Rural round-up

September 11, 2018

Climate change and rural confidence – Mike Chapman:

There has been a lot of talk in the media and in boardrooms about a drop in business confidence. This is also a hot topic in the rural sector, with some of the employment law changes causing concerns about the ongoing financial viability of businesses, and economic growth stalling. An additional concern for the rural sector is the impact of climate change adaptation on primary industry businesses.

Recent reports published on climate change include models that increase hectares planted in trees, and in fruit and vegetables. Some models have fruit and vegetables increasing from today’s 116,000 hectares used for growing, to 1 million hectares. That’s a big increase in growing area and for horticulture, it will most likely come from what is now dairy land. Forests are more likely to be planted on sheep and beef land. The challenge with models is that they make predictions, but turning that into reality may not be easy. . .

Waimea Dam investor that revived project remains a mystery – Erik Frykberg:

A mystery investment which helped get approval for the Waimea Dam project near Nelson is likely to remain anonymous for now.

The investment is for $11 million, and it helped Tasman District Council put the dam project back on course after it was blocked for financial reasons last week.

While little is being said about the investment, RNZ understands it comes in the form of convertible preference shares from an institutional investor, possibly a nominee company from in or around Richmond. . .

Waimea Dam decision good news for Tasman:

The decision by Tasman District Council to support a revised funding proposal to enable the Waimea community dam to proceed is good news for the district, says IrrigationNZ.

Without a dam, the council says that urban and rural water users will be facing significant water use cuts from this summer. This is due to a plan change introducing higher flow requirements on the Waimea River.

“The dam is the most cost effective way to provide a secure water supply for urban residents, business and irrigators while sharing the cost of this major project,” says Andrew Curtis, IrrigationNZ Chief Executive. . .

Feeding and breeding are vital – Andrew Stewart:

A desire not to be anchored to machinery led Mike and Vicki Cottrell to try something new. They headed for the hills and have spent a quarter-century running sheep and cattle on medium to steep back country near Taihape. They told fellow Rangitikei farmer Andrew Stewartabout facing the on and off farm challenges of the farming life.

Venture southeast from Taihape and you come across the farming community of Omatane.

It is here that clean, green hills are punctuated with river chasms and rim rocks. In the distance Mt Ruapehu provides a stunning but sometimes chilly backdrop. Loosely translated from the Maori dictionary, Omatane means a fleeing man.  . .

New Zealand’s largest forestry acquisition goes ahead:

Australian sustainable forestry company, OneFortyOne Plantation’s (OFO) purchase of Nelson Forests completed this week, following approval by the Overseas Investment Office.

Nelson Forests, was owned by investment funds advised by Global Forest Partners LP (GFP), and is a vertically-integrated plantation and sawmill business in the Nelson Tasman and Marlborough regions of New Zealand. Nelson Forests employs 101 people fulltime and its business activity is further supported by approximately 350 contractors. . .

World not yet falling apart – Allan Barber:

Much to a lot of people’s surprise, the global economy is resisting the dire predictions of many commentators, just as the New Zealand economy continues to perform much better than businesses are prepared to accept. But it is far from certain whether this just a question of timing or the genuine possibility the predictions are exaggerated. Speculation, based on suspicion and anecdote, appears to be an unreliable guide to what is actually happening, so, while planning for an uncertain future is essential, it would pay not to ignore present realities.

For the agricultural sector, certainties include sheep meat prices at around all time highs, a high milk price, a fairly mild winter following good growth earlier in the year, continuing demand from trading partners, no new tariffs imposed on New Zealand agricultural products, a bullish, if potentially volatile, global economy, a stable domestic economy and an exchange rate which has stabilised at up to 10% off its 2017 peak. All these factors suggest the world isn’t about to end any time soon. . .

Owen River Lodge first fishing lodge to win at NZ Tourism Awards:

Luxury fishing accommodation Owen River Lodge near Murchison is the first fishing lodge ever to scoop a gong at the New Zealand Tourism Awards.

The 2018 Westpac Business Excellence Award, open to New Zealand tourist operators with less than $6m annual turnover, was presented to owner Felix Borenstein at a black tie dinner in Christchurch last night. . .


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