Rural round-up

January 16, 2017

In lament of the NZ Farm – Dr Rosie Bosworth:

On the road to becoming the Detroit of agriculture.

Colleague and Christchurch based technology strategist Ben Reid, recently tweeted that New Zealand is in danger of fast becoming the “Detroit of Agriculture” – a rustbelt left behind after production has moved elsewhere.” Unfortunately, I am inclined to agree.  With technologies, science and new business models evolving, accelerating and converging at current breakneck speeds, industries globally – from banking, transport, accommodation and healthcare are having the rug pulled right out from beneath their feet. And sadly (at least for New Zealand farmers), agriculture, our economic mainstay, is next up on the chopping block. Fast en route towards becoming a sunset industry.  Overtaken and displaced by disruptive technologies, science breakthroughs and new business models. And the people at the helm? Not the people on the inside like our dairy farmers, apple breeders and savvy winemakers. But by sneaker wearing tech millennials and wealthy Tesla driving Silicon Valley venture capitalists and well funded research agencies. . . 

Dry conditions take toll on Northland farmers:

A drought declaration in Northland is just a few weeks away, but as conditions in the region grow tougher, Federated Farmers says.

Federated Farmers Northland president John Blackwell said spring had been good for the region, but a dry November and December had caused problems across the board.

Halfway through November the rain had disappeared and south-westerly winds had had a very drying effect on the land, Mr Blackwell said. . . 

Dairy NZ to appeal decision on Greenpeace ad – Catherine Hutton:

One of the groups who complained that a Greenpeace advertisement was false and misleading says it plans to appeal the advertising watchdog’s decision.

The Advertising Standards Authority (ASA) received 12 complaints about the advert, which blamed the dairy industry for water pollution, but dismissed all of them.

Dairy NZ, which represents dairy farmers, would not comment on the reasons it was appealing, ahead of the hearing.  . .

Hurunui Water Project says Greenpeace claims are exaggerated and out of date:

North Canterbury irrigation Company Hurunui Water Project today rejected claims by Greenpeace that the proposed scheme will lead to large-scale intensive dairying and consequent degradation of the Hurunui River.

“Greenpeace needs to actually read the latest information on the Hurunui Water Project (HWP) proposal that they have,” says HWP Chief Executive Alex Adams. “If they had done so, they would have seen the scheme is very different now to the original proposal they seem to be referring to, and that dairy development as a result of the scheme is planned to be to be a minor component.”

Adams said a 2016 survey of HWP shareholders showed the vast majority of the dryland farmers simply wanted irrigation to provide the assurance they needed to continue with their existing farming practice; only some 10 percent indicated that dairy conversions might be an option. . . 

Korean FTA delivers new round of tariff cuts:

More local businesses looking to expand into Korea will benefit from the latest round of tariff reductions under the New Zealand-Korea Free Trade Agreement, Trade Minister Todd McClay says.

The start of 2017 saw two thirds of New Zealand’s exports to Korea become duty free, up from 46 per cent in 2016.

“Thanks to this continued progress under the FTA, even more New Zealand businesses can compete favourably in the Korean market,” Mr McClay says.

New Zealand and Korea celebrated the first anniversary of the agreement in December 2016. Since the FTA’s entry into force in December 2015, New Zealand has experienced strong results particularly in the food and beverage sector where exports to Korea have increased by over 16%. . . 

Fonterra milk collections remain below previous season, trend shifts in Oz – Edwin Mitson

 (BusinessDesk) – Milk collections by Fonterra Cooperative Group this season are continuing to track below the previous year, mainly due to lower production on the North Island.

Collections in the seven months from June 1, 2016 to Dec. 31, 2016 were 881 million kilogrammes of milk solids, a fall of 5.5 percent on the same period in 2015, when prices were much lower. Some 186 million kgMS were collected in the month of December, down 5 percent on the same month a year ago.

There was a clear gap between the two main islands of New Zealand. Collections on the North Island fell 7 percent from June to December, while on the South Island they dropped just 2 percent in the same period. . . 

Commitment Pays Dividends for Taranaki Egg Farm Worker:

Team spirit, pride in her work and a determination to succeed in her studies have proved a winning combination for Taranaki woman Amy Kimura, who was recently named Poultry Industry Trainee of the Year for 2016. The national award is given each year to the top-performing trainee in all of the training courses run by the poultry industry in cooperation with the Primary Industry Training Organisation (PrimaryITO).

