Rural round-up

April 24, 2018

Precious arable land – Eric Crampton:

I just don’t get the fixation with making sure that nobody builds a house on agricultural land.

The government plans to make it harder for councils to approve new homes and lifestyle blocks on productive land near urban areas.

A report out today, called Our Land 2018, shows New Zealand’s urban sprawl is eating up some of the country’s most versatile land.

It highlights that between 1990 and 2008, 29 percent of new urban areas were built on some of the country’s most versatile land. . . 

We are growing houses instead of food – Feds:

We are losing our most productive land to houses – that’s the most significant point Federated Farmers takes from the ‘Our Land 2018’ report released today.

The Ministry for the Environment report shows the pressure New Zealand agriculture is under from the loss of highly productive and versatile land due to urbanisation.

There was a 10% increase in urban areas from 2002 to 2012 and the loss would be even more now with the pressure on housing in the last few years. . . 

Auckland Council rates policy fails to value private land conservation:

Auckland Council is proposing to remove rates remission for privately owned land protected by QEII covenants.

QEII National Trust CEO Mike Jebson says “we are submitting against Auckland Council’s proposed policy. This policy discourages landowners from protecting natural heritage areas on their properties and fails to support protection of biodiversity on private land in the region.”

“QEII covenants often protect the habitat of threatened indigenous species, and provide corridors linking larger areas of private and public land set aside for conservation. The work landowners do in protecting their land, like excluding stock from the protected area, is critical in encouraging regeneration of native vegetation.” . .

 A2 shifts from a brand to a category, with Nestle and Mengniu now on board – Keith Woodford:

It is only six weeks since mega-sized Fonterra in New Zealand and medium-sized Freedom Foods in Australia announced their intention to produce A2 dairy products, these being products free of A1 beta-casein.  Since then, both Nestle and Mengniu have stepped up to announce that they too are developing brands for A2 infant nutrition products.

To place this in perspective, and as reported by Rabobank, Nestle is easily the largest global dairy company by turnover, followed by Lactalis, Danone, Dairy Farmers of America and then Fonterra. Further down comes Mengniu at number 11 globally, but number 2 in China.

It is now evident that dairy products free of A1 beta-casein are shifting from being a niche brand belonging to The a2 Milk Company (A2M) to becoming a broader dairy category. This was always going to happen, but the speed at which it is now occurring is taking most people by surprise. . . 

Livestock Improvement buys back $5.3M of shares to simplify structure – Tina Morrison:

 (BusinessDesk) – Farmer-owned cooperative Livestock Improvement Corp will buy back $5.3 million of its shares as part of its move to simplify its share structure.

In March the company’s shareholders voted to reclassify all cooperative control shares and investment shares into a single class of ordinary shares. Livestock Improvement said today that a small number of shareholders had elected to exercise their minority buy-out rights under the proposal. . . 

#SustainabilitySunday: A tale of two farms – Uptown Farms:

What you see above is crazy exciting for our family!

These two pictures are from two fields, only separated by an old fence row. The photos were taken about 4 foot apart. 

The farm in the bottom photo has been traditionally managed for north Missouri row crop farms. You see larger and more compacted soil clods, fairly typical of dirt in the area. 

On the farm in the top photo we have been using no-till and cover crop practices for three growing seasons. What you see, and would feel if you were here, is a light and loose soil. It’s full of organic matter without any compaction. (Think of potting soil compared to dirt from your backyard.) 

We have actually added soil to this farm by allowing crop residue and cover crops to decompose and turn to dirt. In only three years, we have changed the soil makeup of our farm.  . . 

Scales hunts for NZ agribusiness acquisitions to fit with apple export business – Tina Morrison:

 (BusinessDesk) – Scales Corp is eyeing potential agribusiness acquisitions that would fit well with its export apple business as the country’s largest apple grower aims to become the foremost investor in and grower of New Zealand agribusiness.

