Rural round-up

September 1, 2019

Spring venison spike back – Annette Scott:

The return of the spring peak in venison prices is not expected to reach the unprecedented highs of last year.

Deer farmers are starting to see a return of the seasonal venison price increase that traditionally occurs each spring, Deer Industry New Zealand chief executive Dan Coup says. 

It follows an unusual 2017-18 season when venison prices climbed steadily from January 2017 before peaking in October last year. 

The return of the spring peak doesn’t come as a surprise but Coup hopes the peaks and troughs in the seasonal price curve will be less marked than in the past.  . . 

Chasing the rainbow – Tim Fulton:

He can play it for laughs and he can play it serious. There’s a discerning side to social media star farmer Tangaroa Walker. Tim Fulton reports.

Media sensation Tangaroa Walker has X-factor in spades and he wants to use it to lift other farmers out of the mire.

Walker has a virtual arena for the job, his vividly upbeat and out-there Facebook page, Farm 4 Life.

He is a contract milker on a 550-cow farm at Invercargill.

The page is a funny but sometimes poignant look at the industry’s challenges. . .

Crown to net $5 million from Westland Milk sale – Eric Frykberg:

The profit made by the country’s largest farmer from the sale of its shares in Westland Milk Products, will disappear into government coffers via a special dividend.

Pāmu, or Landcorp, owns 10 farms supplying to Westland and is its second-largest shareholder.

Earlier this month Westland’s 350 farmer shareholders voted overwhelmingly in favour of selling Westland to China’s Yili dairy conglomerate at a rate of $3.41 per share.

This will net the Crown $5m from a sale that ministers always strongly opposed.

The payment of the dividend is being made despite the fact that overall, state-owned Pāmu suffered a big loss. . . 

Important to choose right crop for right animals on right land – Yvonne O’Hara:

Sediment traps, back fencing, portable water troughs and buffer zones are some of the key elements of good winter grazing practices that Wilden sheep and beef farmers Simon O’Meara, and Peter Adam, recommend.

By careful management, both farmers ensure their sheep and cattle are well fed and as sheltered and comfortable as possible during winter break feeding and adverse weather events.

At the same time, by using the same principles, they can also reduce nitrate and sediment loss and enhance water quality on their properties. . . 

Women in wool take on shearing challenge – Linda Hall:

THE ACRYLIC nails are gone, so has the nail polish, their high heels replaced with moccasins.

They don’t meet for coffee on a Saturday morning, instead this group of amazing women dressed in black head to a woolshed ready for some hard yakka.

Every Saturday since March this group of professional women have been training hard. They call themselves Women in Wool and their goal is to raise as much money as possible for Farmstrong — a nationwide rural wellbeing programme for farmers and growers to help them live well to farm well. . . 

Kea playground to be installed – Kerrie Waterworth:

Complaints of missing gloves, stolen food and shredded windscreen wipers at Treble Cone skifield could soon be a thing of the past when a new kea playground is installed.

The familiar mountain parrot has been a regular visitor to Wanaka’s closest skifield for many years, attracted primarily by the prospect of food scraps.

Treble Cone brand manager Richard Birkby said despite erecting signs and staff educating guests about the thieving habits of kea, the skifield still received regular complaints about kea knocking over mugs, flying off with trays of chips and destroying gloves.

Health and safety officer Jessica Griffin said the idea for the kea playground at Treble Cone skifield was prompted by the kea gyms in Nelson and at the Homer Tunnel and Manapouri power station at West Arm, established primarily to keep kea away from roads and damaging cars. . . 

 


Rural round-up

December 31, 2018

Westland Milk loan heightens PGF slush fund suspicions – Jenny Ruth:

(BusinessDesk) – Regional Economic Development Minister Shane Jones’s $3 billion Provincial Growth Fund has the laudable aim of enhancing development opportunities in the regions.

