Rural round-up

May 11, 2017

Dairy Awards highlight immigrant commitment:

The value of new immigrants to the dairy industry was on show at the Dairy Industry Awards in Auckland last night.

Federated Farmers Dairy Chairman Andrew Hoggard says while immigration builds as an election issue, it was particularly significant that runner up to the most prestigious award were 33 year-old Filipino immigrants Carlos and Bernice Delos Santos.

The couple have worked their way up through the dairy industry and are a shining example of the significant contribution and leadership our immigrants can provide. They also won the Ecolab Farm Dairy Hygiene merit award. . .

Remuneration survey finds modest lift in farm employee salaries:

There has been a modest rise in farm employee salaries over the last 12 months, the 2017 Federated Farmers-Rabobank Farm Employee Remuneration survey shows.

The mean salary for employees on grain farms increased by 2.3 per cent since the 2016 survey, while the mean salary increased by 1.8 per cent and 0.3 percent for employees on sheep and beef and dairy farms respectively.

The survey was completed earlier this year and collected information from 914 respondents on 2834 positions.

Federated Farmers employment spokesperson Andrew Hoggard said it was positive to see farming salaries creeping upwards given the tough economic conditions experienced by farmers in recent years. . .

Sheep and beef farmers make biodiversity contribution through QE11 covenants:

New Zealand sheep and beef farmers are making a significant contribution to this country’s biodiversity and landscape protection, a new study on Queen Elizabeth 11 National Trust covenants has highlighted.

The study by the University of Waikato Institute for Business Research quantifies the financial commitment made by landowners who have protected around 180,000 ha since the Trust was established in 1977.

Beef + Lamb New Zealand Chief Executive, Sam McIvor said the report showed that two thirds ofQEII covenants are on primary production land, with 47% of all covenants being on sheep and beef farms. Some farms have more than one covenant and many farmers open their covenants to the community, often partnering with schools and local community groups. . .

Farmers take a lead in environment protection

Farmers’ environmental credentials have been under attack from some quarters of late but new research highlights just one way those who work the land also strive to look after it.

Federated Farmers welcomes a study by the University of Waikato Institute for Business Research that highlights the impact and costs of land placed under covenant via the QE II National Trust.

“Farmers have been front and centre in the activities of the QEII National Trust right from the start. We congratulate them on their 40th anniversary, and for commissioning this study,” Federated Farmers environment and water spokesman Chris Allen says. . .

New fund launched to support QEII covenantors

A new fund to help covenantors with the management of their covenants was launched today by QEII National Trust Chair, James Guild, at an event hosted by Rt Hon David Carter at Parliament’s Grand Hall.

The Stephenson Fund for Covenant Enhancement aims to support covenantors with strategically important enhancement projects they have planned for their covenants. . .

Irrigation funding for Kurow Duntroon welcomed:

Primary Industries Minister Nathan Guy has welcomed $388,000 in new development grant funding for the Kurow Duntroon Irrigation Company (KDIC) from Crown Irrigation Investments Ltd.

“This grant is an important step forward for this project which could have major benefits for the North Otago region,” says Mr Guy.

The funding is required to complete the remaining work to reach construction commencement and confirm the commercial viability of the proposed scheme. . . 

New national body to represent Rural Support Trusts:

Minister for Primary Industries Nathan Guy has welcomed the election of a national body to represent all 14 Rural Support Trusts across the country.

“Rural Support Trusts do fantastic work supporting our rural communities in tough times, and this new central body will make them more efficient and effective,” says Mr Guy.

“It will provide single point of contact for other national organisations and the Government, and help the different regions share resources and experience.

“Rural Support Trusts operate independently in their areas, staffed by local people who really know their local communities. . .

Moving Day: need to know:

It’s a familiar date in the dairying diary, Moving Day, and here’s what herd owners need to know to meet their NAIT and TBfree requirements when moving their dairy herd to a new farm.
· Update contact details and record stock movements in NAIT
· Check the TB status and testing requirements of the destination area . . 


