Rural round-up

All change this election -Andrew Hoggard :

This election hasn’t been the best advertisement for democracy.  I cannot recall when a Minister quit Cabinet during an election campaign but the actions of bloggers, hackers, emails and a political feeding frenzy, distract us from the real issues.

I’m pretty certain my Grandfather, who spent close on four years inside POW camps, would be spitting tacks if he were still around today and saw the impact a German playboy was having on our democracy.

After the election we could see political parties giving two fingers to the traditional baubles of office in favour of what’s called the cross-benches. What that means in practice is that the Opposition cannot afford to attack you while the government has to go cap and hand on every single policy.  It makes for electoral gridlock.  A tyranny of the minority.

I’d like to give this farce a wide berth but it impacts upon what farmers do. . .

World is a step closer to low-emission sheep – Jamie Morton:

The world is a step closer to a low-emission sheep, thanks to leading work by Kiwi and US researchers.

Methane belched from sheep and other ruminants, such as cows, accounts for around 28 per cent of global methane emissions from human-related activities.

The methane is produced in the rumen by microbes called methanogens and the work targeting these organisms is aimed at reducing methane emissions from ruminants.

New Zealand has the largest methane emission rate — six times the global average — and this primarily comes from enteric fermentation in ruminant livestock, with sheep the greatest single source. . . .

Move to save yarn business – Alan Williams:

Primary Wool Co-operative (PWC) group has confirmed its bid to save the last wool-spinning business in the southern hemisphere, Christchurch Yarns (NZ).

It has given itself less than a month to raise $3 million in equity to fund the purchase of the operating assets of Christchurch Yarns from the company’s receiver.

Directors and main shareholders Bay and Hamish de Lautour are putting in $150,000 between them to a new company, NZ Yarn, as a show of confidence to other potential investors. . . .

Taratahi Signs MOU with China:

On September 4 Taratahi Agricultural Training Centre signed a memorandum of understanding with the China Rural Technology Development Centre (CRTD).

CRTDC sits under the Ministry of Science and Technology. They are committed to promoting technological progress for all aspects of rural development in China by maintaining close ties with relevant rural science and technology management authorities, research institutes and universities in China as well as other international organisations.

The MOU focuses on improving the cooperation between New Zealand and China in terms of agricultural policy research, technology training and livestock breeding and encourages cooperation and communication of the governments, universities and corporations of both countries, to improve global agricultural sustainable development. . .

 

Butter prices soar in the US:

Butter futures reached an all-time high in Chicago as Americans’ rising appetite for the fatty dairy spread and rising exports erode US inventories.

Domestic consumption is projected to rise 0.8 per cent to 788,000 metric tons in 2014, according to the US Department of Agriculture. That would be the second-highest ever in data going back to 1965. Shipments in the first six months of the year were up 42 per cent from 2013.

Demand is rising as milk production trailed analyst expectations, while fat content, used to make butter, is also dropping, according to Eric Meyer, the president of Chicago-based HighGround Dairy. . .

Nominations Have Closed for the 2014 Fonterra Elections:

Nominations for the 2014 Fonterra Elections closed at 12 noon today.

The candidates for the Fonterra Board of Directors’ Election will be announced on Tuesday, 23 September 2014 following the completion of the Candidate Assessment Panel (CAP) process.

The Returning Officer, Warwick Lampp, confirmed there will be no election for the Directors’ Remuneration Committee, as Shareholders Murray Holdaway and Philip Wilson have been elected unopposed.

Nominations were also called for candidates for the Shareholders’ Council in 22 wards. An election is required in four wards, as follows: . . .

 

Give other options a ‘WIRL’ – Wools of New Zealand:

Wool research behind the farm gate was important but needed to be attached to work already being undertaken in the wool industry, says Wools of New Zealand in its wool levy position paper released today.

The grower owned wool marketing and sales company says while it is important for all growers to have their say, they need to be “armed with the facts relating to costs, benefits and possible alternatives before they vote.”

While WNZ agrees there is a need for additional training and tech transfer both inside the farm gate and beyond, it believes these functions can be provided by existing agencies such as Tectra and AgITO while there were also other options to creating yet another structure in an already cluttered industry. . .

