Rural round-up

May 28, 2016

Westland ups its payout prediction for the coming season:

New Zealand’s second biggest dairy co-operative Westland Milk Products has released a budget for the 2016-17 dairy season of $4.55 – $4.95 per kilo of milk solids (kgMS).

Payout for the current season will be in the range of $3.80 – $3.90 per kgMS.

Westland will also start its payout advance payments for the 2016-17 season at $3.80 per kgMS, payable 20 September 2016. . . 

Westland tops Fonterra – Hugh Stringleman:

Dairy farmers received cold comfort when Fonterra announced a low forecast milk price of $4.25/kg milksolids for the new season from June 1, with an advance rate beginning at $3.01.

Analysts’ expectations had been for an opening price of $4.60 or more, as well as some upside when world product prices steadily improved as expected towards the end of 2016.

They said Fonterra seemed to base its opening forecast on spot market prices and not the generally expected improving trend. . .

Farm profits help rural students get ahead – Kate Taylor:

A hill country farm east of Dannevirke has helped hundreds of young people with their tertiary studies. Kate Taylor visited to find out how.

Sheep and beef farmer Max Buckendahl has called the Weber district home for almost three decades but when his 30th anniversary rolls around next year he’s off to see the country.

Together with partner Lynn Moss and a fifth-wheeler artic truck caravan, he’s going to work (and fish) in the warmer climates of Northland for half the year and travel New Zealand for the other half.

“There’s no particular reason to go now but I wanted to stay here 30 years first,” he says. . . 

Silver Fern Farms:Details of Special Meeting:

• Special Meeting date set for Monday, 11 July 2016

Dunedin 27 May 2016: Silver Fern Farms has today settled the statement from two of the 80 requisitioners, in a form that Silver Fern Farms is willing to include in its Notice of Meeting, and has set a date of Monday 11 July to hold the Special Meeting.

The Board has received a statement from two of the 80 requisitioners and notes that the original 80 requisitioners sought a meeting of shareholders to consider: . . 

Silver Fern shareholders to vote again on Shanghai Maling deal in July – Paul McBeth:

 (BusinessDesk) – Shareholders of meat processor Silver Fern Farms will have a second vote on whether to approve its planned tie-up with China’s Shanghai Maling Aquarius in July, though the board intends to go ahead with the deal irrespective of the outcome.

The cooperative today set the meeting for July 11 in Dunedin where shareholders will vote on approving the proposed partnership and restructure, where the Chinese firm takes 50 percent ownership of the meat processor in return for $261 million of cash, a special dividend, and funds to bankroll the cooperative for seven years. Shareholders backed the deal in October, but John Shrimpton and Blair Gallagher, representing a group of 80 shareholders, have since sought a special meeting to effectively reconsider the transaction. . . 

Federated Farmers welcomes Freshwater Improvement Fund:

Federated Farmers is commending the Government on a new $100 million Freshwater Improvement Fund to aid communities investment in solutions for water quality in New Zealand’s rivers, lakes and groundwater supplies, announced in yesterday’s budget.

Federated Farmers water spokesperson Chris Allen says the fund will help communities achieve desired water quality outcomes sooner.

“It’s going to take innovative thinking, time and money to get to the level of water quality our communities aspire too,” he said. . . 

TB continues to be challenge for next decade:

Funding for TB control is less than it has been in the past but Federated Farmers is confident the new programme will continue to make progress with a more efficient spend of the money.

Federated Farmers OSPRI (TB Free NZ) spokesman Anders Crofoot said: “The amended TB Plan is a shift in approach from containing the disease to active eradication in livestock and wildlife. To date we’ve been successful at removing TB from large areas of New Zealand. This means with improved operational efficiencies and targeted work, enabled by advances in modelling we should see new TB Plan targets achieved.

The programme carried out by OSPRI will aim to eradicate bovine TB from cattle and deer by 2026, and from TB-infected wildlife in New Zealand by 2055. . . 

Government Support for Landcare:

Yesterday’s Budget marks a return to stable base-line funding for the work of NZ Landcare Trust.

