We lose if WTO not taken seriously

November 28, 2018

Could the Provincial Growth Fund threaten New Zealand’s free trade credentials?

Regional Economic Development Minister Shane Jones today confirmed that some Provincial Growth Fund expenditure may qualify as agricultural subsidies, meaning it would need to be reported to the World Trade Organisation, says ACT Leader David Seymour.

“Jones said he had sought advice from MFAT about the legitimacy of his spending. This would be the first time New Zealand has reported such subsidies to the WTO in 25 years.

“It would be incredibly embarrassing if the Government had to report this expenditure, especially given David Parker travelled to Europe in January seeking to limit the agricultural subsidies of other countries, and Jacinda Ardern’s recent trumpeting of free trade.

“Subsidies for agricultural products are tightly restricted under WTO rules and for good reason. They stand in the way of free and mutually-beneficial trade; they create inefficient domestic industries by coddling producers; and, they represent wasteful spending and require higher taxes to support them.

“The Fourth Labour Government scrapped all of New Zealand’s agricultural subsidies in the 1980s, resulting in more productive, profitable and innovative producers.

“In his typical, blustering fashion Jones said he had no intention of complying with the international trade body’s rules.

“NZ First has always harboured a deep desire to return us to the Fortress New Zealand of the 1970s.

“If Shane Jones is determined to continue making such payments, he’ll be sullying New Zealand’s international reputation as a free and open trading nation.

This exchange in question time yesterday doesn’t give any confidence that Jones is taking WTO requirements seriously:

David Seymour: Has the Minister had advice in any form that some of his provincial growth fund expenditure may have to be reported to the World Trade Organization as it qualifies as agricultural subsidies—the first time New Zealand would have reported such subsidies in 25 years?

Hon SHANE JONES: Yes. Naturally, advice has been sought from the foreign affairs department. However, given that the adjudication and the appeals of so-said international trade body are in a state of disarray, I’m not bothered by that at all.

Part of the pain of the ag-sag of the 80s was due to the axing of subsidies but I don’t know of any farmers who would want to go back to the bad old days when they were at the mercy of politicians and bureaucrats, focused on producing more rather than what markets wanted.

Free trade has made New Zealand stronger and protection from the WTO has helped when other countries have tried to use non-tariff barriers and other anti-trade measures against us.

As a small nation heavily dependent on trade, we need the WTO and the minister’s cavalier attitude to it and our reputation for free trade is yet another reason to question the PGF.

 


Rural round-up

August 7, 2018

Wool gets revived as tide turns on synthetics’ pollution of the seas – Heather Chalmers:

A new wave of socially and environmentally-conscious consumers are turning to natural fibres for their clothing and homes, rejecting polluting synthetics and plastics.  

New Zealand wool companies are already tapping into this trend, promoting wool as a natural, biodegradable and renewable replacement.

But while momentum is growing, returns remain stubbornly low for the coarser end of New Zealand wool clip.   

While shoppers may think they have done their bit for the environment by ditching plastic bags, they are being advised to look at what they are wearing and how their house is carpeted, furnished and insulated.  . . 

 Wrightson shares jump 9.4% on plans to sell seeds unit for $439M; may distribute cash – Tina Morrison:

(BusinessDesk) – Shares in PGG Wrightson jumped as much as 9.4 percent after the country’s largest rural services business said it had agreed to sell its seed and grain business to Danish cooperative DLF Seeds for $421 million in cash and $18 of debt repayment, and signalled it may return up to $292 million to its shareholders.

The sale is above the $285 million book value of the seeds business and follows several expressions of interest received from international parties as part of a strategic review underway with Credit Suisse (Australia) and First NZ Capital. The Christchurch-based company expects to have a net cash balance of about $270 million following the sale and could distribute as much as $292 million to shareholders. . . 

A2 doubles stake in Synlait at 23% discount – Sophie Boot:

A2 Milk will buy another 8.2 percent of Synlait Milk, doubling its stake in the company.

The milk marketing firm will buy the shares at $10.90 apiece, down 2.3 percent from the NZX one month volume weighted average price of $11.16, for a total of $161.8 million. The shares will come from Tokyo-listed Mitsui & Co, a general trading company which invests across sectors and bought 8.4 percent of Synlait at the company’s initial public offering in 2013. . .

