Rural round-up

August 20, 2015

Dairy diversification opportunities in SE Asia:

Growing consumer demand in South East Asia offers plenty of opportunity for the New Zealand dairy industry to increase its exports of consumer-ready products into the region, a new report shows.

Economic Development Minister Steven Joyce and Primary Industries Minister Nathan Guy today released Opportunities for New Zealand Dairy Products in South East Asia,which assesses possible “build”, “buy” and “niche” strategies across seven dairy consumer product categories in six South East Asian countries.

New Zealand is this year commemorating 40 years of ties with the Association of South East Asian Nations (ASEAN), and ASEAN is New Zealand’s fourth largest trading partner, Mr Joyce says. . . 

First Milk through New High-Efficiency Dryer at Pahiatua:

The new high-efficiency milk powder plant at Fonterra’s Pahiatua site has kicked into gear, processing its first milk from the Co-op’s lower North Island farmers.

Whole milk powder from the new plant will soon head to customers in more than 20 markets worldwide including South America, the Middle East and Southeast Asia.

Fonterra Managing Director Global Operations Robert Spurway says the new dryer at Pahiatua is part of the Co-operative’s strategy to drive greater efficiency and value in its product mix. . . 

Profound ignorance or is that too kind – Gravedodger:

The chatterati fixation on the current lower prices for NZ Dairy exports reveals a need to find a process to turn the daily garbage produced by almost all those pontificating  into fertilizer, at least that would create something useful

Fonterra is a highly visible, high profile corporate in NZ, they suffer slings and arrows because of that fact and with so many included in the wide spread total scene as suppliers, process workers, tanker drivers, then add in the massive numbers involved in Dairy support farming, maintenance, construction and upgrading of farms, factories and freight down stream nearly everybody has some connection to someone involved.
That makes for many armchair experts, however their knowledge is based on more accurate information than much of the sheer guesswork and making stuff up that emanates from the aforementioned Chatterati

That however is the local scene and has so very little to do with what has been creating headlines for the media and attack lines for politicians both relying on the significant lack of understanding of that which goes to make the present trading price what it is. World dairy trade perhaps one of the most volatile and protected commodities that has storage and shelf life challenges. . . 

Russia repeals Fonterra import ban

Russia has lifted two-year-old import bans on products from some of Fonterra’s dairy factories.

In the midst of the 2013 botulism scare, which testing later revealed to be a false alarm, Russia temporarily revoked some of Fonterra’s export licences.

This week, the Russian veterinary service Rosselkhoznadzor reinstated the licences for 29 of Fonterra’s plants. . . .

Speech to the Seafood New Zealand 2015 conference – Nathan Guy:

Thank you for the invitation to open the 2015 New Zealand Seafood Industry Conference.

Your industry is vital to the economy, especially regional economies, directly providing 8000 jobs and earning more than $1.5 billion in export revenue each year.

This year’s conference has a great theme. “Sustainable Seafood – Adding Value” is a perfect summary of where the wider primary sector – not just seafood – needs to head, and matches with our priorities as a Government.

Sustainability and adding value are two of the keys to unlocking new growth in the primary sector.

Our ability to increase the amount of seafood we harvest is limited, so we need to find new and innovative ways to increase our earnings. . . 

Caution evident in rural sector:

Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 79 fewer farm sales (-15.4%) for the three months ended July 2015 than for the three months ended July 2014. Overall, there were 433 farm sales in the three months ended July 2015, compared to 479 farm sales for the three months ended June 2015 (-9.6%), and 512 farm sales for the three months ended July 2014. 1,719 farms were sold in the year to July 2015, 10.6% fewer than were sold in the year to July 2014.

The median price per hectare for all farms sold in the three months to July 2015 was $27,796 compared to $26,680 recorded for three months ended July 2014 (+4.2%). The median price per hectare fell 4.6% compared to June.

The REINZ All Farm Price Index fell 2.9% in the three months to July compared to the three months to June. Compared to July 2014 the REINZ All Farm Price Index rose by 3.9%. The REINZ All Farm Price Index adjusts for differences in farm size, location and farming type, unlike the median price per hectare, which does not adjust for these factors. . . 

