Rural round-up

February 2, 2018

New Zealand Agribusiness Outlook 2018:

Favourable market conditions should underpin a second year of broad-based profitability for New Zealand agriculture. Where the industry chooses to direct improved cash flow and focus amid this sustained positive run will be important for many years to come. . .

Lewis Road investor Southern Pastures ties up with Westland Milk – Paul McBeth:

Dairy farm fund Southern Pastures LP, which took a quarter stake in Lewis Road Creamery last year, will link with Westland Milk Products as a supplier from the 2018/19 season and with plans for a high-value product joint venture. Separately, Westland cut its forecast milk payout for this season.

Southern Pastures and Westland signed a letter of intent where the dairy farm investor’s nine Canterbury farms will supply an extra 4 million kilograms of milk solids to Westland from 2019, and investigate a business case for a 50/50 joint venture to create products from free-range, grass-fed milk based on strict animal welfare, health, sustainability, climate change and human rights standards. . . 

Why the CPTPP is important for New Zealand:

There is no question that our small, remote nation depends on trade. But there were times during the protracted negotiations that have now culminated in the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) when the visceral debate here could easily have led bystanders to believe New Zealanders specialise primarily in trading insults.

The fact that there is now a deal to be signed – after the efforts of successive prime ministers ranging from Helen Clark and John Key to Bill English and now Jacinda Ardern – is a cause for real celebration. Our role in recent decades as free-trade pioneers, in the teeth of other countries’ stubbornly defended protectionism, should be a source of national pride. Our exports reap more than $70 billion a year, but farmers and manufacturers know what courage it has taken to open our borders, forgo subsidies and eschew protectionism. They and the country are better off as a result. . . 

Environment and agriculture can both benefit from CPTTP:

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP) trade agreement has the potential to transform the agricultural sector and at the same time benefit the environment, agribusiness expert Dr Nic Lees of Lincoln University says.

However, he added, the public needed to be convinced of that.

The CPTTP is the re-negotiated Trans Pacific Partnership after the USA withdrew, and is a free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Negotiations have concluded between the countries but it is yet to be ratified by New Zealand. The TTP had met some public and political opposition. . .

Farm machinery sales back to 2014 levels – TAMA:

Sales of tractors in 2017 increased markedly, just topping the previous highest recorded levels of 2014, says NZ Tractor and Machinery Association (TAMA) General Manager, Ron Gall.

Mr Gall said the association recognised that some farmers in both islands were currently experiencing hardship with the very hot and dry conditions. The challenging drought conditions may affect sales in the coming months but it was hoped changing weather would provide some relief.

Mr Gall said in 2017, a total of 4079 tractors were sold. This is up 13% on 2016, up 14% on 2015 and even slightly up on the boom dairy year of 2014, which had 4062 sales. . . 

 

Rabobank Wine Quarterly Q1: Evolution of sourcing strategies:

2017 was a dynamic year for the wine industry, marked by short-term scarcity and rising prices, according to Rabobank’s latest Global Wine Quarterly report.

The report says while “2017 was an unusual one for the wine industry, forcing all players to rethink their short-term strategies” – changing consumer behaviour, global shifts in demand volumes and changing trading frameworks, could represent long-term structural changes.

“Although the unconventional year that 2017 was may just be a one-off, it may also be enough to accelerate deeper changes that were already developing in the wine industry,” says RaboResearch senior beverages analyst Maria Castroviejo. . . 

Green light for China opens up new export opportunities for leading supply group:

Leading avocado export supply group AVOCO has welcomed this week’s announcement that New Zealand market access to China has been granted for the 2018-19 export season.

AVOCO exports New Zealand avocados to various Asian markets under its AVANZA brand and the company has been preparing for access to China for some time. Preliminary planning has included the development of a market-specific brand name designed to be the exemplar brand from New Zealand for China. . . 

Millennials are leaving desk jobs for this surprising profession – Alexandra Hayes:

The millennial generation is often called out for its social media addictions, its work habits, and even its unhealthy ideals around perfection, but according to the Washington Post, many of them are diverging from the status ladder and leading a crusade toward a different purpose entirely: farming.

Take Liz Whitehurst. Two years ago, she left her non-profit job and bought her farm, Owl’s Nest, from a retiring farmer. Now she grows an array of organically certified produce and sells to restaurants, through CSA shares, or at local farmers markets.

According to the latest Census of Agriculture in 2012, the U.S. Department of Agriculture reports that 69 percent of farmers today have a college degree, a number that suggests more millennials are leaving traditional desk jobs to pursue this very different life. . .

Manuka South® latest Manuka honey is making a legendary entrance:

The highly anticipated Limited Reserve batch of 26+ UMF features some of the rarest and most potent Manuka honey available in the world. Manuka South® is releasing only a limited amount of the high-end honey.

Manuka South® 26+ Limited Reserve – available at select Aotea Gifts stores in New Zealand – is the latest in the line of premium Manuka honey products produced by Manuka South®, a trusted brand from New Zealand Health Food Company (NZHF). But it will also be the rarest among them, because jars won’t be on store shelves long. . . 


