Rural round-up

November 6, 2018

Why Fonterra’ farmers should be wondering what the Irish could teach us – Point of Order:

It’s a critical week for the country’s largest company, Fonterra, which has to find a new direction after shipping out its chief executive, Theo Spierings, writing off more than $1.5bn from its balance sheet, and posting its first loss in its 17-year history.

Meanwhile, back on the farm, Fonterra’s suppliers are absorbing payout downgrades as well as a slump in dairy farm prices.

At the same time they are seeing the valuations of other companies in the dairy industry—notably A2 Milk and Synlait— soaring on the NZ sharemarket. . . 

Merinos, matagouri and moving on – Sally Rae:

 The Upper Waitaki has historically been known as the land of Munros, merinos and matagouri.

For more than a century, the Munro family have farmed Rostriever Run, a high country property alongside what is now the Otematata township.

But their roots in the area dated back to the 1860s, when William and Lavannah Munro first arrived in the district. In latter years, Rostriever has been farmed in partnership by three brothers — John, Ian and the late Ronnie — and their families.

But change is in the wind as the family have decided to put the pastoral lease up for sale. . . 

Wool group takes blanket approach – Annette Scott:

A working group tasked with seizing opportunities to create a sustainable and profitable wool industry will have an action plan to revitalise the languishing sector by the end of the year.

The working group made up of 20 wool producers, processors and wider industry stakeholders will continue the momentum of the Wool Industry Summit initiated by Agriculture Minister Damien O’Connor in July in an attempt to move the industry forward with a new purpose and a fresh plan for action. . .

‘M. bovis’ action group vying for national award – Sally Brooker:

A group set up to help farmers stave off Mycoplasma bovis is vying for a national award.

Morven dairy farmer Hugh Le Fleming and Veterinary Centre Oamaru created the Morven Action Group to find pragmatic ways for farmers to safeguard their livestock from the bacterial cattle disease.

It was discovered for the first time in New Zealand on a Morven dairy farm in July last year. The vets and farmers sought best practice information, from which they compiled a ”Top 11 Checklist and Biosecurity Action Plan”.

It could be used for other potential biosecurity incursions as well as M. bovis. . .

Targeted share offer and buy-back strengthens ownership and alignment :

Zespri has made good progress in strengthening alignment and grower ownership and control of the company through a targeted share offer and buy-back programme.

The offer closed on 19 October and Zespri has accepted 427 applications to purchase over 12 million shares for a total of over $95 million. Participation was open to growers who do not own shares and to growers who hold less than one share per tray of their production. Over half of the applications were from previously unshared growers and the percentage of total shares in Zespri held by growers has increased to 85 percent.

Asparagus on a roll:

One of the great delights of New Zealand’s spring is asparagus rolled in fresh, white bread; steamed and served with a little butter; or juicy and delicious from the barbecue, says Mike Arnold, Chairman of the New Zealand Asparagus Council.

“The weather has been kind to us and the quality and taste of New Zealand grown asparagus is excellent this season, but it is going to be a relatively short season so people should start enjoying asparagus now. We expect asparagus harvesting to finish early to mid-December,” says Mike Arnold. . . 


Rural round-up

October 11, 2018

Fonterra is in a fix but farmers should beware of what happens when the Govt steps in … – Point of Order:

“Govt won’t fix Fonterra’s problems” – so ran  the  strapline  on  the  NZ Herald’s  weekly  “The Business”  last  Friday.

And  thousands   of  Fonterra’s  farmer-suppliers,  reading  the  article which quoted Agriculture Minister Damien  O’Connor,  almost  certainly would have sighed  with relief.

Who  would want   this   government  to  “fix”  their  industry?  Look what happened to  the   oil and  gas  exploration industry  after  Energy Resources  Minister   Megan Woods  applied  her  “fix”  to  it. . . 

