Rural round-up

March 28, 2019

Capital Gains Tax: What it means for farmers – Andrea Fox:

Status quo:

Farms are currently not subject to a capital gains tax (CGT) when they sell. However if someone buys a property that is not their home they are taxed on its sale if they keep it less than five years.

Farmers pay GST on all purchases and company tax of 28 per cent. If they use a trust structure, any profit is subject to 33 per cent tax.

What’s proposed:

The Tax Working Group (TWG) has recommended land be subject to a CGT.

The farm’s family home would be exempt but any home site area over 4500sqm would be subject to a CGT. Increases in livestock herd value would be subject to tax.

Environmental taxes on water uptake and discharge, and pollution. . . 

Developing climate change resilient crops ‘a race against time’:

Scientists trying to develop crops more resilient to climate change say they’re increasingly in a race against time.

Breeding plants with more resilient genes – such as, a greater tolerance of saltwater, resilience to drought, or greater yields – has been long touted as a saviour as climate change intensified.

Olivier Panaud, from the University of Perpignan, works mostly with rice crops, but has also been experimenting with crops in tropical areas like the Pacific. . . 

Cottage cheese is the new Greek yoghurt –  Robin Tricoles:

Cottage cheese faced a problem: After World War II, batches of the soft, lumpy dairy concoction developed a propensity to take on a rancid odor and a bitter taste. That changed in 1951, when dairy researchers identified the culprits, three bacterial miscreants that produced this “slimy curd defect.” To prevent the condition, researchers advised cheesemakers to keep these bacteria from entering their manufacturing facilities in the first place. Thus ended the scourge. . . * Hat tip: Inquiring Mind

T&G in apple robot first – Carl Collen:

New Zealand agricultural giant T&G Global has carried out what it has described as a ‘world first’, in using a robotic harvester for a commercial apple harvest.

According to the the fresh produce grower, packer, shipper and marketer, the move marks the culmination of four years of working with US-based technology partner Abundant Robotics, which T&G’s parent company BayWa AG invested in two years ago as part of its strategy to expand digitisation across its agribusiness, and reflects the company’s commitment to innovation-led growth.

T&G global chief operating officer Peter Landon-Lane said the company was delighted to have reached a significant milestone in the evolution of the global apple industry, and for T&G’s home operations in New Zealand to be at the forefront. . . 

First mainstream hemp products in Kiwi supermarkets:

The first mainstream food product containing hemp seed is on supermarket shelves today, launched by one of New Zealand’s leading bread manufacturers, Wairarapa-based Breadcraft under its new brand ‘Rebel Bakehouse’.

Hemp seed was regulated for food use in late 2018, and Rebel Bakehouse’s new hemp seed wraps are the first of a new generation of food that consumers can expect to see made using hemp. Rebel Bakehouse is also introducing cricket protein to Kiwis, with its new cricket flour wrap:

Why transitioning a farm from one generation to the next is trickier than ever – Beth Hoffman:

At the end of December 2005, Margie and Dan First were at the movies when Dan began to feel ill, really ill. His head pounded, then he vomited. A friend recommended they call an ambulance immediately. Dan was rushed to the hospital, where they learned that he had suffered a brain aneurysm.

The events of that day, traumatic as they were, were much more life-changing for the family than anyone in the First clan could have predicted. Like many people, Dan, a 60-year-old Michigan dairy farmer, had never really thought about his own demise. And while his 15-year-old son Josh had dreamed of taking over the family’s farm, the rough plan had been for him to go to college first before deciding if running the dairy was in his cards. Now, suddenly, things were different. . . 


Rural round-up

December 21, 2018

Taratahi agri training operator in interim liquidation – Paul McBeth:

(BusinessDesk) – The Taratahi Agricultural Training Centre has been placed into interim liquidation at the request of its board of trustees as declining student numbers saw its funding drop faster than it could cut costs.

The High Court yesterday appointed David Ruscoe and Russell Moore of Grant Thornton as interim liquidators after the board sought to protect the position of its staff, students, creditors and other stakeholders, the accounting firm said.

Taratahi is a private training establishment, employing 250 staff, and educating 2,850 students this year. It owns and manages eight farms across the country. . . 

IrrigationNZ welcomes new chief executive:

IrrigationNZ has appointed Elizabeth Soal as its new Chief Executive.

