Rural round-up

September 4, 2014

New Season Looking Positive for Sheep And Beef Farmers:

New Zealand sheep and beef farmers can look forward to a positive 2014-15 season, according to analysis released by Beef + Lamb New Zealand’s (B+LNZ) Economic Service today.

B+LNZ Economic Service executive director, Rob Davison says the season’s favourable climatic conditions so far, expected higher product prices and a more export-friendly exchange rate collectively translate to improved returns for the country’s sheep and beef farmers.

New Season Outlook 2014-15 predicts the average sheep and beef farm profit before tax will increase 8.0 per cent on last season, to $110,800.

Mr Davison says a 6.3 per cent lift in sheep revenue is largely responsible for the increase, while total farm expenditure should only rise by an average of 2.3 per cent. . .

 Unravelling the schedule gap between North and South Islands – Allan Barber:

Every year when livestock numbers pass their peak in the North Island, there is a constant stream of trucks carting stock across the Cook Strait to plants for slaughter. There are two obvious reasons for this – either there isn’t enough South Island capacity at the time or the cost of procurement plus transport is less than the price in the North Island.

 These two explanations are two sides of the same coin, because there is no need for South Island processors to pay more than they have to when their plants are full. This is even more evident from the species with the largest price gap which is cull cows, possibly wider than it has ever been. However there is absolutely no point in paying dairy farmers over the odds for what is a fully depreciated asset they have to get rid of. . . .

Rock Lobster Industry Welcomes Prime Minister’s Pledge of Farmland Buffer Zones:

The New Zealand Rock Lobster Industry Council has today praised the National Party pledge to spend $100 million over 10 years to buy and retire farmland next to waterways to provide a buffer and improve water quality.

The pledge was made by Prime Minister John Key in Southland this morning.

Rock Lobster Executive Officer Daryl Sykes says the National Party pledge represents an appropriate recognition of the quality and integrity of private property rights and invokes market mechanisms to resolve concerns about the natural environment. . .

Independent Inquiry Welcomes Fonterra Progress:

The Independent Inquiry Committee which reviewed the circumstances giving rise to the precautionary recall of whey protein concentrate (WPC80) last year has welcomed Fonterra’s progress on implementing recommended improvements.

The Committee completed a nine-month checkpoint on Fonterra’s progress which itself was one of the Committee’s recommendations.

Committee Chair Sir Ralph Norris said the Co-operative’s leadership had taken responsible measures to distil the Inquiry’s recommendations into a significant programme of work. . . .

 Seeka offers kiwifruit growers share incentive in exchange for trays – Suze Metherell:

 (BusinessDesk) – Seeka Kiwifruit Industries, the fruit grower and coolstore and packhouse operator, is looking to secure kiwifruit supply over the next three years by offering growers shares in return for exclusive supply from their orchards.

Under the growers incentive scheme eligible growers will be issued new shares annually in proportion to the number of trays provided, at a rate of 10 cents worth of shares to every tray, until 2016, the Te Puke-based company said in statement. Seeka shares were unchanged near a five-year high at $3.29 on the NZX and have gained 57 percent this year.

Local kiwifruit growers have been struggling with the outbreak of Pseudomonas syringae PV actinidiae in 2010, which infected about 40 percent of the nation’s orchards, with gold fruit varieties hardest hit. Seeka expects the gold market to double in 2015 once re-grafted SunGold orchards reach commercial volume. . . .

Rural Equities doubles annual profit on record milk production and prices – Suze Metherell:

(BusinessDesk) – Rural Equities, the farming group controlled by the Cushing family, doubled annual profit and lifted its dividend 17 percent on the back of record dairy production and prices.

Profit rose to $24 million in the 12 months ended June 30, up from $10.9 million a year earlier, the Hastings-based company said in a statement. Operating earnings before interest and tax doubled to $6.43 million from $3.33 million, as its six dairy farms produced a record 1.67 million kilograms of milk solids and the price of dairy products soared.

Production at its three Waikato farms benefited from rising beef, lamb and wool prices, and “contributed materially to increased earnings,” the company said. . . .

Oz turns to selfies in free trade bid:

AUSTRALIAN DAIRY Farmers (ADF) have launched a selfie campaign to push for a China free trade agreement which they say will put them on an equal footing with New Zealand farmers.

 It says the campaign had reached 1.6 million Twitter users by today, September 2. ADF is urging all Australians to get behind its #FTA4dairy ‘selfie’ campaign to help secure a China-Australia free trade agreement (FTA) which could see $30 million in tariff savings per year placed back into the pockets of Australians.