The Minister for the Environment is responsible for financial appropriations for the 2016/17 financial year which include approximately $27 million for grants to third parties for water initiatives, environmental management and education programmes.

A specific appropriation identified within ‘Vote Environment’ has been established for the promotion of sustainable land management practice through a national network of coordinators. These funds are available due to the reprioritisation of $800,000 from the Community Environment Fund. This transfer reflects joint Ministers’ decision to fund the NZ Landcare Trust activities for 2016/17 and out years. No expiry date for this resourcing commitment has been set and it is identified as an on-going commitment. . . 

DairyNZ’s commitment to supporting dairy farmers:

Industry body DairyNZ is committed to supporting dairy farmers following the announcement by Fonterra of an opening forecast Farmgate Milk Price of $4.25 per kgMS for the 2016-17 season.

“The $4.25 per kgMS is not a surprise, although the particularly low opening advance rate of $2.50 per kgMS plus capacity adjustment is tough for farmers who will find the winter particularly difficult,” says DairyNZ chief executive, Tim Mackle. “This is the lowest opening advance rate in at least the last 14 years.

“The break-even milk income required for the average farmer is $5.25 per kgMS, yet under this forecast scenario they’ll only be receiving $4.45 per kgMS all up in terms of farm income, including retro payments from last season and dividends. . .

PwC supports NZ Milk Futures to manage milk price risk:

The NZX today launched a NZ Milk Futures contract that will eventually provide the opportunity for large and small dairy farmers to proactively risk manage milk price movements and volatility.

“The new futures contract essentially replaces, and considerably enhances, the Guaranteed Milk Price (GMP) contract previously offered by Fonterra,” says Roger Kerr, PwC Partner and Treasury Advisor.

“While the new futures contract has been expected, it will need support from the market to ensure its viability. This means that industry players with resources available to make this commitment, should be encouraged to participate,” says Mr Kerr. . .


Rural round-up

May 12, 2014

Beer cheese ‘natural joint project’ – Rebecca Ryan:

Joining forces to create a beer cheese was a ”natural collaboration” for Oamaru companies Whitestone Cheese and Scotts Brewing Company.

Since January, the businesses have been trialling different recipes and techniques to develop a beer cheese.

The final product, an ”Indian Pale Airedale”, is due to be launched in spring, with manufacturing starting in the next few weeks.

”We’ve just come up with one we’re really pleased with,” Whitestone Cheese chief executive officer Simon Berry said. . .

Meat industry reform and the phony war – Keith Woodford:

The current situation in the meat industry reminds me of two famous phrases from the First and Second World Wars. From the First World War, came the term ’all quiet on the Western Front’. And then early in the Second World War there was the ‘phony war’. Both were periods of quiet while the protagonists geared up for major battles. All parties knew that it was actually the quiet that was phony.

The current situation in the meat industry is similar. Eventually hostilities will inevitably break out as the processing and marketing companies compete with each other for survival. In beef there is scope for most to survive, but in sheep meat there have to be casualties. . . .

Turned on the weather – RivettingKateTaylor:

By the time I arrived home from the Farmer of the Year field day yesterday it was raining, freezing and dark. Just an hour earlier I was standing in the sun in the yard at Drumpeel, partaking of some yummy Silver Fern Farms product, catching up with some of Hawke’s Bay’s rural clan.

About 264 people attended the 2014 Hawke’s Bay Farmer of the Year field day (according to the man counting at the gate!) at the CHB property of Hugh and Sharon Ritchie and their four beautiful children (sorry David, let’s try one handsome son and three beautiful daughters). . .

Kate has more photos of the field day here.

Irrigation agreement signed with ORC – David Bruce:

Otago Regional Council councillors and staff on Thursday saw how the North Otago Irrigation Company and its farmers are managing efficient use of water and flow-on effects before signing an agreement with North Otago irrigation companies and representatives.

Cropping and dairy support farmer Peter Mitchell with the help of the company’s environmental manager Jodi Leckie, explained how variable rate irrigation and close monitoring of soil needs helped both the farmer and the environment on a Fortification Rd property.

