Rural round-up

August 26, 2018

NZAgbiz launches first electrolyte product:

Developed by NZAgbiz in conjunction with leading veterinary scientists, Novolyte has been formulated to replace fluids lost due to scouring, treat dehydration and exhaustion and help calves recover from stressors such as transportation.

NZAgbiz is a Fonterra business unit that manufactures livestock nutrition products using primarily Fonterra ingredients, and General Manager Greg Cate says Novolyte was the logical next step in their range of scientifically formulated animal health supplements.

“All NZAgbiz products are based on solid scientific evidence and we saw the need for a high-quality electrolyte replacement to help farmers raise calves that thrive,” says Cate. . . 

Farm plans reduce N loss:

Farming practices now piloted by Mid Canterbury dairy farmers Grant and Jan Early could show other New Zealand farmers how they can successfully reduce their environmental impacts.

Earlys’ Mayfield farm is one of a small group in the Forages for Reduced Nitrate Leaching project looking for ways to cut nitrogen losses.

They have so far achieved a 20% cut in one year on their dairy support farm. The research results are made available to help farmers adopt new practices. . .

Milking it: I”m a farmer and I’m a very lucky man: – Craig Hickman:

NZ is known for its dairy products, and is home to one of the biggest dairy companies in the world. In this Stuff special investigation, we examine how the price of milk is set and explore the industry behind our liquid asset.

OPINION: Someone recently asked me why I’m a farmer and I think it’s fair to say it was something of an accident; I don’t’ come from a farming background and I had only a vague notions of what it might be like having spent a few summer holidays working on a deer farm.

I broached the idea with my parents at the end of my sixth form year, saying I would like to skip my final year of college and go work on a dairy farm, ostensibly to earn enough money to put myself through university.

My father, ever the practical man, came back to me with a counter proposal; if the object of working for a year is to save money for university, why not do something that pays real money? . . 

Hill country going well – Peter Burke:

Beef + Lamb NZ director Kirsten Bryant is concerned about the perception that hill country farmers aren’t doing well. Bryant says she and her husband have three hill country farms and financially they have never done as well as they are doing now.

Their properties are returning 5% to 8% on capital. “I don’t know where this perception that hill country farming is not profitable has come from,” she told Rural News. “For a start, let’s not forget about hill country farms that this is where the lambs are bred.

So you start focusing on hill country farming as a negative and talking it down and soon you are going to lose your breeding ewes and total lamb production,” she says. . . 

First NZ company receives Medical Cannabis license:

Hikurangi Cannabis has become the first New Zealand company to secure a license to cultivate medicinal cannabis plants.

The license issued by the Ministry of Health enables Hikurangi to breed cannabis strains that can eventually be used in medicines.

Hikurangi has secured significant investment and will now start building high tech greenhouses and processing facilities near Ruatoria on the East Coast. Hikurangi has commissioned clinical trials to start next year for the first New Zealand made cannabis medicines. . .

A2 Milk reports an a1 result while scientists work on the health benefits – Point of Order:

Revenue up   68%, profit up 116% , cash  on hand up  280% …

Those annual results are the sort most  companies’ bosses  dream of.  They are certainly are the  kind  of  results  Fonterra’s  farmer-suppliers    are  not  likely  to  hear  from  the  co-op’s  board in  this lifetime.

But  for A2 Milk’s  shareholders  they are  real.   Reporting to shareholders  (who  indeed have had a  dream run  this year), the   company this week  said revenue  reached  $922.7m,  annual profit $195.7m,  and  the sales margin  was  31%,  up  from  26% . . 

NZ pipfruit industry heading for a record 2018 crop, MyFarm says – Tina Morrison:

(BusinessDesk) – New Zealand’s pipfruit industry is headed for a record crop this year as it benefits from favourable growing weather, low Northern Hemisphere stocks, market changes, premium varieties, and a weaker New Zealand dollar, according to a report published today by MyFarm Investments.

The vast majority of the 2018 apple crop has been picked and nearly 90 percent has been exported, said MyFarm head of investment research Con Williams, who joined New Zealand’s largest rural investment syndicator last month after eight years as ANZ Bank’s agri economist. Williams said the crop is expected to have increased by 5-6 percent from last year, registering a new all-time high. . . 

