Rural round-up

May 28, 2016

Westland ups its payout prediction for the coming season:

New Zealand’s second biggest dairy co-operative Westland Milk Products has released a budget for the 2016-17 dairy season of $4.55 – $4.95 per kilo of milk solids (kgMS).

Payout for the current season will be in the range of $3.80 – $3.90 per kgMS.

Westland will also start its payout advance payments for the 2016-17 season at $3.80 per kgMS, payable 20 September 2016. . . 

Westland tops Fonterra – Hugh Stringleman:

Dairy farmers received cold comfort when Fonterra announced a low forecast milk price of $4.25/kg milksolids for the new season from June 1, with an advance rate beginning at $3.01.

Analysts’ expectations had been for an opening price of $4.60 or more, as well as some upside when world product prices steadily improved as expected towards the end of 2016.

They said Fonterra seemed to base its opening forecast on spot market prices and not the generally expected improving trend. . .

Farm profits help rural students get ahead – Kate Taylor:

A hill country farm east of Dannevirke has helped hundreds of young people with their tertiary studies. Kate Taylor visited to find out how.

Sheep and beef farmer Max Buckendahl has called the Weber district home for almost three decades but when his 30th anniversary rolls around next year he’s off to see the country.

Together with partner Lynn Moss and a fifth-wheeler artic truck caravan, he’s going to work (and fish) in the warmer climates of Northland for half the year and travel New Zealand for the other half.

“There’s no particular reason to go now but I wanted to stay here 30 years first,” he says. . . 

Silver Fern Farms:Details of Special Meeting:

• Special Meeting date set for Monday, 11 July 2016

Dunedin 27 May 2016: Silver Fern Farms has today settled the statement from two of the 80 requisitioners, in a form that Silver Fern Farms is willing to include in its Notice of Meeting, and has set a date of Monday 11 July to hold the Special Meeting.

The Board has received a statement from two of the 80 requisitioners and notes that the original 80 requisitioners sought a meeting of shareholders to consider: . . 

Silver Fern shareholders to vote again on Shanghai Maling deal in July – Paul McBeth:

 (BusinessDesk) – Shareholders of meat processor Silver Fern Farms will have a second vote on whether to approve its planned tie-up with China’s Shanghai Maling Aquarius in July, though the board intends to go ahead with the deal irrespective of the outcome.

The cooperative today set the meeting for July 11 in Dunedin where shareholders will vote on approving the proposed partnership and restructure, where the Chinese firm takes 50 percent ownership of the meat processor in return for $261 million of cash, a special dividend, and funds to bankroll the cooperative for seven years. Shareholders backed the deal in October, but John Shrimpton and Blair Gallagher, representing a group of 80 shareholders, have since sought a special meeting to effectively reconsider the transaction. . . 

Federated Farmers welcomes Freshwater Improvement Fund:

Federated Farmers is commending the Government on a new $100 million Freshwater Improvement Fund to aid communities investment in solutions for water quality in New Zealand’s rivers, lakes and groundwater supplies, announced in yesterday’s budget.

Federated Farmers water spokesperson Chris Allen says the fund will help communities achieve desired water quality outcomes sooner.

“It’s going to take innovative thinking, time and money to get to the level of water quality our communities aspire too,” he said. . . 

TB continues to be challenge for next decade:

Funding for TB control is less than it has been in the past but Federated Farmers is confident the new programme will continue to make progress with a more efficient spend of the money.

Federated Farmers OSPRI (TB Free NZ) spokesman Anders Crofoot said: “The amended TB Plan is a shift in approach from containing the disease to active eradication in livestock and wildlife. To date we’ve been successful at removing TB from large areas of New Zealand. This means with improved operational efficiencies and targeted work, enabled by advances in modelling we should see new TB Plan targets achieved.

The programme carried out by OSPRI will aim to eradicate bovine TB from cattle and deer by 2026, and from TB-infected wildlife in New Zealand by 2055. . . 

Government Support for Landcare:

Yesterday’s Budget marks a return to stable base-line funding for the work of NZ Landcare Trust.