“We think New Zealand agribusinesses are in a good space, they make good products, and sell them to Asia,” chief executive Andy Borland told BusinessDesk. “We have over the years developed our skills around exporting and dealing with Asia, particularly China, and we are looking at businesses within New Zealand that would work with those sort of dynamics and be complementary to our apple business. We are really looking for those sort of New Zealand opportunities.” . . 

Good Idea! Feds Likes NZX Primary Sector Index Concept:

Federated Farmers congratulates the New Zealand Stock Exchange for coming up with the idea of creating a ‘primary sector index’ for investors.

The NZX intends to launch the new primary sector index later this year, where it will sit alongside the existing indices for other sectors such as energy, healthcare and real estate.

The index will include 15 companies, including Fonterra and A2 Milk. . . 

China begins to challenge multinationals in domestic infant formula market, says GlobalData :

CITIC Agri Fund Management, backed by Chinese state-owned CITIC Group, has recently agreed to buy a 25.18% stake in Hong Kong-based Ausnutria Dairy, one of the leading local suppliers of infant formula in the Chinese market. This clearly marks a change in direction for the government, which has hitherto been focusing its efforts on regulation in this sector, says leading data and analytics company GlobalData.

Local suppliers in China are yet to recover from the melamine contamination scandal in 2008, with parents continuing to put their faith in foreign-made milks even after a decade. . . 


Rural round-up

April 15, 2018

Water schemes left high and dry – Annette Scott:

The canning of Crown funding for water schemes is a “kick in the guts” for rural communities, especially when six regions have been declared in drought this year, National Party agriculture spokesman Nathan Guy says.

“This Government has now raided $100 million and effectively pulled the plug on any lifeline for rural communities,” Guy said.

“These projects, such as Hunter Downs and Hurunui, are about rural communities providing for much wider regional development and what needs to be remembered is that this Crown funding is not a grant. It’s a loan and it’s all paid back. . . 

Jeff Grant becomes Kiwi meat’s Brexit rep:

OSPRI and AgResearch chairman Jeff Grant has been appointed at the meat industry’s Brexit representative to be based in London.

On behalf of Beef + Lamb New Zealand and the Meat Industry Association the former National MP will provide the red meat sector’s response to Brexit.

Grant will work closely with B+LNZ’s Europe representative, the Government and commercial interests to help strengthen the red meat sector’s ties with the United Kingdom and safeguard NZ’s exports to the key market. . . 

Ploughing with horses luck of the draw – Nicole Sharp:

Straight and steady is the aim of the game, but it is no easy task with Anna and Nugget, who have minds of their own.

The two Clydesdales are part of Sean Leslie and Casey Rae’s horse ploughing team, from Middlemarch, which will be competing at the New Zealand Ploughing Championships in Thornbury this weekend.

They are one of six horse teams competing in the event and they will attempt to plough the straightest, neatest and tidiest plot, but a lot of it was luck of the draw, Mr Leslie said.

“It does depend on soil conditions and being able to tackle it and master it.” . . 

Auckland Council rates policy fails to value private land conservation:

Auckland Council is proposing to remove rates remission for privately owned land protected by QEII covenants.

QEII National Trust CEO Mike Jebson says “we are submitting against Auckland Council’s proposed policy. This policy discourages landowners from protecting natural heritage areas on their properties and fails to support protection of biodiversity on private land in the region.”

“QEII covenants often protect the habitat of threatened indigenous species, and provide corridors linking larger areas of private and public land set aside for conservation. The work landowners do in protecting their land, like excluding stock from the protected area, is critical in encouraging regeneration of native vegetation.” . . 

NZX targets ‘natural advantage’ in primary industries with new index, dairy derivatives expansion – Paul McBeth;

(BusinessDesk) – NZX wants to capture New Zealand’s “natural advantage” in the primary sector with a new index tracking listed industry players and build on the early success of its dairy derivatives market, says chief executive Mark Peterson.