Red meat sector confident despite some headwinds – Allan Barber:

Since I attended the 2016 conference, having missed last year’s, several things have changed considerably: two years ago Donald Trump wasn’t President, Silver Fern Farms hadn’t concluded its capital raising with a Chinese investor, alternative proteins and non-meat burgers weren’t on the industry’s radar and there was little recognition of the need for a Red Meat Story.

This year the conference programme acknowledged these changes by focusing on disruption to global trade, the China influence, heightened consumer expectations, the effects of the digital revolution and the importance of building consumer trust by telling our story about product provenance, traceability and environmental credibility. The conference was very well attended by farmers, processors and service providers, all of whom were optimistic about meeting the challenges ahead of an industry which has faced many different threats to its survival in the past 140 years. . . 

Country Life rural wrap from around New Zealand:

Do you know what is happening on farms and orchards around New Zealand? Each week reporters from Country Life talk to rural people about what is happening around New Zealand. Here’s what they told us.

Northland
Younger cattle have been selling well coming into a spring market. An average-to-better yearling steer has been fetching $880 to $950 and decent heifers $800 to $860. Wednesday was one of the worst days this winter – cold and bleak with hail, thunder and lightning. Thursday was sunny and Friday sunnier.

Pukekohe
This weekend’s weather will be like the last – fine. Unfortunately, the work days have been wet. With few exceptions, growers have kept off their fields unless crops were ready to harvest. With heavy supplies of broccoli retailing at unprofitable prices, working in the rain and muddy fields would appear to be a waste of time. . .

Tariff turmoil in times of abundance – Tim Burrack:

U.S. crop export prices dropped like a rock last month, falling by more than 5 percent. That’s the fastest dive we’ve seen in seven years, according to a report issued on Tuesday by the Department of Labor.

Government figures are important for understanding trends, but they cover up a lot of individual stories.

So let me tell you what these export-price statistics have meant for my farm in Iowa, where I grow corn and soybeans and raise hogs. Or, to look at it another way, let me tell you about my farm’s financial snapshot.

We’re facing tariff turmoil in a time of abundance. . .

 

Cavalier turns to profit in 2018, sees continuing improvements in future years –  Tina Morrison:

(BusinessDesk) – Carpet-maker Cavalier Corp turned to an annual profit and improved its debt and cash balances as it benefits from the previous year’s restructuring.

The Papatoetoe-based company posted a net profit of $4.1 million in the year ended June 30, from a loss of $2.1 million a year earlier. That’s above the top end of its forecast range of $3.7 million to $4 million. . . 


Rural round-up

August 23, 2018

Calf rearer changes tactics after Mycoplasma bovis battle – Heather Chalmers:

Farmers who believe they can live with Mycoplasma bovis need to think again, say a Southland couple who are finally clear after eight months battling the bacterial cattle disease. 

Lumsden couple Ben Walling and Sarah Flintoft are now “gun-shy” of returning to their calf rearing business, knowing the risks involved. 

They had bought 1600 calves to rear last spring before being “clobbered” with M. bovis. Their farm was confirmed clear of infection by the Ministry for Primary Industries (MPI) in early August.  . . 

New research into animals that give off less nitrogen:

New research may hold the key to lowering our emissions, by breeding animals that naturally excrete less nitrogen.

Utilising the genes of animals that produce less nitrogen could provide farmers with a breakthrough in managing on-farm greenhouse gas emissions.

Two research projects are currently looking to see if there’s a link between the nitrogen content of milk and animal emissions and whether it’s possible to identify and then replicate genes in animals that might control how much nitrogen an animal gives off. . . 

A2 Milk shares rise 4.4% as company doubles down on US, Asia – Sophie Boot:

 (BusinessDesk) – A2 Milk’s shares rose 4.4 percent following the milk marketer’s annual results this morning, but are still well off record highs seen earlier this year.

