Rural round-up

September 23, 2016

Farmers must ‘lock in the gains’ as milk price lifts:

DairyNZ is encouraging farmers to lock in the gains achieved in the past two seasons, as a pasture-first farm system will continue to provide payback as the milk price rises.

Chief executive Tim Mackle says the increase to $5.25 per kg MS for the forecast 2016/17 Fonterra Farmgate milk price is terrific news for dairy farmers.

“This brings many farm businesses to around the 2016/17 break-even milk price of $5.05 per kg MS, once retrospective payments and dividends are taken into account. This means fewer farmers will need to borrow extra funds this season,” says Tim.

“Retrospective payments for next year have also been boosted by 20-25 cents in this announcement, to over $1 per kg MS. . . 

New funding for Mayfield Hinds irrigation scheme:

Primary Industries Minister Nathan Guy has welcomed $345,000 in new funding to investigate expansion of the Mayfield Hinds irrigation scheme in mid-Canterbury.

The funding comes from the Ministry for Primary Industries’ Irrigation Acceleration Fund (IAF)and will look at the feasibility of increasing the irrigated area of the current scheme by 4,500 hectare through piped extensions.

“Storing alpine water to use in dry times is crucial for rural communities to thrive, especially as the climate becomes more variable,” says Mr Guy.

“Well planned and managed irrigation schemes are good for rural economies and the environment. . . 

Fonterra says China well-poised for growth, regulatory changes will see 1800 brands disappear – Fiona Rotherham

(BusinessDesk) – Fonterra Cooperative Group chief executive Theo Spierings says legislation will mean drastic changes in the Chinese infant formula market with the removal of between 1800 and 2000 brands in the next 15 to 18 months.

Regulatory changes require each entity to have only three brands and three different recipes of infant formula in a bid to crack down on the grey market and allay consumers’ food safety concerns by reducing fake formula.

Spierings said Fonterra was well-positioned in every segment in China where it is already the global market leader for ingredients such as whole milk powder but a lot of things have changed in the past few years including a shift to sales from mother and baby shops to e-commerce. . . 

NZX milk futures fall from record after GDT, still above Fonterra payout forecast – Tina Morrison

(BusinessDesk) – New Zealand milk price futures have fallen in the wake of the latest GlobalDairyTrade auction, having reached a record in the run-up to this week’s sale, but remain above the payout level forecast by most of the country’s milk processors.

The NZX milk futures contract for the 2016/17 season hit a record $5.65 per kilogram of milk solids ahead of the GDT overnight on Tuesday, and recently traded at $5.50/kgMS. That’s still above the base milk price forecast by the country’s major milk processors, with Fonterra Cooperative Group this week updating its forecast to $5.25/kgMS, while Synlait Milk’s is at $5/kgMS, Westland Milk Products at $4.75-to-$5.15/kgMS, Miraka at $4.55-to-$4.80/kgMS, and Open Country Dairy at $4.60-to-$4.90/kgMS. Tatua sits above the futures with a current forecast of $5.50-to-$6/kgMS while Oceania Dairy didn’t immediately respond to a request for its forecast. . . 

NZ Merino and Silver Fern Farms set out new path for Silere:

The New Zealand Merino Company (NZM) and Silver Fern Farms have reached agreement for NZM to take 100 per cent ownership of Alpine Origin Merino Limited, previously owned jointly.

Alpine Origin Merino Limited was established 5 years ago as a joint venture between NZM and Silver Fern Farms to own the SILERE alpine origin merino brand and to fund the development and marketing of the SILERE merino meat range. Under the agreement NZM becomes the sole shareholder in Alpine Origin Merino Limited.

NZM Chief Executive John Brakenridge stated that “when we set out we needed to prove merino meat could be differentiated as a luxury eating experience and value created in market could be delivered to grower suppliers. . . 

Kiwi moves to Pitt island, with no electricity or phones, for love – Ryan Bridge:

There’s no love without sacrifice, right? How far would you be willing to go to make it work?

Story met Amy Podjursky during our flight to the Chatham Islands, and discovered she was moving hundreds of kilometres to a remote island in the name of love.

There’s no electricity or cellphones on Pitt Island – and there’s only around 50 people who actually live there. It’s quite uninhabited and it’s the eastern-most point of New Zealand. . . 

