Rural round-up

August 13, 2015

Strong outlook for primary sectors – Nathan Guy:

There’s been much talk about the dairy sector in recent days.

Last week, our largest dairy company Fonterra announced a new reduced forecast payout for farmers. This isn’t particularly surprising as it reflects the ongoing volatility in the international dairy price, but clearly it will have a significant impact on the dairy industry.

Times will be a bit tougher for dairy farmers over the next few months and it will have a flow-on impact in regional communities.

However, this volatility in dairy prices is expected to be short-term. The medium to long-term outlook for our dairy sector, and indeed all primary sectors, is very positive, and expected to grow by 17 per cent to more than $41 billion over the next four years. . .

 

Farmers to get higher wool price:

Marketing and sales company Wools of New Zealand has bumped up the price it’s offering farmers for lambs wool.

It will pay farmers a contract price of $7.50 per kilo for 28 micron to 31.5 micron lamb’s wool produced this season.

That is a 15 cent per kilo increase on the price it was offering at the beginning of July, which the farmer-owned company said reflected positive movements in the exchange rate, with a falling New Zealand dollar increasing export returns. . .

Hefty prices predicted for NZ beef:

 The Meat Industry Association says prices for New Zealand beef will be kept high, fuelled by Asia’s strong demand for protein.

Chief executive Tim Ritchie said although the United States, the country’s biggest beef market, was rebuilding its cattle herd numbers after drought, it too remained a very firm market and he expected it to stay that way for some time.

Mr Ritchie said the outlook for the country’s beef prices and exports was very positive, as many Asian countries were urging their people to eat more protein. . .

Milk payout cut undoes three years hard work – Sue O’Dowd:

Having to borrow back hundreds of thousands of dollars paid off their loan in the last 2½ years is leaving a Hawera couple bitterly disappointed.

Amanda and Bryce Savage, 50:50 sharemilkers on a 134ha farm for Maori incorporation Parininihi ki Waitotara, raised a loan to buy their first farm, a 74ha property near Stratford, in 2013.

Fonterra’s revised dairy payout of $3.85 kilogram milksolids (kg MS), down from $5.25, means they feel they’re going backwards because they’ll have to borrow back all the money they’ve repaid off that loan. . .

First Threatened Species Ambassador appointed:

Conservation Minister Maggie Barry has today announced New Zealand’s first Threatened Species Ambassador is Nicola Toki.

The Ambassador will be a high-profile role within the Department of Conservation for all of the country’s threatened species, working to build partnerships and encourage New Zealanders to become involved in conservation efforts.

“As a nation, we face a major battle to save our threatened species. Our unique native wildlife is besieged by introduced pests and other threats,” Ms Barry says. . .

Bluegreen programme of improved environmental management outlined:

A programme of stronger national direction and guidance on key environmental issues was announced today by Environment Minister Dr Nick Smith at the Environmental Defence Society’s conference in Auckland.

“A key problem with the Resource Management Act is that there has been too little central government direction on major issues. We are stepping up our programme of National Policy Statements, National Environmental Standards and national guidance to get better environmental results at less cost,” Dr Smith says.

Dr Smith today released the Ministries for the Environment and Primary Industries’ new guide on implementing the National Policy Statement for Freshwater Management. . .

Half Share for Sale in Large New Zealand Pastoral Farming Portfolio:

Half the shares in a large pastoral farming operation, New Zealand Pastures Ltd (NZP), are being offered for sale.

NZP is a private company that owns seven properties in Otago and Canterbury with a combined value over $100 million. Its portfolio comprises two partially irrigated and five dryland farms, ranging in size between 958ha and 7,533ha that have been predominantly managed as lamb and beef grazing and finishing units. Combined land area is 23,500ha with an assessed carrying capacity around 140,000 stock units. . .

BioGro Introduces New Organic Service:

BioGro Ltd, New Zealand’s leading organic certifier, has introduced a new Initial Contact Meeting service to help make it easier for anyone looking to ‘go organic.’