“IrrigationNZ has recently adopted a new strategy which focuses on creating an environment for the responsible use of water for food production. As part of the strategy we will be focusing on advocacy, encouraging innovation through sharing ideas and adopting new technology, developing a robust information base, bringing the irrigation sector, researchers and decision makers together to make better decisions for our future and creating world‑leading irrigation standards,” says Nicky Hyslop, IrrigationNZ Board Chair.

“Elizabeth has a strong background in water management, law and policy and she will help contribute to all of these goals but she is particularly well qualified to contribute to national discussions as we seek to achieve solutions to complex issues around water allocation which result in good outcomes for both communities and the environment.” . . 

Feds welcome new IrrigationNZ chief executive:

Federated Farmers welcomes Elizabeth Soal as the new chief executive of Irrigation New Zealand.

Federated Farmers maintains an excellent working relationship with Irrigation New Zealand,” Feds water and environment spokesperson Chris Allen says.

Elizabeth has the credentials and background, including her strategy and policy work for the Waitaki Irrigators Collective, to help ensure INZ continues its excellent work.” . .

Federated Farmers disputes E Coli claims – Eric Frykberg:

There is no proof that E. Coli found in three Canterbury rivers came from cows, according to Federated Farmers.

Research commissioned by Fish and Game found dangerous pathogens in three Canterbury rivers – the Ashley, Selwyn and Rangitata.

Fish and Game insisted the cause was leaching from dairy farms.

But Federated Farmers water spokesperson Chris Allen said the problem could be caused by wildlife, or human activity, as well as from animals. . . 

Research suggests we should take a harder look at the benefits of organic foods – Point of Order:

The Green Party’s food policy may need revisiting, in the light of research published in the past week.

The policy was introduced in May 2017 by Green Party MP Mojo Mathers, who lost her list place in Parliament at the general election.

How we produce, distribute and consume food is of critical importance to growing resilient healthy communities, minimising our ecological footprint and maintaining a
stable economy, she said.  That’s why food policy lies at the heart of Green policy. . . 

Reflections on the year that was – Allan Barber:

From a New Zealand domestic perspective the attempt to eradicate Mycoplasma Bovis has had the biggest impact on farming, most of it focused on the relatively small number of properties forced to cull their entire herd, some of it directed at those properties under surveillance or Notice of Direction, and some of it on the agricultural service industry, including meat processors, cartage contractors, stock agents and saleyards, as well as calf clubs and A&P shows.

MPI is cautiously optimistic the disease can be eradicated which would be the first time any country has achieved such an outcome. However there is still plenty of water to flow under the bridge before anyone can say with confidence that the hitherto impossible has been achieved. 2019 will almost certainly be the year we know for certain, one way or the other. . . 

Guy Trafford finishes 2018 with a GDT review, news of a new Fish & Game river survey, calling out plant-based-milk, and an update on the MPB eradication – Guy Trafford:

An ever so slight increase in the Global Dairy Trade price for whole milk powder with a +0.3% lift. It may not put much of a smile on farmers faces but at least it is a not a drop.

Overall the GDT went up by +1.7% with both butter and cheddar making gains with lifts of +4.9% and +2.2% respectively so not such a poor result. With this now being the second – be they small – lift in a row and we have to go back almost 12 months before we had a repeat of two consecutive sales lifting. Dairy Futures had predicted a higher 3% lift in WMP for this period and with volumes sold down 0.7% on the previous sale, which was also down, the remainder of the season still looks precarious. The next sale is on the 2nd of January 2019. . . 

New captain for 2019 Meat Blacks:

One of the final jobs of 2018 is to take a look at the 2019 Meat Blacks team that will lead the sector next year.

There haven’t been too many adjustments to make, though the sector has had a couple of big retirements from the leadership, lock Sir Graeme Harrison (ANZCO) and number eight James Parsons (B+LNZ Ltd) have departed this year. Linesman Martyn Dunne also retired from MPI and has been replaced by Ray Smith, fresh from Corrections (Ed: appropriately!).

As a result, we have a new captain Murray Taggart (Alliance), promoted from vice-captain, and new vice-captain Tony Egan (Greenlea Premier Meats) to lead the team. . . 