 

Rural round-up

Farmers back irrigation feasibility study:

A planned large-scale irrigation scheme in South Canterbury has got enough farmer backing for it to carry out an in depth feasibility study.

The Hunter Downs Irrigation Scheme, which could irrigate up to 40,000 hectares of land from Waitaki to just south of Timaru, also has significant financial backing from the Government.

Hunter Downs Irrigation chairman Andrew Fraser says they’ve been going through a capital raising process over the last several weeks – and have managed to get over the threshold of 20,000 hectares of farmer uptake.

“This funding will enable us to do a feasibility study and so that will tell us whether the scheme is economically and technically viable so we hope to have that result back out to the shareholders and farmers by the end of the year.”

Mr Fraser says the capital raising period has been extended as the scheme gauges corporate interest and speaks to more farmers in the area. . .

Winners committed to pushing farming change – Gerald Piddock:

Mike and Sharon Barton’s innovative approach to farming in an environmentally sensitive area has earned them the supreme title in the 2014 Waikato Farm Environment Awards.

The Western Taupo beef farmers were presented with the award as well as category awards for soil management and innovation at a ceremony near Karapiro last night.

The Barton’s farm at Glen Emmreth Farm near Tihoi. They purchased the 142ha property in 2004 at a time when strict environmental legislation to protect the health of the lake was looming.

They faced this challenge head-on, determined to make their farm as environmentally sustainable as possible. . .

Farmers warned to tidy up act:

Federated Farmers is warning farmers not to risk making the dairy industry a scapegoat at this year’s general election through poor farm practices.

In a message to farmers, dairy chairman Willy Leferink said he was worried they could be negatively portrayed during the election campaign and they needed to do the basics properly to avoid bad publicity.

Visual aspects of the industry needing to be tidied up, and that could help create a better public image, Mr Leferink said. . .

Call for better health and safety on farms after death –  Collette Devlin:

Farming is a hazardous occupation and the number of injuries and deaths on Southland farms must come down, industry insiders say.

They are calling for better health and safety awareness on farms.

The issue has been put in the spotlight by the tragic death of fertiliser truck driver Les Cain, killed when the truck he was driving overturned on a northern Southland farm on Tuesday.

Southland Federated Farmers president Russell MacPherson said one farm death was one too many.

The old attitude of ‘she’ll be right’ needed to disappear from the industry. . .

Hawke’s Bay Farmers of the Year – Hugh and Sharon Ritchie – RivettingKateTaylor:

Well done to Hugh and Sharon Ritchie – Hawke’s Bay Farmers of the Year.

I’ve just been writing about Hugh lately as I am doing the Nuffield NZ newsletter and he has just retired after 12 years as a trustee (we also went through Young Farmers together, although I hasten to add he is older than me!!!  Hugh, Shane Tilson and I won a national debating final in 1995!)

So last night (back to the important news) they were awarded the prestigious Silver Fern Farms Hawke’s Bay Farmer of the Year title in front of 350 people at a dinner at Showgrounds Hawke’s Bay (well done on great night Hillary). . .

D2S ‘growing at a rate of knots’:

Wool growers have rallied behind Wools of New Zealand’s Direct-to-Scour (D2S) spot market sales option.

Launched in October last year, volumes under D2S are doubling month on month and have now reached around 350,000 kgs, with annualised volumes expected to reach between 3.5m – 4m kilograms within its first year, about 8% of the market.

Ross Townshend, Chief Executive of Wools of New Zealand told shareholder growers and supporters during the company’s roadshow series of 12 national meetings this week that the system was “simpler and put more money into the pockets of growers than the conventional model. It makes logical sense for growers’ wool to go to the first point of processing which is the scour where it can be core-sampled, independently tested, objectively assessed and fairly priced. . . .

Wool Market Defies Dollar:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that despite a resurgent New Zealand dollar the South Island offering of 11,500 bales saw most types range from firm to 3 percent dearer. Even with the strength of the sale and an 86 percent clearance, some growers were still unprepared to accept current market levels with 13 percent of the offering being passed in.

The weighted indicator for the main trading currencies was 1.36 percent up on the last sale on 3rd April.

Mr Dawson advises that Fine Crossbred Fleece and Shears were between 1 and 3 percent firmer. . .

Rural round-up

Increases for selected fish stocks show success of QMS:

Primary Industries Minister Nathan Guy has today announced increases to catch limits for a range of New Zealand fisheries, thanks to healthy stock levels.

“These decisions today reflect the success of the Quota Management System (QMS), which is recognised as world leading. It is driven by science and responsive to change, which means that as stocks improve we can increase our sustainable take”, says Mr Guy.

Healthy stocks have led to increased Total Allowable Catch (TAC) limits for Hoki 1, Ling 5, Ling 7, Orange Roughy 3B, Scampi 2, Kingfish 7, Leatherjacket 3, Oyster 4 and Sea Perch 1.

“For several stocks, such as Ling 6, Bluenose 1, 2, 3, 7 and 8 and Snapper 7, I have decided to maintain the current TAC. . .

Regulatory Californication – Willy Leferink:

Isn’t it amazing how some people love catastrophy  Last month’s dairy recalls saw some truly leap off the deep end and when we were just getting through that, others latched onto a report by a New York-based dairy strategist.  It warned the New Zealand dairy industry could be squashed by a resurgent U.S. one.

I am only going off media reports but “Arise the Hunter: The Re-orientation of the US Dairy Industry and Implications for New Zealand,” by Tim Hunt certainly impressed the media.  The U.S. dairy industry produces five times the volume of milk as we do and its star used to be California.  I say ‘used to,’ because our new found love of red tape has me worried our dairy industry may be undergoing ‘Californication.’  There is a raunchy TV series going by that name where a fictional novelist solves his ‘writer’s block’ by having affairs.  Is our affair with regulation going to tie our industry up in knots, just like it did to California’s?

I learned how much California has become horridly regulated from Nicola Waugh.  As a Nuffield New Zealand Farming scholarship recipient, she travelled overseas in 2011 from March until October.  As a farm consultant for AgFirst Waikato, she also understands what regulation is. . .

Stay safe these holidays:

With school holidays starting this week, Federated Farmers is putting out a timely reminder to be vigilant with farm safety.

“Our home is our work place and when the children are home from school, we need to be more alert to hazards around the farm,” says Jeanette Maxwell, Federated Farmers Health & Safety Spokesperson.

“Last year we had 14 fatalities and 408 serious injuries on farm, don’t become a part of the statistic these holidays. Be mindful of visitors on farm wanting to experience the rural lifestyle, educate them on hazards and keep them safe. . .

More options for growers under Wools of New Zealand / New Zealand Wool Services International agreement:

Growers will be the ultimate winners of a direct farm-to-scour service agreement between Wools of New Zealand and New Zealand Wool Services International (NZWSI).

Wools of New Zealand will be the face to their grower shareholders and supporters with NZWSI providing all of the back office logistics to move wool efficiently from farm directly to the scour and ultimately, to market.

Ross Townshend, Chief Executive of Wools of New Zealand, says the agreement is a ‘win-win’ for shareholders and suppliers providing them with access to a range of sales options including a weekly schedule, monthly plans and more Wools of New Zealand brand contracts, such as the forthcoming Camira lambswool contract. . .

Big dairy results fortnight kicks off with Synlait:

In a big results fortnight for most dairy farmers and the New Zealand economy, listed milk processor Synlait has started the ball rolling with a net after tax profit for 2012/2013, which was ahead of its prospective financial information forecast. Fonterra Cooperative Group releases its 2012/13 results tomorrow with the other two cooperatives due to follow next week.

“For supplier-shareholders of Fonterra, Synlait, Tatua and Westland, this is going to be a huge fortnight, given Open Country Dairy has already paid its suppliers for the 2012/13 season,” says Andrew Hoggard, Federated Farmers Dairy Vice-Chairperson.

“I would add for New Zealand, too, since this relates directly to over a quarter of our country’s merchandise exports. . .

Wrightson chair John Anderson to retire at October meeting:

(BusinessDesk) – PGG Wrightson chairman John Anderson will retire from the rural services company at the annual meeting next month.