Rural round-up

May 8, 2017

Finding alternatives to dairy – Keith Woodford:

New Zealand dairy production has increased by 80% since Year 2000. This has come almost equally from both more dairy hectares and more production per hectare. However, the limits to pastoral dairying in New Zealand have largely been reached. Where do we go from here?

First, there is a need to recognise the two reasons why pastoral dairying has largely reached its limits.

The most important reason is that society is no longer willing to accept the effects of cow urine leaching from pastures into waterways and aquifers. Huge progress has been made in fencing off livestock from waterways, and in tree planting alongside the streams, but that does not solve the problem of the urine patch. This 2013/14 year is therefore the last year of large-scale conversion of sheep and beef farms to pastoral dairying. New environmental regulations have effectively closed that door. . .

Lifting water quality and profit too – Nicole Sharp:

Southland farmers are continuing to be proactive when it comes to changing regulations within Environment Southland’s Water and Land Plan. Mid-Oreti and Hedgehope farmers held a catchment field day recently to discuss the plan and what more they could do on farm to continue to improve water quality. Nicole Sharp reports.

How can you make looking after the environment profitable?

That was the hot topic at the mid-Oreti and Hedgehope catchment field days recently, where farmers gathered to discuss Environment Southland’s Water and Land Plan and what more they could do. . . 

Farmers hold back wool from auction in weak market  – Tina Morrison

(BusinessDesk) – Less wool than forecast was offered at New Zealand’s weekly auction as farmers held back bales from sale in a weak market.

Just 6,821 bales were put up for sale at yesterday’s South Island auction after 11 percent of the expected bales were withdrawn before the sale started, according to AgriHQ. Even with the low number of bales on offer, the clearance rate fell 2 percentage points from last week’s auction to 73 percent, lagging behind last year’s levels, AgriHQ said. . . 

Comvita shares slump 9.4% on Deutsche Bank downgrade, news of Myrtle Rust in NZ  – Paul McBeth:

 (BusinessDesk) – Comvita shares sank 9.4 percent as investment analysts cut their valuation for the manuka honey products maker, coinciding with yet another problem out of the Te Puke-based company’s control with the discovery of Myrtle Rust in the Far North.

The shares fell as low as $6.07 in early trading today, the lowest since Jan. 23, and were recently down 65 cents to $6.25 after Deutsche Bank cut its price target for the stock to $7.05 from a previous target of $9. Deutsche Bank owns a stake in broking and research firm Craigs Investment Partners, whose executive chairman Neil Craig also heads up Comvita’s board. .. 

New South Wales agricultural region showcased to leading New Zealand and Australian farmers:

Puketapu beef finisher Rob Pattullo was one of nearly 50 leading farmers from across New Zealand and Australia to tour North-western New South Wales recently.

Hosted by specialist agricultural bank, Rabobank, the tour group gathered to visit some of the region’s most progressive farming businesses. . . 

Harraway Sisters Help Celebrate 150 Years of Harraways Oats

New Zealand’s iconic oats company, Harraways, is celebrating 150 years of providing Kiwis with delicious oats.

Since 1867, Harraways has been operating from its original site in Green Island, Dunedin and remains privately owned.

With humble beginnings as a small family business producing flour for the growing population of Dunedin, oats weren’t the company’s sole focus at the time. Replacing the old method of stone grinding flour with an oat roller milling plant in 1893, a thousand tonnes of oats were produced in the first year, expanding Harraways into the breakfast cereal producer that they are well-known as today. . . 

Star gazing tours and new pools are ‘hot’ attractions at Tekapo Springs:

The introduction of star gazing tours married with the launch of new pools have put Tekapo Springs firmly on the global tourism map. 

Star gazing tours in one of the world’s top ‘clear sky’ locations was launched by Tekapo Springs in New Zealand’s Mackenzie country just two months ago, taking viewing the Southern night sky to whole new levels. . . 

 Manuka Health unveils $3.5 million Wairarapa Apiculture Centre
Minister for Food Safety officially opens state of the art processing plant:

Leading honey manufacturer Manuka Health has today officially opened its expanded national apiculture business after a $3.5million build that will significantly expand the organisation’s export capacity.