But National’s Paul Goldsmith’s dogged unanswered questioning inevitably raises the spectre that the fund may be little more than Jones’s slush fund.

The Ministry of Business, Innovation and Employment, which administers the fund, describes the fund’s aims as “to lift productivity in the provinces. . . 

South Canterbury farm extensively damaged by vandals – Mark Quinlivan:

A South Canterbury couple has been left devastated after vandals caused “extensive” damage at the dairy farm they sharemilk on at Glenavy.

Tracy Thompson and her partner, Brent McEwan, were shocked to find thousands of dollars worth of vandalism and graffiti in one the Pike Point Rd farm’s dairy sheds on Friday morning.

“It’s just devastating,” an emotional Thompson told Stuff on Friday. . .

Rural Health Alliance revitalised – Mike Houlahan:

Reports of the Rural Health Alliance Aotearoa New Zealand’s demise have proved premature and the advocacy organisation has restructured and refocused on its work to improve the wellbeing of people who live outside the major cities. RHAANZ put itself in self-described “hibernation” in mid-year after it failed to secure financial support from the government. A registered charity, RHAANZ had done considerable work on rural mental health and suicide prevention, as well as and supporting the recruitment and retention of rural health professionals.

November flood aftermath lingers for Otago farms and businesses:

Farmers and business owners in Otago are still picking up the pieces after November’s floods.

Widespread flooding in the region inundated farmland near the Taieri and Waipori Rivers, and caused issues for Middlemarch, Henley and communities in the Clutha district.

The downpours came during the one of the wettest Novembers on record.

The effects are still being felt particularly hard by the Tap and Dough Bistro in Middlemarch which had sewage knee deep flow through the restaurant during the deluge. . .

Bee farmer seeks compo over bees ‘cooked’ while being couriered – Jonathan Mitchell:

A bee farmer is demanding compensation from New Zealand Post after queen bees were “cooked” while being couriered.

Gary Milne runs Southern Sun Queen Bees in Horowhenua and has been breeding the bees for more than two decades.

He said a recent courier trip turned into a nightmare after 27 of the 100 queen bees were dead on arrival. . .

NZAgbiz recognised for creating value from recycled dairy industry products – Award win for making animal nutrition products from dairy industry loss streams:

Since the industrial revolution, businesses have been built on a linear ‘take-make-waste’ model. But as pressure on resources grows, there is a need to shift to a more ‘circular’ economy.

The circular model seeks to maximise the lifecycle of materials, optimise usage, and re-use materials.

NZAgbiz is a Hamilton-based company whose business model has been circular since its inception in 2008. A Fonterra business unit, NZAgbiz manufactures livestock nutrition products using primarily Fonterra ingredients and has recently won a commendation at the prestigious 2018 NZI Sustainable Business Network Awards for its work. . . 

 


Rural round-up

December 6, 2018

Dairy product prices climb as whole milk powder gains – Margaret Dietz:

(BusinessDesk) – Dairy product prices rose at the Global Dairy Trade auction, stemming a decline that began in May.

The GDT price index gained 2.2 percent from the previous auction two weeks ago. The average price was a US$2,819 a tonne, compared with US$2,727 a tonne two weeks ago. Some 36,450 tonnes of product was sold, down from 42,966 tonnes two weeks ago.

Whole milk powder climbed 2.5 percent to US$2,667 a tonne. . . 

Dairy bosses are best employers:

In the first-ever Primary Industries Good Employer Awards dairy farmers Ben and Nicky Allomes won the top accolade, the Minister of Agriculture’s Award for Best Primary Sector Employers.

Woodville dairy farmers Ben and Nicky Allomes have been named the Best Primary Sector Employers. 

The couple, who own Hopelands Dairies, also won the Innovative Employment Practices award. . . 

Fonterra reaches provisional deal with Beingmate:

Fonterra Cooperative Group has reached a provisional deal with Chinese partner Beingmate Baby & Child Food to unwind their Darnum joint venture in Australia.

The joint venture – 51 percent owned by Beingmate and 49 percent Fonterra – produced infant formula products at the Darnum plant in Australia for Beingmate’s Chinese customers, and was a key component of Fonterra’s plan to expand its reach into China’s second and third-tier cities. . . 

Voting for the 2nd Fonterra Directors’ Election is underway:

Voting is now open for the 2018 Fonterra Board of Directors’ Second Election.

Only two candidates from the first election, Leonie Guiney and Peter McBride, obtained more than 50% support from voting shareholders. The Rules of the first election state that if not enough candidates obtain more than 50% support, there must be a second election. . . 

Dairy loan done on a handshake, details to follow:

It beggars belief that the Government has dispensed a $9.9 million low-interest loan to a dairy company without having finalised the terms, National’s Economic and Regional Development spokesperson Paul Goldsmith says.

“The Minister in charge of the Provincial Growth Fund couldn’t tell the House what terms he had in mind when he undercut commercial lenders to provide debt funding for a new processing plant.

“I wouldn’t blame any business like Westland Milk for accepting a cheap loan from a secure lender. . . 

Apple producer’s underlying profit looks to be at top end:

Apple producer Scales has had a bumper year with a record export crop lifting profits to the top end of guidance.

The company’s underlying profit was likely to be at the top end, or slightly exceed, the current guidance range of $58 million to $65m, in the year ending December.

Managing director Andy Borland said it was an excellent performance for the group, with all business units performing well over the year. . . 

New Landcorp chair appointed:

Dr Warren Parker has been appointed as Director and Chair of Landcorp, the Minister of Finance Grant Robertson and Associate Minister of State-Owned Enterprises Shane Jones announced today.

Dr Parker is a former Chief Executive of Scion (the NZ Forest Research Institute) and Landcare Research, and was previously Chief Operating Officer of AgResearch. He currently holds a number of board roles including on Predator Free 2050 Ltd, Farmlands Cooperative Society, Genomics Aotearoa and is the Chair of the Forestry Ministerial Advisory Group. Until recently he was Chair of the New Zealand Conservation Authority. . . 

Landcorp out of touch with real farmers:

Landcorp’s submission to Sir Michael Cullen’s Tax Working Group (TWG) is a kick in the guts to rural communities, National’s Nathan Guy and David Carter say.

“Landcorp’s sneaky submission to the TWG proposing a water tax, nitrogen fertiliser tax and not opposing a capital gains tax proves how out of touch the state-owned company is with farmers on the ground,” Mr Guy says.

“With 6700 other submissions, why was Landcorp pressured to put in a submission that was more than a month late? The reality seems to be that the TWG are hell-bent on introducing environmental taxes and a capital gains tax, so they leaned on Landcorp to submit supporting more taxes and levies. . . 

New president and vice president elected to HortNZ board:

The Horticulture New Zealand board elected Barry O’Neil as its new President and Chairman at a meeting today. Mr O’Neil replaces Julian Raine, who has been President and Chairman for six years and who has made a significant contribution to horticulture for New Zealand. Mr Raine has stood down to pursue other business interests.

Bernadine Guilleux was elected Vice-President, with both positions effective from 1 January 2019. . . 

Busy orchardist advises small businesses start payday filing:

A Hawke’s Bay orchardist is advising fellow small businesses to be ahead of the game on payday filing.

This is the mandatory requirement from April next year for employers to file their payroll information to Inland Revenue every time they pay their staff.

Te Mata Figs owner Helen Walker has been paying her five staff fortnightly and sending across their details using the online entry method in myIR. . . 


Rural round-up

September 25, 2018

Counting sheep a new challenge for Northland science students:

Counting sheep is often touted as a remedy to help troubled sleepers nod off.

But for Whangarei Boys’ High School students, counting sheep has become part of the curriculum.

Two classes of Year 11 science students are studying a learning module called ‘Keep calm and count sheep’.

The resource examines the nutritional requirements of ewes and the factors that influence sheep growth rates. . .

Strawberry crisis: How NZ growers can prevent ‘crisis contagion’ – Daniel Laufer:

The reputation of New Zealand’s strawberry industry could be contaminated by the needles found in Australian fruit, but our growers can still minimise the damage, writes Daniel Laufer.

New Zealand strawberry growers face a challenging situation with the tampering of Australian strawberries. How can they convince consumers to continue buying strawberries, despite the highly publicised incidents of needles in strawberries grown in Australia?

The issue has made the headlines here in New Zealand with the first reported case yesterday of tampered Australian imported strawberries in an Auckland supermarket. . .

Major fresh produce traceability project underway in New Zealand:

In light of the recent shocking Australian strawberry tampering event, the New Zealand produce industry is taking every action possible to reassure customers their safety systems are robust.

United Fresh is the New Zealand pan-produce organisation that is currently leading a major New Zealand-led project reviewing traceability systems in our produce sector. . .

Final candidates for Fonterra elections announced:

Following the completion of the Self Nomination Process for the 2018 Directors’ Election Process, there are five candidates standing for three places on the Fonterra Board in 2018.

Peter McBride, Jamie Tuuta and Ashley Waugh were announced two weeks ago as the Independent Nomination Process candidates. All three candidates were nominated by the Fonterra Board after being recommended by the Independent Selection Panel. The process for their nomination was supported by the Shareholders’ Council in accordance with the Independent Nomination Process . .

Outspoken Fonterra critic launches campaign for board seatB –Nikki Mandow

Sept. 24 (BusinessDesk) – Outspoken former Fonterra director Leonie Guiney, who was temporarily gagged by the cooperative after losing her seat on the board last year, is seeking re-election in November.

Guiney, who has strongly criticised the strategy that led to Fonterra investing approximately $1.5 billion in now-failing assets like Beingmate and China Farms, is one of two self-nominated candidates. There are three official board nominees, and three places available. . .

Dairy co-operatives struggle without retained earnings – Keith Woodford:

Currently there are three dairy co-operatives in New Zealand – Fonterra, Westland and Tatua.  The first two are struggling for capital, whereas the third, the tiny Tatua, has been an ongoing success story of prosperity.

The essence of the difference lies in retained earnings and their productive use.

Comparative statistics for the three co-operatives are available for the six years from 2010/11 through to 2016/17. In that time Fonterra retained a total of 70c of capital per kg milksolids, Westland retained 84c, and Tatua retained $4.85. Those numbers spell it out in spades. . .

FarmIQ powers Farmlands’ SafeFarm:

New Zealand’s most comprehensive farm management software provider has partnered with the country’s largest farmer retail co-operative, Farmlands, to launch SafeFarm, a complete Health and Safety software system designed with New Zealand farmers in mind.

SafeFarm is built on FarmIQ’s software platform, utilising much of the mapping, recording, reporting and analytical capabilities inherent in FarmIQ.

The SafeFarm software package is available free of charge to Farmlands’ shareholders. Users of the application can seamlessly upgrade and trial FarmIQ’s newly launched range of farm management subscriptions from within SafeFarm. . .

 

The original performance fibre merino wool proves its natural function for transseasonal delivery – Louisa Smith:

As the original performance fiber, wool, in particular merino wool, has reemerged as a key contender for the sports and outdoors market. Natural, recyclable and also biodegradable, it is fast becoming a key contender for its breathability, thermal regulation and anti-odor, all inherent functions that appeal to the consumer, combined with its natural DNA.

Sustainability is a key factor through recycling and biodegradable functionality

Natural fibers, including cotton and silk are entering the performance sector, but for merino wool, the anti-odor benefits give it a heads up as this becomes a major trend in the sports and outdoors sector. Not just for the elimination of nasty body odors after high impact activity, but also a reduction in home launderings that benefit and environmentally friendly approach. . .


Rural round-up

February 2, 2018

New Zealand Agribusiness Outlook 2018:

Favourable market conditions should underpin a second year of broad-based profitability for New Zealand agriculture. Where the industry chooses to direct improved cash flow and focus amid this sustained positive run will be important for many years to come. . .

Lewis Road investor Southern Pastures ties up with Westland Milk – Paul McBeth:

Dairy farm fund Southern Pastures LP, which took a quarter stake in Lewis Road Creamery last year, will link with Westland Milk Products as a supplier from the 2018/19 season and with plans for a high-value product joint venture. Separately, Westland cut its forecast milk payout for this season.

Southern Pastures and Westland signed a letter of intent where the dairy farm investor’s nine Canterbury farms will supply an extra 4 million kilograms of milk solids to Westland from 2019, and investigate a business case for a 50/50 joint venture to create products from free-range, grass-fed milk based on strict animal welfare, health, sustainability, climate change and human rights standards. . . 

Why the CPTPP is important for New Zealand:

There is no question that our small, remote nation depends on trade. But there were times during the protracted negotiations that have now culminated in the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) when the visceral debate here could easily have led bystanders to believe New Zealanders specialise primarily in trading insults.

The fact that there is now a deal to be signed – after the efforts of successive prime ministers ranging from Helen Clark and John Key to Bill English and now Jacinda Ardern – is a cause for real celebration. Our role in recent decades as free-trade pioneers, in the teeth of other countries’ stubbornly defended protectionism, should be a source of national pride. Our exports reap more than $70 billion a year, but farmers and manufacturers know what courage it has taken to open our borders, forgo subsidies and eschew protectionism. They and the country are better off as a result. . . 

Environment and agriculture can both benefit from CPTTP:

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP) trade agreement has the potential to transform the agricultural sector and at the same time benefit the environment, agribusiness expert Dr Nic Lees of Lincoln University says.

However, he added, the public needed to be convinced of that.

The CPTTP is the re-negotiated Trans Pacific Partnership after the USA withdrew, and is a free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Negotiations have concluded between the countries but it is yet to be ratified by New Zealand. The TTP had met some public and political opposition. . .

Farm machinery sales back to 2014 levels – TAMA:

Sales of tractors in 2017 increased markedly, just topping the previous highest recorded levels of 2014, says NZ Tractor and Machinery Association (TAMA) General Manager, Ron Gall.

Mr Gall said the association recognised that some farmers in both islands were currently experiencing hardship with the very hot and dry conditions. The challenging drought conditions may affect sales in the coming months but it was hoped changing weather would provide some relief.

Mr Gall said in 2017, a total of 4079 tractors were sold. This is up 13% on 2016, up 14% on 2015 and even slightly up on the boom dairy year of 2014, which had 4062 sales. . . 

 

Rabobank Wine Quarterly Q1: Evolution of sourcing strategies:

2017 was a dynamic year for the wine industry, marked by short-term scarcity and rising prices, according to Rabobank’s latest Global Wine Quarterly report.

The report says while “2017 was an unusual one for the wine industry, forcing all players to rethink their short-term strategies” – changing consumer behaviour, global shifts in demand volumes and changing trading frameworks, could represent long-term structural changes.

“Although the unconventional year that 2017 was may just be a one-off, it may also be enough to accelerate deeper changes that were already developing in the wine industry,” says RaboResearch senior beverages analyst Maria Castroviejo. . . 

Green light for China opens up new export opportunities for leading supply group:

Leading avocado export supply group AVOCO has welcomed this week’s announcement that New Zealand market access to China has been granted for the 2018-19 export season.

AVOCO exports New Zealand avocados to various Asian markets under its AVANZA brand and the company has been preparing for access to China for some time. Preliminary planning has included the development of a market-specific brand name designed to be the exemplar brand from New Zealand for China. . . 

Millennials are leaving desk jobs for this surprising profession – Alexandra Hayes:

The millennial generation is often called out for its social media addictions, its work habits, and even its unhealthy ideals around perfection, but according to the Washington Post, many of them are diverging from the status ladder and leading a crusade toward a different purpose entirely: farming.

Take Liz Whitehurst. Two years ago, she left her non-profit job and bought her farm, Owl’s Nest, from a retiring farmer. Now she grows an array of organically certified produce and sells to restaurants, through CSA shares, or at local farmers markets.

According to the latest Census of Agriculture in 2012, the U.S. Department of Agriculture reports that 69 percent of farmers today have a college degree, a number that suggests more millennials are leaving traditional desk jobs to pursue this very different life. . .

Manuka South® latest Manuka honey is making a legendary entrance:

The highly anticipated Limited Reserve batch of 26+ UMF features some of the rarest and most potent Manuka honey available in the world. Manuka South® is releasing only a limited amount of the high-end honey.

Manuka South® 26+ Limited Reserve – available at select Aotea Gifts stores in New Zealand – is the latest in the line of premium Manuka honey products produced by Manuka South®, a trusted brand from New Zealand Health Food Company (NZHF). But it will also be the rarest among them, because jars won’t be on store shelves long. . . 


Rural round-up

September 15, 2015

Silver Fern Farms Board Unanimously Recommends Partnership with Shanghai Maling:

Board gives unanimous recommendation to accept Shanghai Maling Aquarius Group (Shanghai Maling) as new partner to secure an improved and sustainable future

• A 50:50 partnership with total commitment to our global plate to pasture strategy

• Transaction values Silver Fern Farms’ equity at $311m. This equates to $2.84 per ordinary share, which compares to the $0.35 share price prior to their suspension in July

• Shanghai Maling to invest $261m in cash to own 50% of Silver Fern Farms’ business, in partnership with the existing Silver Fern Farms Co-operative

• A special dividend of $0.30 per share to Co-operative ordinary and rebate shareholders . . .

Cooperatives and private companies work best in agriculture – Allan Barber:

Good company performance demands clarity of purpose which is defined and monitored by a board of directors elected or appointed by the shareholders. There are five main types of company ownership structure that are or have been represented in New Zealand’s agricultural sector and each has advantages and disadvantages.

The five are private and public companies, cooperatives, subsidiaries of an overseas company and State Owned Enterprises. Whatever the structure, good governance and direction are pre-requisites of success.

A privately owned company normally has the greatest clarity of purpose because of the simplicity of the ownership structure, although there is plenty of scope for disputes between individual shareholders, particularly family members. Private company structures range from very simple to more complicated, depending on relative size of shareholdings and the number and origin of the shareholders. . . 

Rural productivity is improving in some sectors, falling in others. Influenced by soil, technology, size and governance according to Motu research:

The agricultural sector produces 40% of New Zealand’s merchandise exports. Not only is agriculture the primary source of employment in many rural areas, its performance influences the success of urban regions and many secondary industries are dependent upon it.

In this study, we estimate the drivers of revenue and productivity in two key agricultural industries – dairy and sheep/ beef. Together these account for about two-thirds of New Zealand’s agricultural exports.

Productivity is an economic term that, in this case, explains changes or differences in output not explained by use of labour, capital, other expenditures or land. Output is measured as revenue excluding income from interest and dividends. Labour is employees and working proprietors. Capital includes stock, depreciation and rent on tractors, irrigation systems and fencing. Other expenditure includes use of fertiliser, diesel, electricity, wormicide and grass seeds; and land is all the land used for production. Productivity encompasses everything else, including management and worker skills and knowledge, technological improvements, unexpected economic shocks (such as the global financial crisis), changing weather conditions (e.g. droughts), and the inherent quality of each farm. . . 

Strong farmer support for sheepmeat and beef levies to continue:

Farmers have given their organisation Beef + Lamb New Zealand a strong mandate to work on their behalf for the next six year sheepmeat and beef levy cycle with over 84% support.

The Declaration of Result provided by the independent Returning Officer, Warwick Lampp, of Electionz.com said 84.56 per cent of farmers on a one farmer, one vote basis had voted in favour of the sheepmeat levy with support of 86.04 per cent on a weighted stock unit basis. There was over 84.66 percent support for the beef levy on a one farmer, one vote and 84.60 per cent on a weighted stock unit basis. . . 

Roles review part of a bigger cost savings project Westland says:

Westland Milk Products confirmed today that it is conducting a review of staff roles throughout the company. The review is part of an overall programme to gain efficiencies and reduce costs to help preserve the best possible return to shareholders during the current global dairy price downturn.

Chief Executive Rod Quin says the review is likely to result in some redundancies. However, he was not going to speculate on how many, or what positions might be affected, until the review is complete, affected staff are consulted, and given an opportunity to provide feedback on any proposed roles under review. The review is scheduled to occur over two rounds, with the first round this month (September 2015) and the second in February 2016. . . 

UN issues stark warning on Pacific drought threat:

The UN’s Resident Coordinator, Osnat Lubrani, says communities and governments need to prepare now for the extreme weather changes El Niño usually triggers.

He says some countries are already implementing or drafting drought plans and the UN is ready to help co-ordinate this and to provide technical advice.

Over the coming months, countries on the equator can expect more rain, flooding and higher sea levels, presenting challenges for low-lying atolls already feeling the impacts of climate change. . . 

Getting the better of El Nino before it gets dry:

Tap rooted, reliable and highly productive, one forage herb species could make all the difference to farmers’ summer feed supply as El Nino looms large this season.

Summer crops are being sown early before soils dry out and chicory is already proving to be a popular drought-proofing choice, according to local pasture specialist Paul Sharp.

“With the long range forecast the way it is, 501 Chicory makes a lot of sense. In a dry year, it’s more reliable than leafy turnips and it also has several other advantages.”

Current soil moisture levels are significantly below average in Hawke’s Bay and Sharp, who works for Agriseeds, says many farmers are being very proactive about setting their feed supply up for the months ahead. . . 

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

The Commerce Commission today released its final 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.

Having considered public submissions on the draft decision released last month, the Commission’s overall view that Fonterra’s calculation of the 2014/15 base milk price is largely consistent with both the efficiency and contestability purposes of the Dairy Industry Restructuring Act 2001 remains unchanged.

Deputy Chair Sue Begg said the Commission appreciated the engagement and effort from Fonterra and the parties they met with during this year’s review. . . 

Funding round starts for new forest planting:

The first funding round of the Afforestation Grant Scheme will see 5819 hectares planted throughout New Zealand, says Associate Primary Industries Minister Jo Goodhew.

The Afforestation Grant Scheme is a $22.5m programme to help establish about 15,000 hectares of new forest plantations over the next six years.

“Under the first round of funding the total area applied for covered 9044 hectares, far exceeding our expectations,” says Mrs Goodhew. . . 

Farm skills day proves popular – James Kinsman:

On Sunday, August 23, the Waitaki Boys’ Fraser Farm hosted Opihi College, Waitaki Girls’, St. Kevin’s and Geraldine High to our first farm skills day.

School pupils did a lot of prior planning to make the day a success. It was a big learning curve for us and the school. The day started with a dog trialling demonstration by Barry Hobbs, assisted by Allan Thompson.

The visitors watched with interest as his well trained dogs got the sheep into the pen. Next it was off to be put into random groups for modules. Barrie Rae, an enthusiastic Poll Dorset breeder taught them stock judging, helped by Jack Price. . . 


Rural round-up

August 31, 2013

Fonterra Leadership to Visit China Next Week:

Fonterra Chairman John Wilson and CEO Theo Spierings will lead a Board of Directors visit to China next week to meet with Fonterra management and key stakeholders.

