Rural round-up

May 22, 2017

Rain severely cuts crop planting – Annette Scott:

Waterlogged South Canterbury farmland will lie idle over winter as farmers wait for spring opportunities to plant crops.

Twice the normal rainfall in March followed by four times the normal rainfall in April left farmers battling with sodden ground and unable to meet autumn planting commitments.

South Canterbury Federated Farmers arable industry chairman Michael Porter said to date only about 50% of farmers had managed to get the crops they planned into the ground. . . 

Report shows plenty to work on – Hugh Stringleman:

Lack of progress on mitigating nitrogen losses from dairy farms was evident in an otherwise mainly positive scorecard for the Sustainable Dairying: Water Accord (SD:WA) in year three.

The national average nitrogen leaching loss in 2015-16 was 39kg/ha a year — the same as the year before.

N-loss calculations in Canterbury and Otago (64 and 39 respectively) revealed higher figures than the rolling average of the two previous years of accord measurements (50 and 33).

This was because irrigation effects were included for the first time after a change in the Overseer computer model used to generate the leaching loss numbers. . . 

Dairy farm water report factual, independently audited:

Kiwis can be confident that dairy farmers are ‘walking their environmental talk’, says the chair of the Dairy Environment Leaders’ Group, Alister Body.

Commenting on the latest Sustainable Dairying: Water Accord report, Mr Body says the work being carried out by farmers to help achieve swimmable rural waterways is each year independently audited by Telarc SAI.

The Crown Entity subsidiary is the leading certifier of quality, environmental, food, and occupational health and safety management systems. . . 

Fairton closure unfortunate but inevitable – Allan Barber:

Silver Fern Farms decision to close its Fairton plant did not have much to do with Shanghai Maling’s investment, but was only a matter of time. Even the workforce had apparently come to accept the inevitable after seeing lamb numbers through the plant decline sharply from more than 1 million in 2010 to less than 500,000 last season and 325,000 in the latest six months.

This demonstrated graphically the unsustainability of keeping the facility open when the company’s modernised multi species operation at Pareora is only an hour down the road. In its notice of proposal to close, subject to a two week consultation period, SFF cited declining sheep numbers in the surrounding catchment area as a result of land use change to more profitable forms of agriculture. However not surprisingly the company didn’t mention its substantial loss of market share at the same time, 14% share loss over a six year spell since 2010. . . 

North Canterbury cattle stud makes it through drought and out the other side – Pat Deavoll:

Three years of drought and an earthquake that destroyed three farm buildings and badly damaged another has failed to deter Kaiwara Angus Stud of Culverden, in north Canterbury, from preparing for its annual bull sale in a month’s time.

Stud owner George Johns is in the process of producing the catalogue. “You think you have taken great photos through the year, but where are they when you need them,” he says with a laugh.

The stud was formed in 1971 by George’s father Bruce Johns. At the time the family farmed a property in Waiau but moved to Culverden and Kaiwara Farm 25 years ago. . . 

Trans-Pacific Partnership (TPP) Agreement Ministerial Statement:

Ministers and Vice Ministers from Australia, Brunei Darussalam, Canada, Chile, Japan, Mexico, New Zealand, Malaysia, Peru, Singapore and Viet Nam met today to discuss the Trans-Pacific Partnership (TPP) in the margins of the Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade.

The Ministers reaffirmed the balanced outcome and the strategic and economic significance of the TPP highlighting its principles and high standards as a way to promote regional economic integration, contribute positively to the economic growth prospects of its member countries, and create new opportunities for workers, families, farmers, businesses and consumers. . . 

Get to the heart of decision making:

Heartland Bank and NZX subsidiary AgriHQ have launched a free online livestock finisher tool, AgriHQ Finisher, to assist sheep and beef farmers to calculate the potential trading margin after finishing any livestock they are considering buying.

Heartland Bank’s head of rural, Ben Russell, said the old adage “information is power” is particularly true in this instance.

“With store livestock prices at historically high levels, the arrival of AgriHQ Finisher couldn’t be better timed. . . 

The strange sheep that baffled scientists – Eloise Gibson:

When a farmer in Otago, New Zealand, saw a bizarre-looking lamb in his flock, he first assumed a wild goat had snuck in and impregnated one of his ewes. The newborn had a lamb-shaped body yet was coated with straight, lustrous wool, more like the hair of an angora goat than a typical sheep.

News of the “geep” (or sheep-goat hybrid) soon reached the local papers but, when scientists saw photos, they immediately suspected the baby animal was something else. For decades they had been hoping to study a rare woolly mutant called a “Felting Lustre” mutant: a sheep which has straight, fine wool instead of the usual crimped stuff.

“You can see it when the lambs are born, they have a different sheen,” says Jeff Plowman, a wool researcher at New Zealand’s AgResearch science company. “It doesn’t have a dull look, it’s shiny and bright.”. . 

 


Rural round-up

May 18, 2016

NZ primary sector needs story to sell globally, trade envoy Petersen says – Fiona Rotherham:

(BusinessDesk) – New Zealand needs to develop a new primary sector story to help sell its products to the world, says Mike Petersen, New Zealand’s special agricultural trade envoy.

Speaking at today’s Dairy NZ Farmer Forum at Mystery Creek, Petersen said he has been “banging on” about this idea for some years without getting much traction.

“We need a coherent New Zealand story and we need it desperately to take out into the world,” he said. “We are behind the game at pulling this together to make the most of our opportunities.” . . .

Monsanto’s pesticide ‘unlikely to cause cancer’ :

The weed-killing pesticide glyphosate, made by Monsanto and widely used in agriculture and by gardeners, probably does not cause cancer, according to a new safety review by United Nations health, agriculture and food experts.

In a statement likely to intensify a row over its potential health impact, experts from the UN’s Food and Agriculture Organization (FAO) and World Health Organization (WHO) said glyphosate is “unlikely to pose a carcinogenic risk to humans” exposed to it through food.

It is mostly used on crops.

Having reviewed the scientific evidence, the joint WHO/FAO committee also said glyphosate is unlikely to be genotoxic in humans. . . .

Why Many Midwestern Farmers Are Pro-TPP – Kristofor Husted:

Turn on the TV and you can barely escape the acronym TPP.

The Trans-Pacific Partnership is a free trade deal between the U.S. and 11 other countries that’s currently being negotiated. Presidential candidates on both sides of the aisle are deriding the TPP, saying it’s a bum deal that will hurt the U.S. economy and especially low-wage workers.

But if you venture into the Midwest and ask a farmer about the TPP, you’re likely to get a different answer.

“This pending TPP trade negotiation, to me, is hugely important for agricultural commodities, but specifically for beef,” says Mike John, a cattle rancher in Huntsville, Mo. He’s one of many Midwest farmers and ranchers who are bucking the political trend to dog the TPP. . .  (Hat tip: Kiwiblog)

Māori land report shows potential in Northland:

Māori land owners in Northland have promising options for developing their land, according to a report commissioned by the Ministry for Primary Industries, Te Rūnanga-Ā-Iwi-O-Ngāpuhi and the Far North District Council.

“The report shows that in a 50km radius around Kaikohe there are nearly 4000 small parcels of unproductive land that have the potential to be developed for uses like horticulture and agriculture,” says Primary Industries Minister Nathan Guy.

The report highlights two case studies focusing on horticulture and pastoral land use scenarios that show the potential for many parts of Northland. . . 

Summit to Consider Farming Within Environmental Limits:

The 2016 New Zealand Primary Industry Summit will once again provide farm and business leaders with the opportunity to consider sustainability and environmental issues.

This years programme includes sessions that will tackle the hottest topics in the industry including the TPPA, sustainability, smart branding and marketing, and foreign investment. A highlight for those interested in sustainability will be a session delivered on day two by Fish & Game New Zealand’s Environmental Manager Corina Jordan entitled ‘Farming within environmental limits.’ . . 

Fonterra NZ, Australia milk collection drops in season to date – Tina Morrison

(BusinessDesk) – Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices.

Milk collection across New Zealand fell 3.3 percent to 1.499 billion kilograms of milk solids in the season from June 1, 2015, through April 30, 2016, with all of the decline coming in the North Island while good weather conditions kept South Island production unchanged, Auckland-based Fonterra said in its Global Dairy Update. The 2015/16 season forecast has been revised to 1.558 billion kgMS, down 3 percent on the previous season, its said. . . 

Fonterra Confirms Early Final Dividend Payment:

Fonterra Co-operative Group Limited today confirmed it will pay part of its forecast final dividend earlier, to support farmers during a time of extremely tight on-farm cash flows.

Chairman John Wilson said a solid performance during the nine months to 30 April in the current financial year enables the Co-operative to declare the 10 cents per share dividend today. Payment will be made on 7 June, bringing dividend payments so far this year to 30 cents per share.

“While the milk supply and demand imbalance continues to impact global milk prices and our forecast Farmgate Milk Price, the business is delivering on strategy and has maintained the good performance levels seen in the first six months of the financial year. . . 

Drop in number of farms on the market:

Farm sale prices held steady in April, but the number of farms on the market is falling, says the Real Estate Institute.

New data showed there were 16 percent fewer sales for the three months ended April this year, than for the same three months last year.

But the median price per hectare for all farms sold in the three months to April was $30,000, up nearly 5 percent on the same period last year. . . 

 

image

Hat tip: Utopia

 


Rural round-up

April 3, 2016

Study shows agri-foods big benefit to economy:

A new study has found the New Zealand agri-food sector contributes around one fifth of the country’s GDP.

The study by the Agribusiness and Economics Research Unit at Lincoln University aimed to measure the sector’s economic impact and to analyse how the sector could continue to grow to support the well-being of New Zealanders.

One of the authors, Professor Caroline Saunders said the study had exploded a myth about agriculture’s contribution to the economy. . .

Rural women juggle work and home – Kate Taylor:

The first meeting of the day for three Hawke’s Bay agri-business women is with each other as they wait for the school bus. It must count as a business meeting… they share each other’s business cards.

There’s a twinkle in the eyes of Ravensdown agri-manager Caroline Kirk, Kells Wool buyer Maureen Chaffey and Lean Meats/Atkins Ranch livestock manager Karen Atkins as they joke about multitasking.

But there’s no joking when they talk about the support of their parents or in-laws and their other half to do what they do.

The trio live down a five kilometre no-exit road in the farming district of Raukawa, south west of Hastings.  Every morning at 7.45am they drive to the school bus corner then drive out to work. They laugh about covering all the bases with farmers with their fertiliser, wool and meat. . . 

Hurunui Water Project gets $520,000 boost:

Primary Industries Minister Nathan Guy has welcomed new funding of $520,000 for the Hurunui Water Project centred around Hawarden in North Canterbury.

“A reliable source of water in this very dry part of the country has major potential to increase production, grow exports and create jobs,” says Mr Guy.

The funding comes from the Ministry for Primary Industries’ Irrigation Acceleration Fund and will help refine the scheme layout and scope the comprehensive work programme. This will help them deliver on Stage 1 in which 10,000-15,000 hectares will be irrigated.

“Once complete the full scheme has the potential to irrigate 35,000 hectares of land. Around 70% of that land will be used for sheep and beef production, with the other 30% being for arable, dairy and other uses.” . . 

Fitch sees milk price recovery beyond 2016 – Fiona Rotherham:

Credit rating agency Fitch Ratings said continued growth in European milk production to ramp up exports will further delay a recovery in global milk prices until beyond the end of this year.

The supply growth has been compounded by weak demand, mainly due to subdued Chinese demand and a Russian embargo on major Western dairy exporters.

Average prices on the GlobalDairyTrade auction fell by around 38 percent in 2014/15 and around 20 percent in the 2015/16 season to mid-March. . . 

Top Dairy Operation Wins Supreme Title In 2016 Taranaki Ballance Farm Environment Awards:

A well-managed dairy and forestry farm owned by Parininihi ki Waitotara (PKW) is the Supreme winner of the 2016 Taranaki Ballance Farm Environment Awards.

The award was presented to PKW Farms LP, farm manager Matt Kelbrick and farm supervisor Roger Landers at a special Ballance Farm Environment Awards (BFEA) ceremony on March 31 (2016). The team behind PKW’s No.2 Farm in the Ohangai district also collected the Massey University Innovation Award and the WaterForce Integrated Management Award.

PKW is a Taranaki-based Maori Incorporation that owns 20,000ha of dairy land and a range of other business interests, including crayfishing, forestry and commercial property. . . 

Fish and seafood trade could double under TPP:

The benefits to New Zealand’s fishing and seafood industry will be very significant once all tariffs are eliminated under the Trans-Pacific Partnership (TPP).

Trade Minister Todd McClay told a Nelson Chamber of Commerce audience that the region, the home of Australasia’s largest fishing port, that he believes the agreement will enable the industry to double its exports to one billion dollars.

“Last year, we exported $581 million in fish and seafood into TPP countries. . .

Farmers Are Awesome's photo.


Rural round-up

April 1, 2016

Nutritional Sales Underpin Half Year Underlying Profit of $12.3 Million:

Synlait has reported an underlying net profit after tax (NPAT) of $12.3 million for the first half of the 2016 financial year (HY16).

In contrast to $0.4 million in HY15, this improved performance is primarily the result of increased nutritional sales in canned infant formula.

“We’re glad to deliver a solid result for the first half of FY16. Our significant investment in customer and product development, people, plant and operating systems in recent years is beginning to transform our earnings,” said Chairman Graeme Milne. . . 

European market conditions depress Westland’s payout prediction:

Global market conditions for dairy products point to at least two more seasons of low milk payouts in New Zealand, Westland Milk Products told shareholders today as the co-operative revised its predicted payout for the 2015-16 season to $3.90 – $4.00 per kilogramme of milk solids, down from last month’s prediction of $4.00 – $4.10.

Westland CEO Rod Quin said the major driver of the revised payout remains the global oversupply of milk, compounded by the ongoing high availability and aggressive approach by the European dairy market.

Quin and Westland Chair Matt O’Regan have recently returned from Europe where they met with customers, farmers, processors, traders and industry advocates. . . 

Fonterra makes best of a bad job – Allan Barber:

The PR spin has been pretty active signalling a much improved half yearly result which was duly delivered this morning. The company confirmed a 40 cent dividend for the full year with the interim dividend being paid next month as usual and the final dividend being paid in two tranches in May and August instead of October.

This improvement in cash flow will do something, but not a lot, to comfort farmers labouring under a debt burden. Unfortunately it will do absolutely nothing to support sharemilkers who will have to rely on their share of the milk payout. Predictions for the rest of 2016 are notable for their conservatism, probably in recognition of a disappointing track record when forecasting the extent of the current downturn. . . 

Fonterra’s six-month results – good news but some underlying issues – Keith Woodford:

As expected, Fonterra has announced a greatly enhanced six-month profit for the period ending 31 January 2016. The profit of $409 million (NPAT; i.e. net profit after finance costs and tax) is up 123% from the same period in the previous year.

The expected full year profit of 45-55c per share implies an annual profit of about $800 million compared to $506 million for the full year 2014/15.

These figures are all very much in line with expectations . The reason for this is that when milk prices to farmers are low, then Fonterra has low input costs. Accordingly, there is more scope for corporate profit. . . 

Keep sharing the load by talking about it:

No matter which branch of farming you are in, you will face tough times, says Nelson farmer and Horticulture NZ President Julian Raine. When that happens, don’t be too proud to ask for help.

Speaking to the Farming Show’s Jamie Mackay as part of the Getting Through Adversity radio series, Julian said that even with the best planning, erratic weather events can cause mayhem. Jamie suggested that growing fruit crops is arguably one of the riskiest pursuits in farming: “One adverse event at the wrong time and suddenly your whole crop is wiped out. If you are a sheep farmer, for example, you at least have lambing spread over three weeks, or if you are dairy your risk is spread over nine months of milking.” . . 

Meat exporters ready to reap benefits of TPP:

The Trans-Pacific Partnership (TPP) agreement eliminates all tariffs on beef into our biggest market, the United States, within five years of coming into force.

Trade Minister Todd McClay, speaking at the Canterbury Employers Chamber of Commerce this morning, says New Zealand exported meat products worth over $2.8 billion to TPP countries in 2015 and the gains once TPP comes into force will be significant.

“Our beef into Japan currently attracts a 38.5 per cent tariff. That has made it extraordinarily hard for our exporters to compete with other countries with lower tariffs. . . 

Ongoing market challenges weigh on New Zealand farmers, with confidence close to 10-year low:

The significant and persisting challenges in market conditions continue to weigh heavily on the nation’s farmers, with New Zealand’s rural confidence at the second lowest level recorded in the past 10 years, the latest Rabobank Rural Confidence Survey has shown.

Completed earlier this month, the survey found more than half of farmers surveyed (53 per cent) had a pessimistic outlook on the agricultural economy over the coming 12 months. This was significantly up from 30 per cent with that view in the previous survey, in late 2015. . . 

Dairy downturn: councils prepare to tighten belts:

Councils in rural areas might be forced to cut spending if the dairy downturn lasts for a long time, Local Government New Zealand head Lawrence Yule says.

A Westpac-McDermott Miller regional economic survey has shown big falls in confidence in major dairy areas including Waikato, Taranaki, and Southland.

Mr Yule said the businesses in many rural towns were already hunkering down as farmers tightened their spending, and that could spread. . .

NZX to teach farmers about new milk contract:

NZX expects to receive regulatory approval for the new fresh milk futures and options product within two weeks.

Chief executive Tim Bennett said there was a demand for the fresh milk contracts product after Fonterra scrapped its guaranteed milk price product for the upcoming season. . . 

NZ helping to restore Fiji’s dairy sector after Winston:

The New Zealand government says it will help restore Fiji’s dairy industry which is losing thousands of litres of milk and was devastated as a result of last month’s cyclone.

New Zealand announced additional aid to help Fiji’s recovery on Wednesday.

A lot of that money is going into the continuing infrastructure rebuild led by the New Zealand Defence Force. . . 

Helensville Farmers First To Claim Supreme Title In Auckland Ballance Farm Environment Awards:

“Environmental champions” Richard and Dianne Kidd are Supreme winners of the inaugural Auckland Ballance Farm Environment Awards.

At a special Ballance Farm Environment Awards (BFEA) ceremony on March 30 (2016), the Helensville couple was also presented with the Beef + Lamb New Zealand Livestock Award and the Farm Stewardship Award in partnership with QEII National Trust and New Zealand Farm Environment Trust.

BFEA judges described Whenuanui Farm, the Kidd family’s 376ha sheep, beef and forestry unit, as “a show piece farm on the edge of Auckland city”. . . .

From paddock to packet: The family behind NZ’s most successful independent chips – Ryan Bridge:

You’re about to meet a family of potato farmers who beat the odds to grow one of the country’s most successful independent chip businesses.

The Bowans are from Timaru and not only do they grow spuds, they transport them to their own factory and make the chips too.

Together they are Heartland Potato Chips.

It all started when Raymond Bowan decided to grow his own potatoes as a teenager. His son James Bowan has taken over running the family potato farm and unlike his old man, he doesn’t do it by hand anymore, there’s a flash piece of kit to help. . . 

Food development facility opportunity for creative entrepreneurs:

Those looking to be innovative with their food are wanted at the FoodSouth food development pilot plant on the Lincoln campus, but there are no Heston Blumenthal creations on the menu.

The final part of a national food innovation network, the facility provides three purpose-built independent food safe development spaces along with a variety of processing equipment — an extruder, ovens, dryers, enrober, mixers, and a mobile product development kitchen among them.

It enables businesses to develop product prototypes for market validation, trial new equipment, carry out scale-up trial work and sample manufacture in 20L to 200L batch sizes, conduct process development and improvement, and validate quality systems. . . 

It’s in the family for new A&P Association President:

Sheep and beef farmer Warrick James has been elected as President of the Canterbury Agricultural and Pastoral Association for 2016 at the Annual General Meeting at Riccarton Park Racecourse on 30 March.

Based in Central Canterbury near Glentunnel, Mr James was confirmed as President of the 154th Canterbury A&P Show in front of outgoing President Nicky Hutchinson and Association Members.

