Rural round-up

March 6, 2015

World dairy prices and New Zealand droughts – Jim Rose:

Here is an image from the recent Westpac Economic Overview. As New Zealand is the world’s largest exporter of dairy products any disruption in the supply from New Zealand can impact on the global dairy prices.

The last few droughts saw world dairy prices increase considerably as milk supply from the rest of the world was unable to adjust to market conditions.

However supply capacity in the US and the EU has increased and with Russia’s import ban there is a much greater supply on the global market. Nevertheless, this doesn’t disprove the possibility that prices rise when supply falls short. The overall signs are that supply and demand are coming into line as Chinese buyers run down stocks.

The drought in New Zealand will further boost prices from current low levels. Westpac expect the milk price to rise to $6.40/kg for the next season. Below is a useful video…

ANZCO’s profit disclosed in Itoham’s statement – Allan Barber:

Japanese food company Itoham Foods announced last week an increase in its shareholding in New Zealand meat processor and exporter ANZCO Foods from 48.28% to 65%. As a result of the transaction it will be able to consolidate ANZCO’s revenues and earnings into its annual accounts.

 $40 million worth of shares are being bought from three entities: another leading Japanese food manufacturer Nippon Suisan Kaisha, chairman Graeme Harrison, and JANZ Investments, owned by Graeme Harrison and ANZCO staff members. The sale will see the minority shareholders reducing their shareholdings on a pro rata basis with Harrison’s effective holding falling from approximately 20% to 14%. . .

BOP Dairy Awards Boosts Careers:

Entering the Bay of Plenty Dairy Industry Awards has helped the region’s 2015 Sharemilker/Equity Farmers of the Year, Grant and Karley Thomson, secure a new position beginning in June.

The couple were the major winners at the 2015 Bay of Plenty Dairy Industry Awards held at the Awakeri Events Centre in Whakatane last night. The other big winners were Jodie Mexted, the Bay of Plenty Farm Manager of the Year, and Jeff White, the region’s Dairy Trainee of the Year.

The Thomsons, who won $10,100 in prizes, are currently 50% sharemilking (with a silent partner) 420 cows for Tom and Tony Trafford at Opotiki. . .

 

New Zealand King Salmon Success to Feature at Queenstown Agribusiness Symposium:

Aquaculture business, New Zealand King Salmon, will feature as one of the success stories at the second Queenstown Agribusiness Symposium this month.

New Zealand King Salmon successfully launched Ōra King premium salmon in 2012 to the international foodservice market.

The farmed salmon is now on fine dining menus around the globe.

The Queenstown Agribusiness Symposium attracts senior staff, managers and leaders from throughout Asia Pacific horticulture, agriculture, seafood and biotech industries to help them develop new ways to problem solve and grow their business. . .

Prime Minister John Key Visits Manuka Health’s New State of the Art Honey Facility:

New Zealand Prime Minister, John Key, has been given a tour of Manuka Health’s brand new multi-million dollar, purpose-built honey processing and distribution centre on a recent visit to Te Awamutu in the Waikato.

Mr Key was shown through the premises by Manuka Health CEO and founder, Kerry Paul. It is now the largest customised honey facility in New Zealand and combines internationally accredited laboratories, honey-drum storage, blending, packing and distribution under one roof.

Mr Paul, says it was a huge honour to have the Rt Hon John Key visit the new centre. . .

Tasman Young Farmers to be put to the test in ANZ Young Farmer Contest Regional Final:

The third ANZ Young Farmer Contest Grand Finalist will be determined next weekend, Saturday 14 March at the Tasman Regional Final held in Kirwee.

“This contest season is shaping up to be very exciting, every year the calibre of contestants continues to improve and impress,” says Terry Copeland, Chief Executive of New Zealand Young Farmers – organisers of the event.

The eight finalists are contending for a spot at the Grand Final in Taupo 2 – 4 July and their share of an impressive prize pack worth over $271,000 in products, services and scholarships from ANZ, FMG, Lincoln University, Silver Fern Farms, AGMARDT, Ravensdown, Honda, Husqvarna and Vodafone. . .

 


Rural round-up

January 21, 2015

Action needed now to minimise drought losses:

Farmers need to act now if they are to cope with the effects of a predicted drought in Canterbury, Lincoln University experts say.

But they also need to be thinking long-term with more dry-spells looking likely.

Chris Logan, Animal Programmes Manager at Lincoln University, says it seems the region may be in for a hard drought of a kind which has not been seen for some decades. . . .

