Rural round-up

March 15, 2018

Medical marijuana a ‘billion-dollar industry’, says exporter who employs staff with a past – Madison Reidy:

Growing marijuana has turned from a cause for conviction to a well-paid job for locals of a destitute town north of Gisborne.

In a rundown woolshed in Ruatoria, 17 of them laugh over reggae music.

Some are as young as 18. Some have been to prison. Soon, they could be earning about $80,000 each.

It’s white bread sandwiches and sausage rolls for lunch, washed down with a chilled Steinlager. They will swim in the Waiapu River afterward. . .

A2 herd conversion strategies – Keith Woodford:

The decision by Fonterra to work jointly with The a2 Milk Company (ATM) to produce A2 dairy products will have come as a shock to everyone outside the direct negotiation process. This change now throws into sharp relief the challenges for New Zealand dairy farmers in converting their dairy herds so as to produce A2 milk, this being milk free of A1 beta-casein.

The first decision farmers have to make is whether or not they do wish to start on the herd conversion journey. On the one hand, the Fonterra co-operative has been telling its farmer members for all of its 17-year existence that A2 is simply a marketing gimmick. So, for many farmers, the idea that Fonterra is now going to pay premiums for A2 milk will cause bewilderment. . 

Emerging food and beverage growth opportunities in New Zealand

New opportunities in the food and beverage industries are the focus of the Emerging Growth Opportunities in New Zealand Food & Beverage Report 2018, which will be launched at FoodHQ as part of the New Zealand Agrifood Week.

The report will be officially launched by the Hon. David Parker, Minister for Economic Development, on Wednesday 14 March. Key findings and the state of the food and beverage industry will be presented by Tim Morris, Director of consulting company Coriolis, which authored the report. . . 

Award winners swapped office jobs for farms :

The Northland Dairy Industry Awards Share Farmer of the Year winners swapped office jobs for dairy farming six years ago and now appreciate the opportunities to grow and be self-employed.

Dan and Gina Duncan were rural valuers and knew the rural lifestyle was one they wanted for their family. “I grew up on a dairy farm, and the importance of common sense and consequences are still able to be learnt by children from a young age,” says Dan. “The freedom for children has changed though with a definite focus on health and safety.”

The won $7000 in prizes. The other major winners were the Dairy Manager of the Year, Sam Moscrip, and the Dairy Trainee of the Year, Eden Ritchie. . . 

Release of jewelled gheckos ‘momentous occasion’ – Rebecca Nadge:

The Central Otago Ecological Trust celebrated a ”momentous occasion” at the Mokomoko Dryland Sanctuary recently as 14 jewelled geckos were released as part of the sanctuary’s first translocation programme.

Eight pregnant females, three males, two sub-adult males and one sub-adult female were taken from the Lammermoor Range by trust volunteers and Wildlands herpetologist Carey Knox before they were transported to their new home.

Mr Knox said the species was found across Otago and Canterbury, although human influence, land clearing and introduced predators had restricted their range to small pockets. . .

Fonterra NZMP cheese and butter win international honours at 2018  World Championship Cheese Contest:

New Zealand cheese continues to turn heads on the international stage, with Fonterra named category runner-up for its NZMP three-to-six month Cheddar Cheese in the 2018 World Championship Cheese Contest. NZMP Unsalted Butter was also runner up in its category in the prestigious competition held in the United States over the last week.

The bi-annual competition features the cream of the cheese and butter world, with products from 26 countries vying for top honours. This year’s competition attracted a record-breaking 3,402 entries in over 120 categories. . .


Rural round-up

March 16, 2016

Whitestone blue wins silver in world champs – Sally Rae,

Whitestone Cheese has got the blues – but in a good way.

The Oamaru-based company has been awarded a silver medal in the blue vein division of the 2016 World Championship Cheese Contest in the United States, the world’s largest cheese, butter and yoghurt competition.

The contest, hosted by the Wisconsin Cheese Makers Association, attracted a record 2948 entries from 25 countries. Judges came from all over the world and included Fonterra research technologist Andrew Legg. . . 

Bankers aren’t farmers – Offsetting Behaviour:

On Radio New Zealand this morning, Andrew Little argued the government should lean on the banks to prevent their foreclosing on dairy farms, warning of that foreigners might swoop in and buy distressed NZ farms. 

  • Banks do not want to run farms. If they foreclose, they have to find somebody to run the thing pending auction. There are cows that need to be fed. The bank or the receiver takes on all the health & safety, and animal welfare, liability. The most heavily leveraged ones are the ones that’d be first to go; those are the ones where the banks have the biggest stake, and where the banks would take the greatest share of the loss in a fire-sale. A receiver’s fees will include all the farm-running costs. . . 

Dairy industry needs to stay competitive – DairyNZ:

DairyNZ says it is time to look at how the dairy industry can stay competitive in the wake of a record low Farmgate Milk Price and mounting debt.

It is stepping up its support to farmers and is running workshops across the country this week focussing on sharemilkers and farm owners working with sharemilkers.

Chief executive Tim Mackle said Fonterra has done well since it formed in 2001, and the main challenge for farmers – compared to other tough years – was the mountain of debt that had grown.

“Ten percent of the highest indebted farms have 30 percent of the total dairy debt – that’s $11 to $12 billion or $10 million each. But that doesn’t mean all those farms are at risk,” says Dr Mackle. . . 

Dairy prices affecting over one fifth of NZ SMEs:

More than one-in-five small and medium enterprises across New Zealand are feeling the effects of falling dairy prices, according to leading accounting software developer MYOB.

A snapshot result from the latest Business Monitor research commissioned by MYOB and undertaken by Colmar Brunton, found that 21 per cent of the more than 1,000 SMEs surveyed stated their business’ revenues were negatively affected by the dairy price. Even more concerning is the 25 per cent of SMEs that said general consumer confidence has been directly hit.

Across the country, it means that approximately 100,000 businesses employing upwards of one million New Zealanders are facing reducing revenue because of the dairy downturn. MYOB General Manager James Scollay says that the results show a significant impact on the New Zealand economy. . .

Dairy farming: it’ll be survival of the fittest – Jamie Gray:

Bank analyst has confidence in the sector’s ability to adapt but says that some of those ill-prepared for the downturn will go to the wall, writes Jamie Gray.

The dairy sector may be in for a period of adjustment of an order not seen since the 1980s, when farmers were hit with high interest rates, a high New Zealand dollar, and the removal of subsidies, says Rabobank NZ’s head of country banking Hayley Moynihan.

As dairy farmers prepare to enter what may be their third season in a row of negative returns, Moynihan said there will be casualties, but she has confidence in the sector’s ability to cope. . . 

dairy graphic

Stellar vintage predicted for Hawke’s Bay winegrowers:

All signs are pointing towards 2016 being another stellar year for Hawke’s Bay winemakers.

Paul Ham, Managing Director of Alpha Domus Winery, says the 2016 vintage is shaping up to be one of the best yet.

As one of the first wineries in Hawke’s Bay to harvest their early Chardonnay grapes, Alpha Domus is in a unique position to assess the coming vintage. “We’re really excited about the remainder of the harvest,” says Mr Ham. “It’s been a superb season and the grapes are looking outstanding on the vine.” . . .

Quality of NZ wool clip leaves exporters scrambling to fill lower-grade fibre orders – Tina Morrison:

(BusinessDesk) – New Zealand wool exporters scrambling to fill orders for lower-grade wool have driven up the price of what are known as oddments in recent weeks because the season to date has delivered an unexpectedly high-quality clip.

Wool oddments are the shorter parts of the fleece, such as from the belly, second pieces, eye clips, necks and those parts stained or otherwise discoloured. They are often baled and sold separately, but a paucity of lower-quality wool has meant exporters are blending oddments with other higher wool grades to make up orders, said Malcolm Ching, an executive at New Zealand Wool Services International in Christchurch. . . 

China Resources buys stake in NZ’s biggest apple exporter – Jonathan Underhill:

(BusinessDesk) – China Resources Ng Fung has acquired 15.3 percent of Scales Corp, New Zealand’s biggest apple exporter, for about $55.9 million from Direct Capital Investments.

The Hong Kong-based company today entered into an arrangement to buy the shares at $2.60 apiece, with settlement on about March 21. Scales said it welcomed China Resources “as a significant minority shareholder, and as a party who can provide support to Scales in its ongoing initiatives in China.” . . 

Social Media Stars Win Auckland/Hauraki Dairy Awards:

The 2016 Auckland/Hauraki Dairy Industry Awards winners are active among a growing group of dairy farmers turning to social media to support, share and gain information to help progress their dairy career.

At the region’s annual awards dinner held at the Indian Hall in Pukekohe last night, Brad Markham and Matthew Herbert were named 2016 Auckland/Hauraki Share Farmers of the Year, Hayden Kerr became the 2016 Auckland/Hauraki Dairy Manager of the Year and James Doidge the 2016 Auckland/Hauraki Dairy Trainee of the Year.

Mr Markham, Mr Herbert and Mr Kerr are all active and well-known among dairy farmers on Twitter. “We enjoy connecting with other farmers, in New Zealand and overseas, on social media platforms like Twitter,” Mr Markham and Mr Herbert say. “It can be a great way to share ideas. . . 

Accountants Get in Behind New Zealand Dairy Farmers:

NZ CA Limited announces Gold Sponsorship of 2016 Dairy Business of the Year

Improving farm profitability and developing resilient and sustainable farming systems are two of the key drivers behind NZ Chartered Accountants Limited’s (NZ CA) gold sponsorship of this year’s Dairy Business of the Year (DBOY).

Sue Merriman, NZ CA’s chairperson and also partner in Greymouth chartered accountants Marshall & Heaphy Limited, says, “The group is delighted to be a Gold Sponsor of the 2016 Dairy Business of the Year. With so many of our member firms located in provincial New Zealand and having dairy farm businesses as clients, it’s a logical move for the group to be involved in supporting and further developing these businesses. With the continuing slump in milk solid prices this year and the effect of this on farm businesses, it’s more important than ever that dairy farmers get good independent business advice from their chartered accountants. . . 

Fertiliser Company Takes Industry Lead to Identify Fertiliser Efficiency:

Fertiliser Company Hatuma Dicalcic Phosphate has taken an industry lead to identify fertiliser efficiencies for farmers

The company has invested over $1 million in research and is monitoring 12 sheep and beef farms totalling 16,500 hectares in the independent ‘Farming for the Future’ programme.

The programme set out to find how a lower nutrient input system can build both economic and environmental resilience within the farm gate. . . 

TECH Talks a highlight at national primary industry conference:

In two weeks Rotorua will be playing host to over 300 industry representatives from throughout the agriculture, horticulture and forestry sectors. MobileTECH 2016 is a two-day conference focusing on new technologies and innovations designed for our food and fibre industries.

As well as the New Zealand sector, MobileTECH has also attracted a solid contingent from across the Tasman. Some of Australia’s largest primary industry companies will be flying into Rotorua and joining the local industry for this event.

The strength of this programme, boosting over 36 speakers, is in bringing together under the one roof leaders from across a diverse range of primary industries with those who are developing, manufacturing and adopting these new technologies. . . 

 


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