Rural round-up

September 21, 2019

New water policies will hobble farmers – Simon Davies:

Farmers are being hamstrung by well-meaning but poorly targeted regulation, writes Simon Davies of Otago Federated Farmers.

Today, while crutching my breeding rams, I was considering the latest policy package from central government.

To be fair there was not a lot of constructive thought undertaken, as this task is a fairly intense activity as those of you who have done it know. For those of you who have not, crutching rams (removing the wool around the tail and between the legs for hygiene purposes) is a bit like wrestling 80 to 100kg sacks of potatoes that fight back.

As I was struggling with a sore back, the term hamstrung came to mind. . .

How did farmers become public enemy number one? – Rachael Kelly:

Last November, Southland dairy farmer Jason Herrick contemplated taking his own life.

A wet spring had turned his farm to mud, his family was “going through some stuff” and anti-farming messages on social media all affected his self-worth.

They’re our number one export producers, an industry that was once seen as the proud back-bone of the nation.

But farmers are almost becoming ashamed of what they do because they’re being attacked from all fronts, Herrick says. . . .

No quick change to farm systems – Pam Tipa::

People don’t appreciate how difficult it is to change farm systems quickly, says Pāmu chief executive Steven Carden.

“They are difficult biological systems and people who are not in farming expect you to be able to switch on the new system overnight,” he told Dairy News.

“It takes a long time to get those changes right, to embed the new technologies in farm systems to make them work effectively. Farmers fundamentally are small business people who can’t risk their entire business with a big shift in how they operate one year to the next. . .

They like you – Luke Chivers:

Public perceptions of farming are more positive than farmers think, a survey shows.

“The strong theme we have heard from farmers in the past is that they do not feel well-liked by their urban counterparts. However, when you poll the general population, this is simply not true,” UMR research executive director Marc Elliot says.

UMR surveyed more than 1000 people last month and found the response at odds with the view held by many in primary industries. 

New Zealanders are almost five times as likely to hold a positive view of sheep and beef farming than a negative one, the research showed. . .

Tractor protest on Saturday – Hugh Stringleman:

Northland farmers have been asked to join a tractor protest over the costs and effects of Government regulations.

Protest organiser and dairy farmer Mark Dawson said the event will be on the southern side of Ruawai township in the Kaipara District between 11am and 1pm on Saturday.

It will be a symbolic protest aimed at what he believes will be the horrendous effects on farming of the proposed freshwater legislation.

Northland MP Matt King, National, has promised support along with Kaipara mayor and beef farmer Jason Smith. . .

ORC candidates quizzed on future of farming :

How do candidates standing for the Otago Regional Council see the future of farming in Otago? That question and others has been posed to all candidates by Southern Rural Life ahead of next month’s local body election. It is shaping up to be an interesting election, with 28 people vying for 12 positions.

All candidates were asked by Southern Rural Life to respond to the following questions and their responses are below (responses were not received from Matt Kraemer, Andrew Noone, Gail May-Sherman and Gordon Dickson)

Question 1
Why are you standing for council?

Question 2
How do you see the future of farming in Otago?

Question 3
Good management practice and improvements to some farming activities will be needed if Otago’s water aspirations are to be achieved. What approach to regulation and rules do you support and where do you think partnerships,  incentives and industry support might fit in (if at all)?

Question 4
Do you think there should be discretion for regional councils to determine local solutions for local issues or should a centralized response always apply instead? . . .

c


Rural round-up

June 22, 2019

Making a bigger boom – Jacqueline Rowarth:

Jacqueline Rowarth contemplates the best way to create the next big noise, whether revolutionary or disruptive, in the agricultural sector.

Before the iPod, there were boomboxes. ‘Cool’ people held large-speaker music machines on their shoulders polluting the environment with their choice of music noise as they rocked past.

A man named Jonathan Ive changed all that. His ear buds and compact devices revolutionised the music experience. Jonathan Ive also invented the iMac, iPhone and iPad.

He had a team of about 15 people working with him, but he is the design genius. And he says that to truly make a difference, you have to think about the problem, identify how to make the experience better, and then be prepared to pour money into it. . . 

Iwi land makes strong income -Richard Rennie:

Maori business investment through iwi ownership is playing an increasing role in the primary sector.

Statistics New Zealand said Maori authority businesses generated a record surplus before tax of $720 million in 2017. 

Iwi assets have grown on average 7% a year between 2012 and 2017 to total $20 billion. 