Amy, who is of Ngati Raukawa descent, is currently a Farm Worker at Aviagen New Zealand Ltd’s Taranaki production farms where her duties include general care and responsibility for the welfare of the poultry in her care. . . 

17 myths about agriculture in 2017 – Peterson farm Bros:

1. GMOs are evil

GMOs are a valuable technology used in science, medicine, and agriculture. Farmers use them to increase yields, reduce inputs, improve the soil, and provide resistance to drought, insects and weeds. There are GMOs being used all throughout society, and there is a very good chance you’ve consumed or used a GM product today. We do believe people should be free to avoid GMOs if they want to, but GMOs have been around for 2 decades (over a trillion meals consumed) without a single sickness or health issue resulting from consumption. . .

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Rural round-up

January 11, 2017

South Island’s two-year drought ends:

After two years, regions along the South Island’s east coast are no longer considered to be in a state of drought.

In 2015, Primary Industries Minister Nathan Guy classified the drought as “a medium-scale adverse event” affecting Marlborough, Canterbury and parts of Otago.

The following two years made the drought the longest recorded in this country – but the official period has not been extended since 31 December. . . 

Putting New Zealand’s farming woes in perspective – Pat Deavoll:

Over the last 10 years, I have been a few times to an area of northern Afghanistan called the Wakhan Corridor.

I am reminded of the dichotomy between the farmers of this area and the farmers in New Zealand whenever a weak GlobalDairyTrade auction result is announced, or the poor state of the meat industry is bandied around the media, or a wool auction fails to meet expectations.

The Wakhan Corridor is split east-west by the Panj River. On the northern side is Tajikistan and nomads herd sheep and cattle, and above 4500 metres, yaks.

Bio-diesel drives milk flow – Richard Rennie:

Fuel is starting to flow from New Zealand’s first commercial bio-diesel plant with Fonterra in line to be one of the first large-scale fleet operators to power its tankers with the Z Energy blend.  

Z Energy’s $26 million bio-diesel plant in Wiri, South Auckland began processing tallow based bio-diesel before Christmas, with the first commercial product due to be at the commercial pump by February.  

The plant’s commissioning marked a milestone in the country’s chequered history of domestic bio-fuels production. . . 

New weapon in rabbit war – Neal Wallace:

A NEW strain of rabbit-killing RHD virus could be released this winter.  

Increasing immunity among rabbits means the existing RHDV1, or Czech strain, has become less effective and advocates say the RHDV1 K5, also known as the Korean strain, would overcome protective antibodies and improve kill rates by up to 40%.  Federated Farmers South Canterbury high country section representative Andrew Simpson said the original RHD strain was still working to a point but growing immunity had allowed populations in some areas to recover, meaning a new, virulent strain was needed.  

Rabbits less than three months of age exposed to the Czech strain became immune, which resulted in the population returning to plague proportions in some parts of the South Island. . . 

Consumers drive move back to dairy:

The new year is marked by resolutions, often about healthier lifestyles. A new series backed by Fonterra looks at the nutritional and lifestyle benefits of dairy – and at some of the old views now being slowly discarded.

The Wall Street Journal headline ran over two lines: Grass-Fed Milk Is Taking Off With Health-Conscious Shoppers. It was a sign of things to come.

That was in 2014 – a story about how shoppers were prepared to pay more for grass-fed milk (many cows in the US eat feed derived from corn) because it was considered healthier.

Now, an article on the Gallagher Group’s website relates how US dairy retail supplier Organic Valley (the one highlighted in the WSJ two years ago) is enjoying an 82 per cent dollar growth in their grass-fed yoghurt, more than three times that of non-grass-fed yoghurts. Their Grassmilk brand is the top-selling grass-fed dairy brand in the US, experiencing double-digit growth since its launch in 2012. . . 

WTO decision important for NZ beef and horticulture into Indonesia

Trade Minister Todd McClay today welcomed the World Trade Organization’s (WTO) decision upholding New Zealand’s challenge to 18 agricultural non-tariff barriers imposed by Indonesia.

New Zealand and the United States jointly brought the case against Indonesia in 2013 over a range of barriers imposed on agricultural imports since 2011. These included import prohibitions, use and sale restrictions, restrictive licence terms and a domestic purchase requirement.

The barriers are estimated to have cumulatively cost the New Zealand beef sector alone between half a billion and a billion dollars. As recently as 2010, Indonesia was New Zealand’s second-largest beef export market by volume, worth $180 million a year. . .