 Alice Mabin: Riding the long paddock – Pat Deavoll:

It’s quite the journey … from high country shepherd to winner of a national business award.

But it’s a journey Alice Mabin completed this year when she won the 2015 Asia Pacific Entrepreneur of the Year Award for the self-publishing of her book, The Drover.

Mabin’s book tells the historic story of the Great Brinkworth Cattle Drive of 2013, when 18,000 head of cattle were moved 2500km down the “long paddock;” the stock routes of inland Queensland and New South Wales. . . .

New Zealand potatoes bound for Vietnam:

Fresh potatoes from New Zealand have been approved for export to Vietnam, providing a new export opportunity for growers.

Champak Mehta, chief executive of Potatoes New Zealand Inc, says the development, which follows four years’ of negotiations, would absorb excess potatoes in good growing seasons and provide better export prices for growers in less abundant years.

“We currently export about $100m of potatoes each year,“ says Mehta.  “Most of that is frozen, with about $15m worth – about 30,000 tonnes – exported as fresh produce.” . . .

Helping science students find their way:

A new mentoring programme that pairs plant science students with experienced researchers has been launched by the New Zealand Plant Protection Society (NZPPS).

The programme aims to teach students about the use of science in protecting New Zealand’s plant resources and give them a better understanding of the career options available in the sector.

“Ensuring the New Zealand environment is safe from the threat of invasive pests and diseases is vital, in protecting both our horticultural exports and for conservation of our native environment,” says Lisa Jamieson, NZPPs president. . . .

New Zealand National Party's photo.


Do we have consensus on tax?

July 20, 2015

Labour finally answered the calls to show us some policy last week with an announcement on proposed changes to provisional tax:

The bad news for Labour was that it wasn’t its own fresh policy it was reheated National Party policy:

Acting Minister of Finance Steven Joyce has congratulated Labour Party Leader Andrew Little on finally announcing his first “new” policy after eight months in the job, although unfortunately for Labour it’s a cut and paste of a previous Government announcement.

“Labour announced today it was launching a discussion document on changes to provisional tax for businesses. However it seems to have overlooked that the Government launched its own discussion document containing almost identical proposals back in March,” says Mr Joyce. “These in turn were based on National Party policy at the last election.”

The Government has already consulted on proposed changes to provisional tax including a business PAYE, changes to use-of-money interest and penalties, increased use of tax pooling and the use of tax accounts. A Green Paper was launched on 31 March this year and submissions closed on 29 May.

“Feedback on the Green Paper’s suggestions has generally been supportive, and provisional tax was the part most commented on. As we’ve said previously, the changes will require new technology to be implemented, which will be developed as part of the IRD’s Business Transformation project,” says Mr Joyce.

“Quite why Labour has started its own consultation is beyond me.

“Submissions are now closed but the Government would be happy to accept a late submission from the Labour Party in support of the proposal,” Mr Joyce says. “We also appreciate its implied endorsement of the Business Transformation process that will make these policy changes possible.”

A link to  the March announcement can be found HERE.

A link to the Government’s Green Paper, Making Tax Simpler, can be found HERE.

A link to the National Party’s 2014 election policy on this issue can be found HERE.

Act supports the ideas in the green paper which the government released in March, last week New Zealand First also mooted a similar strategy and the Green Party is also open to the proposed changes.

The good news for all of us is that this could mean there is consensus on provisional tax which is very unpopular with businesses for good reason.

They have to pay on expected income without the benefit of a crystal ball that can give them an accurate forecast of their futures costs and income.

A reasonably accurate estimate is difficult enough for any business, it is particularly taxing in farming where there are so many variables and a lot of income is lumpy.

Dairy farmers get monthly payments for their milk but last year the pay out was far higher than expected, this year it is much lower.

Cropping, sheep and beef farmers and many horticulturists get most of their income in a very few payments a very few times a year. Estimating what they are likely to produce, how much that will cost and what they’ll be paid for it months in advance with any deegree of accuracy is next to impossible.

The changes proposed by the IRD which now seem to have support across the political spectrum would simplify the tax system.

Simpler taxes are less expensive to comply with and administer. That reduces costs for businesses which is good for them and the people they employ, service and supply.


