Rural round-up

February 2, 2018

New Zealand Agribusiness Outlook 2018:

Favourable market conditions should underpin a second year of broad-based profitability for New Zealand agriculture. Where the industry chooses to direct improved cash flow and focus amid this sustained positive run will be important for many years to come. . .

Lewis Road investor Southern Pastures ties up with Westland Milk – Paul McBeth:

Dairy farm fund Southern Pastures LP, which took a quarter stake in Lewis Road Creamery last year, will link with Westland Milk Products as a supplier from the 2018/19 season and with plans for a high-value product joint venture. Separately, Westland cut its forecast milk payout for this season.

Southern Pastures and Westland signed a letter of intent where the dairy farm investor’s nine Canterbury farms will supply an extra 4 million kilograms of milk solids to Westland from 2019, and investigate a business case for a 50/50 joint venture to create products from free-range, grass-fed milk based on strict animal welfare, health, sustainability, climate change and human rights standards. . . 

Why the CPTPP is important for New Zealand:

There is no question that our small, remote nation depends on trade. But there were times during the protracted negotiations that have now culminated in the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) when the visceral debate here could easily have led bystanders to believe New Zealanders specialise primarily in trading insults.

The fact that there is now a deal to be signed – after the efforts of successive prime ministers ranging from Helen Clark and John Key to Bill English and now Jacinda Ardern – is a cause for real celebration. Our role in recent decades as free-trade pioneers, in the teeth of other countries’ stubbornly defended protectionism, should be a source of national pride. Our exports reap more than $70 billion a year, but farmers and manufacturers know what courage it has taken to open our borders, forgo subsidies and eschew protectionism. They and the country are better off as a result. . . 

Environment and agriculture can both benefit from CPTTP:

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP) trade agreement has the potential to transform the agricultural sector and at the same time benefit the environment, agribusiness expert Dr Nic Lees of Lincoln University says.

However, he added, the public needed to be convinced of that.

The CPTTP is the re-negotiated Trans Pacific Partnership after the USA withdrew, and is a free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Negotiations have concluded between the countries but it is yet to be ratified by New Zealand. The TTP had met some public and political opposition. . .

Farm machinery sales back to 2014 levels – TAMA:

Sales of tractors in 2017 increased markedly, just topping the previous highest recorded levels of 2014, says NZ Tractor and Machinery Association (TAMA) General Manager, Ron Gall.

Mr Gall said the association recognised that some farmers in both islands were currently experiencing hardship with the very hot and dry conditions. The challenging drought conditions may affect sales in the coming months but it was hoped changing weather would provide some relief.

Mr Gall said in 2017, a total of 4079 tractors were sold. This is up 13% on 2016, up 14% on 2015 and even slightly up on the boom dairy year of 2014, which had 4062 sales. . . 

 

Rabobank Wine Quarterly Q1: Evolution of sourcing strategies:

2017 was a dynamic year for the wine industry, marked by short-term scarcity and rising prices, according to Rabobank’s latest Global Wine Quarterly report.

The report says while “2017 was an unusual one for the wine industry, forcing all players to rethink their short-term strategies” – changing consumer behaviour, global shifts in demand volumes and changing trading frameworks, could represent long-term structural changes.

“Although the unconventional year that 2017 was may just be a one-off, it may also be enough to accelerate deeper changes that were already developing in the wine industry,” says RaboResearch senior beverages analyst Maria Castroviejo. . . 

Green light for China opens up new export opportunities for leading supply group:

Leading avocado export supply group AVOCO has welcomed this week’s announcement that New Zealand market access to China has been granted for the 2018-19 export season.

AVOCO exports New Zealand avocados to various Asian markets under its AVANZA brand and the company has been preparing for access to China for some time. Preliminary planning has included the development of a market-specific brand name designed to be the exemplar brand from New Zealand for China. . . 

Millennials are leaving desk jobs for this surprising profession – Alexandra Hayes:

The millennial generation is often called out for its social media addictions, its work habits, and even its unhealthy ideals around perfection, but according to the Washington Post, many of them are diverging from the status ladder and leading a crusade toward a different purpose entirely: farming.

Take Liz Whitehurst. Two years ago, she left her non-profit job and bought her farm, Owl’s Nest, from a retiring farmer. Now she grows an array of organically certified produce and sells to restaurants, through CSA shares, or at local farmers markets.

According to the latest Census of Agriculture in 2012, the U.S. Department of Agriculture reports that 69 percent of farmers today have a college degree, a number that suggests more millennials are leaving traditional desk jobs to pursue this very different life. . .

Manuka South® latest Manuka honey is making a legendary entrance:

The highly anticipated Limited Reserve batch of 26+ UMF features some of the rarest and most potent Manuka honey available in the world. Manuka South® is releasing only a limited amount of the high-end honey.

Manuka South® 26+ Limited Reserve – available at select Aotea Gifts stores in New Zealand – is the latest in the line of premium Manuka honey products produced by Manuka South®, a trusted brand from New Zealand Health Food Company (NZHF). But it will also be the rarest among them, because jars won’t be on store shelves long. . . 


Rural round-up

July 20, 2012

Westland Milk Products Celebrates 75 years:

New Zealand’s second biggest dairy cooperative, Westland Milk Products, this week celebrates 75 years of being an indomitable ‘David’ in the ‘Goliath’ that is New Zealand’s dairy industry.

The Hokitika-based company, which also has an office and plant in Rolleston, will not only be looking to its colourful past this week, but also celebrating its future as a highly successful independent, award-winning dairy co-operative.

Dairy farming has been present on the West Coast for almost 150 years with the Hokitika Dairy Company formed in 1868. Other, often quite localised, dairy co-operatives followed. Westland Cool Storage and Dairy Company Ltd, Kokatahi Co-operative and Waitaha Co-operative formed the nucleus of the Westland Co-operative Dairy Company in 1937. Other Coast dairy companies folded or joined over the ensuing years, the latest being Karamea which joined the Westland Co-operative in 1987. . .

NZ just 11th on global food security index:

New Zealand sits at just 11th on the Global Food Security Index, dragged down by ranking 18th for quality and safety – and 16th for affordability.

However, it is seventh on the third criteria, availability.

The index found that the US, Denmark, Norway and France led the world in food security, thanks to ample supplies, high incomes, low costs for food relative to other expenditure and significant research and development concentrated on food production . .

Farm succession start the crucial conversation – Pasture to Profit:

The OneFarm (www.onefarm.ac.nz) Farm Succession Summit brought 80 NZ & International rural professionals together who all work with farmers on Farm Succession.

 It’s very important that these Farm Family Facilitators, Accountants, Consultants & Solicitors specializing in Farm Succession all work as a team rather than in isolation. 
ANZ Bank data suggests that most farmers believe it is a very important issue to be discussed, planned & implemented yet fewer than 10% have a Farm Succession Plan. . .

CRT reaches new heights:

New Zealand farmer-owned co-operative CRT has posted its best ever annual result, setting new heights in both turnover and operating profits in 2012.

Revenue growth of $200 million, (18%), was achieved to create a new record of $1.292 billion, while operating profit grew 55% to $13.149 million.

Chairman Don McFarlane announced that a record bonus rebate of $9.75 million would be distributed to shareholders. This was the biggest bonus distribution CRT had made in its 49 year history, and was consistent with recent years in representing 75% of the annual operating surplus. . .

Growing Green – Transformation of farming, forestry and fishing:

This not-to-be-missed event will explore whether the primary production sector needs to lift its game to maximize productivity and minimize its footprint.

Register now to secure your place!

One of our international speakers, Paul Gilding, will be introduced by Bruce Donnison, Group General Manager Global Sustainability at Fonterra Co-operative Group.

Paul will address the topic Feeding the world and saving the planet: can we do both? . . .

Potatoes NZ farewell key industry leader:

This week Potatoes New Zealand business manager Ron Gall announced his resignation after 22 years working with the industry representative.

His resignation from Potatoes New Zealand and Horticulture New Zealand will come into effect from 21 December 2012 and concludes one of the most distinguished industry careers undertaken by a horticulture business manager. . .

New Spokesperson for Soil & Health Association – Organic NZ:

The Soil & Health Association – Organic NZ have announced the appointment of Debbie Swanwick as their new spokesperson.

The Association has been in operation for seventy years advocating “Healthy Soil – Healthy Food – Healthy People” to create an organic New Zealand. It is the largest membership organisation supporting organic food and farming in New Zealand. . .

Quad sales continue to grow:

Figures just released by the Motor Industry Association show that quad bike sales for the first half of 2012 were up nearly 20% on the same period last year.

“These numbers confirm continuing strength in the agricultural sector”, said Mr Clive Hellyar, Manager of the Motor Cycle Division of the Motor Industry Association. “This is also evident in the two wheeled off road sector where the reduction in sales compared with 2011 is principally recreational off road bikes while two wheeled farm bikes sales are continuing at much the same level as 2011. Some of the growth in quad sales can also be attributed to an increase in the number of side by side quad vehicles which are used mainly in agriculture.” . . .


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