Joining CEO John Kippenberger, the Minister for Food Safety Hon David Bennett opened the Manuka Health Wairarapa Apiculture Centre in an event attended by MP for the Wairarapa, Alastair Scott; Mayor John Booth of Carterton District Council; Chief Executive of Carterton District Council, Jane Davis; industry and government representatives; neighbours; beekeeper partners; site design and build companies; and Manuka Health staff. . .


Rural round-up

May 4, 2017

$30m Maori investment in kiwifruit – Pam Tipa:

$30 MILLION will be invested in building 10 kiwifruit orchards on Maori land in the Bay of Plenty and Gisborne over the next 18 months, says entrepreneur Te Tumu Pairoa, in partnership with Quayside Holdings.
In the single-largest kiwifruit investment ever made on Maori land, at least 90ha of semi- and unproductive land will be converted into grower businesses.

Te Tumu Paeroa has developed a unique model for the enterprises, to allow full ownership of the orchards to transfer to landowners in an estimated 12-17 years after achieving a targeted rate of return on capital invested. . .

Young auctioneer takes on Australia:

Twenty-two year old Kurow man Madison Taylor had a busy week at the Sydney Royal Easter Show recently — not only was he representing New Zealand as a bareback rodeo rider, he was also representing his country as New Zealand’s top young auctioneer.

Taylor won the Heartland Bank Young Auctioneer of the Year title at the Canterbury A&P Show in November.

Part of his prize was a trip to Sydney to get involved with the Australian Livestock and Property Agents Association’s equivalent competition at the Royal Show. . .

Meat exports to fall this season – Hugh Stringleman:

The Beef + Lamb New Zealand Economic Service has forecast 2-3% reductions in lamb and beef export revenue this season despite rising world prices.

The meat processing season was well advanced and the recent rises in prices would not bring out any more livestock for slaughter or boost the season-long revenues above those of last year.

Lamb revenue for 2016-17 was forecast to be $2.53 billion, down 2.1% from the previous season. . .

Sheep and beef profit up 12% – Hugh Stringleman:

A 12% increase in sheep and beef farm profit expectations because of good livestock feeding conditions and higher lamb and beef prices is being forecast by Beef + Lamb New Zealand’s Economic Service.

It published a mid-season update for 2016-17 incorporating its predictions for the season as a whole in lamb, beef, wool and the average sheep and beef farm accounts. . .

Ploughing expertise put to the test – Alexia Johnston:

Dedicated ploughers will be eyeing up a place on the national stage when the next New Zealand Ploughing Championships qualifying event takes place in Timaru.
The top performers will compete in the nationals at Thornbury next year.

But first, they must perfect the art of creating straight furrows on a local level.

To do that, contestants will compete in one or more of four classes atthe Timaru event — conventional ploughing, reversible ploughing, vintage ploughing and horse ploughing. . .

Sheep breeding just one talent – Sally Rae;

Stuart Albrey is a man of many talents.
He’s a sheep-breeding, gymnastics-coaching school teacher who is also handy with a pair of knitting needles and a spinning wheel.

”I’d do brain surgery if they’d let me. I’d put my hand to anything,” he quipped during the Black and Coloured Sheep Breeders Association of New Zealand’s conference in Oamaru last week.

Mr Albrey and his wife Sue have 450 Polwarth, merino, Romney and Corriedale sheep on their property at Arno, near Waimate, of which about one-quarter are white. . .

Bridging the urban-country divide:

Seven city teenagers – from Riccarton, Hillmorton and Cashmere High Schools in Christchurch – last week got a taste of ‘life on the land’, spending a week with four farming families in the Central, Mid and South Canterbury regions.

The visit was part of an innovative Farm Experience (FX) Program, developed by agribusiness banking specialist Rabobank to help bridge the ‘urban/rural divide’, giving city teenagers the opportunity to spend a week on-farm, living with a farming family and learning about life on the land and food production.

This was the first FX Program to be held in New Zealand. . .

 


Rural round-up

April 20, 2017

Good PR is a self-help exercise – Neal Wallace:

A united agricultural sector needs to promote itself by telling positive farming stories, public relations expert Deborah Pead says.

