Rural round-up

September 10, 2019

2050 deadline to improve freshwater in New Zealand – Rachael Kelly and Gerard Hutching:

A lobby group says some Southland farmers may abandon their land because of new water rules but the agriculture ministers says it’s a ridiculous statement to make.

Agriculture minister Damien O’Connor and Environment Minister David Parker released a draft National Policy Statement and National Environment Standards: Freshwater, on Thursday.

They propose changes to farming practices and new rules for councils, aiming to stop the degradation of waterways and clean up rivers and lakes within a generation.

Southland Federated Farmers president Geoffrey Young says some of the rules nitrogen may be able to be met but the numbers around freshwater may just be a step too far and there is going to be a significant financial cost. . . 

Water policy is doomed to fail – Aan Emmerson:

I can’t see anyone in the provincial sector being remotely surprised at the draconian nature of Environment Minister David Parker’s policy announcement on water quality.

For a start, Parker told us in June there would be tighter regulation of the agricultural sector.

He also made the earth-shattering statement he would regulate what, in his view, were some of the riskier farming practices.

Last Thursday’s statement came in three parts, a diagram, a bland summary then the actual document, all 105 pages of it.

Climate change Bill concerns for SFF – Brent Melville:

Silver Fern Farms, the nation’s largest procurer and exporter of red meat, has tabled “significant concerns” related to the economic impacts of the Government’s proposed climate change response Bill.

In its submission to the environment select committee this morning, the company said while it supported the Bill’s ultimate temperature increase goals, it had concerns specific to methane reduction targets, the inability of farmers to offset the warming effects of biogenic methane and processor obligations for farm emissions.

Silver Fern Farms head of communications and sustainability Justin Courtney said the submission had largely been informed by discussion with more than 750 of the company’s 15,500 farmer suppliers across New Zealand. The zero carbon proposals as tabled were “top of the list of farmers’ concerns”, he said. . . 

The unpopular tree sucking carbon from our air – Eloise Gibson:

Pinus Radiata grows like a weed, which is why it’s so fast at sequestering carbon. But since many people prefer native trees, forestry scientists are proposing an unconventional solution to get the best of both worlds.

To measure how much carbon is in a tree, you first have to kill it.

You slice up the trunk, branches, twigs, leaves and roots and dry the dismembered tree parts in an oven. Then you weigh them.

“It takes a long time,” says Euan Mason, a professor at the University of Canterbury’s School of Forestry. “I did some in 2012 with two students, and in six weeks I think we did 25 trees.” . . 

New campaign promotes wool’s benefits – Brent Melville:

Recent experiments in Japan measured the efficiencies of using wool carpet versus a synthetic option in two identical houses.

The wool option resulted in electricity savings of between 8% to 13%, with additional savings of up to 12% for cooling under the same conditions.

It is one of the fast facts contained in an informative and highly stylised campaign, designed to educate international frontline carpet and other retailers on the benefits of strong wool.

The “back to basics” approach is the brain child of wool sales and marketing company Wools of New Zealand (WNZ), in the belief that frontline retailers are neglecting the natural benefits of the fibre in the rush to sell synthetic product.

The heart of the programme is a 12-part “wool benefits” marketing campaign, which the company says has resonated strongly with local and international customers alike. . . 

NSA celebrates ban on false advertising about wool:

The National Sheep Association (NSA) is pleased to see the response by the Advertising Standards Agency (ASA) banning some misleading advertising from PETA propagating the lie that wool is cruelly obtained from sheep.

NSA Chief Executive Phil Stocker comments: ‘NSA is pleased to hear this decision by ASA that exposes PETA’s advertising for what it is, grossly inaccurate jargon which is misleading the public as well as damaging farmers reputations and livelihoods. The simple undeniable fact is that removing wool from sheep is necessary for their health and welfare. It does not harm them, and it does not exploit them. Wool is a by-product of their existence.”

Following reports of cruelty during shearing last year (2018), NSA joined with several other industry bodies to create a clear set of guidelines for farmers and shearing contractors to follow to ensure they shear to the highest standard possible. . . 


Rural round-up

October 17, 2018

Big Nelson irrigators line up to complete finance for Waimea Dam as private investor pulls out – Pattrick Smellie:

(BusinessDesk) – Large-scale Nelson-based agricultural interests have stepped in to provide the final $11.5 million needed to finance the Waimea dam project, after an unnamed private investor pulled out of the deal.

The irrigators, who had previously said they had no resources of their own to complete the project, appear to have found the money and stepped back in, after deciding the private investor’s demands were becoming greedy.

