Rural round-up

22/09/2020

Water and labeling high on hort sector’s election wish-list – David Anderson:

New Zealand’s horticulture industry has set out its wishes for the upcoming election campaign, covering water, climate change, country of origin labelling and labour issues.

Industry body Hort NZ is asking that any future government ensures the horticulture sector can develop “within a supportive framework that enables sustainable growth”.

It says the sector currently contributes more than $6 billion to NZ’s economy, is the country’s third largest export industry and employs approximately 60,000 people.

“What horticulture needs in order to continue its success in producing fresh and healthy food for New Zealand and export markets is quite simple.” . . 

Rural environment grows ideas just fine – Mary-Jo Tohill:

Two years ago when he was playing for the Southland Sharks, Clinton man Lydon Aoake struggled to stay motivated.

The now 30-year-old was in the team that took out the 2018 New Zealand Basketball League. That year he juggled training, a full-time job at Danone Nutricia, and fatherhood.

“When I was working out trying to get fit for the Sharks, I wanted to get a personal trainer, but Clinton was pretty rural,” Mr Aoake said.

“So I had a little bit of a fitness background, I knew what I needed to do — it was just the PT motivation that I wanted.” . . 

Fonterra’s dividend – my five cents – Elbow Deep:

It has been quite the year for Fonterra, the co-operative not only won unanimous parliamentary support for the changes they sought to the Dairy Industry Restructuring Act, they also returned to profit after last year’s first ever financial loss. That profit, a stunning $1.3 billion turnaround from the previous season, saw Fonterra pay suppliers their fourth highest payout in the Co-op’s history; $7.14 per kg of milksolids and a 5c dividend on shares.

As dairy farmers we have been pretty well insulated from the worst financial effects of the pandemic, it has been business as usual thanks largely to Fonterra’s ability to navigate the strict requirements of operating under various levels of lockdown and to quickly react to changes in demand caused by Covid-19.

It struck me as curiously ungrateful, then, that the first response I saw on social media to Fonterra’s excellent result was a complaint the dividend was too low. This, it turns out, was not an isolated expression of that sentiment. . . 

Fonterra stabilises finances with back to basics model, selling assets and retaining profits – Keith Woodford:

Fonterra has stabilised its finances with more asset sales forthcoming. It now operates a conservative model supported by its farmer members. But the model will not create the ‘national champion’ that the Labour Government has always hoped for

Fonterra’s annual results announced in 18 September for the year ending 31 July 2020 indicate that Fonterra has made good progress in stabilising its financial position. A key outcome is a reduction in interest-bearing debt by $1.1 billion, now down to $ 4.7 billion. This has been brought about through asset sales and retained profits.

Chief Financial Officer Marc Rivers told a media conference immediately after release of the results that further debt reductions were desired.  The key measure that Fonterra is now using for debt is the multiple of debt to EBITDA, which now stands at 3.4. The desired level in the newly conservative Fonterra is between 2.5 and 3. . . 

Self-shedding sheep study:

Massey University is examining the economic impact and the production consequences of crossbreeding with Wiltshire sheep to a fully shedding flock.

Coarse wool sheep farmers are struggling with the cost of shearing in relation to the value of the wool clip. Many are considering if changing to a self-shedding flock, such as a Wiltshire, is a better way forward.

However, the cost of purchasing purebred Wiltshires – and the limited numbers available – means this is not a viable option for many. However, there are examples of farmers successfully grading up to Wiltshires by continual crossing.

But there is a general lack of accurate recorded information on the costs, benefit and pitfalls from doing so. . . 

Plug pulled on 2021 Marlborough Wine and Food Festival – Tracy Neal:

Organisers of next February’s Marlborough Wine & Food Festival have pulled the plug early.

It is the first time in the event’s 36-year history it has been cancelled, but the potential lingering challenges over Covid-19 posed too much risk.

Marlborough Winegrowers Board Chair Tom Trolove said it had been a really tough decision that would impact businesses in our community.

“But the board was clear that in these unprecedented times, it had to prioritise the safety of the harvest. . . 


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