T&G Global profit dented by cheaper tomatoes, small grape harvest  – Paul McBeth:

(BusinessDesk) – T&G Global says its annual profit will more than halve this year after cheaper tomatoes and a weather-affected grape harvest in Peru dented earnings.

Net profit will be $8-10 million this calendar year, down from $22.6 million in 2017, it said in a statement.

Lower tomato prices affected T&G’s covered crops unit while its Peru grapes division dealt with a smaller harvest, it said. . .


Rural round-up

August 12, 2018

Lumsden birthing centre closure prompts community anger – Tess Brunton:

The Lumsden Rural Women’s network is calling for the decision to shut its local birthing centre to be reversed.

The Southern District Health Board today announced the unit would become a maternal and child hub, where babies are only delivered in an emergency.

The DHB today released a plan that also included four other hubs to be established in Wanaka, Te Anau, Tuatapere and Ranfurly; funding support for midwives working in remote locations; and investment in technology to support care. . . 

Lessons from dairy can help NZ red meat sector develop winning formula in China:

New Zealand’s red meat sector should draw on the experiences of the dairy sector to help formulate its strategy for continued growth in the Chinese market, according to RaboResearch General Manager Tim Hunt.

Speaking at the Red Meat Sector conference in Napier last week, Mr Hunt said the Chinese market offered significant growth potential for New Zealand’s red meat sector and there was much the industry could learn from New Zealand dairy. . .

T&G Global lifts first-half operating profit 40% on improvements in pipfruit, international produce – Tina Morrison:

Aug. 9 (BusinessDesk) – T&G Global, New Zealand’s biggest fresh produce grower, distributor, marketer and exporter, posted a 40 percent jump in first-half operating profit due to improved performances from its pipfruit and international produce businesses, its two largest units.

Operating profit, which gauges the underlying performance of the business, rose to $10.4 million in the six months ended June 30, from $7.5 million in the year earlier period, the Auckland-based company said in a statement. . .

Sustainable plastic recycling solution for farmers:

As plastic waste hits the headlines again, rural recycling programme Agrecovery assures farmers and growers that it offers a complete and sustainable local solution for empty agrichemical containers and drums.

This plastic is collected from over 80 sites and large-scale farms across the country and taken to Astron Plastics in Auckland, where it is reborn as underground cable cover and building materials to prevent rising damp. . .

Tighter import rules to stop stink bug:

New treatment and cleaning rules for imported vehicles and machinery will make it harder for brown marmorated stink bug to make landfall in New Zealand, says the Ministry for Primary Industries.

MPI released the new import health standard for vehicles, machinery and equipment today. It will come into force on 1 September – the beginning of the stink bug season. . .

How Australia’s meat industry plans to flood post-Brexit Britain with products banned in EU – Josh Gabbatiss:

Australian meat industry leaders are heavily lobbying their government to put pressure on Britain to accept products currently banned under EU law after Brexit.

Among the meat products suggested for export to the UK are hormone-treated beef and “burnt goat heads”.

Ministers from both countries met last week to discuss the future of their trading relationship, amid concerns that the Australian government could force the UK to lower food standards.

It comes as a petition supporting The Independent’s campaign for a Final Say on Brexit passed 570,000 signatures. . .

Norway up to 60% crop loss :

The worst grain crops in more than 50 years.

The farmers despair over what seems to be the worst season for grain crops since the early 1960s. “Extreme situation”, says an advisor.

– I do not think the regular Joe understands what’s going on. This is an extreme situation that we have never experienced before, says grain advisor in Norwegian Farm Counsellors (Norsk Landbruksrådgiving), Bjørn Inge Rostad to Aftenposten.

The grain farmers are unevenly affected, but Rostad thinks the grain crops can be down to 40 per cent of what is normal.
Chairman of the Board in the Cereal Producers’ Organization, John Lilleborge also believes that the production is a halved on a nationwide basis. . . 

World’s first Manuka honey jar with 11 separate counterfeit measures available September:

The world’s first Manuka honey jar with eleven separate consumer security and anti-counterfeit measures is available to purchase nationwide and online on from September. Boasting New Zealand’s highest standard of Manuka honey, PURITI Manuka comes in a customised cylindrical jar with a unique lid that features a thick anti-tamper seal.

The jar and lid have the same diameter, allowing for a smooth and seamless fit and a distinctly different visual appearance. This design is unique to PURITI Manuka. The jar also features a tear strip for additional consumer security. . .