 

New Zealand red meat sector strongly opposes European Union and United Kingdom’s WTO quota proposal;

Beef + Lamb New Zealand and the Meat Industry Association strongly oppose the European Union (EU) and United Kingdom’s (UK) proposal to ‘split’ the EU’s World Trade Organisation (WTO) Tariff Rate Quotas between them.

The UK and EU have officially notified the WTO of their draft tariff schedules, which propose to split tariff rate quotas that allow access for New Zealand sheepmeat and beef exports. . .

Trade outlook still bright, but not without challenges – Allan Barber:

Vangelis Vitalis, Deputy Secretary for trade at MFAT and chief negotiator for the CPTPP due to take effect early next year, gave a very thorough and enthralling presentation on the trade landscape to the Red Meat Sector Conference in Napier on Monday.

Free trade and market access are a key area of interest to the New Zealand meat industry and the economy as a whole. Vitalis stated that three assumptions underpin New Zealand’s international trade negotiations: . . 

MPI sets the record straight with Forest & Bird:

Ministry For Primary Industries 2 August 2018 MPI is disappointed that Forest and Bird thinks it necessary to make inaccurate claims about combined efforts to prevent the spread of Kauri dieback.

Forest and Bird has advised MPI that it is closing off its reserves with wild kauri as a further measure to prevent the spread of kauri dieback, says Roger Smith, Head of Biosecurity New Zealand (a part of MPI). “We welcome all efforts to protect our kauri and have been working in partnership with a wide range of organisations to support their local efforts. . .

Tour leader found with fruit fly:

Fruit fly larvae carried by a tour party leader could have devastated New Zealand’s horticulture industry, says Biosecurity New Zealand.

Biosecurity officers intercepted the larvae last month in undeclared food with a holiday group from Malaysia at Auckland Airport, says Biosecurity New Zealand Passenger Manager, Craig Hughes.

The larvae was found in chillies following x-ray screening of the tour leader’s baggage. A caterpillar was also detected in some garlic bulbs carried with the undeclared food. . .

Rabobank Wine Quarterly Q3 2018: Status Quo Under Pressure in US Route-to-Market

The US has emerged as the largest wine market in the world, and by most measures, the most profitable and attractive. While wineries – both foreign and domestic – recognise the profit potential of the market, it is also widely seen as an exceptionally-difficult market to penetrate (particularly for small wineries), according to the latest RaboResearch Wine Quarterly report.

Route to the US consumer

Major changes are occurring today in how wine reaches the US consumer. “Changes in technology, business models and market structure are disrupting the global wine market and creating new sets of winners and losers among wholesalers, retailers and suppliers,” according to Stephen Rannekleiv, RaboResearch Global Strategist – Beverages. “Responding quickly to these changes will determine who survives, who thrives, and who fades away.” . .

Boy, 10, raises $60,000 in ‘Fiver for a farmer’ campaign – Shelley Ferguson:

More than $60,000 has been raised for drought-stricken farmers through a campaign started by children at a Sydney school last week.

Jack Berne, a grade four student at St John the Baptist Catholic School in Freshwater, was the instigator of “a fiver for a farmer”, and was inspired to help after learning about the struggles of those on the land in class.

Last week, Jack wrote a letter to media outlets as he tried to generate support for the cause after telling his mum that their teacher always tells them, “we can use our small and mighty voices” ..  . 


Rural round-up

July 7, 2018

Rural health wants tourists’ cash – Neal Wallace:

A rural South Canterbury general practitioner was paid $13 for each of the 150 emergency calls she made in the last year, a pay rate described by the Rural GP Network as a joke.

The network’s chief executive Dalton Kelly said with such low pay rates plus the demands on rural GPs it is understandable rural health professionals are leaving the sector, prompting a call for a portion of the proposed tourist tax to be directed to rural health services.

Kelly said rural GPs and nurses are regularly called to tend to sick and injured tourists and unlike an urban incident, patients cannot be transferred to someone else who is on call. . .

Trading times get challenging – Pam Tipa:

A trade expert has backed up comments by agricultural trade envoy Mike Petersen, who says New Zealand is facing its most challenging time in trade in 30 years.

