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. . . 

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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. . . 

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


Rural round-up

September 14, 2016

Success outside of big cities:

We asked some of New Zealand’s leading business people about their bravest moment in business. In the sixth story of our series for Spark, Whitestone Cheese CEO Simon Berry.

“Bravest moment? I reckon moving from Vancouver to Oamaru!”

Simon Berry, CEO of Oamaru’s Whitestone Cheese, comes from a long line of Otago farmers.

When the 1980s arrived so did the rural downturn. Noticing the tide was about to turn, Simon’s father Bob made the bold decision to forego beef and sheep for cheese.

“Dad was always good at reading markets,” says Simon. “‘In those days, the only cheese you could find in Kiwi supermarkets was the 1kg block. So my parents would visit their neighbours in Karitane who ran a small business called Evansdale Cheese.”

“Everyone raved about their green, mouldy farmhouse cheese!” . . 

Lessons from Australian dairy – Keith Woodford:

Our Australian dairy cousins are currently going through difficult times, particularly for those who supply Murray Goulburn, and to a lesser extent Fonterra.  There are lessons to be learned, although there may be alternative perspectives as to the specifics thereof.

Right now, production in Australia has plummeted. It will take a month or two to see how it all settles out, but early season production is down 10 percent.  Fonterra’s production is down 22 percent, and Murray Goulburn is in all likelihood down even more. Indeed, there have to be doubts as to whether Murray Goulburn can survive long-term in its current form.

Once the spring-calving cows come on-stream, the figures may look less dramatic, but both Murray Goulburn and Fonterra have clearly lost substantial market share. . . 

Vehicle review ‘great’ – Sally Rae:

It’s out with the old and in with the new with vehicles on Landcorp-owned farms.

Keeping people safe was the driver behind a review of vehicle safety by New Zealand’s largest corporate farming operation.

The review established a set few vehicles to be used on the basis of what worked for particular farms and terrain.

It was decided to remove all quad bikes on Landcorp’s dairy farms and reduce the number of quad bikes on livestock farms. . . 

Beef producers cautioned to look beyond the price peak:

New Zealand cattle producers are being cautioned to look beyond the current high-priced environment, with near-record prices unlikely to be sustained in the medium to long term according to a new industry report.

In its latest beef research report, Australian and New Zealand beef industry – looking beyond the price peak, agribusiness banking specialist Rabobank says while New Zealand farmgate prices are expected to remain around current levels in the short-term, they will then come under pressure as global beef production, and indeed total animal protein production, increases.

This will likely see prices ease, albeit to trade in a higher-than average range out to 2020, the report says. . . 

Officials Urged to Challenge Canada’s Latest Dairy Trade Protectionism:

The Dairy Companies Association of New Zealand (DCANZ) has joined with US, Australian, European, and Mexican dairy organisations in requesting a WTO dispute settlement proceeding be initiated against Canada if it continues with a planned extension to its dairy trade protections.

A joint letter, sent to Trade Ministers, sets out concerns that a recently concluded agreement between Canadian dairy producers and processors would provide an incentive to substitute Canadian dairy ingredients for imported dairy ingredients and would unfairly subsidise exports of Canadian dairy products. The agreement would provide a guaranteed price for milk used to manufacture ingredient dairy products, including skim milk powder and milk protein concentrate, which is below Canada’s cost of milk production, and which matches the lowest globally traded reference price for these products. . Image may contain: text

Life is better on the farm.

New Zealand’s Escorial Wool launches exclusive collection:

This season the luxurious and rare Escorial wool will showcase the first complete collection in both worsted and woollen fabrics, woven in Yorkshire, England by exclusive partners Joshua Ellis and Luxury Fabrics.

Escorial wool, originating from the Spanish Royal flocks of El Escorial, has made a name around the world for producing luxury performance garments for a discerning customer, grown from an exceptional small sheep, grazing in limited numbers in Australia and New Zealand. The Escorial distinction is in the heart of the fibre, performing as a naturally coiled spring. It is this coiled attribute that delivers fluidity in the Escorial fabric making a lightweight garment of crease resistance and comfort.

Founded by New Zealander Peter Radford in 1998, Escorial wool in February this year partnered with renowned Yorkshire textile companies Joshua Ellis and Luxury Fabrics, both who have the heritage and experience to translate the characteristics of Escorial into a luxurious fabric. . . 


Rural round-up

February 9, 2016

Southern Field Days: from humble beginnings to huge event – Brittany Pickett:

From humble beginnings the Southern Field Days at Waimumu have transformed into the second largest in the country. Brittany Pickett set out to find out how Southland’s biennial agricultural magnet began and where it goes to next.

Some have dubbed it the “friendly field days”, a more laid-back version of the National Field Days, but behind the scenes Southern Field Days is anything but laid-back.

Like most events, the Southern Field Days began with an idea; hold an ag-focused event for Southland farmers which was farm-related and had a technical agricultural focus. . . 

Subsidies stall recovery – Neal Wallace:

Subsidies for European and United States farmers, that could be stalling the much-anticipated recovery in global dairy prices, are now being investigated by the New Zealand dairy industry.  

The subsidies were mostly linked to environmental protection rather than milk production but special agricultural trade envoy Mike Petersen and Dairy Companies Association chief executive Kimberly Crewther both believed the payments were shielding farmers from market reality.

“If price signals are masked for European farmers it could mean a delayed response to the dairy price cycle,” Crewther said. . .

‘People Lift’ having an effect – Sally Rae:

During challenging times such as those the dairy industry is now experiencing, being efficient on-farm is crucial.

So for Waipahi farm manager James Matheson, being involved in People Lift has been a beneficial experience.

The initiative, which is being trialled in the Waikato and Southland, has been created by DairyNZ. . . 

Training for Farmstrong cycling tour – Sally Rae:

A cycle seat is not the sort of saddle that Olivia Ross is ordinarily accustomed to.

But Miss Ross (27), a keen equestrian rider and barrel racer, has been enjoying a change of horsepower.

As Beef + Lamb New Zealand’s southern South Island extension manager, a keen Young Farmer, and supporter of all things rural, she has embraced Farmstrong, an initiative launched in June last year to promote wellbeing for farmers. . . 

Big traders forced to rethink –

A World Trade Organisation ban on agricultural export subsidies was more important for its signals on where global trade negotiations could go next than the ban itself, former top trade negotiator Crawford Falconer says.  

Fonterra immediately hailed a “watershed moment for global trade” with the removal of what it described as the “most damaging” subsidy available to governments wanting to support their farmers.  

The description of the subsidies – undoubtedly a drag on world dairy prices in the 1980s and 90s but not used for the best part of a decade – raised eyebrows among some local trade-watchers. . .

Historic Otago coastal property up for sale – Brooke Hobson:

Another piece of New Zealand paradise is up for sale, this time at the other end of the South Island.

Nature Wonders, a privately owned 172-hectare property at Taiaroa Head on Otago Peninsula is on the market as of today.

It comes after Awaroa Inlet in the Able Tasman National Park was listed for sale and a Givealittle campaign started for Kiwis to buy a piece of the property and gift it the Department of Conservation to oversee. . . 

Duck eggs hatch into growing business for Taranaki couple – Christpher Reive:

Forget chickens, duck eggs are the next big thing.

After doing their research about the health benefits of the duck eggs, Taranaki couple Dawn and have started to make a living out of making people, including themselves, healthier. 

“It’s not just about us and the ducks, it’s about helping people,” Dawn said. . . 

Hilux New Zealand Rural Games

Nathan Guy the Minister for Primary Industries and Steve Holland founder of the ‪#‎hilux‬ ‪#‎ruralgames‬ finding a good moist cowpat to throw.

Hilux New Zealand Rural Games's photo.

TVNZ coverage of the games is here  and Newshub’s report is here with the Minister trying cow-pat throwing and saying: “Sometimes we dish it out, sometimes we receive it.”

Hilux New Zealand Rural Games

Who will be judged Outstanding Rural Sports Competitor at this year’s Games and win the Grumpy Graham Trophy? Here’s Games founder Steve Hollander with Mitre 10 New Zealand‘s Stan Scott who made the shield in memory of our founding patron Neil ‘Grumpy’ Graham.
Hilux New Zealand Rural Games's photo.


End of Ag subsidies in sight

January 19, 2016

The 10th World Trade Organisation Ministerial Conference concluded with an agreement of eliminate agricultural subsidies.

. . . Hailed by WTO Director General Roberto Azevêdo as “the most significant outcome on agriculture” in the history of the WTO, this decision includes a commitment to eliminate subsidies for farm exports.1 Developed countries have made a direct commitment to eliminate export subsidies immediately, with the exception of a few agricultural products; subsidies on some of the most sensitive products, such as processed foods, dairy products, and meat, must be phased out by 2020. Developing countries have been granted until 2023 to remove their subsidies, with Least Developed Countries (LDCs) and net food-importing countries having until 2030 to meet their commitments.

The decision to end agricultural export subsidies is widely supported by research from institutions such as IFPRI’s Markets, Trade and Institutions Division, which contributed several reports to this year’s discussions with the WTO Secretariat and a number of WTO member countries. In a recentFSP blog post based on a forthcoming IFPRI Working Paper, IFPRI researchers David Laborde and Eugenio Diaz-Bonilla explained the potential impacts of the full use of existing export subsidy allowances. During recent years of high global agricultural prices, export subsidies were not needed by countries to sell on the global market; thus, the subsidy levels allowed by the WTO were higher than the level of subsidies actually being used. As prices have started to fall, however, this unused portion of allowable subsidies (sometimes called “the water”) could come into play. Using a CGE model, the authors find that if global agricultural prices continue to fall, the unused portion of export subsidies allowed by the WTO could reach US$11 billion. The full use of this amount, the authors estimated, could displace agricultural production in middle- and low-income countries by about US$12 billion, negatively impacting poverty reduction and food security throughout developing regions. The decision in Nairobi to eliminate agricultural export subsidies represents an important step in the right direction to protect poor populations from these harmful effects. . . 

Subsidies benefit a relatively few, generally inefficient producers at the cost of more efficient producers, consumers and taxpayers.

They reduce choice and increase costs.

They also divorce producers from market signals.

When the milk price dropped, New Zealand farmers cut back production but farmers in countries with subsidies didn’t, adding to the problem of supply outstripping demand.

Losing subsidies can cause short-term pain as New Zealand farmers found in the 1980s when we were dragged into the real world, but the medium to long term gains are worth it.

That we’ve already faced up to market realities is one of the reasons we have more to gain from the Trans Pacific Partnership Agreement (TPPA) than the USA:

New Zealand stands to reap considerably greater benefits from the Trans-Pacific Partnership trade and investment agreement (TPP) than the United States, says a new study of the controversial pact by economists at the World Bank.

However, the biggest long term benefits are likely to be in emerging economies like Vietnam and Malaysia, where a combination of manufacturers shifting production to their more competitive economies and structural economic reforms are expected to deliver more than in countries where many of those transitions have already largely occurred. . . 

The World Bank study estimates an increase in economic output for New Zealand by 2030 from TPP of around 3 percent, compared to less than 1 percent for the US and Australia.

New Zealand would be the fourth largest gainer behind Malaysia, Vietnam and Brunei, roughly equal with gains estimated for Singapore.

New Zealand could expect small increases of around 2 percent in output growth, with slightly greater gains in unskilled than skilled labour-intensive industries. . . 

Those opposing the TPPA are fighting against an agreement that will help developing countries and provide greater gains for unskilled workers here.

At least some of the opponents are ideologically opposed to free trade per se. They also ignore the costs of being outside this large and influential trade tent:

. . . Claims that New Zealand has given up sovereignty appear misinformed at best, highly politically-motivated at worst. 

The TPPA sets the rules for more than a third of the world’s trade. More than that, it will play a large role in defining the world we live in should it be voted through by each of the 12 member states.

And for New Zealand’s part in pushing the deal through, it seems likely we’ll take the auspicious role of hosting the document’s signing by all 12 member nations, next month.

But it seems prudent to ask – of those who have done the economic modelling – what would New Zealand look like if it was left behind? 

The World Bank Report is here.


Rural round-up

October 3, 2015

Federated Farmers’ President praises WTO and criticizes those stalling the TPP at Geneva Forum :

The last 20 years of the World Trade Organisation (WTO) have provided an objective framework on which to base our international trade and seen the organisation provide great assistance to small countries like New Zealand.

That was the message from Federated Farmers’ President Dr William Rolleston, Vice President of the World Farmers’ Organisation, in his address overnight to a WTO Public Forum in Geneva.

“New Zealand is a small country, which means our political influence bilaterally can be limited. Without WTO rules, disputes are more likely to be settled on bargaining power rather than the evidence,” said Dr Rolleston. . .