The Wellington-based company is in the process of refocusing on its core market business to revive investor interest in the capital markets. Among those initiatives is a drive to capture New Zealand’s comparative advantage in agriculture and horticulture, and Peterson told shareholders at today’s annual meeting in Christchurch a new index will be launched in the second quarter including stocks such as a2 Milk Co, Fonterra Shareholders’ Fund, Comvita, New Zealand King Salmon, Scales Corp, Sanford, and Seeka. . . 

Working Lands: A Missouri farmer saves prairie and grassland birds – Joel Vance:

Tom Smith’s anthem could be “Don’t Fence Me In,” except that he has a fencing company. His customers can be bizarre; one wanted a 10-foot fence to protect his garden from starving mobs fleeing Kansas City and St. Louis, which, he was convinced, would burn to the ground within two years.

But most are more ordinary landowners to whom Smith, a 63-year-old cattleman, preaches the value of native grass. Smith raises about 90 grass-fed feeder calves on 627 leased acres of Hi Lonesome Prairie, a state-owned property near his Cole Camp, Missouri, home. “When I found a neighbor was planning to plow a patch of big bluestem,” Smith says, “I told him, ‘Oh, man, don’t plow that. What you’ve got there is native prairie.’ . . 

Z


Hysteria Greenpeace business as usual

June 30, 2017

Federated Farmers says Greenpeace’s report is verging on hysteria:

Federated Farmers is disappointed Greenpeace has resorted to sensationalist rhetoric in a report published today that implies agriculture and related activities are a threat to all New Zealanders’ health.

The report which goes by the title “Sick of too many cows”, is a predictable if not misguided attack on the primary sector- the country’s largest exporter and employer of around 160,000 people.

“This is Greenpeace doing a good job of what they do best – plenty of headlines and hyperbole. Let’s be frank, those claims made about New Zealanders’ health being endangered due to livestock is extreme to say the least, says Chris Allen, Federated Farmers’ Water Spokesperson.

“What’s particularly disturbing is their accusation that irrigation and farming causes cancers and infectious diseases.”

Federated Farmers expects plenty of hyperbole and sensationalism and welcomes an open forum leading into the General Election, but this latest anti-farming rant smacks of desperation.

It leaves little room for constructive dialogue with no concrete language throughout the report.

The Federation also finds it ironic that the Havelock North water contamination outbreak is raised, yet it had nothing to do with dairy farming nor so called industrial farming or irrigation.

We note Greenpeace acknowledges most farmers are working hard to improve their environmental footprint. However, it’s unfortunate they have not researched basic facts about irrigation and proposed schemes.

“For example, those that have signed up to the Ruataniwha scheme are horticultural enterprises, arable and sheep and beef farmers.

“The fact is there are no new dairy conversions amongst the 190 farmers signed up, while only one irrigator will expand an existing dairy farm by a mere 100ha.

“What is also overlooked is that irrigation is crucial for many fruit and horticultural crops, and there is evidence that irrigation can have better environmental outcomes. The majority of dams being built are for community water and security of supply for drinking water alongside irrigation,” Chris said.

Federated Farmers otherwise is proud of all New Zealand farmers’ focus and efforts towards managing the environment.

Dairy farmers had spent over $1 billion in the past five years, which meant 97% of the waterways on New Zealand dairy farms are now excluded from dairy cattle.

Sheep and beef farmers meanwhile have been main contributors to the establishment of QEII covenants, protecting private land for conservation at a real and opportunity cost of $1.2 to 1.4 billion dollars.

“Let’s be clear, farmers are not solely responsible for what is raised in this report. We are taking ownership through seeking solutions and acting on them. Scaremongering the public with extreme claims in an election year, is short-sighted and lacks integrity,” says Chris.

This scaremongering and extreme claims aren’t just for election year.

It’s business as usual for Greenpeace, high on emotion and low on facts.

They forget, ignore or simply don’t know that farmers have a very high interest in good water quality.

Waterways which run through and near farms are the source of drinking water and the playground for farming families.

Ensuring they are clean isn’t just an academic concept or political point-scoring exercise, it’s personal and immediate.


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