NZ plays down threat to European agri interests in FTA talks – Paul McBeth:

(BusinessDesk) – New Zealand trade negotiators are trying to get their European counterparts to recognise that the nation’s agricultural exports are small-fry in comparison to the regional bloc’s farming sector.

The second round of free trade negotiations between New Zealand and the EU is underway in Wellington, with 31 European officials in the capital to make progress in a deal politicians say they’re keen to fast-track. In a 90-minute public forum, the chief negotiators – Peter Berz for the EU and Martin Harvey of the Ministry of Foreign Affairs and Trade – said there was a lot of commonality between the parties, but that agriculture is a sticking point.  . .

Breakthrough technology could save dairy industry millions:

A new device that detects processing losses in dairy plants could save the industry millions of dollars a year and help prevent pollutants from entering waterways.

Lincoln University-owned research and development company, Lincoln Agritech Ltd, developed the breakthrough technology and it was then commercialised by Christchurch-based start-up company, CertusBio.

The result is a robust, automated biosensor capable of continuous monitoring in commercial operating conditions. Known as Milk-Guard, the device uses a lactose-specific enzyme to measure the percentage of dairy products present in waste streams and processing lines
.. .

12 lessons from the Future of Farming Dialogue – Jamie Mackay:

What’s in store for the rural sector? Host of The Country radio show Jamie Mackay got a glimpse at the Bayer Future of Farming Dialogue conference in Düsseldorf and Amsterdam. Here’s what he discovered:

1)

Even though it was very much tempered by sitting much closer to the front than the back, 17 hours is a hell of a long time to be stuck on a plane.

The Auckland-Dubai direct flight is the third-longest commercial flight on the planet, behind Auckland-Doha and Perth-London.

2)

The world faces a food crisis. How to feed a potential population of 10 billion people by 2050? In 1960 we had more than one acre (0.4 ha) of arable land for every person on the planet. Today that number is less than half that. Many of our most productive soils now grow only houses. . . 

 

Multi-pronged approach critical to successful environment strategy – Allan Barber:

Since announcing its environment strategy in May, the Beef + Lamb New Zealand team responsible for developing the plans, processes and tools to help farmers achieve the ambitious goals of being carbon neutral by 2050 and every farm having an active farm plan by 2021 has been working flat out to get the right farm planning systems in place. The strategy identifies four areas of focus – cleaner water, carbon neutrality, thriving biodiversity and healthy productive soils – with their own specific goals and a detailed implementation plan, supported by a series of what are termed ‘foundations’.

Initially there are two foundations which explicitly rely on the participation of individual farmers. The first is helping farmers navigate the myriad of farm environment plans out there so they can identify the one that complies with local regulations and is best suited to help them document their individual on farm environment plan; the second foundation will encourage the establishment and facilitation of catchment communities which are relevant to the farmers’ local areas.  . . 

CP Wool announces exclusive partnership to distribute NZ wool carpets in US:

Premium New Zealand wool carpets and rugs will soon be available to thousands more US consumers under a new distribution partnership between Carrfields Primary Wool (CP Wool) and J Mish Mills.

Under the agreement, leading carpet business J Mish will design and manufacture carpets and rugs from yarn grown and spun in New Zealand. The products will then be distributed throughout the US via J Mish’s large network of dealer and designer relationships. . . 

Feral sheep’s wool could set world record

A feral ewe captured on a remote bluff will have her first brush with the shears this weekend and organisers say she could have the longest wool in the world.

The crossbred sheep was caught in the Mapiu district, south of Te Kuiti, by Amie Ritchie and Carla Clark.

Named Suzy by her captors, the ewe is not believed to have been shorn before.  However, that will change at The Wool Shed, the national museum of sheep and shearing, in Masterton on Sunday. . . 

Why we need a real forestry strategy – Rod Oram:

We’re an odd country when it comes to trees. We have a lot of them but no overarching long-term policy for them. Consequently, our short-term forestry decisions deliver some adverse outcomes, both economic and environmental.