Industries such as dairy were constantly under scrutiny and having to defend themselves when the correct strategy was to get in first and tell the public what they were doing to address those concerns.

“It is hard to argue when you see a river dried up and farmers are flat-out irrigating but what is the solution? What are farmers doing about it?” . . 

High country community divided by fence plan – Conan Young:

Green groups are outraged at a plan to spend ratepayer money on a fence that would allow iconic high country land to be more intensively farmed.

The 6km fence is proposed for Flock Hill Station, which is leased by a US-based company and contains scenery made famous in 2005’s The Lion The Witch and the Wardrobe.

Until now, Coast Range Investments has only been allowed to graze it in a low-level way, so as to have a minimal impact on the landscape and its environment. . . 

Water Fools? – Greening of Mackenzie – Kate Gudsell:

It’s the closest thing New Zealand has to a desert. The Mackenzie Basin landscape is not replicated anywhere else in the country, let alone the world, and it is being changed irreversibly.  

Not just the land is being changed, the once-pristine lakes are showing signs of strain too.  

The area has been at the centre of a 10-year court battle after farmers and landowners opposed tougher development rules proposed by the Mackenzie District Council.  . . 

Stable milk price crucial for strong farming season – Sally Rae:

Rabobank is picking a farm- gate milk price around $6.25 for the 2017-18 season, as it says a figure in that area would finally allow dairy farmers to ”emerge from the woods”.

Global dairy prices were now better balanced than at the start of this season.

This was likely to flow through and create largely stable commodity pricing in the new season, a bank report said.

However, despite the improved market balance, the possibility of further lifts to the current season milk price was limited, report author and Rabobank dairy analyst Emma Higgins said.

The price rally experienced since the second half of 2016 had ”some of the gloss” removed, with stronger-than-anticipated New Zealand production impacting on prices.

Job Seekers drawn to plant – Sally Rae:

Hordes of job seekers from Nelson to Dunedin – including a group of Cadbury employees – converged on Fonterra’s Clandeboye site for a recent recruitment day.

A $240 million mozzarella plant development at the South Canterbury site is under way, creating full-time employment for a further 100 people.

There was a “fantastic” response to the recent recruitment day, with between about 1500 and 2000 people attending. That led to about 700-odd applications for the roles, operations manager Steve McKnight said.

The mozzarella plant, the third at Clandeboye, was the single largest food service investment in the history of New Zealand’s dairy industry. . . 

Cervena seeks its place in the sun – Annette Scott:

Marketing Cervena venison as a lighter summer eating option in Germany will be a challenge but it’s a move Deer Industry New Zealand has confidence in, venison marketing manager Marianne Wilson says.

Deer Industry NZ (DINZ) had begun marketing Cervena in Germany during the northern hemisphere summer as part of a market development trial. While relatively small the trial was symbolically important, Wilson said.

Traditionally the deer industry had been heavily reliant on sales of venison to the German game trade which was highly seasonal, with demand and prices peaking in the northern autumn and winter. . . 

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Rural round-up

April 7, 2017

NZ could miss out on gene-editing revolution – Richard MacManus:

Is the gene editing revolution passing New Zealand by?

New Zealand is a proudly GE-free country, meaning it is illegal to produce or sell genetically engineered foods here. There are some exclusions for processed foods that have imported GE ingredients, like soy or corn flour, but they must be approved by a local authority and clearly labelled. However, there is zero tolerance for GE in fresh foods – including foods bound for export. Considering that New Zealand’s “clean green” brand is a key part of our export trade, it makes sense that GE foods are treated with caution here. But are we being too conservative, given that a new technology called CRISPR is opening up opportunities for both our economy and our environment.

CRISPR (pronounced crisper) has made gene editing nearly as simple as editing a website. Tools like CRISPR-Cas9 allow scientists to edit parts of a genome by removing, adding or altering sections of its DNA sequence. It is truly a brave new world. . . 

Objective carcase measurement – essential or just nice to have Allan Barber:

Objective carcase management (OCM) appears to be the holy grail for Meat and Livestock Australia judging by its plan to seek A$150 million from the Australian government to fund the installation of Dual Energy X-ray 3D carcase grading technology (DEXA) in up to 90 slaughterhouses, intended to roll out this year. The loan would be repaid from industry levies, although there are no firm details yet about how the costs would be shared.