Quality Pedigrees Abound at Karaka 2017;

Full-brother to G1 winner Lucia Valentina (NZ) (Savabeel) to be offered at Karaka 2017.

New Zealand Bloodstock’s 2017 National Yearling Sales Series at Karaka has impressive depth with a large quantity of siblings and progeny of Group 1 winners.

For the second consecutive year, the National Yearling Sales Series will present a full-sibling to the winner of one of Australia’s richest and most prestigious races. . . 

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Farming it’s an addiction.


Rural round-up

October 27, 2016

Fraud exposes Fonterra supply chain – Fran O’Sullivan:

Dairy giant Fonterra is expected to have control of its supply chain in China. But is that reasonable given the extraordinary amount of consumer fraud in that country?

Fonterra has launched an internal probe into the fraudulent sale of 300 tonnes of its bakery products in China that had passed the expiry date.

It is not alone in facing problems with distributors in China. Zespri became engulfed in a double invoicing scam involving one of its distributors. All multinationals face these problems. . . 

NZ EU focus on WTO ag, NTB issues and FTA:

Trade Minister Todd McClay and EU Trade Commissioner Cecilia Malmström have agreed on the importance of working in the World Trade Organisation (WTO) towards reducing non-tariff barriers (NTBs), addressing harmful fisheries subsidies that contribute to over fishing, and reform of domestic support in agriculture.

“Commissioner Malmström and I are committed to progressing these important issues in Geneva as part of preparations for the next WTO Ministerial Conference in 2017,” say Mr McClay.

The discussion took place in Oslo, Norway this weekend in advance of the WTO mini-ministerial meeting. . . 

Taratahi looks to partner with Chinese dairy company – Alexa Cook:

Agricultural training school Taratahi is in talks to partner a Chinese dairy firm.

It has hosted visitors from eight different countries this month, including a group from a Chinese dairy company and veterinarian association.

Taratahi chief executive Arthur Graves said there was demand from all over the world for their agricultural on-farm education model. . . 

Dairy Farmers Attract Au Pairs From Across the Globe:

New Zealand dairy farms are becoming home for many au pairs who are heading across the globe to help rural kiwi families..

Taranaki Dairy Farmers Rachel and Murray Perks have two young children and say they used to struggle with the early starts in the milking shed.

“Now that we have an au pair we can keep our children at home and don’t have to take them to the milking shed,” says Ms Perks.

When German au pair Veronika Burger arrived, life became a whole lot easier. . . 

Coastal farm has lifestyle block and horticultural crop potential:

A large mixed-use coastal farm which commands breath-taking views of the Bay of Plenty and even boasts its own airstrip has been placed on the market for sale.

The 260ha Sybton Farm, at 1402 State Highway 2, Waiotahi, is presently run as a dairy and dry stock beef unit, but it has the potential to be used for horticultural crops or even subdivided into lifestyle blocks or rural residential properties.

The property is well placed to take advantage of the area’s growing popularity with lifestylers looking for a gentle climate, beautiful scenery and an easy pace of life. . . 

Farmers: a different style of leadership – Karen Schwaller:

If there is one skill farmers have honed, it’s being in charge. They’re born leaders.

After all, they choose their crop inputs, map out their field fertility plans, invest in livestock and feed stocks, decide on crop insurance, determine when commodity prices are right, spend the money they need for the equipment to make it all happen, and choose to get up before the roosters each day because there’s a lot to accomplish. Often times, the farmers I know, do not stop until long after the sun has called it a day.

And while they are busy running their farms and helping raise their families, many also decide to become involved in their communities. You’ll find farmers in rural areas involved in all kinds of things-from memberships on the local school board, board of supervisors, elevator board, electric cooperative board, corn and soybean associations, and even being 4-H leaders and friends of the local FFA. . . 

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Long hours. Calloused hands. Dirty clothes. Wouldn’t trade it for the world. – Pink Tractor.com


Rural round-up

July 25, 2016

Future grim if deal off – Neal Wallace and Alan Williams:

A grim economic future has been painted by Silver Fern Farms directors should the meat company not complete its merger with Shanghai Maling.  

In notice of meeting documentation being sent to shareholders, chairman Rob Hewett said banks twice last year warned the co-operative they would not “under any circumstances” provide ongoing finance unless shareholders approved a new injection of capital.