And on our current course it’s going to get worse. We’re racing to plant one billion trees in a decade to help us meet our climate commitments (as last week’s column discussed), develop regional economies, reduce soil erosion, improve water quality, and enhance biodiversity such as helping to save native birds from extinction.

Trees could do all of that for us. But only if they can flourish in healthy ecosystems. To do so, they need all the help we can give them over three or four human generations. Instead, we’re working in silos over just a decade or two, the longest time most commercial enterprises can wait for an investment to pay off. . .

Major investors back medicinal cannabis with stake in Helius:

Cannabis-focused biotechnology company, Helius Therapeutics, announced today it has completed its $15m capital raise and is now backed by a small group of New Zealand investors, led by tech entrepreneur, Guy Haddleton.

Haddleton says “Helius Therapeutics has all the features we seek in a high-potential investment. The company has a clear and large vision, extraordinary talent and deep go-to-market experience. More importantly, Helius will improve significantly the quality of life for hundreds of thousands of New Zealanders”. . .


Rural round-up

September 21, 2018

2019 Zanda McDonald Award shortlist announced: 

Six young agriculture professionals from both sides of the Tasman have been announced for the prestigious badge of honour for the primary industry, the Zanda McDonald Award.

Now in its fifth year, the award recognises innovative young professionals in agriculture from across Australasia. Five Australians and one New Zealander have been selected as finalists for the 2019 award based on their passion for agriculture, strong leadership skills, and their vision for the primary industry.

The shortlist is made up by Australians Alice Mabin 32, owner of Alice Mabin Pty Ltd in Linthorpe Queensland, Harry Kelly, 26, Manager of Mooramook Pastoral Co. in Caramut Victoria, Luke Evans, 28, Station Manager of Cleveland Agriculture in Tennant Creek Northern Territory, Nick Boshammer, 30, Director of NBG Holdings Pty Ltd in Chinchilla Queensland, and Shannon Landmark, 27, Co-ordinator of the Northern Genomics Project of the University of Queensland. Kiwi Grant McNaughton, 34, Managing Director of McNaughton Farms in Oamaru, North Otago rounds off the six. . . 

Kiwi farmers take on growing South American super food – Catherine Groenestein:

Growing Taranaki’s first commercial crop of quinoa was challenge enough, but finding a combine harvester in a district devoted to dairying proved tougher.

Luckily for Hamish and Kate Dunlop of Hāwera, they found someone who owns the only suitable machine in the region living just down the road.

The couple’s journey into growing a crop native to South America on their sheep and beef farm began with a discussion about whether quinoa, a food the health-conscious family was already familiar with, would grow in South Taranaki, Kate said. . .

 The grass on the far side of the fence will look much greener for Fonterra farmers – Point of Order:

It  must have felt  like  salt being rubbed into  their  financial wounds   for Fonterra’s farmer-shareholders, when Synlait  Milk this week  reported  its  net profit  soared  89%  to  $74.6m.   Fonterra’s  mob   saw  their  co-op  notch  up  a  loss of  $196m, and  with prices  at GDT auctions trending down,  they may also have to accept a trim  to the forecast milk price.

Where  Fonterra  talks of   slimming its  portfolio,  Synlait  is still investing  in expansion.

In the latest year Synlait has been working on new and expanded plants in Dunsandel, Auckland and Pokeno as well as a research and development centre in Palmerston North. . .

Much more mozzarella – Chris Tobin:

Cutting-edge technology used in Fonterra’s new mozzarella line at its Clandeboye plant is the first of its kind in the world, and being kept under wraps.

”It’s the result of years of investment into R&D and hard work at the Fonterra Research and Development Centre,” Clandeboye cheese plant manager Chris Turner said.

”The work has been supported in part by the Primary Growth Partnership between the Government, Fonterra and Dairy NZ.

”Other than that we can’t tell you too much more. . .

