Rural round-up

May 5, 2018

Save water and cut effluent – Richard Rennie:

A partnership between Ravensdown and Lincoln University has unveiled technology its creators believe will reduce farm effluent loads significantly while also saving billions of litres of fresh water.

ClearTech, launched this week, has taken the dairy industry’s two biggest issues, effluent losses and water consumption and dealt with both through a combination of simple water purification principles, managed by a computerised controller.

ClearTech puts a coagulant into the effluent when a farm dairy yard is hosed down. It causes the effluent particles to cluster together and sink, leaving most of the water clear and usable.

Ravensdown effluent technology manager Jamie Thompson said there are challenges to getting effluent to clot given the variable pH, turbidity and content of the waste on any given day. . . 

Dairying unexpected but welcome career choice – Nicole Sharp:

Southland-Otago Dairy Manager of the Year Jaime McCrostie talks at the recent regional field day at the Vallelys’ property, near Gore, about her journey in the dairy sector.

Jaime McCrostie never thought she would end up dairy farming.

She grew up on a sheep farm and it was her neighbour who taught her how to milk cows.

She has travelled all over the world and worked in a range of industries, but always seems to come back to the dairy industry. . . 

MediaWorks to broadcast Grand Final of 50th FMG Young Farmer of the Year:

A new deal will see MediaWorks broadcast New Zealand’s longest running agricultural contest the FMG Young Farmer of the Year.

Under the agreement, an edited version of the 50th Grand Final of the iconic contest will be broadcast on ThreeNow.

ThreeNow is MediaWorks’ free video on-demand streaming service available on smart TVs and mobile devices.

MediaWorks’ Head of Rural, Nick Fisher, said the broadcaster is proud to be partnering with NZ Young Farmers to produce the programme. . . 

Tribute paid upon receiving award – Pam Jones:

An Alexandra man has received national recognition for his services to irrigation in Central Otago, but has paid tribute to the work of “two extraordinary women” as well.

Gavin Dann was one of two recipients of a 2018 Ron Cocks Award from Irrigation New Zealand during its conference in Alexandra recently, for his leadership of the Last Chance Irrigation Company (LCIC) and his work to establish a community drinking water supply.

Mr Dann had been the “driving force” behind a number of initiatives to improve the Last Chance company’s operations, supporting the scheme for more than 40 years, Irrigation New Zealand chairwoman Nicky Hyslop said. . . 

 

Landcorp board gets a refresh – Neal Wallace:

Former Landcorp chairwoman Traci Houpapa was available for reappointment but missed out because the shareholding ministers wanted to refresh the state-owned enterprise’s board, she says.

Her eight-year term on the board, of which three were as chairwoman, has come to an end, along with three other directors, Nikki Davies-Colley, Pauline Lockett and Eric Roy.

Houpapa accepted her appointment was at the behest of the Ministers of State Owned Enterprises Winston Peters and Finance Grant Robertson.

The newly appointed directors are Nigel Atherfold, Hayley Gourley and Belinda Storey.

She said the Landcorp she joined eight years ago was very different to the one she has just left, with a different strategy, focus and operating model. . . 

 

Regional fuel tax will add to the cost of food:

Regional fuel tax legislation, as it stands, is likely to add costs to fresh fruit and vegetables for consumers.

Today, Horticulture New Zealand spoke to the Finance and Expenditure Select Committee about its written submission on the Land Transport Management (Regional Fuel Tax) Amendment Bill, that is endorsed and supported by a further 18 organisations.

“While in principle, we agree with measures to reduce road congestion in Auckland, we believe there are un-intended consequences of the Bill as it stands; these could include increases to the prices of healthy, fresh fruit and vegetables,” Horticulture New Zealand chief executive Mike Chapman says. . .  . .

Bull finishing farm steered towards a sale:

One of Northland’s most substantial bull finishing farms has been placed on the market for sale.

The 400-hectare property is located on the western outskirts of the township of Kawakawa in the Mid-North, and is held over 24 individual titles in three blocks. The farm’s topography consists of 268 hectares of rolling to medium-contour grazing paddocks, and 108 hectares of flat land – allowing for tractor-access to 95 percent of the property.

The farm also contains 24 hectares of mature pruned pine trees ready for harvesting, and estimated to be worth in the region of $360,000. The freehold farm has been owned by three generations of the Cookson family. . . 

Delegat has record 2018 harvest, driven by increase in NZ grapes – Jonathan Underhill:

 (BusinessDesk) – Delegat Group, New Zealand’s largest listed winemaker, says it had a record harvest this year, driven by an increase in New Zealand grapes, while its Australian harvest fell.

The Auckland-based company said the 2018 harvest rose to a record 40,059 tonnes, as grapes collected in New Zealand rose 10 percent to 38,012 tonnes. The Australia harvest for Barossa Valley Estate fell to 2,047 tonnes from 2,760 in 2017.

“The 2018 vintage has delivered excellent quality in all regions,” managing director Graeme Lord said in the statement. . . 


TPPA true & false

February 4, 2016

The National Party has a webpage giving the facts and refuting the myths on the Trans Pacific Partnership Agreement (TPPA) which is being signed in Auckland today.

Don’t believe that?

Chapman Tripp says:

The TPP began life modestly as an initiative between New Zealand and Singapore, but the ambition was that it would evolve into a trans-Pacific agreement.  The first recruits were Chile and Brunei and the net has subsequently extended to Australia, the United States, Canada, Japan, Malaysia, Mexico, Peru and Vietnam.

New Zealand now finds itself in the vanguard of the new wave of economic globalisation.  This is a coincidence of the worldwide focus on FTAs to further integrate economies, the prominence of Asia, and the United States’ and Japan’s renewed interest in the Pacific Rim. 

Some find this uncomfortable.  Many, including the protesters at Seattle, found the birth of the WTO in 1994 similarly uncomfortable.

Difficult as change can be, this is an opportunity which will not come again.  In its final form, the TPP is the biggest free trade deal in a generation and will establish the architecture of Asia Pacific trading relationships for decades to come.  . . 

and concludes

. . . Labour’s frustration is understandable.  The TPP does not appear to include the specific reservation of rights Labour wanted.  New Zealand negotiators could perhaps have sought a more nuanced provision, such as appears in the NZ-Korea FTA, which arguably preserves some scope to expand the OIA screening regime.  It is hard to see that the more absolute language in the relevant TPP annex was a deal breaker for other negotiating parties. 

Negotiating parties tend not to publicly announce their bottom lines in advance to avoid painting themselves into a corner, as Labour has effectively done.  One cannot, of course, sensibly weigh up the overall merits or demerits of a 6000 page 12 party agreement by looking only at one provision.  To attempt this is to miss the wood for the trees. 

None of the signatory countries will be perfectly satisfied with the deal.  Each will have a particular clause or clauses that they would prefer were not there.  The US Republican Senator, Orrin Hatch, for instance is chagrined that the IP chapter grants only five, and not eight, years’ protection to biologics. 

But if support for the deal was premised on perfection, then it would go the way of the Doha Round.  It is no coincidence that TPP opponents play the single issue game.  Conflating whether one gets everything one wants, and whether the deal is acceptable overall, is a classic black hat strategy. 

The art of negotiating involves being able to push hard for one’s positions, then to stand back and work out whether (even if one did not get all one wanted) the deal on the table is better than no deal at all. 

Here, the question is even more stark.  Would New Zealand be better off inside, or outside, the tent?  MFAT’s national interest analysis reaches a firm conclusion, having weighed everything up over 276 pages.  It is respectfully suggested that this conclusion deserves to be afforded more weight than anyone’s position based on a single issue.

Those last two paragraphs nail it.

The deal isn’t perfect but it is better than no deal at all and New Zealand is better inside the tent than outside it.