The company more than doubled net profit to $195.7 million in the June 2018 year, as it widened margins and increased infant formula sales. Revenue rose 68 percent to $922.7 million and earnings before interest, tax, deprecation and amortisation also more than doubled to $283 million. A2 already gave that revenue figure last month, just beating its $900 million-to-$920 million forecast from May, and at the time said ebitda was about 30 percent of sales, implying a figure around $277 million. . .

Milking it: I spent a day on the farm and my nose may never recover – Anuja Nadkarni:

NZ is known for its dairy products, and is home to one of the biggest dairy companies in the world. In this Stuff special investigation, we examine how the price of milk is set and explore the industry behind our liquid asset.

I milked two cows last week.

A bog standard Auckland millennial, milked two cows in my jeans, puffer and rubber boots on a dairy farm.

Being the typical city slicker I am, for a moment I arrogantly thought to myself, “yeah, I could do this”.

Could I though? . . 

Sheepmeat and beef levies to increase:

Beef + Lamb New Zealand’s (B+LNZ) Board has decided to proceed with the proposed increase in the sheepmeat and beef levies following significant support from farmers.

From 1 October 2018 the levy for sheepmeat will increase 10 cents to 70 cents per head and the beef levy by 80 cents to $5.20 per head. This is 0.4 per cent of the average slaughter value for prime steer/heifer, 0.7 per cent cull dairy cow, 0.7 per cent of lamb, and 1.1 per cent of mutton over the last three years.

The additional levies will be invested in accelerating four key programmes: the international activation of the Taste Pure Nature origin brand and the Red Meat Story, helping the sector lift its environmental performance and reputation, telling the farmer story better, and strengthening B+LNZ’s capability to address biosecurity risks. . .

Comvita hones focus on biggest growth drivers as it seeks to bolster profits – Tina Morrison:

(BusinessDesk) – Comvita, New Zealand’s largest producer and marketer of honey and bee-related products, is reducing its risk and positioning itself for future growth by honing in on where it can get the most bang for its buck.

The company’s shares are the worst performer on the benchmark index this year after earnings were hurt by two consecutive years of poor honey harvests. Its honey supply business lost $6.2 million in operating profit in its 2018 financial year and $6.6 million in the 2017 year. . . 

Guy Trafford looks at what the future might hold for Lincoln University, and how consumer perceptions might change feedlot operations – Guy Trafford:

Lincoln University staff were called to a briefing on Tuesday this week from Chancellor Steve Smith and Acting Vice Chancellor Professor James McWha on what the future holds for the University.

For several years rumours and stories have been doing the rounds regarding Lincoln not helped by the issues surrounding the recently appointed and then moved-on Vice Chancellors.

The crux of the announcement revolved around the fact that Lincoln had signed a memorandum of understanding with University of Canterbury to form a joint future together. Considerable effort was spent reassuring staff that, whatever the future holds, Lincoln will retain its brand and culture and its autonomy to operate its multidiscipline programmes with their land-based programmes. . . 

Farmers protest California water plan aimed to save salmon :

Hundreds of California farmers rallied at the Capitol on Monday to protest state water officials’ proposal to increase water flows in a major California river, a move state and federal politicians called an overreach of power that would mean less water for farms in the Central Valley.

“If they vote to take our water, this does not end there,” said Republican state Sen. Anthony Cannella. “We will be in court for 100 years.”

Environmentalists and fishermen offered a different take on the other side of the Capitol to a much smaller audience. . . 

 


Rural round-up

April 10, 2018

Water essential to feed New Zealand – Mike Chapman:

Reality: plants need water to grow, and that water supply needs to be consistent and reliable.

In the past two years, there have been extreme climatic events, alternating between intense periods of rain and drought. Last winter, heavy rain made vegetable growing difficult in the North Island. Supply was short and prices went up. Supply had to be supplemented from parts of New Zealand that rely on irrigation to sustain fruit and vegetable growing.

In December, the country went into drought. After having had too much water for months, then there was none. In Waimea, growers were forced to make decisions about which trees would not fruit and would have water supply reduced to root stock survival levels only. This is a highly productive area for horticulture and water supply during dry periods is vital. In fact, to maintain production and produce high quality vegetables and fruit a consistent supply of water is needed throughout the main growing areas in New Zealand.