Fonterra steers clear of consultants after paying millions to McKinseys – Nikki Mandow:

(BusinessDesk) – Fonterra Cooperative Group will not use external consultants for its newly-announced everything-on-the-table asset review, the dairy processor says. This follows allegations it paid up to $100 million a year between 2015 and 2017 to global consultancy giant McKinsey as part of its “Velocity” cost-cutting and restructuring programme.

It also forked out millions of dollars in CEO and other staff bonuses as part of its Velocity Leadership Incentive scheme. . .

Balle and Coull to join Ballance Agri-Nutrients Board

Ballance Agri-Nutrients’ shareholders have chosen Dacey Balle and Duncan Coull from an unprecedented field of 19 candidates to join the Co-operative’s Board, representing the North Island.

Murray Taggart, who retired by rotation this year, was unopposed in the South Island Ward and re-elected to the Board – while the decisions of Gray Baldwin to not seek re-election and Donna Smit to step down in the North Island Ward, opened a rare opportunity to secure a governance role with a leading rural business. . .


Messier and messier

September 15, 2018

Former minister Clare Curran’s mismanagement has cost taxpayers $107,000.

Dumped chief technology officer candidate Derek Handley has been paid out more than $100,000 in compensation by the Government, Digital Services Minister Megan Woods has confirmed.

Woods said the Government had agreed to pay Handley compensation totalling $107,500 after deciding to put the recruitment process for the country’s first national chief technology officer on hold and “rethinking the role”. 

Woods issued the statement after Handley said the Government had reneged on a commitment to give him the job and paid him three months’ salary, and costs, as compensation.

Handley said he had decided not to keep the money, and would instead donate it towards a fund to support ideas, programmes and grants to tackle “digital inequality”.

Former communications minister Clare Curran resigned first from Cabinet and then as minister after it emerged she met Handley in February to discuss the job and then “omitted” to document the meeting in response to a parliamentary question.

Handley said he was “offered and accepted” the job – which had been billed as offering a salary of up to $400,000 plus a $100,000 travel budget – a month ago.

“Earlier this week I was deeply disappointed to learn that the Government will no longer follow through with their commitment and will not be making that appointment at this time.”  . .

 National’s State Services spokesperson Nick Smith sums it up:

. . .“The process around appointing a Chief Technology Officer has been a shambles from the beginning. It involved secret meetings and emails, the resignation of Minister Clare Curran and now we’re paying Derek Handley around $100,000 for a job he never even started.

“The Government must now come clean with the hidden emails from Clare Curran and the Prime Minister so we know the full story of how badly this was handled.

“The CTO is the flagship of the Government’s IT policy and was budgeted to cost the taxpayer over $500,000 per year. Now if it still goes ahead we can add a pay out of over $100,000 because of the Government’s incompetence.    . .

Point of Order calls this a disgraceful  saga, one  which  has  few parallels  in the history  of state-sector  appointments.

Curran’s resignation as a minister ought to have put this particular mess behind the government, but the mess just keeps getting messier and more expensive.

 


Rural round-up

August 27, 2018

Plenty of advice for Fonterra’s bosses – but are our expectations too high? – Point of Order:

Dairy farmers  should be pleased with the  advice  liberally and freely tendered to Fonterra in the wake of the co-op’s board deciding to halt its international  search for a  new  CEO and instead,  with an  interim CEO,  Miles Hurrell, “pause and  assess  the  way   ahead”.

Fran  O’Sullivan,  Head of Business at NZME,  which publishes the  NZ  Herald, says appointing an interim chief executive to run New Zealand’s largest company is an admission of failure that should force Fonterra’s board to look hard at its own performance.  And she  concludes: . . 

Brexit opportunity: just don’t call it another free trade agreement – Point of Order:

LONDON CORRESPONDENT: Does New Zealand’s government understand the opportunity which Brexit presents? Are they and their advisers working tirelessly to realise it?

OK, difficult questions, not least because there are no binding decisions on the shape or timing of Brexit and these are likely to come in a final rush. But the underlying position is so positive that it would be a tremendous shame if New Zealand’s policy was not being shaped to take advantage of it.