The Minister for the Environment is responsible for financial appropriations for the 2016/17 financial year which include approximately $27 million for grants to third parties for water initiatives, environmental management and education programmes.

A specific appropriation identified within ‘Vote Environment’ has been established for the promotion of sustainable land management practice through a national network of coordinators. These funds are available due to the reprioritisation of $800,000 from the Community Environment Fund. This transfer reflects joint Ministers’ decision to fund the NZ Landcare Trust activities for 2016/17 and out years. No expiry date for this resourcing commitment has been set and it is identified as an on-going commitment. . . 

DairyNZ’s commitment to supporting dairy farmers:

Industry body DairyNZ is committed to supporting dairy farmers following the announcement by Fonterra of an opening forecast Farmgate Milk Price of $4.25 per kgMS for the 2016-17 season.

“The $4.25 per kgMS is not a surprise, although the particularly low opening advance rate of $2.50 per kgMS plus capacity adjustment is tough for farmers who will find the winter particularly difficult,” says DairyNZ chief executive, Tim Mackle. “This is the lowest opening advance rate in at least the last 14 years.

“The break-even milk income required for the average farmer is $5.25 per kgMS, yet under this forecast scenario they’ll only be receiving $4.45 per kgMS all up in terms of farm income, including retro payments from last season and dividends. . .

PwC supports NZ Milk Futures to manage milk price risk:

The NZX today launched a NZ Milk Futures contract that will eventually provide the opportunity for large and small dairy farmers to proactively risk manage milk price movements and volatility.

“The new futures contract essentially replaces, and considerably enhances, the Guaranteed Milk Price (GMP) contract previously offered by Fonterra,” says Roger Kerr, PwC Partner and Treasury Advisor.

“While the new futures contract has been expected, it will need support from the market to ensure its viability. This means that industry players with resources available to make this commitment, should be encouraged to participate,” says Mr Kerr. . .


Rural round-up

June 23, 2015

Water presents high risk to agribusiness:

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

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

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

ASB Farmshed Economics Report Cash is king for farmers

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

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

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

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

 

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

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

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

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

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

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

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

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

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

Upper South Island Butchers Battle It Out:

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

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

 

Tractor and Machinery Association elects new President:

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

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

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


Rural round-up

November 11, 2014

Cheese-making success recognised – Dene Mackenzie:

Whitestone Cheese, of North Otago, was founded in 1987 as a diversification during the 1980s rural downturn and a series of crippling droughts.

Last night, the company won the Westpac-Otago Chamber of Commerce Supreme Business Awards at the 2014 OBiz awards ceremony held in Dunedin.

About 330 people attended the function which is held every two years.

Notes provided to the Otago Daily Times said Whitestone founder Bob Berry’s experience in livestock trading was quickly applied to cheese trading. . .

Alliance pool payment first in 3 years – Sally Rae:

Alliance Group farmer shareholders will receive a pool payment for the first time in three years after a better financial result.

The company has announced an operating profit, before a $7 million pool payment distribution, of $17.6 million for the year to September, up from $8.4 million last year.

Turnover increased from $1.38 billion to $1.46 billion, while after-tax profit increased from $5.6 million to $6.2 million. . .

Merino genetics focus breeds success – Sally Rae:

When Gordon Lucas’ parents bought Nine Mile Station, the local land agent commented that it ”wouldn’t be a bad stepping stone for the lad”.

”Here I am at the end of my career and I’m still on the stepping stone,” Mr Lucas quipped.

He was outlining the story of Nine Mile Pastoral Ltd to those attending the New Zealand Grassland Association conference, which was based in Alexandra last week.

As part of several field trips, including Ida Valley Station and Hills Creek Station, those attending visited Willowbank, near Tarras, an intensive irrigated finishing property run in conjunction with Nine Mile. . .

Mobile Milking System, Bureaucrats & Regulations – Milking on the Moove:

When I decided to actually build the mobile cowshed & process my own milk, I knew that the regulatory requirements would be the hardest part.