 

Image may contain: text, outdoor and nature

Not all superheroes wear capes. Some wear boots and know how to use a crock pot – PinkTractor.com


Value-add shows value of co-operative

September 22, 2016

Fonterra has announced a 65% increase in net profit after tax to $834 million which the company says reflects a stronger business despite ongoing challenges in global dairy markets.

Highlights:

Sales volume increased 4% to 23.7 billion Liquid Milk Equivalents (LME)

· Revenue $17.2 billion, down 9%

· Normalised EBIT $1.4 billion, up 39%

· Net profit after tax $834 million, up 65%

· Return on capital 12.4%, up from 8.9%

· Ingredients inventories down 25%

· Gearing ratio reduced to 44.3% from 49.7%

· Debt reduced by $1.6 billion to $5.5 billion

· Earnings per share 51 cents

· Cash Payout $4.30

– Farmgate Milk Price $3.90 per kgMS

– Dividend of 40 cents per share

 . . . Chairman John Wilson said that the 2015/16 season had been incredibly difficult for farmers, their families and rural communities, with global dairy prices at unsustainable levels.

“Our Co-operative has responded. We continued with the significant and necessary changes we began in the business over three years ago to support our strategy and its priorities, and worked hard to return every possible cent of value back to our farmers.

“Our business strategy is serving us well. We are moving more milk into higher-returning consumer and foodservice products while securing sustainable ingredients margins over the GlobalDairyTrade benchmarks, especially through speciality ingredients and service offerings.

“Through increased earnings and continuing financial discipline we have increased the return on capital and strengthened our balance sheet by significantly reducing debt.

“We have done what we can to support our farmers with the Co-operative Support Loan, and early payment of dividends.

“After a period of deliberate and disciplined attention to the business, we have become a stronger Co-operative operationally, financially and in our mindset with a clear sense of direction and a structure which will support real momentum in our strategy going forward,” said Mr Wilson.

Mr Wilson said farmers’ decisions to reduce stocking rates and supplementary feeding to help lower costs resulted in milk collection across New Zealand for the 2015/16 season declining to 1,566 million kgMS, down three per cent on the previous season.

Strong volume and value growth

Chief Executive Theo Spierings said more volumes of milk sold at higher value is at the heart of Fonterra’s strategy.

“For our farmers, the promise is that we will make the most of their milk. We’re keeping that promise.

“We’ve seen the real strength of our ingredients business this year. The money our farmers have invested in stainless steel is giving us more choice, and we have matched production to the highest value customer demand. In a difficult market, we increased ingredients normalised EBIT this year by 24 per cent to $1,204 million.

“In consumer and foodservice, we converted an additional 380 million litres of liquid milk equivalents (LME) into higher returning products, bringing our total volumes in this business up from 4.5 billion LME to 4.9 billion. Increasing our consumer and foodservice volumes, and especially our foodservice growth, meant we increased our normalised EBIT in this business by 42 per cent to $580 million.

“Our results show that we continue to do what we said we would do right across the Co-op. We are single-minded about transforming our business to get the best results. We have cut our operating expenses, increased our free cash flow, reduced our working capital days, driven debt down, and reduced our capex and our gearing.

“All of this effort, combined with higher earnings and margins meant our measure of return on capital has increased from 8.9 per cent to 12.4 per cent.

“Our results show how our strategy is creating value for our shareholders. We are driving more volume into higher value products, and we are achieving results with increasing efficiency. We will continue to build on this strong platform to keep improving and delivering results to our farmers.

Investing in our communities and future

“At the same time, we have kept our promise to share great dairy nutrition with our communities through Fonterra Milk for Schools, and through our Grass Roots Fund and Living Water partnership, we are looking after local communities and the environment.

“We can only do all of this with the support and commitment of our farmers, investors and employees. Throughout the year we have challenged our people to adapt how we work to better manage the shifts in the global market. It has been a real team effort and I want to thank all of our people in New Zealand and around the world,” said Mr Spierings.

Future outlook

With a forecast Farmgate Milk Price of $5.25 per kilogram of milksolids (kgMS), the forecast total payout available to farmers in the 2016/17 season is $5.75 to $5.85 before retentions. This includes a forecast earnings per share range of 50 to 60 cents.