When MLA announced Project 150 in November 2016, the Beef and Sheep Councils of Australia were both in favour, but the executive officer of the Australian Beef Association came out saying it shouldn’t be the producers but the processors who paid for it. More recently both the processor funded Australian Meat Industry Council (AMIC) and levy funded Meat Processor Corporation (AMPC) have come out against rushing into such an expensive project without proper analysis and a robust business case. . .

Taking aim at Fish & Game over conflict of interests – Andrew McGiven:

I saw that Fish & Game held a national “take a kid out fishing day” a few weeks ago. While I applaud anyone who can encourage our children to ditch the video games and get outside to experience the great outdoors, it did raise several questions.

Why, for example, are we trying so hard to improve the health of our fresh waterways when the likes of Fish & Game are paid to protect invasive, predatory species such as trout and salmon, which actively decimate our native species such as koura (New Zealand freshwater cray)?

When sediment is such a major component of our water degradation, why is it that koi carp can pillage our river systems, collapsing river banks and stirring up soil, and yet this problem has been largely ignored by the organisation. 

It is discouraging when farmers work hard at establishing wetlands and native groves only to have them poisoned in a few short years by wildfowl E. coli. . . 

Rural women make a huge contribution to agriculture – Sonita Chandar:

Fiona Gower is a true “Rural Woman” having lived and worked in the rural sector most of her life.

As the new president of Rural Women New Zealand (RWNZ), she has set herself several goals to accomplish during her term.

Her greatest aspiration is for RWNZ to be seen as the organisation of choice within the wider sector for all women, communities, organisations and decision makers. . . 

Heightened readiness for Stink Bug threat:

Primary Industries Minister Nathan Guy says activities to prevent the establishment of the Brown Marmorated Stink Bug (BMSB) have ramped up over summer and helped raise public awareness of what is a serious biosecurity threat.

“This is a major agricultural pest worldwide, as well as a household nuisance. While it is found here from time to time, if it became established it would have significant economic and social impacts,” says Mr Guy.

“BMSB has been rapidly spreading across the world and there have been increasingly more finds detected at the New Zealand border. Three confirmed post border finds occurred during February, all reported by members of the public. . . 

Brazil intent on expanding beef markets in Asia, as Australian sector urged to differentiate itself – Lydia Burton:

A senior Rabobank economist says the Australian beef industry should continue to focus on differentiating its products as Brazil expands its markets in Asia.

Brazil took over from Australia as the largest exporter of beef to China in 2016, offering a cheaper protein, and has strong interest in South Korea and re-opening trade with Japan.

Japan suspended Brazilian beef imports in 2012 after it was found an animal had died of mad cow disease.

Indonesia has also been expressing interest for some years in opening up a live cattle trade with Brazil, with biosecurity protocols currently being discussed. . . 

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Rural round-up

April 6, 2017

Good trade news for red meat – let’s hope it happens quickly – Allan Barber:

The visit by Chinese Premier Li Kequiang has been very positive in several ways for New Zealand’s trade agreements, except for those people who are anti free trade or closer engagement with China (Winston Peters?). After the excitement about the announcement in April last year during the John Key led trade mission, progress on chilled red meat access to China and an upgraded FTA appeared to have gone onto the back burner, until now.

Progress was always going to be slower than the optimistic predictions, because nothing like this happens quickly without extensive discussions between officials about technical issues and, in the case of chilled meat, rewritten protocols and plant certification. Another issue to resolve was the need for marketing and distribution relationships to be established with particular emphasis on the cool chain. . . 

Dairy farmers committed to lowering environmental impact – Katrina Knowles:

Taranaki dairy farmers have planted native species along 5760 kilometres of waterways on their farms. This is the equivalent to a journey from Cape Reinga to Bluff, and back to the steps of Parliament in Wellington, with a few plants to spare.

Dairy farmers, not just in Taranaki, but also throughout the country, are committed to lowering the environmental impact of dairying, while protecting the valuable contribution they make to the economy.