Anderson, who joined the board during a tumultuous shake-up in 2010, will step down from the board at the Oct. 22 meeting, the company said in a statement. A new chairman will be appointed after the meeting. Anderson’s appointment coincided with a changing of the guard in 2010 when Craig Norgate and Baird McConnnon left the board and China’s Agria Corp came on as a cornerstone investor, going on to mount a partial takeover of the company. . .

Lindauer Leads Lion’s Charge at New World Wine Awards 2013

New Zealand’s most popular sparkling wine wins gold medals at wine awards

23 September 2013 – Lindauer Classic Brut Cuveé, Lindauer Classic Rosé and Saints Sauvignon Blanc 2012 have scooped gold medals at the New World Wine Awards 2013, leading the way for Lindauer Special Reserve Blanc de Blancs which won silver. In addition, following on from its gold medal win, Lindauer Classic Rosé was then named Champion Bubbles.

A record number of entries were received for this year’s New World Wine Awards, which were judged by an independent panel of 13 wine experts at Wellington’s Westpac Stadium in July. . . .

Spy Valley Chardonnay Named Champion White Wine:

Marlborough’s Spy Valley Wines is delighted to announce that their 2012 Chardonnay has been named Champion White Wine at the 2013 New World Wine Awards.

Now in its 11th year, the New World Wine Awards utilise the internationally recognised ‘20 point scoring system’, with wines blind tasted and evaluated by an independent panel of 13 judges, many from overseas. Winners of each category are then re-judged to find the Champion Red, Champion White and Champion Bubbles, with the sole criteria being that all wines must retail for under $25. . .

Mission Reserve Chardonnay 2012 wins Gold at the 2013 New Word Wine Awards:

One of only two Chardonnays to be awarded Gold.

The Mission Reserve Chardonnay 2012 is one of only two Chardonnays to win Gold at the 2013 New World Wine Awards. These Awards are exclusively for the very best wines retailing at under $25.

In total, a record 1,099 wines were entered from 157 wineries, with the Mission Reserve Chardonnay taking out Gold and a coveted place in the Top 50.

This recognition follows on from a Gold at the 2010 Awards, and marks 15 years of local and international acclaim for the classically crafted Hawke’s Bay Chardonnay. . . .

Rural round-up

Synlait Farms Takes Out South Island Farmer of the Year title for 2012

Canterbury-based dairy enterprise Synlait Farms clinched the Lincoln University Foundation’s South Island Farmer of the Year competition for 2012 last night (Thursday 8 November 2012) with an entry that judges hailed as a prime example of New Zealand’s leadership role in innovative and entrepreneurial agricultural practice.

Chief Judge Bob Simpson said that all four finalists demonstrated leadership, excellence and innovation.

“Any of the finalists could have won this award tonight,” Simpson said. “But in the finish it was Synlait’s blend of family-based traditional farming practices with the very best of modern corporate innovation and management systems that saw this multi-farm company stand out. Synlait’s approach to its people, its stock and its land can be held up as an example of what can be achieved when good leadership and good people go hand-in-hand.” . . .

Landcorp ready to run Crafar farms – Andrea Fox:

State farmer Landcorp says its Chinese client Shanghai Pengxin will settle the Crafar farms purchase with receivers on November 30 and it is scheduled to start managing the dairy farming estate the next day.

Landcorp chief executive Chris Kelly said that to the best of his knowledge this was the timetable that would mark the end of the tortuous three-year Crafar farms sales process.

Landcorp’s management of the 16 central North Island farms is a condition of Government consent to the controversial sale to the Chinese company, which has waited through a string of court challenges and consent processes to put its money on the table as receiver KordaMentha’s preferred bidder. . .

Wool growers asked for $10m – Gerald Piddock:

Wools of New Zealand is asking for $10 million from strong wool growers in a capital raising offer to expand its sales and marketing capabilities.

The raising would give strong wool growers the opportunity to invest in a grower-owned sales and marketing, company, chairman Mark Shadbolt said.

The company has made significant inroads into transforming Wools of New Zealand into a commercial entity, aimed at connecting customer to grower, he said. . .

Wine sector senses a whiff of recovery – Claire Rogers:

The wine industry is on the mend after a gruelling few years that prompted a string of closures and collapses, New Zealand Winegrowers says.

One recent high-profile casualty, Hawke’s Bay winery and vineyard Matariki Group was put into receivership in September owing creditors, including the Government, about $11.2 million. Receivers PricewaterhouseCoopers said the winery struck financial trouble after reduced harvests in 2011 and 2012 led to weak sales, and that was compounded by a lack of capital.

New Zealand Winegrowers chief executive Philip Gregan said the 2012 harvest was down 19 per cent on 2011, and that had dealt another blow to the industry, which had been struggling since 2008 with over-supply and weak demand from the global downturn. . .

Sea air tenderises spring lamb – Jon Morgan:

Logan Brown’s head chef Shaun Clouston takes a bite, chews thoughtfully, swallows and then licks his lips.

“By crikey, that’s beautiful,” he says, shaking his head slowly, wonder in his voice.

On the plate is a lamb rump, finely sliced, with kumara, crushed peas and roasted tomatoes. It’s a simple dish. “I want the lamb to be the hero,” Clouston says.

This is not any lamb. The meat is from a young spring lamb, only 4 months old when it was sent to slaughter, and from a farm on the coast south of Whanganui. . .

Kiwi to Lead International Tree Society

A Dunedin arborist became the first-ever Australasian president of the International Society of Arboriculture (ISA) last week.

Mark Roberts, an experienced arborist and academic director of horticulture training firm Thoughtplanters, is the second non-American elected to lead the 88-year-old society.

More than 20,000 arborists from 18 countries are members of ISA today. . .

Rural round-up

Alliance Group secures exclusive deal with iconic UK retailer:

Leading meat processor and exporter Alliance Group has secured an exclusive deal to supply chilled New Zealand lamb to iconic UK retailer Marks & Spencer.

The   cooperative   will   be   the   sole   supplier   of   chilled  New   Zealand   lamb   to   Marks   &   Spencer   from Christmas 2012, sourcing lambs from approved farms across the South Island for processing at the company’s Lorneville (Invercargill), Pukeuri (Oamaru) and Smithfield (Timaru) plants.  

This supply arrangement is the first time Marks & Spencer has agreed to an exclusive deal for chilled lamb from a single New Zealand supplier.  . .

AgResearch scientist gets funding for new TB vaccine:

An AgResearch scientist has won funding to investigate the development of a new type of vaccine to protect animals and humans against tuberculosis and, potentially, a wide range of other infectious diseases.

Dr Axel Heiser has been awarded a Grand Challenges Explorations grant from the Bill and Melinda Gates Foundation.

It gives him a year to explore the concept of a new vaccination technique that would be more effective and longer lasting than what is available at present. . .

Wasps to fight colding moth ‘will reduce need for spray‘:

Pipfruit New Zealand says a new biological control agent for codling moth could save apple growers millions of dollars a year in spray costs.

The wasp, Matrus ridens, originates in Kazakhstan and has been successful in helping control the moth in the United States.

On Thursday Plant and Food Research released 1000 of the parasitoid wasps into a Hawke’s Bay orchard. . .

Wool growers asked to put money into another international marketing venture:

Strong wool growers are being asked for up to $10 million to step up the scope of international marketing firm Wools of New Zealand.

Wools of New Zealand has been funded by the wool market development fee since 2010 and wants to raise $10 million by issuing shares to wool growers at $1 apiece. The marketing company was spun out of PGG Wrightson into a grower’s trust last year and is the latest attempt to build a central promotional body for the wool sector.

The Christchurch-based company needs to raise at least $5 million, and plans to use some of the funds to repay a $1.87 million loan owed to its shareholder, Wools of New Zealand Trust. The remaining funds will go to developing marketing and royalty earning programmes and to build supply chains. . .

More Fonterra farms in China:

Fonterra has signed a dairy farm investment agreement with local authorities in China’s Yutian County.