Hewett said in an interview that nothing had changed since those warnings were issued in May and June last year. . . 

Market-ready lamb set for China:

Alliance Group has launched a new range of market-ready retail packs to China.

The co-branded lamb products will begin being sold in China’s retail and food service sectors next month in conjunction with the co-op’s in-market partner Grand Farm.

The initial focus of the programme will be on the upper end of the Chinese market with five regions, Beijing, Shanghai, Guangzhou, Shenzhen and Harbin, being targeted. . .

Turning effluent into electricity – Allison Beckham:

Southland cows are good at producing milk, and now it has been proven they are also good at producing another useful staple – electricity.

After two years of planning and design, a pilot plant producing electricity from dairy effluent methane is about to be commissioned on a Southland dairy farm.

The system is expected to generate about 50kW of electricity annually, enough to power about 75% of the farm’s electricity needs and equivalent to the requirements of about 10 urban households. . . 

Minister clarifies China trade issue:

Trade Minister Todd McClay has today reiterated that the Government has sought and received assurances from the Chinese Government that any competition issues would not impact on trade between the two countries.

Mr McClay is responding to reports that retaliatory action could be imposed if an investigation is launched into allegations of steel dumping.

“On my return from Indonesia I asked my office for a full review of the broader issues around this matter.

“I want to make it clear today that there have been discussions and limited correspondence over the past few months as the Ministry of Foreign Affairs and Trade has endeavoured to assess the veracity of these reports. . . 

New PGP harvest technology targets safety:

New forest harvesting technology revealed today in Nelson sets its sights on further increasing safety in steep land harvesting operations, Associate Primary Industries Minister Jo Goodhew says.

The new ‘tele-operation’ technology provides out-of-harm’s way operation of a purpose-built tracked feller-buncher forest harvester, from the safety of a separate operator cabin and console.

The breakthrough is part of Steepland Harvesting, a 6-year, $6 million Primary Growth Partnership (PGP) programme between the Ministry for Primary Industries (MPI) and a consortium of forestry companies and contractors, led by Future Forests Research Ltd (FFR). . . 

New Zealand’s Largest Organic Apple Grower Plants Big in New Varieties:

New Zealand’s largest organic apple grower, Bostock New Zealand has been making the most of the sunny Hawke’s Bay weather, busily planting about 4000 new apple trees each day.

The company has been pulling out it’s old apple varieties and planting new trees to keep up with the international demand for organic, GM Free fruit.

Bostock New Zealand Organic Orchards Manager Craig Treneman says it’s exciting to be planting new varieties, which are sweeter and higher colour and appeal to the growing Asia market.

“We have some new orchard developments in Twyford, where we are planting about 4000 new tree varieties a day. . . 


Rural round-up

January 27, 2016

NIA shows duty cuts to major export destinations – Neal Wallace:

Annual duty savings of $272 million will be removed on exports to five signatories to the Trans Pacific Partnership with which New Zealand does not have trade agreements, the Government revealed today.  

Trade Minister Todd McClay released the national interest analysis (NIA) on the 12-country agreement which largely confirmed trade benefits it had announced earlier.  

The NIA revealed exporters paid duty of $334 million a year on exports to five countries with which NZ does not have free trade agreements, the United States, Japan, Canada, Mexico and Peru. . . 

Westland Lowers Pay-Out Predictions as Global Dairy Prices Predicted to Remain Low:

Westland Milk Products, New Zealand’s second biggest dairy co-operative, today announced a drop in its pay-out predictions for 2015-16, saying a forecast 15 to 25 percent reduction across all commodity products for the remainder of the season is the driving force behind the decision.

Chairman Matt O’Regan says the new predicted payout of $4.15 – $4.45 per kilogramme of milk solids (kgMS) (previously $4.90 to $5.30 per kgMS) will be grim news for Westland’s shareholders but, given the widely publicised state of the global dairy market, not unexpected. He says lower prices are expected to remain for this season and probably into the second half of 2016 – the beginning of the 2016-7 season. . . 

New Zealand’s future agri-leaders in running for trans-Tasman award:

• 2016 Zanda McDonald Award finalists announced

Two young New Zealand agri-business professionals have made it through to the finals for the 2016 Zanda McDonald Award.

Dean Rabbidge, a dairy, beef and sheep farmer from Wyndham, Southland, and Erica van Reenen, an agricultural and environmental consultant with AgFirst, based in Manawatu, have been selected as finalists alongside soil scientist, Wesley Lefroy, from Western Australia.

