Rural round-up

July 8, 2016

Sheep industry recognises top performance:

The sheep industry celebrated its best and brightest at the Beef + Lamb New Zealand Sheep Industry Awards in Masterton last night.

This is the fifth year the industry’s top performers have gathered to acknowledge outstanding contributors in genetics, science and commercial lamb production.

Amongst the award recipients were Northland sheep breeder Gordon Levet, who was recognised for his long-term work breeding towards worm resistance, while Hawkes Bay farmers James and Jane Hunter won the Blackdale Stud Sheep Industry Supplier of the Year. . . 

Amethyst the foundation jewel of Hereford family – Kate Taylor:

Five generations of one family have sat at the head of NZ Herefords. Kate Taylor went to Akitio, southeast of Dannevirke, to meet the latest one.

Akitio farmer Philip Barnett has followed in the footsteps of his father, grandfather, great grandfather and great, great grandfather to become president of NZ Herefords.

Barnett and wife Lyn own the Kaitoa Hereford Stud, which traces its origins back to the importation of a cow called Amethyst in 1882.

It is a cow family that still remains a linch pin of the stud more than 130 years later, along with the Kaitoa Lady, Princess and Leonora cow families. . .

Bobby calf welfare: everyone has a role to play:

As the dairy industry’s spring calving kicks off, the Bobby Calf Action Group (BCAG) is reminding everyone who handles calves of the important role they have to play.

“The rubber hits the road now, it’s up to everyone across the supply chain to meet the required standards of care for bobby calves this season,” says Ministry for Primary Industries Deputy Director General, Scott Gallacher.

Eight organisations make up the BCAG which was formed at the end of 2015 to accelerate and add to existing measures aimed at ensuring everyone involved with bobby calves applies best practice in their handling and care. . . 

Dairy farms that survive the current downturn will be leaner, more agile and resilient – Rees Logan:

Two difficult seasons of below-average dairy payouts, and a third being forecast, have delivered a big wake-up to the dairy farming industry.

The average payout for the current and last two seasons is approximately $4.55 (including dividend) against DairyNZ’s estimated average breakeven payout required by farmers of $5.25. This means three seasons where most farmers have had to take on additional debt just to survive.

Dairy farmers have been forced to take a ruthless approach to expenditure and to switch their focus from production to profitability in a bid to cut debt. . . 

Irrigation 101 to upskill professionals:

A beginner’s guide to irrigation will be offered in Hawke’s Bay next month for professionals who need to better understand the sector to help their dealings with farmers.

The Irrigation Fundamentals course is a two day workshop offered by IrrigationNZ to introduce non-farmers to the principles of irrigation management. The course, particularly targeted at frontline staff of organisations and businesses that provide services to the irrigation industry, will take place in Hastings on 3rd and 4th August.

Rural advisors, environmental consultants and regional council staff are among those who have attended the course so far in the South Island. . . 

NZ venison prices rise amid tight supply as farmers rebuild herds -By Tina Morrison:

(BusinessDesk) – New Zealand meat processors are having to pay more to secure supply of local venison to service their overseas contracts as farmers retain their breeding hinds to rebuild herds.

Spot prices for a 60-kilogram AP stag have hit $7.85/kg, up from $6.60/kg this time last year and the highest level for this time of year since 2011, according to AgriHQ. Venison production dropped 36 percent in May from the year earlier month, and is down 23 percent in the processing season so far, from Oct.1 through May 31, according to AgriHQ. . . 

Bright fisheries future:

New Zealand fisheries are in good heart, with great potential for the future, Seafood New Zealand Chief Executive Tim Pankhurst said today.

He was speaking at the Marine Societies of New Zealand and Australia conference at Victoria University of Wellington, which has attracted more than 350 marine scientists from both countries.

Pankhurst says the outlook for the New Zealand seafood industry is bright.
“We are not going to run out of fish.”

“We have a seafood sector that is in good heart. Our stocks are sustainable – it’s not just the fishing industry saying that, the science supports it, and the world wants what we produce – and aquaculture is expanding.” . . 

NZ King Salmon reviewing capital options as IPO rumoured – Paul McBeth:

(BusinessDesk) – New Zealand King Salmon Investments says it’s reviewing its capital options to support the development of three new farms in the Marlborough Sounds after Australian media reported the company was looking at an initial public offering.

The Nelson-based salmon farmer and processor hired Credit Suisse and First NZ Capital to test investor interest in Australia and New Zealand for a dual-listing on both sides of the Tasman, valuing the company at $200 million, the Australian Financial Review’s Street Talk column reported. . . 

NZ Yarn Appoints New CEO:

Colin McKenzie has been appointed as the new CEO for Christchurch based NZ Yarn Ltd, effective Monday, 4 July.

NZ Yarn manufactures and markets high quality wool spun yarns for the carpet industry worldwide.

McKenzie was most recently CEO and Managing Director of Cavalier Corporation. He has extensive experience in the textile and manufacturing sectors, and for companies servicing local and export markets.

NZ Yarn is 100% New Zealand owned by Carrfields Primary Wool and several independent investors, who bought it from receivers in 2014. . . 

Global Uncertainity Affects Wool Market:

New Zealand Wool Services International Limited’s C.E.O, Mr John Dawson reports that the ongoing fallout from the Brexit result, continued minimal activity from China and a strong New Zealand dollar have compounded to make significant inroads into local wool values.

The weighted currency indicator compared to last sale lifted 0.66 percent, however against the GBP the New Zealand dollar strengthened a further 4.4 percent making a shift of over 13 percent since the Brexit announcement. Market sentiment is bearish as many clients take a cautious approach during this unsettled period. . . 