Showing your support is as simple as uploading a #FTA4dairy selfie holding up a postive message, and posting it online incorporating the #FTA4dairy and #FTA4farmers hashtags, the group says. . .

The Campaign for Wool partners with the Harris Tweed Ride:

On Sunday 31st August, tweed clad ladies and gents from all over Scotland gathered outside the luxury Blythswood Square Hotel for the annual Harris Tweed ride, this year in partnership with the Campaign for Wool.

The Harris Tweed ride has continued to become increasingly popular with this year’s ride being no exception. Over 120 cyclists and wool lovers took part in the ride covering Glasgow Green and Kelvingrove Park taking in some of Glasgow’s most iconic sites as well as guiding riders past some of Glasgow’s top dining establishments. . .

 

 


Rural round-up

November 29, 2012

Kiwi’s China dairy project receives first cows: Caleb Allison:

A Chinese dairy farm spearheaded by Kiwi dairy entrepreneur Howard Moore has received its first 3000 heifers from Australia.

Mr Moore – formerly technical manager at the Dairy Board and Kiwi Dairies – is the managing director of Taranaki Dairy Technologies, which is headquartered in Shanghai after he set it up two years ago. . .

Nearly 2 Million More Lambs But Third Smallest Lamb Crop:

An estimated 26.9 million lambs were tailed this spring – 1.9 million more than last year, according to Lamb Crop 2012, the latest report from Beef + Lamb New Zealand’s Economic Service.

Even then, this will be the third smallest lamb crop since the early 1950s. Only the previous two years were lower.

This year’s increase was due to slightly more ewes mated (+0.6%) and the sheep being in good condition thanks to favourable feed conditions before mating. There was also an increase in the number of lambs born from hoggets, according to B+LNZ Economic Service Executive Director, Rob Davison. . .

The Hobbit can help New Zealand farming:

Federated Farmers is hopeful increased lamb production over 2012/13 may offset softer international prices and the high New Zealand dollar. It is also hopeful The Hobbit may also spur overseas demand for all things kiwi including wool.

“The 2012/13 Lamb Crop may be the third smallest since the 1950’s, but being up by 1.9 million on last season is a positive,” says Jeanette Maxwell, Federated Farmers Meat & Fibre chairperson.

“While we currently need grass growth in some key areas, I am hopeful the increase in production may go some way to offset softer prices and that high Kiwi dollar. . .

Warning after livestock agent illegally tags cattle at saleyard:

 The conviction of a senior livestock agent in Blenheim serves as a warning that the illegal tagging of cattle will not be tolerated, says the Animal Health Board (AHB).

Richard John May, 66, and from Seddon, admitted two breaches of the Biosecurity Act after he “helped out a mate” by attaching three tags to a friend’s animals at the Blenheim public saleyard. The tags he used belonged to other farmers.

However, following a report from the on-site movement control and identification officer, the AHB’s own investigation led to May being prosecuted for the incident which took place in October last year. . . .

Wine industry profitability continues to show improvements in 2012:

Seventh annual financial benchmarking survey confirms gradual turnaround, but industry still has a long way to go

All but the largest New Zealand wineries have improved their profitability during the past financial year compared with results in 2011, according to a new survey.

Vintage 2012, the seventh annual financial benchmarking survey for the New Zealand wine industry, was released today by Deloitte and New Zealand Winegrowers. It tracks the results of survey respondents accounting for a third of the industry’s export sales revenue for the 2012 financial year. . .

Global Timber and Wood Products Market Update:

– a news brief from Wood Resources International LLC

Wood costs for pulp mills and sawmills in Brazil have fallen the past year and are currently among the lowest in the world, reports the Wood Resource Quarterly

Pulp mills and sawmills in Brazil became more competitive in 2012, because the costs for the wood raw-material, which accounts for about 70 percent of the production costs, have declined by over 20 percent since 2011, according to the Wood Resource Quarterly. . .

ANZ helps forge strong agriculture links between India and New Zealand:

NZ National Fieldays Society today signed a Memorandum of Understanding with The Confederation of Indian Industry – the industry organisation behind AGRO TECH, India’s largest agricultural technology trade event.

The Memorandum, which was brokered by ANZ, will provide the opportunity for collaboration between the two organisations – and their members – as they promote their international trade activities.

