Rural round-up

March 4, 2020

Austrian billionaire to convert farm to forestry:

An Austrian billionaire has been granted consent to purchase an $8m Hill Country farm.

The Overseas Investment Office (OIO) has granted Wolfgang Leitner consent to buy a 800ha property located in Kotemaori, Wairoa and convert it to forestry.

The property known as Ponui Station currently has 714ha being grazed by sheep and beef stock.  . . 

They just don’t care – Trish Rankin:

Taranaki farmer and 2019 Dairy Woman of the Year Trish Rankin recently attended the annual agribusiness seminar at Harvard Business School in the United States. What she heard was astonishing. What she said shocked them.

New Zealand can be the possible solution for the impossible customer. 

That was my key takeaway from Harvard Business School’s agribusiness seminar.

The impossible customer wants food that is better for the planet, their health, animals and people. NZ products can be the answer. . . 

Scarab beetles provide agribusiness insights – Sally Rae:

“It’s time for the dung beetle”.

So says Dr Shaun Forgie, who admits he has been obsessed with the critters since the early 1990s.

But it was not until 2011 that an application to import 11 different scarab species — suitable for all New Zealand climatic conditions — was approved.

Dr Forgie, the co-founder of Auckland-based Dung Beetle Innovations, was in Dunedin on Friday to speak at a dung beetle seminar at John McGlashan College. . . 

Meat export prices hit record levels:

Export prices for meat, including beef and lamb, rose to their highest-ever level in the December 2019 quarter, boosting overall export prices, Stats NZ said today.

“Meat export prices have risen for three quarters in a row, on the back of strong demand towards the end of last year,” business prices manager Bryan Downes said.

Meat volumes rose 3.2 percent, and values rose 12 percent in the December 2019 quarter. . . 

Young, Jex-Blake re-appointed unopposed:

Richard Young and Dan Jex Blake have been re-appointed unopposed to the Silver Fern Farms Co-operative Board.

Chairman Richard Young said he was pleased the outcome provided continuity for the Co-operative and for Silver Fern Farms Limited.

“This outcome gives continuity for our Co-operative and both Dan and I recognise the responsibility we have as Directors to create enduring value for shareholders. . .

Muddy waters end cotton-pickin’ drought blues – Charlie Peel:

As Paul Brimblecombe looks out over the sea of water pouring into Cubbie Station’s vast dams for the first time since 2012, he sees more than just muddy liquid.

The Cubby Agriculture chief executive can visualise the station’s first crops in two years and the economic boom in the region around Dirranbandi near the Queensland-NSW border.

Floodwater coursing through southwestern Queensland has been pouring into the giant water reservoirs for the past week after massive downpours in the 136,014 sq km Balonne-Condamine catchment area. . . 

 


Rural round-up

February 15, 2020

No sense – Rural News:

How can you be green when you are in the red?

That is the very question many rural communities and farmers around the country should be asking the Government.

Its proposed changes to the Emissions Trading Scheme (ETS) – dropped just before Christmas with a very truncated submission period – has all the hallmarks of the Government looking like it is consulting; when it has already made up its mind.

In submissions to the parliamentary select committee on environment, which is overseeing the ETS changes, Federated Farmers, Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA) highlighted the lack of any robust analysis of socio-economic impacts of the ETS amendment to farming and rural communities. . .

New law won’t solve money woes – Colin Williscroft:

Reluctance by some farmers to make tough decisions based on their balance sheets is becoming the elephant in the room in some farming circles, Feilding-based BakerAg farm consultant Gary Massicks says.

The situation is not one that has happened overnight but changing influences such as banking policy, pressure exacerbated by social media, new environmental demands and regulations and increasingly irregular weather patterns are changing the world farmers operate in so they need to adapt.

Massicks has spoken to his peers around the country and though the problem is not widespread it exists. . .

New Zealand wine exports continue their steady growth going into the new decade

New Zealand wineries are continuing their steady growth on the world stage, driven largely by the famed Marlborough Sauvignon Blanc. According to NZWine.com, the wine industry recorded its 24th consecutive year of export growth in 2019.