“It means a lot to be President of the Canterbury A&P Association. We host the largest and most prestigious Show in the country – it really is the pinnacle of the A&P movement. Having been involved from a young age with my family and seeing my own children take part over the years just makes this even more special.” . . .

Trio spread cheer on woolshed tour – Suzette Howe:

At a time when life’s a bit tough for rural communities, a trio of Kiwi performers are setting off on a woolshed tour to boost morale. 

They’re coming armed with their own stage curtain, a bar and plenty of laughs.

Over the next five weeks the talented ladies will transform more than 20 working wool sheds into live stages the length of the South Island.

They’re travelling by horse truck, carting hundreds of chairs, a bar, and full production set.

Farmer Georgie Harper says it’s hard to say no when the performance is brought to you. . . 

Itinerary and booking information at The Woolshed Tour.


No “only” about .9%

February 23, 2016

One criticism of the Trans Pacific Partnership is that it will add “only” .9% to New Zealand’s GDP.

Politik has the Ministry of Foreign Affairs and Trade’s response to  two economic studies quoted by Labour  using that figure to justify criticism of the deal.

MFAT Chief Negotiator David Walker says that 0.9% increase in baseline GDP in 2030 is equivalent to NZ$2.7 billion.

There is no “only” about $2.7 billion.


Joyce writes to TPP protesters

February 11, 2016

Minister of Economic Development Steven Joyce has penned an open letter to TPP protesters:

An open letter to all TPP protesters, 

Dear protesters,

I’ve been listening to you over the past few years, months and weeks. Last week I literally took it on the chin in defence of the TPP.

You have been accusing the Government of not opening up and giving information. So, I’d like to take the opportunity to set the record straight on a few matters. 

I would like to make the point that trade access is hugely important for a small country like New Zealand. Without fair and equal trade access we can’t sell as many of our goods and we get less for them. And that means fewer jobs.

In particular it’s about jobs in regional New Zealand and in our small farming communities like those in the Far North who are hugely dependent on whether our farmers and exporters can sell their goods. And that it’s really hard selling meat into Japan with a 38.5% tariff on what the locals charge.

Investor state dispute resolution is hugely more likely to help New Zealand than hinder it. We already have an independent justice system that protects the legitimate activities of all sorts of companies including large multi-national ones so nothing much really changes for us unless we start doing something like nationalising companies at a fraction of their value. However having an independent process might be helpful for our companies in countries where the court system is perhaps not quite as independent.

Some people who have been really loud in this debate just reject the whole concept of trade. People like Jane Kelsey would roll back the China FTA, the Korean one, the South East Asia one, any one of them. Because they just really don’t like trade for ideological reasons. I would point out, that without the China FTA we would have been a very quiet country after the GFC. A country that would be able to afford far fewer of the medicines that some are rightly concerned about access to.

There are others who say that they support free trade, but not this deal. They try to say that this one is worse and yet can’t point to why. It was negotiated by the same fine officials that negotiated all the other deals, contains very similar clauses, and the same trade-offs. You can’t help feeling that for those people this is about politics, not trade. Perhaps they are grumpy that their lot is not signing the deal.

There are those who say it sacrifices our sovereignty. Well, how can that be so? We have the sovereign right to withdraw from any trade agreement at any time. There is no one holding us to any of them. However there is a reason that we tend not to leave. We’d have to give up the benefits as well as the costs and so far the benefits have obviously outweighed any costs every time.

There are even those who say it’s anti-democratic; even though the current government was elected more than once on supporting the TPP, and the elected parliament has to approve the legislation. The next logical democratic test would be for the loud fence-sitters of the Labour Party to go to the next election promising to scrap the TPP, but I wouldn’t hold my breath for that one.

There are also those that are opposed to the TPP because people don’t know enough about it. What a pity then that those at Te Tii Marae didn’t take up the rare opportunity of hearing from and discussing the issue with the elected leader of our country.
I too would have been happy to have this discussion last week and indeed just had it at the Iwi Leaders meeting, before one person decided the answer was to throw her toy. 

The most important point I’d want to make is the reason behind why this government is doing signing this deal. Because every one of us cares about the future of this country. We want it to provide good jobs for our people, good security for our families, and a big enough national income that we can afford the best health care and the best education services. It is our sincere belief that this agreement will help us do that for New Zealanders.

I have been privileged to follow at close quarters the progress of this deal over many months. I think our negotiators have done a great job for New Zealand. We didn’t get everything we wanted, and nor do we ever. But the result of their work is that more Kiwis will have jobs and opportunities to bring up their families while living in this country. And that’s worth signing up for.

He also used the response to the Prime Ministers Statement to speak about the TPP:

The transcript is here:

Hon STEVEN JOYCE (Minister for Economic Development): Mr Deputy Speaker, firstly, may I say that I hope you had a good summer break. I hope it was relaxing. Mine was, thank you. I rode a horse, grew my vegetables, went to the Wairarapa and to the Hawke’s Bay and Coromandel. I went up north last week—pretty relaxing up there. I had a launch of the Tai Tokerau Northland Economic Action Plan. We had a visit from the occasional visitor to Northland, the current MP Mr Peters. I also had, it is fair to say, a reasonably well-reported experience with an unmanned aerial vehicle.

It was an interesting day indeed at Waitangi. I have been thinking about that day on the odd occasion since, and I have been thinking about the protesters. I have been thinking about them because they have had, obviously, a lot to say—and fair enough, too; it is the nature of protest. But a lot of what they have had to say has been very interesting. Primarily, they have accused this Government of not opening up and giving information.

I think the Trans-Pacific Partnership is very important. I think it is one of the political fault lines about whether we are going to be forward-looking as a country, embracing the opportunities that the world provides to us in an open, competitive environment that gives our exporters and farmers a chance to succeed; or take a backward-looking, defensive position, where the world is out to get us and we should just try to crouch down and hope the world goes away, which is what some of the other Opposition politicians promote.

So I would like to devote a small amount of time this afternoon to making a few points about trade and the Trans-Pacific Partnership. I would like to make the point that trade access is hugely important for a small country like New Zealand. It is not just important; it is hugely important. Without fair and equal trade access, we cannot sell as much of our goods, we get less for them, and that means fewer jobs and lower incomes.

In particular, it is about jobs in regional New Zealand, in our small farming communities like those in the far north that I visited last week, who are rightly looking for opportunities for their young people to be employed. It is about the people who know it is really hard selling meat into Japan with a 38.5 percent tariff over what the locals are able to sell it for. It is about the people who are trying to sell kiwifruit , or ice cream , into Trans-Pacific Partnership countries.

I heard the Leader of the Opposition pooh-poohing the dairy benefits of the Trans-Pacific Partnership today. Well, there is a small ice cream company on the Hauraki Plains , which has been started by international investors, that is providing jobs to those people who would appreciate the opportunity to sell ice cream into the US and Japan. I am told by the protesters about investor-State dispute resolutions. Well, that is hugely more likely to help New Zealand than hinder it. We already have an independent justice system that protects the legitimate activities of all sorts of companies, including large multinational ones, which, if they feel wronged, can go to court in this country.

Nothing will change for us, unless we start doing something like nationalising companies at, I do not know, 5 percent of their value—and then we would have other problems anyway. But the investor-State dispute settlement provides opportunities for New Zealand companies in countries where the court system is perhaps not quite as independent. Some people have been really loud in this debate, but reject the whole concept of trade. Why would you listen to Jane Kelsey if you are actually interested in trade? Give Jane her due: she hates trade agreements. She would roll back the China free-trade agreement, she would roll back the Korea free-trade agreement, she would roll back the South-east Asia free-trade agreement—any one of them—so why would you get advice from her? She is hardly likely to provide advice that is reasonable and balanced.

I would like to point out that without the China free-trade agreement we would have been a quiet country after the global financial crisis , a country that would be able to afford far fewer of the medicines that those protesters claim to be concerned about having access to. There are others who say that they support free trade, but not this deal. They try to say “This one is worse.”, but yet they cannot point to why it is worse. They keep talking about all sorts of things. It was negotiated by the same officials—including Tim Groser , who used to be an official—who negotiated all the other deals. It has similar trade-offs , similar clauses—and it is just not good enough, apparently. Perhaps they are grumpy that their lot did not sign the deal. I do not know. But that is a ridiculous way to approach the arrangement.

Then there are those who say it sacrifices our sovereignty. I had an experience, as we know, with somebody who said that—well, not quite in those words—last week. How can that be so? We have the sovereign right to withdraw from any trade deal at any time—any trade deal at any time. I understand that with the Trans-Pacific Partnership it is 6 months’ notice, then you are out. We never do withdraw, but why not? Because we would have to give up the benefits as well as the costs, and every single Government has said that the benefits are worth having, and they have not walked away.

Then there are those who even say it is anti-democratic, though the current Government has been elected—I do not know, once, twice, three times on the Trans-Pacific Partnership, and the elected Parliament has to approve the legislation. That is democracy. I have got an idea: if it is about democracy, why do the protesters not persuade the guy who is trying to sound like he agrees with them to actually go to the country in 2017 with a commitment to pull out of the Trans-Pacific Partnership, a commitment to leave the Trans-Pacific Partnership? He should stop waffling around, and wander out there and say: “I’m with you, protesters. I agree with you. I’ll pull New Zealand out of the Trans-Pacific Partnership.” Then we can have a further democratic test about the future of this legislation.

The most important point I want to make today is the reason why this Government is doing this, because everyone on this side of the House cares about the future of this country. We wanted to provide good jobs for our people, security for our families, and a big enough national income so that we can afford the best health care , the best education services, and so on, that my friend the toy-thrower was worried about.

It is our sincere belief that this agreement will help do this for this country; otherwise, we would not be here. So I say to Andrew Little : at least the protesters have the excuse that they maybe do not know all there is to know about the agreement, but if you have been in this House, if you have been in the debate, you should be prepared to stand up for your country. He can stand up either way. He can stand up in favour, or stand up against, but enough of this mealy-mouthed going out—he spent half his speech, half his speech, nearly, saying how much he hated the Trans-Pacific Partnership, but on the radio this morning he was saying that he would support it and would not withdraw from it.

Well, I say that if you really want to show any sort of leadership, then step up and say you will pull out, sunshine, because your rhetoric does not match what you are actually doing. You are playing politics with the future of New Zealanders. His colleagues know it, and it is not good enough.

This will be an important year for New Zealand. They all are, but this is an important one. In this year this Government, the John Key Government, will focus on building the opportunities for New Zealand, growing the skills, growing the innovation, building our infrastructure, improving our natural resources allocation, attracting investment in this country, and, most important , providing export access to our farmers and to our businesses to be able to sell overseas.

That is crucially important, so for any naysayer on the other side who has a speech-writer trying to write up stories about this Government having a vision, I say: look in the mirror, it is you who are playing politics and have no vision for this country. Thank you.


Foundation for sustainable social dividends

February 10, 2016

John Key's photo.

As a country, we will never get wealthy, build a strong and growing economy, and create jobs but selling to ourselves. Trade is our lifeblood. – Prime Minister John Key.

He is right about why we need trade.

But it’s not just that trade is the way we earn our way in the world, it’s what the money we earn enables us to do – get wealthier as a country so we build a strong and growing economy and create jobs.

Trade is the foundation from which we get sustainable social dividends.

And trade with fewer tariffs and quotas which we will get under the Trans pacific Partnerhsip (TPP) is better than what we have now.


Rural round-up

October 8, 2015

Key sectors welcome TPP – Colin Bettles:

SUGAR may have been served a bitter-sweet outcome in the final Trans-Pacific Partnership but other key Australian commodities like beef, grains, dairy and cotton have tasted some success.

The Cattle Council of Australia (CCA) said the TPP deal – signed overnight by Federal Trade Minister Andrew Robb – would provide significant increased market opportunities for Australian grassfed beef producers, when it comes into force.

Game changer for beef

CCA president Howard Smith said the agreement signifies a game changing opportunity for the Australian beef industry which sees a positive future fort itself, in export markets. . . 

Rolleston wants GM use debate – Richard Rennie:

Councils’ efforts to ban genetically modified crops have Federated Farmers banging up against public opinion in some rural districts.

But federation president Dr William Rolleston argues the move to ban GM crops threatens farmers’ ability to innovate and is a choice they might lose through misinformation and misunderstandings about what the science is really about.

The federation’s case against council bans on GM use got a severe bruising when they lost on appeal to the Environment Court earlier this year. . . 

Milk price expected to hit $3000/t this year – Jemma Brackebush:

Banks and analysts are predicting international dairy prices will continue to rise, and a lift in Fonterra’s forecast payout looks likely.

Prices in the global dairy trade auction rose for the fourth consecutive time on Tuesday night.

The price for the key commodity, whole milk powder, which underpins the price Fonterra pays its farmers, increased by 12.9 percent to $US2,824 a tonne. . . 

Record jail sentence for animal abuser Michael Whitelock:

A dairy worker has been handed what is believed to be New Zealand’s longest-ever prison sentence for animal cruelty, after cows were beaten, had their tails broken and were shot in the kneecaps on a farm he managed.

Michael James Whitelock was sentenced in the Greymouth District Court on Wednesday to four and a half years jail and banned from owning animals for 10 years.

He had earlier pleaded guilty to 12 charges, including ill treatment of animals, unlawful possession of firearms and attempting to pervert the course of justice. . . 

Farmer suicides up – Jemma Brackebush:

Figures from the Ministry of Justice show 27 men in farming communities committed suicide in the past year ended June.

The chief coroner Deborah Marshall released annual provisional suicide statistics on Tuesday, which showed 564 people died by suicide in the past year, up 35 on the previous year and the highest number since records began eight years ago.

Male suicides rose from 385 last year to 428, and female suicides dropped from 144 to 136. . . 

Banks fork out a total $25.5M over rural interest rate swaps – Fiona Rotherham:

(BusinessDesk) – The Commerce Commission has completed the distribution of $25.5 million to complainants and rural charities after reaching settlements with banks who had marketed interest rate swap products to farmers.

The commission says nearly $20 million in cash has been paid to eligible customers while $1.9 million was offset by the banks against debts some complainants owed to them. A further $2.5 million went to 14 regional Rural Support Trusts and the Dairy Women’s Network and the commission received $1 million to cover a portion of its investigation costs, including legal expenses. The bulk of the money came from the ANZ Bank New Zealand, which paid out $19.3 million in total, $3.2 million from ASB Bank and $3 million from Westpac Banking Corp. . . .

All Geared Up For The Glammies:

Entries are now open for the 2016 Golden Lamb Awards, aka the Glammies, which seeks out the tastiest and tender lamb in New Zealand.

The competition gives farmers the opportunity to enter their lamb into one of the most highly regarded competitions the industry has to offer.

The entries are then assessed by Carne Technologies in Cambridge for tenderness, yield, succulence and colour.

The scientific testing determines which top four entries from five categories will make it through to the final stage of the competition, a taste test, held at the Upper Clutha A&P show in Wanaka on 11 March 2016. . . 

New Zealand Bloodstock to Sponsor New Race in China:

New Zealand Bloodstock and the Inner Mongolia Rider Horse Industry Co. Ltd have partnered together to introduce the New Zealand Bloodstock Cup to be held in Inner Mongolia, China next year.

2015 RTR
The race is open to horses purchased by any Chinese buyer at this year’s New Zealand Bloodstock Ready to Run Sale in November. To be held in July 2016 at Korchin, Inner Mongolia, the New Zealand Bloodstock Cup is worth RMB500,000 and will be run over 1800m.

NZB’s Co-Managing Director Andrew Seabrook is excited about the formal partnership reached between NZB and Rider Horse Group. . . 

Serious savings from whole-farm soil testing:

Whole-farm soil testing saves Taranaki farmer Hayden Lawrence about $15,000 on fertiliser each year.

Hayden, who farms in equity partnership with his wife Alecia and parents in Taranaki, began whole-farm soil testing seven years ago. To date, he has reaped about $90,000 in savings and has increased pasture production from 14.5 tonnes per hectare to 18.6T/ha on the 97ha property.

The Lawrences milk a maximum of 240 cows on an 85ha milking platform, using their hill country block to graze heifers. They also follow an 18-month cropping rotation, that sees paddocks planted into silage, oats, chicory and then into pasture. . . .

RHĀNZ welcomes Government’s new rural connectivity target:

The Rural Health Alliance Aotearoa New Zealand welcomes the new rural connectivity target announced by the Government today.

The target means nearly all rural New Zealanders will be able to access broadband speeds of at least 50Mbps by 2025.

RHĀNZ Chairperson, Dr Jo Scott-Jones, says securing reliable and affordable telecommunications services is critical to the health and wellbeing of rural communities and is a top priority for all 40 RHĀNZ members.

“As part of our RBI phase 2 submission to Government earlier this year, we called for more ambitious targets for rural broadband speeds, so it is really pleasing to hear Minister Adams’s announcement today,” he says. . . 

Anglers urged to vote ‘in best interests of our fishing and hunting resources’:

The country’s anglers and game bird hunters are being reminded to make sure they vote in the Fish and Game Council elections.

Fish & Game Communications Manager Don Rood says that because voting closes at 5pm on Friday (9 October), those who are eligible and haven’t voted are advised to do so online, rather put voting papers in the post.

“We urge licenceholders to take the time to vote – to exercise their right to choose the people who can best advance their local region’s hunting and fishing interests. . . 

Free entry for 2016 Games:

The second annual Hilux New Zealand Rural Games takes place in Queenstown next Waitangi weekend (Sat 6th – Sun 7th Feb) and entry won’t cost you a cent.

Two days of ‘sports that built the nation’ and live entertainment on the Recreation Ground plus the Running of the Wools – more than 400 merino sheep herding through downtown Queenstown – will be completely free to watch.

We’ve been able to waive ticket prices thanks to the generous support of our patrons and event partners including major sponsors Toyota, Fonterra, Line 7, Ngai Tahu Farming, Jetstar and Husqvarna which has increased its support from the inaugural Games.

The Running of the Wools is once again supported by our friends at clothing and gift retailer, Global Culture. . . 


Quote of the day

October 8, 2015

FTAs aren’t solely about tariff elimination. They are also about the ability to trade with as few impediments as possible. In this respect, TPP looks comprehensive at first glance, with the promise to breakdown compliance and non-tariff barriers across the Pacific Rim. These benefits are significant, especially for smaller economies and companies. . . .

Closer connectivity with the major players on the trade and investment scene adds another string to our bow. The likes of the United States, Japan and Canada have some of the highest incomes and thus purchasing power of all countries. New Zealand isn’t the lowest cost producer in many sectors anymore and needs access better market access to wealthy consumers to capture margin, and to deliver on the “value-add” strategies that many sectors are pursuing. . . 

There is a raft of empirical evidence suggests trade liberalisation benefits overall welfare and lifts nationwide GDP, particularly for open trade dependent economies like New Zealand. Studies by the Peterson Institute suggested that the gains to New Zealand from TPP would cumulate to around 2% of GDP by 2025. Some of the numbers being bandied around by Government officials look a little on the high side, but considering the surge in two-way trade between New Zealand and China following the signing of the FTA less than a decade ago it leaves little doubt as to benefits on overall trade (and GDP) from increasing trade liberalisation. . . ANZ

Hat tip: Kiwiblog


Rural round-up

August 24, 2015

Increased focus on rural depression:

Health Minister Jonathan Coleman and Primary Industries Minister Nathan Guy have today announced increased training for rural health professionals and community leaders to tackle depression in rural communities.

The commitment is the second part of the one-off $500,000 funding boost for mental health initiatives targeted at rural communities announced at Fieldays.

“Raising awareness of mental health issues in rural communities is important, but you also need the professional support with the right skills to help those who are at risk,” says Dr Coleman. . . 

TPP deal to free up world dairy trade would reduce volatility:

DairyNZ chairman John Luxton writes that major TPP players are holding their dairy consumers to ransom

The news that the Trans Pacific Partnership (TPP) deal has not been agreed because of differences over autos, dairy and intellectual property is no surprise to anyone.

Some of the major players have sought to maintain trade protection rather than to reduce it.

It seems incredible that the US dairy industry has so far convinced the US negotiators that they need to be protected from any increase in New Zealand dairy imports into the US. . . 

Back to basics – Annette Scott:

Dwindling demand from dairy has forced cropping farmers to readjust their businesses in a return to traditional practices and markets.

Dairy industry destocking would result in reduced demand for off-farm feed supplies and that would mean greater demand for store lambs, Federated Farmers arable industry chairman Guy Wigley said.

With tongue in cheek he suggested now could be a good time to buy sheep. . . 

Beef + Lamb New Zealand pleased with health and safety changes:

Beef + Lamb New Zealand says sheep and beef farmers will be pleased to hear that most farms are not going to be classed as high risk work places and won’t have to have a health and safety representative, following changes to the proposed Health and Safety Reform Bill.

Responding to suggestions that farmers are getting getting off lightly, Beef + Lamb New Zealand Chairman James Parsons said sheep and beef farms average fewer than two full time employees per farm.

“Can you imagine the farm manager and the shepherd standing on a hill and electing the health and safety representative? Not classifying farms as high risk doesn’t exempt farm businesses from any liability under the Health and Safety Reform Bill. But the amendment does recognise some basic practicalities of implementing the legislation on farms.” . . 

A2 Milk eyes infant formula for sales growth after ASX listing costs result in loss – Fiona Rotherham:

(BusinessDesk) – A2 Milk Co sees more upside for infant formula, which underpinned full-year sales growth for the specialty milk marketing company, although costs for a secondary listing on the ASX resulted in an annual loss. The shares dropped 9.1 percent.

The Auckland-based company reported a net loss of $2.09 million in the year ended June 30, compared to a profit of $10,000 a year earlier. That included a $1.68 million charge relating to its ASX listing. Revenue jumped 40 percent to $155 million and earnings before interest, tax, depreciation, amortisation and one-time costs rose 35 percent to $4.18 million, reflecting a record performance in Australia.

The shares sank 7 cents to 70 cents, the lowest level in a month. . .

Rural Infrastructure needs to be a priority:

The government appears to be on the same page as Federated Farmers, with their announcement of their 30 Year Infrastructure Plan today.

Anders Crofoot, Federated Farmers Infrastructure Spokesperson says “Rural infrastructure will need to be a priority in looking at addressing the inefficiencies in infrastructure investment and planning.”

Federated Farmers supports the intent to better understand where the critical demands are and to make better decisions from that knowledge, but remain wary of what that strategy means for rural communities. . .

Water New Zealand welcomes Government’s 30 year infrastructure plan:

Water New Zealand welcomes the Government’s initiatives for better developing and maintaining New Zealand’s 3 waters infrastructure announced today as part of the 30 Year Infrastructure Plan 2015.

Water New Zealand is a strategic partner of the Treasury’s National Infrastructure Unit which produced the report*.

“New Zealand’s urban centres are rapidly growing and it is very encouraging to see that Central Government is facing the infrastructure challenges head on with an increased focus on developing a better understanding of water related infrastructure assets,” said John Pfahlert, CEO of Water New Zealand. . .

Science turns to sheep for answers on human health –  Sarah Stewart:

If you’ve ever tried to lose a few kilos you probably know all about fat and carbs.

But did you know you can learn a lesson or two from sheep?

A group of Kiwi scientists are finding they have much more to tell us about our health than we might think.

The saying ‘ you are what you eat’ has been around for years.

But there may in fact be a chance your health is actually determined by what your parents or even grandparents ate.

There is also a chance what you eat could affect what illnesses your kids get. . . 

Collaboration Key for Canterbury Dry Land Farmers:

In the last couple of months over 250 farmers and their advisors have attended a range of workshops, field events and presentations across four sub-catchments in the Hurunui Waiau Zone – which fits within the area of the Canterbury Water Management Strategy.

The workshops included initial work around developing, designing and forming a ‘Collective’ for dry land farmers, linked to the Beef+Lamb NZ Farm Environment Plan and broader environmental programmes. Under the Hurunui Waiau River Regional plan, ‘for farmers to continue to farm without a consent from 1 January 2017,’ they will be required to be a member of a Collective or Irrigation Scheme. In addition, the Collective will need to develop an approved Environmental Management Strategy. . . 


Quote of the day

August 19, 2015

“I am very disappointed the Labour Party has turned TPP into a political platform and broken what appeared to be a very constructive and bi-partisan position on trade,” he says. “However, I would like to think that when the deal is concluded and proceeds through the ratification process, this position will be reversed. There are enough rational thinkers on trade in the Labour Party to enable this to happen.”

Petersen also dismisses critics’ claims that NZ’s negotiators will sell off the country’s sovereignty in an effort to sign up to the TPP.

“I am close to the negotiations – without being directly involved – and I assure you our negotiators are not going to sell NZ’s sovereignty,” he said. “I would urge [the critics] to wait until the final deal is agreed before passing judgement on these aspects and I believe that when the deal is completed the NZ public will be surprised at how good it is and how ridiculous some of the claims have been.”Mike Petersen


Rural round-up

August 17, 2015

More women working NZ farms – Suzette Howe:

New Zealand is seeing a rise in the number of women working in farming. For years farming has been mainly viewed as a man’s world, but the tide is turning.

Nestled away on a north Canterbury farm, Louisa McClintock is not your average teenage girl. At just 17 she’s fallen in love with farming. She has quit school and is taking up the reins of her granddad’s farm.

“Everyone thought I was going to stay at school till year 13 and do the whole nine yards and go to uni, but I don’t think there’s anything I’d rather be doing; farming is it,” she says. . . 

Getting through the tough times – Andrew Hoggard:

We at least now know where we are with the much anticipated Fonterra forecast payment.  A price of $3.85 per kilo of milk solids is a real shocker.  There’s not going to be many farmers making anything on that payout.

That said, what can realistically be done about helping farmers through the tough times ahead for at least the next few months?

First, there is the no brainer stuff.  Talk to the bank manager.  Talk to advisers.  Put a bit more effort into communication with the family – they will be feeling the pressure as well.  . . 

Water Proposals jeopardise Southland’s farming future

Federated Farmers Southland strongly opposes Environment Southland’s draft ‘Water and Land Plan and are planning meetings to discuss the rural community’s concerns.

President of Federated Farmers Southland, Allan Baird, says “In its current form, the cost to Southland farmers will be crippling and there will be large flow on affects for the wider Southland economy.”

“As proposed, this Plan would severely limit or prohibit development, flexibility, and innovation for farming businesses, which will have huge consequences for Southland’s economy.”

“Farmers want good water quality just like every other Southlander; by progressing the current outcomes based approach that focuses our resources on the priority hot spots. This is consistent with what the Parliamentary Commissioner for the Environment is encouraging in her recent report, but we can’t do that without the flexibility to adapt to the environment and regulatory changes.”    . . .

NZ and Australia likely to trigger milk quota – Allan Barber:

For the first time since 2004 New Zealand and Australian beef exporters look almost certain to run out of US beef quota before the end of the year. High kills in both countries have seen an excess of beef being processed, well ahead of the normal annual production trend.

New Zealand’s annual quota allows shipments of 213,402 tonnes, much of it manufacturing beef for the fast food industry, but also higher value prime beef cuts in the pre Christmas period. If the quota runs out, these cuts will be at risk. The excess production this year is a direct result of the high cow cull because of the downturn in dairy prices. One processor told me the present slaughter rate was four times the normal amount. . . 

Reducing waste to feed the world:

A 2013 Asia-Pacific Economic Cooperation (APEC) agreement to reduce food waste by 10 percent across the region is picking up pace as researchers and technical team members work towards their 2017 goal of developing effective strategies and actions to address urgent global food waste issues.

A third of the edible parts of food produced for human consumption is lost or wasted. That translates into about 1.3 billion ton per year. Lincoln University Associate Professor James Morton says reducing food waste is the logical first step in meeting the needs of a growing world population, which is predicted to reach nine billion by 2050. He recently attended the second of three APEC ‘Multi-Year Project’ meetings focused on addressing global food waste, where he spoke around the need to measure and reduce wastage in the livestock chain. . . 

TPP – it’s time for a breather – Keith Woodford:

The failure to reach closure at the recent TPP negotiations in Hawaii may be a blessing for New Zealand. It may give some time for our negotiators to reflect on what we hope to achieve and what we are prepared to concede.

Most farmers will be supporters of the TPP. They will be working on the apparently reasonable assumption that more free trade has to be good value. . .

Commission releases draft report on 2014/15 review of Fonterra’s base milk price calculation:

The Commerce Commission today released its draft report on Fonterra’s base milk price calculation for the 2014/15 dairy season. The base milk price is the price Fonterra pays to farmers for raw milk and is currently set by Fonterra at $4.40 per kilogram of milk solids for the 2014/15 season.

The Commission is required to review Fonterra’s calculation of the base milk price each year as part of the Dairy Industry Restructuring Act’s (DIRA) milk price monitoring regime. The review assesses whether Fonterra’s approach delivers incentives for it to operate efficiently and provides for contestability in the market for purchasing farmers’ milk.

The Commission’s overall view is that Fonterra’s calculation of the 2014/15 base milk price is largely consistent with both the efficiency and contestability purposes of the DIRA. . . 

 


Improvement not perfection

August 4, 2015

In a perfect world all trade would be unhampered by subsidies, tariffs or other costly interventions in between willing buyers and willing sellers.

Those selling goods and services would have more potential customers and consumers would have a better range of quality and price from which to choose.

In this less than perfect world politics, bureaucracy, protectionism and other anti-competitive behaviour get in the way of markets.

Free trade deals are never perfect but they are worth pursuing if they provide sufficient improvements over all for the countries signing up to them.

The many hours and many more dollars spent on Trans Pacific Partnership negotiations aren’t aiming for perfection, but any deals reached will have to deliver significant improvements on existing restrictions and protections to make signing up worth while.

We have a much greater range of goods and services we can buy and sell, and at better prices, as a result of FTAs already established. The TPP could provide even more opportunities.

Our negotiators can’t hope for a perfect deal but they should continue to work towards improvements on what we have now with too many hurdles our businesses have to  leap for access to other Pacific markets.

 

 


Rural round-up

August 2, 2015

Groser disappointed TPP deal not reached:

Trade Minister Tim Groser is disappointed that the TPP negotiations were unable to reach a conclusion today, but TPP ministers collectively pledged to meet again as soon as possible to finalise the deal.

“Good progress was made this week, but a number of challenging issues remain, including intellectual property and market access for dairy products”, Mr Groser said.

“We will continue to work toward a successful conclusion. This is about getting the best possible deal for New Zealand, not a deal at any cost.” . . .

TPP pressure on Canada, but US is super-star in agriculture subsidies – Lawrence Herman:

Americans provide billions in protectionism to dairy that will have to be given up for trade deal.

We rail against Canada’s supply management system. Rightly so. It’s a Soviet-style regime that is out of step with Canada’s international trade interests and objectives. Every credible Canadian think-tank has said that supply management is a regressive system that distorts the market by guaranteeing dairy, poultry and egg producers a positive return on production, inhibiting competitiveness and, in the long-run, preventing Canada from becoming an exporting agriculture powerhouse. . .

 Groser proves trade credentials by insisting on a good deal:

The Dairy Companies Association of New Zealand (DCANZ) is commending New Zealand Trade Minister, Tim Groser, for standing firm against enormous pressure to concede to a sub-standard deal for dairy. The Minister and his team of expert negotiators have preserved the ability to conclude a good deal in the future.

“What was on the table fell well short of the deal required to deliver the commercially meaningful access that is needed by New Zealand’s dairy industry” says DCANZ Chairman Malcolm Bailey, who has been in Maui, Hawaii, where the negotiations took place over the past week.

Agreeing a bad deal would have consigned New Zealand farmers to many more years under the burden of heavy protectionism. Trade prohibitive tariff levels in Japan, Canada and the United States contribute to a thin global dairy market and exacerbate extreme price volatility. . .

 Concerns over strong El Niño:

NIWA fears this year’s El Nino may be as bad as 18 years ago, when widespread drought cost the country a billion dollars in lost exports.

International guidelines indicated a 97 percent chance of El Niño continuing over the next three months and a 90 per cent chance it will continue over summer.

El Niño typically sees the west of New Zealand wet, and the east very dry.

Niwa forecaster Chris Brandolino said it was looking like it could be as significant as the El Nino in the nineties. . .

Where every day is a good day – Kate Taylor:

Discussion groups, monitor farm programmes, running a Gisborne hill country station and his house burning down couldn’t prepare farmer Ken Shaw for being given a 15 per cent chance of surviving the cancer attacking his body. But survive he did.

“Every day’s a good day,” he says, driving his bike in driving, freezing cold rain on his Matawai farm the day before a big snow storm hits the region and dumps a metre of snow on tops of his hills.

Ken and Kirsty Shaw farm the 709ha hectare Elmore Station (680ha effective) on Rakauroa Road at Matawai near the highest point of the highway between Gisborne and Opotiki. . .

Cut unprofitable production – DairyNZ CEO:

With the continued decline in milk price, DairyNZ chief executive Tim Mackle is calling on farmers to cut unprofitable production from their systems.

“These are extraordinary times. Open Country Dairy’s milk price forecast is under $4 per kilogram of milksolids (kg MS) and all indicators show Fonterra will be forced to lower their forecast on August 7. This price dip is lower and longer than anything we’ve seen in the last decade,” says Tim.

“Assuming a milk price of $4.00 for the average Open Country Dairy supplier, that means a potential deficit of around $250,000 for the year ahead.” . . .

Rural Women as relevant today:

In 90 years, Rural Women New Zealand has grown to a 2700-strong organisation but many of the issues it works on have remained the same.

In July 1925, Florence Polson became the first head of the women’s division of the forerunner of Federated Farmers.

Women’s Division Farmers Union was driven by concerns about health and the effects of isolation for women living on farms. . .

 


Rural round-up

August 1, 2015

A Free Trade Deal must include Free Trade:

Federated Farmers says the Government must hold firm on a deal for agriculture at the Trans Pacific Partnership talks in Hawaii.

Federated Farmers’ Dairy Chair Andrew Hoggard is adamant that the reason for New Zealand being at the 12 nation talks is to establish free trade in the region, and a trade deal that doesn’t include meaningful access for dairy is not a free trade deal.

“Let’s be clear. Dairy is our largest export earner. It would be like the Japanese concluding a deal that didn’t have anything in it for automotive or technology trade.” . .

 

Like Uber but for dairy – Offsetting Behaviour:

There could be a lot of opportunities for Canadian dairy in opening up their markets to foreign competition, and in having foreign markets opened to their products. But there would be transitional costs.

The Globe and Mail reports on some relevant aspects here. But they miss the supply management angle. One important reason that Canadian dairy farmers oppose changes to the system is that they own a lot of quota rights. Under the Canadian system, the right to milk a cow costs money. And just like taxi permit owners in regulated markets hate Uber, Canadian dairy farmers hate New Zealand. But who can really blame them? If you were sitting on a big regulatory asset somebody proposed wiping out, wouldn’t you object?  . . .

Health and Safety — some way to go – Katie Milne:

The long awaited report back to the Select Committee on the Health and Safety Reform Bill has now occurred.

We don’t totally know what we are getting. The Labour Party will be opposing the legislation.  The Council of Trade Unions doesn’t like it. The Government has signalled a Supplementary Order Paper to amend the Bill before it goes through its final stages before becoming law and there are regulations to be drafted to sit under the eventual Act as well.

Besides this, WorkSafe New Zealand has considerable discretion how it implements the new Act and the interpretation courts put on the sections and regulations will keep a whole lot of lawyers busy for some years to come. . .

Farmers warned to prepare for more milk cuts:

National dairy industry body DairyNZ is warning farmers to prepare for further cuts to companies’ already low milk price forecasts.

It comes as ASB announced this morning it expects Fonterra to slash its forecast by $1 to $4.25 per kilo of milk solids when it reviews its payout next week.

However, the bank is predicting an end of season payout of $4.50. . .

T&G Global strengthens position as asparagus marketer –  Jonathan Underhill:

(BusinessDesk) – T&G Global, the fruit marketer controlled by Germany’s BayWa, has acquired assets from long-term Australian partner M&G Vizzarri, strengthening its position as a major asparagus trader.

T&G’s 50 percent-owned Australian subsidiary Delica will buy Vizzarri Farms, the asparagus marketer founded by Mario and Gina Vizzarri, from its Delica co-shareholder M&G Vizzarri. No price was disclosed.

The joint venture will be renamed T&G Vizzarri Farms and will become “one of the leading asparagus traders in the southern hemisphere,” T&G Global said in a statement. Targeted revenue from the enlarged business is about $40 million in its first year and more than 5,000 tonnes, it said. Currently Delica handles export sales for Vizzarri Farms, which owns 29 properties with a combined 1,900 acres. . .

Treble Cone’s Busiest Ever Start to a Snow Season:

The South Island’s largest ski area – Treble Cone (Wanaka, New Zealand) has enjoyed its busiest ever start to a snow season and has set new records for both its ‘busiest week overall’ and ‘busiest July ever’.

With fantastic pre-season and early season snowfalls the entire mountain including the Home and Saddle Basins, the right-of-passage Summit Slopes, the revered expert only Motatapu Chutes, and the Matukituki Basin were all open from Opening Day.

Over the first week of the New Zealand school holidays Treble Cone enjoyed its busiest ever week of skier visits, with all terrain open spreading guests across the entire mountain enjoying the cold dry snow.

 


Rural round-up

July 27, 2015

TPP must deliver, say beef producers:

Beef producers from five Trans-Pacific Partnership (TPP) member countries are calling for a high-quality market access deal on beef to be secured at the TPP ministerial meeting in Hawaii this month.

Negotiators and trade ministers from the 12 TPP countries will meet in Maui in late July, with the goal of reaching agreement on the outstanding issues across the TPP agenda.

The Five Nations Beef Alliance (FNBA)1 says it is vital that a comprehensive, trade liberalising deal be finalised. . .

North Canterbury farmers get reprieve on intensification limits – Tim Fulton:

Farmers dealing with drought in North Canterbury have been spared the “unintended consequations” of rules that could have stunted their recovery.

Environment Canterbury (ECan) will no longer apply its proposed “10 per cent rule” in the Hurunui catchment, meaning farmers will not be forced to get resource consent for normal farming practices, like re-stocking and applying fertilisers.

ECan will no longer consider some of these improvements a “land use” change triggering its so-called “10 per cent” limit. . .

Hawke’s Bay ‘Land Girl’ honoured:

Veterans’ Affairs Minister Craig Foss will today present a pin and certificate of appreciation to Hawke’s Bay ‘Land Girl’ Tiny (Helen) White.

During World War II, Mrs White and more than 4000 other New Zealand women volunteered for organisations such as the Women’s Land Service.

“These women, commonly referred to as Land Girls, took up the roles of the men sent overseas — they worked on farms and in other essential industries,” Mr Foss says. . .

From city to country to DWN coordinator:

It was the call of the land that saw Dairy Women’s Network’s newest staff member pack up her family from living the city life and head back to the family’s 830-cow dairy farm.

Melissa Sinton, who has just taken over the role of DWN regional convenor coordinator for the lower North Island, was working in pharmacy in Rotorua three years ago, when she was encouraged to come back to the family farm in Arohena, south east of Te Awamutu.

“As a mum of three young boys, it was an opportunity that was too good to pass up. Moving back to the farm was definitely something I did for myself, but more so for my family,” she said. . .

 

Hamilton Honey Scores Sweet Silver at National Awards:

Honey collected from hives at three popular Hamilton locations has claimed a silver medal at the recent National Beekeepers Association National Honey Competition.

Kirikiriroa Honey, produced by Waikato firm Sweetree, claimed second prize in the Beekeepers Special Reserve section of the awards, held in Taupo in June.

The awards’ Special Reserve Category included 12 entries. . .

 

Agcarm President Mark Christie to the 68th Agcarm Annual Conference

Like all well run organisations, Agcarm has a clear vision.

“To protect and enhance the health of crops and animals through innovation and responsible use of quality products.”

From this, our objectives focus on sustainable, science based innovation, where high quality products result in high quality produce for local and global consumption.

They also focus on the strong need for stewardship and responsible use, while ensuring user and environmental safety. . .

Cows master maze make mice, look like dimwits – Julie Power:

Everyone knows rats and mice can navigate mazes, but cows?

New research shows cows can be taught to follow sounds to find food in a maze. Some cows got a perfect score, when tested four times a day for four days straight. 

And confirming that some cows are smarter than others, heifer number two nailed it immediately from day one of testing, amazing researchers when she found the food in less than 20 seconds. . .


Trade works

July 1, 2015

Trade Minister Tim Groser’s speech on the future of global trade highlights the benefits of trade:

·         First, consider the evidence for developed countries. Of the 14 main OECD multi-country econometric studies undertaken since 2000, all 14 have concluded that trade plays an independent and positive role in raising incomes.

·         Second, the evidence for developing countries leads to exactly the same conclusion. Case studies reviewing the experience of the 12 most rapidly growing emerging economies over the past 60 years concluded that harnessing the power of the global economy was a central feature common to all and that there was what they called ‘overwhelming’ evidence that trade played an essential role in raising incomes. Sorry guys, the North Koreans got it wrong. The South Koreans got it right.

The final concluding comment of these international experts is dripping with irony. Normally, international officials don’t do irony; it takes extreme frustration to drive experts to use ironic humour. Listen to their words:

“Despite all the debate about whether openness [on trade] contributes to growth, if the issue were truly one warranting nothing but agnosticism, we should expect at least some of the estimates to be negative…The uniformly positive estimates suggest that the relevant terms of the debate by now should be about the size of the positive influence of openness on growth….rather than about whether increased levels of trade relative to GDP have a positive effect on productivity and growth”. . .

I can of course understand vested interests who oppose trade agreements. If, say, your family owns an inefficient sugar processing plant in the wrong part of the United States and which survives only because of sugar subsidies and high protection, I get it. What you need is a long time to adjust to competition, sweetened by a good dose of adjustment assistance. You may even surprise yourself by what you can do to improve your competitive position over a long period of time – I could take you to dozens of examples in this country of industries and companies which vigorously contest our first liberalisation moves in the1980s, staring with the NZ wine industry which used to be deeply protectionist and for understandable reasons. But I am zeroing-in here on the anti-trade, anti-globalisation ideologues who are present around the globe. Even in Germany, a post-war bastion of the open trading system, they have become quite recently a growing element of the political debate on trade. This will complicate the TTIP negotiation.

Here in New Zealand we have anti-trade activists who are relentlessly consistent: they have never supported a single Trade Agreement and they never will. They are politically irrelevant to my political party. However, they get an enormous amount of airplay and are not politically irrelevant to other important elements in our democracy. For reasons I explained earlier, I believe broad bipartisan support for open trade strategies is vital to avoid your country being marginalised.

There is no point in asking them to explain how on earth New Zealand could have survived, let alone prospered, without CER, without the Uruguay Round, the China FTA, the network of FTAs that New Zealand has with ASEAN countries – they opposed even the Singapore/NZ FTA, the first building block of the DNA of TPP. To paraphrase a well-known quote of our Prime Minister, are we meant to earn our living just be selling to ourselves?

There is no point in asking them to explain this, because this is not an evidence-based fight. This is about ideology and the role of markets. On a purely personal note, and going back to my political past in the late 1960s and on which I will not elaborate, I understand exactly how and why these people think like this. I recall wistfully an old political doctrinal statement ‘The final battle will be between the socialists and the ex-socialists’.

If it were just these anti-trade activists, they could be safely ignored by everyone. But their modus operandi is to give currency to concerns about policies that middle New Zealand, which is anything but ideological, cares about – and then to exaggerate those concerns out of the park.

Happily, those concerns of middle New Zealand are widely shared starting with me, my colleagues in Cabinet and Caucus and the Kiwi voters who elected us. And as I survey the likely landing zone for these issues, I am extremely confident that our negotiators, who are world class, have done an excellent job. We shall be able to defend our position.

He counters some of the scaremongering from opponents of the TPP:

So, to put it bluntly, we are not going to sign up to poorly constructed ISDS provisions that ‘transfer control of the country’s sovereignty’ to foreign corporations. We are not going to sign up to agreements that undermine a central pillar of our Public Health system – the pharmaceutical purchasing agency called Pharmac, which is used to keep the cost of medicines very affordable for middle New Zealand. We are not going to sign up to agreements that stop this or future Governments putting well-designed environmental protections in place. We are not going to sign up to provisions on ISPs that make every mother in Lower Hutt worry that the TPP electronic police are going to fly in from Houston to cart their 16 year old son off to jail for file-sharing with his girlfriend.

If and when we get TPP in place, extreme claims that the sky is going to fall in will be made, irrespective of a balanced and sober reading of the final agreed TPP texts. It will be ground hog day for Chicken Licken. I recall, for example, at the end of the Uruguay Round where I was our chief negotiator, absurd claims that the Uruguay Round TRIPs agreement would ‘destroy the Maori economy’, in spite of the fact that the vast bulk of Maori assets, today valued at $40 billion, are in the export sector with much to gain from the Uruguay Round.

That exciting new dairy export company near Taupo called Miraka, the Maori name for milk, that combines significant Maori business assets, locally available renewable geothermal energy and overseas capital invested in it, simply would not exist without the Uruguay Round export subsidy disciplines that allowed our dairy industry to grow against grossly unfair competition, along with the more recent FTAs that created markets and created the interest of Asian investors in investing in New Zealand’s future alongside our own people. . .

He is aiming to get the political deal done by the end of this month:

The deal is ripe for the picking politically, which does not mean it will be easy to reach up and pick nice ripe fruit without damage. I have been deeply involved in the endgame of some pretty significant international negotiations over the last few decades and sometimes it isn’t very pretty. If I told true stories of what I have seen – right up to and including fist fights and negotiators sobbing over the phone, I really don’t think people would believe me.

So please remember this: nothing is ‘too big to fail’. Nor can I be 100% sure that all twelve countries will arrive on the right page at the same time. The one thing I can say with near certainty is that in the course of the endgame, something will come out of left field that we knew about but which no-one had seen before as a deal-breaker.  . .

But I think we will get there – metaphorically, I have called it in some interviews a 7/10 probability. It is not going to be a perfect deal – there never will be a perfect deal because compromises are now required. From a New Zealand point of view, the assessment my team of negotiators, led by Dr David Walker, and I have made and conveyed to other Ministers including the Prime Minister is that there is potentially a landing zone for a good deal that will indeed shape the future of trade and investment integration in the Asia Pacific region and quite decisively.

I would be much more positive in public than this, but for the current lack of clarity on a possible landing zone for our most important export – dairy. It is not that there is nothing on the table on dairy. Nor, let me assure the deep pessimists, do I believe there is any possibility of dairy simply being ‘excluded’ simply because it is too sensitive. That of course would take New Zealand right out of TPP. The issue for us is the quality of the deal on dairy and it is nowhere near there yet.

That will change because it has to change. People have not been putting their real cards on the table until they knew they had to. And until we heard from the US Congress, they were never going to do that. It is going to be an interesting few weeks.

Ladies and gentlemen, if the negotiators representing the 12 countries involved in TPP – almost 40% of global GDP – can pull this together, it will indeed be a big deal. Andrew Robb, my Australian counterpart, calls this ‘the biggest trade deal since the Uruguay Round’. I think he is right. And if we can do it, the TPP bus will not stop finally at the Tokyo station – Japan being among the last TPP entrants. TPP will indeed shape the future integration of the region and possibly strategic thinking elsewhere.

The future for New Zealand is not to shut up shop, to be fearful of foreigners, foreign investment, even targeted migration and suspicious of all Trade Agreements – my word, it must be so depressing to be part of the anti-trade movement. We need to engage with the world. We should back ourselves. We have every reason to be optimistic about our place in the world in the first quarter of the 21st Century. Concluding a high quality TPP Agreement is part of that future.

I am old enough to remember the past when New Zealand businesses were highly subsidised, when the power and money was in the hands of the few who had import licences, when we all paid dearly through higher prices and higher taxes for inferior local goods than higher quality and lower priced alternatives from overseas.

Those who oppose free trade would have us go back to that.

Free trade is fair trade which benefits the buyer and the seller.

As a very small country needing to sell what we produce to people in other countries in order to afford what we can’t produce ourselves, we need free trade and the TPP is an important part of freer trade.

 


Rural round-up

June 29, 2015

Snow does little to blunt Hurunui drought – Tim Cronshaw:

Melting snow has combined with the first decent rainfall in six months to provide some relief for dry Hurunui but it would be a stretch to call it a drought breaker.

Much of the snow over the last week has thawed and gone into soils to go some way to replenishing ground moisture that has taken a hammering in the district particularly extending from Hawarden to Cheviot.

The problem is that it’s arrived too late for farmers as winter pulls the plug on major grass or winter crop growth.

Snow, sleet and rain topped up gauges by 20mm to 50mm over Hurunui farmland in the first major rain of the year.

Federated Farmers North Canterbury Meat & Fibre chairman Dan Hodgen said the snow and rain event would be of little initial help for farmers. . .

US likely to force pace on TPP with fast track in place – Pattrick Smellie:

(BusinessDesk) – The United States is likely to try and force the pace of negotiations to conclude the Trans-Pacific Partnership in the next few weeks, following a vote in the US Senate last night that all but ensures President Barack Obama will gain so-called ‘fast track’ authority to complete the controversial agreement.

One more Senate vote is expected overnight tonight, New Zealand time, to confirm Trade Promotion Authority – an essential component to resuming the 12 nation talks that have been stalled for months while Obama cobbled together a coalition of Democrats and Republicans large enough to support the measure. . .

TPP does not add up for NZ without good dairy outcomes:

The Dairy Companies Association of New Zealand (DCANZ) is firm in its view that a good deal on dairy in TPP is necessary for any deal to stack up for New Zealand.

“The facts are that dairy accounts for 35% of NZ exports. You can’t even come close to achieving an acceptable deal for New Zealand without a good deal on dairy” says DCANZ Chairman Malcolm Bailey.

DCANZ which represents the common policy interests of 11 New Zealand dairy companies, accounting for 98% of milk processed is following the negotiations carefully. . .

 

Landcorp sees NZ dairy conversion rate slowing – Tina Morrison:

 (BusinessDesk) – Landcorp Farming, which has almost tripled its milk production over the past decade, expects the rate of dairy expansion will slow as environmental restrictions, and higher land and labour costs make it less viable.