Jon Calder, CEO of NZ National Fieldays Society, and Sunil Kaushal, ANZ Head of India Relations, are in India as part of a business mission led by Minister for Primary Industries, Hon David Carter. The purpose of the mission is to forge closer economic relationships through the primary sector. . .

Why we need free trade – Gravedodger:

Stuff reports that 5400 horticultural producers are losing around 23 million dollars from tariffs being imposed as a precondition to foreign markets. . .

And a new use for milk which makes me wonder about the benefits of higher education:


Rural round-up

September 18, 2012

“Correction”predicted for 2012/13 sheep and beef farm profits

Beef + Lamb New Zealand’s (B+LNZ) New Season Outlook is expecting a correction that is likely to see average sheep and beef farm profit settle at around $96,500 for the 2012/13 season.

B+LNZ Economic Service Executive Director Rob Davison says profit before tax rose 30 per cent in 2011/12, which means this season’s predicted 34 per cent drop could be interpreted as a correction, from what was a near record farm profit in the 2011/12 year.

“While disappointing, it’s not entirely unexpected given the global recession,” says Davison. . .

Farmer’s Split-Lambing Trial Recognised in Ballance Farm Environment Awards:

Wairarapa farmers Tim and Belinda White are trying to breed a ewe that will lamb three times in two years.

For the past five years they have been running a trial on their 440ha farm at Matahiwi, about 10km west of Masterton, with the aim of identifying ewes that are capable of lambing every eight months.

‘Upperwood Farm’, which also grazes dairy heifers and finishes weaner bulls, runs about 2000 Poll Dorset- Dorper ewes – about half of which are mated soon after their spring-born lambs are weaned.

Tim White says the goal is to lamb these ewes again in May/June and then mate them in July while their lambs are still at foot. . .

New Zealand Infant Formula Exporters Association:

The New Zealand Infant Formula Exporters Association, to be branded as “Infant Formula New Zealand”, was formed last week.

The purposes of the Association are to represent and protect the interests of New Zealand Infant Formula Exporters.  To do this, the Association intends to develop an accreditation process for approved export brands.  It has a preference to be self-regulated, and is looking for a close partnership with Government. . .

Anchor Zero Lacto™ brings relief to tummy troubles:

Lactose intolerant Kiwis can now enjoy the full flavour of a morning coffee, the delicious taste of a smoothie, or the simple pleasure of a bowl of cereal thanks to Anchor Zero Lacto™, the only lactose-free fresh milk available in New Zealand.

Zero Lacto™ has all the goodness and taste of fresh cow’s milk, with none of the lactose, offering a tummy friendly and tasty option for people suffering from lactose intolerance.

Leading nutritionist Nikki Hart says many people try and deal with the problem of lactose intolerance by avoiding dairy and the milk chiller aisle altogether. . .

Naked telephony – Bruce Wills:

I was left naked this week.

No I have not suddenly joined some farmers’ naturist club but I am talking about my mobile phone.

In my rush to get to Wellington I was half way to the airport when I had a dread thought, felt my suit jacket then realised, I had left it on my desk at home. There was no time to turn around so for the past few days I have returned to an era before mobile telephony. . .

It is only when you go off the grid that you realise just how dependent we have all become on that little marvel of technology. . .

Landowners call for rambler cull – Newsbiscuit:

Britain’s farmers are facing an ‘unending tide’ of  ramblers, hell-bent on cluttering up the countryside. That’s why many land-owners are calling on the government to sanction a cull, or at  least introduce some natural predators.

Fields across Britain are now dotted with Gore-Tex and farmers have to remain vigilant, ready to ignore the next chirpy ‘hello’. ‘You never  know when a rambler is going to creep up behind you, and ask the name of all your bloody cows,’ complained Derek Winterbottom, from his farm near Ludlow. ‘The sods are always gazing at some tree or other and saying ‘it must be lovely living round here’. Well it was, until you  buggers showed up.’ . . .


Rural round-up

July 28, 2012

Kiwi a Transtasman winner:

Tim van de Molen, the Royal Agricultural Society of New Zealand (RAS) Rural Youth Ambassador, was announced as the Australasian Rural Youth Ambassador in the finals at the Darwin Royal Showgrounds.

This is a historic win for New Zealand, taking top honours in only the second year the competition has been extended transtasman.

Van de Molen, a 29-year-old agribusiness manager for ANZ and based in Waikato, is overwhelmed by the win. . .

Rapid lamb gains now in the past – Hugh Stringleman:

The drivers of sheep farm productivity increases are forecast to be throttled back over the coming decade, compared with the rapid pace of improvement over the past 20 years.

Total lamb weight produced per breeding ewe, lambing percentage and lamb carcase weight will ease off compared with past productivity increases which have been the envy of the national economy.

Beef + Lamb New Zealand chief economist Rob Davison told the Red Meat Sector Conference in Queenstown that an industry-wide discussion is needed on the right mix of lamb carcase weights for the future – whether farmers should push on above 18kg. . .

Ballance shareholders benefit from strong result

Another strong result by Ballance Agri-Nutrients has its 18,200 shareholders sharing in a $47 million rebate and dividend distribution.

Shareholders will receive $43.6 million through a $40 rebate per tonne of fertiliser purchased plus a further $3.4 million through an imputed dividend of $0.10 per share.

This will result in an average return of $44.29 per tonne, a result which compares well with last year’s record distribution averaging $50.29 per tonne. . .

Ravensdown announces new CEO:

Ravensdown, the 100% farmer-owned co-operative, has appointed Greg Campbell as the new CEO to replace chief executive Rodney Green when he retires on the 31st December 2012.

 In announcing the appointment, Chairman of Ravensdown, Mr Bill McLeod, commented that “Rodney Green had given us plenty of notice of his intention to retire, which gave us the luxury of time to conduct a really thorough search for his replacement. We are grateful for that, as Rodney will leave a very different Ravensdown to the one he took over in 1998. We especially thank Rodney, and acknowledge the job he has done growing and strengthening the company over the years of his stewardship. This meant we needed to find a special replacement to take over the reins from him.” . . .

North Islander set to defend title:

 Last year’s winner of the Canterbury A&P Association Mint Lamb Competition, Bill Feetham of Hastings, is preparing his entries for 2012 with the opening of this year’s competition launched this month.

 Farmers from throughout New Zealand are invited to showcase their quality lamb and compete in the 2012 Mint Lamb Competition held in conjunction with the country’s largest Agricultural and Pastoral Show, the Canterbury A&P Show. . .

Government scheme increaeses recycling on farm:

More than 650 tonnes of plastic farm waste has been recycled nationwide during the past year thanks to a government-funded scheme, Environment Minister Amy Adams says.

Under the product stewardship scheme, Plasback supplies more than 1000 recycling bins to New Zealand farms, and collects agricultural plastics such as bale wrap, silage wrap and covers, agrichemical containers and crop bags.

The waste is recycled into plastic resin pellets and then reused in new plastic products.

“Many farmers have been frustrated by the lack of options for dealing with plastic farm waste and know that burning or burying waste is not a sustainable solution,” Ms Adams says. . .

Allied Farmers granted waiver for $1.2M loan for bobby calf business:

Allied Farmers, the company whose market value was all but wiped out when it acquired the financial assets of Hanover Finance, has been granted a waiver to borrow up to $1.2 million for the operations of its bobby calf venture.

The waiver, granted by NZX Markets Supervision, was required because the loan would exceed 10 percent of Allied’s average market capitalisation of about $2.5 million and would have needed approval of shareholders. . .

REINZ Introduces New Farm Price Index:

REINZ is pleased to announce today the introduction of the REINZ Farm Price Index, as a superior and more accurate guide to changes in farm sale prices.

The new measure has been developed in conjunction with the Reserve Bank and adjusts for property specific factors such as location, size and farm type in measuring changes in farm prices.

“The REINZ Farm Price Index is less influenced by the type of farms that happen to sell, providing an improved measure of underlying farm prices,” says REINZ Rural Market Spokesman Brian Peacocke. . .

Canterbury vegetable grower takes national Young Grower title:

Andrew Scott from Canterbury has been named Young Grower of the Year at the Horticulture New Zealand Conference 2012.

Andrew, 29, was presented with his award last night after the day-long Young Grower of the Year competition held at Ellerslie Events Centre, Auckland, as part of this year’s Horticulture New Zealand Conference. . . .


Rural round-up

July 25, 2012

Alliance expands greenhouse measuring programme:

Alliance Group is expanding a green-house gas monitoring programme to all of its suppliers after a successful trial.

The meat co-operative introduced the web-based Hoofprint programme late last year and tested it with farmers supplying meat for Sainsbury’s supermarket chain in the UK.

It’s a software system that farmers can use to measure and monitor agricultural greenhouse gases associated with beef and lamb production on their farms and improve their productivity. . .