Petersen told Rural News that the established rules on trade via the World Trade Organisation, particularly for agricultural products, are at risk from the US-China trade war.

While the products being targeted now are not NZ products, the risk of spillover into our products is very high, he says. . . 

Concerns over Mycoplasma bovis leave farmer confidence in the balance:

Concerns about the impact of Mycoplasma bovis disease on the country’s agricultural sector have seen New Zealand farmer confidence decline over the past quarter, the latest Rabobank Rural Confidence Survey has shown.

While farmer confidence remains at net positive levels, the overall reading dropped to +two per cent in the latest quarter, from +15 per cent in the previous survey. . .

A strong bull-seeking season in south – Nicole Sharp:

Prices are up and bull breeders are happy following a successful selling season.

Bull breeders throughout Southland and Otago have been hosting fellow farmers on farms for sales over the past couple of months.

PGG Wrightson livestock genetics representative Callum McDonald said sales came to a conclusion at the end of last month and there was positivity in the air.

”We have seen a great bull-selling season for the South, with high demand for quality bulls“ . . 

Hundreds gather to celebrate 50th anniversary of FMG Young Farmer of the Year:

Hundreds of people have celebrated the 50th anniversary of New Zealand’s longest-running agricultural contest.

The first FMG Young Farmer of the Year Grand Final was held in Auckland in 1969.

Former winners and finalists were among a 400-strong crowd which gathered in Invercargill last night to mark the milestone.

“It’s amazing. It’s just like a school reunion isn’t it,” said Levin farmer Geoff Kane, 66, who won the national final in 1981. . .

Entire Northland school visits farm on paddock to plate learning journey

A national project is helping a Northland teacher combine her two passions of education and food production.

Natalie Lynch teaches a class of Years 5-8 students at Matakohe School in the Kaipara District.

Last week the small school’s entire roll of 47 pupils visited the farm of Marshall Walton in Whangarei.

“Watching a sheep being shorn, pressing a bale of wool in a manual press, and using the drafting gates was a new experience for everyone,” said Natalie. . . 

Omega lamb project update in third year:

The Omega Lamb Project is now in its third year and well over 100 restaurants in New Zealand and Hong Kong have had Te Mana Lamb on their menus.

The project builds on a decade-long scientific programme and breakthrough research. It found that the right combination of genetics, management and feeding can alter the fat profile of lamb and produce animals that are healthy, while delivering a tastier and healthier product.

Te Mana Lamb is higher in Omega-3 than other lamb available on the market.

Mark Williamson, general manager of the Omega Lamb Project, a collaboration between the Ministry for Primary Industries (MPI) under the Primary Growth Partnership, the farmer-owned Headwaters and leading food company Alliance Group, said Te Mana Lamb is being praised by chefs for its flavour and consistent eating quality. . . 

Fears for future of Scots beef and lamb production – Colin Ley:

The viability of beef and sheep production in Scotland is being threatened by a Scottish government climate change bill that includes a net zero greenhouse gas emissions target.

Quality Meat Scotland (QMS) chairman Jim McLaren said that will make it virtually impossible for the country’s farmers to produce beef and lamb.

“Moving to net zero GHG emissions would be absolutely devastating for our livestock industry,” he told an industry meeting at the Royal Highland Show.  . . 

 


Rural round-up

December 26, 2017

‘Drag ‘n drop’ grazing now a reality – Nigel Malthus:

The idea of virtual fencing has been around for 20 years, but AgResearch believes its time has come and will soon start testing an Australian product.
Farm systems scientist Warren King, of AgResearch Ruakura, says it has been watching the technology for years and now believes the eShepherd product from Melbourne company Agersens is “the real deal”.

New Zealand’s Gallagher Group is a lead investor in Agersens, with marketing manager Mark Harris on the board. . .

Recent heat boost for lavender crops:

A South Canterbury lavender grower is experiencing an early start to the season.

Rob Martin, of Limestone Valley Estate, near Cave, said his crop of Pacific blue lavender was two weeks early this year, and his other varieties were following close behind.

He put the ”very early” start down to the year’s weather patterns, which were ”excellent” for lavender.