The usual nonsense at Waitangi purports to be about the TPPA threatening the Treaty but the Federation of Maori Authorities is cautiously supportive:

. . .Chair Traci Houpapa said there were benefits and opportunities for Māori and all New Zealanders.

“We’ve analysed those documents ourselves and while we have a level of comfort we agree with the 12 month consultation process that the signing on the 4th of February triggers.”

Ms Houpapa said the removal of some or most tariffs for exporters would have financial benefits for the federation’s regional members.

“Māori have a predominate footprint in primary sector industries, we are land, water or sea based so our exporters have obvious benefits if the removal of tariffs are in place and TPP provides for that.”

FOMA is happy with the provisions within the agreement that acknowledge the Treaty of Waitangi, which say it must be enshrined, but FOMA recognises further analysis of what that means is required. . . 

“We recognise TPP is a complex trade arrangement which requires time to fully digest and understand. Our members support the trade benefits and want assurance that our national sovereignty and Treaty partnership are maintained. We welcome proper engagement with government and our members on this important matter,” said Ms Houpapa.

Proper engagement will achieve what all the protests prefaced on political agendas won’t.

Charles Finny says the TPPA deserves praise from Maori:

I believe that rather than being inadequate in its protections for Maori, TPP is if anything a taonga in the way it protects the rights of the New Zealand Government to discriminate in favour of Maori. This in turn, I think, adds enormous mana to Maori.

I feel Maori are being poorly advised from some quarters and it is essential that ministers and government officials spend even more time explaining the protections for Maori in the agreement and the trade benefits that will flow to Maori from it. These benefits are substantial.

TPP is an agreement between 12 countries. Pretty much all the 12 jurisdictions are home to indigenous minorities – for example, the First Peoples of the United States, Canada, Mexico, Peru, Chile, the Aboriginal people in Australia, the Malays in Singapore and Malaysia, and the Ainu in Japan.

Yet none of these peoples is mentioned in the main text of the deal and none of their Governments has secured agreement from the other members that they should be allowed to discriminate in favour of them.

In contrast Maori are mentioned, as is the Treaty of Waitangi. Article 29.6 of TPP is actually titled “Treaty of Waitangi”. It says that “provided that such measures are not used as a means of arbitrary or unjustified discrimination against persons of the other parties or as a disguised restriction on trade in goods, trade in services and investment, nothing in this agreement shall preclude the adoption by New Zealand of measures it deems necessary to accord more favourable treatment to Maori in respect of matters covered by this agreement, including in fulfilment of its obligations under the Treaty of Waitangi”.

This is pretty much the same clause that has been included in all free trade agreements (FTAs) New Zealand has negotiated since 2001. It has stood the test of time. It has allowed multiple Treaty settlements to be completed and has not had (as some critics claim will happen under TPP) “a chilling effect” on Government’s ability to adopt policies more favourable to Maori than other New Zealanders or nationals of these FTA partners.

TPP’s protection of the Treaty goes even further than earlier FTAs. It states “the parties agree that the interpretation of the Treaty of Waitangi, including as to the nature of the rights and obligations arising under it, shall not be subject to the dispute settlement provisions of this agreement.” This means it is entirely up to New Zealand to determine if any discrimination has occurred because of the treaty (so long as this is not a disguised restriction on trade).

I am frankly amazed the US and others have agreed to this provision. Our ministers and officials have done a great job achieving this. All Maori should be saying: “Well done!” . . 

He also posts on Facebook:

TPP contains two types of dispute settlement. In the media and political criticism the two are often confused. There is the standard (in WTO and all our FTAs apart from CER – the reason why apples took so long to resolve)provisions which allow parties to the agreement to challenge breaches of the agreement. This is a purely government to government process and applies to the full agreement unless specified (e.g. interpretation of the Treaty of Waitingi the dispute settlement provisions do not apply). Then, in the investment chapter only, there is the investor state dispute settlement mechanism. This allows a company to challenge a government if it believes that government has breached its commitments in the investment chapter only. Many of the critics (who should know better) suggest that governments can be sued for breaches of outside of the investment provisions. This is not possible.

