Rural round-up

March 1, 2019

Govt warned over loaning WMP $10m :

The Government was warned that loaning Westland Milk Products $10 million may set a precedent to other companies that they could turn to the Government when they could not get a loan from the bank.

In a briefing to Finance Minister Grant Robertson in September last year, released on the Treasury’s website this afternoon, Treasury officials said the decision to loan Westland the money should be deferred.

Despite this, two months later Regional Economic Development Minister Shane Jones announced that $9.9 million would be allocated to the South Island dairy co-op. . .

Fund farmers for the public benefits that come from their land – Mike Foley:

 Imagine if Australia’s private landholders, who manage half the country’s landmass, were investing significant funds into climate change reduction and environmental improvements.

That’s the scenario a cross-industry coalition of agricultural, forestry and environment groups are working towards, using the lead-up to the federal election to argue for policy change which could reimburse farmers for the public benefits delivered by their land management outcomes. . .

Fonterra’s milk-price news is soured by chairman’s critique of the company’s earning performance  – Point of Order:

At last a ray of sunlight into the country’s cowsheds: giant dairy co-op Fonterra has lifted its forecast farmgate milk price to $6.30-$6.60kg/MS, up from $6-$6.30, on the back of strong global demand.

The good news extends to next season, with ANZ economists predicting – because dairy commodity prices are improving more quickly than expected – the forecast for 2019-20 could go as high as $7.30kg/MS.

And there is something else Fonterra suppliers might get a bit of a glow from: the recognition by Fonterra’s top brass that the co-op has not been performing anywhere near where it should be. They’ll be looking for a sharp improvement, even if the co-op has a long way to go to match the achievements of smaller outfits like A2 Milk and Synlait. . . 

Fonterra Fund units hit record low – Rebecca Howard:

(BusinessDesk) – Units in the Fonterra Shareholders’ Fund hit a record low after the dairy cooperative cut its forecast earnings and said it won’t pay an interim dividend.

Fonterra downgraded its earnings forecast to 15-25 cents per share from a previous forecast of 25-35 cents per share, blaming the increased milk price which saw it hike the farmgate price to its supplier-shareholders.

The downgrade implies annual earnings of between $242-403 million in the year ending July, compared to the earlier projection of $403-564 million. . .

Fonterra to explore opportunities in complementary nutrition:

Fonterra has taken a stake in Motif Ingredients, a US-based food ingredients company that develops and commercialises bio-engineered animal and food ingredients. 

Fonterra joins Ginkgo Bioworks, Breakthrough Energy Ventures, Louis Dreyfus Companies and Viking Global Investors.

Judith Swales, head of Fonterra’s Global Consumer and Foodservice business, says the move is part of the Co-operative’s commitment to its farmer-owners to stay at the forefront of innovation to understand and meet the changing preferences of consumers. While the terms will not be disclosed, Fonterra’s investment represents a minority stake in the business. . . 

Ngāti Hine Forestry Trust Launches “Ngā Māhuri o Ngāti Hine”:

Twenty young men from Kaikohe and Moerewa are set to start their journey in the Forestry Industry as trainees on the new Ngā Māhuri o Ngāti Hine Mānuka Plantation Training Program.

This is the first part of a 2yr program funded by the Billion Tree fund through Te Uru Rākau and supported by the Ministry for Primary Industries Economic Development Unit. Ngāti Hine Forestry Trust is partnering with Johnson Contractors LTD to deliver a “learn while you earn” approach to L2 Forestry Training.

Ngāti Hine Forestry Trust Chair, Pita Tipene says “Ngā Māhuri o Ngāti Hine means the saplings of Ngāti Hine; this is an industry training program which embodies the kaupapa of Ngāti Hine Forestry Trust Mission – He Ringa Ahuwhenua, He Hanga Mahi, to actively grow our assets. These akonga (learners) are our hapū and community assets”. . . 


Rural round-up

January 18, 2019

‘M. Bovis’ effects study welcomed to help with impact on farmers – John Gibb:

Federated Farmers Otago president Simon Davies has welcomed a planned University of Otago study on the human impact of Mycoplasma bovis on farmers and their communities in Otago and Southland.

At the human level, some Otago farmers and their families at infected farms had taken a ”massive strike”, and there could be serious long-term effects, including on business viability, in some parts of the country, he said.

Some people who had received ”notices of direction” from MPI, but were later ultimately cleared of infection, had in some cases also experienced stressful disruption to normal farming activities over several months. . . 

Dairy cattle numbers dip again:

The number of dairy cattle has dipped for the second year, while beef cattle numbers increased strongly in 2018, Stats NZ said today.

Provisional figures from the 2018 agricultural production census showed dairy cattle numbers fell 1 percent, to 6.4 million in June 2018.

“This followed a similar small dip in 2017, though overall dairy cattle numbers have been relatively steady since 2012,” agricultural production statistics manager Stuart Pitts said. . . 

Nursery owner finds use for problem baleage – Elena McPhee:

In a win-win situation for both the council and a local nursery owner, baleage swept along by November’s flood and strewn over a rural road for months is being turned into compost.

Trees of the World nursery owner Rodney Hogg said the baleage had been on Riverside Rd, near Allanton on the outskirts of Dunedin, for about two months.

It was ”extremely dangerous” driving along the road, particularly at night, Mr Hogg said . . 

Brexit: Theresa May survives no-confidence vote but what does that mean for NZ trade?:

Market access under a hard Brexit is the major implication New Zealand must watch for after the failure of Theresa May’s deal and the vote against her, former NZ trade negotiation Charles Finny says.

British Prime Minister Theresa May’s government has won a no-confidence vote against it today, called by UK Labour leader Jeremy Corbyn, with 325 votes to 306.

It may come as some solace to Mrs May after MPs crushed her proposed exit deal with the EU by a 230-vote majority yesterday, the biggest defeat the UK government has faced in the House of Commons since the 1920s. 

Former New Zealand trade deal negotiator Charles Finny however says the no-confidence vote has ultimately been a bit of a distraction: it’s the next steps regarding Brexit that are important. . . 

$36 million investment approved to tackle regional erosion:

Te Uru Rākau (Forestry New Zealand) has announced funding of almost $36 million through the Hill Country Erosion Fund (HCEF) to enable much-needed erosion control in the regions.

The HCEF supports proposals to protect our most vulnerable hill country landscapes, where the main treatment is tree planting.

“We’re pleased by the level of interest from councils, with 12 applications received in this latest round – four of which were from regions that had not previously applied,” says Julie Collins, Deputy Director-General Forestry and Head of Te Uru Rākau.

“It shows the importance they are placing on sustainable land management and treating erosion in their regions.” . . 

A win for Win and the Buller show:

When veteran West Coast shearer Sam Win won his latest competition, at the age of 63, it helped solve a little mystery of the whereabouts of the trophy.

“I think I’ve got it at home,” he said.

Thus Saturday’s win at the Buller A and P Show at Patterson Park in Westport was followed by Sunday polishing the trophy, his name engraved as the last winner – in 1997. . . 

Could Wagyu beef protect against heart disease?:

As barbeque season gets into full swing, New Zealand researchers are investigating whether certain kinds of red meat could actually protect against heart disease.

Researchers have recruited men aged 35-55 willing to eat free meat three times a week for eight weeks in the name of science. Participants are supplied with either grass-fed Wagyu beef, grain-finished beef or soy-based meat alternative (they can’t choose which).

The study is looking at how the complex lipids (fats) in high quality, unprocessed red meat affect heart health, using the vegetarian protein group as a control. It follows earlier evidence that eating Wagyu beef in moderation may help protect against heart disease. The beef, from specially bred and fed cows, is rich in a fat called conjugated linoleic acid, or CLA, and several other so-called ‘good fats’. . . 


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