The Initial Contact Meetings are designed to inform and assist producers interested in organic production and certification.

Since the programme launched in November 2014, the meetings have proven popular with over 20 farmers and producers across New Zealand taking part so far. . .


Rural round-up

May 8, 2015

Moving on at Silver Fern Farms – Keith Woodford:

In recent weeks I have been analysing [here and here]  the GHD data that underpin the MIE recommendations for the meat industry. Those analyses confirm to me that MIE has missed the big picture.

The key MIE recommendation has been that companies must amalgamate, with the most important merger being between the two big co-operatives Silver Fern Farms and Alliance. However, Alliance has been consistent in their position, both before and since the MIE report, that the numbers needed to support an amalgamation do not stack up.

Alliance has taken considerable criticism from parts of the farming community for their lack of interest in joining Silver Fern Farms. Chairman Murray Taggart has been the front man and has had to bear the brunt of this. There are many sheep farmers who are struggling, and it is human nature to blame everyone else, even when financial logic says otherwise. . .

Slow rebalancing in global dairy markets weighs on prices, but turnaround beginning – Rabobank:

Recent decreases in international dairy prices and the 2014/15 milk price payout projection reflect the slow pace of the rebalancing that is taking place in global dairy markets, agribusiness banking specialist Rabobank said today.

Rabobank New Zealand CEO Ben Russell said the current market price forecast will negatively impact New Zealand dairy farmer cash flow and profitability across this season and next, but a turnaround in global dairy markets was beginning, with Rabobank maintaining its expectation of a price recovery to commence during the 2015-2016 season. . .

Synlait’s Akarola – Keith Woodford:

Synlait’s Akarola is about to transform China’s infant formula market. Fonterra’s new partner Beingmate, and all the other marketers of infant formula, are in for a huge shakeup.

On 25 March of this year I foreshadowed that infant formula prices in China were about to become much more competitive [here]. I based my report on information from dairy industry sources within China that New Hope Nutritionals – owned 75% by China’s New Hope and 25% by New Zealand’s Synlait – was about to launch a new brand of New Zealand- made infant formula called Akarola. I reported that the new brand would be sold exclusively online, at prices much less than half of normal prices in China.

A few days later New Hope Nutritionals launched their online campaign on JD.com ,and the foreshadowed price of 99 RMB for a 900 g per can was confirmed. In New Zealand dollars, this is about $21, or $16 in American dollars. . .

Scholarship, showing and study for Braydon – Kate Taylor:

BRAYDON SCHRODER was so tired from a week of working at the New Zealand Dairy Event he barely remembers his answers at the interview for Ravensdown’s annual Hugh Williams Memorial Scholarship.

He had left Feilding, flown to Christchurch for the meeting and then back to Feilding in time to show one of the family’s cows in the afternoon. But he was stoked to get the call the next day from Williams’ widow Adrienne to say he had been successful.

All in all, it was a successful week for Braydon – taking home the Youth Young Handlers title (16-19 years) and winning the youth team challenge at the Black and White Youth event. This is open to junior Holstein Friesian Association members.  . .

Ambassador brings new focus to threatened species:

New Zealand’s vulnerable native species will now have another strong voice for their protection with the announcement of the country’s first Threatened Species Ambassador.

Conservation Minister Maggie Barry says the high-profile new role will be pivotal in educating New Zealanders and raising awareness of our threatened species.

“We all need to know about the unique birds, animals and plants which are our taonga and understand the efforts needed to conserve them,” Ms Barry says. . .

New technology makes predator control easy – Gerard Hutching:

Conservationists might soon be able to know if a predator has been caught in a trap by simply checking their computer or smartphone.

Auckland civil engineer Simon Croft has developed wireless technology that attaches to traps and sends a signal to let people know if a predator has been caught.

The innovative traps will be first rolled out on farms in Hawke’s Bay, saving landowners from the time-consuming task of checking out individual traps.

Auckland civil engineer Croft said he had developed the technology “to make a difference”. . . .


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