Mr Wilson said the Co-operative’s Board had already planned to visit China in early September for Directors to meet with Fonterra staff and stakeholders, and view progress on Fonterra’s farming hub in Yutian.

“Now that it has been confirmed that there was no Clostridium botulinum in our whey protein concentrate, we need to address any remaining concerns our stakeholders in China might have. . .

Fonterra’s false alarm shows danger of ‘crying wolf’:

Victoria and Otago Marketing academics provide expert comment on the Fonterra crisis:

Although it is good news that Fonterra received the ‘all clear’ from the Ministry for Primary Industries yesterday, a lot more needs to be done to restore New Zealand’s reputation, say academics from Victoria University of Wellington and the University of Otago.

Dr Hongzhi Gao, Senior Lecturer in Marketing at Victoria Business School and Senior Research Fellow of the New Zealand Contemporary China Research Centre, says the New Zealand government and business communities still have a big job ahead to ensure the official findings filter through to the global market.

“Negativity was so widely spread overseas that a proper public relations campaign needs to be planned and implemented in key dairy export markets, including China. If it is done well, the crisis may be turned into an opportunity for New Zealand’s brand,” says Dr Gao. . .

PGG Wrightson sells Heartland stake for $11.3 million to reduce debt – Tina Morrison

(BusinessDesk) – PGG Wrightson, the rural services company controlled by China’s Agria Corp, sold its stake in Heartland New Zealand for $11.3 million to reduce debt.

Christchurch-based Wrightson sold 13.18 million shares in Heartland, the parent of the country’s newest bank, through a brokerage yesterday at 84 cents a share, a 3.4 percent discount to the 87 cent share price Heartland was trading at immediately prior to the sale. Wrightson acquired the stake as part of the sale of its finance arm to Heartland.

“It wasn’t a strategic holding for us, it’s not our core business,” said company secretary Julian Daly. The stock price “was at a level that we were satisfied with.” . . .

Yashili Granted Consent for Infant Forumla Plant in Pokeno:

Independent commissioner Michael Savage has granted land use consent to Chinese company Yashili NZ Dairy Co Ltd to construct and run a $220 million infant formula plant in Pokeno.

This follows a three day hearing which took place on Wednesday 31 July – Friday 2 August at the Waikato District Council Chambers in Ngaruawahia.

The Council’s Regulatory Committee appointed Michael Savage as the independent Commissioner to hear the application, which received 27 submissions with five submitters heard at the hearing. . .

Synlait Milk will process more milk than forecast in FY14:

Synlait Milk will process more milk than forecast following a decision to take a significant allocation of milk under the Dairy Industry Restructuring Act in the financial year to 31 July 2014.

The decision was made after further planning and a small investment in plant and equipment resulted in an opportunity to increase production capacity of its ingredient products without impacting the forecast infant formula and nutritional products business.

The extra milk will result in an increase to the forecast milk supply and production volumes of its ingredient products as stated in the prospective financial information (“PFI”) of its prospectus issued in June 2013. While early in the season the additional total production provides the Company with increased confidence in achieving its forecast financial result for FY2014. . .

Westland Milk Products joins the ‘good news club’:

Federated Farmers West Coast says New Zealand’s second largest dairy cooperative, Westland Milk Products, has now joined the ‘good news club.’ The cooperative has revised its 2013/14 forecast payout to a range of $7.60-8.00 per kilogram of milk solids (kg/MS), with a new advance rate of $5 kg/MS.

“It has been one hell of an August. I even saw someone at Federated Farmers head office tag it as dairying’s ‘mensis horribilis’,” says Richard Reynolds, Federated Farmers West Coast Dairy chairperson.

“Frankly, West Coast farmers like me are counting down to 20 September when we get the advance. After the rare West Coast drought this year, we’ve got more than an overdraft to start clearing. . .


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