The agreement – forecast earlier this year by NBR ONLINE – paves the way for two more large-scale dairy farms to be developed for $100 million in Hebei province, which will complete the dairy giant’s goal of a five-farm “hub”.

The company says in a statement the two farms, 120 kilometres east of Beijing, will house more than 3000 milking cows each and collectively produce up to 65 million litres of milk a year.

Good news for wool in spite of word war

A war of words has broken out between the Wool Exporters Council and Wool Partners Co-operative.

WEC says the wool co-op will never get over the line and reckons the co-op isn’t answering its questions.

WPC in return says that wool merchants and exporters aligned with the WEC are trying to undermine efforts to float the co-op.

While that’s going on there has been good news for the industry.

Wool Partners has made a second premium offer to growers who can supply high quality wool required by two British carpet manufacturers.

America’s largest carpet manufacturer has joined Wools of New Zealand’s Clean Air Certified programme.

Wool Partners International Chief Executive Officer Iain Abercrombie says Karastan’s certification and adoption of the programme is a further endorsement of the work Wools of New Zealand is undertaking to position New Zealand wool as the premier natural carpet fibre, produced in ethically sustainable manner.

 “This is further verification of the programmes we have been discussing with New Zealand growers to gain the recognition and the true value of the high quality wools they produce.”

 “It is intensive marketing backed by technical expertise developed by Wools of New Zealand, to delight consumers with the sheer luxury of naturally produced New Zealand wool.”

Programmes like this also require research and that’s been given a boost by the government.

Minister of Agriculture David Carter and Minister of Research, Science and Technology Wayne Mapp announced the investment of $17.25 million over five years in a wool research consortium tasked with lifting the economic return of the wool industry.

“The success of the strong wool sector hinges on developing new uses and markets for the industry – and with the growers themselves realising its full potential,” says Mr Carter.

“We are committed to growing New Zealand’s export earnings from wool fibre, and from value-added wool products developed through market-led research programmes,” Dr Mapp says.

The consortium participants are the Wool Research Organisation of New Zealand Inc (WRInc), and other New Zealand industry stakeholders. Key providers will include AgResearch and New Zealand universities. . .

“The wool industry is collaborating across the value chain to address key research questions, and the Government is supporting them,” says Dr Mapp.

Mr Carter says increased research and development for the wool sector was one of the key recommendations of his Wool Taskforce, which presented its report last year.

“The Wool Research Organisation’s constructive engagement through the Wool Unity Group has shown what can be achieved by better cohesion and co-operation within the wool industry,” Mr Carter says.

Collaboration and co-operation are working to good effect for research. It would also help with the marketing and wool exporters would be better employed concentrating on work which would maximise returns for growers than bickering with WPC which is trying to do that.

Timaru wool mill closing

New Zealand’s last medium grade wool mill Timaru’s Chargeurs New Zealand, is closing with the loss of 30 jobs.

Its closure was seen as inevitable by industry observers, since the industry was facing competition from low-cost producers in China.

Wool is also a product the international market is demanding less of.

Tim Lonsdale from Wools of New Zealand says there are fundamental changes taking place in the country’s wool sector.

“We’re seeing a radical drop in production of wool as more and more farmland is converted to dairy. This is obviously having a flow-on effect on processors,” he said.

“The global industry for wool is certainly under pressure – we’re facing stiff competition from synthetic fibres.

“I suppose they could have anticipated the trend towards finer wool and perhaps geared their factory up to process that fibre.”

But for John Brakenridge from the New Zealand Merino Company, the outlook is very different.

“Sure there’s some uncertainty as a result of the global situation at the moment but the underlying demand for merino and finer wool is actually very very good,” he said.

“If wool’s going to survive in today’s market people have to invest in marketing and research and development and that’s what NZ’s merino and fine wool growers have done.

“The reason why merino growers and finer wool growers have been successful in my opinion is because they’ve been prepared to invest in marketing and research and development.”

Complaints about poor returns from sheep in recent years have often blamed the meat industry, but the low price for pelts and wool has also been to blame.

The merino industry has shown there is still a place for natural fibresbut courser wools have yet to find a niche which will bring bring the improved returns which are needed if they are to play their part in returning the sheep industry to profitability.