Large tracts of flat land in New Zealand once used for sheep farming have been converted to dairy as farmers were lured by higher prices for dairy products while demand for sheepmeat and wool waned. The number of dairy cows has jumped to a record 6.7 million, while sheep numbers dropped below 30 million for the first time in more than 70 years, according to data published by Statistics New Zealand last month, covering the 2014 agricultural year. . .

2015 National Award Winners: Recipients of the Gordon Stephenson Trophy:

John and Catherine own 1240ha Highlands Station – a productive and well-maintained hill-country farm south of Rotorua. Sitting within the Lake Tarawera and Rotokakahi catchments, the farm’s distinctive contour was shaped by volcanic activity which flattened forests, carved out hill faces and left the area covered in Phosphate-rich mud.

John’s father Allen began developing Highlands Station in the early 1930s and award judges noted the Ford’s “strong family history of commitment to agriculture”.

Highlands Station has a “much loved feel” and its outstanding meat and wool production puts it among New Zealand’s leading sheep and beef farming operations. . .

 Appointments to Conservation Boards made:

Associate Conservation Minister Nicky Wagner today announced 41 appointments to the 14 Conservation Boards across New Zealand.
“I want to congratulate each of the community representatives who are being appointed in 2015, particularly the 14 who will serve for the first time. I would also like to thank the outgoing representatives for their contribution to conservation in their region,” Ms Wagner says.

“A third of Conservation Board positions were open for renewal this year. The diverse range of appointees will bring a wide array of knowledge and skills to conservation management in the communities they represent. . .

Nobody’s happy with manuka honey definitions: MPI – Suze Metherell:

 (BusinessDesk) – New Zealand’s lack of definition for what constitutes manuka honey has overseas regulators worried about forgeries, with China likely to introduce a certification scheme for the honey imports, the Ministry for Primary Industries is telling the country’s beekeepers.

There is no industry-wide consensus on exactly what constitutes manuka honey, with MPI working to come up with a formal definition and a method for identification. While it isn’t a food safety issue, MPI “takes concerns about the authenticity of New Zealand products very seriously and is acting to address these,” according to its website. . .


Rural round-up

June 23, 2015

Water presents high risk to agribusiness:

Whether it’s growing crops, generating electricity or entertaining tourists, water is a key ingredient for the success of the New Zealand economy, yet this also makes it a key risk.

PwC’s latest publication, Preserving water through collaboration that works, considers how New Zealand within a global context, has responded to water risks and the potential to improve water management in the future. New Zealand faces its own risks which differ from those in other parts of the world, and these risks, are increasing.

PwC Director and Local Government expert David Walker says, “A usable supply of water is fundamental to the New Zealand economy and permeates across all industries – and notably farming, forestry, electricity generation and public sectors. However continued effective water management is becoming more complex and costly. . .

ASB Farmshed Economics Report Cash is king for farmers

• Despite a better milk price forecast, farm cashflows will remain weak this season.

• But falling interest rates are putting cash back in farmers’ pockets.

• Meanwhile, the hot air has been let out of the NZ dollar.

Despite Fonterra’s better opening season milk price forecast, farm cashflows will still face pressure this season, according to the latest ASB Farmshed Economics Report. . .

 

TPP dairy deal ‘not at a level we would currently like’, says Key – Pattrick Smellie:

(BusinessDesk) – The Trans-Pacific Partnership trade pact does not yet include an acceptable deal on access for New Zealand’s most important exports, dairy products, with little more than a month to go before the controversial 12 nation trade deal could be concluded.

“I think the way I would describe it is there’s a deal. It’s probably not at the level that we would currently like,” said Prime Minister John Key at his post-Cabinet press conference in Wellington. He was referring to comments last week by Trade Minister Tim Groser that negotiations on dairy access to the heavily protected US, Canadian and Japanese markets had “barely started.” . . .

A2 shareholder Freedom Foods in consortium to take over milk marketer – Fiona Rotherham:

(BusinessDesk) – A2 Milk Co’s cornerstone shareholder, Freedom Foods Group, is part of a consortium with an international dairy group that’s eyeing a takeover of the dual-listed milk marketer.

Freedom Foods, which owns about 19 percent of A2 Milk with a related entity, is mulling a takeover of A2 Milk, making an indicative non-binding and conditional expression of interest to buy the shares it doesn’t already own. A deal would be contingent on the consortium, which includes an “unnamed leading international liquid dairy milk company”, undertaking due diligence. It also has a restriction on A2 Milk changing the number of shares on issue, effectively scotching a planned equity raising. . .

LIC seeks $125M debt facilities this year, targets $140M equity over decade – Jonathan Underhill:

Livestock Improvement Corp, which aims to lift annual revenue to $1 billion by 2025, says it plans to establish $125 million of debt facilities this year and is likely to require $140 million in equity capital over the next 10 years to meet its growth goals.

Details of its capital requirements are included in a presentation the bull semen and dairy genetics database manager is taking around the country to explain to its shareholders how its changing focus, with increased capital spending and new product development, is changing its financial profile. Previously it has only required seasonal debt funding, typically for three months, the presentation shows. .

Upper South Island Butchers Battle It Out:

The best young butchers in the Upper South Island have been announced following the Alto Young Butcher and Competenz Butcher Apprentice of the Year regional final on Saturday.

Rowan Lee from Peter Timbs in Bishopdale was the winner of the Alto Young Butcher category, while Matthew Clemens from New World Ilam topped the Competenz Butcher Apprentice category, both highly sought after titles. . .

 

Tractor and Machinery Association elects new President:

Mark Hamilton-Manns, New Zealand Sales Manager for John Deere, has been elected President of the Tractor and Machinery Association (TAMA).

Formerly Vice President of the organisation, he takes over from Ian Massicks, New Zealand Kubota Manager for CB Norwood Distributors, who had been President for six years.

Roger Nehoff, General Manager New Zealand Retail for Landpower New Zealand, was elected Vice-President. . .


Rural round-up

June 17, 2015

What to do when you have two farms and three sons – Kate Taylor:

After decades of hard work, 64-year-old David Humphries would have been debt-free on his two farms near Waipukurau by the end of next year. But he has three sons – all farmers. So he bought another farm.

It wasn’t a matter of three farms for three sons, but creating a business big enough and diverse enough to allow them all to do what they love and to make a living at it.

At 364 hectares, Glen Moraig was the original family farm with 324ha Awaraupo added later. Now 600ha Te Tui has been added to the business. It is on the same road, but 10km closer to Waipukurau. It is hoped the business will carry 11,000 stock units across the properties once development has been carried out on the new farm. . .

The Trans Pacific Partnership (TPP) gets caught on American rocks – Keith Woodford:

Last Friday (12 June) was a bad day for proponents of the twelve-country Trans Pacific Partnership. To the surprise of many, the American House of Representatives has thwarted, at least temporarily, President Obama’s request for fast-track authority. Without that authority, other countries will not put forward their bottom line positions.

The irony is that the House has in theory offered Obama exactly the fast-track authority that he needs. However, the differences between the House and Senate versions of legislation are such that in reality he has been defeated.

The importance of fast-track authority is that the American Congress would then only be able to accept or reject the TPP without amendment. Without that agreement, ratification becomes unmanageable. . .

Safe Relationship Seminars Applauded:

Rural Women New Zealand is partnering with the Sophie Elliott Foundation and the It’s Not Ok campaign to present a series of Safe Relationships seminars.

The purpose of the seminars is to increase awareness and education to stop domestic violence in rural communities. Lesley Elliott MNZM will be the guest speaker and the event will include discussion about what makes a safe relationship.

Lesley established the Sophie Elliott Foundation after the tragic death of her daughter, Sophie by her former boyfriend. Lesley says, “I applaud this initiative by Rural Women New Zealand and I am thrilled to have the opportunity to talk to rural groups. Domestic violence isn’t a problem just in towns and cities, every community and socio-economic group throughout the country is affected. . .

 

Consistency of New Zealand Lamb is Second to None:

Peter Gordon ONZM has been an ambassador chef for New Zealand lamb in the UK market since 1998. He credits the success of the 17-year partnership to the product itself.

“I fully and wholeheartedly believe in the product. I am not just doing this to earn a fee. I do it because I believe in New Zealand lamb. Without integrity, campaigns fall flat. I can easily demonstrate to the public the genuine enthusiasm I have in cooking it and showing others how to do so.

“As a chef, the quality of the produce I cook with is paramount. The consistency of New Zealand lamb is outstanding and second to none.” . .

 

NZ industry backs US meat labelling move:

The meat industry here is hoping the United States will dump its law requiring compulsory country of origin labelling for meat imports.

The House of Representatives has voted to repeal the law, in response to a World Trade Organisation (WTO) ruling that country of origin requirements for beef, chicken, pork and some other products discriminates against imports.

Canada and Mexico are proposing retaliatory trade penalties against the US after winning their WTO case.

The US Congress also needs to repeal the law for the compulsory labelling to be scrapped. . .

 Moocall now available in New Zealand & Australia:

 Moocall is expanding its international operations by making their calving sensor available for purchase in New Zealand & Australia. The devices will be on sale via au.moocall.com and also through some local distributers.

Moocall is a calving sensor, worn on a cows tail that measures over 600 data points a sec- ond to determine the onset of calving. The device then sends an SMS text alert to two mobile phones to ensure the cattle breeder can be on location when calving takes place.

Moocall was invented when Irish farmer Niall Austin, lost a calf and a cow due to an unexpected difficult calving. . .

Seeka’s commitment to innovation drives top avocado returns:

Seeka will harvest all of next season’s crop for its avocado growers using the new efficient blue plastic bins it has been introducing as part of its commitment to innovation, says Chief Executive Michael Franks.

Seeka currently has 6,000 of the bins in service and will be doubling the number this year. The Surestore bins were built by TCI New Zealand, with development and design strongly influenced by Seeka’s operational experience. The Surestore bins are stronger, safer to handle, easier to clean than wood, and are lighter, allowing more fruit to be loaded onto a truck. Importantly, they are also less damaging to the fruit and have helped improve the quality of harvested fruit. . .

 

 


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