Rural round-up

March 6, 2019

Miles Hurrell permanently appointed Fonterra chief executive officer:

Fonterra Co-operative Group (FCG) has announced the permanent appointment of Miles Hurrell as its Chief Executive Officer (CEO), with immediate effect.

Mr Hurrell had been the Co-operative’s interim CEO since August last year.

Fonterra Chairman, John Monaghan says the Co-operative’s Board has been impressed by Mr Hurrell’s leadership and commercial skills as it continued to breathe fresh air into the Co-operative. . . 

Fonterra caught in death valley :

The sale of Tip Top is crucial to Fonterra’s aim of reducing its debt by $800 million before the end of this financial year, dairy industry commentator Peter Fraser believes.

Fast-moving consumer goods companies can command some very high multiples of earnings when being traded.

Fraser is an economist who advised the Ministry of Agriculture during Fonterra’s restructuring attempt a decade ago and has commented on the dairy industry since.  . . 

M. Bovisfoundonthreefarms – Sally Rae:

Bulk milk testing from all dairy farms has confirmed Mycoplasma bovis infection on three farms, the Ministry for Primary Industries’ latest stakeholder update says. All three properties had previously known links to the bacterial cattle disease.

Another 51 farms would be further investigated as part of routine surveillance while testing was yet to be completed from about 50 farms that calved later in the season.

Testing would begin shortly after calving because the bacteria was more likely to be shed during times of stress, such as after calving and the start of lactation, the update said. . . 

Alex woolhandler to represent NZ at champs – Sally Rae:

It’s bonjour France for Alexandra-based woolhandler Pagan Karauria. Karauria (30) will represent New Zealand at the world championships in Le Dorat in July, after gaining selection at the Golden Shears in Masterton on Saturday night.

Her success was even more remarkable given she suffered life-threatening injuries in a vehicle crash in Central Otago 10 and a-half years ago and has battled with the lasting effects since. . . 

Indoor lambing unit is in enviro contest – Joanna Grigg:

Richard Dawkins of The Pyramid has entered his family sheep and cattle business in the 2019 Cawthron Marlborough Environmental Awards and is up against forestry, marine, wine industry, landscape/habitat, community innovation and business innovation entries for the supreme title.

The winners will be named on March 22.

The Pyramid is in contention for the Federated Farmers Award for sheep and beef entries.  . . 

Farm loan delinquencies highest in 9 years as prices slump – Roxana Hegeman:

The nation’s farmers are struggling to pay back loans after years of low crop prices and a backlash from foreign buyers over President Donald Trump’s tariffs, with a key government program showing the highest default rate in at least nine years.

Many agricultural loans come due around Jan. 1, in part to give producers enough time to sell crops and livestock and to give them more flexibility in timing interest payments for tax filing purposes.

“It is beginning to become a serious situation nationwide at least in the grain crops — those that produce corn, soybeans, wheat,” said Allen Featherstone, head of the Department of Agricultural Economics at Kansas State University. . . 

 


Rural round-up

August 16, 2018

 A flow of “fresh air” – here’s hoping Fonterra’ s financial performance gets a good whiff – Point of Order:

Fonterra’s  latest move, appointing Miles Hurrell as interim CEO  “with immediate  effect”, has   sent  fresh rumbles  through the  dairy industry.

The  co-op’s  chairman John Monaghan, announcing the move,  spoke of the need  to  “breathe  some fresh  air  into the business”.

He is  not alone with this observation:  several  politicians  have been calling for just that – but  many of the  co-op’s 10,500 farmer-suppliers may be wondering  what exactly  a  blast of   “fresh air”  may do. . .

Animal tracking legislation to be debated under urgency – Gia Garrick:

Legislation to properly enforce the animal tracking guidelines, which were found to be hugely inadequate during the Mycoplasma bovis response, is to be debated under urgency tonight and through tomorrow.

It will mean farmers’ compliance with the National Animal Identification and Tracing scheme (NAIT) – the country’s cattle and deer tracking system – will be properly monitored.

Agriculture Minister Damien O’Connor said there would be penalties for those who did not comply.

“We will certainly have enforcement of these new guidelines, I can promise you that,” he said. . . 

Farmers encouraged to open homes to drought-hit Australians –  Esther Taunton:

Kiwi farmers are being urged to extend the hand of mateship to their drought-stricken Australian counterparts.

Federated Farmers national president Katie Milne said the organisation was working on ways to help farmers hit by severe drought across the Tasman.

Much of southeastern Australia is struggling with drought but conditions in New South Wales are the driest and most widespread since 1965.  . . 

Poorest performing iwi invested in large farms, ANZ report says – Tina Morrison:

(BusinessDesk) – The poorest performing iwi investment in recent years has come from farming, which is often favoured for cultural rather than economic considerations, according to the latest annual ‘Iwi Investment Insights’ report by ANZ Bank New Zealand.

In its 2018 annual ‘Te Tirohanga Whānui’ research report, ANZ evaluated the asset base of 34 iwi and hapū, finding the commercial assets of the combined group had increased by just over $1 billion, or 12 percent, to $5.4 billion since 2015. The report found the most common asset in the top quartile for underlying returns was the significant holdings in managed funds which have performed well in recent years. On the flip-side, most iwi/hapū in the lower quartile were actively managing large farms. . .

