Rural round-up

March 2, 2020

Global study to benchmark farms – Annette Scott:

A global study of regenerative agriculture is under way to identify chances to extract more value from sheep and beef exports.

Beef + Lamb is doing the study to understand the similarities and difference of regenerative agriculture to NZ farming practices.

The study will look at the opportunities for farmers and include a global consumer perspective to understand what potential there is for red meat exports.

B+LNZ chief executive Sam McIvor said with increasing interest in regenerative agriculture here and abroad, sheep and beef farmers want to lead in that space.  . . 

The wool industry is still facing challenges – Pam Tipa:

The wool industry continues to face challenges with depressed wool prices for a third year in a row, says Primary Wool Cooperative chair Janette Osborne. 

“Combined with increased shearing and associated costs this now means a net loss on wool for many farmers,” she says in the co-op’s annual report

“We are also seeing an overall gradual decline in total wool volumes with both lambs and ewes going to the works woolly and lower grade oddments including dags being used on farm for environmental work.” . . 

Meat Businesswomen to address World Meat Conference:

Global networking group, Meat Business Women are stepping onto the world stage as they accept an invitation to speak at the World Meat Congress (WMC) in Cancun, Mexico on June 12. 

Touted as the most influential and informative event on the global meat industry calendar, the WMC brings together approximately 1,000 international delegates to discuss issues and trends affecting meat and livestock organisation which are fundamental for sector outlook. 

Meat Business Women Chair, Laura Ryan says she’s delighted with the opportunity to speak directly about the group’s goals to an audience that can instigate change.  . . 

History has a habit of repeating itself – St John Craner:

NZ Ag yet again faces a number of fronts. Plant-based food, trade wars, geopolitical tensions, coronavirus, commodity cycles and climate. Yet we have options. We can diversify our markets.

China’s coronavirus is highlighting the need for us to ensure we’re not over-reliant on one market. Maybe China is the easy option? Either way they say: “when you choose easy life can be hard, when you choose hard life can be easy”.

There are many other countries in South East Asia (49 to be precise) who want our world-class produce like India, Malaysia, Taiwan, Philippines, Vietnam, Thailand, Lao, Indonesia, Cambodia and Myanmar. These countries’ economies are predicted to grow faster than China due to their own growing middle class who are earning higher incomes.  . . 

Farm societies have common issues – Ben Hancock:

This is the fifth and final in a series of articles written by the latest crop of Nuffield Scholars. This week Beef + Lamb insight and strategy analyst Ben Hancock looks at the possibility of farmers generating energy while combating climate change and being easier on the environment.

Farming the world over, as much as the context, production and scale vary, shows, as the saying goes, the more things change, the more they stay the same.

After nearly six months on the road of my Nuffield journey I was struck by the similarities across continents and farming systems. 

So many of the issues we face in New Zealand can be translated to our counterparts around the world.  . . 

Elderly UK farmers should be paid to retire, says Minister :

UK Environment Secretary, George Eustice has an unusual solution to improving the environment: paying farmers to retire.

Speaking at the National Farmers’ Union’s 2020 Conference this week, Eustice said that some veteran farmers are ‘standing in the way of change’, reports The Telegraph.

He said that paying veteran farmers a lump sum would enable them to ‘retire with dignity’. . .


Rural round-up

February 4, 2014

Risk in having all eggs in Fonterra basket:

Government analysis has pointed to weaknesses in the dairy industry, including putting all our eggs in the Fonterra basket.

A five-year Ministry of Business, Innovation and Employment project looking at the state of New Zealand’s food and beverage industry found growing strengths for our exports beyond dairy but also sounded a warning about our continued reliance on dairy.

According to the report, New Zealand is the ninth largest milk-producing country in the world and accounts for 2.4 percent of global milk production. Fonterra controls 88 percent of our milk supply and is the fourth-largest dairy company in the world by turnover and first by milk intake. . .

Grant helps student’s project – Letitia Atkinson:

A former Tauranga Boys’ College student is getting a $5000 scholarship to go towards a Bachelor of Science research project.

Zach McLean, who is currently studying at the University of Waikato, will take on a project that involves investigating genes associated with the genetic network regulating pluripotency in bovine embryos.

Pluripotent cells are able to produce all cell types in the body, and emerge during early pre-implantation development.