Water storage and irrigation are key for sustainable growth of horticulture to feed New Zealanders. Water storage helps keep river flows at the right level during heavy rain, to use during drought. . . 

B+LNZ finalising brand mark and strategy for Red Meat Story:

Michael Wan, B+LNZ’s Global Manager Red Meat Story, provided farmers with an update on the progress of the Red Meat Story at our recent Annual Meeting in Gisborne.

As you may be aware, B+LNZ is currently finalising the proposed brand mark, story and Go-to-Market Strategy for the Red Meat Story.

Subject to discussions with the sector, these are expected to be shared with farmers later this year, before being rolled out to global markets, in partnership with processors.

“What is clear from the work we have done so far is that the New Zealand’s red meat story is more than a brand, story and activation plan,” says Michael. . . 

No more NZ lamb for French Canadian restaurateur – Eric Frykberg:

A French Canadian woman has stopped buying New Zealand lamb for her restaurant.

Marie Boudreau used to happily purchase frozen, prepared New Zealand meat to serve customers at her restaurant.

She said the New Zealand product was fine, but she later found a far better way to stock her kitchen.

She began to raise her own lambs for her restaurant. And she would give them love, attention and special treatment while they were growing. She would even cuddle them while they were being slaughtered.

“I stay with them right to the end, and I pass them to the butcher myself,” Madame Boudreau said. . .

Finalists compete for prestigious dairying awards:

The 33 finalists in the 2018 New Zealand Dairy Industry Awards didn’t have long to celebrate their respective regional wins, as their attention quickly turned to preparing for the final round of judging which gets underway on 30th April.

The finalists represent 11 regions and will compete for prizes worth more than $200,000 and the honour of winning either the 2018 New Zealand Share Farmer of the Year, 2018 New Zealand Dairy Manager of the Year or the 2018 New Zealand Dairy Trainee of the year title.

General Manager Chris Keeping says the 33 finalists are the cream of the crop from the 374 entries received, and it was a hard-fought battle. . . 

Open day to help farmers recycle:

A field day is being held in Geraldine next week to inform farmers on options to deal with farm waste.

The field day is taking place on the Orari Estate on Wednesday 18 April at 2pm, and will help farmers find out how to participate in current rural recycling schemes.

This will be focused on some products that require specific handling including plastic agri-chemical containers, chemicals, silage and balage wrap as well as waste oil & its containers. . . 

Syndex announces first of its kind Diversified Agri Fund:

Innovative investment platform Syndex today announced the listing of its first diversified agriculture fund.

The “Natural Farm Food Limited Partnership” fund* (NFFLP) is being launched in conjunction with Farm Venture, a farm property and operations management business based in Taranaki.

The new funds targeted a total capital raise of NZ$150 million, with a first close of NZ$50 million. There is a minimum capital investment of NZ$25 million for ownership of an initial three dairy farms and livestock, plus capex and the proportional purchase of Fonterra shares. . . 

Dove River Peonies gets game-changing boost in venture capital from New Zealand’s first SheEO allocation:

Nelson’s Dove River Peonies will receive a game-changing boost from New Zealand’s inaugural SheEO allocation of venture capital, announced in Auckland today (9 April, 2018).

“It’s absolutely huge for us,” says co-owner of Dove River Peonies, Dot Kettle. “It’s a real honour. We feel that we’re benefiting from New Zealand women investing in women and we’re excited to use this investment in us to benefit many, many people of all ages with skin conditions, both around New Zealand and overseas.”

SheEO is a global innovation in the female entrepreneur marketplace started by Canadian Vicki Saunders in 2015. . . 

Canterbury and Marlborough students heading to Invercargill grand final:

A talented due from St Bede’s College has taken top honours at the Tasman TeenAg Regional Final in Christchurch.

Nick O’Connor and Angus Grant won the hotly-contested TeenAg event in Templeton on Saturday.

The event saw 44 teams clash at Innovation Park.

Tomos Blunt and Finn Taylor, who’re also from St Bede’s College in Christchurch, took out second place. . . 


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