New Zealand trades on our food safety reputation. We need to protect that reputation. I’m aware that even small scale producers have the potential to put our whole reputation at risk too.

With this in mind, I delved into all the regulations that a mobile cowshed would have to meet. 

The regulations for the farm dairy side of things are in a document named NZCP1.

People wanting to process milk will also need to know all the requirements of DCP1, DCP2, DCP3 & DCP4.  . .

MP welcomes trail initiative;

Clutha-Southland MP Todd Barclay congratulates the Gibbston community, landowners, and the Queenstown Trails Trust for delivering the $370,000 Gibbston River Trail which will join the Queenstown Trail as a part of the NZ Cycle Trail Great Rides network.

The Gibbston River Trail Upgrade was reopened today (8 November). Mr Barclay was presenting certificates to the landowners who provided easements to make the trail possible. . .

Feed Grain market tightens up:

Grain growers will be heading into the next harvest with silos completely empty, and an emerging potential for shortages. This is according to a recent study published by the Arable Industry Marketing Initiative (AIMI).

David Clark, Federated Farmers Grain and Seed vice-chairperson, says this time two years ago there was a glut of wheat and barley available to end-users.
“That has now been obliterated” he says.

“Twenty-four months ago the market had a big surplus of carry-over stock heading into the end of the year.

“Last year we made a big dent in that surplus, but these latest figures show that it has now disappeared. . .

Building the next generation of Federated Farmers – Casey Huffstutler:

When it comes down to it, people are the key to our primary industry success and even survival. They are our most precious resource.

Our value recognised in the multiple organisations set up to promote and support the industry and its people.  From education, to industry good, to insurance, to lobby organisations; New Zealanders are building a strong agri-community.  NZ Young Farmers and Federated Farmers sit at the core of this; made up of the very farmers this community exists for.

The Waikato and Bay of Plenty regions, of which I have been a NZ Young Farmers Field Officer for nearing on four years, have a great working relationship with Federated Farmers Waikato.  It is important to have cohesion between our young farmers and our farming leaders, to ensure we are supporting the next generation into the spotlight. . .

 Open Day aims to give public a peak at primary sector:

 Connecting city folk with ‘what goes on behind the gate’ is just one of the objectives for the upcoming Farm Open Day to be held at the Lincoln University Dairy Farm (LUDF).

Following on from the success of last year’s inaugural event, the farm will once again open its gates to the public to showcase the operations of a commercial dairy farm and provide perspective on the broader scientific, commercial and logistical aspects of sustainable food production.

The event is organised by the South Island Dairying Development Centre (SIDDC) and Fonterra, and will include nine outdoor educational demonstrations and displays which take people on the journey of ‘turning sunshine into food’. A central marquee will offer information to the public, along with samples of a range of milk-based products, such as cheeses, yoghurt, milk drinks and ice creams. . .

Building NZ’s reputation as a leader in food safety in China:

 New Zealand Government owned AsureQuality and PwC’s New Zealand and China firms are cooperating with COFCO, China’s largest agricultural and food products supplier, to continually improve China’s food safety and quality. All four parties signed a cooperation agreement to that effect on the side-lines of the 2014 Asia Pacific Economic Cooperation Summit in Beijing, China today.

Drawing on leading New Zealand and international food and agricultural models, the agreement formalises areas where AsureQuality and PwC will support COFCO in embedding best practice in food safety and quality across the food and agriculture industries. . .

Results Announced for the 2014 Fonterra Elections:

Returning Officer Warwick Lampp, of electionz.com Ltd, has declared the final results of the 2014 elections for the Fonterra Board of Directors, Directors’ Remuneration Committee and Shareholders’ Council.

Shareholders voted to re-elect incumbent Directors John Monaghan and David MacLeod. They will be joined by new Director Leonie Guiney.

Leonie Guiney lives and farms near Fairlie where she is Director of four dairy farming companies. Leonie has previous experience as a Consulting Officer, Dairy Production Lecturer and has studied overseas co-operatives in the Netherlands and Ireland. Leonie was the 2014 winner of the low-input Dairy Business of the Year. . .

 


%d bloggers like this: