Rural round-up

27/01/2020

Land values slide – Gerald Piddock:

Dairy land values will slide over the next five years as farming is put under increased economic and environmental pressure, Rabobank says.

Tighter credit, reduced foreign capital and pending environmental change will all lead to softer dairy land prices in the short to medium term,  Rabobank’s Afloat But Drifting Backwards – A Look at Dairy Land Values Over the Next Five Years report says.

And an erosion of farmgate milk prices could put more stress on dairy land prices, author and dairy analyst Emma Higgins said.

The bank forecasts an average farmgate milk price of $6.25/kg milksolids for the five years – above the 10-year average but below recent prices. . . 

Federated Farmers backs call to slice agricultural subsidies:

Cutting agricultural subsidies that distort trade and production is a vital step in tackling world hunger and climate change challenges, Federated Farmers says.

“We’re right behind the messages on further reform of WTO rules on subsidies that the Cairns Group of major exporting countries put to world leaders in Davos this week,” Feds President Katie Milne said 

“New Zealand farmers are positive proof that reducing domestic subsidies drives innovation and food production efficiency, and ultimately delivers for the consumer in terms of quality, choice and prices, as well as for the environment.  Our meat and milk have one of the lowest carbon footprints per kilogram of product in the world.” . . 

Renewed call for easier trade in agriculture welcomed in NZ – Eric Frykberg:

A veteran trade lobby group emerged from hibernation in Switzerland last week to renew the call for easier trade in agriculture.

The 19-nation Cairns Group made its plea after ministers met on the sidelines of the World Economic Forum in Davos last week.

The 33-year-old Cairns Group helped establish the World Trade Organisation (WTO) in the 1990s.

But it went off the radar, after a later effort, the so-called Doha Round of trade talks, faltered. . . 

Total ban on livestock exports could threaten NZ’s trad – Fed Farmers – MAja Burry:

Federated Farmers is warning a ban on live exports would cut off an income stream to thousands of New Zealand farmers.

The government launched a review into the practice of exporting livestock in June last year, after New Zealand and Australian cattle died when being shipped to Sri Lanka last year.

The review is focused on cattle, deer, goat and sheep exports. A consolation document prepared by the Ministry for Primary Industries puts forward four options, which range from improving current systems to a total ban on the practice.

Public consultation on the review closed this week, with more than 3500 submissions being lodged with the ministry. . . 

Obstacles remain to a free trade deal with the EU – Sam Sachdeva :

Bold talk of an FTA between New Zealand and the European Union by the end of 2019 proved misplaced – and wrapping up talks in 2020 may also be a stretch unless major hurdles are overcome

By the end of 2019, Jacinda Ardern’s so-called “year of delivery” was as much about what her Government had failed to deliver as what it had, and near the top of the ‘not achieved’ list was a free trade deal with the European Union.

In fairness, Ardern was not alone in hoping a deal with the EU could be wrapped up swiftly. . . 

Maranoa Kangaroo Co-op offers graziers payment for roos- Sally Cripps:

A bold move in the kangaroo harvesting industry has been unveiled by the Maranoa Kangaroo Harvesters and Growers Cooperative.

The group based at Mitchell has resolved to introduce a 10c/kg payment to graziers for kangaroos harvested on their property from February 1, subject to conditions.

Among them are that both the grazier and the harvester must be members of the cooperative, a one-off $50 fee, and that the grazier must not apply for or use a Damage Mitigation Permit. . . 

 


Rural round-up

18/07/2016

Market monopolies a bigger threat to agricultural markets than subsidies – Gerald Piddock:

Market monopolies and not subsidies are the biggest threat to economic sustainability in world agricultural markets, says an international expert.

Belgium-based AgriCord managing director Ignance Coussement said the existence of the monopolies made it difficult for smaller farmers around the world to compete against larger scale “industrialised’ farmers within a nation’s domestic market.

How smaller family farming enterprises competed against these larger scale farms in the market was a tricky issue, he said. . . 

John Key to push for Indonesia to lift beef trade restrictions for Kiwi exporters – Sam Sachdeva:

Prime Minister John Key hopes rising beef prices, as well as a global trade case, will encourage Indonesia to lift restrictions on Kiwi beef imports.

Key has promised to raise concerns with Indonesian president Joko Widodo when the pair meet in Jakarta on Tuesday evening (NZ time).

New Zealand has joined 14 other countries in taking action against Indonesia through the World Trade Organisation over its beef import restrictions and quotas. . . 

When computers became part of NZ farming:

Lincoln University’s role in making the computer one of the essential tools on the farm is told in a new book by Dr Peter Nuthall, an Honorary Associate Professor in Lincoln’s Department of Land Management and Systems.

‘Dare to compute. The early years in the development and uptake of farm computer systems’ is written about the Kellogg Farm Management Unit (KFMU) at Lincoln, which Dr Nuthall founded and was head of for all but two years of its existence, from 1980 to 1995.  

The unit was initially funded by the Kellogg Foundation in the United States, a philanthropic fund. KFMU aimed to develop computer software for farm and horticultural property managers, and train them in its use.  

Dr Nuthall says the history of the unit needs to be told as it played an important part in introducing computer technology and software to primary producers in New Zealand and Australia. . . 

Quarterly tractor sales buoyant despite dairy payout:

“New Zealand Tractor sales are relatively buoyant, despite the current dairy payout,” says NZ Tractor and Machinery Association President, Mark Hamilton-Manns.

The second quarter results of New Zealand tractor sales, compiled by the NZ Tractor and Machinery Association, show tractor sales declined slightly, by 8.5%, compared to the same quarter last year. Several segments saw an increase, however, including the consumer segment which grew by 15%, as more Kiwis bought smaller 20–60hp compact tractors for their lifestyle blocks, hire fleets and some commercial applications. . . 

Early Winter Sees Prices Ease:

Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were seven fewer farm sales (-1.5%) for the three months ended June 2016 than for the three months ended June 2015. Overall, there were 472 farm sales in the three months ended June 2016, compared to 489 farm sales for the three months ended May 2016 (-3.5%), and 479 farm sales for the three months ended June 2015. . . 

Manuka honey buzz boosts farmland prices Alexa Cook:

Demand for manuka honey has boosted the value of farmland, with many properties doubling price over the past couple of years, a real estate firm says.

The manuka honey industry has surged, with exports growing by 45 percent last year to $281 million. New Zealand is now the third largest exporter of honey by value.

Bayleys Real Estate rural agent Mark Monckton, who is based in Taranaki, said the growth was good news for some of his region’s more remote farming businesses. . . 

 Landmark merger a win-win for organic sector:

The organic community celebrated the landmark merger of two long-established charitable organisations yesterday. Members of the Soil & Health Association of NZ Inc and the New Zealand Biological Producers and Consumers Society Inc (BioGro Society) voted in favour of the proposal. This means that the Society will transfer its assets to Soil & Health, on winding up on 30 September.

The merger brings together the skills and resources of the two charities into one strong, unified organic sector body.

Soil & Health will become the proud new owner of BioGro NZ Ltd, New Zealand’s largest organic certification agency. This will empower Soil & Health to carry out its vital education and advocacy work for healthy soil, healthy food and healthy people. . . 

Synlait GM Accepts next international role:

Michael Stein, Synlait’s General Manager Quality and Regulatory, has accepted the role of Quality and Food Safety Director, Asia Pacific, with Danone Nutricia Early Life Nutrition.

“This is a great personal and professional opportunity for Michael and a clear milestone in his international career,” said John Penno, Synlait’s CEO and Managing Director.

Mr Penno was disappointed to learn Mr Stein will depart Synlait at the end of September 2016, but fully supports his decision. . . 


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