Rural round-up

July 14, 2015

NZInc, Australia Mall and China’s JD.com – Keith Woodford:

For the last four years I have been promoting the notion that we need an integrated approach to selling New Zealand food online in China. Now the Aussies have gone and beaten us with ‘Australia Mall’ on China’s JD.com.

Chinese buyers increasingly want to want to buy their food online. They want food that is processed in a Western country. They also want a one-stop online shop. And they want same day delivery.

All of the above consumer needs are increasingly being achieved by our competitors. We need to be there too. . .

$7.3m for agricultural research partnership:

The Government will invest $7.3 million over five years in an agricultural research partnership to improve pasture grasses and lift the performance of livestock farming, Science and Innovation Minister Steven Joyce and Primary Industries Minister Nathan Guy announced today.

Pastoral Genomics is an industry-led research partnership between DairyNZ, Beef+Lamb NZ, Grasslands Innovation, NZ Agriseeds, DEEResearch, AgResearch, and Dairy Australia whose objective is to provide pastoral farmers with better forage cultivars that will increase productivity, profitability and environmental sustainability of New Zealand’s pastoral farming systems. . .

Risk-based approach mooted for bovine TB eradication  – Gerald Piddock:

Proposed changes for bovine tuberculosis management in New Zealand could see a risk-based approach adopted in deciding which livestock to test for the disease.

This meant shifting to a system where high TB risk areas would be targeted, a risk profile would be built around infected livestock. That profile would relate to the area, a herd’s history and the amount of stock movements. The higher the level of movements, the more risk there was of infection.

The Biosecurity Act required the plan to eradicate TB be formally reviewed on a regular basis. The proposed changes would come into effect in July 2016. . .

Designers carry the flag for wool:

The inspiring way in which Australia promotes wool used in its fashion and interiors sectors prompted Auckland fashion editor and stylist Anna Caselberg to initiate a fashion wool week this year – ‘Choose Wool 2015’.

The inaugural ‘We’re loving Wool’ week last year involved a number of New Zealand high fashion designers, with a major kick-off event – including sheep shearing – in the trendy Britomart precinct of Auckland. It was organised in conjunction with Elders Primary Wool. . .

Productivity and lifestyle meet at Bellingen – Nick Heydon:

AFTER time spent living in Hong Kong, Duncan and Fiona McDonald and their family planned to live at their North Coast grazing property “Glynravon”.

Mr McDonald purchased the property at Bellingen in 2008.

“Glynravon” was seen as an opportunity to set up a home base close to New England Girls School and The Armidale School, where Duncan and Fiona’s children were set to board.

“We decided on Bellingen so we could be close to the kids, close to the coast, and that it was easy to get to Sydney,” Mr McDonald said. . .

 Meat Slicer Nelson –Safer, More Efficient Meat Slicers on the Rise:

When dealing with fleshy goods, meat companies take utmost care in every part of the process. From raising the animals to their actual processing, butchers ensure complete sanitation in each step. All of them rely on heavy machinery to do much of all the heavy work, including slicing and packaging.

These two procedures have received much development in the recent years. Its involvement ensures clean meat reaches customers. As for the slicers, it’s just not about safety. People demand specific cuts for particular dishes. This means in addition to guaranteeing cleanliness, meat slicers have to be versatile and efficient.

Local Excellence

New Zealand can compete with the best meat and dairy producers in the world. With some of the most well looked after livestock, the Pacific nation exports top-class products guaranteed. Meat-loving countries demand constant supply of premium-grade meat from NZ’s prized farms and they cannot afford to disappoint. . .

 


Rural round-up

May 21, 2015

Extra support for drought affected North Canterbury:

Primary Industries Minister Nathan Guy has met with drought-affected farmers in Cheviot, North Canterbury today and says they’re still feeling the impacts of drought.

“North Canterbury – and the Cheviot area in particular – has missed most of the recent rainfall, and continues to face severe drought conditions,” says Mr Guy.

“Because of this, an additional $20,000 is being allocated to the North Canterbury Rural Support Trust. This will help them with more intensive activities, including individual visits and community events. . .

