Rural round-up

August 7, 2018

Wool gets revived as tide turns on synthetics’ pollution of the seas – Heather Chalmers:

A new wave of socially and environmentally-conscious consumers are turning to natural fibres for their clothing and homes, rejecting polluting synthetics and plastics.  

New Zealand wool companies are already tapping into this trend, promoting wool as a natural, biodegradable and renewable replacement.

But while momentum is growing, returns remain stubbornly low for the coarser end of New Zealand wool clip.   

While shoppers may think they have done their bit for the environment by ditching plastic bags, they are being advised to look at what they are wearing and how their house is carpeted, furnished and insulated.  . . 

 Wrightson shares jump 9.4% on plans to sell seeds unit for $439M; may distribute cash – Tina Morrison:

(BusinessDesk) – Shares in PGG Wrightson jumped as much as 9.4 percent after the country’s largest rural services business said it had agreed to sell its seed and grain business to Danish cooperative DLF Seeds for $421 million in cash and $18 of debt repayment, and signalled it may return up to $292 million to its shareholders.

The sale is above the $285 million book value of the seeds business and follows several expressions of interest received from international parties as part of a strategic review underway with Credit Suisse (Australia) and First NZ Capital. The Christchurch-based company expects to have a net cash balance of about $270 million following the sale and could distribute as much as $292 million to shareholders. . . 

A2 doubles stake in Synlait at 23% discount – Sophie Boot:

A2 Milk will buy another 8.2 percent of Synlait Milk, doubling its stake in the company.

The milk marketing firm will buy the shares at $10.90 apiece, down 2.3 percent from the NZX one month volume weighted average price of $11.16, for a total of $161.8 million. The shares will come from Tokyo-listed Mitsui & Co, a general trading company which invests across sectors and bought 8.4 percent of Synlait at the company’s initial public offering in 2013. . .

 

New Zealand red meat sector strongly opposes European Union and United Kingdom’s WTO quota proposal;

Beef + Lamb New Zealand and the Meat Industry Association strongly oppose the European Union (EU) and United Kingdom’s (UK) proposal to ‘split’ the EU’s World Trade Organisation (WTO) Tariff Rate Quotas between them.

The UK and EU have officially notified the WTO of their draft tariff schedules, which propose to split tariff rate quotas that allow access for New Zealand sheepmeat and beef exports. . .

Trade outlook still bright, but not without challenges – Allan Barber:

Vangelis Vitalis, Deputy Secretary for trade at MFAT and chief negotiator for the CPTPP due to take effect early next year, gave a very thorough and enthralling presentation on the trade landscape to the Red Meat Sector Conference in Napier on Monday.

Free trade and market access are a key area of interest to the New Zealand meat industry and the economy as a whole. Vitalis stated that three assumptions underpin New Zealand’s international trade negotiations: . . 

MPI sets the record straight with Forest & Bird:

Ministry For Primary Industries 2 August 2018 MPI is disappointed that Forest and Bird thinks it necessary to make inaccurate claims about combined efforts to prevent the spread of Kauri dieback.

Forest and Bird has advised MPI that it is closing off its reserves with wild kauri as a further measure to prevent the spread of kauri dieback, says Roger Smith, Head of Biosecurity New Zealand (a part of MPI). “We welcome all efforts to protect our kauri and have been working in partnership with a wide range of organisations to support their local efforts. . .

Tour leader found with fruit fly:

Fruit fly larvae carried by a tour party leader could have devastated New Zealand’s horticulture industry, says Biosecurity New Zealand.

Biosecurity officers intercepted the larvae last month in undeclared food with a holiday group from Malaysia at Auckland Airport, says Biosecurity New Zealand Passenger Manager, Craig Hughes.

The larvae was found in chillies following x-ray screening of the tour leader’s baggage. A caterpillar was also detected in some garlic bulbs carried with the undeclared food. . .

Rabobank Wine Quarterly Q3 2018: Status Quo Under Pressure in US Route-to-Market

The US has emerged as the largest wine market in the world, and by most measures, the most profitable and attractive. While wineries – both foreign and domestic – recognise the profit potential of the market, it is also widely seen as an exceptionally-difficult market to penetrate (particularly for small wineries), according to the latest RaboResearch Wine Quarterly report.

Route to the US consumer

Major changes are occurring today in how wine reaches the US consumer. “Changes in technology, business models and market structure are disrupting the global wine market and creating new sets of winners and losers among wholesalers, retailers and suppliers,” according to Stephen Rannekleiv, RaboResearch Global Strategist – Beverages. “Responding quickly to these changes will determine who survives, who thrives, and who fades away.” . .

Boy, 10, raises $60,000 in ‘Fiver for a farmer’ campaign – Shelley Ferguson:

More than $60,000 has been raised for drought-stricken farmers through a campaign started by children at a Sydney school last week.

Jack Berne, a grade four student at St John the Baptist Catholic School in Freshwater, was the instigator of “a fiver for a farmer”, and was inspired to help after learning about the struggles of those on the land in class.

Last week, Jack wrote a letter to media outlets as he tried to generate support for the cause after telling his mum that their teacher always tells them, “we can use our small and mighty voices” ..  . 


Free trade falters

August 3, 2018

Free trade is faltering:

The man who led the New Zealand team in key global trade negotiations says the world is seeing the worst rise in trade protectionism in 23 years.

Vangelis Vitalis, from the Ministry of Foreign Affairs and Trade, spoke to RNZ at a conference of the meat industry in Napier.

He said years of eased trade rules were in danger of being reversed, and this must be dealt with.

“We have seen 400 new protectionist measures to May have been put in place.

“We know that non-tariff barriers cost the wider agricultural sector of New Zealand up to $6 billion a year in restricted access. These have a profound impact.

“We are seeing the sharpest rise in protectionism since 1995, especially in the last six months.” . . 

This isn’t just a threat to exporters, it’s a threat to the whole economy.

Trade restrictions don’t just hurt businesses exporting to a country which imposes tariffs. They hurt businesses in the importing country trying to export to other countries which impose tariffs in response.

There’s no better illustration of that than this Trump Toon at Inquiring Mind.

By making it harder for businesses to sell their goods to the USA, Trump’s tariffs are making it harder for USA producers to export their goods.

Trump responded by giving subsidies which is a cost to taxpayers who are the consumers who are having to pay more for imported goods.

The inability to export will result in a glut in the domestic market which will depress prices. That might help consumers in the short-term but anything they gain in lower prices will come at their cost as taxpayers who pay for the subsidies.

I’m old enough to remember what it was like in New Zealand before we embraced free trade.

Tariffs were in effect a consumer subsidy for local industries which left consumers with less choice, often lower quality, and always higher prices on a whole range of goods from necessities to luxuries.

The whole system of tariffs, import and export licences, and subsidies was ripe for exploitation, manipulation and corruption.

It gave power to politicians, created work for bureaucrats and helped the favored few at the cost of the many.

The transition to an open economy wasn’t easy, but it has been worth it.

We are no longer producing low quality food in quantities too great to sell. Production is market led, aimed at what consumers want not political and bureaucratic whim.

There is little risk that New Zealand will close its borders again but we could be caught in the crossfire as trade wars between other countries escalates.


Rural round-up

September 10, 2015

Number of TB infected herd numbers at all-time record low:

The number of bovine tuberculosis (TB) infected herds has dropped below 40 for the first time in the history of New Zealand’s TBfree programme delivered by OSPRI. According to this week’s figures, an all-time low of 36 herds were infected with bovine TB (34 cattle and two deer herds).

OSPRI Chief Executive, Michelle Edge, said ‘Reaching this milestone is a credit to farmers and the industry and Government organisations that are shareholders and investors in the TBfree programme and is a big step towards New Zealand becoming TB-free.’

Farmers, industry and Government partners working hand-in-hand with OSPRI have collaboratively made the programme one of the world’s leading TB control schemes. . . 

