Rural round-up

18/09/2021

Group gets go-ahead to buy Catlins station for forestry – Sally Rae:

Ingka Group — one of 12 different groups of companies that own Swedish furniture and homeware giant IKEA — has got the green light to buy a 5500ha sheep and beef station in the Catlins for forestry development.

Following recent approval by the Overseas Investment Office, an area of 330ha at Wisp Hill , in the Owaka Valley, would soon be planted with radiata pine seedlings

The long-term plan was to have a total of 3000ha — more than three million seedlings — planted in the next five years and the remaining 2200ha would ‘‘naturally regenerate into native bush’’, a statement from the company said.

Ingka Group owns about 248,000ha of forestry in the United States, Estonia, Latvia, Lithuania and Romania. Between September 2019 and August 2020, Ingka Group planted close to seven million seedlings. . . 

The yo-yoing fortunes of the darling of the stock market – The Detail:

It used to be the darling of the share market, racing from 75 cents before sales of its infant milk powder took off, peaking at more than $21 last year.

But the a2 Milk Company’s meteoric rise is now tumbling, struck by complications by Covid.

Today on The Detail Emile Donovan talks to Sam Dickie, a senior portfolio manager at Fisher Funds, to talk about the company’s roller coaster ride, and how one of its greatest strengths – its unusual distribution channel – has become its greatest weakness.

Between 2017 and 2020, a2 Milk’s share price rose more than 900 percent. But over the past 13 months it has fallen by nearly 75 percent. . . 

Unhappy farmers are missing an important point – policy changes are what customers want to see – Craig Hickman:

It is much easier to say no to new ideas and just accept the status quo than it is to embrace change. Change can be scary.

Fonterra changed, it became more honest and transparent in its communication with farmers, and completely transformed the way it deals with the Government. It became better at articulating what it wants from suppliers.

Plenty of farmers don’t like this change, this new collaborative approach, and four years on they are still muttering that the dairy co-op is cosying up to the enemy.

Slowly but surely, with the odd hiccup along the way, farmer advocacy groups like Beef & Lamb, DairyNZ and Federated Farmers have adopted the same approach and given the same reasoning; it’s much more fruitful to work collaboratively with whoever is in power than to shout impotently from the sidelines. . . 

Young Farmer of the Year winners on the wealth of opportunities in ag :

On August 22, 1969, Gary Frazer from Swannanoa was crowned the inaugural Young Farmer of the Year, the same year that the first Fieldays event was launched at Te Rapa Racecourse.

Over 50 years later, the competition still stands as a staple event in the rural calendar and an opportunity for rural youth to come together and showcase their skills, knowledge, and stamina. The current and past Young Farmer of the Year, Jake Jarman and James Robertson, are young agri professionals trailblazing through the primary sector in their respective fields.

Jake Jarman gained the title, 53rd Young Farmer of the Year In July. A couple months later, Jake says the excitement surrounding his win has settled now, and he’s getting back to his normal routine, working as a Relationship Associate at ANZ in Ashburton.

“It was definitely a rollercoaster afterwards with lots of celebratory messages, interviews, emails, and what not, so now things have settled down I’ve got my life back a bit!” . .

OFI to build Tokoroa dairy plant for desserts, beverages, baked goods :

An overseas food ingredients company is planning to build a dairy processing plant in Tokoroa in south Waikato.

Singapore-based Olam Foods International (OFI) said the plant would create 50 to 60 full time jobs when fully operational.

OFI expected the first stage of the new investment would be completed in the Spring of 2023. This would involve the construction of a spray dryer facility, capable of producing high-value dairy ingredient products.

OFI has dairy operations in Russia, Uruguay and Malaysia and also grows and sources cocoa, coffee, nuts and spices from other countries. . . 

Commission releases final report on its review of Fonterra’s base milk price :

The Commerce Commission has today released its final report on Fonterra’s calculation of the base milk price it will pay farmers in the 2020/21 dairy season.

The Commission found that Fonterra’s forecast price of $7.45 – $7.65 per kilogram of milk solids for the season is calculated in a way that is likely to be consistent with the requirements of the milk price monitoring regime under the Dairy Industry Restructuring Act (DIRA).

The key areas of the Commission’s focus in this year’s review were two components of the cost of capital (the asset beta and specific risk premium), the appropriateness of provisions for asset stranding, and the inclusion of instantised milk powder as a reference product in the calculation of the base milk price. . . 


Rural round-up

12/06/2021

Canterbury flooding: best friend safe but pain lingers – Adam Burns:

Dave Stewart and his family may have emerged from the floodwaters safe and well.

But the heartache of a flooding catastrophe which ravaged the Mid-Canterbury district has not subsided for the Greenstreet dairy farmer who was evacuated alongside wife Maree and son TJ on Sunday 30 May.

The image of 10-year-old dog Max being guided onto a truck by a member of the New Zealand Defence Force during the evacuation circulated across national and international channels as news broke of the Canterbury region being lashed by a one-in-100-year rain event.

As Stewart, 67, surveyed the damage to the 200ha family farm yesterday, which he said was going to absorb significant time and costs, there was only one feeling that came to mind. . . 

We are good at agriculture and we can be proud of it – Derek Moot:

Prof. Derrick Moot, head of the Dryland Pastures Research team at Lincoln University and a keynote contributor to MakingMeatBetter.nz, gives his thoughts on the NZ farming industry.

The adage ‘the consumer is king’ has never been more pertinent than it is today for New Zealand’s animal agriculture sector. What consumers think about our products, how they feel when they eat them, and their perceptions of how it’s produced, have become something of a national obsession.

After all, 40 per cent, or $17.4 billion worth of our annual export income, relies on global consumers continuing to place value on the animal-sourced products we produce – and preferably at a premium.

In this Covid-ravaged world, that export income has never been more important for Aotearoa. . .

Fears for productive farmland – Shawn McAvinue:

An overseas investor is seeking to buy a sheep and beef station in South Otago, sparking fears the productive farmland could become a carbon forestry block and force families out of the community.

A Land Information New Zealand spokeswoman said an application had been lodged at the Overseas Investment Office for the acquisition of the 5499.25ha sheep and beef farm Wisp Hill Station in Owaka Rd in Owaka Valley.

“The application is currently being processed and we do not know when a decision will be made.”

All other information relating to the application remained confidential, she said. . . 

LIC announces deal to divest automatum business:

Livestock Improvement Corporation (NZX: LIC) announces it has entered into an agreement to divest its automation business to MSD Animal Health, a division of Merck & Co., Inc., Kenilworth, N.J., USA (NYSE:MRK) for an amount of NZ$38,100,000 and subject to a working capital adjustment.

The LIC Automation product portfolio joins Allflex Livestock Intelligence (a business unit within MSD Animal Health which has manufacturing facilities at Palmerston North New Zealand).

Completion of the transaction is subject to customary requirements and the transaction is expected to complete on or about 11 June 2021.

The transaction includes the following: . . 

HortNZ welcomes Government Integrated Farm Planning (IFP) guidance:

Horticulture New Zealand says fruit and vegetable growers can meet new farm planning requirements, through adapting existing Good Agricultural Practice (GAP) programmes.

‘The farm planning principles and requirements announced by the Agriculture Minister today largely mirror existing GAP plans, which are integrated farming planning programmes,’ says HortNZ President, Barry O’Neil.

‘That said, as an industry, we will be reviewing our GAP programmes to see if there are any areas that we need to strengthen.’

Barry says that HortNZ and industry bodies have been working closely with growers on integrated GAP plans for more than 20 years. . .

Waikato Milking Systems at Fireldays 2021: Introducing CowTRAQ collars and  DairyHQ dairy management system:

Dairy farmers operating in a complex, modern industry can find the solutions to the challenges they’re facing, by partnering with Waikato Milking Systems at this year’s National Fieldays.

The dairy technology company will showcase new products aimed at helping farmers make decisions on how to improve efficiency and productivity, to meet the unique conditions of their operation.

There will also be a focus on helping farmers improve the milk quality of their herds, with labour-saving and data collection technology already tested around the world, from large-scale commercial operations to the traditional family-owned farms. . . 


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