Livestock moved out of Canterbury drought – Hamish Clark:

Farmers have shipped tens of thousands of sheep and cattle out of north Canterbury and hundreds of tonnes of feed in as the drought there deepens.

The worst-hit area is around Cheviot, which is north of Christchurch, and the locals are desperate for rain.

The ewes are sniffing and searching the parched earth for a single blade of green grass, but there is none.

Cheviot farmer and local Chris Jefferies says farmers in the area are really struggling. . .

Supreme winners open their gates:

Environmental farm award winners for the Horizons Region opened their gates and shared their secrets with other farmers last week.

William Akers, Laura Oughton, Hugh and Judy Akers from Broadlands Station in Ashhurst were announced as the 2015 Ballance Farm Environment Awards supreme winners in March. As part of winning the award, recipients are asked to host other farmers on farm in order to share ideas and inspire others.

Horizons Regional Council environmental manager for land Grant Cooper was on the judging panel for the final round and says Broadlands is a straightforward, efficiently run station. . .

Ministers request report on dairy competition:

Primary Industries Minister Nathan Guy and Commerce and Consumer Affairs Minister Paul Goldsmith announced today they will request a report on the state of competition in New Zealand’s dairy industry from the Commerce Commission.

The report is required under the Dairy Industry Restructuring Act, which allowed for the merger of our largest dairy co-operatives to form Fonterra Co-operative Group Limited.

The DIRA contains provisions to ensure contestability in New Zealand’s farm gate and factory gate markets. These provisions are intended to expire when there is workable competition in the domestic dairy market. . .

$5m new funding for forestry research partnership:

The Government will invest $5 million over seven years in a research partnership to increase the competitiveness of the forestry sector, Science and Innovation Minister Steven Joyce announced today.

“Forestry is New Zealand’s third largest export earner – behind dairy and meat, contributing around $5 billion to our exports. This investment aims to strengthen the ties between research organisations and the industry to produce excellent research driven by industry needs,” says Mr Joyce.

The new partnership is led by Future Forests Research, an industry-operated entity, in collaboration with Scion, the University of Canterbury, and the NZ Dryland Forests Initiative. . .

NZ export log prices hit 3-year low; may start picking up as demand improves – Tina Morrison:

(BusinessDesk) – New Zealand export log prices, which fell to a three-year low this month, may start to pick up as demand improves in China, the country’s largest market.

The average wharf gate price for New Zealand A-grade logs fell to $83 a tonne in May, from $94 a tonne in April, marking the lowest price since May 2012, according to AgriHQ’s monthly survey of exporters, forest owners and sawmillers. The AgriHQ Log Price Indicator, which measures average log prices weighted by grade, dropped to 88.40 from 93.29 in April.

The price for New Zealand A-grade logs delivered to China fell to US$99/JAS from US$111/JAS last month, the lowest level since AgriHQ started collecting the data in 2012. . .

Southern Dairy Hub Case to Be Presented:

Trustees of the Southern Dairy Development Trust are very pleased with the support received for the Southern Dairy Hub, with 516 farmers and businesses pledging $1.306 million in support.

“It’s an absolutely fantastic result and a huge endorsement for the Hub project,” Chair Matthew Richards says. “We are grateful and thankful for the support from our community and are confident we will get a good hearing in front of our industry partners, DairyNZ and AgResearch.”

Mr Richards says the official numbers includes postal pledges that arrived following the April 30 pledge deadline and takes the result to 55% of farmers between Dunedin and Bluff as having pledged their financial support. . .

Rural Business Network Launches Free Mentoring Initiative:

Rural Business Network (RBN) in partnership with Business Mentors New Zealand (BMNZ) has launched a new initiative offering mentoring support to rural businesses throughout New Zealand. The project is called ‘Rural Mentor’ and will provide a tool to enhance on-farm profitability and enable access to skills and knowledge that isn’t commonly known to be available.

The new Rural Mentor initiative sees the BMNZ registration fee waived for a limited number of NZYF and Rural Business Network members

Daile Jones, National Rural Business Network Coordinator says `Farmers in the sheep, beef or dairy sector operating their own business or farm managers that want a fresh perspective, will be matched with a business professional who can offer confidential advice, assistance and support that will help overcome business challenges, set new goals and achieve success. There’s no lack of knowledge out there, just a shortage of knowing what information is available.” . . .