Zach will be working alongside Dr Bjorn Oback and the Reproductive Technologies group at AgResearch. . . .

Speed fencing record set:

A new world record has been established in speed fencing.

Bill Brewer and Simon Green erected 30 battens on a nine-wire fence in 11 minutes and 38 seconds at last week’s Grasslandz Agricultural Machinery Expo, at Ereka, in Waikato, to become inaugural world champions in the event.

The Taumarunui fencing contractors also won $1000 in prize money. . .

Honey of a job comes to an end – Sonia Beal:

Don Freeth scooted home for the last time on Friday, after almost 40 years working for Blenheim beekeeping company Bush J & Sons.

Mr Freeth, 73, has clocked up just under 108,000 kilometres on his 1968 Honda 50, most of which had been accumulated riding to and from work every day since he started there in October 1975.

“Sometimes I go in the car if the weather’s a bit crook, but other than that it’s every day,” he said.

Mr Freeth described himself as a “jack of all trades”, helping out with all aspects of the company’s beehive management including inspecting hives, packing honey, and queen-rearing, the method used to raise more queen bees. . .

Record profit for Primary Wool:

PRIMARY WOOL Cooperative’s profit of $1.9m for the 2013 financial year is the largest in the cooperative’s 39-history, says chairman, Bay de Lautour.

An average of two members per week joined the cooperative in 2013, growing to three members per week in the first four months of the 2014 financial year, de Lautour says.

The 2013 profit represents 71c a share and comes from Primary Wool Cooperative’s 50% share of Elders Primary Wool which de Lautour says has gained market share as farmers see the benefits of their wool being handled by an efficient broker and seeing half the profits returned to the 100% farmer owned cooperative. . . .

Timaru beauty declared top cow – Jill Galloway:

A cow from Timaru jazzed things up at last week’s Dairy Event, in Feilding, being named the best bovine beauty on show.

It was the Miss New Zealand of dairy cows at Manfeild Park on Thursday with the country’s best cows and calves all aiming to put their best hoof forward.

The Supreme 2014 All New Zealand Champion, or the top cow award, went to Fairview Dolman Jazz-ET, a 5 -year-old holstein friesian cow, from Timaru.

The judges deemed the South Island stunner “best in show”, topping all other cows in the competition. . . .

Strong Results at Karaka 2014:

New Zealand Bloodstock’s 88th National Yearling Sales Series drew to a close yesterday with increases posted across all key statistics as the hammer fell on the final of 1372 yearlings catalogued over six days of selling.

At the completion of Karaka 2014, the combined statistics across the Premier, Select and Festival Sales show consistent strength throughout the week to record an increased average, clearance and median, with 64 fewer horses sold compared to 2013. . .


Rural round-up

February 28, 2013

Fonterra Announces Plan To Support And Grow Milk Supply:

Fonterra announced today a five-point plan to give farmer shareholders more flexibility in managing their farm businesses in order to support and grow milk production to support the Co-operative’s growth strategy.

The plan includes:
1. A bonus issue of one additional share or unit for every 40 held on 12 April 2013.
2. A further Supply Offer enabling Fonterra shareholders to sell the economic rights of some of their shares into the Fonterra Shareholders’ Fund[1].
3. A Dividend Reinvestment plan enabling shareholders and unit holders to elect to receive dividends in the form of shares or units.
4. Flexible contracts to give new and growing farmers more time and options to fully back their milk production with Fonterra shares.
5. New opportunities for winter milk supply contracts in the upper North Island to fuel Fonterra’s new UHT plant at Waitoa. . .

Fonterra To Develop UHT Plant At Waitoa:

Fonterra today announced it will be investing more than $100 million in a new UHT milk processing plant at its Waitoa site in the Waikato.

Fonterra Chief Executive Officer Theo Spierings said the new plant would enable the co-operative to meet growing demand for UHT products in Asia.

“The new plant will enable us to increase our UHT production by 100 per cent over the next few years. The plant will include five new UHT lines that will produce a range of products including UHT white milk and UHT cream for the foodservice sector. . .

Federated Farmers awaits Commerce Commission examination of swaps:

Federated Farmers has asked the Commerce Commission to look into the selling of debt finance instruments known as ‘swaps’. This formal request was made last November.