Mr Wilson said over the past three years the Co-operative had worked hard to align its structure to its strategy with a focus on achieving more value for the volumes of milk produced by its farmers.

“The higher forecast earnings per share range reflects the performance improvements the business will continue making.

“It is still early in the season, and we expect continuing volatility as reflected in price improvements in recent GDT auctions.

“Current global milk prices remain at unrealistically low levels, but as the signs in the market improve, we are very strongly positioned to build on a good result in the year to come,” said Mr Wilson.

The last season was a very tough one for dairying with the milk price well below the $5.05 almost all farms need to break even.

However, lower milk price makes it easier for the company to make money on its value-added products.

This shows the value of  the co-operative model. It enables producers to share the dividends which off-set the low milk price, and it is why Fonterra suppliers are determined to retain ownership of the company.

In businesses which aren’t co-operatives, higher dividends can come at the expense of producers.

You can see the annual results here.


Rural round-up

September 2, 2016

Fonterra on the eve of disruption – Fran O’Sullivan:

Fonterra chief executive Theo Spierings’ challenge ‘build windmills not walls’ is galvanising the dairy co-operative, writes Fran O’Sullivan.

Theo Spierings’ leadership has been tested as he re-engineers New Zealand’s biggest business during the tough times of a lengthy global commodity slump.

The story of how NZ dairy farmer incomes have plummeted, the company’s staff numbers have been slashed and hard calls made with its suppliers is well-traversed.

But behind the scenes there has been a fundamental refocusing of the company’s strategic operations which Spierings expects will result in a “strong picture” when he unveils Fonterra’s financial results late next month. . . 

Value-add products need a point of difference – Keith Woodford:

[This article was commissioned by the NZ Herald. It was written on 8 August 2016 and published on 31 August 2016. Since being written, some 24 days ago, we have seen substantial increases in dairy commodity prices, and in the short term (i.e. the forthcoming GDT dairy auction on 6 September GMT, and possibly subsequent auctions) these increases are likely to continue. However, the fundamentals remain unaltered; i.e commodities are highly volatile and will remain so, but there are also many traps for the unwary along the value-add path.]

There is increasing recognition within New Zealand that the dairy industry is in some trouble. Heading into a third year of low prices, questions have to be asked whether the industry is on a false path. And if so, where is the path back to firm ground?

Some will argue that the answers are simple: that we should reduce the dairy footprint on our land, and that we should focus on value-add. In reality, it is not that simple.

For those who live in the cities, it is easy to miss the importance of agribusiness to the overall economy. Much of New Zealand’s economic growth of the last 15 years is a direct consequence of a bountiful economic environment for agriculture in general and dairy in particular. . . 

GMO ruling frustrates biotech industry, farmers:

A lobby group representing New Zealand’s biotech industry fears further changes around the way genetically modified organisms are regulated could potentially force companies and scientists to shift overseas.

The High Court has upheld the Environment Court’s decision that local councils can have control over use and release of genetically modified organisms in their district.

The ruling was based on an appeal by Federated Farmers, which argued the release of GMOs was already regulated by the Environmental Protection Authority and local councils were not qualified to make such decisions.

But lobby group NZBIO chief executive Will Barker said the decision would come as a blow to the industry. . . 

Boat to change face of commercial fishing in NZ launched in Nelson:

A ceremony steeped in tradition was held in Nelson today to celebrate the launch of a boat that will change the face of commercial fishing in New Zealand.

The state-of-the-art vessel has been built for Tauranga-based fisherman Roger Rawlinson, of Ngati Awa descent. It has been named Santy Maria after his mother, who started the business with his father Bill more than 25 years ago.

The Santy Maria is the first vessel in Moana New Zealand’s $25-30 million fleet renewal project. It has been designed by Australian company OceanTech, with the technical expertise and vast fishing experience of Westfleet CEO Craig Boote, and constructed to the highest specifications by Aimex Service Group in Nelson. . . 

Seafood industry continues steady growth path:

The seafood industry continues to show strong growth with export earnings reaching $1.78 billion in the year to June, Seafood New Zealand’s Executive Chairman George Clement said today.

Speaking at the seafood industry’s annual conference, George Clement said the June result was an increase of $201 million on the same time last year, ”further demonstrating that we continue to make a significant contribution to the economy as one of the country’s main export earners,” he said.