Maori agricultural assets comprise 13% or $2.6 billion with the bulk held as land. 

Iwi agricultural assets generated income of $337m in 2017 with a surplus before tax of $56m, up from $42m in 2012. . . 

Institute member for 50 years honoured – Toni Williams:

After a lifetime of helping others in her community, and beyond, Mid Canterbury Federation of Women’s Institutes president Mavis Wilkins has been awarded the highest honour in the Women’s Institute (WI), a Gold Honours Badge.

Mrs Wilkins, a member of Lowcliffe WI, was one of just five women around the country to be awarded the national badge this year. The others were from the West Coast, Buller, Manawatu and Papamoa Beach.

The award, nominated by Netherby WI president Denise Clark and former-Mid Canterbury Federation president Jude Vaughan, acknowledged Mrs Wilkins’ 52 years of active service with WI, including work with Rural Support Trust, Civil Defence Emergency Management Canterbury, on the Suffrage 125 Steering Group, 20 years with ACWW Pacific Region Projects group and her WI Good Service Badge, presented in 1990. . . 

Pāmu commits to wool insulation in housing stock:

Pāmu has committed to upgrading the insulation in its South Island farmhouses and all new house stock with insulation produced with recycled wool.

Pāmu has over 500 houses on farms across New Zealand, housing its workers and their families, and Chief Executive Steve Carden says it is important that all homes are well insulated.

“As landlords, we are committed to ensuring our staff accommodation is well insulated against the extreme weather many of our farm housing experiences.” . . 

Congratulations to George Bunnett from Craggy Range – Bayer Wairarapa Young Viticulturist of the Year 2019:

George Bunnett from Craggy Range became the Bayer Wairarapa Young Viticulturist of the Year 2019 on 20 June following the competition held at Te Kairanga in Martinborough.

Congratulations also to Hilary Forster from Matahiwi for being Runner Up.

It was a bright, frosty start but lovely blue skies for the contestants to compete amongst the vines as they rotated around a range of practical and theoretical challenges as well as going head to head in the BioStart Hortisports race at lunchtime. This race included viticultural challenges such as pruning, netting and putting together some irrigation, but also included some fun elements such as bread & cheese tasting as well as creating a bunch of grapes from play dough. . . 

Argentina to authorize a new GMO stacked cotton

AgroIndustry secretariat opened the public hearings before to release new GMO cotton. In this occasion, it treats about the SYN IR 102-7 trait that confers to the crop insect resistance via VIPCot technology and the stacking of this trait with other four that confers cotton resistance to glyphosate and glufosinate herbicides, and insects (lepidopters) via three action-modes.

The public hearings (non-binding) will be open until May 25th. Since the first GMO cotton released in 1998 (MON 1445 or insect resistance), in 2009 Argentine Government authorized the stack MON 531 x MON 1445 or glyphosate and insect resistance, in 2015 the BCS-GHØØ2-5 x ACS-GHØØ1-3 GHB614xLLCotton25 (glufosinate, glyphosate and insect resistance by Bayer), and in 2019 the HPD and glyphosate herbicide-resistant cotton (solicited by BASF).

“This means that biotechnology companies have confidence in the future of the cotton production in the country”, a http://www.eFarmNewsAr.com source told after knew the public hearing. “We are expecting the soon commercial launching of this necessary technologies”, they added. . .


Rural round-up

June 27, 2018

Chinese demand for NZ crossbred wool lifts; auction price rises – Sally Rae:

There are “just a few hints” of upside potential for crossbred wool prices over the next two years, an industry report says.

Auction prices had lifted slightly in recent months and demand from China was just starting to return, the Ministry for Primary Industries latest Situation and Outlook report said.

The wool market had been struggling for the past 18 months or more. The main reasons were a lack of crossbred wool demand from China and increased competition from cheaper synthetic fibres. That had led to a build-up of inventory on farms and throughout the supply chain, which was slowly being worked through. . .

Tom Mulholland to speak at ‘Safetree’ workshops – Yvonne O’Hara:

Media personality and emergency department doctor Tom Mulholland will be speaking at Forestry Industry Safety Council (FISC) workshops in July.

Dr Mulholland will be talking to forestry workers about their physical and mental health and wellbeing as part of the FISC ‘‘Safetree’’ programme, which will include topics such as diabetes, smoking, cancer and dealing with depression. . .

The milk that can change the world:

New study seeks to understand more about milk variant – and the huge changes it potentially brings.

Somewhere in Auckland, 20 men and 20 women are drinking lots of milk and eating lots of cheese – and they could help change not only the digestive comfort of 65 per cent of the world’s population but the make-up of our dairy herd and the direction of the dairy industry.

The reason is A2 milk, the genetic variant supposed to aid digestion for people who find dairy products a difficult assignment to eat or drink. . .

Deer milk about taking ‘industry forward’

Deer milk is the sort of innovation the agriculture sector needs to invest in to make sure it remains competitive, Pamu chief executive Steve Carden says.

Pamu deer milk won the Grassroots Innovation award at the national field days at Mystery Creek earlier this month.

“As an industry, agriculture needs to be changing and evolving what we produce in response to consumer demand.

“Pamu deer milk is one of the ways that Pamu is investing in innovation, with like-minded partners, to take the milk industry forward,” Mr Carden said.

With its high fat content and protein levels, it was ideal for food service, cosmetics and other uses that were being explored, he said. . . 

Live export halt: WA farmers tell of sheep in limbo – Bethany Hiatt:

The fate of tens of thousands of sheep is in limbo after the sudden halt to WA’s live sheep exports, farmers have warned.

The Federal Government suspended the export licence of the State’s biggest shipper, Emanuel Exports, on Friday, just days after the industry’s second-biggest exporter, Livestock Shopping Services, announced it would suspend shipments for the northern summer.

WAFarmers president Tony York said no one knew what would happen to 60,000 sheep being held in a quarantined feed lot in Baldivis, ahead of their scheduled departure on a livestock carrier this week. . .

Trump’s trade war shuts cheesemakers out of foreign markets – Ana Swanson:

It’s a common observation here that you can’t turn off the cows — not for Christmas, and not for a trade war.

So as President Trump’s aggressive trade measures prompt other countries to retaliate with barriers to American goods, dairy farmers and cheesemakers in the rolling, bright green hills of Wisconsin are growing anxious about what will happen to all of the milk and cheese they churn out and typically sell overseas.

“If export markets get shut off, I could see us getting to the point where we’re dumping our milk in the fields,” said Jeff Schwager, the president of Sartori Company, which has produced cheese in a nearby town for generations with milk it purchases from more than 100 dairy farms throughout Wisconsin. “It’ll be a big ripple effect through the state.” . . 


Rural round-up

December 21, 2016

Blister protection product designed by Tekapo 21-year-old takes off – Esther Ashby-Conventry:

Fed up with watching his blistered clients being airlifted half way through their once-in-lifetime trip, a 21-year-old former mountain guide has developed a protective product made from merino wool.

Lucas Smith, of Tekapo, has just signed a national distribution deal with retail giant Torpedo 7, and headed overseas this week to work on the development of a new product.

Smith grew up in Timaru and went to Waihi School in Winchester before boarding at Christ’s College in Christchurch for his high school years. He dropped out of Victoria University half way through studying for a degree in anthropology and political science in 2014 to try software application.

Working as a tramping guide for visitors on the Routebourn and Milford tracks for the next two years was the catalyst for Smith to re-interprete an old technique for blister protection using the hyperfine wool of merino sheep and his life went in a totally different direction. . . .

Agriculture’s rebirth as the next sunrise industry – Steve Carden:

At the start of this month, a story ran that worried that New Zealand was on the road to becoming the “Detroit of agriculture”.

It was a provocative headline to a piece outlining the technologies that are disrupting and going to further challenge farming. The author was right. Some of these innovations are quite remarkable, and signal a shift in how food can be produced, as the world grapples with needing more food for more people with an already stressed environment.

But the irony of comparing Detroit with NZ agriculture is quite delicious. Because out of the fossils of Detroit’s waning car industry is the rebirth of the city based on urban farming. From the derelict unused buildings and empty lots are springing up a host of vertical farming companies and urban farming co-operatives. Detroit is emerging as a leader in urban farming. Detroit is being reborn, and the seeds of that rebirth are literal ones. . . 

Rampant rates a sore point with farmers:

Farmers are questioning the priorities and fiscal discipline of New Zealand’s councils as rates takes continue to outstrip cost indexes.

Analysis by Federated Farmers shows the consumers’ price index (CPI) went up 21% between 2006-2016. Local authorities have argued the Local Authority Cost Index prepared by consultants BERL is a fairer measure of cost pressures on local government, and that went up 33% during the past decade.

Both measures are dwarfed by the average 77 percent hike in rates by our 13 city, 54 district and 11 regional councils. New Zealand’s population went up by about 12% in the same period, with consequent growth in the rating base, but Local Government NZ had no figures on how much. . . 

Primary sector outlook stable says MPI – Nick Clark:

The Ministry for Primary Industries has released its latest Situation & Outlook for the Primary Industries. 

It considers the outlook across the primary sector to be stable for the current year, as the dairy industry begins to rebound from 2016’s low and growth continues for the horticulture and forestry sectors. However, this is offset by a forecast 10.8 percent decline in meat and wool exports.

Total export revenue is forecast to be $36.7 billion for the year to June 2017, down $0.3 billion from the previous year.

Looking ahead, MPI is forecasting export growth of 5.4 percent per year from 2016 to 2021, when it expects primary sector exports to be $47.9 billion.  Much of the growth will be for dairy products, expected to rise by $7.3 billion (or 55.4 percent) to reach $20.7 billion.  Forestry, horticulture and seafood are all expected to continue posting steady growth over the next five years. . . 

World dairy prices trimmed at GlobalDairyTrade auction – Gerard Hutching:

As the futures market predicted earlier this week, world dairy prices have flat lined following the overnight global dairy auction. 

Nevertheless, after a year when prices for whole milk powder (WMP) soared from US$1952 in January to US$3568 last night, farmers will be able to pop the champagne corks this Christmas – or at the least methode champenoise. 

Federated Farmers dairy spokesman Andrew Hoggard said he had a bottle stored away which he would pull out on Christmas morning.  . . 

No end is sight with compliance demands – Lyn Webster:

Having been a dairy farmer for a long number of years, I have to say I regularly feel put upon by the pressing and never ending demands for compliance in my day-to-day activities.

It is like people or agencies are constantly monitoring my activities, poised to criticise or fine me at my every move. The constant pressure of this actually makes me feel physically ill, despite the fact that I have not actually committed any wrongdoing to date.

Here are two annoying incidents that have happened and expose the confusion and rigmarole surrounding all the red tape that wastes the time and energy I should be expending on my business. . . 

Milk bubbling, beef off the boil – Steve Wyn-Harris:

Another year draws to a close.

We have a New Prime Minister, Bill English, but I feel just the same. Maybe when Bill has a change in the Cabinet next week things may feel different.

These are tough times for those in North Canterbury and the Kaikoura Coast. Keep your chins up as best you can.

At last, there’s some light at the end of the tunnel for the unfortunate dairy sector of the last couple of years and now the prospect of at least breaking even for many and a nice little profit for those savvy folks with low-cost production and little debt, which are mostly the mum and dad operations. . . 

Meat exports continue to fall:

Beef and lamb exports fell in November, as the amount of meat sold dropped heavily compared with last year’s record season, Statistics New Zealand said today.

Meat and edible offal exports fell $158 million (31 percent) from November 2015, contributing to a $219 million (5.4 percent) fall in overall exports.

Beef exports fell 41 percent in value and 31 percent in quantity, and lamb exports fell 27 percent in value and 23 percent in quantity.

“Beef exports to the United States, our top beef export destination, fell by around half when compared to November last year” senior manager Jason Attewell said. “When compared to the same month of the previous year, the value of beef exports to the US have fallen in nearly every month since October 2015, only rising once in April 2016.” . . 

New Zealand Set to Dazzle the World with a New Apple Variety:

New Zealand is set to dazzle the world with a new apple variety which has been launched today by Fruitcraft, after being licensed the worldwide rights by Prevar Ltd.

The apple variety PremA129, which will be marketed and known as Dazzle®, is expected to be one of the biggest apple variety launches since Royal Gala decades ago. All New Zealand apple growers will be able to grow Dazzle, and all fruit exporters will be able to sell it.

Dazzle is a large, red, sweet apple which has taken 20 years to develop by Plant & Food Research (PFR) at their research station in Havelock North. . . 

Multiple prosecutions likely after MPI makes series of large-scale paua busts:

Ministry for Primary Industries fishery officers have returned almost 600 undersized paua to the sea near Napier after several large-scale paua busts that occurred over one day.

Team Manager Eastern & Lower North Island, Mike Green, says a routine day last Friday turned into one of a steady stream of discoveries of people taking excess paua as well as undersized paua at Tangoio Beach.

“Officers were involved in at least five incidents over a matter of a few hours where people were caught with very large amounts of paua, most of which didn’t meet the minimum size requirements,” says Mr Green. . . 

Beef + Lamb New Zealand Farmer Directors elected unopposed:

Beef + Lamb New Zealand Farmer Directors George Tatham (Eastern North Island) and Andrew Morrison (Southern South Island) have been elected unopposed to the Board of Beef + Lamb New Zealand.

In line with the Beef + Lamb New Zealand Constitution, Tatham and Morrison were to retire by rotation at next year’s annual meeting.

Electionz.com who conducted the election for Beef + Lamb New Zealand said both directors had signalled their intention to seek re-election and had been returned unopposed. . . 


Remind me why we own this?

August 31, 2016

Landcorp has reported an operating loss of $9.4 million for the year to June.

The result compared with a $4.9 million operating profit the previous year, itself an 84 percent decline on the previous year.

Statutory profit was $11.5 million, reflecting the one-off receipt of $7.4 million from land sales and unrealised “revaluation movements on items such as livestock, farm properties and financial assets, e.g. co-operative shares”, a spokesman for the company said.

“It’s been a tough year for the entire dairy sector, so our result is solid in that context,” said chief executive Steve Carden. “The result would have been lower without the progress already being made to strengthen our farming systems” and its high value Pamu product range. . . 

The loss isn’t unexpected with dairy prices so low and sheep meat having had a pretty ordinary year but remind me again why we own this company?

Landcorp owns or leases  376,942 hectares of land. Its 140 farms and 1.6 million stock units makes it New Zealand’s largest farming operation.

It has a good reputation for staff management and training, animal welfare, genetics, other farming practices and environmental sustainability.

But does that justify state ownership of the company when its total asset value in its half year report to December 2015 was $1,846.4m?

There is a case for the crown owning land to use for treaty settlements.

There’s also a very strong case for reducing that huge investment in Landcorp by gradually selling farms to free-up money to spend it where the need for, and value from, investing it are greater.

That won’t happen.

All the parties on the left are philosophically wedded to the idea of state ownership even though the government, investors and taxpayers are all better off after other partial privatisations.

National is philosophically supportive of the idea but good philosophy and policy are sometimes bad politics and it has other priorities on which to concentrate.

Why do we still own the company? Politics.


Rural round-up: payout edition

August 8, 2015

Fonterra forecasts $3.85:

Fonterra suppliers will get a total possible payout of $4.85/kg of milksolids this season – but there’s a catch.

The farmgate milk price is $3.85/kg MS with a predicted dividend of 40-50 cents then an extra 50 cents for each fully shared kilogram giving a total of $4.85/kg MS.

But the extra 50 cents is a loan, interest-free for up to two years, which farmers will have to apply for. Farmers would have to pay the money back when the Farmgate Milk Price or Advance Rate went above $6/kg MS.

Shareholders’ Council Welcomes Fonterra Shareholder Support Package Announced as Milk Price Plummets:

Fonterra Shareholders’ Council Chairman, Duncan Coull said the Co-operatives unique position has enabled it to provide assistance to its farmers in these tough times. The announced support package in the form of an interest free loan of 50 cents per kgMS for production between June and December will help farmers get through the tough times ahead.

While Fonterra Farmers were expecting a drop in the forecast Milk Price (down $ 1.40 per kg/MS to $ 3.85) it does not make today’s announcement any easier to bear. The dividend forecast of 40 – 50 cents per share lifts the total available for payout to $4.25 – $ 4.35 per kgMs. The retention policy means that the forecast Cash Payout for the season would be in the range of $ 4.15 – $ 4.20 for a fully shared up farmer. . .

Interest-free loans soften payout hit – Fran O’Sullivan:

Fonterra’s top brass cooked up a $430 million parachute so that the dairy co-operative could offer farmers a cushion for yesterday’s brutal cut to the forecast milk payment.

Fonterra chief executive Theo Spierings and chief financial officer Lukas Paravicini began work on the deal five to six days ago along with a couple of the co-operative’s farmer directors.

The upshot was that the Fonterra board was able to yesterday tick off a plan to leverage savings from the company’s transformation project and pump them out to farmers in the form of interest free loans. . .

Plan – do more and work longer – Neal Wallace:

Gerald Holmes concedes he will be a grumpy employer this milking season.

The Taieri dairy farmer has been through downturns before and said the biggest change he will make on his 600-cow farm is to become more self-sufficient.

“It is easy to say no to everything regardless of how reasonable the expense is.”

Gone this season are the days of calling in a plumber, mechanic or electrician to repair equipment.  . .

Times just get tougher for dairy industry – Sally Rae:

”If it continues into next year, … it’s going to be ugly for a lot of people. There will be casualties eventually.”

That was the sobering response of Berwick dairy farmer Mark McLennan on a day dubbed ”Black Friday” for the dairy industry, with Fonterra slashing its 2015-16 forecast price to $3.85 per kg of milk solids, the lowest figure since 2002.

DairyNZ’s latest analysis showed an average farmer needed $5.40 per kg to break even. . .

Fonterra revises down milk price to $3.85 – Tao Lin  and Gerald Piddock:

Fonterra’s decision to slash the price it pays its farmers for milk solids will wipe $2.5 billion off the economy, an analyst says.

Fonterra has cut its milk price forecast to $3.85 per kilogram of milk solids, down from $5.25.

Fonterra has also announced it will provide an estimated $430 million in financial support for farmers to help them cope with the low payout. . .

It is tough down on the farm – Regan Schoultz:

Craig Maxwell, his wife Kathy, and their daughter Penelope have been living on their dairy farm in Paparimu just south of Auckland for 25 years.

It is a big part of who they are as people and a lot of time, blood and sweat has been poured into it.

News of Fonterra’s announcement, informing New Zealanders that the farmgate milk price is set at $3.85, is not welcome.

“It is obviously disappointing but not surprising,” he said. “Nobody is going to be shocked by that figure, but no one is going to be happy.” . .

Milk price drop will have big impact on rural communities:

Rural businesses, not just dairy farmers, will feel a big impact from Fonterra’s announcement today that its 2015-16 Forecast Farmgate Milk Price is reducing from $5.25 to $3.85, says industry body DairyNZ.

DairyNZ chief executive Tim Mackle says the drop means a further reduction of $150,000 for the average dairy farm income for this season. “The harsh reality of this announcement is that Fonterra farmers won’t actually receive $4.25-$4.35 because of the way the payment system works. It’s likely to be more like $3.65,” he says. (see graph below for more details)

“The effect on the level of payments over a season will keep farmers’ cash income constrained for at least the next 18 months and it will take some farmers many years to recover from these low milk prices. . .

Massive fluctations in milk price show NZ’s dairy model ‘flawed’, Landcorp boss Carden says – Paul McBeth:

 (BusinessDesk) – A $4.55 swing in the forecast milk price paid to farmers over two seasons shows there’s something wrong with New Zealand’s dairy model, which is centred around farmer-owned Fonterra Cooperative Group, and it needs to change, says Landcorp Farming chief executive Steve Carden.

Fonterra today slashed $1.40 from its forecast payout to farmers to $3.85 per kilogram of milk solids, below the 2015 season’s $4.40/kgMS and less than half the record $8.40/kgMS paid in 2014. A slump in global milk prices through the course of the year had markets primed for a reduced payout, and state-owned Landcorp, the country’s biggest farmer, was pleased to lock in as much as it could at Fonterra’s $5.25/kgMS guaranteed milk price for the current season.

Landcorp’s Carden said the Wellington-based state-owned enterprise had been anticipating a weak revision for a while, so today’s result wasn’t a surprise. . .

Government should fast-track rural infrastructure to assist dairy regions:

Federated Farmers wants the Government to fast-track its infrastructure projects in dairy regions to assist local economies through the downturn in dairy prices.

Fonterra has announced its forecast Farmgate Milk Price for 2015/16 of $3.85 per kilo of milk solids. In late July last year Fonterra’s forecast price was at $6 per kilo for the 2014/15 season.

Federated Farmers Dairy Spokesperson Andrew Hoggard says small scale rural service industries, such as engineering or contracting, in some instances might be hit harder than the dairy farmers they traditionally rely on for work. . .

‘Black Friday’ will mean huge debt for farmers – Emma Jolliff:

Today has been dubbed ‘Black Friday’ not just for dairy farmers, but the whole New Zealand economy.

Fonterra has slashed its forecast payout to farmers to $3.85 per kilogram of milk solids, which is well below the break-even rate of $5.70.

Economists say it could strip $1.5 billion or more out of the New Zealand economy.

Sally Bosch has been sharemilking for eight years.  She knew a drop in the payout was coming, but not one this big. . .

Farmers cashing up assets – Dene Mackenzie:

Otago dairy farmers are selling what they can to generate cash flow as they face up to an immediate prospect of lower milk payout prices for the next 18 months to two years.

Holiday homes, second cars and unneeded plant and equipment have been the first on the block but accountants contacted yesterday by the Otago Daily Times say more, harder decisions will need to be made by some farmers.

Fonterra will this afternoon announce what many expect to be a sharply downgraded milk payout forecast for the current season. . .

 

 

 


Rural round-up

April 7, 2015

Sticky fingered thief nabs hives:

A Taranaki beekeeper has been stung by the theft of 20 hives containing up to a million bees.

Stephen Black said the theft had cost him thousands of dollars. The hives had at least 200 kilograms of honey, which was ready for harvest.

He said they were probably targeted because of the increasing value of manuka honey. . .

Kiwi invention manages polluting cow urine :

On dairy farms around the country, pastures and soil are struggling to absorb vast amounts of cow urine, creating a huge headache for farmers.

An Auckland company believes it has come up with a solution to stop nitrates from cow urine polluting soils and waterways, and also believes it will help farmers save money.

“Dairy farming, although it is bringing enormous benefits to the country’s economy, it is producing more nitrates that are getting into our waterways, so something has to be done,” says Dr Bert Quin.

That is what has led Dr Quin and his business partner, Geoff Bates, to come up with the invention they’ve nicknamed “Spikey”. . .

Zespri completes European planting – Gerard Hutching:

The Mafia is just one of the hazards that Zespri’s European supply manager Callum Kay has to be aware of, but he says its threat is well contained.

Based just south of Rome, Kay manages Zespri’s kiwifruit growing business in Italy and France. About 1400 hectares are planted in Italy, 400 ha in France.

The majority of the kiwifruit in Italy is grown in the Lazio region near Rome, followed by Veneto, Piedmont and Emilia Romagna in the north. About 5 per cent of plantings are in Calabria and Campania, home to the ‘Ndrangheta and Camorra criminal organisations. . .

Visitors increasingly vital for station – Sally Rae:

Lake Ohau Station managers Simon and Liko Inkersell are very aware they live in a special environment.

The 8322ha high country property, on the shores of Lake Ohau, is situated in a spectacular location, with increasing numbers of visitors in the area.

Part of their business was now also bringing people into the area, with the opening of the Lake Ohau Quarters two years ago, and accommodation was becoming a significant part of the operation, Mr Inkersell told an Otago Merino Association field day at the property recently. . .

Landcorp launches new brand – Gerard Hutching:

State-owned enterprise farmer Landcorp has launched a new brand called Pamu to identify its products.

It was a “great modern design” that had been tested with consumers in New Zealand and overeas.Meaning “to farm” in Maori, Pamu was a “fresh, original name which talks to who we are and what we do” said Landcorp chief executive Steve Carden. The cost of the exercise was $65,000.

Carden said the branding was all about adding value to products.

“Consumers are really interested in finding out about products and where they came from,” he said. . .

NMIT ready to harvest new varieties:

New grape varieties planted on Nelson Marlborough Institute of Technology (NMIT)’s Marlborough campus vineyard are ready for their first vintage this year.

 In 2012, NMIT viticulture and wine staff and students began replacing rows of Pinot Noir on the half-hectare on-campus vineyard with several new and classic varieties donated by Riversun Nursery in Gisborne.  They completed further plantings in 2013 and 2014.

NMIT viticulture tutor Glenn Kirkwood says the new varieties have all grown “incredibly well” on the fertile soil, however it remains to be seen how the fruit pans out.

‘FIRB’ screen locks out investors –  David Leyonhjelm:

NEW foreign investment rules for agricultural land purchases will choke farm sales in red tape, says DAVID LEYONHJELM.


I’VE met plenty of farmers my age who are thinking about and planning for the end of their farming days.

Some have succession plans with family members. But many don’t, and their plan is to sell. They’re not sentimental but they have a strong connection with their land, and they know its worth.

They also need to sell at a fair price. They’ve got debts to repay before funding their retirement. After a lifetime of investing in the farm, their superannuation nest egg doesn’t compare with those who have been ‘pay-as-you-go’ employees all their life.

The potential outcome of one who has decided it’s time to sell goes as follows. . .

 


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