 HSBC says global dairy prices should recover:

HSBC’s economists are expecting global dairy prices will start recovering from current lows, largely because of a sharp run-down in Chinese dairy imports.

Paul Bloxham, HSBC’s chief economist in Sydney, said Chinese imports had dropped to seemingly unsustainably low levels.

He said once China begins buying again, prices should at least partly rebound.

Global Perspective Will Help NZ Agribusiness Grow:

An agribusiness symposium with a global focus will help New Zealand businesses continue to develop their production, marketing and logistics skills to grow sales and exports.

That’s the view of agribusiness consultancy, AbacusBio that is underwriting the second Queenstown Agribusiness Symposium in March 2015.

AbacusBio partner, Anna Campbell says after attending the Harvard Agribusiness Executive Seminar in China a few years ago, the company was inspired to organise a comparable event locally so more New Zealand businesses could benefit from the learnings and networking.

The three–day program is facilitated by the Director of Harvard Business School’s Agribusiness Program, Mary Shelman and Professor of Marketing and Associate Dean at UCD Michael Smurfit Graduate Business School, Ireland, Prof. Damien P. McLoughlin, who bring an international perspective, she says. . .

ANZ announces assistance package for farmers affected by Big Dry:

ANZ today announced an assistance package for farmers affected by extreme dry conditions across much of New Zealand’s east coast.

Many areas, including Canterbury, have experienced “severely dry” conditions over the past two months compared with the long-term average, according to Niwa.

“The Big Dry is affecting areas which haven’t experienced extreme conditions like these for many years, so for a lot of farmers this is new territory,” said Graham Turley, ANZ Bank’s Managing Director Commercial & Agri. . .

 

David Jones explains why the red meat sector growth targets are not likely without major reform, and what should be done in 2015 with a sector ‘unable to help itself:

Currently, over 80% of our agricultural produce is shipped offshore each and every year, and over the next decade the sector has big ambitions to double export earnings to $64 billion.

The Red Meat Sector Strategy (RMSS), launched by the Meat Industry Association of New Zealand in May 2011, hopes to achieve growth in the sector of $3.4 billion NZD by 2025, across all parts of the value chain.

The three key influences focused under RMSS are:

• Improving how and what we sell in overseas markets

• Aligning procurement between farmers and processors .

• Adopting best practice production and processing . . .

Economists to discuss challenges of feeding a growing planet . . .

A world perspective on the short and long run impacts of food price changes on poverty will be up for discussion at a major international economics conference in Rotorua next month.

The World Bank’s, Dr Will Martin, will lead the discussion on food price changes and poverty as part of a session on challenges in the agrifoods sector at the 59th Australian Agricultural and Resource Economics Society’s (AARES) annual conference being held in Rotorua from February 10 to 13.

Dr Martin is manager for agricultural and rural development in the World Bank’s Research Group and president-elect of the International Association of Agricultural Economists. His recent research has focused primarily on the impacts of changes in food and trade policies and food prices on poverty and food security in developing countries. His research has also examined the impact of major trade policy reforms-including the Uruguay Round; the Doha Development Agenda; and China’s accession to the World Trade Organisation. . .

 Farmers urged to watch for yellow bristle grass:

 Horizons Regional Council is urging farmers to keep an eye out for yellow bristle grass, an invasive summer weed that spreads rapidly through pasture causing a loss in production.

 Horizons environmental programme coordinator plant security Craig Davey says the grass is already affecting farming in Waikato and is easily transferred from roadside infestations, via stock movement and infested hay.

“Like a lot of weeds, yellow bristle grass is quick to colonise bare ground. Hot, dry conditions, poor machinery hygiene practices and spraying to bare earth can all exacerbate its spread,” Davey says. . .


Rural round-up

March 26, 2013

Station owner hunts hunters – Matthew Littlewood:

A South Canterbury high country farmer is offering a $20,000 reward for any information about suspected illegal helicopter-hunting activities on his property.

Donald Aubrey, of Ben McLeod Station in the headwaters of the Rangitata River, said the most recent incident occurred in the headwaters of the neighbouring Hewson River on March 22.

He said yesterday the reward would be “payable for any information that enables the prosecution and future prevention of those responsible”.

“Apart from the obvious intention to shoot wild game, pilots are typically unaware of the impact they have on sheep,” Mr Aubrey said. . .