Rural round-up

October 26, 2016

Dairy farmers ‘treat those calves like their babies’ – Alexa Cook:

Farmers have hit back at claims of widespread mistreatment of bobby calves, after a video emerged of calves being thrown onto the back of trucks.

The hidden-camera footage, obtained by activist group Farmwatch, also showed calves being dragged along the ground.

The Ministry for Primary Industries (MPI) has condemned the treatment, and started a full investigation.

But many farmers and farm workers say what was shown on the video did not reflect the reality of the industry. . .

Cruel practices condemned by DairyNZ chief:

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

“The vast majority of farmers care about their animals and we are committed to farming to very high standards.

“DairyNZ works closely with the wider industry in the management of bobby calves, including the transport sector, meat processors and dairy companies, as well as Federated Farmers and MPI.” . . 

Merino to make stars of growers – Sally Rae:

“You are going to be the rock stars for the future consumers,” New Zealand Merino chief executive John Brakenridge told about 100 merino growers in Omarama yesterday.

Speaking before the company’s annual meeting in the township, Mr Brakenridge said new brands were emerging where consumers could get to know the producer.

He had just returned from the United States, where he met former All White Tim Brown, the co-founder of shoe company Allbirds which has produced a shoe made from New Zealand merino. . . 

Loie and Tony Penwarden are ending their Trewithen Farms sharemilking contract – Sue O’Dowd:

An award-winning Taranaki dairy farm will enter a new era next season as family beckons for its long-serving sharemilkers.

The couple, who have been herd-owning sharemilkers on Faull Farms’ Trewithen Farm at Tikorangi since 2004, are retiring at the end of the 2016-17 season. 

The partnership between Faull Farms and the Penwardens won the inaugural Taranaki Ballance Farm Environment Awards (TBFEA) in 2014. . . 

Tokanui shepherd perfect woman – Tim Miller:

After two days of fierce competition, which included cooking a steak and flying a helicopter, the perfect woman for 2016 has been found.

The Perfect Woman competition returned to Wanaka at the weekend, after a year off in 2015, and 16 contestants took part.

Shepherd Rachel Rule (22), from Tokanui, took the title and  $1000 in prize money.

Miss Rule did not expect to win. She said the best part of the weekend was meeting the other competitors.

“It was a fantastic weekend with just a great bunch of girls and the things we got to do, like flying a helicopter, were really amazing.” . . 

Lives given purpose by the ‘legends’ who helped – Marc Gascoigne:

It’s been a stressful spring for farmers in the Waikato with constant rain causing all sorts of problems, but those stresses were put into perspective in a big way for me last week when I attended two funerals.

When people say life is short they’re usually talking about living until you’re in your eighties, so when you are at a two-year-old child’s memorial service, it’s just not right on any level.

Mason was just two when he came to stay at our farm a few weeks ago with his mum and dad and five-year-old brother Weslley. . . 

Rubbish boosts tasty delicacy – Alan Williams:

Saffron growers and wine-makers are among the businesses swearing by the benefits of organic compost made from Christchurch city’s green waste.  

Te Anau saffron growers Steve and Jo Daley were even prepared to pay up to $2500 a load to get compost trucked the 650km from the Living Earth processing plant at Bromley.  

The Living Earth market was 95% rural based, included pastoral and cropping farmers and the rural sales were 85% repeat business, the company’s rural and urban sales manager Graeme Wright said.  

The Daleys were determined to be organic growers and the cost was worth it for them, with the consistency of the compost and its ability to hold its properties through a hot, dry summer. . . 

Plant-based alternative milk consumption growing in Australia as dairy industry holds firm – Marty McCarthy:

Dairy milk has been flying off the supermarket shelves as consumers continue to sympathise with Australia’s dairy farmers, following the Murray Goulburn crisis.

But so-called “alternative milks” are rising in popularity, and new research shows consumers are increasingly lapping them up.

Supermarkets now stock a range of plant-based milks, including soy, almond, coconut, hazelnut, rice, oat and more recently, macadamia milk.

“While the incidences of lactose intolerance have been increasing there have also been food trends that recommend avoiding cow’s milk,” IBISWorld analyst Lauren Magner said. . . 

Rabobank Global Wine Quarterly Q4 2016: Red Dawn? Behind the Rise in Australian Wine Grape Prices:

Australia takes the pulse of wine grape markets, while the Northern Hemisphere harvest appears set to fall on the short side, and China headlines developments in global wine trade, according to Rabobank’s Global Wine Quarterly for Q4 2016.

The Australian wine grape industry has experienced a ‘red dawn’, with prices rising from their 2011 lows, particularly for red wine grape varieties sourced from more premium growing regions. Rabobank senior analyst Marc Soccio says: “Life has returned to Australian wine grape prices, with China driving much of the recovery in market conditions.”

Highlighting the key role of the China/Hong Kong market in Australia’s wine grape price recovery, the performance of the Chinese market remains a key barometer of future red wine grape market condition. The premiumisation trend in other major markets is also a factor, namely in Australia’s domestic market, as well as in the US and Canada. . . 

Nominations Have Closed for the 2016 Fonterra Elections:

Nominations for the Fonterra Board of Directors’ Independent Nomination Process candidates and the Shareholders’ Council, Directors’ Remuneration Committee, and Fonterra Farmer Custodian Trustee elections closed at 12 noon today.

The candidates successfully nominated following the Independent Nomination Process will be announced on Friday 4 November, 2016. The full list of candidates, including Self-Nominated candidates for the Fonterra Board of Directors’ Election will be announced by Wednesday, 16 November 2016. . . 

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Do not cross this pasture unless you can do it in 9 seconds, because the bull can do it in 10.

 


Rural round-up

July 22, 2016

Agriculture could be included in Emissions Trading Scheme – Kate Gudsell:

The Treasury has raised the possibility of agriculture being included in the Emissions Trading Scheme (ETS) after years of being exempt from charges.

The move is suggested in a March Treasury briefing to Finance Minister Bill English and his two associates Steven Joyce and Paula Bennett.

The briefing outlines the financial risk the government faces from scrapping the one-for-two scheme – a 50 percent subsidy for polluters which meant they paid half the value of their greenhouse gas (GHG) emissions. . . 

Local government needs you:

With nominations for this year’s local authority elections opening on Friday, Federated Farmers is calling on farmers and other business-minded people to consider standing for election.

Federated Farmers’ Local Government spokesperson Katie Milne said it’s  vitally important that we get good candidates to put themselves forward.

“Being a councillor is a challenging role but farmers can make a real difference on councils as they can inform and educate their colleagues and staff about what happens on-farm. . .

Battle for our Birds 2016 operations begin:

The largest pest control operation in New Zealand’s history has been launched today by Conservation Minister Maggie Barry.

Battle for our Birds 2016 will protect our nation’s most vulnerable native species from the potentially catastrophic explosion of rats and stoats in New Zealand forests as a result of a beech mast event.

At an event at Bob’s Cove near Queenstown today Ms Barry announced aerial 1080 drops have been confirmed for 19 sites covering more than 720,000 hectares of high value land. . . 

Meat exporters facing foreign exchange headwinds:

Meat Industry Association Chief Executive Tim Ritchie says uncertainty in the EU as a result of Brexit is one of the causes of a higher exchange rate, which will significantly affect prices our exporters receive in the European market. This, in turn, affects the prices meat processors can pay farmers for their livestock. Volatility in exchange rates has already had a significant impact on meat exporters, which led to eroded margins in the last season.

This year, the volatility looks like it will get worse. A year ago, a NZD was worth 0.43 GBP, but is currently 0.53 GBP, with the NZD rising sharply against the GBP since the Brexit referendum.  . . 

Rabobank Global Wine Quarterly Q3: Opportunities for wine supply and trade in South-East Asia:

Markets in South-East Asia are calling out to be explored, as opportunities in the region lie beyond China and Japan. Meanwhile, the short South American harvests and the Brexit are leading developments in global wine supply and trade, according to the Rabobank Global Wine Quarterly Q3 2016.

‘Other’ Asia

Headwinds for wine consumption in South-East Asia still dominate the outlook in the near term, however opportunities are nevertheless apparent, and some positive longer term fundamental drivers are present should the necessary catalysts set them in motion.. . .

LIC full year result 2015-2016:

Farmer-owned co-operative, Livestock Improvement Corporation (NZX: LIC), has announced its result for the year ending 31 May 2016.

The financial result is summarised below with background information attached to NZX, including Chairman Murray King’s letter to LIC shareholders.

Revenue: LIC revenue from ordinary activities was $205 million and including other income from grants, totals $211 million, 9% down on the total $232 million achieved during 2014-2015. Lower milk prices have impacted on-farm buying decisions, as many farmers look to reduce costs and indeed go into survival mode through the difficult financial times facing dairy farmers. . .

How the EU Budget is spent – Common Agricultural Policy – Gianluca Sgueo, Francesco Tropea and Marie-Laure Augere-Granier:

With 52% of the European Union (EU) territory classified as predominantly rural, more than 170 million hectares of agricultural land, and 113 million people (nearly one quarter of the EU population) living in rural areas, the Common Agricultural Policy (CAP) represents one of the largest shares of expenditure from the EU budget. The CAP pools European Union resources spent on agriculture to protect the viable production of food, the sustainable management of natural resources, and to support rural vitality.

The CAP consists of two ‘pillars’, the first includes direct payments (i.e. annual payments to farmers to help stabilise farm revenues in the face of volatile market prices and weather conditions) and market measures (to tackle specific market situations and to support trade promotion). The second pillar concerns rural development policy and it is aimed at achieving balanced territorial development and sustaining a farming sector that is environmentally sound, as well as promoting competitiveness and innovation. . .  (Hat Tip – Utopia)

Wool Market Steady:

New Zealand Wool Services International Limited’s CEO, Mr John Dawson reports that the North Island Wool Auction received revived support this week with an improved 81 percent of the 5700 bales selling.

The weakening NZ dollar across the board saw the weighted currency indicator fall 4.22 percent. Despite these positive factors, local prices were still below last week’s South Island auction, but only marginally under the last more comparative North Island selection. . .


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