The three, who attended interviews in Brisbane late last year, will join the PPP ‘Capital Connections’ Conference in Wellington in March – where the award winner will be announced. . . 

Drought in South Island enters second year:

Widespread drought conditions in the South Island mean the medium-scale event classification will be extended until the end of June, Primary Industries Minister Nathan Guy has announced today.

“Extra funding of up to $150,000 will go to local Rural Support Trusts with $40,000 of this going to the North Canterbury Trust,” says Mr Guy. 

Speaking with farmers at a sheep and beef farm in Weka Pass, Hurunui, Mr Guy acknowledged this is the third time the classification has been extended.

“Marlborough, Canterbury and parts of Otago were originally classified as a medium-scale event on 12 February 2015 and have had very little rainfall for more than a year now. . . 

Drought resistant pasture being investigated:

Scientists have identified a type of plant that recovers quicker than others after drought and are taking the next steps to get it on to farmers’ paddocks.

But they say it could be eight to 10 years before it is available.

The Primary Growth Partnership – Transforming the Dairy Value Chain is funding the research into pasture resistance.

It comes at a crucial time with 2015 being the hottest on record and Marlborough, Canterbury and parts of Otago enduring their second season of drought. . . 

Industry Challenged by new forest technology:

Foresters face paradigm shift for logging steep slopes

The tables are being turned on foresters and logging contractors in British Columbia. Disruptive technology from New Zealand is set to create a whole new way of logging in B.C.’s forests. When meeting challenges to safely harvest NZ’s steep sloped forests, practicing foresters found convincing safety advantages with the new harvesting technology.

In recent years, loggers in New Zealand’s forest industry faced safety challenges in tree falling, especially on steep slopes. There was no choice but to reduce accidents. Up and down the steep, forested country, people turned to the safety of mechanised harvesters. Simultaneously, safety and productivity improved. . . 

Intensifying workplace laws means there are no longer any ‘family farms’ and they can’t be an extension of a backyard playground – John Brosnan:

It’s a new year on farm.

You have negotiated the Christmas and the New Year breaks with the team, so now is a good time to take a breath and consider – what next?

Well first out the gate will be the new WorkSafe legislation which comes into force 1st April this year. Are you prepared for this? Have you prepared an operational plan and put in place a robust health and safety policy? Do you and all your employees have a means to adhere to it? . . 

Canterbury dairy farm penalised for employment law breaches:

The Employment Relations Authority (ERA) has ordered Viewbank Dairy Ltd near Rakaia to rectify employment law breaches discovered by Ministry of Business, Innovation and Employment’s Labour Inspectorate and pay $7,500 in penalties.

The Ministry of Business, Innovation and Employment’s Labour Inspectorate visited the farm as part of an audit to check for compliance with minimum employment standards on dairy farms. A number of breaches were identified and an Improvement Notice was issued. The Inspector brought the case before the ERA when the employer failed to comply with parts of the Notice.

Labour Inspectorate Southern Regional Manager Stuart Lumsden says the investigation found that several workers had been treated as casual employees when in fact they were permanent. . . 

Take advantage of steady nutrient costs:

The Fertiliser Quality Council (FQC) says current stability around fertiliser prices will give farm budgets an early boost for 2016 – but only if farmers are quick to seize the opportunity.

The two main fertiliser manufacturers, Ballance and Ravensdown, have kept costs for major nutrients under control since September 2015 – despite economic volatility caused by last year’s slide in the value of the New Zealand dollar.

The FQC says there’s no knowing for how long the good deals will continue and urges farmers to take advantage of the co-ops’ goodwill while it lasts. . . 

Karaka Select Sale Commences Today:

The first day of the Karaka Select Sale commences today at 11am with Lot 448 to Lot 670 going under the hammer.

The Sale will be streamed live online. To view the live stream, click here.

There have been 27 Group 1 wins from graduates of the Select Sale over the past three seasons. The new season has seen Mongolian Khan (Holy Roman Emperor) and Tarzino (NZ) (Tavistock) both land Group 1 races during the Melbourne Spring Carnival. . . 


Rural round-up

July 15, 2015

FMG gets $3m flood, snow claims – so far:

The country’s largest rural insurer Farmers Mutual Group says it has received $3 million worth of claims related to the flooding and snow that hit the country last month.