Raising triplets indoors works – Joanna Grigg:

It’s raining outside, again, but it’s not worrying these new lambs.

All 250 of Richard Dawkins’ triplet-bearing ewes get seven days or so indoors to adjust to supplementary feed, birth their lambs, bond and feed.

Then it’s out to the real world, albeit a nearby paddock with ad-lib clover and a watchful eye for that fading third lamb. . .

Sheep meats are in a sweet spot – Keith Woodford:

This year has been an exceptional year for many sheep farmers.  Lamb and mutton prices have been at record levels.

The key drivers have been increasing demand from China combined with lower exchange rates. Sales to Britain have slowed down, linked to a ‘buy British’ campaign over there. But that has not been enough to counter the overall good news story.

Sheep farmers are telling me that, for the first time in many years, sheep farming is fun again. The cash is coming through to upgrade tracks and other infrastructure. Venison prices have also been exceptional for those sheep farmers who also farm deer. Most sheep farmers also run beef cattle and they too have been paying well. . .

LIC’s Murray King named Co-operative Leader of the Year:

Farmer owned co-operative LIC is pleased to announce its board chairman Murray King has been named Co-operative Leader of the Year at the Co-operative Business NZ Awards 2018.

The annual award recognises those who have shown strong leadership and commitment to the co-operative sector.

A Nelson-based dairy farmer, Murray has a long-standing connection to LIC and the dairy farming community of the upper South Island. . .


Rural round-up

April 25, 2018

Water the new gold in Central Otago – Sally Rae:

Irrigation New Zealand held its conference in Alexandra last week. Agribusiness reporter Sally Rae joined a media tour in Central Otago to see  the benefits of water.

It gives John Perriam such a buzz to see “rabbit s…  being turned into world-class pinot”.

But to do that on Bendigo Station, in the heart of Central Otago, it has taken technology, resources and water.

Bendigo —between Tarras and Cromwell — is a very different place to when the Perriam family first arrived in the late 1970s, having been literally flooded out of their previous property by  the Clyde Dam hydro development.

They took over 6000 superfine merino sheep from the previous owners, the Lucas family, and fine and superfine merinos remained a core part of the operation. . . 

Bonding time:

Determined to realise the potential offered by triplet-bearing ewes, Chris, Julia and Richard Dawkins have, with the help of Beef + Lamb New Zealand’s Innovation Farm programme, set-up an indoor lambing system on their Marlborough sheep and beef farm.

This is part one of a two-part series looking at the benefits and the economics of this system.An on-farm trial aimed at economically improving lamb survival by lambing triplet-bearing ewes indoors and rearing mis-mothered lambs has got off to an encouraging start.

The Marlborough-based Dawkins family is running the three-year trial on their sheep and beef property as part of Beef + Lamb New Zealand’s Innovation Farm programme. . . 

Gypsy Day start of new chapter – Toni Williams:

Trudy Bensted is planning the next chapter in her life, packing up her family and moving farms.

She is motivated to succeed in the dairy industry, but also driven to give her children life experiences.

Trudy has a sole charge position in Temuka milking 260 cows but on June 1 – the traditional Gypsy Day – she moves to a new job.

She will be taking on a new venture joining the team at Kintore farms in Mid Canterbury.

”Kintore consists of two sheds south of Ashburton, 1500 cows, excellent apps and systems in place for an efficient and effective farm,” Trudy said. . . 

Politicking put aside on livestock rustling:

Federated Farmers is greatly encouraged by the cross-party support for tougher livestock theft deterrents being shown by members of the Primary Production Select Committee.

Meat and Wool Chairman Miles Anderson spoke to the committee on the Sentencing (Livestock Rustling) Amendment Bill this morning. He said it was heartening to see there was no politicking on the issue, just determination to work out the best ways of combating the problem.

“There’s good momentum to put in place effective measures to tackle this serious and growing scourge.” . . 

Digital core to future of New Zealand farming – Ballance:

Ballance Agri-Nutrients’ today announced changes to its lead team that reinforce digitisation as core to the Co-operative and the future competitiveness of New Zealand farming.

Chief Executive, Mark Wynne, says the creation of a new Chief Digital Officer role reflects a strategy to become a truly customer-centric organisation, with digital at the heart.

Ballance was the first New Zealand organisation to go live with SAP S/4HANA in 2016, providing a foundation for the launch this year of the MyBallance customer experience platform that puts customers in control – providing real-time data and the capability to place and track nutrient plans and orders online 24/7, and with digital mapping the ability to report accurately on nutrient application on their farms. . . 

Tech will have profound impact on NZ agriculture:

The New Zealand IoT (internet of things) Alliance believes cutting-edge technologies will have a profound impact on helping improve New Zealand’s agricultural productivity.

Alliance executive director Kriv Naicker says a major study into the potential benefits of IoT last year found that better use of IoT across agriculture could provide more than $570 million for the economy.

“In an earlier study by the Sapere research group found that if New Zealand firms made better use of the internet it could have a major impact on GDP, potentially lifting it by $34 billion,” Naicker says. . . 


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