Lean manufacturing helps Tru-Test Group become first to achieve NZQA certification:

Tru-Test Group is bucking the trend towards outsourcing manufacturing to lower-cost economies overseas. The world leader in electric fencing, milk metering and animal weighing and recording, has chosen to keep more than 80 per cent of its production in Auckland.

Reflecting this commitment to the local market, Tru-Test Group has become the first New Zealand company to achieve a New Zealand Qualifications Authority (NZQA) Level 2 Certificate in Competitive Manufacturing for its entire production and stores staff.

The NZQA qualification allows factory operators to become actively involved in developing systems that improve productivity and quality. . .

Beef + Lamb NZ has photos and presentations from the Red Meat Sector conference here.

Among them are:

Opening address – Wayne McNee, Director general of Minsitry of Primary Industry.

NZ political environment  – Colin James.

The International Meat Industry – an update  – Murray Johnston General Manager Merchandise  Progressive Enterprises

An Australian perspective – market development, access and outlook – Scott Hansen, Director, Meat & Livestock Australia

Domestic trends and measuring progress against the Red Meat Sector Strategy  –  Rob Davison, Executive Director Economic Service, Beef + Lamb New Zealand

Best practice implementation – tertiary institutions, crown research institutes and industry working together – Dr Andrew West, Vice-Chancellor, Lincoln  University

Dairy sector – best practice in action – Dr Mark Paine, Strategy Investment Leader for People & Business, Dairy NZ

And from Facebook:


Beef & lamb incomes soar but from low base

September 10, 2011

Beef and lamb farm profit before tax increased 75% last season, however it was from a very low base.

Beef + Lamb NZ’s economic service new season outlook showed a welcome return to profit after several successive years of low or no profit,  including a 50 year low in 2007-08.

B+LNZ Economic Service Executive Director, Rob Davison said the increased returns came from a significant lift in international prices for meat and wool.

“At the farm gate, lamb was up 43 per cent, sheep meat 62 per cent while wool was up 43 per cent (from the previous year’s 100 year low) and beef was up 18 per cent.

“These price increases occurred despite the New Zealand dollar appreciating against the currencies in which the products were traded. The New Zealand dollar was up 11.0 per cent against the USD.”

Good returns are expected to continue this season, although back a little from last season.

For the current farming year just started, the outlook is for sheep and beef farm profit before tax to fall 7 per cent, largely from a stronger exchange rate. The outlook scenario is centred on the New Zealand dollar strengthening 2.5 per cent against the USD, 2.2 per cent against the GBP and 4.6 per cent against the Euro.

“This leaves gross farm revenue virtually unchanged (+1.2%) but on-farm expenditure is expected to increase 4.2 per cent with fertilizer usage up relative to recent years.”

Davison says farm profit is spent on tax first and then tax paid profit goes on debt reduction, capital machinery purchases and farm family living expenses.

Someone might like to point that out to left wing politicians who think farmers don’t pay tax.

The full report is here.


Upside to high $

June 1, 2011

The New Zealand dollar hit a post-float high of  82.62 US cents yesterday.

That makes exports traded in US currency more expensive but it also makes imports cheaper and the NZIER says it will help keep inflation down.

Inflationary pressures are building because businesses have seen their margins slimmed down and will want to recoup some ground when the economy picks up pace – likely to begin in 2012 as the rebuild of Christchurch gains pace, according to the institute Quarterly Predictions report.

“The RBNZ will need to raise rates next year towards 4% to offset these inflationary pressures,” NZIER principal economist Shamubeel Eaqub said in a statement. “A high NZD is helping to keep a lid on inflation for now. We expect the NZD to remain elevated for some time,” he said.

 Beef + Lamb New Zealand’s (B+LNZ) Economic Service’s report on movements in sheep and beef input prices showed a 4.1% increase in the year to the end of March this year, in contrast to a 2.9% decrease the previous year.

The increase has been driven by the price of fertiliser, fuel and increases in banking interest rates, says B+LNZ Economic Service Executive Director, Rob Davison.

 “The price rises for fertiliser and interest have a big impact given they are the largest areas of expenditure on sheep and beef farms.

If the higher dollar helps keep the price of fertiliser down and keeps a rein on inflation which in turn reduces the need for interest rate rises it will compensate for the currency’s impact on export prices.

Normally when the dollar is high farmers complain. There’s hardly been a whimper this time, and nor should there be. Commodity prices are still holding up and the higher dollar takes the pressure off the price of inputs like fuel, fertiliser and machinery.

The Fieldays open in a couple of weeks. They’re a barometer for farming confidence and exhibitors will be expecting to make good sales.


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