Call OSPRI if you’re moving this Gypsy Day:

Don’t put your livelihood at risk when moving or selling stock over the Gypsy Day period; make sure you call OSPRI to update your NAIT and TBfree details and record all animal movements.

“This will help protect New Zealand’s reputation as a producer of high quality, safe food and maintain access to valuable international markets,” said Dr Stu Hutchings, OSPRI Group Manager.

Up to date NAIT data allows farmers to get back to business sooner in the event of a biosecurity incursion or food safety concern and is already being used to contain existing animal diseases like bovine tuberculosis (TB). . .


Rural round-up

May 14, 2015

Drought conditions remain in South Island:

Primary Industries Minister Nathan Guy says farmers throughout the eastern South Island are still feeling the effects of drought, particularly in North Canterbury.

“It’s likely the medium-scale adverse event classification will remain in place until August or September this year, depending on conditions over autumn,” says Mr Guy.

“Despite recent rainfall, farmers and growers are still feeling the impacts of these prolonged dry conditions.

“In particular, the driest area is around Cheviot in North Canterbury which has been largely missed by most of the recent rainfall. . .

 

Drought takes its toll – feed an issue:

Federated Farmers North Canterbury say farmers affected by the drought are facing a tough year ahead and will be struggling with some tough decisions.

“It is not a great time for farmers in North Canterbury, most of us are facing a year of little to no feed, low stocking rates and substantial financial losses,” says Dan Hodgen, Federated Farmers Meat & Fibre Chair. 

“With the drought leaving us with a significant lack of grass and crop growth, we are either having to sell capital stock at a much lower rate than we usually would or having to buy in supplementary feed. Some farmers are doing both.” . . .

El Niño pattern blow to Canterbury farmers – Susie Nordqvist:

North Canterbury farmers already in the grip of their worst drought in 60 years have been dealt another blow today.

NIWA says we are on the cusp of an El Niño weather pattern, meaning things are about to get even drier in the east and wetter in the west.

Canterbury’s trademark Nor’west winds are exactly what drought-stricken farmers don’t need.

“When you just get the wind likes this it’s stripping out the moisture in it,” says Federated Farmers north Canterbury president Lynda Murchison. . .

Relentless drought and El Nino means more water storage needed:

Today it was confirmed that drought conditions in the South Island will likely drag on until September this year, emphasising the risk of dry weather patterns to New Zealand and highlighting the need for regional water storage and irrigation infrastructure,” says Andrew Curtis, IrrigationNZ CEO. “These conditions are only likely to worsen in the long term and spread to other parts of the country as a predicted El Nino weather pattern sets in.”

Concerns about how these warm weather patterns will impact our economy were set out in a recent International Monetary Fund report

(http://www.imf.org/external/pubs/ft/wp/2015/wp1589.pdf). As part of its findings, the report recommended further investment in irrigation. . .

Bay of Plenty set for good growth:

The Bay of Plenty region and its industries could grow substantially thanks to its resource, population, location and climate advantages, a newly published report reveals.

Economic Development Minister Steven Joyce and Primary Industries Minister Nathan Guy today released the Bay of Plenty Regional Growth Study, which shows that the region has a number of natural advantages and is well placed to attract further investment, raise incomes and increase employment.

“This study provides a detailed summary of the opportunities for the Bay of Plenty’s future,” Mr Joyce says. “It outlines the potential of the primary sector, manufacturing and tourism industries in particular to grow the region. . . .

Kiwifruit industry set for strong growth, thanks Prime Minister for support:

The kiwifruit industry came together to thank the Government for its support with efforts to manage the bacterial disease Psa, when the Prime Minister John Key visited Zespri’s Mt Maunganui office this afternoon.

Zespri chairman Peter McBride says senior representatives of postharvest, growers and industry organisations took the opportunity to show the Prime Minister how far the industry has come since Psa was first discovered in New Zealand in 2010.

“It’s hard to recall now just how uncertain and dark those days were, when we simply did not know how the industry could continue with Psa. . .