It is important to stress that TPP is worded differently to NAFTA and the Australian investment treaties that were used to challenge plain packaging of cigarettes. The critics often cite these agreements as examples of why we should fear ISDS without noting the fact that TPP has been drafted with the sloppy drafting in earlier agreements in mind.

New Zealand has been agreeing (indeed advocating for ) ISDS provisions in investment treaties and FTAs since the late 1980s (see for example the original China NZ Investment protection agreement). To date the NZ Government has yet to face a challenge.

Put simply I believe these provisions provide useful security for NZ investors offshore. Some of the governments we trade with and have FTAs or investment treaties are far more likely to breach these agreements than we are.

There are multiple exclusions (e.g. our Overseas Investment laws) and multiple acceptances of our right to regulate to protect the environment, to protect human health and safety, to discriminate for Maori under the Treaty of Waitangi etc to ensure that TPP will not have the type of chilling effect on policy making that the critics maintain. And, on top of the above protections, tobacco is completely carved out of the agreement so no worries there.

But is you want to nationalise huge hunks of the economy without compensation – you do have a problem. As you would if you tried to use human health as a justification for a policy if there was no science to justify the policy. Until recently I did not think that future NZ Governments would act in this way. This is why I think we have nothing to fear and that these provisions can only benefit NZ.

Stephen Jacobi wrote an open letter to Labour leader Andrew Little. It’s worth reading in full, I have chosen the extract with most relevance to farming:

. . . I agree that the dairy aspects of TPP are not as good as they could have been and as we had hoped.  But they are in the view of the negotiators and the dairy industry the best that could have been achieved in the circumstances.  Dairy still benefits more than any other sector from tariff cuts in key markets and the establishment of new tariff quotas.  The meat deal – specifically beef to Japan – is a significant market opening about which the industry has welcomed. Without this we will not be able to compete with Australia which already has an FTA with Japan. To call the rest ‘not much’ is a serious under-estimation – tariff reductions and/or elimination for horticultural products including kiwifruit, wine, wood products and seafood cannot so easily be dismissed. Addressing tariff and non-tariff barriers for manufactured products like health technologies and agricultural equipment is also significant.  This will result in the creation of new markets as you suggest. . . 

Duncan Garner says the political consensus on free trade is over:

After decades of supporting free trade, Labour has chosen to veer left into the bosom of New Zealand First and the Greens and oppose the TPP. It’s short-sighted and totally hypocritical, in my view. It looks like the party has had its strings pulled by anti-TPP academic Jane Kelsey.

This is a serious and controversial departure for Labour, and it may yet hurt the party among middle New Zealand voters.

Do these politicians know that our bottled wine can be sold tariff-free in Canada, Japan and the US on day one of the TPP being implemented? Why would you oppose that after we as a country have fought for this for so long? Most fruit and other produce can be exported tariff-free too, as a result of the TPP.

I travelled the world with Labour and National Party ministers for years, watching them fight bloody hard for market access for our exporters. I have seen a block of New Zealand butter selling for $25 in Japan; the same with cheese. Some of these tariffs are so high our exporters are locked out.

I’ve also seen Phil Goff, Helen Clark, John Key, Mike Moore and Tim Groser invest thousands of hours over the years for this sort of deal. Rather than accuse them of selling out, I’d argue they’ve done a great job. . . 

The truth is Labour has taken a massive risk opposing the TPP. I sense the silent majority understands we have to be part of it, despite the noise from the usual suspects.

Labour is divided and bleeding over the TPP. More Labour MPs want to voice their opinions in support but they’ve been silenced.

Ms Clark, Mr Key, Mr Moore, Mr Groser and David Shearer aren’t idiots. They know New Zealand has no choice but to be on board. Foreign investment is crucial into New Zealand too.