”[There was a] sudden heavy wet winter and spring and that immediately changed to hot weather,” he said. . .

Mozzarella plant on track for May start – Alexia Johnston:

Clandeboye’s $240million mozzarella plant is on target for commissioning in May.

AThe project, which is the third mozzarella plant for Fonterra’s Clandeboye site, is three-quarters complete and has already created 75 new jobs.

A further 25 employees will join the team in February.

Clandeboye operations manager Steve McKnight was among those watching progress.

”There’s a real buzz in the air on site as we have more people on site and the plant takes shape,” he said. . .

Decades of service:

The 2017 NZ Winegrower Personality of the Year goes to the NZSVO and its departing Executive Officer, Nick Sage and the recently announced life member, Rengasamy Balasubramaniam – better known as Bala.

There seems to be a common thread when you look at the retiring committee members of the NZSVO. All seem to have landed the job after being lured to an AGM by the offer of free wine. . .

I can’t wait for when we don’t have any possums – Andrew Austin:

The rabbits populating my neighbourhood seem to have begun breeding like, well, rabbits.

They are all around – on the roads, in the gardens, in the paddocks. They are a menace. As I am not a gun owner, I simply have to live with them.

The dogs give them (literally) a run for their money, so at least they don’t come too close to the house.

But even worse than rabbits are the possums. I drive along a one kilometre-long shared rural driveway to get to my house and every night I see at least one possum waddling along the road. Workmates and others tell me that I should aim for them and run them over. I have tried, but always seem to pull out at the last moment. . .

Gove tells Brits to be more patriotic about cheese buying habits

Brits who are worried about the price of their foreign produce going up after Brexit should be more patriotic about their choices, according to Michael Gove.

Mr Gove, who attended the Environment, Food and Rural Affairs Committee (EFRA) on Wednesday (20 December), has criticised claims that the price of cheddar cheese will go up by 40 percent if Britain leaves the EU without a trade deal.

The Defra Secretary said Brits should instead focus their priority on British cheddar. He said that, in a WTO scenario, if cheese prices rise steeply then the British public should buy more British cheese. . .


Rural round-up

November 15, 2017

Fine wool prices soar while coarse remain in the doldrums – Gerard Hutching:

Prices for fine wool are on a high, in complete contrast to those for coarse crossbred wool which make up 90 per cent of New Zealand’s clip.

PGG Wrightson South Island sales manager Dave Burridge said the present demand for merino fine wool harked back to the 1990s period of “micron madness”, when it was then wanted for high-end suits.

After 18 months the boom ended in a bust, from which the industry took decades to recover, and large stockpiles built up in Australia and New Zealand. . . 

Putting off succession planning could cost Taranaki farmers:

outh Taranaki dairy farmer Andrew Tippett believes starting early is the key to tackling farm succession planning.

Andrew and his wife, Lisa, run a 400-cow autumn calving farm at Okaiawa near Hawera.

The couple, who have five daughters, jointly own the 165-hectare property with Lisa’s parents, Dennis and Diane Bourke.

“Lisa and I couldn’t afford to buy the farm by ourselves,” Andrew said . . 

Foods of the future to boost brain:

New Zealand foods of the future could not only have more flavour and texture, but also boost our brain functions.

AgResearch scientists are working on programmes that have been awarded more than $21 million from the Ministry of Business, Innovation and Employment’s Endeavour Fund.

”The future for New Zealand food exports to the world is premium quality and adding as much value as possible to our products,” AgResearch science group leader Dr Jolon Dyer said.

”This cutting-edge research will look at how we can help deliver premium foods by taking the eating experience, and the health benefits of the food, to new levels.” . . 

A2 Milk, top-performing stock on NZX 50 in 2017, cites ‘pleasing’ start of 2018 financial year –  Tina Morrison:

(BusinessDesk) – A2 Milk, the best performing stock on the benchmark S&P/NZX 50 Index this year after its annual profit tripled, signalled that growth has continued into the current financial year.

The company, which markets milk with a protein variant said to have health benefits, outlined positive developments in its Australia and New Zealand, China and other Asia, US and UK markets in presentation notes for delivery at a UBS Investor Conference in Sydney today, although it stopped short of providing detailed figures noting it would give an update at its annual meeting of shareholders on Nov. 21. Its shares rose 3.1 percent to $7.64 and have soared 248 percent this year. . . 

