Rural round-up

Mayor protests against water tax – Pam Jones:

Central Otago’s economy could lose $6 million a year through Labour’s proposed water tax, a strongly-worded letter from Central Otago Mayor Tim Cadogan to Labour leader Jacinda Ardern says.

Mr Cadogan, who wrote to Ms Ardern yesterday, said Labour’s water tax announcement had been greeted with “fear and dismay” in Central Otago and would be “grossly unfair” on the region.

His letter comes at the same time as a group of Maniototo women are separately preparing a campaign against the water tax. . .

More on water – The Veteran:

Labour, Winston First and the Greens are all committed, to a greater or lessor degree, to imposing a tax on something they don’t own and, in doing so, are opening the doors to Maoridom to demand a slice of the action that they don’t own either.

This policy made on the hoof and with no-one prepared to put a number on it has the potential to severely undermine our agricultural and horticulture industry (and that’s just for starters).

OK, this isn’t an issue for Labour as in their lexicon farmers are all ‘rich pricks’ and they know they are about as welcome in rural New Zealand as a pork chop in a Synagogue. . .

Rebuild slows flock decline – Alan Williams:

The decline in the national sheep flock has slowed markedly over the last year with rebuilding after drought and indicating some return in confidence.

Total sheep numbers were estimated to be 27.34 million on June 30, a 0.9% fall from the 27.58m a year earlier but that figure was a 5% fall on 2015.

Though ewe numbers were lower than a year earlier this year’s lamb crop should be higher, according to Beef + Lamb NZ, largely because more ewe hoggets were mated and the ongoing productivity gains in the flock. . .

TPP agreement will give New Zealand a competitive edge:

A long awaited Trans Pacific Partnership(TPP) agreement can’t come quick enough with approval for a mandate to negotiate good news says Federated Farmers.

The Government announced it will be pushing for minimal changes from the original TPP agreement with a TPP 11 proposal due to go before trade officials from 11 countries at November’s APEC Conference in Vietnam. . .

Bay of Plenty woman wins Young Grower of the Year:

The future of our $5.6 billion horticultural industry is in excellent hands as shown by the talent of this year’s Young Grower of the Year: Erin Atkinson of Te Puke.

Erin Atkinson, 30, technical advisor for Apata Group in Te Puke, was named Young Grower at an awards event in Christchurch tonight after a long day pitting her skills, knowledge and experience against four other finalists. She is the first woman to win the title, which is in its 11th year. . .

Talley’s skipjack tuna gets tick of sustainability:

New Zealand¹s main skipjack tuna purse seine fishery has been certified by the Marine Stewardship Council (MSC) as being sustainably managed.

The certification covers the Talley’s Group Limited (Talley’s) fleet of two large purse seiners, is valid for five years, and allows skipjack to be sold under MSC’s ‘blue tick’ of sustainability. . .

NZ wool market improves at weekly auction – Tina Morrison

(BusinessDesk) – New Zealand wool prices and sale clearance rates lifted at the latest weekly auction.

Some 83 percent of the 8,251 wool bales offered at yesterday’s South Island auction were sold, and prices lifted for all styles of wool on offer with the coarse crossbred wool indicator up 9 cents to $2.82 a kilogram, AgriHQ said. . . 

Significant changes to provisional tax already in effect for farmers:

With the Inland Revenue Department (IRD) unveiling the new provisional tax rules that took effect at the start of this financial year, farmers should be satisfied with sensible adjustments to the rules according to Tony Marshall, Tax Specialist for Crowe Horwath.

The new regime means that if you pay provisional tax using the standard uplift method, which uses the previous year’s liability with five percent uplift, you will no longer suffer high interest if your tax predictions are incorrect. . . 

Rural round-up

Seeing women’s value on the farm – Sally Rae:

Noticing a gap in the sheep and beef sector, Bronwyn Campbell decided to do something to help address it.

She formed South Otago Women in Sheep and Beef — Partners in Business, which will hold its second session today in Balclutha.

The group’s formation came about after Mrs Campbell did an “Understanding Your Farming Business” course in Gore, run by the Agri Women’s Development Trust (AWDT). . .

Fonterra introduces global quality seal:

Fonterra is introducing a new global food quality seal – Trusted Goodness™ – for its products as part of its business strategy to add value to milk and maximise returns for its farmers.

Fonterra’s Chief Operating Officer, Global Consumer and Foodservice Jacqueline Chow, said that market research commissioned by Fonterra shows global consumers are prepared to pay a premium for high quality, safe and healthy food from trusted sources.