Rural round-up

July 6, 2016

How many ticks does SFF need? – Neal Wallace:

Silver Fern Farms can rightly ask just how many hoops does it have to jump through before opponents of the proposed transaction with Shanghai Maling accept the legitimacy of last year’s shareholder approval of the deal?  

The Companies Office and Financial Markets Authority – bodies charged with administering business behaviour – have both rejected complaints about SFF’s handling of last October’s shareholder vote, the financial information supplied to its shareholders and to Shanghai Maling.  

But a more important hoop it could be argued SFF has easily traversed is shareholder support. . . 

Highly profitable banks are playing a long-term and responsible game with struggling dairy farmer borrowers – Rees Logan:

In the year to March 2016, lending to the dairy sector increased by 9% to approximately $40 billion.

During that same period, land prices in the dairy sector dropped 16%, according to Real Estate Institute (REINZ) figures. This fall in land prices means the increased lending is effectively funding the losses the banks’ customers are suffering as a result of the low dairy payout.

Key asset values are decreasing (land and livestock) and debt is increasing so owner equity and bank security is quickly eroding. 

DairyNZ figures show approximately 50% of New Zealand’s dairy sector debt is held by the top 20% of its indebted farmers. This is a major concern. . . 

Marlborough farmer ‘wild’ after overnight electric fence theft – Jennifer Eder:

An electric fence has been stolen in Marlborough in an overnight heist, leaving stock on the loose and a farmer out of pocket.

Grovetown farmer George Wadworth found his sheep loose along the road on Sunday morning and discovered about a kilometre of fence had vanished.

“I was pretty wild. My main concern was not really for stock safety but people using the road. It’s quite close to a main highway, and if a sheep hits someone’s windscreen at 100kmh, it’ll kill you.”

Community constable Russ Smith said someone had “gone to quite a bit of trouble” to remove 250 plastic fence standards, or electric fence posts, from the  16-hectare vineyard. . . 

NZ commodity prices rise in June, led by seafood, dairy – Paul McBeth:

(BusinessDesk) – New Zealand commodity prices rose for a second month in June, led by more seafood and dairy products, although an appreciating kiwi dollar limited those gains in local currency terms.

The ANZ commodity price index rose 3.7 percent last month, after a 1.1 percent increase in May. On an annual basis, prices were down 5.4 percent. In New Zealand dollar terms the index rose 0.3 percent, adding to a 2.5 percent increase in May, and an annual decline of 5.9 percent. The trade-weighted index rose 4.9 percent in June.

“There was broad-based strength across all the major categories. However, producers won’t be celebrating too loudly,” ANZ Bank New Zealand agri-economist Con Williams said in his report. “In many cases, world prices are still below the same time last year and the NZD rose over the month too.” . . 

New partnership supports takahē recovery

A newly-signed partnership between DOC and Fulton Hogan will help the critically-endangered takahē continue its recovery, Conservation Minister Maggie Barry says.

Worth $1 million, the partnership was signed at the Burwood Takahē Centre near Te Anau today by DOC director-general Lou Sanson and Fulton Hogan’s director of investments, Bob Fulton.

“The Takahē Recovery Programme has just had its most successful breeding season on record, with 38 chicks fledged,” Ms Barry says.

“Consistently high numbers of chicks are being produced each year, thanks to the hard work of DOC staff, volunteers and our Treaty partner, Ngai Tahu. Fulton Hogan will support the next step in the species’ recovery.” . . .

TB eradication scheme marks milestone:

New Zealand has taken another step towards becoming TB-free with large areas of previously infected land being declared free of the disease.

OSPRI administers the TBfree programme aimed at eradicating bovine tuberculosis from cattle, deer and wildlife.

It has has been progressively achieving this by intensive possum control, then carrying out wildlife surveys to confirm the disease has been eradicated. . . 

Fonterra Lichfield Achieves One Million Building Hours:

Major milestones are being knocked off as construction on one of the world’s largest dryers races towards completion – the result of over one million working hours on the new Fonterra Lichfield milk powder dryer.

For more than 3,000 people representing 300 companies, the finish is now clearly in sight as the September commissioning date for this world-class dryer nears.

South Waikato Operations Manager Sam Mikaere says it takes one look at the numbers behind the build to get an appreciation for its impressive scale.

“This is not just any dryer we’re building. Along with our D2 dryer down at Fonterra Darfield, this will be the biggest milk powder dryer on the planet,” he says. . . 

Record turnout at RCNZ annual conference:

A record turnout of 153 contractors, from all around the country, descended on the Bay of Islands – in late June – for this year’s RCNZ annual conference.

RCNZ national president Steve Levet was delighted with the record conference turnout – held at the Copthorne Hotel and Resort, in Paihia, from June 27-30 – given the current economic climate.

“This is the largest turnout that I can recall and it seems many rural contractors have decided to ignore some of the doom and gloom merchants and are clearly focussed on looking forward to better times.”

Mr Levet says the conference had an exciting agenda of relevant and pertinent issues to the rural contracting sector – along with a number of top-line speakers. This year’s conference theme was: “Your Business from Start to Finish” and it also celebrated the 20 year anniversary of Rural Contractors NZ (RCNZ) as an organisation. . . 

Hawke’s Bay Tonnellerie de Mercurey Young Winemaker 2016 Announced:

Congratulations to Alex Roper from Mission Estate for winning Hawkes Bay Young Winemaker 2016. The competition took place on 1 July at EIT in Taradale followed by dinner and contestants speeches at Mission Estate. Yvonne Lorkin was the charming and entertaining MC who also ran the wine options section of the evening.

Congratulations also goes to Tom Hindmarsh from Dry River in Martinborough who came second (contestants from around the North Island were eligible to enter) and Brad Frederickson from the Hawke’s Bay Wine Company who came third. . . 


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