FMG said the severe flooding in the lower North Island prompted 264 claims from the Manawatu-Whanganui and Taranaki regions, and snow damage in Canterbury led to 80 claims being lodged.

General manager of advice and insurance Conrad Wilkshire said most of the claims were for damage to houses, contents, sheds, and farm equipment.

In one case, a farm building was swept down a river. . .

Fonterra’s rivals tell DIRA review there is insufficient competition for dairy industry deregulation – Fiona Rotherham:

(BusinessDesk) – Competitors of Fonterra Cooperative Group, the country’s largest dairy processor, claim there’s still insufficient competition to deregulate the industry.

In submissions to the Commerce Commission, which is undertaking a government-ordered review of the industry’s competitiveness, rival processors either want the status quo or the regulations tightened.

Farmers lobby group, Federated Farmers, says the Dairy Industry Restructuring Act 2001(DIRA) will need to be amended if it’s retained long-term. . .

 Kiwi Developed Sugar Substitute to Tackle Obesity Problem:

A new low-calorie sugar alternative made entirely from fruit and developed by Kiwis, is set to offer companies around the world a natural way to reduce sugar in everyday foods and beverages such as cereals, yoghurts and juices, without compromising flavour.

Developed by Kiwi and Chinese joint venture company Guilin GFS Monk Fruit Corporation, Sweet-Delicious is a natural fruit juice made from a small Chinese melon called monk fruit. As a natural low-calorie alternative to sugar and artificial sweeteners it is a new way to tackle the growing obesity epidemic. . .

 ‘Drought man’ coming to Lincoln:

“Innovate or stagnate” will be the main message from Grassmere farmer Doug Avery when he visits Lincoln University next Thursday.

Avery’s talk about turning drought and desperation into sustainability and success will take place on Thursday, July 16 at 7pm.

Avery, also known as the ‘drought man’, says he understands the value of farmers learning from farmers. . .

Fonterra strengthens ties with the Netherlands:

Associate Minister of Trade Todd McClay says a new Fonterra ingredients factory in the Netherlands, opened yesterday by Dutch King Willem-Alexander, marks an exciting step forward in agribusiness collaboration between New Zealand and the Netherlands.

The state-of-the-art factory in Heerenveen, Friesland, has been developed in partnership with Dutch conglomerate A-Ware Food Group, which has built a major new cheese plant next door.

Whey and lactose, by-products of A-Ware’s cheese-making process, will be processed into specialty ingredients by the Fonterra plant. These will be used in high-value paediatric, maternal, and sports nutrition products for sale in the European Union and beyond. . .

Kiwifruit Claim Wins First Round:

The High Court at Wellington has ruled in favour of The Kiwifruit Claim and against the Crown on all substantial points, in a judgment released on 8 July.

Kiwifruit growers and post-harvest operators who were negatively affected by Psa have untilFriday 9 October 2015 to sign up to The Kiwifruit Claim, the court has ruled.

The court said growers and post-harvest operators should be allowed to bring the proceedings as a representative or class action, which had been opposed by the Crown Law Office (CLO). . .

Hemp seed food sales remain on horizon:

The adoption of a hemp seed food standard remains on the horizon, following work requested by the Food Standards Australia New Zealand Ministerial Forum earlier this year says Food Safety Minister Jo Goodhew.

“New Zealand supports a standard allowing the sale of hemp seed food products, and I am hopeful that the Ministerial Forum will be able to assess the proposed hemp standard again early next year,” says Mrs Goodhew.

“The best available science shows us that hemp seed is safe to eat and has positive nutritional properties. However, the Ministerial Forum had some unanswered questions when it met in January. . .

 

Review of Hemp as a Food:

The NZ Grain and Seed Trade Association (NZGSTA) was pleased to learn today that the Australia and New Zealand Ministerial Forum on Food Regulation (the Forum) was continuing to address some concerns around the sale of hemp seed foods for human consumption.

Responding to the Forum’s communiqué issued from Hobart Thomas Chin, association general manager, said the industry realises that the NZ Minister and officials were supportive of hemp seed foods and they are continuing with strong efforts to help see the development of a new cropping opportunity for NZ primary producers and manufacturers. . .

 

Wool Market Slightly Easier:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the first wool auction of the 2015/16 season offering 6,800 bales comprising predominantly 80 percent short second shear wools, saw a 92 percent clearance with a slightly softer tone.

Despite a weaker New Zealand dollar compared to the last sale on 25th June, with the weighted currency indicator down 1.96 percent, the bulk of the offering was firm to 2 percent easier.

Mr Dawson advises that the seasonal slow-down in order, approaching European vacation period and well stocked supply lines in China are limiting new orders for wool temporarily. . .

 


Bank, govt aim at demand, what about supply?

May 18, 2015

The Reserve Bank and the government are both trying to take the heat out of the Auckland housing market.

The Bank announced proposed changes to the loan-to-value ratio (LVR) policy to take effect from 1 Octobere:

They will:

  • Require residential property investors in the Auckland Council area using bank loans to have a deposit of at least 30 percent.
  • Increase the existing speed limit for high LVR borrowing outside of Auckland from 10 to 15 percent, to reflect the more subdued housing market conditions outside of Auckland.
  • Retain the existing 10 percent speed limit for loans to owner-occupiers in Auckland at LVRs of greater than 80 percent.

The government is  taking extra steps to bolster the tax rules on property transaction.

FInance Minister Bill English and Revenue Minister Todd McLay say the Government is taking extra steps to bolster the tax rules on property transactions – including those by overseas buyers – and to help Inland Revenue enforce them.

The tax measures are also expected to take some of the heat out of Auckland’s housing market and sit alongside the Reserve Bank’s latest moves to address associated financial stability issues, Mr English says.

“Taken together, they will help Inland Revenue enforce existing tax rules, provide it with extra resources and ensure that property investors pay their fair share of tax – whether they’re from New Zealand or overseas.”

The Budget this week will confirm that, from 1 October this year, the following will be required when any property is bought or sold:

  • All non-residents and New Zealanders buying and selling any property other than their main home must provide a New Zealand IRD number as part of the usual land transfer process with Land Information New Zealand.
  • In addition, all non-resident buyers and sellers must provide their tax identification number from their home country, along with current identification requirements such as a passport.
  • And to ensure that our full anti-money laundering rules apply to non-residents before they buy a property, non-residents must have a New Zealand bank account before they can get a New Zealand IRD number.
  • In addition, a new “bright line” test will be introduced for non-residents and New Zealanders buying residential property, to supplement Inland Revenue’s current “intentions” test. Under this new test, gains from residential property sold within two years of purchase will be taxed, unless the property is the seller’s main home, inherited from a deceased estate or transferred as part of a relationship property settlement.

“Tax rules are complex and affect people in different ways, so we will consult on these measures before they take effect on 1 October,” Mr English says.

The “bright line” test will then apply to properties bought on or after 1 October.

To further ensure overseas property buyers meet both existing tax requirements and those of the new test, the Government will investigate introducing a withholding tax for non-residents selling residential property.

Officials will consult on these details with a view to this withholding tax being introduced around the middle of 2016.

Mr English reiterated owner-occupiers of residential property will not be affected by the new measures when they sell their main home, or if property is inherited from a deceased estate or transferred as part of a relationship property settlement.

“It’s important to reiterate that these changes will not apply to New Zealanders’ main home, although existing tax rules will still apply in  addition to these new measures,” Mr English says.

“It’s equally important that people buying residential property for gains meet their tax obligations, whether they are from New Zealand or overseas.

“The combination of collecting IRD numbers and introducing this new bright-line test will help ensure that non-residents pay their fair share of tax in New Zealand.” . . .

New Zealand National Party's photo.

These measures should go someway to dampening the demand side of the pressure on Auckland property prices.

More needs to be done to increase the supply of houses.

This could be done by building more houses and by people moving from Auckland to other areas.

Immigration Minister Michael Woodhouse is considering incetivising immigrants to settle in the regions:

The Government is set to give skilled migrants, investors and those planning to bring businesses to New Zealand extra points if they settle outside of Auckland.

Skilled migrants and those applying to live in New Zealand under entrepreneur visas already gain 10 points in the immigration points system if they say they intend to settle outside of Auckland. That could soon get a boost.

“Those entrepreneurs, those innovators who could make a contribution to regional development, it is possible for us to bump up the points settings to incentivise that,” says Mr Woodhouse. . .

 It’s not just immigrants who could make a contribution to regional development.

If some of those bemoaning property prices in their home city opened their eyes to opportunities outside Auckland they could move out of Auckland.

They would get a house for much less than they could hope to pay in the city, find how much easier life is when there are fewer people clogging the roads and in improving their lives would free up houses in Auckland for those who can’t or won’t move.


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