Dairy farming is a major driver in the New Zealand economy, improving everyone’s lifestyle in this country. This is both directly and indirectly, and in rural and urban communities. . . 

Feedback big part of dairy awards – Sally Rae:

Entering the Southland-Otago Dairy Industry Awards was not about winning for Clydevale sharemilkers Russell and Tracy Bouma.

Rather, it was an opportunity to get feedback from judges to help them grow their business, Mr Bouma said.

The couple recently won the Sharefarmer of the Year title at the regional awards function in Invercargill, collecting $20,065 in prizes.

They sharemilk 762 cows on Andrew, Owen and Barbara Johnston’s 270ha farm and it was the fourth time they had entered the awards. They have been sharemilking since 2002.

Every time they had entered, they had been able to implement some of the feedback from the judges, Mrs Bouma (37) said. . . 

Protecting vulnerable native species with 1080 gets results:

Conservation Minister Maggie Barry says successful breeding results for several of our most vulnerable native birds come as a result of using 1080 to kill predators.

“New results from a five-year study of South Island kākā nesting at Lake Paringa in South Westland show 30 times as many kākā chicks were produced and survived in the area after 1080 treatment to control stoats and possums compared to the area where no 1080 was used,” Ms Barry says.

“Put another way – 55% of kākā nests were successful up to a year after 1080 treatment but only 1.75% were successful where the compound was not used. 97% of adult kākā survived in 1080 treated areas.” . . 

Zespri reports strong interest in bidding round for Gold3 licenses – Rebecca Howard:

(BusinessDesk) – Zespri International reported strong interest in a bidding round for 400 hectares of new Gold3 or SunGold variety kiwifruit licences and said its shares will resume trading on Friday.

The kiwifruit marketer said it received 938 bids of which 235 were successful, and will reap $98 million of revenue from the allocation, excluding GST. The average size of the successful bids was 1.7 hectares. The SunGold variety has proven popular as it is more resistant to the Pseudomonas syringae pv actinadiae bacteria, better known as PSA, which decimated the industry some six years ago. By the end of June 2012, more than 35 percent of New Zealand kiwifruit orchards were infected. SunGold, first commercialised in 2010, was key to the sector’s recovery. . . 

Ashburton dairy farmer takes the helm at Canterbury A&P:

Dairy farmer Peter Gilbert was elected as President of the Canterbury Agricultural and Pastoral Association for 2017 at the Annual General Meeting held at Riccarton Park Racecourse on 29 March.

Based in Winchmore, near Ashburton, Mr Gilbert was confirmed as the President of the 155th Canterbury A&P Show in front of outgoing President Warrick James, the General Committee and Association Members.

Mr Gilbert said he was looking forward to his Presidential year after a long association with Canterbury A&P. . . 

Anmum Releases Its First Batch of QR Coded Cans in NZ:

Parents Can Trace Product Journey as Anmum Releases Its First Batch of QR Coded Cans in NZ

Consumers now have their first touch point with Fonterra’s traceability in New Zealand through QR codes on Fonterra’s paediatric range, Anmum.

The QR codes are part of a programme to track and trace ingredients and products electronically throughout Fonterra, from the raw milk source on farm right through to retailers who sell the product to consumers.

Unique for every Anmum can, the QR code connects consumers via a mobile phone app to a webpage with information which verifies the authenticity of the product and its batch number. Consumers can also scan the can at any stage after they have bought it and get up to date status information about their product. . . .

Positive outlook for forestry sector:

Associate Primary Industries Minister Louise Upston has welcomed new forecasts showing forestry export revenue set to rise further over the next two financial years.

The Ministry for Primary Industries’ first quarterly update of its Situation Outlook for Primary Industries shows forestry export revenue is forecast to rise 5.8 per cent to $5.4 billion for the year ending June 2017, and a further 8.8 per cent to $5.9 billion in the year to June 2018.

“Rising log exports are behind this positive forecast, with a strong demand from China due to its expanding housing market. This, combined with low shipping costs, has driven harvesting to record levels,” Ms Upston says. . . 

Rabobank’s dairy analyst Emma Higgins on today’s GDT Event result:

The spread in pricing between fats and proteins are at record levels. AMF lifted 2.5% to USD 5,936/tonne (the highest average price for AMF in GDT history) and although butter lost ground by 1.6%, the average price at USD 4,751 is still the second highest average price in the history of butter offerings on GDT. Given low SMP pricing dynamics, coupled with lower global milk production, low fat stocks are underpinning outstanding fat prices.

Looking at the powder front, WMP prices lifted a modest 2.4% to USD 2,924 /tonne. Some price support has come from lower auction volumes this time around, with 20% less on offer overnight compared to the last auction. While SMP moved a fraction lower (-0.8%) to USD 1,913/tonne, a sizable 50% increase in SMP offer volumes makes the result overnight seem very positive indeed. . .

Farmers to see changes to farmhouse deductibility:

With farmers spending an increasing amount of time in the office, or at the kitchen table as the case is for many farmers across New Zealand, the changes to the deductibility of farmhouse expenses may come as a surprise. “With changes impacting farmers for the 2017/2018 financial year, it is important they take the time to find out how the changes could affect them,” Tony Marshall, Agribusiness Tax Specialist for Crowe Horwath points out.

Since the 1960s the IRD has allowed full-time farmers a deduction of 25% of farmhouse expenses without any evidentiary support. Inland Revenue Group Tax Counsel Graham Tubb says that this has allowed some farmers to claim deductions for private spending. . . 

Anchor Food Professionals Opens Sri Lanka’s First Dairy Innovation Kitchen:

Sri Lanka’s foodies are set to receive a delicious boost to their out-of-home dining experience, with Fonterra’s opening of the country’s first dairy innovation kitchen for the foodservice industry.

With increased urbanisation and more Sri Lankans eating out of home, Colombo, a city with more than two million people, is seeing new international hotel chains, restaurants, bakeries and other food outlets spring up around the city.

To cater to the growing interest in out-of-home dining, Fonterra’s foodservice business, Anchor Food Professionals, has opened an innovation kitchen in the city to trial new dairy products and work with chefs to develop new recipes and flavours that suit the tastes of Sri Lankan consumers. . . 

Carrfields seeds produce second world record grain crop:

 An Ashburton farmer’s record-breaking wheat crop is the second world record grain yield to be produced from Carrfields seeds in two years.

Eric Watson’s February 2017 harvest of 16.8 tonnes a hectare, grown from Carrfields’ winter wheat variety Oakley, has just made the Guinness World Records list for highest wheat yield.

It follows the world record for the highest yielding barley crop, set by Timaru growers Warren and Joy Darling in January 2015. The Darlings broke the previous 25-year-old record with a yield of 13.8 tonnes a hectare from Carrfields’ variety 776.

Carrfields’ Cereal Seed Product Manager, Phil Smith, said he was thrilled to see two world records set in Canterbury in a short space of time. . . 


Rural round-up

April 3, 2017

NZ red meat sector must pursue both ‘value and volume’ growth into China:

The New Zealand red meat sector must focus on creating greater value from its exports into China, as the rate of import growth slows in this major export market, according to new research from Rabobank.

In its recently-released report, China’s Animal Protein Outlook to 2020, the specialist global agribusiness bank says while Chinese imports of sheepmeat and beef will continue to grow out to at least 2020, the rate of growth will not be as rapid as it has been in the past.

In addition, says Rabobank animal proteins analyst Blake Holgate, as China has continued to open its market to New Zealand’s competitors in recent years, the NZ red meat sector no longer enjoys the same unique competitive advantage it had when it was the first developed country to enter into a free trade agreement with China in 2008. . . 

Rural doctor shortage: GPs considered ‘lesser beings’ – Joanne O’Brien:

For 25 years, Dr John Burton has been a lifeline for people in the isolated Waikato community of Kawhia, but, he says, GPs are considered “lesser beings” so job training is not producing good doctors for rural areas.

He said being the only doctor within an hour’s drive might deter some, but it made life fun.

“One of the things that often puts people off coming to a place like Kawhia is you’re always on call and anything can happen.

“Yet if I look back over the years I’ve had here, the times I’ll be remembering will probably be the times when, yes, I delivered a baby in the back of the ambulance or somebody was in a life-threatening condition.” . . 

Cows could infect humans with different strain of leptospirosis – Alexa Cook:

About 30 percent of New Zealand’s dairy herds pose a risk of infecting humans with a different strain of Leptospirosis not covered by the existing animal vaccine, a study has revealed.

People can pick up the disease if they come into contact with cow urine and rodents. It can lead to serious illness or death.

Leptospirosis is the most common zoonotic occupational disease for farm and abattoir workers. In the past year cases of the disease have jumped by nearly 50 per cent, compared to 2015.

The Massey University study, which started in 2015 and is government funded, collected blood and urine samples from 200 dairy farms. . . 

Fonterra produces a solid half-year set of results but it is not all plain sailing ahead – Keith Woodford:

Fonterra has produced a solid set of results for the first half of the 2016/17 season, with after-tax profit up two percent to $418 million.

Results were broadly in line with market expectations. Prices for Fonterra units had been drifting down on the NZX in the weeks prior to the announcement from a high of $6.39 to $6.20 and lost another five cents over the following two days down to $6.15.

As always, the half-yearly and annual reports from Fonterra are a masterful exercise in communication. It takes effort to scratch beneath the surface to figure out what the numbers are really telling us. . . 

Cervena to be marketed in Germany:

Cervena venison is to be marketed in Germany during the northern hemisphere summer as part of a market development trial.

Deer Industry NZ (DINZ) venison marketing manager Marianne Wilson says the trial, while relatively small, is symbolically very important. Traditionally, the deer industry has been heavily reliant on sales of venison to the German game trade which is highly seasonal, with demand and prices peaking in the northern autumn and winter, she says.

“Marketing Cervena venison there as a lighter summer eating option, suitable for grilling, is a challenge but it’s a journey we want to begin. Chefs across Europe are now showing more interest in innovative summer menu items, so the timing is positive.” . . 

NZ exporters gain access to international agfood innovations portal:

The FoodHQ Innovation Club has become a partner of World Food Innovations, an internationally recognised online portal that profiles innovative agfood solutions to attract global business.

The FoodHQ Innovation Club helps food and beverage companies tackle the multiple challenges associated with innovating their products and businesses to meet consumer demands in New Zealand and overseas. It provides one-door access to 2,200+ researchers, leading-edge knowledge, and innovation tools from internationally recognised research and innovation organisations.

WorldFoodInnovations.com, an initiative by Food Valley, the Netherlands, was established in 2016. Food Valley has built up a deep insight into the challenges of the agrifood industry and vast network of companies and knowledge institutions that can help to tackle these challenges effectively. . . 

Rabobank NZ annual profit falls 14% on higher provisioning for bad dairy debt – Paul McBeth

(BusinessDesk) – Rabobank New Zealand posted a 14 percent decline in annual profit last year as the rural lending specialist boosted its provisioning for bad debts in the face of the dairy slowdown.

Net profit fell to $89.5 million in calendar 2016 from $104 million a year earlier, the Wellington-based lender said in a statement. The decline in profit was largely due to the bank booking $15.1 million in impairment charges on bad debt. In 2015 Rabobank booked a $5.6 million gain, writing back the value on impairments. Net interest income edged up 2.6 percent to $251.3 million, outpacing a 2.2 percent increase in the size of Rabobank’s NZ net loan book to $9.65 billion. . . 

Dairy – the new cream of choice in China:

For chefs across China, it’s out with the old mock cream and in with the UHT cream as Fonterra ups capacity to meet growing demand.

UHT cream, one of Anchor Food Professionals top selling products, is fast becoming the cream of choice for chefs in China and other parts of the world as they look for a product that has the freshness of pure dairy, won’t over whip and holds its shape for longer.

Fonterra has recently completed a new one litre UHT line at its Waitoa site. However, with continued growth, the Co-operative has already begun construction on a second line which will produce an additional 45 million litres each year for consumers across Asia, the Middle East and the Caribbean. . . 


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