Fossicking in Fonterra’s annual report – Keith Woodford:

The release of Fonterra’s annual report on 24 September coincided for me with a long plane trip back from China. I used the time trying to work out what all the numbers really mean. It was not an easy task.

Fonterra’s annual report – like most reports from large companies –provides masses of numbers. Some are clearly there for public relations purposes. Others are there to meet the required rules of the International Financial Reporting Standards (IFRS). And then there is another set of numbers which Fonterra constructs according to its own rules.

These additional measures are called non-GAAP measures; i.e. ‘non-generally accepted accounting measures’. Fonterra itself acknowledges that these measures are not standard between companies, so comparison must be made with caution. . . 

‘Cloud of dread’ over Filipino workers:

A Filipino worker in the dairy industry says people with false documents are being denied visas and sent home, despite many of them not knowing their paperwork was wrong. 

Immigration New Zealand has confirmed it is investigating multiple work visa applications involving Filipino dairy workers in the South Island, after staff noticed false claims of work experience and qualifications on visa applications.

Roberto Bolanos is a dairy farmer in North Canterbury, who arrived from the Philippines 10 years ago.

Mr Bolanos said the problem started with recruiters in the Philippines who offered people dairy jobs in New Zealand, along with documents, at a cost of, in some cases, $15,000. . . 

Government to consider amending National Bovine TB plan:

An independent Plan Governance Group made up of representatives of funding organisations, OSPRI, and wider stakeholder interests, has reviewed the bovine tuberculosis National Pest Management Plan (TB Plan). Today it gave its final advice on the proposed changes to the TB Plan to the Minister for Primary Industries, Hon Nathan Guy. The changes build on the significant progress made by OSPRI under the current TB Plan.

The Plan Governance Group considered a range of technical and scientific advice, and strongly believes that the eradication of TB from New Zealand is both feasible and economically justifiable. The proposed changes to the TB Plan were consulted on with farmers, local communities, and other stakeholders in June and July this year. Over 400 quality submissions, covering a wide range of issues, were received on the draft Plan proposal, and the Plan Governance Group took them into account as it prepared its final proposal to the Minister. . . 

Rabobank Beef Quarterly Q3 2015: Traded Volumes Are Reaching Quota Limits:

New Zealand and Australia beef exports to the US are set to reach their quota limits in Q4. Meanwhile, global economic conditions—such as the appreciation of the US dollar and the depreciation of the yuan and the real—are having an impact on beef trade, according to the Rabobank Beef Quarterly Q3.

A strong US dollar has led to a reduction in US exports and support for US imports, while a weakening Chinese economy and devaluation of the yuan are curbing beef prices in China, and the devaluation of the real is expected to support Brazilian exports in the coming months. “With little change expected in major beef-trading economies in the coming quarter, other than a possibility of the US FOMC raising interest rates, a strong US currency is expected to continue to affect global beef trade”, according to Angus Gidley-Baird, Senior Animal Protein Analyst at Rabobank. . . 

Commission issues second draft determination on wool scouring assets application:

The Commerce Commission has released a second draft determination maintaining its preliminary view that it should allow Cavalier Wool Holdings (CWH) to acquire New Zealand Wool Services International’s (NZWSI) wool scouring business and assets.

The Commission released its preliminary view on CWH’s application in March 2015 and has since received further information and submissions from interested parties on various matters. The second draft determination has been released to allow interested parties the opportunity to submit on this new information.

Commission Chair Dr Mark Berry said having considered the new information, the Commission is still of the view that the public benefits of the acquisition would outweigh the loss of competition. . . 

Ballance thriving as it plans next 60 years:

Ballance Agri-Nutrients achieved record sales and returned $76 million to shareholders while keeping margins tight and prices affordable, Chairman David Peacocke told the annual meeting of shareholders in Tauranga on Wednesday.

He said the result for its financial year ended 31 May 2015 capped off a milestone year for the co-operative, which celebrated 60 years since the first shares in legacy company Bay of Plenty Fertiliser were issued. Noting the co-operative “not only survives but also thrives”, he said its core value of collective strength remained unchanged while it evolved to meet the current needs of farming.

“What has changed is that farmers are busier, operating over larger properties and working within increasingly tight environmental demands. So along with a secure supply of the right nutrients, we continually broaden our scope to tailor our products, our technology solutions and our advice for today’s farms, and the farms of the future.” . . .


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