Rural round-up

May 23, 2020

Covid-19: trusting business to work – Todd Muller:

National’s agriculture spokesman, Todd Muller on the role the Government needs to play for agriculture businesses.

As we continue to grapple with the repercussions of COVID-19, we must look at what’s working and use that as a template for other business sectors.

The kiwifruit industry has been a shining example of how it is possible to continue operating at a high capacity, while adjusting to the restrictions of COVID-19.

It has completely re-engineered its systems from harvesting the fruit, to picking the fruit, to packing the fruit and we’ve seen a bumper season with record amounts of NZ kiwifruit making their way across the world as a result.

This has also meant the industry has been able to keep 28,000 seasonal workers in employment, while recording no COVID-19 incidents. This is the sort of leadership that shows how we can keep people safe and keep the economy moving at the same time. . .

Burger run shows food folly – Annette Scott:

The plan for a food security policy is long overdue with the McDonalds lettuce shortage highlighting its need more than ever, Horticulture New Zealand chief executive Mike Chapman says.

It is a warning that should not be ignored.

“Vegetable shortages will become a more frequent occurrence unless we get serious about ensuring we have enough food to feed NZ. 

“Like a dog howling at the moon HortNZ has been on about the need for NZ to have a food security policy and plan.  . . 

Milk price impacts vary widely – Hugh Stringleman:

Fonterra has published a shiny set of third-quarter numbers to cushion the impact on farmer-shareholders of a $1/kg reduction in the mid-point of its milk price forecast for next season.

Ten days before the start of the new season it released a wide-ranging $5.40 to $6.90 opening forecast – representing the difference between despair and satisfaction for New Zealand farmers.

At the same time it shrank the range for this season, now $7.10 to $7.30, and showed the big blocks are in place for a solid outcome to a tumultuous year. . . 

Family sheep and beef farm takes top regional spot at Taranaki Farm Environment Awards:

A long-term commitment to environmental stewardship has earned Rukumoana Farms the top spot at Taranaki’s Ballance Farm Environment Awards, run by the New Zealand Farm Environment Trust.

The awards champion sustainable farming and growing through a programme which sees one Regional Supreme Winner selected from each of the 11 regions involved. As a Regional Supreme Winner, Rukumoana Farms is now in the running for the Gordon Stephenson Trophy, with the winner of this national award to be announced at a later date.

Rukumoana Farms is run by the Brown family – Robert, Jane, Nick, Sophie, Will, Kate and Sam. Thiscohesive family unitissuccessfully driving this farm that has significantlygrownduring the 34 yearsthatRobertand Jane have been involved. . .

Fonterra provides performance and milk price updates:

Fonterra Co-operative Group Limited today announced its third-quarter business update, narrowed the range for its 2019/2020 forecast Farmgate Milk Price, and announced an opening forecast Farmgate Milk Price range for the 2020/2021 season.

  • Total Group Earnings Before Interest and Tax (EBIT): $1.1 billion, up from $378 million
  • Total Group normalised EBIT: $815 million, up from $514 million
  • Total Group normalised gross margin: $2.5 billion, up from $2.2 billion
  • Normalised Total Group operating expenses: $1,665 million, down $148 million from $1,813 million
  • Free cash flow: $698 million, up $1.4 billion
  • Net debt: $5.7 billion, down from $7.4 billion
  • Normalised Ingredients EBIT: $668 million, up from $615 million
  • Normalised Foodservice EBIT: $208 million, up from $135 million
  • Normalised Consumer EBIT: $187 million, up from $128 million
  • Full year forecast underlying earnings: 15-25 cents per share
  • 2019/20 forecast Farmgate Milk Price range: $7.10 – $7.30 per kgMS
  • Opening 2020/21 forecast Farmgate Milk Price range: $5.40 – $6.90 per kgMS
  • 2020/21 Advance Rate Schedule has been set off the mid-point of $6.15 per kgMS . .

Union boss doffs hat to meat companies – Peter Burke:

Meat processing companies have gained praise for the way they handled the challenges around COVID-19 from an unlikely source – the union.

National secretary of the Meat Workers Union, Daryl Carran, who recently took up the role, says all the meat companies have played the game by the rules very well. He told Rural News that if all the problems in the sector were handled in the way that COVID has been, it would be great.

Carran says currently between 75% and 80% of meat workers are on the job and those that aren’t working are either over 70 years of age, have underlying health issues or have personal family circumstances that make it safer for them – and others in the workforce – to remain in isolation

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