This figure puts New Zealand on track to hit a $2 billion target for 2020, driven largely by an explosion of popularity in the United States and Europe. There are about 500 wineries in New Zealand, the bulk of whom produce Marlborough Sauvignon as their primary wine. . .

Zespri reveals sustainability commitments:

Zespri reveals sustainability commitments including move to 100 percent recyclable, reusable or compostable packaging by 2025

Zespri, the world’s leading marketer of kiwifruit, has announced a new commitment to make all of its packaging 100 percent reusable, recyclable or compostable by 2025.

The announcement is one of a suite of sustainability commitments shared today with growers, consumers and suppliers at the New Zealand kiwifruit industry’s marquee conference – Momentum 2020: Standing Up and Standing Out. . . .

Meaty increases push up annual food prices:

Higher prices for meat, poultry, and fish contributed to a 3.5 percent increase in food prices for the year ended January 2020, the largest annual rise in food prices in over eight years, Stats NZ said today.

“Meat, poultry, and fish prices have increased 6.0 percent in the year. Restaurant and ready-to-eat meals increased 3.4 percent, while fruit and vegetable prices were up 2.7 percent,” consumer prices manager Sarah Johnson said.

“Both beef mince and blade steak prices reached all-time highs in January, while bacon and lamb prices have increased sharply in the past 12 months. Decreased pork production in China during 2019 has increased export demand for New Zealand meat products, pushing prices up.” . .

 

“I can’t imagine myself anywhere but horticulture”, Bay of Plenty Young Grower Of The Year:

Melissa van den Heuvel, an Industry Systems Associate at NZ Avocado, has been named Bay of Plenty’s Young Grower for 2020 at an awards dinner in Tauranga.

The competition took place last Saturday, 8 February, at Te Puke Showgrounds, where the eight competitors tested their skills and ability to run a successful orchard in a series of challenges. These were followed by a speech competition discussing ‘how can we as growers be better members of the wider community’ at the gala dinner on Wednesday night.

Melissa also excelled in individual challenges, including the Horticultural Biosecurity challenge and Avocado Tree Planting challenge, and especially impressed judges with her speech on passing knowledge to future generations. . .


Rural round-up

February 1, 2020

Dairy debt and declining values create an equity pincer – Keith Woodford:

Some weeks back I wrote how the market value of dairy land is declining substantially. The biggest factor is a change in bank-lending policies such that local buyers cannot get funding. The second key factor is that foreign buyers can no longer buy land for dairy farming. A third factor is pessimism about the long-term future relating to environmental issues and labour availability.

The consequence of these factors is that although many dairy farmers would like to sell, there are very few buyers. This is despite three years of good dairy prices and now a fourth good year heading into the home straight with nearly all farmers making operating profits.

In this article, I build on that situation to explore the proportion of farmers who, with declining asset values, have either exhausted or are close to exhausting their previous equity. . . 

New levy to hit farmers – Peter Burke:

The New Zealand Agricultural Aviation Association (NZAAA) is up in arms about a proposed new safety levy.

They say it unfairly targets the ag sector and will lead to increased costs of spreading fertiliser and spraying crops. NZAAA chairman Tony Michelle says his organisation is happy to pay levies set by the Civil Aviation Authority (CAA). However, he believes the new proposals are almost double the present ones and says there is a huge inconsistency in the way these would be applied.

Some operators believe the ag sector is seen as a soft target by the CAA, because it assumes the new charges will just be passed on to farmers.

Fonterra’s Te Awamutu site moves to pellet power:

Fonterra is taking another step forward in its commitment to renewable energy as it announces that its Te Awamutu site will be coal free next season. 

Until now the site has used a combination of fuels to process milk – including coal.  This latest move, follows a trial last year and means it will switch from using coal at the end of this season, starting the 2020/21 season powering the boiler with wood pellets. 

Fonterra’s Sustainable Energy and Utility Manager Linda Thompson says it’s an exciting step for the Co-operative and, in particular, the Te Awamutu team. . .

China overtakes the US as top beef market:

China overtook the United States as the biggest market for New Zealand beef exports in 2019, Stats NZ said today. 

In the year ended December 2019, beef exports to China rose $880 million (112 percent) from 2018 to reach $1.7 billion. In contrast, beef exports to the US fell $245 million (20 percent) to $956 million.

“China became the number one destination for beef exports from New Zealand in 2019,” international statistics manager Darren Allan said. . . 

LIC half-year revenue up as farmers invest in ‘precision farming‘:

Performance Highlights H1 2019-20:

$163 million total revenue, up 1.4% from $161 million in the same period last year.

$30.3 million net profit after tax (NPAT), down 7.6% from $32.8 million in the same period last year.
$58.4 million earnings before interest, tax, depreciation and amortisation (EBITDA), down 1.5%.
$43.1 million earnings before interest and tax (EBIT), down 6.5%.
Underlying earnings (NPAT excl bull valuation change)* range remains forecast to be $21-25 million for year-end, up from $19.5 million in 2018-19. . . 

Farm Debt Mediation Scheme – next steps:

The Ministry for Primary Industries (MPI) is taking steps to establish the new Farm Debt Mediation Scheme, which will begin operating on 1 July 2020.

From next week MPI will be able to consider applications from mediation organisations wanting to take part in this scheme.

“We’ve already heard from leading mediation organisations that are interested in participating. If an organisation is approved, they will then make sure their mediators are trained for the new scheme,” says Karen Adair, MPI’s deputy director-general of Agriculture and Investment Services.

The Farm Debt Mediation Act became law on 13 December 2019 and brings a new approach to farm debt mediation. . . 


Rural round-up

January 30, 2020

The journey’s only just begun – Mark Butterick:

Member of lobby group 50 Shades of Green, Mike Butterick on what the group is standing for in 2020.

What an extraordinary nine months since the first meeting in the Wairarapa of people concerned with the rapid change of land use from sheep and beef production into blanket planting pine trees.

It’s been quite the journey; our conclusion is a lack of strategic thinking and a reluctance to get out from behind Wellington desks has driven some bizarre decision making delivering perverse outcomes for NZ Inc. NZ farming won’t be digging itself out of these impacts with production gains.

We are opposed to the sale of good productive agricultural land to subsidised forestry in the way of carbon credits. In our view, it’s undermining all kiwis’ short- and long-term wealth and wellbeing.  . . 

Meat tax ‘unnecessary’ when primary sector already making emission cuts, farming industry says :

Beef and Lamb New Zealand says a potential meat tax in the United Kingdom would be “unnecessary” when the primary sector is already doing their bit to cut emissions. 

A report by the UK’s Climate Change Committee is proposing a tax could help reduce consumption of meat and dairy products by 20 per cent.

The Committee said the ‘meat tax’ could also prevent seven million tonnes of carbon dioxide being released into the atmosphere by the industry. 

However, Beef and Lamb NZ spokesperson Jeremy Baker told TVNZ1’s Breakfast this morning the “blunt” proposal by the Climate Change Committee would not be needed, when the industry has already cut their emissions by 30 per cent since 1990.  . . 

Farming leaders must set record straight – Steven Cranston:

Now the Government has handed the responsibility of how agriculture will manage and reduce its emissions back to the industry itself, we have been landed an incredible opportunity to turn our emissions profile into the positive story it deserves to be.

The message we need to start sending is that agriculture has one of the smallest global warming impacts of any major industry in New Zealand. The only way to demonstrate that is by completing a full emissions budget.

The routine criticism that farmers receive is largely a result of our industries own failure to tell the whole story. Agriculture has taken a defensive approach for too long. Simply saying we are efficient compared to other global producers is selling ourselves short. Agriculture in general is nowhere near as harmful to the climate as is often described and NZ, with our large swaths of native bush probably contributes less to global warming than any other international producer. We only have ourselves to blame for the situation we now find ourselves in. . .

 

Helping hand with heavy metal – Mark Daniel:

Tractor and machinery distributors have stepped in to offer assistance to fire-affected Aussie farmers.

While rain has brought some relief to the fire-ravaged areas of Australia; it will take many months to clean up, re-fence, re-stock, replant crops, grow forage for animals and restore a sense of normality.

Several tractor and machinery distributors have recognised the plight of their customers and are taking positive steps to help with the recovery. New Zealand-owned PFG Australia, part of the Power Farming Group based in Morrinsville, has launched its Fire Relief Programme 2020. This will see the company working with key suppliers to initiate clean up and recovery operations throughout Australia. The initiative will run for the whole year, utilising a fleet of tractors and machinery valued at around AU$2million.  . . 

Sisters taking equestrian world by storm – Sally Brooker:

Sisters growing up on a North Otago dairy farm have leapt into national prominence.

Emma (13) and Samantha (14) Gillies finished first and second respectively in the open pony championship at the national showjumping championships in Christchurch this month.

Less than three seconds and only five points separated them after five rounds of competition.

The girls live at Waitaki Bridge, just south of the Waitaki River, on a farm running 1100 cows. . . 

Records all round for dairy and meat exports:

The first four months of the 2019/20 dairy export season has set records, boosted by higher prices and volumes, Stats NZ said today.

Lamb and beef export prices also reached record levels at the end of 2019. Dairy products and meat, New Zealand’s top goods exports, together account for almost 40 percent of the value of annual goods exports.

In the ongoing 2019/20 dairy export season, the value of dairy exports rose 17 percent from August to December 2019 compared with the same period last year, with quantity up 6.7 percent. . . 

Brit meat eaters say they feel ‘shamed’ but James Haskell slams ‘dangerous nonsense’ – Rob Knight &Joseph Wilkes:

As a study of 2,000 adults found a quarter of meat eaters feel shamed in this pro vegan/vegetarian era, I’m A Celeb star James Haskell slams ‘nonsense written about meat which I think is really dangerous’

Beefcake athlete James Haskell advised true meat eaters not to be ‘shamed’ into shunning bacon, beef and banger meal favourites – as long as their diet is balanced.

Man-mountain rugby star James revealed millions of carnivores fear criticism over their choice of food in this pro vegan/vegetarian era.

A study of 2,000 adults found a quarter of meat eaters feel shamed for their culinary choice, with one half admitting they went on to cut down their meat-based protein intake. .  .


Rural round-up

January 18, 2020

Disease’s cost killed meat firm – Jacob McSweeny:

Meat production at a 100-year-old Dunedin company has ceased and 13 staff have been made redundant but the owner of The Craft Meat Company says the business will live on.

The decision came after meat producers’ profits were cut by rising costs due to a global shortage of protein triggered by the African swine fever epidemic, owner Grant Howie said.

‘‘[It was] the most gut-wrenching thing I’ve ever had to do,’’ Mr Howie said of the decision to axe staff. . . 

Sage softens lease land changes – Neal Wallace:

The Government appears to have softened the sharpest edges of proposed changes to the management of pastoral lease land while confirming farming will continue in the South Island high country.

The bill detailing changes to the Crown Pastoral Lands Act appears to back down on initial proposals that included greater political oversight of the activities of the Commissioner of Crown Lands, traditionally an independent position.

It seems also to accept submissions from farming sectors that lessees have legal rights to pasturage and quiet enjoyment of their land, which would have been compromised by the original recommendations. . . 

Fonterra pioneer expects much better:

One of the architects of Fonterra says he’s very disappointed with the co-op’s performance over the years.

Tirau farmer, Tony Wilding says farmers expected better when they formed the co-op in 2001. “It’s not the performance we had in mind when we formed Fonterra,” he told Rural News.

Wilding received a New Zealand Order of Merit in the New Year’s honours list for his contribution to the dairy sector and community. . .

New chief executive for Meat Industry Association – Sudesh Kissun:

The Meat Industry Association has appointed Sirma Karapeeva as its new chief executive.

Karapeeva, who is currently the Meat Industry Association’s (MIA) trade and economic manager, has been with the trade association since 2015. She replaces Tim Ritchie who is retiring after 12 years in the role.

Karapeeva, who takes over in April, held a variety of trade, policy and regulatory roles in Government before joining MIA.

Kiwifruit prices hit record high:

Kiwifruit prices were at an all-time high in December 2019, with prices for seasonal fruit and vegetables also up, Stats NZ said today.

“Kiwifruit prices rose 32 percent in December to a weighted average price of $8.27 per kilo, an all-time high,” acting consumer prices manager James Griffin said.

“This compares with $4.24 in December last year.” . . 

Fonterra Responsible Dairying Award nominations open:

Nominations to a national award that recognises dairy farmers who demonstrate leadership in their approach to sustainable dairying and who are ambassadors for the industry open January 15th.

The Fonterra Responsible Dairying Award was introduced by the New Zealand Dairy Industry Awards to recognise those dairy farmers who are respected by their farming peers and their community for their attitude and role in sustainable dairying. Entry for this award is by nomination only via dairyindustryawards.co.nz. . . 


Rural round-up

December 21, 2019

 Australian farmers receive sick letters telling them to ‘use a bullet on themselves – Karen Ruiz:

Farmers across NSW have become the targets of abusive letters urging them to ‘use a bullet’ on themselves if they ‘can’t handle’ the drought. 

Several residents in Dubbo, Walgett and Peak Hill in the state’s western region reported receiving the disturbing notes last month, police said.  

One of the letters, obtained by The Daily Telegraph, had been typed in a large font on white paper and is believed to have been hand delivered.   . . 

Profit shortfall from regenerative grazing spelt out – Shan Goodwin:

ANALYSIS has shown running a livestock operation under regenerative agriculture principles over a period of ten years sets profit back to the tune of $2.46m.

The work by prominent farm business consultants Holmes Sackett found farms not classified as RA systems generated operating returns of 4.22 per cent, compared to those who were classified RA returning only 1.66pc.

Holmes Sackett director John Francis said the analysis was not a criticism of the philosophy of RA but an analysis of the financial performance of these systems relative to other farm management practices. .

Farmers’ tips for staying well :

How do other farmers look after themselves and their teams? Check out the advice below, including some great ideas from Farmstrong.

Farmstrong’s top tips

Farmstrong is a nationwide, rural wellbeing initiative that helps farmers and their families cope with the ups and downs of farming. Here are some of its suggestions for keeping well.

    • Stay connected – Surround yourself with a network of people you can reach out to. It can be as simple as having a conversation in the pub or over the fence.
    • Keep active – Biking, walking, hunting, team sport – whatever appeals. It keeps you ‘farm fit’, boosts your mood and gets you off-farm.
    • Enjoy the small stuff – When you’re working, take a moment to stop and enjoy the view or the nature. Not a bad office, is it?
    • Eat well – Make sure you have enough fuel in the tank to keep your energy levels up.
    • Look after yourself, look after your team – People are the most important part of the dairy sector. . .

Sheep milk more easily digested than cow milk – study:

Sheep milk’s protein is more readily digested and its fats are more readily converted into energy compared to cow milk, a New Zealand study has shown. The milk’s unique composition could make it a good option for the very young and the elderly, sports nutrition, and people who are looking for alternatives to cow’s milk, researchers say.

Anecdotally, evidence from consumers already suggests that sheep milk may be better tolerated than cow milk by some people.

This is believed to be the first human study in the world to investigate how differences in the composition of New Zealand sheep milk affect ease of digestion, digestive comfort, and the body’s ability to make use of milk protein. . . 

Fonterra to streamline Chilean operations:

Fonterra has purchased the minority interest in Prolesur, held by Fundación Isabel Aninat (the Fundación), as the Co-op looks to streamline its operations in Chile.

The Fundación has sold its 13.6% shareholding for $29.3 million NZD, which takes Fonterra’s ownership of Prolesur from 86.2% to 99.9%.

Prolesur is a milk processor in southern Chile which sells most of its production to Soprole. Soprole is a leading consumer branded dairy company in Chile and is 99.9% owned by Fonterra. . . 

Strong start to dairy export season:

Dairy led the rise in goods exports in November 2019 as milk powder exports reached $1.1 billion, Stats NZ said today.

This is the highest value of milk powder exports for a November month since dairy exports peaked in 2013.

The value of dairy exports (milk powder, butter, and cheese) increased $348 million in November 2019. Dairy was the main contributor to total goods exports reaching $5.2 billion, up $371 million from the same month last year. . . 

Big effort to deliver sustainable premium for NZ food:

Much has been made about New Zealand’s status as “100% Pure” and how much, or how little, needs to be done to keep that claim valid.

While that debate rumbles on, the primary sector has been doing much to deliver on Prime Minister Jacinda Adern’s promise to the United Nations in September 2019 that New Zealand will be “the most sustainable food producing country in the world.”

As overseas consumers have become increasingly sophisticated and demand to know where their food has been sourced from, all parts of the New Zealand primary sector have been working to ensure the “paddock to plate” story is more than just a story.  . . 


Rural round-up

December 3, 2019

On the policy change cycle – Paul Burt:

It was the winter of 1978. My brother and I had contracted to fence a native bush development block that had been felled the previous year and burnt that autumn. The boss had mentioned that the manager’s house was temporarily free but, “He knew what boys were like” and directed us to camp in the woolshed instead.

“When you need a wash,” He continued, (we had visions of going to the big house for a hot shower and a sit-down meal) “the soda springs is just 10km down the road”.
At least the woolshed was dry but we shared it with rats every night and hundreds of snotty ewes on the couple of nights they were penned for shearing. . . .

A celebration of farming excellence – Sally Rae:

From small beginnings, Strath Taieri farmers Andrew and Lynnore Templeton have developed a business model to be economically sound, allowing for successful succession.

That was one of the comments of the judges of this year’s Otago Ballance Farm Environment Awards.

Mr and Mrs Templeton, who farm The Rocks Station, a 2952ha sheep and beef property near Middlemarch, with their daughter, Ellie, won the supreme award, along with awards for innovation, agribusiness management and livestock.

The Templetons hosted a field day on their property last Thursday and facilitator Pete Young described it as a celebration of farming excellence. . . 

I thought I knew my pork – Elbow Deep:

I thought I knew a lot about pork: I know it’s a red meat, I know how to get perfect crackling on a pork roast and I know the destruction of three barbecues due to fat induced conflagration mean I should never be trusted with a pork chop again.

I’ve bought pork from a butcher, I’ve raised my own pork and I’ve eaten wild pork. I’ve had so much pork delivered to my house in a single day I seriously thought I’d need to buy a third freezer. I know my pork, or at least I thought I did.

I recently walked into a restaurant in Austin, Texas, and ordered a pork chop. It’s a meal I don’t cook often due to the high risk of catastrophic barbecue loss and it was a dish where I felt confident I knew what I’d be getting: a large pale slab of firm meat, possibly slightly greasy but delicious and filling. . .

Uruguayan farmer on wool learning curve – Yvonne O’Hara:

Ricardo Barcia is passionate about wool and the wool industry, and wants to learn more about fleece preparation before he returns home to Uruguay in March.

Mr Barcia (24) is from Salto, in Uruguay, and arrived in New Zealand in August to work on Andrew and Tracy Paterson’s property, Matakanui Station, near Omakau.

He had also spent time in several Otago woolsheds and was interested to see how woolhandlers and wool classers prepared the fleeces before they went into into fadges, something that did not happen at home.

Mr Barcia said he would like to introduce the practices to woolsheds in Uruguay as he could see significant benefits and added value for farmers there. . .

Export prices riding high on meat and dairy:

Export lamb and beef prices reached new highs in the September 2019 quarter, while forestry products fell sharply, Stats NZ said today.

“Both meat and dairy product export prices were up in the September quarter, following similar rises in the June quarter,” business price manager Bryan Downes said.

“In contrast, forestry product export prices, mainly logs, had the largest quarterly fall in over 10 years.” . .

Beef and Dairy Network wins gold at Podcast Awards:

The spoof magazine show is described as “the number one podcast for those involved or just interested in the production of beef animals and dairy herds.”

Created in 2015 by comedian Benjamin Partridge, the format is presented to listeners as a serious podcast about the meat and dairy industries, produced as a companion to a website and trade magazine of the same name. In fact, the podcast is peppered with comic dialogue, surreal discussions, spoof adverts, and fictional interviews with characters that are played by other comedians.

The show has now also transferred to Radio 4, with the BBC having repeated select episodes across two series. . . 

You can listen to the podcasts at Beef and Dairy Network


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