Given the scorn critics are pouring on Britain’s post-Brexit trade prospects, the UK really needs an eye-catching trade deal to kick in on leaving. It would be a political coup, more than an economic one. The partner which Britain’s politicians think will deliver this reliably and quickly should get the most attention and the best terms. . .

Let’s open the gate to our young people:

The Primary ITO is challenging schools, school leavers and farmers to open the farm, garden, or orchard gate as this year’s “Got a Trade? Got it Made!” week highlights the huge potential in industry training for a primary sector career.

The Primary ITO (industry training organisation) leads the training in New Zealand’s largest export sector. It is taking part in this year’s “Got A Trade? Got It Made!” week to showcase the advantages of tertiary on-the-job education and to connect young New Zealanders to real employers in the primary industries. . . 

Horticulture Welcomes Major Biocontrol Milestone:

The New Zealand horticulture industry has welcomed the Environmental Protection Authority’s (EPA) decision allowing the release of a tiny Samurai wasp into New Zealand, if ever there was an incursion of the brown marmorated stink bug (BMSB).

BMSB Council Chair Alan Pollard applauded the outcome as a major milestone against one of the greatest threats to New Zealand’s horticultural industry and urban communities.

“The industry greatly appreciates the positive decision and acknowledges the consideration given by the EPA to the significant number of submissions made on the application. . . 

Horticulture levy votes successful:

Horticulture groups seeking levy renewals have all had votes of confidence from growers to continue the work of the industry good organisations Horticulture New Zealand, TomatoesNZ, Vegetables New Zealand, Process Vegetables New Zealand, and Onions New Zealand.

The individual groups’ levy referendums closed on 13 August and independent vote counting shows resounding support. The levy orders come up for renewal every six years. . . 

New programme to foster high value goat milk infant formula industry:

A new Primary Growth Partnership (PGP) programme launched today has its sights on growing a sustainable, high value goat milk infant formula industry in New Zealand.

Caprine Innovations NZ (CAPRINZ) is a five-year, $29.65 million PGP programme between the Ministry for Primary Industries (MPI) and Dairy Goat Co-operative (NZ) Ltd.

The end goals include improving the health and wellbeing of families, delivering a range of benefits such as growing research and farming capability, and increasing export revenue across the New Zealand dairy goat milk industry to $400 million per annum by 2023. . . 

Honey goes hi-tech: new tool has industry buzzing:

With New Zealand’s annual honey exports currently valued at $300 million and growing, a new web-based honey blending tool is set to save honey distributors significant amounts of time and money.

The Honey Blending Tool, developed by a team of scientists and data analysts at Hill Laboratories, allows honey distributors with large inventories to easily blend individual honeys to form a target blend to meet specific sales and export criteria.

New Zealand produces around 15,000 – 20,000 tonnes of honey each year. Most honey bought from a supermarket is blended honey. . . 

Decades of rural experience for new NZ Pork Chair:

NZ Pork has appointed former Southland MP Eric Roy as Chair of a new board of directors, as the industry-good body positions itself to face key challenges for New Zealand’s commercial pig farming industry.

Mr Roy, who has spent many decades working in the rural sector, was a six-term MP for the Awarua and Invercargill seats. During his time in Parliament, Mr Roy was a select committee chair of the Primary Production Select Committee, chairing the rewrite of New Zealand’s fisheries laws in what was a world first in sustainable management. . . 

Sheepmeat and beef levies to increase:

Beef + Lamb New Zealand’s (B+LNZ) Board has decided to proceed with the proposed increase in the sheepmeat and beef levies following significant support from farmers.

From 1 October 2018 the levy for sheepmeat will increase 10 cents to 70 cents per head and the beef levy by 80 cents to $5.20 per head. This is 0.4 per cent of the average slaughter value for prime steer/heifer, 0.7 per cent cull dairy cow, 0.7 per cent of lamb, and 1.1 per cent of mutton over the last three years. . . 