New Zealand’s best farm yarns being sought by Blue Wing Honda:

This November marks 45 years since Blue Wing Honda began operating in New Zealand. And to celebrate the milestone, they’re asking farmers to share their favourite farm memories. The best farm yarn will win a brand-new farm bike worth over $5,000.

New Zealand’s official importer and distributor of genuine Honda motorcycles began selling road bikes and off-road bikes in 1972. By the late 1970s, All Terrain Vehicles (ATVs) were being bought in large numbers by the nation’s farmers.

The locally-owned company has been heavily involved in the farming community ever since and consistently enjoys the number one market position for ATV sales. . . 

High tech manufacturing turning old tyres into better irrigation systems:

It seems unlikely that discarded tyres could help valuable crops grow but that is exactly what the work of two Geelong based joint high-tech manufacturing companies is making happen.

Polymeric Powders and Austeng, are using end-of-life tyre crumb combined with polyolefin plastic, in a ‘world’s first’ process to manufacture a high quality composite material for the manufacture of high quality pipes for uses that include irrigation, drainage and sewerage. . . 


Rural round-up

November 12, 2017

Westland Looks to Take Its Wastewater Out of the Hokitika River:

Westland Milk Products said today it is well down the path toward potentially taking its treated wastewater discharge out of the Hokitika River.

CEO Toni Brendish says that in September last year Westland re-opened its investigations into an ocean outfall for its treated wastewater discharge, which would take it out of the Hokitika River two years prior to the existing in-river discharge consent expiring in 2021. A final decision on whether to go with the option will be made early in 2018. The investigations are at the stage that the company is about to go back to the West Coast Regional Council for a minor variation to its existing permit. . . 

Challenging future facing livestock farming – Nigel Malthus:

The disruptive forces facing New Zealand agriculture could mean a tough future for livestock farming, says the new president of the New Zealand Institute of Primary Industry Management (NZIPIM).

Farm consultant Craig Osborne, from Oxford, North Canterbury, has been named to replace Guy Blundell, heading the institute for the next two-year term.

Osborne says that where NZ farming is heading is the “million-dollar question” and a tough one to answer because of all the competing forces gaining momentum globally. . .

WTO declines Indonesia appeal on ruling over trade barriers that hurt NZ beef trade –  Jonathan Underhill

(BusinessDesk) – The World Trade Organization has turned down Indonesia’s appeal against a ruling that trade barriers imposed since 2011, which hurt New Zealand’s beef exports, were inconsistent with global trade rules.

New Zealand had invoked WTO dispute settlement consultations with Indonesia in 2013 and 2014 over 18 trade barriers it said had resulted in an 80 percent drop in the nation’s exports to Indonesia of beef and horticultural products such as apples and onions. Prior to the restrictions, Indonesia was New Zealand’s second-largest market for beef, worth $180 million a year, and the accumulated trade impact was an estimated $500 million to $1 billion, according to the complaint. . . 

Icebreaker inks $100M 10-year supply contract for NZ merino wool – Tina Morrison:

(BusinessDesk) – Merino outdoor clothing company Icebreaker has signed the longest ever supply contract with growers of New Zealand merino wool, worth $100 million over 10 years.

The Auckland-based company, which announced this week that it is being bought by US-based VF Corporation, has inked agreements with New Zealand woolgrowers in collaboration with wool marketer The New Zealand Merino Company to ensure it has long-term supply of the fibre. Pricing will be at a premium to market prices to recognise long-term grower loyalty and to enable Icebreaker to use farm imagery and storytelling in its global marketing campaigns, Icebreaker said in a statement. . . 

Fencing best practice showcased – Sally Brooker:

Fencing industry folk from a large part of the South Island converged on a North Otago landmark on October 25.

The Fencing Contractors Association New Zealand ran a demonstration day at Parkside Quarries, the place where Oamaru stone is hewn from the hills.

More than 50 people attended – a mix of fencing contractors and practitioners, suppliers, and industry partners.

Motueka-based fencer and tutor John Noakes said the event showcased fencing best practice – both traditional and modern techniques. . . 