Rural round-up

April 5, 2018

Feds welcomes NAIT recommendations:

Federated Farmers says its members will jump at the chance to contribute to the drive for improvements to the National Animal Identification and Tracing (NAIT) scheme.

A report detailing a major review of NAIT, with 38 recommendations aimed at streamlining processes and boosting access and compliance, was released today after a long process involving OSPRI, MPI and a host of industry groups including Federated Farmers. . . 

Organic produce sitting pretty in a tasty $90 billion global market – Neil Hodgson:

The perception of organic fruit and vegetables is often of misshapen produce that doesn’t look very appetising, and it is fair comment.

However, the reality is many of those perfect looking fruits and vegetables have a beautiful appearance because producers use synthetic products to treat various bugs and diseases.

If you grow your own produce at home, then chances are they won’t look as perfect as the goods piled high on the supermarket or general food store shelves because chances are you don’t use too many synthetics in your garden at home.

You might use a bug spray and you probably add fertilisers and that is about it. . . 

Unusually, farmers and meat processors doing well at the same time. Beef prices slip. Deer prices get boost from pet food market – Guy Trafford:

SHEEP
Since allowing Shanghai Maling to purchase 50% of Silver Fern Farms (SFF) the meat company has had a significant turn around of fortune. For the twelve months from the $261 mln injection from Shanghai Maling, SFF has paid of $203 mln worth of debt and has managed to achieve a $15.4 mln after tax profit.

In the past it has often been a toss up between farmers and processors as to whom makes the profit. Rarely is it both. . . 

International acclaim for Whitestone:

Whitestone Cheese Co. is riding a wave of international critical acclaim after recent achievements at the world’s biggest cheese competition in Wisconsin USA and a trophy from the New Zealand Champions of Cheese Awards.

At Wisconsin, Ohau Goat’s Blue achieved the highest accolade with 4th place in its category with a near perfect 99.7 out of a 100 – an incredible result and just 0.1 points off the bronze medal. Ohau Goat’s Blue is a new addition to Whitestone’s Premium Black Label range. The goat milk comes from a Washdyke farm just north of Whitestone’s Oamaru cheese factory, and the cheese is made with Whitestone’s Windsor Blue culture. . . 

Samantha is a cut above the rest – Robyn Bristow:

The knives were out last week as Samantha Weller, from New World Rangiora, trimmed her way to the title of World Champion Apprentice Butcher.

The 23-year-old travelled to Belfast, Northern Ireland, with New Zealand’s butchery team, the Pure South Sharp Blacks, to compete in the cutting test.

She competed against 10 others from five countries, who had two hours to turn a beef rump on the bone, a side of lamb, and a loin of pork belly into a display of value-added cuts – much like that seen in a butcher shop or supermarket. . . 

Seeka  sells out of Zespri after opposing changes to constitution tying shares to trays – Jonathan Underhill:

(BusinessDesk) – Seeka, New Zealand’s biggest kiwifruit grower, has sold out of Zespri Group after opposing constitutional changes at the monopoly export body that tie shareholdings to trays of fruit produced.

The changes were approved by more than 75 percent of shareholders last month but among the resolutions was that shareholders who voted all their shares against the overhaul could require Zespri to buy back their shares. . . 

OIO signs off on Icebreaker sale to US clothing giant VF Corp – Sophie Boot:

Icebreaker Holdings has been sold to US-based VF Corporation for at least $100 million after the Overseas Investment Office approved the deal.

In a media release today, North Carolina-based VF Corp said the OIO signed off on the transaction, which completed the transaction. The acquisition “is an ideal complement to VF’s Smartwool brand, which also features merino wool in its clothing and accessories. Together, the Smartwool and Icebreaker brands will position VF as a global leader in the merino wool and natural fibre categories.” The brand is expected to be immediately accretive to VF’s earnings per share, it said. . . 

Kiwi apple remains ‘Envy’ of others in USA:

American’s have once again selected New Zealand-born Envy™ apple as their favourite in a consumer competition run by the US Apple Association.

The interactive tournament-style competition called on American apple fans to vote for their favourite from 16 different apple varieties during the month of March.

Kiwi grower, T&G Global, was well represented in the competition with three of its premium apples namely JAZZ™, Envy™ and Pacific Rose™ being voted on by apple-lovers. . . 