2018 Tonnellerie De Mercurey New Zealand Young Winemaker of the Year announced:

Marlborough’s Greg Lane was crowned the 2018 Tonnellerie de Mercurey New Zealand Young Winemaker of the Year in Auckland last night.

Lane, who is the brand winemaker for Grove Mill fought off some tough competition from three other young winemakers, representing both the North and South Island.

Runner up was Kelly Stuart, Assistant Winemaker for Cloudy Bay based in Marlborough.

Into its fourth year, the competition aims to promote the skills of the next generation of winemakers emerging in New Zealand. The four contestants had already battled it out in either the North or South Island regional finals, prior to taking part in yesterday’s final. . . 

10 things only a farmer’s wife would know – Emma Smith:

To some, being a farmer’s wife or partner sounds an idyllic lifestyle. A beautiful farmhouse to live in complete with Aga, rolling landscapes to admire and cute animals to nurture.

In today’s world women are at the forefront of managing farm enterprises and are sometimes doing so singlehandily.

The reality is a farmer’s other half needs to be patient, know the “lingo” and be the queen of multitasking. . . 


Rural round-up

August 26, 2018

NZAgbiz launches first electrolyte product:

Developed by NZAgbiz in conjunction with leading veterinary scientists, Novolyte has been formulated to replace fluids lost due to scouring, treat dehydration and exhaustion and help calves recover from stressors such as transportation.

NZAgbiz is a Fonterra business unit that manufactures livestock nutrition products using primarily Fonterra ingredients, and General Manager Greg Cate says Novolyte was the logical next step in their range of scientifically formulated animal health supplements.

“All NZAgbiz products are based on solid scientific evidence and we saw the need for a high-quality electrolyte replacement to help farmers raise calves that thrive,” says Cate. . . 

Farm plans reduce N loss:

Farming practices now piloted by Mid Canterbury dairy farmers Grant and Jan Early could show other New Zealand farmers how they can successfully reduce their environmental impacts.

Earlys’ Mayfield farm is one of a small group in the Forages for Reduced Nitrate Leaching project looking for ways to cut nitrogen losses.

They have so far achieved a 20% cut in one year on their dairy support farm. The research results are made available to help farmers adopt new practices. . .

Milking it: I”m a farmer and I’m a very lucky man: – Craig Hickman:

NZ is known for its dairy products, and is home to one of the biggest dairy companies in the world. In this Stuff special investigation, we examine how the price of milk is set and explore the industry behind our liquid asset.

OPINION: Someone recently asked me why I’m a farmer and I think it’s fair to say it was something of an accident; I don’t’ come from a farming background and I had only a vague notions of what it might be like having spent a few summer holidays working on a deer farm.

I broached the idea with my parents at the end of my sixth form year, saying I would like to skip my final year of college and go work on a dairy farm, ostensibly to earn enough money to put myself through university.

My father, ever the practical man, came back to me with a counter proposal; if the object of working for a year is to save money for university, why not do something that pays real money? . . 

Hill country going well – Peter Burke:

Beef + Lamb NZ director Kirsten Bryant is concerned about the perception that hill country farmers aren’t doing well. Bryant says she and her husband have three hill country farms and financially they have never done as well as they are doing now.

Their properties are returning 5% to 8% on capital. “I don’t know where this perception that hill country farming is not profitable has come from,” she told Rural News. “For a start, let’s not forget about hill country farms that this is where the lambs are bred.

So you start focusing on hill country farming as a negative and talking it down and soon you are going to lose your breeding ewes and total lamb production,” she says. . . 

First NZ company receives Medical Cannabis license:

Hikurangi Cannabis has become the first New Zealand company to secure a license to cultivate medicinal cannabis plants.

The license issued by the Ministry of Health enables Hikurangi to breed cannabis strains that can eventually be used in medicines.