 

 


Rural round-up

April 9, 2015

Fagan’s last championships:

New Zealand’s most enduringly successful shearer, David Fagan, begins his final competition today before retirement.

The New Zealand shearing and wool handling championships at Te Kuiti in the King Country will be the last for the 53-year old veteran before he retires from the circuit.

He has had a busy final season, racking up 12 open wins from 25 finals.

Doug Laing from Shearing Sports New Zealand said Fagan had the chance of several more titles before the week’s end. . .

Thriving in the best of both worlds:

Taking the good with the bad, being a sounding board for farmers is what Fonterra Shareholders’ Councillor Sandra Cordell thrives on.

Although there are often gripes and grumbles, there are plenty of positives to the job and Cordell says talking to farmers is invigorating.

“I respect and admire farmers’ passion and enthusiasm for their industry,” she says.

“Farming is about making the best of opportunities on the farm and how a farmer makes use of these.  Since being in this role, I have been blown away by farmers’ awareness of sustainability.” . .

Dog trails light up Taranaki – Sue O’Dowd:

Taranaki farming personality Bryan Hocken is claiming a world first when the Tarata community stages sheep dog trials under lights on Saturday evening.

The Tarata Sheep Dog Trial Club  is hosting a straight hunt under lights after its annual sheep dog trials on Friday and Saturday. About 30 huntaways are expected to compete in the trial, with the winner set to take home $1000.

“We’re just testing the interest,” said Hocken, who’s president of the Tarata club, established more than 100 years ago in 1908. “We don’t know if it’s going to take off. You can enter on the day.” . . .

Tussock Creek sharemilkers win Southland Otago award:

Tussock Creek couple Jono and Kelly Bavin have won the 2015 Southland Otago Sharemilker Equity Farmer of the Year title.

The other major winners at the Southland Otago Dairy Industry Awards, held recently in Gore, were farm managers of the year Nick Templer and Anieka Venekamp, and dairy trainee of the year Jeremy Anderson. . .

Trooper seeded Gallipoli memorial – Sally Rae:

High on a hill overlooking North Otago farmland is a very special pine tree. Reporter Sally Rae explains why.

Greg and Julie McEwan always knew their beacon-like landmark was special but didn’t know exactly what made it so precious.

That was until a chance meeting in Oamaru, between Mrs McEwan, from Corriedale, and Ikawai farmer Ron Mansfield, who recounted the remarkable story of his Uncle Joe.

For the tree is much more than a landmark; it serves as a monument to World War 1 and to a soldier who safely returned home. . .

Minister opens NZ primary sector Shanghai office:

Economic Development Minister Steven Joyce has officially opened the Shanghai office of Primary Collaboration New Zealand (PCNZ) – a coalition of New Zealand food and beverage companies pooling their expertise in China.

Mr Joyce, who is currently visiting Shanghai to foster business ties between New Zealand and China, says the new premises will provide a boost to the export ambitions of a number of New Zealand’s major primary sector brands.

“PCNZ is a trailblazing collaboration between New Zealand companies who are showing how innovative models can overcome size and scale challenges in large markets such as a China. . . .

Macraes mine may receive reprieve:

The Waitaki mayor is welcoming news OceanaGold may keep its Macraes mine in north Otago open for another ten years, and start mining tungsten deposits.

The company was planning to shut the mine down in 2017 because of the slump in international gold prices.

The company has declined to be interviewed but a spokesperson says low oil prices and the falling New Zealand dollar against the US currency, now makes the mine more viable, along with its recent exploration success both at surface and underground. . .

Otago bunnies breeding like rabbits:

The Otago Regional Council says the number of rabbits in the region is increasing.

8400 rabbits were killed during the annual Easter bunny hunt at the weekend, 500 more than the year before.

The council’s director of environmental monitoring, Jeff Donaldson, said the summer produced a bumper crop of bunnies.

“With the recent drought we’ve had in Otago there has certainly been an increase in numbers over most properties. Rabbits prefer the drier conditions. . .


Quote of the day

March 16, 2015

“The nature of by-elections is it’s a very short period of time. We devoted a couple or three weeks, as the party does, to select the candidate Bit simpler for Winston; he just looks in the nearest mirror and selects himself.” Steven Joyce.

 


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