“It is fair to say we have received a number of inquiries from members and even non-members regarding swaps,” says Bruce Wills, Federated Farmers President.

“As most of these instruments were sold to farmers between 2007 and 2009, the impact of the global financial crisis upon interest rates saw concerns really only arise after 2009. . .

Drought makes high New Zealand dollar unjustifiable:

With widespread dry conditions and the first adverse event declaration in Northland related to drought, Federated Farmers believes there is no justification for the high New Zealand dollar.

“It seems dairy production is not just falling but in some key areas is starting to crash,” says Bruce Wills, Federated Farmers President.

“DairyNZ confirms Northland’s February milk production is some 20 percent down year to date while in the Waikato, it is about 15 percent down. Speaking to Kevin Robinson, the vice-chair of Federated Farmers Dairy, milk production at his farm is down 15-20 percent and is falling daily. . .

PGG Wrightson lifts 1H profit by 55% onr etail, ag services, pays 2.2 cent dividend:

PGG Wrightson, the rural services company controlled by Singapore-based Agria, listed first-half profit by 55 percent on earning s growth from retail and Ag services, allowing it to declare a 2.2 cents a share interim dividend.

Profit rose to $4.8 million in the six months ended Dec. 31, from $3.1 million a year earlier, the company said in a statement. Revenue from continuing operations fell to $589 million from $694 million.

Wrightson sold its finance unit to Heartland New Zealand in August 2011 and booked a loss of $3.37 million in the first half of the 2012 that wasn’t repeated in the latest period. Revenue from discontinued operations fell to $1.5 million in the latest half from $13.6 million a year earlier. . .

A2 1H profit dented by UK JV, affirms FY earnings target of $11.2M –  Paul McBeth:

Feb. 27 (BusinessDesk) – A2 Corp, which markets milk products with a protein variant claimed to have health benefits, reported an 82 percent slide in first-half profit as the cost of setting up its UK joint venture eroded the bottom line. The shares gained 3.9 percent as it affirmed its annual earnings forecast.

Net profit dropped to $243,000, or 0.09 cents per share, in the six months ended Dec. 31 from $3.4 million, or 0.53 cents, a year earlier, the Sydney-based company said in a statement. That came from a $1.5 million loss on establishing its UK joint venture with Robert Wiseman Dairies, which only started selling product in October last year. . .

Primary Wool Cooperative announces dividend payment:

Primary Wool Cooperative announces that on February 19, 2013, the Directors approved the payment of a 10% dividend to members. This comes on top of the annual 3 cents per kilogram rebate and last year’s 5% dividend, meaning that over the past 3 years, rebates and dividends have totalled an impressive $1.1M. These rebates and dividends, along with significant funding of industry-good activities such as the Campaign for Wool, demonstrate some of the ways Primary Wool Cooperative is delivering real benefit to the industry.

This is more good news for Primary Wool Cooperative, with the Just ShornTM brand being successfully rolled out into over 480 carpet retailers across North America and Canada on February the 18th 2013. . .

Farmers say ‘yes’ to rural stores merger:

Farmer Shareholders in the rural supply co-ops Farmlands and CRT have agreed to merge the two Societies with a majority of Farmlands and CRT Shareholders voting in favour of merger in today’s second special vote.

It means an immediate bonus for Shareholders in both co-ops. A bonus share issue of $32 million shares is being made to shareholders to distribute the retained earnings and unallocated reserves of the two co-operatives prior to merging.

And the two companies will distribute more than $8 million in an interim bonus rebate to Shareholders. This relates to their trading with the two co-operatives over the period 1 July– 31 December 2012. The rebate will be paid in a 60/40 share/cash split. . .

MPI Tech Transfer Survey Supports Red Meat PGP:

The findings of a Ministry for Primary Industries survey of technology transfer to farmers is more evidence of why farmers should want the red meat primary growth partnership programme to go ahead, says Beef + Lamb New Zealand chairman Mike Petersen.

The MPI survey says technology transfer has enabled farmers and growers to become world leaders in primary production during three decades of significant structural change. But the sector could now do with a boost because there are too few professionals and they need to be better linked to provide a more integrated approach to sharing new knowledge and information.

“This initiative runs right through our PGP programme that is bringing together the major meat companies, two banks and an accounting firm in an unprecedented collaboration. . .


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