Hikurangi has secured significant investment and will now start building high tech greenhouses and processing facilities near Ruatoria on the East Coast. Hikurangi has commissioned clinical trials to start next year for the first New Zealand made cannabis medicines. . .

A2 Milk reports an a1 result while scientists work on the health benefits – Point of Order:

Revenue up   68%, profit up 116% , cash  on hand up  280% …

Those annual results are the sort most  companies’ bosses  dream of.  They are certainly are the  kind  of  results  Fonterra’s  farmer-suppliers    are  not  likely  to  hear  from  the  co-op’s  board in  this lifetime.

But  for A2 Milk’s  shareholders  they are  real.   Reporting to shareholders  (who  indeed have had a  dream run  this year), the   company this week  said revenue  reached  $922.7m,  annual profit $195.7m,  and  the sales margin  was  31%,  up  from  26% . . 

NZ pipfruit industry heading for a record 2018 crop, MyFarm says – Tina Morrison:

(BusinessDesk) – New Zealand’s pipfruit industry is headed for a record crop this year as it benefits from favourable growing weather, low Northern Hemisphere stocks, market changes, premium varieties, and a weaker New Zealand dollar, according to a report published today by MyFarm Investments.

The vast majority of the 2018 apple crop has been picked and nearly 90 percent has been exported, said MyFarm head of investment research Con Williams, who joined New Zealand’s largest rural investment syndicator last month after eight years as ANZ Bank’s agri economist. Williams said the crop is expected to have increased by 5-6 percent from last year, registering a new all-time high. . . 

Red meat sector confident despite some headwinds – Allan Barber:

Since I attended the 2016 conference, having missed last year’s, several things have changed considerably: two years ago Donald Trump wasn’t President, Silver Fern Farms hadn’t concluded its capital raising with a Chinese investor, alternative proteins and non-meat burgers weren’t on the industry’s radar and there was little recognition of the need for a Red Meat Story.

This year the conference programme acknowledged these changes by focusing on disruption to global trade, the China influence, heightened consumer expectations, the effects of the digital revolution and the importance of building consumer trust by telling our story about product provenance, traceability and environmental credibility. The conference was very well attended by farmers, processors and service providers, all of whom were optimistic about meeting the challenges ahead of an industry which has faced many different threats to its survival in the past 140 years. . . 

Country Life rural wrap from around New Zealand:

Do you know what is happening on farms and orchards around New Zealand? Each week reporters from Country Life talk to rural people about what is happening around New Zealand. Here’s what they told us.

Northland
Younger cattle have been selling well coming into a spring market. An average-to-better yearling steer has been fetching $880 to $950 and decent heifers $800 to $860. Wednesday was one of the worst days this winter – cold and bleak with hail, thunder and lightning. Thursday was sunny and Friday sunnier.

Pukekohe
This weekend’s weather will be like the last – fine. Unfortunately, the work days have been wet. With few exceptions, growers have kept off their fields unless crops were ready to harvest. With heavy supplies of broccoli retailing at unprofitable prices, working in the rain and muddy fields would appear to be a waste of time. . .

Tariff turmoil in times of abundance – Tim Burrack:

U.S. crop export prices dropped like a rock last month, falling by more than 5 percent. That’s the fastest dive we’ve seen in seven years, according to a report issued on Tuesday by the Department of Labor.

Government figures are important for understanding trends, but they cover up a lot of individual stories.

So let me tell you what these export-price statistics have meant for my farm in Iowa, where I grow corn and soybeans and raise hogs. Or, to look at it another way, let me tell you about my farm’s financial snapshot.

We’re facing tariff turmoil in a time of abundance. . .

 

Cavalier turns to profit in 2018, sees continuing improvements in future years –  Tina Morrison:

(BusinessDesk) – Carpet-maker Cavalier Corp turned to an annual profit and improved its debt and cash balances as it benefits from the previous year’s restructuring.

The Papatoetoe-based company posted a net profit of $4.1 million in the year ended June 30, from a loss of $2.1 million a year earlier. That’s above the top end of its forecast range of $3.7 million to $4 million. . . 


Rural round-up

August 16, 2018

 A flow of “fresh air” – here’s hoping Fonterra’ s financial performance gets a good whiff – Point of Order:

Fonterra’s  latest move, appointing Miles Hurrell as interim CEO  “with immediate  effect”, has   sent  fresh rumbles  through the  dairy industry.

The  co-op’s  chairman John Monaghan, announcing the move,  spoke of the need  to  “breathe  some fresh  air  into the business”.

He is  not alone with this observation:  several  politicians  have been calling for just that – but  many of the  co-op’s 10,500 farmer-suppliers may be wondering  what exactly  a  blast of   “fresh air”  may do. . .

Animal tracking legislation to be debated under urgency – Gia Garrick:

Legislation to properly enforce the animal tracking guidelines, which were found to be hugely inadequate during the Mycoplasma bovis response, is to be debated under urgency tonight and through tomorrow.

It will mean farmers’ compliance with the National Animal Identification and Tracing scheme (NAIT) – the country’s cattle and deer tracking system – will be properly monitored.

Agriculture Minister Damien O’Connor said there would be penalties for those who did not comply.

“We will certainly have enforcement of these new guidelines, I can promise you that,” he said. . . 

Farmers encouraged to open homes to drought-hit Australians –  Esther Taunton:

Kiwi farmers are being urged to extend the hand of mateship to their drought-stricken Australian counterparts.

Federated Farmers national president Katie Milne said the organisation was working on ways to help farmers hit by severe drought across the Tasman.

Much of southeastern Australia is struggling with drought but conditions in New South Wales are the driest and most widespread since 1965.  . . 

Poorest performing iwi invested in large farms, ANZ report says – Tina Morrison:

(BusinessDesk) – The poorest performing iwi investment in recent years has come from farming, which is often favoured for cultural rather than economic considerations, according to the latest annual ‘Iwi Investment Insights’ report by ANZ Bank New Zealand.

In its 2018 annual ‘Te Tirohanga Whānui’ research report, ANZ evaluated the asset base of 34 iwi and hapū, finding the commercial assets of the combined group had increased by just over $1 billion, or 12 percent, to $5.4 billion since 2015. The report found the most common asset in the top quartile for underlying returns was the significant holdings in managed funds which have performed well in recent years. On the flip-side, most iwi/hapū in the lower quartile were actively managing large farms. . .

Raising triplets indoors works – Joanna Grigg:

It’s raining outside, again, but it’s not worrying these new lambs.

All 250 of Richard Dawkins’ triplet-bearing ewes get seven days or so indoors to adjust to supplementary feed, birth their lambs, bond and feed.

Then it’s out to the real world, albeit a nearby paddock with ad-lib clover and a watchful eye for that fading third lamb. . .

Sheep meats are in a sweet spot – Keith Woodford:

This year has been an exceptional year for many sheep farmers.  Lamb and mutton prices have been at record levels.

The key drivers have been increasing demand from China combined with lower exchange rates. Sales to Britain have slowed down, linked to a ‘buy British’ campaign over there. But that has not been enough to counter the overall good news story.

Sheep farmers are telling me that, for the first time in many years, sheep farming is fun again. The cash is coming through to upgrade tracks and other infrastructure. Venison prices have also been exceptional for those sheep farmers who also farm deer. Most sheep farmers also run beef cattle and they too have been paying well. . .

LIC’s Murray King named Co-operative Leader of the Year:

Farmer owned co-operative LIC is pleased to announce its board chairman Murray King has been named Co-operative Leader of the Year at the Co-operative Business NZ Awards 2018.

The annual award recognises those who have shown strong leadership and commitment to the co-operative sector.

A Nelson-based dairy farmer, Murray has a long-standing connection to LIC and the dairy farming community of the upper South Island. . .


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