Rural round-up

November 2, 2013

Fonterra on notice – Hugh Stringleman:

Fonterra is on notice from its leading independent director, Sir Ralph Norris, that another food safety scare would have serious global implications.

While it may be inaccurate and unfair, Fonterra is saddled with the melamine adulteration in China in 2008 and the DCD fertiliser concerns earlier this year, followed by the precautionary recall because of a botulism scare in August.

“That means it is important for Fonterra to learn from the whey protein concentrate events. The fact that the botulism scare was a false alarm doesn’t diminish the work of (our) inquiry,” Norris said. . .

Focus goes on communication – Alan Williams:

Fonterra’s communications team is being renewed as public relations contractor Baldwin Boyle Group (BBG) makes way for more in-house employees.

Five of the 33 recommendations made by the independent inquiry for the board concerning the botulism scare in whey protein concentrate are aimed at better communication.

The first recommendation is that Fonterra needs to continue building a directly employed, strong, specialist, and experienced communications team.

That should be done in key global markets, supplemented with contracted, high-calibre local expertise where appropriate. . .

Tough year for tulip grower – Alison Rudd:

Spring brings magnificent swathes of colour to Southland as hundreds of hectares of tulips bloom. But for tulip producers, the flowers are a byproduct and the real value of the plant lies in its bulb. Reporter Allison Rudd talks to one of the van Eeden family about the changing industry.

For many decades, van Eeden Tulips was the only tulip bulb producer in New Zealand of any significance.

For 45 years, it supplied most of the bulbs grown by commercial flower growers, home gardeners and council parks and reserves departments, before branching out into exports in the late 1990s. . . .

More Southland dairy farms expected – Terri Russell:

Low sheep returns and high milk prices have contributed to a rise in dairy farm conversions in Southland.

New dairy farm conversions totalled just seven for the 18-month period to July. But a recent spike in new conversions comes after Fonterra announced its record forecast payout of $8.30 per kilogram.

Environment Southland consents manager Stephen West said there had been more dairy farm conversion applications in the past four months than there had been in almost two years.

The surge in conversion numbers also coincides with the plan change 13 deliberations drawing to a close.

Plan change 13 has required all new dairy farms to obtain a resource consent before becoming operational since April last year, and the decision on whether the rule will become permanent will be made in December. . . .

No dividend, but Alliance’s system sorted – Sally Brooker:

Shareholders who packed out the Alliance Group Ltd roadshow meeting in Oamaru last week were told they are not getting a dividend.

Chairman Murray Taggart, an Oxford farmer who has taken over since Owen Poole retired on September 30, said times had been ”tough for meat processors and exporters”.

The equity ratio and operating cash flow were good, but not sufficient for a dividend. . .

Fonterra Acquires Stake in Bega Cheese Ltd:

Fonterra Co-operative Group Limited has acquired a 6 per cent shareholding in Australian dairy company Bega Cheese Limited.

The 9.3 million shares were purchased at AUD4.95 per share for a total cost of AUD46 million.

Fonterra Chief Executive Theo Spierings said, “Australia is an important market for Fonterra, and we are committed to growing our already strong presence.

“There has recently been a lot of consolidation activity in the Australian dairy industry. It is important that Fonterra participates, and we have confidence in Bega and the strategy it is pursuing,” said Mr Spierings. . .

Foreign investors buy more South Island farmland:

The Overseas Investment Office (OIO) has approved the application by a Singaporean investment management company to buy half the shares of New Zealand Pastures Limited, a locally-owned company that operates seven South Island sheep and beef farms.

The farms :Three Rivers, Grantham Springs, Hitchin Hills, Quailburn, Hills Creek, The Styx and Huntleigh, cover almost 23,500 hectares.

Singapore company Duxton Asset Management is buying the shares on behalf of itself and two other overseas investment funds. . . .

Stalwart’s last stand gets support of mates – Ruth Grundy:

When his mates got wind John Hough was making his ”last stand”, they thought they would go along for the ride.

The Rakaia shearer and Shearing Sports New Zealand official who will only admit to being ”not 70 yet” began shearing at 18 and first competed in open-class shearing 40 years ago. . . .

#gigatownoamaru appreciates its rural hinterland.


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