“Last year industry accepted the Government’s aspirational goal of doubling export revenues by 2025 and we are on the growth path to achieve this,”
he said. . . 

The thirsty truth about avocados – Mitch McCann:

From Instagram to Pinterest, this is the golden age of avocados.

They’re so popular, the New Zealand industry’s earnings have doubled in the past three years.

Earlier this year avocado prices skyrocketed to around $4.50.

But now you can grab one for less than $2.

That’s because we’re into a bumper season, which may end up being New Zealand’s biggest ever.

But growing avocados takes a lot of water – much more than for things like potatoes, tomatoes and lettuce. . . 

Seeka announces the purchase of the Kiwi Crush™ and Kiwi Crushies™ product ranges from Vital Food Processors Ltd.:

Seeka Kiwifruit Industries (NZX-SEK), New Zealand’s and Australia’s largest kiwifruit grower, today announced the purchase of the Kiwi Crush and Kiwi Crushies product ranges from Auckland based Vital Food Processors Ltd (Vital Foods) for an undisclosed sum.

Kiwi Crush is a range of 100% natural kiwifruit based drinks that have since the early 1990s helped New Zealanders support and balance the digestive system. . . 

Hawkes Bay wine celebration reveals master class talent:

Two big names in the wine industry will be the hosts of the first-ever F.A.W.C! Masterclasses, at the Hawke’s Bay Wine Celebration.

A must-do event for wine lovers, when the cellar doors of 38 of the region’s finest wineries come together – the Hawke’s Bay Wine Celebration is being held in Auckland and Wellington next month. This is a unique opportunity to meet the winemakers while sampling award-winning wines. The event will showcase 50 Chardonnays, 38 Syrah, more than 30 Merlot Cabernet blends, as well as aromatic Riesling and Gewurztraminer through to newcomers Albarino, Tempranillo and luscious dessert wines. . . 


Fonterra payout steady

August 1, 2016

Fonterra has announced the forecast milk payout will remain at $4.25 and the  forecast earnings per share range for this season of 50 to 60 cents.

If the company achieves the higher figure it would make a total payout of $4.75 to $4.85. That’s still below break-even for many but given the continuing gloomy outlook for milk it’s not unexpected.

Chairman John Wilson said the solid forecast earnings per share range reflects performance improvements across the business and would be welcomed by farmers. However, with the Farmgate Milk Price forecast remaining at $4.25 per kgMS, it is another financially challenging season for farmers.

“The Co-operative is aware of how tough the situation on farm remains. We are focused on delivering as much cash as possible to our farmers by bringing payments forward while maintaining a strong balance sheet. This forecast is our best estimate at this early stage of the season. We will continue to update our farmers as we move through the season.”

Mr Wilson said the $4.25 Farmgate Milk Price reflects the continuing global uncertainty and the high NZD/USD exchange rate which continues to impact the competiveness of New Zealand dairy exports.

“The recent weakening of the Euro, combined with the continued strength of the New Zealand dollar, has meant a price advantage for European export dairy products.”

“We expect global milk supply and demand to come into balance over the course of this season. Farmers globally are producing less milk in response to lower prices and we are forecasting a three per cent reduction in our New Zealand milk collection for this season.”

Farmers here have seen the signals and have reacted to them. Farmers overseas, protected by subsidies, have been slower to cut production but they too are beginning to face the market, cut their costs and reduce production.

Chief Executive Theo Spierings said the returns from the ingredients, consumer and foodservice businesses continue to grow in-line with Fonterra’s business strategy to convert more milk into higher returning products.

“We are seeing the benefits of our investments in manufacturing over recent years. We now have more flexibility to make the right products at the least cost, delivering better returns for our farmers’ milk.

“Our good progress in continuing to increase value through our consumer and foodservice businesses, particularly in important markets such as China, Malaysia, Indonesia, Sri Lanka, Oceania and Latin America, is reflected in the lift in the earnings per share forecast.

“Constantly improving the performance of our business is an absolute priority and puts us in a strong position to create more value for our farmers. We are generating significant improvements and cash benefits through our ongoing business transformation that contribute to both our Farmgate Milk Price and our earnings,” said Mr Spierings.

Commodity sales are bread and butter, added value is the jam and cream which gives better returns and we need more of that.