Berry orchard sale offers horticultural operators a sweet growth opportunity:

One of the North Island’s most diverse boutique orchards –encompassing blueberry, raspberry and avocado production operations – has been placed on the market for sale.

Tomo Orchard at Pukenui near Houhora in the Far North, is an intensive 6.2 hectare horticultural venture growing blueberries under some 10,000 square metres of fully-enclosed framed canopies and 8000 square metres of covered netting. . . 


Rural round-up

October 18, 2017

Farmers see land ownership as a privilege – Steve Wyn-Harris:

A society without poets is a sterile and desolate place. Thus, I often read Bruce Bisset’s pieces.

In his column on October 13 he says “Even the No 8 wire ingenuity factor is taking a hit these days because of the alleged urban/rural divide – a divide almost entirely in the minds of farmers, arising only because they are reluctant to face the fact the industrial farming model they’ve bought into is a land (and water) killer.”

For a poet this is a remarkably long sentence possibly reflecting a pay per word incentive and impressively links farming ingenuity, urban/rural divides and the evils of industrial farming into one thought. A performance even crazy and erratic Byron and Pushkin would be proud of. . . 

Farmers decry stock on roads bylaw – Logan Church:

Farmers on Banks Peninsula near Christchurch are concerned about the effects of a proposed bylaw that would regulate the movement of stock on some roads.

Cows and sheep walking in mobs down the district’s roads has been a common sight for years, an easy way for farmers to move them from one land parcel to another.

Tim Coop’s family had been farming on the Banks Peninsula for over a century, and said the tighter rules would make it more complicated to move them on some neighbouring public roads.

“It would mean a lot of extra costs with pilot vehicles on very low speed, low volume roads,” he said. . . 

Gluckman speech identifies challenges and opportunities in clean, green synthetic foods:

New Zealand’s chief scientist says synthetic foods pose a real threat to agricultural exporters, but better regulation of genetic modification could create an equally large opportunity.

Speaking to the NZBio Conference in Wellington, the Prime Minister’s chief science advisor, Sir Peter Gluckman, said the main threat to New Zealand’s economy was from synthetic milks, such as the yeast-based milk created by San Francisco company, Perfect Day.

“I think if there is an existential risk for New Zealand, this is where it lies,” he said. . . 

T&G Global looks to sell food processing T&G Foods unit – Rebecca Howard:

(BusinessDesk) – T&G Global, the fruit marketing firm controlled by Germany’s BayWa, wants to sell its food processing subsidiary T&G Foods as the apple processing business has been hurt by a decline in fruit volumes and a slide in apple juice concentrate prices.

The company reviewed the unit’s operations and determined it’s non-core and consequently should be either sold, rationalised or closed, it said in a statement. Expressions of interest close on Nov. 15. . . 

Women are only good for . . . My Busy Country Life:

This is a subject that from time to time plays on my mind and I know as I write it I will possibly have a hit put on me for not standing by my fellow females. I was born and raised on a farm and from a very early age I was never made feel I couldn’t do anything on the farm I wanted to do, I was never told I should stay inside or that a farm wasn’t really a place for a girl/woman. I went everywhere with my dad from sheep sales to shows and never did I feel I was somewhere I shouldn’t have been. As I got older more and more responsibility was given to me and I was left at times to deal with vets or cattle dealers and what I said to them stood and I was always backed by my Dad. I grew up knowing that I was equal to any man if I so chose to do a certain job from driving a tractor to lambing ewes and all the men I dealt with treated me the same.

I now live with a house of men and I still feel I am treated as an equal, I am not given any special treatment because I am female and am expected to muck in when needed as is everyone else. . . 


Rural round-up

September 4, 2017

Eradication is still doable MPI says – Annette Scott:

Officials expect to decide by the end of the year whether the cattle disease Mycoplasma bovis can be eradicated.

The disease, identified on a Van Leeuwen Dairy Group farm in South Canterbury in July, had now been traced to six farms including four van Leeuwen farms, one North Otago farm believed to be a calf rearing operation and a lifestyle block at Sefton in North Canterbury.

A fourth community meeting in North Otago on Thursday attracted a crowd of 160 people full of questions. . . 