BusinessDesk understands the Waimea Plains water users, including dairy farmers, horticulturalists and winemakers, became more comfortable about putting up their own capital when they realised they could use the same convertible notes financing formula for reducing their investment risk as the private investor had been proposing. . . 

 Local farmers help fund $102m Waimea Dam plans – Eric Frykberg:

Funding details of the revived Waimea Dam scheme near Nelson have been made public. 

They involve 14 agricultural businesses agreeing to provide an extra $11.5 million to Waimea Irrigators Limited for the project.

The proposed dam would be 53m high and store 13 million cubic metres of water in a 70ha lake in the Lee Valley, inland from Richmond. . .

NZ red meat exports top $6.7 billion in 2017-18:

Latest export figures from Beef + Lamb New Zealand (B+LNZ) show New Zealand’s red meat exports (excluding veal and co-products) were up $1.2 billion (21 per cent) on 2016-17 to over $6.7 billion in 2017-18 on the back of sustained high value per tonne and increased volume for lamb, mutton, and beef.

“While the highlights of the season were record high average values per tonne for lamb and mutton, the average value of beef exports remained high since the marked increase in 2014-15,” says B+LNZ’s Chief Economist Andrew Burtt.

“Good farm-gate prices and strong average values per tonne for exports occurred throughout the season, even during the fast start to the processing season driven by the dry conditions in December 2017.” . . 

Responsibly grown New Zealand wool blazes a new trail:

UK retail giant Marks & Spencer (M&S) has become one of the first major clothing retailers to launch a menswear range with wool certified under the global Responsible Wool Standard (RWS).

The launch reflects the increasing importance that retailers are placing on developing truly sustainable products, underpinned by ethical land management and animal welfare practices by farmers.

The new range of men’s blazers and waistcoats feature New Zealand lambswool, grown by RWS-accredited, Wools of New Zealand growers. . . 

Brewers hop on to opportunity to boost market gains

Backers of a new $13 million hop breeding programme hope it will bolster exports by creating a signature style of New Zealand beer.

Wellington craft brewer Garage Project and Nelson-based hop grower Freestyle Farms are committing $7.95 million to the seven-year project.

The remaining $5.3m is being delivered by the Ministry for Primary Industries through its Primary Growth Partnership programme. . . 

EPA chemical reassessment rational, says Agcarm:

A strong food supply and healthy livestock are vital for the future of New Zealand’s primary industries and economy. The government reviews the tools that play an essential role in the fight against pests and diseases that threaten these.

The Environmental Protection Authority (EPA) today announced its decision on the chemicals it will reassess. Part of this review evaluates the benefits and potential health risks posed by pesticides – ensuring they meet environmental and health safety standards.

The EPA has ranked 727 chemicals with an A to F ranking, with A being the most harmful. Despite recent attention, Glyphosate has been given an E rating (low risk). . . 

On the farm: What’s happening around rural NZ:

What’s happening on farms and orchards around New Zealand? Each week Country Life reporters talk to people in rural areas across the country to find out.

Te Ika-a-Māui/North Island

In Northland, temperatures have been nice and warm during the day all week but nights have been cooler, which means pasture growth is good but yet to hit full stride. Some farmers have delayed putting in summer crops like maize and turnips for another week while waiting for warmer temperatures. There has been concern about this week’s announcement on Fonterra’s milk prices but our correspondent says overall people are positive – so long as that milk price has a 6 at the front, things should be relatively healthy.

The first of the early potatoes are now being harvested in Pukekohe under dry conditions and in hard soil. The rain arrived on Thursday and Friday. Although the amount may struggle to reach 25milimetres, it will be close and useful for a few days. . . 

Search begins for next Kiwi delegate to ‘plant their path’ at the 2019 Youth Ag Summit in Brazil:

100 young agricultural enthusiasts aged 18 – 25 from across the globe will be chosen to attend the summit in Brasilia, Brazil in November 2019
• One lucky Kiwi delegate will be chosen to represent New Zealand on the world stage
• This year’s theme: how to feed a hungry planet in a more sustainable manner 
• Applications are now open until January 10, 2019

Now’s the time to step up and share your ideas with the world – that’s the call from Bayer New Zealand, which is on the lookout for a Kiwi delegate to represent New Zealand at the Youth Ag Summit in Brasília, Brazil from 4th – 7th November, 2019. . . 

