Rural round-up

August 9, 2013

Fonterra welcomes New Zealand Government’s confirmation of safety of New Zealand dairy products

Fonterra today welcomed the New Zealand Government’s confirmation that the quality issue involving whey protein concentrate is confined to the products made from three batches of WPC80 and no other New Zealand dairy products are affected.

Fonterra Chief Executive Theo Spierings said: “Public safety is Fonterra’s number one priority. When we informed our customers and the Ministry for Primary Industries of the quality issue, we advised them that it was limited to three batches of whey protein concentrate.

“We appreciate the New Zealand Government confirming this to be the case and reiterating the safety of all other New Zealand dairy products, including Whole Milk Powder (WMP) and Skim Milk Powder (SMP), butter and cheese. . .

Surprised by the biosecurity issue – Bill Kaye-Blake:

The issue with botulism bacteria in Fonterra’s whey powder has been in the news all week. There’s been lots of talk of milk prices, exchange rates, marketing images and damage to brands. Most of it is fairly simple. A lot of it, at least over the weekend, was speculation about what could or might happen — filler more than news.

I have one small note to add. I have been working in agricultural economics in New Zealand for the last ten years, all across the sector. Dairy, sheep/beef, apple, kiwifruit, potatoes, forestry, wine, lettuce — lots of different products. I’ve also worked on many different issues: trade, technology, consumer trends, productivity. One area in particular has been biosecurity, which in New Zealand refers to keeping bugs out (in other countries, it refers to biological terrorism, which led to some confusion once when I visited the OECD). . .

Fonterra says no sign yet of losss of business, too soon to count cost:

Fonterra Cooperative Group hasn’t seen any signs of customers reducing their business and says it is too soon to say whether the costs of dealing with the contamination will result in a charge against earnings.

Chief executive Theo Spierings told a conference call today that with listed units on the NZX, Fonterra has obligations to disclose any significant financial impact. Major customers hadn’t signalled as yet any change in demand, he said.

On the conference call chairman John Wilson fronted the media for the first time since the crisis emerged last weekend and defended why it took him this long to appear in public on the issue, saying “in reality this is an operational matter” and he had faith in Spierings’ management team to handle it. . .

North Canterbury will boom on back of water storage

IrrigationNZ says North Canterbury will be revitalised on the back of the Waitohi Irrigation and Hydro Scheme, which was granted resource consent this week.

“Hurunui District, like many other rural areas, has experienced gradual population decline and subsequent school and local service closures over the past 20 years. The announcement that Hurunui Water Project’s Waitohi Irrigation and Hydro Scheme can now proceed has the potential to completely reverse North Canterbury’s fortunes,” says IrrigationNZ CEO Andrew Curtis.

“The supply of reliable water will create certainty which will encourage greater investment in a range of land use options. With North Canterbury’s unique climate allowing a wide range of crops to be grown, the district is well placed to experience an economic boom,” says Mr Curtis.

Mr Curtis says environmental concerns around intensive farming and increased irrigation would be taken care of through audited farm plans. . . .

Rural Contractors welcome new workplace safety reforms:

Rural Contractors New Zealand (RCNZ) says it welcomes the government’s newly announced workplace health and safety reforms.

“Both employers and employees have an important part to play in improving safety in the workplace,” says RCNZ president Steve Levet.

“Unfortunately, the attitude towards ensuring workplace safety is not universal in the agricultural scene and it can be a battle to get safety seen as a priority by every individual.”

He says rural contractors and their staff need to be as vigilant with maintaining their own safety in the workplace, as they are with maintaining their machinery. . .

Local yarn’s luxury fibre reaches US Vogue Knitters:

With the resurgence in hand knitting and all things handcrafted, a local yarn company is spinning a name for itself with its luxury natural fibre yarn product especially for hand knitting.

Wellington company, Woolyarns New Zealand, produces an exclusive range of luxury yarn brands for both the textile manufacturing and hand knitting markets internationally.

It is Woolyarns Zealana hand knitting yarn, that has now attracted the attention of Vogue Knitting USA magazine’s Chief Editor. . .


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