“Consumers want to know more about where their food comes from and that it is produced by businesses using sustainable and ethical practices. Consumers are actively seeking out products they can trust to feed their families and that come with these benefits.  . . 

 Agrarian revolution on its way – Richard Rennie:

As whole milk powder prices start to surge again farmers are being cautioned not to let that distract them from some of the biggest farm system disruptions the world has seen.

The world was on the verge of a new agrarian revolution, KPMG’s agribusiness head Ian Proudfoot told delegates at this year’s rural update agribusiness seminar.

It would result in practices done for generations being tipped on their head in a few years. “Don’t let the recent rise cloud your judgement. . . 

 Belief 20% Coast dairy farms up against wall:

About 20% of West Coast dairy farms could be in serious financial trouble, Federated Farmers heard at its quarterly meeting in Greymouth last week.

Provincial president Peter Langford said farmer sentiment was low given Westland Milk Products’ poor performance and many dairy farmers having had to borrow just to continue.

The upheaval and “negative thoughts” around Westland Milk management, governance and performance meant it was fair to say dairy farming, “with low and no payout” over the past two months, was difficult, he said.

Farmlands change – Sally Rae:

Hildathorpe farmer Chris Dennison has been elected to the Farmlands board, ousting long-serving director and fellow North Otago farmer John Foley.

Last month, Mr Dennison was critical of the co-operative’s performance after it posted a $9million loss, saying it appeared to have “lost its way”. The result of the South Island director election was announced at the company’s annual meeting in Christchurch on Tuesday.

Mr Dennison and his wife Kay run a 400ha arable farm with an adjacent dairy farm milking 800 cows on the lower Waitaki Plains. . . 

Talley’s add kale to healthy menu choice – Mike Watson:

Coal is not the only ‘crop’ Motueka-based food producer Talley’s has been investing in.

The company, which recently added coal mining to its list of investments, is also feeling its way with commercially grown kale for a mainly domestic consumer market.

For nearly 30 years Talley’s was synonymous with commercial pea growing in Marlborough.

The seafood, dairy, meat and vegetable processing company once harvested up to 1000ha of peas in the region. . . 

More grass and fewer cows equals more milk for Cloverdale Dairies – Heather Chalmers:

A pasture based system is paying off for Cloverdale Dairies owners Andrew and Nicky Watt, writes Heather Chalmers.

Despite managing one of the biggest dairy herds in Canterbury, Andrew and Nicky Watt definitely have their finger on the pulse, with their low-cost, pasture-based system consistently generating a business performance that is the envy of many.

Covering a five kilometre square block in the middle of the Canterbury Plains near Ashburton, Cloverdale Dairies runs almost 3000 cows and employs up to 22 staff in the peak of the season. . . .

 

Rural round-up

Cartels versus babies – Offsetting Behaviour:

Canada’s dairy cartel keeps milk product prices up. Baby formula is one pretty obvious example.
Here in New Zealand, a 900 gram can of baby formula (starter, for newborns) ranges in price from $15 for one that’s on special, to $20-$21 for the most popular brands, to $34 for the ones that give babies superpowers. We supplemented with the brand that’s now $21 per can. The NZ price range then, per kilo and in Canadian dollars at $1 NZ = $0.79 Cdn, is $13-$30; the one we typically bought was $18 Cdn. Unfortunately, the link might redirect to Countdown’s main site. A screenshot is below. . .

Omarama family wins clip of the year – Sally Rae:

The Sutherland family, from Benmore Station, has been awarded the Otago Merino Association’s clip-of-the-year title.   

Bill and Kate Sutherland, and Andrew and Deidre Sutherland,      from Omarama, received the award during The New Zealand Merino Company’s conference in Christchurch . . .   

Change a vital part of fine-wool revolution – Sally Rae:

Changes are inevitable. Not only is that now the motto of  luxury Italian woollen fabric manufacturer Reda, but it was    also a statement that was repeated during the New Zealand    Merino Company’s recent conference in Christchurch.   

The conference brought together about 600 growers and industry partners from around the globe. . .  

Farm holds long family history – Sally Rae:

 The Maclean family, of Omakau, will next year mark 60 years of breeding Southdown sheep.   

Don Maclean started the Bellfield Southdown stud in 1953 and the stud now encompasses 120 ewes.   

 Bellfield was one of 11 properties visited during the New  Zealand Southdown southern tour which was hosted in Otago and  Southland last week.   

 The property is farmed by Donny and Cathy Maclean, their  daughter Kate, and Mr Maclean’s parents, Don and Win . . .

Rates rises close to $5,000 – Gerald Piddock:

Waimate farmers are crying foul after being faced with a dramatic increase in rates for the 2012-2013 year.