Rural round-up

June 2, 2016

Friendly family rivalry at dog trials – Sally Rae:

Technically, Roger and Steph Tweed are rivals on the huntaway courses at the South Island and New Zealand sheep dog trial championships at Omarama.

But Mr Tweed (55) could not be prouder of his daughter as she competes with her dog, Grit, the offspring of his own champion trial dog, Gemma.

“It’s very special,” the Waitahuna farmer said, referring to the fact both he and his daughter had qualified to compete at the championships.

Miss Tweed (24), now a shepherd on a station at Taihape, started dog-trialling when she was still at school. . . 

Internet bargain takes on the best – Sally Rae:

Ben the heading dog was not a bad buy as far as internet purchases go.

The dog, which spent his early months as a pet, was bought by Nastassja Tairua for $300 after she spied him advertised for sale. He was 15 months old and had never seen a sheep. 

Miss Tairua trained the young dog and he proved to be a willing learner. He went on to win the Tux South Island maiden yarding event with her. . . 

Veteran still enjoys dogs’ life – Sally Rae:

Les Roughan has the distinction of being the oldest competitor at this year’s South Island and New Zealand sheepdog trial championships at Omarama.

Last year, the 92-year-old could have claimed another milestone, as one of the more senior Kiwis to undergo open-heart surgery. But he turned it down in favour of a heart valve.

“I wouldn’t have it. They said ‘why?’. I said … it would be six months away from my dogs. When I was fit to go back to them, they wouldn’t know me and I wouldn’t know them. . . 

Man admits abusing Waikato bobby calves:

A man who was captured on video abusing bobby calves in the Waikato has admitted animal cruelty charges.

Noel Piraku Erickson, 38, pleaded guilty to 10 charges of cruelty or ill treatment of an animal in the Huntly District Court on Thursday.

The seasonal worker was charged by the Ministry for Primary Industries after video emerged in November from animal welfare group SAFE which showed showed bobby calves being roughly handled. . . 

DairyNZ CalvingSmart events will set farmers up for a successful calving season:

DairyNZ is running CalvingSmart events in June and July to help farmers approach the calving season with confidence.

The CalvingSmart event is a full day programme for the whole farm team. Farmers can choose from a series of sessions for different experience levels, enabling them to develop practical skills that will help the calving season go well.

For senior management, there is a session on calf care and farmers’ responsibilities under the new draft animal welfare regulations. . . 

Govt approves updated AgResearch Future Footprint Plan:

Science and Innovation Minister Steven Joyce has announced that shareholding ministers have approved AgResearch’s updated Future Footprint Programme (FFP) business case which will reconfigure the Institute’s operations across four sites with an investment of $133 million in buildings and other infrastructure.

“AgResearch has presented a strong business case for change,” Mr Joyce says. “The FFP will modernise its facilities and co-locate research staff doing complementary work at the Palmerston North and Lincoln campuses.

“These campuses will form part of larger innovation hubs with other partners including tertiary institutions, Crown Research Institutes and industry researchers. The hubs will focus on food science in Palmerston North, and land-based sustainable productivity at Lincoln Hub.” . . .

Fonterra Management Appointments:

Fonterra Co-operative Group Limited today announced new appointments for two of its senior leaders.

Mike Cronin, who is currently Group Director Governance and Legal, is stepping into the newly created role of Managing Director Corporate Affairs, effective immediately.

Announcing the appointment today, Fonterra CEO Theo Spierings said Mike’s connection with the business, and its risk and reputation drivers, makes him the natural choice for this role. . . 


Theo Spierings to resign?

May 30, 2016

The Australian reports that Fonterra CEO  Theo Spierings is about to resign:

Speculation is mounting on both sides of the Tasman that the Dutch chief executive of Fonterra, Theo Spierings, is about to depart the dairy powerhouse, with Air New Zealand chief executive Christopher Luxon earmarked as his most likely replacement.

Mr Spierings has headed New Zealand’s largest company for about five years; and last year he faced criticism as Fonterra’s Australian arm fell into loss making territory, triggering a sale of its Australian yoghurt and dairy dessert business to Parmalat Australia in a quest to return it to profitability.

But the talk of his departure comes after Murray Goulburn chief executive Gary Helou recently left the Australian dairy co-op following a shock profit downgrade.

The dairy industries in both Australia and New Zealand are wresting with the challenges surrounding a lower milk price, and in New Zealand, the difficulties are compounded by the higher New Zealand dollar. Speculation has emerged in the past month on both
sides of the Tasman that Mr Luxon has been earmarked as the next Fonterra boss, with a departure by Mr Spierings, who has 30 years experience in the industry, said to be close.

Sources close to Fonterra have dismissed the suggestions. . . 

International commodity prices aren’t under the control of a CEO.

A company culture and its communications are and both need improvement at Fonterra.

UPDATE:

An email to shareholders from Fonterra chair John Wilson says:

  • I have received a number of emails from farmers this morning concerned at the media speculation that  Fonterra’s CEO Theo Spierings plans to resign.
  • This rumour is completely untrue.
  • Farmers and shareholders would be the first to know if the CEO of their Co-operative had resigned.

 

 


Rural round-up

May 19, 2016

Forging a path for other young Maori women to follow :

Confidence and self-belief have always help Ash-Leigh Campbell achieve her goals in the dairy industry – and she hopes her success will inspire more young Maori women to follow her lead.

“You have to back yourself. If you know you can do it, everyone around you will eventually buy into that too,” she says.

The enthusiastic 25 year-old from Lincoln is one of three finalists in this year’s Ahuwhenua Young Māori Dairy Farmer Awards and has big career ambitions.

“I don’t see myself as an industry leader now but the journey I’m on will hopefully fulfil that in future.

“I definitely want to make an imprint on Maori farming in New Zealand and become an ambassador for others. I especially want to publicise that Maori females can do it.” . . .

Up and coming Agri:

The children are the future, but how well do they know the in’s and out’s of agri? 17-year-old Greer Baldwin, an Agribusiness student at St Paul’s Collegiate in Hamilton, sat down with us to give the inside scoop.

Despite not growing up on a farm, Greer has been around agri her whole life. Her Mum, Karen, works in Agri-tourism and the Baldwin family have been involved at National Fieldays for generations. Karen’s line of work allows overseas visitors to experience a real life Kiwi farm in action and is an interesting line of tourism a lot of young people aren’t aware of.

Thanks to Greer’s experience with her mother’s business, she has grown up fully aware that agri is more than gumboots and milking cows, and now has her sights set on studying agriculture at a tertiary level. Born and bred in the Waikato, Greer is excited to branch away from home and is tossing up between either Massey or Lincoln University where she will study agribusiness and tourism. . . 

New irrigation investments for Canterbury:

Primary Industries Minister Nathan Guy has welcomed three new investments totalling $7.85 million into irrigation projects in Canterbury from the Ministry for Primary Industries’ Irrigation Acceleration Fund (IAF).

“These projects are a real boost to the Canterbury regional economy. A reliable source of water gives farmers certainty and options to invest in such as arable, intensive pastoral, dairy support or horticulture.”

The projects receiving funding are: . . 

Government supports Ashburton water study trial:

The Ministry for Primary Industries (MPI) has allocated $312,000 to a trial project in the Hinds Plains area which aims to improve water quality and restore spring-fed flows.

The funding comes from MPI’s Irrigation Acceleration Fund (IAF) and the announcement was acknowledged by Primary Industries Minister Nathan Guy, during his visit to Canterbury today.

David Caygill, Environment Canterbury Deputy Chair of Commissioners, welcomed the announcement which will allow the Regional Council to carry out the Hinds Managed Aquifer Recharge Pilot Study in an area where groundwater nitrate concentrations are well above the national bottom-line. . . 

Central Plains schemes receive government support:

Government support for the Central Plains Water (CPW) Scheme was announced today by the Ministry for Primary Industries during a visit to the scheme by Minister Nathan Guy.

Through the Ministry for Primary Industries Irrigation Acceleration Fund (IAF), up to $6.64 million has been allocated to CPW to support completion of Stage 2 of their scheme’s development as well as $898,000 for the Sheffield Irrigation Scheme (a sub-scheme of CPW).

CPWL CEO, Derek Crombie has welcomed the latest funding announcements for the two projects. . . 

Change in responsibilities for Crown irrigation bodies:

A change in responsibilities for the Government’s irrigation programmes will help streamline and speed up water storage projects, Primary Industries Minister Nathan Guy has announced today.

From 1 July, Crown Irrigation Investments Limited (CIIL) will take over the responsibility for funding grants to regional irrigation schemes in the early stages of development, which are matched by local backers. This role has previously been carried out by the Ministry for Primary Industries’ Irrigation Acceleration Fund (IAF).

“It makes sense to have a single agency looking after this funding as well as CIIL’s current role of commercially investing in projects which are investment-ready,” says Mr Guy. . . 

Hold on tight farmers, the future is bright – Farmers’ Forum experts:

Leading industry speakers at the DairyNZ Farmers’ Forum held in Hamilton this week reaffirmed the view that while another year of low milk prices is on the horizon, the long-term outlook for dairy remains bright.

Deputy Prime Minister Hon Bill English, Fonterra CEO Theo Spierings and Rabobankhead of food and agribusiness research and advisory, Tim Hunt, all reiterated that global demand for dairy products will continue to grow.

Mr English said in the government’s view, the dairy industry will remain the engine room of growth as the second biggest New Zealand exporter behind tourism. But facing up to the reduced milk price is the current challenge. . . 

Fonterra expected to lift milk price – Tina Morrison:

Fonterra is expected to lift its farmgate milk price payout to farmers next season, although it’s likely to mark the third year of prices below the level required by most farmers to break even.

The company is scheduled to hold a board meeting on Tuesday and Wednesday of next week, and may release its opening milk price forecast for the 2016/17 season early Thursday morning. Analysts in a BusinessDesk survey expect a payout of at least $4.43 per kilogram of milk solids for next season, up from a $3.90/kgMS forecast payout for the 2015/16 season, and from $4.40/kgMS in 2014/15.

DairyNZ estimates the average farmer required $5.25/kgMS to cover costs this season and hasn’t yet finalised a break-even price for next season. . . 

Sharemilkers lose 49 cows and $73,000 to nitrate poisoning – Gerard Hutching:

Waikato sharemilkers Cam and Tessa Hodgson have lost 49 cows to nitrate poisoning, which could cost them up to $73,000. 

Nitrate poisoning happens as animals graze, and often occurs after a drought when there are high levels of nitrogen in the soil, and is exacerbated by humid, cloudy conditions. 

Cam’s brother Matthew Hodgson has started a givealittle page for them, saying their passion is farming “and to see the cows die in front of them is heartbreaking to them”. . . 

Farmers can cope with stress during busy times – Jill Galloway:

Experts suggest the best way farmers can cope with busy times is by exercising, sleeping and eating well and to never stop talking with people.

Wairarapa farmer, phycologist and rural trust co-ordinator Sarah Donaldson gave stress hints to about 50 people, mainly farmers as well as bank people, trust organisers and rural professionals at last week’s Beef & Lamb New Zealand AgInnovation conference in Palmerston North.

She said it was hard to recognise stress. . .

Food Safety Science & Research Centre launched:

Science and Innovation Minister Steven Joyce and Food Safety Minister JoGoodhew today launched the New Zealand Food Safety Science and Research Centre at Massey University in Palmerston North.

Formed as a partnership between government, industry organisations and research institutions, the virtual centre aims to ensure New Zealand’s food safety system remains among the best in the world.

“The centre will use the best science available to protect and enhance New Zealand’s international reputation as a producer of safe and  trustworthy food,” Mr Joyce says. . . 

New Zealand Apple Industry the most competitive in the World:

New Zealand’s $700 million apple industry has again been named the world’s most competitive performer.

The World Apple Report, out this week, ranks New Zealand first over 33 major apple producing countries.

Pipfruit New Zealand chief executive Alan Pollard said it is a great achievement to have a competitive edge over the world and to keep holding the position. . .  

Johne’s disease solutions available:

Help is at hand for dairy farmers facing a problem with Johne’s disease in their cattle.

LIC is reminding farmers of the options available from their herd improvement co-operative to help them manage the disease, including diagnostic testing and a comprehensive Johne’s disease management guide developed by experts.

“We know Johne’s disease can be a stressful and frustrating challenge for many dairy farmers,” LIC GM Biological Systems Geoff Corbett said. “We want to make sure farmers know there are tools available that can help them manage the disease in their stock.” . . 

 


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