The Memorandum of Agreement is with North Otago Irrigation Company (NOIC), the Lower Waitaki Irrigation Company (LWIC), and the Waitaki Irrigators’ Collective Ltd and concerns implementation of the council’s Regional Plan: Water for Otago Plan Change 6A. . .

 

Great conditions for olives this season:

The olive harvest is off to a good start with the hot dry summer combining with the industry’s maturing trees to provide lots of high quality fruit.

Olives New Zealand president Andrew Taylor said the harvest began in the far North in late March and will finish up in Canterbury in July.

He said it was the second consecutive summer that the industry had had ideal weather conditions for growing olives, which had led to excellent fruit quality, and the odds of great oil were high. . .

Sustainable piggeries in American Samoa preventing contamination:

Farmers in American Samoa have been told to avoid using water to clean out their piggeries in a move to avoid contamination.

Almost 100 farmers were schooled last week on environmentally-friendly ‘dry-litter’ piggeries, that use woodchips instead of water to deal with waste, which then provides composting options for crops.

The chief piggery compliance officer, Antonina Te’o, says wash-down systems can cause land and water pollution and allow waste material to infiltrate the drinking water supply. . . .

 


Rural round-up

April 11, 2014

Farmers back irrigation feasibility study:

A planned large-scale irrigation scheme in South Canterbury has got enough farmer backing for it to carry out an in depth feasibility study.

The Hunter Downs Irrigation Scheme, which could irrigate up to 40,000 hectares of land from Waitaki to just south of Timaru, also has significant financial backing from the Government.

Hunter Downs Irrigation chairman Andrew Fraser says they’ve been going through a capital raising process over the last several weeks – and have managed to get over the threshold of 20,000 hectares of farmer uptake.

“This funding will enable us to do a feasibility study and so that will tell us whether the scheme is economically and technically viable so we hope to have that result back out to the shareholders and farmers by the end of the year.”

Mr Fraser says the capital raising period has been extended as the scheme gauges corporate interest and speaks to more farmers in the area. . .

Winners committed to pushing farming change – Gerald Piddock:

Mike and Sharon Barton’s innovative approach to farming in an environmentally sensitive area has earned them the supreme title in the 2014 Waikato Farm Environment Awards.

The Western Taupo beef farmers were presented with the award as well as category awards for soil management and innovation at a ceremony near Karapiro last night.

The Barton’s farm at Glen Emmreth Farm near Tihoi. They purchased the 142ha property in 2004 at a time when strict environmental legislation to protect the health of the lake was looming.

They faced this challenge head-on, determined to make their farm as environmentally sustainable as possible. . .

Farmers warned to tidy up act:

Federated Farmers is warning farmers not to risk making the dairy industry a scapegoat at this year’s general election through poor farm practices.

In a message to farmers, dairy chairman Willy Leferink said he was worried they could be negatively portrayed during the election campaign and they needed to do the basics properly to avoid bad publicity.

Visual aspects of the industry needing to be tidied up, and that could help create a better public image, Mr Leferink said. . .

Call for better health and safety on farms after death –  Collette Devlin:

Farming is a hazardous occupation and the number of injuries and deaths on Southland farms must come down, industry insiders say.

They are calling for better health and safety awareness on farms.

The issue has been put in the spotlight by the tragic death of fertiliser truck driver Les Cain, killed when the truck he was driving overturned on a northern Southland farm on Tuesday.

Southland Federated Farmers president Russell MacPherson said one farm death was one too many.

The old attitude of ‘she’ll be right’ needed to disappear from the industry. . .

Hawke’s Bay Farmers of the Year – Hugh and Sharon Ritchie – RivettingKateTaylor:

Well done to Hugh and Sharon Ritchie – Hawke’s Bay Farmers of the Year.

I’ve just been writing about Hugh lately as I am doing the Nuffield NZ newsletter and he has just retired after 12 years as a trustee (we also went through Young Farmers together, although I hasten to add he is older than me!!!  Hugh, Shane Tilson and I won a national debating final in 1995!)

So last night (back to the important news) they were awarded the prestigious Silver Fern Farms Hawke’s Bay Farmer of the Year title in front of 350 people at a dinner at Showgrounds Hawke’s Bay (well done on great night Hillary). . .

D2S ‘growing at a rate of knots’:

Wool growers have rallied behind Wools of New Zealand’s Direct-to-Scour (D2S) spot market sales option.

Launched in October last year, volumes under D2S are doubling month on month and have now reached around 350,000 kgs, with annualised volumes expected to reach between 3.5m – 4m kilograms within its first year, about 8% of the market.

Ross Townshend, Chief Executive of Wools of New Zealand told shareholder growers and supporters during the company’s roadshow series of 12 national meetings this week that the system was “simpler and put more money into the pockets of growers than the conventional model. It makes logical sense for growers’ wool to go to the first point of processing which is the scour where it can be core-sampled, independently tested, objectively assessed and fairly priced. . . .

Wool Market Defies Dollar:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that despite a resurgent New Zealand dollar the South Island offering of 11,500 bales saw most types range from firm to 3 percent dearer. Even with the strength of the sale and an 86 percent clearance, some growers were still unprepared to accept current market levels with 13 percent of the offering being passed in.

The weighted indicator for the main trading currencies was 1.36 percent up on the last sale on 3rd April.

Mr Dawson advises that Fine Crossbred Fleece and Shears were between 1 and 3 percent firmer. . .


Rural round-up

February 25, 2014

Sewer discharge called a disgrace:

A leading Hawke’s Bay wine industry figure says sewerage pouring into Hawke’s Bay’s rivers is a disgrace and potentially damaging to the region’s food and beverage producers.

The group Friends of the Tukituki is threatening legal action if the Central Hawke’s Bay District Council is unable to meet new resource consents for discharging town sewerage into the Waipawa and Tukituki Rivers.

It says the brown smelly discharge currently going into the rivers is unacceptable.

Central Hawke’s Bay District Council says the discharge is within its resource consent, and is confident a new sewage plant will be operating by October which will discharge crystal clear water. . . .

Minister flags Maori land potential:

Minister for Primary Industries Nathan Guy has highlighted the potential for Maori agribusiness as part of the Government’s goal of doubling primary sector exports by 2025.

The ministry now forecasts the sector will earn $36.5 billion this season – up nearly $5 billion on the last forecast six months ago.

Of the 1.5 million hectares of Maori land, only 300,000 hectares is in full production. . .

East Coast first to host Environment Awards – RivetettingKateTaylor:

The first regional dinner has been held for the 2014 Ballance Farm Environment Awards.

The East Coast awards, covering the geographic area of the Hawke’s Bay Regional Council and the Gisborne District Council, were announced in Gisborne on Thursday.  It’s the fourth year of the awards but the first time hosted by Gisborne.

Well done to all those who entered…. and (drum roll please) the winners were Rob and Sandra Faulkner and Bruce and Jo Graham from the 600ha property, Wairakaia, which can be found on both sides of SH2 at Muriwai, south of Gisborne. . .

From the Lip – Pulse of rural NZ at field days – Jamie Mackay:

What follows are some random observations from the past fortnight and some pretty cool stuff that’s happened in rural New Zealand:

1. Tis field-day season. A couple of weeks ago it was the Southern Field Days at Waimumu. This week it’s the Northland Field Days at Dargaville and in a couple of weeks it’s off to Feilding for the Central Districts Field Days.  Between that and Horse of the Year in Hastings, the PPP Farming Conference in Queenstown, the inaugural Taranaki Ballance Farm Environment Awards in New Plymouth and the Rolling Stones in Auckland, I think I’ll just set up camp at the airport over the next six weeks.

I shouldn’t complain though, because it’s at these field days you get the real pulse of rural New Zealand and it’s fair pumping out there at the moment.  Even though I’ve been attending the Southern Field Days for 20 years – it was the first gig I did in radio – Waimumu is still a revelation. It’s a “Mini Me” of Mystery Creek, only better.  It’s Dargaville’s turn to impress this week. . . .

 

 

Milksmart events make farmers do the maths :

MilkSmart events, where farmers are shown practical ways to reduce milking times, are doing the rounds again this year.

DairyNZ have made some changes to the topics after farmer feedback.

The topics include stockmanship, milking efficiency, cow flow, milking skills, mastitis management, smart dairy design, people management, smart water use and more.

Events were run in Morrinsville and Tokoroa last week.

Sessions were designed for one of three experience levels – those who are new to dairying, operational managers, and senior decision makers or farm owners. . . .

Fonterra Announces $32 Million Foodservice Expansion in Eltham:

Fonterra today announced a $32 million expansion of its slice-on-slice cheese capacity at its Collingwood Street site in Eltham, Taranaki.

Slice-on-slice cheese is used extensively in quick service restaurants for products such as hamburgers and sandwiches.

Work will start in early 2014 and is expected to be completed in mid-2015. When complete, the expanded plant will deliver both increased capacity and improved processes to meet growth in global demand from Fonterra’s foodservice customers.

Fonterra Director of Foodservice, René Dedoncker, said the investment demonstrated the Co-operative’s drive to grow its business in the high-value foodservice industry. . . .

BEC Feed Solutions Set to Taste New Zealand Market:

BEC Feed Solutions Australia has cemented its commitment to the New Zealand agricultural market with the opening of a New Zealand trading arm, BEC Feed Solutions NZ.

The move was prompted by New Zealand’s rapidly developing animal production market and thriving dairy industry, which has seen a 70% growth in dairy production over the past 20 years[1]. This, coupled with the dairy industry’s growing preference for supplementary feeding over a solely pasture-based system, provides a sound platform for BEC – Australia’s largest independent animal pre-mix manufacturer – to officially enter the New Zealand market. . .


Five new Nuffield Scholars

November 1, 2013

Nuffield New Zealand has announced the winner of its 2013 scholarships:

They are: North Canterbury sheep and beef farmer and entrepreneur Dan Shand, Marlborough Garlic general manager and vineyard owner John Murphy; Masterton sales and marketing entrepreneur Lucy Cruickshank, Palmerston North potato grower Paul Olsen from Opiki near Palmerston North and Beef + Lamb NZ western North Island extension manager Mel Poulton from Woodville.

RivettingKateTaylor has the full media release and photo.

These scholarships are one of New Zealand’s most valuable and prestigious awards with a limited number awarded each year to individuals identified as future leaders.

There’s more information on Nuffield  here.

#gigatownoamaru appreciates success in positive endeavours.


Rural round-up

October 19, 2013

Pengxin, Synlait founders make $85.7 mln offer to take over Synlait Farms – Paul McBeth:

(BusinessDesk) – Shanghai Pengxin, which bought the Crafar family farms in a controversial deal last year, and the Synlait founders are offering $85.7 million to buy South Island dairy farmer Synlait Farms.

SFL Holdings, a joint venture between Pengxin and Synlait Farms chief executive Juliet Maclean and director John Penno, is offering $2.10 a share to Synlait Farms investors in a full takeover bid for the company which operates 13 dairy farms and a total herd of almost 13,000 cows. That’s a 31 percent premium to the $1.60 price the shares last traded at on the Unlisted platform.

If the takeover is successful, SFL plans to inject a further $20 million in fresh capital to reduce debt and accelerate investment. It also plans to reinvest all surplus cash to fund further growth. Penno and Maclean will hold about 26 percent of SFL, with Pengxin owning the rest via New Zealand Standard Farm, a subsidiary of its Milk New Zealand unit. . .

Spierings blames ‘she’ll be right attitude’ for Fonterra botulism scare – Christopher Adams:

Fonterra chief executive Theo Spierings compared the company’s botulism debacle to Emirates Team New Zealand’s near-capsize during the America’s Cup. Photo / Greg Bowker

Fonterra chief executive Theo Spierings says a “she’ll be right attitude” was one of the causes of the company’s botulism fiasco.

Business leaders have gathered in Auckland today for the annual China Business Summit.

The event’s main focus this year is the ongoing impact of Fonterra’s whey protein contamination scare, which led to a global recall of consumer products, including infant formula, but turned out to be a false alarm.

Addressing the summit, Spierings said Fonterra was world class in manufacturing and food safety but the company still needed to “lift its game”.

“That was one the key learnings [of the botulism scare] – a ‘she’ll be right’ attitude is not acceptable,” he said. . .

Primary Growth Partnership enhances world-class Mozzarella technology:

A Primary Growth Partnership programme is helping deliver world-leading patented technology for the production of quick-frozen grated mozzarella.

The Transforming the Dairy Value Chain programme is driven by Fonterra, Dairy NZ and the Ministry for Primary Industries (MPI) under the Primary Growth Partnership. The technology, which is being expanded at Fonterra’s Clandeboye site in South Canterbury, enables quick-frozen, natural, shredded mozzarella to be produced in just a day—a process traditionally taking around two months.

“This is a key demonstration of the type of innovation that is being enabled by the Primary Growth Partnership,” says Justine Gilliland, Director Primary Growth Partnership, MPI. . .

Creating the ‘angus moment’ – Gerald Piddock:

Angus beef must position itself as a guilt-free indulgence for wealthy consumers around the world if it is to prosper in the modern world, a leading brand strategist says.

But to achieve this would require a new way of thinking, Brian Richards told farmers at the World Angus Forum in Rotorua.

It meant angus farmers viewing themselves not just as sellers of protein but also as producers of a food experience, Richards said in his keynote address at the forum. . .

New Zealand wine industry ‘icon’ receives 2013 trans-Tasman agribusiness leadership award:

New Zealand wine industry luminary Sir George Fistonich has been named the recipient of the 2013 Rabobank Leadership Award for his outstanding contribution to agribusiness.

A pioneer of modern-day winemaking in New Zealand, Sir George, the founder and owner of Villa Maria Estate, was presented with the prestigious trans-Tasman honour at the annual Rabobank Leadership Award Dinner in Melbourne last night.

Australian grains industry advocate Georgie Aley was named Rabobank Emerging Leader, a new award category recognising up-and-coming young leaders in New Zealand and Australia’s food, beverage and agribusiness industries.

Announcing the award winners, Rabobank Australia & New Zealand Group managing director Thos Gieskes said Sir George Fistonich had spent five decades at the forefront of New Zealand’s wine industry and had been an instrumental figure in the rise of New Zealand wines on the world stage.

“In a career spanning 50 years, George Fistonich has exemplified true leadership along with an extraordinary passion for the New Zealand wine industry – successfully leading not just his own business, but helping to pioneer and drive an entire industry and inspire and mentor those around him,” Mr Gieskes said.  . .  (I posted on the award yesterday, but this is the official media release).

Waiting for Nuffield – RivettingKateTaylor:

It’s Nuffield time of year again.

Years ago, a Young Farmers friend, arable farmer Hugh Ritchie, was awarded a Nuffield Scholarship. I think I was working for radio or the HB Herald Tribune at the time and did a story on his selection.

Now I work for Nuffield NZ in a freelance journalist role and see the scholars come and go (literally – six months of overseas travel/research is an integral part of a scholarship). . .

Oaklands Milk now from A2 dairy herds:

Local dairy farmer Julian Raine, has announced that all Oakland’s milk naturally contains A2 beta casein proteins. He says “Centuries ago all cow’s milk contained this protein but as dairy herds around the world have been bred and selected for higher production the incidence of the A1 variation has increased.”

Through genetic testing Mr Raine has been able to select cows from his two Nelson dairy herds that have only the A2 gene. These cows are milked separately and it is only this pasteurised milk that is currently sold through vending machines located at Oakland’s farm gate. . .

Kiwi company takes the spotlight with its world-leading technology:

Global players in the fresh produce industry will this weekend get a first-hand look at innovative fruit sorting solutions from Kiwi company BBC Technologies, the world’s leading supplier of blueberry sorting and packing machinery.

BBC Technologies, specialists in the development and manufacturing of advanced processing technology, will be showcasing its range, for the first time, at the Produce Marketing Association’s (PMA) Fresh Summit Convention & Expo in New Orleans.

PMA’s Fresh Summit is one of the largest trade shows held in the United States, drawing more than 18,000 visitors from over 60 countries. North America is a key market for BBC, with the thriving New Zealand company recording 30 per cent year on year growth. . .


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