Dunne also retired from MPI and has been replaced by Ray Smith, fresh from Corrections (Ed: appropriately!).

As a result, we have a new captain Murray Taggart (Alliance), promoted from vice-captain, and new vice-captain Tony Egan (Greenlea Premier Meats) to lead the team. . . 

T&G Global profit dented by cheaper tomatoes, small grape harvest  – Paul McBeth:

(BusinessDesk) – T&G Global says its annual profit will more than halve this year after cheaper tomatoes and a weather-affected grape harvest in Peru dented earnings.

Net profit will be $8-10 million this calendar year, down from $22.6 million in 2017, it said in a statement.

Lower tomato prices affected T&G’s covered crops unit while its Peru grapes division dealt with a smaller harvest, it said. . .


Rural round-up

December 13, 2018

Bill’s passage clears way for Dam construction:

The passing of the Tasman District Council (Waimea Water Augmentation Scheme) Bill has cleared the way for the construction to begin on the largest dam to be built in New Zealand for more than 20 years, Nelson MP Nick Smith says.

“The Bill passed by 112 – 8 votes and clears the way for a sustainable solution to the regions long standing water problems.

“The passage of this Bill concludes a 17-year tortuous process for developing and gaining approval for a sustainable solution for the regions water problems. This Bill resolves the last issue of access to the conservation and LINZ land. . . 

Govt adopts National’s Bill to stop livestock rustling:

Rangitikei MP Ian McKelvie is pleased that his Sentencing (Livestock Rustling) Amendment Members Bill has been adopted by the Government as a Supplementary Order Paper on the Crimes Amendment Bill.

“Stock rustling is a crime that cuts to the heart of many rural families and the farming community.

“Theft of livestock from farms or property is estimated to cost the farming community over $120 million a year. More recently, the risk to farms of Mycoplasma bovis spreading through stock theft has added strength to the call to take action. . . 

Something festive for Fonterra farmers? A hint of solace would be a start… – Point of Order:

Fonterra’s  suppliers will be choking on their  Xmas  rations, as they  digest the  price  blows  the co-op  has delivered.  First,  the dairy giant has  revised down  its  forecast milk payout  range  for the season to $6-$6.30 from the  earlier  $6.25-$6.50, and, second,  it is clawing back  some of the $4.15/kg  advance payment  rate.

Farmers  in  January will be paid  $4/kg for the  milk they supplied in  December plus the  co-op  is  clawing  back  15c/kg for all the  milk  supplied   between  June and November.

It  is  not   surprising that farmers   with  costs of  production  running   at  or above  $6/kg  are  reported to  be  “shocked”  and  “angry”.   Even those  efficient  operators   who have  lower  operating costs  won’t be happy  with   Fonterra  saying it  “appreciates”  the budgeting impact  the updated $4 advance rate will have on farmers in  January.  . . 

The facts about nitrogen in horticulture – Mike Chapman:

Stuff recently gave space to an opinion piece from Glen Herud, a dairy farmer, which had a number of inaccurate references to the use of nitrogen in horticulture and horticulture practices in general (Stuff, December 4, 2018).

 It is important to note, the primary industries are working together to address both the real and the perceived impacts of food production on the environment. At Horticulture New Zealand, we are sitting down and talking to key Government Ministers and their officials from the relevant government agencies to look at the best ways to clean up waterways and address climate change. This is how the best policies will continue to be made.

 In his opinion piece, Mr Herud’s numbers and references to research are unsubstantiated. I don’t want this to be a science class, but there is a lot of misinformation about nitrogen being spread around and it is essential to deal in facts, backed by science. . . 

Getting a buzz out of dairying – Samantha Tennent,:

Michael McCombs has had success by putting himself out therein the NZ Dairy Industry Awards, FMG Young Farmer of the Year contest and the Young Farmers Excellence Awards just by doing his thing and loving the journey along the way. Samantha Tennent reports.

A geography class trip sealed the deal for Michael McCombs  – he knew dairy farming was where he wanted to be. He grew up in Upper Hutt, attending Upper Hutt College and from a young age had always planned to become a farmer.

It was a 220-cow farm near Carterton he’d visited with school and thought to himself he’d love to work there.  The following summer holidays he did. It was a once-a-day herd and the owner, Dave Hodder, recommended Michael look at the Taratahi training farm.

“I wasn’t enjoying school and was looking at my options. I landed a spot on the training farm so left school at the end of year 11.” . . 

Milmeq sale expected to expand service offering:

Privately-held New Zealand engineering company Milmeq Limited, a designer and manufacturer of meat processing equipment, will be split and sold in the coming months, but it doesn’t mean the end of the brand. An agreement was signed at the end of last week for the sale of Milmeq’s chilling and freezing capability to New Zealand-listed company Mercer Group Limited, effective from 1 March 2019.

Chairman Ralph Marshall describes the sale as a good move for staff, customers and suppliers.

“Being purchased by a publicly-listed company, with a range of complementary products, positions Milmeq equipment well for future growth. We have been nimble over the years, always innovating to meet market needs, but we anticipate this innovation will further accelerate under the new owners.” . . 


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