NZ  company Fifth Breath launches woollen yoga mat – Brittany Pickett:

It all started with the idea that traditional yoga mats didn’t align with yogi principles and now Fifth Breath has launched the first yoga mat made from wool.

Co-founders of the New Zealand company Dana McKenzie and Irina Arya have spent the last year working to develop the mat’s design and key technology elements, with the aim to retain the functionality expected by yoga followers.

Both of them are engineers by training and met during studying for a masters in business administration at the IMD Business School in Lausanne, Switzerland in 2008. Since then, they have both enjoyed corporate careers and growing families, yet a passion for wool and yoga prompted them to build Fifth Breath Ltd, a company with an ethos about offering naturally safe yoga mats. . . 


Rural round-up

October 27, 2016

Fraud exposes Fonterra supply chain – Fran O’Sullivan:

Dairy giant Fonterra is expected to have control of its supply chain in China. But is that reasonable given the extraordinary amount of consumer fraud in that country?

Fonterra has launched an internal probe into the fraudulent sale of 300 tonnes of its bakery products in China that had passed the expiry date.

It is not alone in facing problems with distributors in China. Zespri became engulfed in a double invoicing scam involving one of its distributors. All multinationals face these problems. . . 

NZ EU focus on WTO ag, NTB issues and FTA:

Trade Minister Todd McClay and EU Trade Commissioner Cecilia Malmström have agreed on the importance of working in the World Trade Organisation (WTO) towards reducing non-tariff barriers (NTBs), addressing harmful fisheries subsidies that contribute to over fishing, and reform of domestic support in agriculture.

“Commissioner Malmström and I are committed to progressing these important issues in Geneva as part of preparations for the next WTO Ministerial Conference in 2017,” say Mr McClay.

The discussion took place in Oslo, Norway this weekend in advance of the WTO mini-ministerial meeting. . . 

Taratahi looks to partner with Chinese dairy company – Alexa Cook:

Agricultural training school Taratahi is in talks to partner a Chinese dairy firm.

It has hosted visitors from eight different countries this month, including a group from a Chinese dairy company and veterinarian association.

Taratahi chief executive Arthur Graves said there was demand from all over the world for their agricultural on-farm education model. . . 

Dairy Farmers Attract Au Pairs From Across the Globe:

New Zealand dairy farms are becoming home for many au pairs who are heading across the globe to help rural kiwi families..

Taranaki Dairy Farmers Rachel and Murray Perks have two young children and say they used to struggle with the early starts in the milking shed.

“Now that we have an au pair we can keep our children at home and don’t have to take them to the milking shed,” says Ms Perks.

When German au pair Veronika Burger arrived, life became a whole lot easier. . . 

Coastal farm has lifestyle block and horticultural crop potential:

A large mixed-use coastal farm which commands breath-taking views of the Bay of Plenty and even boasts its own airstrip has been placed on the market for sale.

The 260ha Sybton Farm, at 1402 State Highway 2, Waiotahi, is presently run as a dairy and dry stock beef unit, but it has the potential to be used for horticultural crops or even subdivided into lifestyle blocks or rural residential properties.

The property is well placed to take advantage of the area’s growing popularity with lifestylers looking for a gentle climate, beautiful scenery and an easy pace of life. . . 

Farmers: a different style of leadership – Karen Schwaller:

If there is one skill farmers have honed, it’s being in charge. They’re born leaders.

After all, they choose their crop inputs, map out their field fertility plans, invest in livestock and feed stocks, decide on crop insurance, determine when commodity prices are right, spend the money they need for the equipment to make it all happen, and choose to get up before the roosters each day because there’s a lot to accomplish. Often times, the farmers I know, do not stop until long after the sun has called it a day.

And while they are busy running their farms and helping raise their families, many also decide to become involved in their communities. You’ll find farmers in rural areas involved in all kinds of things-from memberships on the local school board, board of supervisors, elevator board, electric cooperative board, corn and soybean associations, and even being 4-H leaders and friends of the local FFA. . . 

Image may contain: cloud, sky and text

Long hours. Calloused hands. Dirty clothes. Wouldn’t trade it for the world. – Pink Tractor.com


%d bloggers like this: