Rural round-up

September 1, 2016

How NZ dairy is trying to rule the world – a Bloomberg view – Emma O’Brien:

International news agency Bloomberg has taken a close look at Fonterra – see what it’s telling the world about our dairy giant and its plans to pay out more to its farmers.

In the shadow of a snow-dusted volcano on New Zealand’s North Island, a sprawling expanse of stainless steel vats, chimneys and giant warehouses stands as a totem of the tiny nation’s dominance in the global dairy trade.

The Whareroa factory was until recently the largest of its kind, churning out enough milk powder, cheese and cream to fill more than three Olympic-sized swimming pools a week.

The plant has helped make owner Fonterra Cooperative Group the world’s top dairy exporter and its farmer-suppliers among the greatest beneficiaries of China’s emerging thirst for milk. . . 

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It will not be enough for New Zealand to produce the best products in the world. Our produce will also have to reamin among the most sustainable. – John Key.

Seafood industry recognises its “stars”:

New Zealand seafood industry members who have made a significant contribution to the industry have been recognised in Wellington tonight in the inaugural Seafood Stars Awards.

The awards are part of the industry’s celebrations to mark the 30th anniversary of the fisheries Quota Management System with awards for excellence and innovation within the industry.

“Every day in fishing communities around the country thousands of people go to work to contribute to our $1.8 billion export industry whether it’s putting to sea in our inshore fisheries, working away from home in our deepwater fisheries, working on salmon and mussel farms, or onshore processing and marketing our products,” says Chief Executive Tim Pankhurst. . . 

Sealord to make significant investment in fishing fleet – Shareholders back $70m new vessel purchase:

The country’s first new deepwater fishery vessel in 20 years
Will bring operational efficiency, sustainability and 80 new local jobs
New Zealand deep sea fishing company Sealord is to make a $70 million investment in its fishing fleet with the purchase of a new state-of-the-art vessel.

Chief Executive Officer Steve Yung says Sealord’s shareholders, Maori-owned Moana New Zealand (Aotearoa Fisheries Limited) and Japanese company Nippon Suisan Kaisha, Ltd (Nissui), have committed to the vessel purchase, which they will part-fund.

“This will be the first new vessel for the country’s deepwater fishery in 20 years, since the introduction of Sealord’s FV Rehua, and the backing of our shareholders is clear demonstration of their long-term commitment to the business and support of our commercial and operational strategies. . . 

Zespri volumes, returns grow:

Zespri’s Annual Meeting today recapped the strong 2015/16 season for the kiwifruit industry – record sales and highest-ever total grower returns – as well as charting the industry’s future as the government approves amendments to the Kiwifruit Regulations.

2015/16 season recap

Zespri Chairman Peter McBride explains total sales revenue for the season grew to hit a record high of $1.9 billion, up 22 percent from the previous season. The total fruit and service payment to growers for New Zealand-grown fruit also grew 22 percent on the previous year to $1.143 billion, with average return per hectare reaching a record $60,758. . . 

Cracker potential for NZ cheese exports – Alexa Cook:

New Zealand needs to realise the export potential of its cheese market, UK industry veteran Juliet Harbutt says.

Mrs Harbutt, who established the British Cheese Awards, said New Zealand should pay as much attention to the value and money that could be made with cheese as it did with its wine industry.

“The extraordinary thing in New Zealand is that we’ve got all this wonderful land and fantastic grazing and all these cows, yet we still seem to be producing the vast majority of it into milk powder and cheddar,” said Mrs Harbutt, who has worked in the UK cheese industry for 30 years. . .

Exports could be affected by horticulture worker shortage – Alexa Cook:

New Zealand’s exports could suffer if demand for horticulture workers isn’t met, a primary industries training organisation says.

The Ministry for Primary Industries (MPI) is aiming for the horticulture sector to reach $5.7 billion in exports by 2020, up $1.6 billion from the end of last year.

An MPI report shows that the horticulture industry needs nearly 8000 skilled workers by 2025 to cope with the predicted rise in production and export earning.  . . 

Farmers should get ready to cast their votes – Chris Lewis:

When you exercise your vote in October, make it count towards candidates who understand the rural community.

Last week I spoke about uncontested local election candidates who get a free pass on any accountability for their part in current issues.

It is so important that farmers get out and vote for candidates who can better represent them. If we don’t it makes the job of Federated Farmers so much harder.

The sad truth is the farming community is stuck with an old system of capital-based rates versus the central government’s existing tax on earnings.

Comparable to other residents, farmers pay significant sums of money to fund community services. It feels like we’re the ATM machines that keep councils’ lights on. . . 

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Money can’t buy happiness but it can buy cows.


Rural round-up

July 30, 2014

Speech to Red Meat Sector conference – Nathan Guy:

Good evening and thank you for the opportunity to address you all tonight.

Following some challenging years, there are strong indications of improved results for many companies in the sector this year.

This resilience is a reflection of the hard work of people throughout the red meat sector.

The meat and wool sectors make up 21 percent of total primary sector export revenue at an estimated export value of $8 billion for the year ending 30 June 2014, which is a record.

The recovery of dry stock numbers after last year’s drought and the productivity improvements need to be acknowledged.

In the face of forecast decreases in stock numbers these capabilities will be important assets for the future. . .

Growth in global milk pool ‘unusual,’ says Spierings, in cutting forecast – Jonathan Underhill:

(BusinessDesk) – The global market for dairy products have been in the unusual situation where most producers have been lifting supply, while demand weakened in China, Southeast Asia and the Middle East, says Fonterra Cooperative Group chief executive Theo Spierings.

The world’s biggest dairy exporter today cut its Farmgate Milk Price forecast for the 2014/2015 year to $6 a kilogram of milk solids from a previous forecast of $7 kgMS, reflecting a slide in global dairy prices, which touched their lowest levels since December 2012 in the latest GlobalDairyTrade auction. It flagged a dividend of 20 cents to 25 cents, up from last year’s 10 cent payment.

“All milk pools around the world showed significant growth – we see milk coming from everywhere,” Spierings said. “On the demand side, China is looking at pretty high inventories” although in-market sales “are still very, very strong in China.” Demand in Southeast Asia and the Middle East had dropped off faster than expected as rising prices were passed onto consumers, he said. . . .

Agri industry passion leads to new appointment – Rabobank:

With a clear passion for the agricultural industry and strong knowledge of the sector, Georgia Twomey is thrilled to be appointed as a commodity analyst in Rabobank’s Food & Agribusiness Research and Advisory team.

Based in Rabobank’s Australia/New Zealand head office in Sydney, Ms Twomey will oversee sugar, cotton and wool – three key sectors for Rabobank’s business in the region.

Ms Twomey says she has always loved working in the agricultural industry, particularly being raised with a farming background, growing up in Goulburn in southern New South Wales.

“I love the agricultural industry and believe the sector really holds the key to Australia’s future economic security,” she says. . .

More emphasis on microbes required in food safety

Current concepts regarding food safety and security may be inadequate for fully addressing what is an increasingly complex issue. That’s according to Lincoln University Senior Lecturer in Food Microbiology, Dr Malik Hussain.

Dr Hussain has been invited as a representative of the University’s Centre for Food Research and Innovation to the Asian Food Safety and Security Association Conference to be held in Vietnam in August. He will also chair a workshop at the conference on risk assessment and management with regard to food safety.

Although the matter of food safety and security may sound simple enough, it is, in fact, a multi-dimensional and complicated issue, made all the more so from increasing pressures stemming from rapid population growth. . .

Steve Yung appointed as new Sealord CEO:

Sealord Group Ltd’s Board of Directors has appointed experienced food industry leader Steve Yung as the company’s next CEO.

Canadian born Yung has most recently been Managing Director of McCain Foods Australia/New Zealand and will take up his new role, based in Auckland on the 25th August 2014. He was a member of the global Senior Leadership Team at McCain.

Sealord Group Chairman Matanuku Mahuika said Yung has a strong set of skills that will help the company’s growth and development, particularly in the Australian market. . . .

Protecting your winter grazing business:

Both graziers and those sending animals for grazing have obligations under the NAIT programme to record the movements of animals from farm to farm. It is the grazier’s responsibility to record a NAIT movement from the grazing block to the home farm for animals that have been wintered on their property.

It’s also important that the person in charge of the animals at the receiving home farm confirm with NAIT when the cattle arrive back from grazing.

This can be done through movement related notification emails that include a direct link to the NAIT system, where animal movements can be confirmed or rejected in just a few clicks. Alternatively, you can contact NAIT on 0800 624 843. . . .

UK supermarket giant partners with New Zealand Ag-Tech company for major R&D collaboration:

British supermarket Sainsbury’s is teaming up with New Zealand’s Techion Group to run an international, cutting edge, technology project. The two-year international research & development project will roll out on-farm technology to effectively manage parasites increasing product quality and profits for farmers.

 J Sainsbury Plc, in conjunction withTechion Group Ltd, has announced Sainsbury’s will support the cost of implementing Techion’s technology, the FECPAK G2 system, both in New Zealand and the UK. The project team includes meat processors Alliance Group (NZ), Dunbia (UK) and Randall Parker Foods (UK).

Greg Mirams, Founder and Managing Director of the animal parasite diagnostics company, Techion, is at the centre of the project. He is confident it will have a significant impact on farmers’ profit and efficiency here and in the UK. . .  .


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