NZ seen as agribusiness beacon – Sally Rae:

Damien McLoughlin has a simple message for New Zealand’s agricultural sector – it needs a pat on the back.

Prof McLoughlin, professor of marketing and associate dean at UCD Michael Smurfit Graduate Business School, in Ireland, co-led the Queenstown Agribusiness Symposium last week.

The symposium, hosted by Dunedin-based agribusiness consulting and new ventures company AbacusBio Ltd, attracted about 50 people from throughout New Zealand. . .

Synlait stock to trade on unlisted platform:

Synlait Farms, the Canterbury dairy farmer whose owners tried unsuccessfully to raise funds for its milk processing associate in a 2009 IPO, is to have its stock quoted on the Unlisted platform starting tomorrow.

The company runs 12,970 cows on 13 farms in Canterbury.

The listing is to “provide options to enhance liquidity to shareholders”, founder Juliet Maclean says. “Synlait Farms is now well positioned to consider further expansion options.” . . .

Greater innovation needed – Gerald Piddock:

New Zealand could miss out on opportunities in the global market if it does not become a more effective innovator, Synlait Farms’ chief executive Juliet Maclean says.

Farmers were fantastic with coming up with ‘number 8 wire’ ideas. But she questioned if farmers were taking good ideas and applying them to their farm businesses to gain better outcomes.

“That’s what innovation is all about,” she said at a field day to celebrate the company winning the 2012 South Island Farmer of the Year.

The day was held at Synlait Farms’ Hororata property, Robindale Dairies. . .

Huge potential in tools – Gerald Piddock:

Precision agriculture is an industry that is still maturing, but has huge potential to benefit New Zealand agriculture, 2012 Nuffield scholar Michael Tayler says.

His report, New Technologies in Arable Farming, identified precision agriculture as a technology that would play a big part in New Zealand’s agricultural future.

Farmers were going to have to turn to new ways of fine tuning their crop management as they faced tighter environmental regulations, he said in his report.

Advances in precision agriculture would enable farmers to more accurately record placement of the fertilisers and pesticides creating more accountability and traceability. . .

Callaghan Innovation Co-Funding Enables Large Herd Trials For Kahne:

Kahne Animal Health (Kahne) today announced that Callaghan Innovation will co-fund a large-herd testing project for their world-first sensor-based wireless monitoring systems used to track health and fertility in cows.

Callaghan Innovation will provide $1 million towards testing the biotelemetry-based rumen and fertility monitoring devices which measure temperature, pH levels and identify oestrus indicators in cows. The devices track and transmit data to provide farmers with health alerts and reports to help with the early detection of health problems, effectiveness of nutrition management, disorders that could impact fertility, and accurate oestrus detection.

Kahne Chief Executive, Susanne Clay, said while there is a global market for the technology, the company has given priority to the local market to help Kiwi farmers solve livestock issues to drive efficiencies that impact their bottom lines. . .

Trust as much as science is at the heart of water management – Chris Arbuckle:

For many years now “Water User Groups” (WUG’s) have done a great job implementing community-based water management initiatives. And they have achieved this with the assistance of organizations such as the Landcare Trust, Crown Research Institutes, non-government agencies and regional councils. Projects on the Waituna Lagoon, Upper Taieri River and Aorere Catchment attest to this. They were formed because a community of people desired practical action to address concerns about environmental change. Usually a champion has encouraged a group of interested people to form around an issue to seek a solution. In the main this is all done voluntarily, for the well-being of the water resource and community, and by someone with great charisma to drive it through.

Of the three main recommendations in the Government’s “Freshwater Reform 2013 and beyond” [http://www.mfe.govt.nz/publications/water/freshwater-reform-2013/index.html] (national objectives framework; collaborative community planning (CCP); managing within quality and quantity limits using best industry practices); the collaborative planning bit clearly represents the biggest challenge. Without this working the other two recommendations lose their effectiveness. . . .

Thai Prime Minister Sees Fonterra’s Quality Processes First Hand:

Thailand Prime Minister Yingluck Shinawatra yesterday met with Fonterra Co-operative Group Chairman John Wilson for a tour of a South Auckland dairy farm and also visited the Co-operative’s Te Rapa manufacturing site.

The visit was an opportunity for Mr Wilson to further strengthen the company’s relationship with Thailand, where it is the number one supplier of dairy ingredients.

Mr Wilson said Fonterra was honoured to host Ms Shinawatra and provide her, and the Thai trade delegation with a deeper understanding of their business, and the New Zealand dairy industry. . .


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