The proposed increases will see some farmers pay out nearly $5000 more in rates than they did last year, Federated Farmers South Canterbury Waimate branch chairman Colin Hurst said.

“One farmer’s rates are increasing 37 per cent from just over $13,000 to around $18,000. . .

Barns to keep cows cosy in winter weather – Shawn McAvinue:

What prompts a 94-year-old dairy farm owner to build structures of biblical proportions to keep animals from the driving rain? Shawn McAvinue reports.

Eastern Southland dairy farm owner Dugald McKenzie, 94, looks up at the frame of one of the two wintering barns he is having built on his dairy farm near Edendale and estimates the size of the structure.

“It’s not quite as long as Noah’s Ark, but it’s slightly wider.”. .

Talleys immovable in dispute – Jon Morgan:

After 10 weeks of worker protests, punctuated by fruitless talks and exchanges of lock-out and strike threats, the Affco-meatworkers dispute is no closer to resolution.

The bitterness of the dispute – over pay and conditions for 1000 union workers at eight plants – comes as no surprise to anyone in the meat industry.

The protagonists, the Talley family on one side and the Meatworkers Union on the other, are an irresistible force coming up against an immovable object – or, as one industry source puts it, “a rock hitting a rock”. . .

“Manawhenua” the value placed upon land within the Maori culture – Pasture to Profit:

“Manawhenua” is one of the operating values of the Kapenga M Farming Trust. The exact English translation of “Manawhenua” is difficult to explain. However it relates to the pride and soul of Maori people & their attachment to traditional lands. Manawhenua is about creating links between the people & the land. The concept of ‘mana whenua’ has many layers of meaning. It tells of important relationships that Māori have with whenua (land) and of the value placed upon the land within the culture . . .

Sealord’s mussel farms up for sale:

Sealord Group is selling its last few South Island mussel farms and closing its Tahunanui factory, bringing down the curtain on what was once the biggest mussel operation in the South Island.

All 50 workers – 10 operating the farms and 40 at the Beatty St factory – are being offered new roles within Sealord.

The company announced yesterday that it wanted to focus more on its core fishing business. . .

Synlait Milk to supply colostrum to ASX-listed Immuron:

Synlait Milk, the Canterbury milk processor controlled by China’s Bright Dairy, has signed a deal to supply colostrum to ASX-listed biopharmaceutical company Immuron.

No value was put on the agreement.

Synlait spokesman Michael Wan said the company planned a production run of the “hyperimmune colostrum” in October.

While volumes would be small compared to Synlait’s total production, it was high-end in terms of value. . .

Primary industry working together to grow its people:

The Primary Industry Capability Alliance (PICA) was officially launched in Wellington last night.

The initiative was warmly received by an audience of influential leaders in the primary industry. The Minister for Primary Industries, Hon. David Carter presented at the launch along with several other speakers.

PICA is a collaboration between DairyNZ, Beef + Lamb New Zealand, New Zealand Young Farmers, AgITO, Lincoln and Massey Universities, Federated Farmers and the Ministry for Primary Industries. . .

High expectations met by North Island Farming to Succeed programme:

Daniel Baker says this year’s North Island Farming to Succeed programme has shown him that farm ownership is possible for his generation. Daniel is currently a sole charge farm manager milking 280 cows near Te Awamutu for the Ferris family.

“I’ve been dairy farming since I left school at 16,” says the 28-year-old. “I grew up with an agricultural background in sheep and beef, rearing calves, dairy farming and my father’s agricultural contracting business. I chose to go into dairy because of lifestyle reasons.”

He was motivated to apply for Farming to Succeed after hearing good things about the programme from previous attendees . . .

Foreign investors also make losses

Open Country Cheese blames its full year loss of $29.5m on the high Price of milk and our strong dollar.

The Auckland-based company has faced a kiwi dollar trading near a five-month high against the greenback in volatile global markets while global demand for commodities have helped drive up the price of milk, putting pressure on processing margins.

“It is clear that when this high degree of volatility is coupled with the commitment we have to produce competitive returns to our supply base we will have considerable more variance in our year to year trading results than desirable,” chief executive Steven Smith and chairman Laurie Margrain said in the annual report. . .

. . .  The dairy processor paid an average $7.56 per kilogram of milk solids to its farmer suppliers, a 24 percent increase from a year earlier. That’s short of the $7.60 per kg and 65 cents per share distributable Fonterra paid to its farmer shareholders.

Open Country is controlled by the Talley family and its second biggest shareholder is Singapore’s Olam International.

Will the people who are so upset at the thought of foreign investors taking New Zealand-made dividends be just as concerned about these ones having to take a loss.