My friend runs a hotel in rural Waikato. The Chinese bought it recently. They have invested thousands into doing it up; they employ 33 locals in and around Tirau and Rotorua. Without the Chinese owners it would have closed and 33 Kiwis would be out of work. We have no option but to be international traders. Without it we die, slowly.

I predict the sky won’t fall in. And exporters stand to make billions more in the years ahead.

We won’t get rich buying and selling to each other; we need barriers broken and global doors open.

That’s why we must continue to fight for international trade deals — knowing there will always be a boisterous but small mob who hate the idea, no matter what the facts. 

Brian Easton who is no apologist for the right, asks can we afford not to adopt the TPPA?

. . . While there has been much focus on the TPP deal, there has been hardly any mention of the WTO (World Trade Organisation) agreement in Nairobi which prohibits agricultural export subsidies. Some 30 years ago a trade negotiator commented to me that getting rid of this dumping might be the best single thing we could do for our exporters. Not only would it stop the undercutting of their markets but it would force domestic agricultural reform because the dumping nations could no longer export the surpluses arising from their subsidies. There is not a lot of this subsidising going on at the moment but without an agreement export subsidies are likely to come back – to New Zealand’s detriment.

What was not always mentioned was that the chair of the WTO agricultural committee which negotiated the deal was a New Zealand ambassador, who is the fifth New Zealand chair in succession. This not only reflects the excellence of our Geneva ambassadors and the priority we give to agriculture in the WTO, but that the powerful – most notably the US – trust New Zealand to do a good job. That trust arises from the way we behave in other trade negotiations, including the TPP. The implication is that if we defaulted on the TPPA we would damage that trust and our ability to function effectively in a wide range of other international negotiations we care about, including on climate change.

That puts us in an extremely invidious position over the TPPA. Sure, we could turn it down, losing both its benefits and its downsides. Were we to do so, however, we would compromise the trust our international activity depends upon, especially the possibility of other trade deals which would open up markets currently restricting our exports. . . 

. . . Japan and the US (indeed the whole of the North American bloc) are members of the TPP. We have been struggling for ages to get deals with these two but have been too low on their pecking order to be noticed. So you might think of the TPPA as a means of getting the deals.

That is a positive, but of course the deals have to be favourable to us. Many argue they are not although their vehemence is offset by those who argue the opposite. The truth is that there are positives and negatives and different people balance them differently. In my opinion it is not much use focussing on a subset of the outcomes and ignoring everything else. Deals are about giving and taking.

The logic in this column is that we now do not have much choice about the TPPA. The government is trapped into agreeing to it because rejecting it has implications for other trade deals and our wider international relations. That is probably what our MFAT officials are advising, although no doubt there are many diverse views in there, just as there were with Vietnam. Here is my best guess about what is likely to happen.

There is a signing of the agreement in Auckland this Thursday. The exercise is primarily ceremonial – agreeing to a common text and exhibiting solidarity. I suppose the protests outside are ceremonial and for solidarity too.

The twelve partners then go away and prepare for the implementation of the text. Some things can be done by regulation, some require a change in law. The degree to which each partner has to do this differs according to their constitutional arrangements. . . 

 

By now there are so many imponderables that there is insufficient room in a column to pursue them all in a balanced way. My guess is that, given the way we are trapped by the wider international issues, the cautious advice is to proceed on the path of implementing the legislation for the TPPA, making as much international progress elsewhere. We can then review whether we really want to go ahead with the implementation. Legislation can always be reversed, agreements abrogated, although if the government changes its mind it is better that some other partner pulls the plug. Much of what is due to happen will be less ceremonial than this Thursday.  

And Prime Minister John Key says:

. . . “Opponents claim we’re giving away our sovereignty and that’s completely wrong – the TPP has almost identical provisions to the China free-trade agreement.”

Mr Key said other countries would not be able to write New Zealand laws and the TPP didn’t increase the cost of pharmaceuticals.

“The TPP is our biggest free-trade deal, successive governments have worked to get free trade with countries like the United States, Japan and Canada for 25 years,” he said.

“It will create significant new trade and economic opportunities for New Zealand… it gives our exporters access to 800 million customers in 11 countries across Asia and the Pacific.”

And those new opportunities will create jobs here, increase our GDP and earn us the money we need to pay our way.

The deal isn’t perfect but it’s better than what we’ve got and a long way better than what we’d have if our competitors were in the warmth of the tent and we were left out in the cold.


Rural round-up

May 27, 2013

Go farming, young Kiwis – Bruce Wills:

What is your perception of a farm worker? The response from those who do not know much about farming is possibly that they are low-skilled, low-waged and over-worked.

Federated Farmers, with Rabobank, have produced an annual remuneration survey for a number of years with the most recent released last month. The positive thing about social media is that it is easy to catch out those ‘swinging the lead’. The downside is that it anyone with a keyboard can take aim and fire a salvo.

The response to our 2013 survey, aside from one colourful Facebook post, has been that it is on the money, if you excuse a poorly chosen pun.

We are coming out of the shadows on farm worker remuneration to counter the “response” we sometimes get. It also comes after seeing hundreds of Aucklanders queuing for seven jobs at a factory to earn just over $15 an hour. . .

Integration lifts Maori farming:

A STRATEGY shift a few years ago to integrate the dairy and sheep and beef units with a flexible stocking policy provided a step change in performance for large-scale Maori-owned farm business, Te Uranga B2.

Now, its sheep and beef unit is one of three finalists in this year’s Ahuwhenua Trophy for excellence in Maori farming.

“The farming philosophy is around maximising pasture production, optimising feed conversion and then maximising productivity,” says Te Uranga B2 chairman Traci Houpapa. . .

Tech summit for primary industries:

For the first time in New Zealand, a mobile communications event is being run specifically for primary industries.

MobileTECH Summit 2013 runs in Wellington on August 7-8. A two-day programme bringing together this country’s leading communications specialists, technology providers and those working in the primary industries, has just been released. Details can be found on the event website, www.mobiletechevents.com. . .

Why export when you can milk it abroad? –  Simon Day:

Hundreds of plump cows line their concrete stalls like rows of dominoes at Fonterra’s Yutian 2 farm, 120 kilometres east of Beijing.

The cows push their heads through the steel bars of their confinements to eat imported alfalfa feed off the floor. Fans line the roof of the long barns, cooling the herd on a hot China day.

There is no grass in sight.

These are Kiwi cows, shipped to China or bred locally from New Zealand genetics. But this looks nothing like New Zealand farming. . .

Too late to avoid ‘dirty dairying’ taint – Aaron Leaman:

The directors of a Mangakino farming company fined $30,000 for breaches of the Resource Management Act have expressed their “shame” at being labelled dirty dairy farmers.

Fernaig Farms Ltd, owner of a 210-hectare block in McDonald Rd, Mangakino, was this week fined $30,037 and ordered to pay $132 costs after pleading guilty to two charges of unlawfully discharging animal effluent to land.

The prosecution, brought by Waikato Regional Council, related to offending on February 23 last year in which effluent was discharged from a holding pond and from an irrigator.

Council staff visited the property after an aerial flyover of dairy farms in the region. . .

Exploring alternatives to quad bikes –  James Houghton:

There has been a huge amount of discussion around quad bikes again, after LandCorp announced they are not using them on their new North Island farms and will be moving away from them on all other operations. Certainly, having 20 accidents involving their staff and quad bikes since December is a sobering statistic. Perhaps for large corporate farmers, with huge numbers of staff to think about, looking at other options is a sensible solution.

Just because LandCorp does something it doesn’t mean all farmers have to follow suit, but it is good to follow the discussion and know what the options are. Many farmers seem to be moving towards the “side by side” or farm utility vehicle options for getting about on their farms because they allow for passengers, carrying loads and do not require a helmet.

Within this category there are again many options. It is about looking at the needs you have on your farm, selecting the best tool for the job and making sure everyone using them is trained to operate that tool safely. . .


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