New Zealand’s Precision Seafood Harvesting Finalist In Global Seafood Champion Awards:

The new Precision Seafood Harvesting fishing technology being developed in New Zealand has today been announced as a finalist in Seaweb’s Seafood Champion Awards at Seafood Expo Asia in Hong Kong.

The Seafood Champion Awards annually recognise individuals and companies for outstanding leadership in promoting environmentally responsible seafood. PSH is a finalist in the Innovation category, which recognises efforts in advancing sustainability within the global seafood sector to effectively design products and processes with sustainability as a driving force. . . 

New Zealand Ambassador to Chair WTO Agriculture Negotiations

Trade Minister Tim Groser announced today that the members of the World Trade Organisation have appointed New Zealand’s WTO Ambassador, Vangelis Vitalis, as the new Chair of the WTO Doha Round agriculture negotiations.

Mr Vitalis was formally elected Chair at a meeting of the Special Session of the Committee on Agriculture held in Geneva today.

“I am very pleased that the WTO membership have once again underlined their trust and confidence in New Zealand’s WTO Ambassador for the role as Chair of the agriculture negotiations”, Mr Groser said. . . 

 

Fonterra Milk Volume Forecast:

Fonterra Co-operative Group Limited has maintained its milk volume forecast for the 2015-16 season at 1,589 million kgMS, which is in the range of 2-3 per cent lower than the amount collected last season.

Fonterra is required under the Dairy Industry Restructuring Act to update its current season forecast milk volumes by early September.

Group Director Co-operative Affairs Miles Hurrell said although Fonterra had forecast a 2-3 per cent decline in volumes there was evidence that farmers were pulling back on production, which could lead to a further downward revision of forecast volumes as we move through the season.

“Farmers are responding to the lower forecast Farmgate Milk Price by returning to more traditional farming practices. They are reducing the use of feed supplements, and lowering stocking rates per hectare as they concentrate on utilising pasture. . . 

 

Too many eggs in the whole milk powder (WMP) basket – Keith Woodford:

For some time there has been a view developing within New Zealand that we have too many eggs in the dairy basket. There is also a view that we are over-exposed to China.

I do not share those perspectives, at least when they are expressed in such over-arching and simplistic terms. In contrast, I note that dairy is one of the things we are good at, and that our pastoral dairy resources are not easily put to alternative profitable use.

Yes, we could go back to sheep production, but I do not know where we would profitably sell the increased meat volumes. For beef, there are markets, but most of our beef is a by-product of dairy. It is hard to make money from beef cows. . . 

Fonterra Opens New Manufacturing Facility In Indonesia:

Fonterra Co-operative Group Limited has officially opened its new blending and packing plant in Indonesia – its first manufacturing facility in the country.

Chairman John Wilson said the plant is Fonterra’s largest investment in ASEAN in the last decade and will support the growth of Fonterra’s brands – Anmum, Anlene and Anchor Boneeto – in Indonesia.

“Fonterra has been supplying high quality dairy nutrition to Indonesia for more than 30 years and today it is one of our most important global markets. The opening of our new plant is an exciting step forward in our relationship with the country and local dairy industry,” he said. . . 

Dairy Women’s Network conference details announced:

Dairy Women’s Network has decided to take its cue from the dairy industry and curtail its next annual conference, at a time that the industry and its members are hurting.

The Network had planned to hold the 2016 conference in Wellington over two full days in May.

“The Wellington location would have meant more people from the North Island needed to fly than if we held it in a central North Island location,” said de Villiers. . .

MPI and cruise industry to combat fruit fly risk:

The Ministry for Primary Industries (MPI) will work closely with the cruise ship industry this season to manage biosecurity risk, especially fruit fly.

The cruise sector is expecting a record season, with passenger numbers forecast to jump 33% to 267,800.

“This, coupled with the enhanced fruit fly threat across the Tasman and other parts of the Pacific, has brought MPI and the cruise industry together to improve biosecurity,” says Stephanie Rowe, MPI’s Head of Intelligence and Operations. . . 


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