Rural round-up

24/12/2020

Regional economies: agriculture strong, tourism struggling:

Regions with large agricultural bases have surging regional economies while those which relied heavily on tourism were struggling.

The latest quarterly figures from Westpac McDermott Miller showed that Gisborne/Hawkes Bay have recorded a huge bounce in confidence, followed by Nelson-Marlborough-West Coast and Taranaki/Manawatū-Whanganui.

It showed the “optimists now outweighed the pessimists” in most regions, except in Northland, Otago and Southland – although the news was not entirely grim for the southern regions which had been hard-hit by the Covid-19 linked downturn.

Senior agri economist Nathan Penny said the bounce in confidence for most regions was a reflection of the general rebound in the economy, helped by news of positive vaccine developments overseas. . . 

Milk price forecast boosted by banks – Sally Rae:

Rabobank and ASB have both increased their farm-gate milk price forecasts to $7 for the 2020-21 season, following an improving dairy outlook.

Prices edged up again at last week’s GlobalDairyTrade auction — the last for the year — with an overall price increase of 1.3%.

Gains were strongest for the fat products; butter prices were up 6% and anhydrous milk fat up 1.9% while whole and skim milk powder lifted 0.5% and 1.2% respectively.

ASB economist Nat Keall said the result reflected the fact global demand was still holding up well, providing support for dairy prices. . . 

Westpac Agri Futures established to help young people into rural careers:

The importance of our primary industries has been recognised with a new sector to be included in The 2021 Ford Ranger New Zealand Rural Games.

The Rural Games will now include Westpac Agri Futures in association with Property Brokers and this is to be held on Friday 12th March in Palmerston North.

Westpac New Zealand General Manager Institutional & Business Banking, Simon Power said Agri Futures is all about encouraging the next generation into agriculture sector careers.

“The demand for staff across rural New Zealand has only grown since COVID-19, and Westpac understands the need to support efforts to encourage more Kiwis to enter the rural workforce.” . . 

Federated Farmers hails pragmatic migrant worker visa decisions:

Farmers and growers up and down the land will be pleased with the pragmatic decision by government to extend visas for migrant workers already on our shores.

“The six-month extension for employer-assisted work visa holders and the postponed stand down period for low-paid Essential Skills via holders will come as a relief for the primary sector heading into the Christmas and New Year period,” Federated Farmers employment spokesperson Chris Lewis says.

“We thank Immigration Minister Kris Faafoi for listening to our case for this, and recognising a common sense approach. . . 

NZ Rural Land Company has quiet NZX debut :

The New Zealand Rural Land Company (NZRLC) has had a quiet debut on the stock exchange, listing at a slight premium.

Its shares touched a high of $1.31 in early trading compared with the issue price of $1.25 in the recent share float, before settling at $1.28 with only small volumes being traded.

The company raised $75 million in the public share float, which along with debt will give it about $100m for rural land buying.

NZRLC plans to buy rural land and lease it to farmers or other producers. . . 

Tractor and Machinery Association announces 2021 scholarships:

The Tractor & Machinery Association Inc (TAMA) is offering to industry trainees who are studying towards a certificate or diploma.

There are several $500 scholarships available to industry trainees who can demonstrate their commitment and potential contribution to the industry. Applications for 2021 open on 18 January and close on 5 March with successful applicants advised in May.

TAMA general manager Ron Gall said the scholarships are part of TAMA’s wider efforts to encourage younger people to stay working in the industry and take advantage of the valuable career path it offers. . . 


Rural round-up

01/04/2015

Big dump culmination of years of worry – David Bruce:

A frustrated North Otago farmer drove 120km on Monday to dump a load of excrement at the Otago Regional Council’s doorstep in Dunedin. David Bruce talks to him about why he did it.

Five Forks dairy farmer Robert Borst says he is at a loss about where to go from here.

He says he faces losing everything he has worked for in an industry he has wanted to be in since he was 15.

He left school and started at the bottom in dairying, shifted from Taranaki to the Waitaki Plains in 1992 then, from 1997, he and wife Sylvia started to build up what are now three dairy farms at Five Forks.

Changes in a water plan by the Otago Regional Council setting new limits on discharges from his farms has put everything in jeopardy, he believes. . .

Positive agriculture Omarama winner – Sally Rae:

Omarama farmers Richard and Annabelle Subtil want to help highlight the positive side of agriculture.

Mr and Mrs Subtil were named the supreme winners in this year’s Canterbury Ballance farm environment awards.

The couple farm Omarama Station, a property of nearly 12,000ha, which has been in Mrs Subtil’s family since 1919. . .

Farmer confidence grows – Dene Mackenzie and Sally Rae:

There is a sense of relief as two surveys show regional economic confidence rose in the three months ended March.

Farmer confidence has taken a ”significant jump” in the first quarterly Rabobank rural confidence for the year. The survey, completed earlier this month, was released the same day as Fonterra dropped its dividend estimate range by 5c to between 20c and 30c to the disappointment of farmers.

The Westpac McDermott Miller regional economic confidence survey showed rural regions and smaller centres generally showing the biggest gains. Confidence in the main centres was mixed. . .

Can science fix the dairy debate – Kevin Ikin:

The debate continues on whether there should be a moratorium on further dairy farm development.

The Green Party and the Fish and Game organisation are keen on the concept, which they say should be given serious consideration while the impact of intensive farming on the environment is properly assessed.

The issue also came up at a water management forum in Geraldine, South Canterbury, last week.

One of the speakers, Morgan Foundation economist Geoff Simmons said if the Government was serious about water quality then it had to consider a moratorium on further dairy farm conversions.

“Actually, if you are maintaining or improving the water quality, how can you do that when you are still doing conversions? . .

Fonterra’s disappointing performance – Allan Barber:

Fonterra’s interim result announcement contains confirmation of the farmgate milk price forecast of $4.70, but a reduction in the added value dividend.

The steady milk payout forecast was anticipated, although Global Dairy Trade auction results have so far failed to achieve the US$3,500 per tonne average which is estimated to be the minimum needed to underpin the payout. The higher volume being released for auction GDT and likely milk production by competitors such as American and European farmers may actually increase the risk of underachieving the forecast end of year payout. . .

Fonterra says it’s holding its own in Canterbury as farmer suppliers look to new processors – Fiona Rotherham:

(BusinessDesk) – Fonterra Cooperative Group, New Zealand’s largest dairy processor, says it’s holding its own in the dairy-intensive Canterbury region, despite reports some of its 10,600 farmers shareholders are lining up to supply milk to its competitors in the wake of its weak interim results last week.

Farmers were disappointed with the half-year results, which included a 16 per cent drop in profit to $183 million and a trimming of the forecast dividend payout for the year by 5 cents to a range of between 20 cents and 30 cents. Faced with a low forecast payout of $4.70 per kilogram of milk solids this season compared to a record $8.40 kg/MS last season, farmers had been expecting a fatter rather than skinnier dividend from its value-added activities. . .

Search on for 2015 Young Horticulturist of the Year:

A nationwide search begins this week for young men and women who exemplify the leadership qualities that have earned New Zealand’s primary products the trust of consumers all over the world.

Starting this April, young horticultural leaders from every corner of New Zealand will compete in six sector competitions to qualify as a finalist in the Royal NZ Institute of Horticulture Education Trust’s ‘Young Horticulturist of the Year 2015 Competition’.

2014 overall winner, Northland orchardist and horticultural business owner, Patrick Malley, believes that despite the ups and downs the primary sector has faced in recent times, New Zealand’s value as a leading producer of primary products comes from the high levels of trust this country’s products enjoy overseas. . .


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