New Zealand’s Extra Virgin Olive Oil Awards – top honours announced:

Winners in New Zealand’s most prestigious competition for olive oil were announced last night at a formal dinner held in Masterton. The New Zealand Extra Virgin Olive Awards are run by Olives New Zealand, the national organisation for olive oil growers.

Loopline Olives from Wairarapa took out the 2018 Best in Show as well as Best in Class in the Commercial Medium Single Varietal Class with their Loopline Picholene. Loopline also took out Reserve Best in Show with their Loopline Picual which was Best in Class in the Commercial Intense Single Varietal Class. . . 

Biosecurity Award finalists reflect huge national effort in biosecurity:

There is a heartening national effort taking place to safeguard the country’s biosecurity, says New Zealand Biosecurity Awards judging panel Chair, Dr John Hellstrom.

“We were excited to receive over 60 very high calibre entries, making the judging task difficult, but rewarding,” Dr Hellstrom says.

The Biosecurity Awards were established two years ago to recognise and celebrate exemplary contributions to protecting our taonga (precious natural resources) and ensuring New Zealand’s biosecurity system remains resilient, effective, and world-leading. . . 


Rural round-up

August 23, 2017

Hard work earned admiration of all:

WHEN it came to work ethic, it would be hard to look past legendary North Otago market gardener Reggie Joe.

For more than 45 years, Joe’s Vegie Stall on State Highway 1 at Alma has been a landmark. From humble beginnings as a small roadside stall with an honesty tin, the business expanded to a busy operation, attracting a loyal following of customers.

His wife Suzie acknowledged it was his garden and customers that Mr Joe put first, followed by his family for whom he did it all.

His ambition in life was simple; to create a better future for his four children. Having known hardship firsthand, he was determined they would receive a good education.

Mr Joe died peacefully, surrounded by his family, in Dunedin Hospital on June 8, aged 82. . . 

Primary industries feel under siege as prospect of Labour-led govt firms:

INSIGHTS ABOUT THE NEWS – The divide between regional and urban politics is being thrown into ever sharpening contrast as the election campaign unfolds. Agricultural industries and rural communities feel under siege in the looming election.

As reported in Trans Tasman’s sister publication The Main Report Farming Alert, weeks ago the chances of a Labour-led government seemed unlikely, but now the chance of this happening seems possible with policies which could prove ruinous for NZ’s main export industries.

Labour will tax users of water, including farmers (but not those companies using municipal supplies). Both the Greens and Labour are committed to bringing agriculture into the emissions trading scheme and say the carbon price should be higher. They have not stated how high they want animal emissions to be taxed. . . 

Farming leaders pledge to make all rivers swimmable – Gerard Hutching:

Farming leaders representing 80 per cent of the industry have pledged to make all New Zealand rivers swimmable, although they don’t say how or by when.

Confessing that not all rivers were in the condition they wanted them to be, and that farming had not always got it right, the group said the vow was “simply the right thing to do”.

Launching the pledge by the banks of the Ngaruroro River in Hawke’s Bay, spokeswoman for the group and Federated Farmers president Katie Milne said the intent behind the commitment was clear. . . 

Swimmable means swimmable:

Agricultural leaders have, for the first time ever in New Zealand, come together to send a strong message to the public.

We are committed to New Zealand’s rivers being swimmable for our children and grandchildren.

DairyNZ chair, Michael Spaans, says “this is a clear message from New Zealand’s farming leaders that we want our rivers to be in a better state than they are now, and agriculture needs to help get them there.

“I have joined my fellow leaders to stand up and say that I want my grandchildren, and one day my great grandchildren, to be able to swim in the same rivers that I did growing up. . . 

Farmers’ river pledge welcomed:

A new pledge by farming leaders to improve the swimmability of New Zealand’s rivers has been welcomed by Primary Industries Minister Nathan Guy and Environment Minister Dr Nick Smith.

“This pledge from farming leaders shows the real commitment farmers have to tackling these long term issues,” says Mr Guy.

“Farmers are closer to the land to the land than nearly anyone else, and they care deeply about leaving a good legacy for their children. . . 

Hundreds expected for launch – Sally Rae:

When a book on the history of the Wilden settlement is launched this month, it will also serve as a reunion.

Wilden — The Story of a West Otago Farming Community — has been written by Dunedin man Dr David Keen.

The driving forces behind the project were retired Wilden farmer Bill Gibson, now living in Mosgiel, and Neil Robinson, from Wanaka.

In the late 1860s, the discovery of gold at Switzers, now Waikaia, further sparked West Otago’s development. . . 

Keen advocate of the tri-use sheep – Sally Rae:

Growing up on a sheep and beef farm in Invercargill, Lucy Griffiths and her siblings were not allowed to leave home without  a woollen garment.

The many benefits of wool were drummed into them from an early age, not only as a fibre to wear but also as one to walk on and use in innovative ways.

But somewhere since then, strong wool had “lost its gloss”, and Mrs Griffiths wants to play her part in re-educating consumers about those benefits.

She is one of three new appointments to the board of Wools of New Zealand, a position she felt was a “big mantle of responsibility”. . .

Dispath from NZ no. 3 conflict, collaboration and consensus – Jonathan Baker:

New Zealanders are generally though of as pretty relaxed; but having spent ten days here it’s clear that the current debate around farming is anything but. From the Beehive (NZ’s parliament) to the kitchen tables of farmers, there is a very strong sense of tension. Most I talked to present farmers on one side and ‘townie’ environmental groups on another.

The main cause of the tension is the state of New Zealand’s water quality. This issue has jumped up the public agenda over the last 10 years and is now a pretty substantial issue in the upcoming election. Environmental groups, notably Greenpeace have done much to start this debate and the impact of their ‘dirty dairy’ campaign can even be felt in the UK. . .

My great-grandfather fed 19 people, my grandfather fed 26 people, my father feeds 155 people I will feed 155 and counting . . . embracing technology a family tradition.


Rural round-up

July 31, 2017

MPI urges vigilance – Annette Scott:

While he may be the first in New Zealand to have the cattle disease Mycoplasma bovis detected on his farm, South Canterbury dairy farmer Aad van Leeuwen is confident he won’t be the last.

The Ministry for Primary Industries notified the detection of Mycoplasma bovis (M. bovis) disease on a South Canterbury dairy farm on July 25, but the identity of the property wasn’t revealed until four days later, on Friday, prompting speculation to run rife meantime.

Devastated that the disease – listed as an unwanted organism under NZ’s Biosecurity Act 1993 – had hit his dairy operation, van Leeuwen said he was co-operating 100% with MPI. . .

Japan frozen beef tariffs expected – Alan Williams:

New Zealand beef exporters are facing 50% tariffs on frozen exports to Japan over the next eight months.

Suppliers in this country have been caught in the reaction to big shipments from Australia, and especially the United States this year, so that total volumes have reached a trigger point at which the Japanese government has decided it needs to protect domestic farmers. . .

Give up farming generate power – Neil Malthus:

Farmers installing solar power can now get a better return from it than from farming itself, a solar power installer claims.

Electrical contractor Andrew Wells, of ABW Electric, Christchurch, recently set up Sunergy Solar to market solar photovoltaic systems. His company specialises in farm installations, marketed at farming field days and A&P shows; it also does residential systems.

Wells sees huge potential for solar power on farms: electricity charges for a dairy shed average $5000 – $6000 a month and solar panels now cost only about 8% of what they did 10 years ago. . . 

More wool needed for a brighter future – WNZ – Pam Tipa:

Greater sales volume is critical for Wools of NZ, says chair Mark Shadbolt.
The trademarked scouring process Glacier XT will be a more volume-focused business, he says.

“That will create lot more demand. It is creating a wool that is a lot whiter and brighter and is the sort innovation and technology we need to invest in to add value to the wool.

“We have had a lot of interest in the market for it because the brightness is the key aspect that the industry hadn’t been able to acquire until this technology became available.” . .

Southland a winner – Sonita Chandar:

Southlander Katrina Thomas knew “absolutely nothing about cows” when she and husband James Dixon converted to dairy farming.

But she turned that lack of knowledge around by joining the Dairy Women’s Network (DWN) and volunteering her time to the community.

It is this generosity that saw her win the 2017 Dairy Women’s Network Dairy Community Leadership award. . .

NZ’s prosperity still tethered to farm gate – Liam Dann:

There’s nothing like a biosecurity scare to remind us that New Zealand’s economic prosperity is still – for better or for worse – tethered to the farm gate.

The instant that news of the Mycoplasma bovis outbreak in South Canterbury hit the headlines last Tuesday the dollar plunged.

Luckily it only dropped 20 basis points (0.2 per cent) before it became apparent that this was a more benign disease than foot and mouth.

But it was enough to put a deep V shape in the daily dollar chart and illustrate how quickly a more serious outbreak could take this country to the brink of recession. . .

Fonterra Australia increase farmgate milk price for the 2017/18 season:

Fonterra Australia has today advised its farmers of an increase of 20 cents per kilogram of milk solids (kgMS) to its farmgate milk price for the 2017/18 season, bringing its average farmgate milk price to $5.50kgMS. The increase will apply from 1 July 2017 and will be paid on 15 August 2017.

Fonterra’s additional payment of 40 cents/kgMS is payable on top of the revised farmgate milk price, and brings the total average cash paid to $5.90kgMS.

Fonterra Australia Managing Director René Dedoncker said that improved market conditions and the strength ohf the Australian business supported this step up. . . .


Rural round-up

August 23, 2016

Young Maori woman brings important cultural perspective to dairy farming:

Lincoln University student Ash-Leigh Campbell, 25, is one of the bright lights of Maori agribusiness in New Zealand.

Recently named as a finalist in the prestigious 2016 Ahuwhenua Young Māori Dairy Farmer Award – the first ever woman to make the finals of the dairy category – Campbell, who is of Ngāi Tahu descent, is passionate about bringing a Maori perspective to the dairy industry.

She graduated with a Diploma in Agriculture from Lincoln University earlier this year, and is currently studying towards a Diploma in Farm Management at Lincoln University. Her sights are set on doing a Bachelor of Commerce and Agriculture next year. Campbell is also an active member of the Dairy Women’s Network Lincoln University branch, and is involved with other industry groups. . . 

Irish Ag role mooted– Peter Burke:

New Zealand banks may have to play a social role with farmers, as do European governments, claims Professor Alan Renwick of Lincoln University.

Renwick says in NZ, with its free market approach, there is an expectation that banks, not governments, will see farmers through troubled times.

He says the EU’s Common Agricultural Policy (CAP), though much criticised for supposedly keeping farmers on the land when they should not be, in fact has other good points which help manage some of the volatility in the market. . . 

Wool stoush positive – Pam Tipa:

An attack on Wools of New Zealand by its former chief executive has turned out to be a positive, claims chairman Mark Shadbolt.  

He says plenty of backing has emerged to keep going.  

“We have had a strong acknowledgement of support not only from growers, but from the industry in NZ and globally,” Shadbolt told Rural News. . .

Synlait Milk And the A2 Milk Company Reaffirm Infant Formula Supply Arrangements:

Synlait Milk Limited (Synlait) and The a2 Milk Company Limited (a2MC) are pleased to announce a new supply agreement between the two groups for the production of a2 Platinum® infant formula.

The agreement strengthens the current business relationship between a2MC and Synlait by providing certainty around medium term growth plans.

Current production volumes remain the same, but appropriate provisions allowing for increased scale to meet market demand in the medium term have been made.

“We are very pleased to have concluded negotiations in relation to our supply relationship with Synlait. We’ve maintained appropriate flexibility to assess new product and market opportunities as they arise,” said Geoffrey Babidge, Managing Director and Chief Executive Officer of a2MC. . . 

Comvita posts 15-month profit of $18.5M, lowers dividend ratio to pursue ‘opportunities’ – Jonathan Underhill:

(BusinessDesk) – Comvita, the manuka honey products company, posted a 15-month profit that broadly met its guidance while lowering its dividend payout ratio to chase “growth opportunities”.

Profit was $18.5 million in the 15 months ended June 30, after Comvita changed its balance date, from $10.2 million in the 12 months ended March 31, 2015, the Te Puke-based company said in a statement. Comvita reported profit of $17.2 million in the 12 months ended March 31, 2016, and had said that as the April-June quarter was typically Comvita’s quietest the 15-month result was likely to be in line with the 12 months to March 31. . . 

Wine industry converges in Marlborough:

Around 500 grape growers, winemakers, and industry leaders will converge in Marlborough this week to learn, discuss and network at the wine industry’s annual Romeo Bragato Conference.

“In the past year we’ve seen continued strong demand in our key export markets,” said New Zealand Winegrowers CEO, Philip Gregan.

“This year Bragato is all about working to protect the reputation for quality we’ve attained, and gaining a clear understanding of key market and production trends.” . . 


Rural round-up

August 15, 2016

Unreliable rain reduces sheep numbers – Kate Taylor:

The seasons are changing at Patoka Station and less reliable rainfall is affecting the way it’s farmed. Kate Taylor reports.

It looks green but the grass is much shorter than normal for late winter on Patoka Station in Hawke’s Bay.

That picture is about to change, though owners Ben and Suzie Crosse are unaware of it as they discuss their upcoming lambing, starting from August 31. A storm is approaching the central North Island and will dump 190mm of freezing-cold rain on the 1200ha farm.

The farm has monthly records going back to 1948 but the rainfall hasn’t been reliable lately, Ben says. . . 

Biggest year’ ever for avocado growers

With avocados back on the menu, New Zealand growers are gearing up for their best season ever.

That’s according to John Carroll, director of the country’s largest exporter Avoco, who says his firm expects to ship off about 3.2 million trays of the fruit in the coming months.

In total, 5.1 million trays, about 28,000 tonnes, are predicted to depart our shores, mainly bound for Australia and Asia. . . 

Forest industry’s challenge to manage supply fluctuations:

The pan forest and timber processing industry organisation, the New Zealand Wood Council (Woodco) says there is a supply challenge for many regions in the domestic processing industry.

Woodco Chair, Brian Stanley says timber processors are being hindered by a current lack of logs, especially in the higher grades.

He says small scale woodlot owners are being enticed into quick export contracts instead, where the buyers are not providing the domestic processors with an opportunity to purchase these logs. . . 

Deputy PM Bill English visits Blue River dairy factory – Dave Nicoll:

It was a bit surreal for Deputy Prime Minister Bill English to see award winning cheeses named after places his mother grew up.

English made a special visit to the Blue River Dairy factory in Invercargill on Friday as part of a trip to the Southland region.

Blue River Dairy produced a number of award winning cheeses, and milk powder from sheep milk and has expanded into exporting sheep milk baby formula into China. . . 

Fonterra Announces New Palm Products Sourcing Standard:

Fonterra has adopted a new standard for sourcing of palm products as part of its commitment to sustainability.

The standard was developed in consultation with key supply partners, and it follows discussions with Greenpeace that began in December 2015 to strengthen Fonterra’s existing sustainable palm products sourcing procedures.

“The new standard requires us to purchase only segregated supply palm oil by 2018, and to work with suppliers of palm products to ensure that plans are in place for full traceability to plantation by 2018,” said Fonterra’s Director of Social Responsibility, Carolyn Mortland. . . 

Action to help farming productivity in Manawatu-Whanganui:

Primary Industries Minister Nathan Guy says $465,000 towards primary sector initiatives in the ‘Accelerate 25 Manawatū-Whanganui Economic Action Plan’ launched today will make a real difference to the region.

“Manawatū-Whanganui has the largest sheep flock and beef herds of any region in the country, and half of New Zealand’s lamb exports come from within two hours’ drive of Feilding. We need farming to do well to drive economic prosperity here,” says Mr Guy.

Speaking at Ross and Wendy Humphrey’s farm in Cheltenham, Mr Guy says much of the funding will be used for information sharing to lift productivity.   . . 

Report shows good results from flood recovery money:

A report on Government assistance to farmers following the June 2015 Taranaki-Horizons storm shows that good results were achieved, says Primary Industries Minister Nathan Guy.

“These storms had a major impact on the region and caused widespread damage, so it’s pleasing to see that Government funding has made a real difference,” says Mr Guy.

“The storm on 18-20 June 2015 brought widespread heavy rainfall, flooding and erosion to the Taranaki and Horizons regions. Hill sheep and beef farmers were particularly affected by flooding of river margins and damage to tracks and fences, with damage also to dairy land and young forest plantations.” . . 

Wools of New Zealand well set for end of grower-funding

Wools of New Zealand (WNZ) Chairman Mark Shadbolt says the company is making strong commercial progress with an expected maiden profit for the 2016 financial year.

Shadbolt was responding to a recent shareholder comment in a local rural newspaper that the company would “almost certainly fail” without income from farmers’ Wool Market Development Commitment (WMDC).

“To the contrary, WNZ is making investments that are reducing the company’s reliance on the WMDC.” . .

Commission releases draft report on Fonterra’s 2015/16 base milk price calculation:

The Commerce Commission today released its draft report on Fonterra’s base milk price calculation for the 2015/16 dairy season. The base milk price is the price Fonterra pays to farmers for raw milk and it is currently set by Fonterra at $3.90 per kilogram of milk solids for the 2015/16 season just ended. The report does not cover the forecast 2016/17 price of $4.25 that Fonterra recently announced.

The Commission is required to review Fonterra’s calculation each year at the end of the dairy season under the milk price monitoring regime in the Dairy Industry Restructuring Act (DIRA).

Deputy Chair Sue Begg said Fonterra’s calculation of the 2015/16 base milk price is consistent with both the efficiency and contestability purposes of DIRA. . . 


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