Urgent need to train rural GPs – Eileen Goodwin:

A decade before Waikato University sparked a public debate on a third medical school, a far-sighted Queenstown GP set up a Rural Medical Immersion Programme to try to fill rural health shortages. Health reporter Eileen Goodwin talks to those involved.

The trust founded to further his brother’s legacy fostering rural health may be redundant when a new rural school of medicine is established, John Farry says. Mr Farry, of Dunedin, chairman of the Pat Farry Rural Health Education Trust, hopes the new school will be awarded to the University of Otago under its joint bid with Auckland. He did not want to see it set up as a new medical school, such as that sought by the University of Waikato. . .

Water Conservation Orders should be abolished says Feds:

Federated Farmers is calling for Water Conservation Orders (WCO) to be abolished because they are no longer relevant and a relic of the past.

Under the Resource Management Act (RMA), the Orders are limited and do not acknowledge farming, horticulture, beverages, manufacturing, and access for human and livestock drinking.

The Federation says the National Policy Statement for Freshwater Management has superseded the Orders and made the legislation no longer fitting for future challenges around water conservation. . . 

Farm sector welcomes TPP resuscitation talks:

The National Farmers’ Federation (NFF) of Australia and Federated Farmers of New Zealand say moves to bring into force the bulk of the Trans Pacific Partnership (TPP) is good news for both Australian and New Zealand farm exports.

In Sydney this week, officials from Australia and New Zealand concluded three days of talks with chief negotiators from the other nine TPP countries.

The aim of the talks was to push forward on the development of a ‘regional trade pact’ following the United States’ withdrawal from negotiations earlier this year. . . 

Landcorp back in the black as valuations swing in its favour:

(BusinessDesk) – Landcorp Farming reported a full-year profit as the state-owned farmer recog-nised a jump in the value of livestock and benefited from strong market prices.

Profit was $51.9 million in the year ended June 30, more than four times the $11.5 million it earned a year earlier. Revenue rose 11 percent to $233.5 million while expenses rose 3.3 percent, which included costs related to the end of its sharemilking contract with Shanghai Pengxin, the company said.

The results include a $20 million increase in the value of livestock, “reflecting strong market prices” while the year-earlier result carried an unrealised loss of $24.8 million on land and improvements. The operating profit in the latest year was about $5.7 million, within its guidance range of between $2 million and $7 million, from a year-earlier loss of $9.4 million. . . 

Terms of trade just shy of all-time high:

Record butter prices and high prices for meat helped lift the merchandise terms of trade by 1.5 percent in the June 2017 quarter, Stats NZ said today. This was just shy of the all-time high set 44 years ago in the June 1973 quarter.

Terms of trade is a measure of the purchasing power of New Zealand’s exports abroad and an indicator of the state of the overall economy. The 1.5 percent rise in the June quarter means New Zealand can buy 1.5 percent more imports for the same amount of exports.

“The 1.5 percent rise in terms of trade in the June quarter follows a 3.9 percent increase in the March 2017 quarter,” prices senior manager Jason Attewell said today. “Because the March provisional quarter was revised down from 5.1 percent, the terms of trade didn’t quite reach the record high as expected, but it is very close.” . . 

NZ’s Top Butcher Announced:

The nation’s top butcher and butcher apprentice have been announced this evening at one of the most anticipated events on the meat industry calendar.

Reuben Sharples from Aussie Butcher New Lynn has been named Alto Butcher of the Year and Samantha Weller from New World Rangiora took out the title of Competenz Butcher Apprentice of the Year.

Following three highly competitive regional competitions in Auckland, Wellington and Christchurch, 10 finalists from each category went head to head in the Grand Final held at Shed 10 in Auckland earlier today. . . 

T&G Global secures exclusive commercialisation rights for blueberry varieties in Australia:

T&G Global has become the license holder of a suite of 16 proprietary blueberry varieties in Australia, allowing it to better deliver to growing demand for berry fruit worldwide.

The exclusive agreement represents one of the biggest collections of proprietary commercial and pre-commercial blueberry varieties in the world and is the result of an agreement between T&G and Plant & Food Research in New Zealand. The arrangement includes varieties developed by Plant & Food Research and a collection of premium varieties from Fall Creek Farm and Nursery in Oregon, USA, for which Plant & Food Research holds the Australian licensing rights. . . 

Farmers feed cities. Support your local farmer before the Labour Party sens him/her out of business.


Rural round-up

November 14, 2016

Alliance in good shape – Allan Barber:

Alliance has produced a solid result for the year ended 30 September with a pre-tax profit of $10.1 million compared with $7.9 million for the previous year achieved on 9% lower revenue of $1.366 billion. Of greater significance to farmers is the decision to distribute $9.8 million to shareholders, while the company’s equity position has improved from 58% of assets to 72%. Debt reduced from $129 million to $41 million with no seasonal debt at year end.

Alliance’s transformation programme has achieved improvements of $56 million compared with budgeted savings of $34 million and, according to chairman Murray Taggart, the company is only part of the way through the programme. In spite of the market challenges arising from global uncertainties like Brexit and the US presidential election result, Taggart told me he is feeling more optimistic than at any time since joining the Alliance board. . . 

Meat, wool lack NZ brand: report – Sally Rae:

One of the biggest weaknesses — and thus opportunities — for the meat and wool sector is the lack of a coherent New Zealand “brand” internationally.

That is a key point raised in Westpac’s latest Industry Insights report covering New Zealand’s largest primary industry.

Farmers, meat and wool processors, farm advisers and farm support business were among those canvassed for their views on the biggest risks and challenges for the sector. . . 

Stratford deposes world champ shearer Smith –

Reigning world champion Rowland Smith has been deposed by Southland shearer Nathan Stratford who will now represent New Zealand at the world championships in his home town.

The gruelling 10-month selection process ended in dramatic fashion at the Canterbury A&P show with Stratford causing the second boil-over in a many days after Mary-Anne Baty bolted into the wool-handling team with fellow Gisborne handler Joel Henare.

Stratford will team up with 2014 world champion John Kirkpatrick of Napier in the machine shearing team. . . 

Baty bolts into NZ woolhandling team:

A bolter. It’s an oft-used term in the sporting world, and it sits comfortably with Gisborne’s Mary-Anne Baty.

On Thursday Baty completed a remarkable three weeks by being named alongside Joel Henare in the CP Wool Shearing Sports New Zealand woolhandling team to compete at the 2017 world shearing and woolhandling championships in Invercargill in February.

Baty had to rely on a strong finish in the final qualifier of the six-event, year-long series in Hastings in October to sneak into the six-person selection final on a countback. She then made the most of her opportunity to qualify third from the semi-finals and take second place behind Henare to earn New Zealand selection. But it could have been a very different story. . . 

Binxi not only Blue Sky suitor – Neal Wallace:

A takeover offer by Chinese-backed NZ Binxi (Oamaru) Foods is not the only offer being considered by Southland processor Blue Sky Meats.

The company earlier this year employed Auckland consultants BDO to provide business options for Blue Sky and the $2.20 a share offer from NZ Binxi was the “first out of the blocks”, chairman Scott O’Donnell said.  

“They are not the only party talking to us.”  

The offer valued the company at $25.3 million, a significant premium on its market capitalisation value of $15m.   O’Donnell said the process of formally documenting the takeover offer, board consideration of its merits and finally making a recommendation to shareholders could take four to six weeks. . . 

Apple connoisseur to the core – Gerard Hutching:

Tony Fissette knows his apples. Hailing from Belgium’s growing heartland, he has been involved in the fresh produce business most of his working life.

As far as he is concerned, the jazz and envy apples he markets from his office near Brussels for T&G Global (the former Turners & Growers) are “the best apples I’ve ever eaten”.

European consumers agree. For the industry standard 18kg carton of jazz sold to supermarkets, growers receive an $8 premium over the old standby braeburn and royal gala varieties. . . 

Seafood New Zealand welcomes improvements to the management of our fisheries:

Seafood New Zealand welcomes the opportunity to review and refine fisheries management in New Zealand.

The Government proposes three strategic and two regulatory changes that focus on improving information gathering and management, and on ways to further minimise the industry’s environmental footprint, in the Future of our Fisheries report released by the Ministry for Primary Industries today.

“The report brings a renewed focus, for all those who love kaimoana, to work together to further improve New Zealand’s fisheries,” Seafood New Zealand Chairman George Clement said. . . 

Image may contain: one or more people, text and outdoor

I think that if you were raised on a farm, you were born with dirt in your shoes, and once you get dirt in your shoes, you can’t ever get it out.

 


%d bloggers like this: