Rural round-up

December 15, 2017

Fonterra releases first Sustainability Report on environmental and social performance:

Fonterra is proud to publish its first Sustainability Report, detailing its environmental, social and economic performance.

The Sustainability Report follows Fonterra’s recent announcements on emissions and clean water in New Zealand, and highlights the Co-operative’s commitment to an open discussion on how it is taking its responsibilities seriously and where it is making real progress. The report was compiled using the internationally recognised Global Reporting Initiative (GRI) framework and independently assured. This follows global best practice and underlines the integrity of the report.

The dairy industry is a cornerstone of the New Zealand economy but its environmental footprint is of national significance. The report gives an objective view of Fonterra’s environmental footprint and our contribution to the United Nations Sustainability Development Goals. . .

Beef + Lamb New Zealand launches drought resources for farmers:

Beef + Lamb New Zealand has launched an online resource for farmers affected by the dry conditions.

The resources include a fact sheet outlining strategies to manage and mitigate the effects of drought, coping with stress on the farm and advice on feed requirements and animal welfare during the dry period.

Sam McIvor, chief executive of Beef + Lamb NZ, says with the correct planning and use of tools such as early weaning, body condition scoring and feed budgets, farmers can make the most efficient and effective use of limited feed resources. . . 

Beef + Lamb NZ backs call for beef trade liberalisation:

Beef + Lamb New Zealand (B+LNZ) strongly supports the International Beef Alliance’s call for Ministers at the World Trade Organisation Ministerial Conference to agree on a path to trade liberalisation while protecting beef producersâ ™ livelihoods.

The Eleventh Ministerial Conference (MC11) of the World Trade Organization is being held in Buenos Aires, Argentina, from 10-13 December.

Sam McIvor, chief executive of B+LNZ, says: “We back the IBA’s call for Ministers at the WTO Ministerial Conference to reduce or eliminate the use of trade-distorting agricultural subsidies, amongst other production and market distorting measures. . . 

Dairy cattle numbers dip:

The number of dairy cattle dipped 2 percent from 6.6 million in June 2016 to 6.5 million in June 2017, Stats NZ said today.  

The provisional figures are from the 2017 agricultural production census. Final figures will be available in May 2018.

“From 2012, dairy cattle numbers have been relatively unchanged, after increasing over 20 percent or 1.2 million between 2007 and 2012,” agricultural production statistics manager Stuart Pitts said. . . 

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Census mirrors ‘better efficiency, better for environment’ approach:

Relatively small movements in livestock numbers in the year to June 2017 may indicate New Zealand agriculture is reaching herd equilibrium, Federated Farmers Dairy Chairperson Chris Lewis says.

Figures from Stats NZ’s 2017 agricultural production census show dairy cattle numbers dropped 2 per cent from 6.6m to 6.5m in the 12-month period.

The dairy cattle count has been largely stable since 2012.

“Farmers have a strong and increasing focus on sustainability and further improving their environmental footprint, and that is translating into maintaining or reducing dairy cattle numbers and instead looking for gains by boosting production per head,” Chris said. . . 

Pumpkin & kumara prices at record level:

Pumpkin prices increased 176 percent in the year to November 2017, to reach $5.78 a kilo, the highest price since the food price series began in December 1993, Stats NZ said today. Pumpkin and kumara are typically more expensive in November, but both hit record levels after larger-than-usual increases this year.

“Poor growing conditions due to the wet weather early this year had a huge impact on the supply of pumpkin and kumara,” consumer prices manager Matthew Haigh said. “Pumpkin prices have reflected lower supply, with dramatic price increases in the last three months, while kumara prices increased more steadily through the year.” . . 

Low N cow project:

DairyNZ will lead a seven-year $21 million research partnership to contribute to cleaning up rural waterways.

The central idea is to breed cattle with less nitrogen in their urine.

Participating scientists will come from DairyNZ, Abacus Bio, A. L. Rae Centre for Genetics and Animal Breeding, AgResearch and Lincoln University.

The Government has granted $8.4m to the project, $11.5m will come from farmers’ levy payments to DairyNZ, and the balance will come from CRV Ambreed and Fonterra.

A2 CEO Geoff Babidge to leave in 2018, replaced by Jetstar’s Jayne Hrdlicka – Sophie Boot:

 (BusinessDesk) – A2 Milk Co managing director Geoff Babidge will retire next year, and will be replaced by Jetstar chief Jayne Hrdlicka.

Babidge has been in the role since 2010, and in the past two years has seen the share price jump from around $1 at the end of 2015 to a recent record of $8.75. The shares have soared on the back of successive strong sales, with the company’s infant formula attracting strong demand in China, and have gained recently on scientific evidence about the nutritional value of its milk, which comes from cows selected to produce only A2 beta-casein, unlike most dairy products, which contain both A1 and A2 proteins. . . 

Experienced senior manager joins AVOCO to strengthen market development:

 Steve Trickett has joined AVOCO’s senior management team to expand on market development in Asia and oversee grower communications at home.

A familiar face to many New Zealand avocado growers, Steve has joined the company as Marketing and Communications Manager and is responsible for market planning and performance with focus on new and developing markets where fruit carries the AVANZA brand. He will support the existing sales and marketing team, oversee contestable fund applications and develop AVOCO’s communications and profile among the grower community. . . 

NZ Ag: Why rural marketers need emotional intelligence (EQ) – St John Craner:

I’ve always been fascinated by why people buy since I was a kid. It started when my Dad took me to Twickenham every cold December to watch the Varsity (Oxford Cambridge match) which he’d do every year with his truck drivers as a thank you to them for all their hard work that year. As I sat in the stands I always wondered why did the Tetley, Whitbread or Coca Cola billboards on the pitch influence people to buy.

Over more recent years I’ve noticed rural marketers not sharing the same fascination by recognising and harnessing the power of emotion in their customer’s decision making and buying behaviour. Some continue to treat their customers as if they were predictable and rational which is the same mistake Economists make. If they could understand the emotional state and drivers of their customers more they would be rewarded with closer and more profitable relationships and higher level of referrals, let alone promotions.

Emotional drivers are a powerful force and comes in many forms such as: . . 

Bakers, farmers struggle to make any dough on poor wheat crop – Rod Nickel & Julie Ingwersen:

 Chicago’s iconic sandwiches – Italian beef heroes dripping with gravy, and hot dogs loaded with pickles and hot peppers – wouldn’t be such culinary institutions without the bread.

But this fall, bakers faced a crisis getting the right kind of bread to delis and sandwich shops locally and across the United States.

Gonnella Baking Co – which supplies the buns to Major League Baseball’s Wrigley Field – faced an unusual problem in October when flour from this year’s U.S. wheat harvest arrived at their factories containing low levels of protein. . . 


Rural round-up

November 28, 2015

Trade agreement opens door for agricultural exporters:

The Trans-Pacific Partnership has dominated media recently, but a Lincoln University expert says an equally significant trade-related development has gone largely unnoticed.

Agribusiness and Commerce lecturer Eldrede Kahiya said the Global Procurement Agreement (GPA) – which New Zealand became part of in August – opened up a $2.65 trillion-dollar market for New Zealand exporters.

Dr Kahiya said the GPA came within the framework of the World Trade Organization, and was designed to make it easier to compete for foreign government contracts. . . 

Livestock antibiotics to be replaced with vaccines by 2030:

Antibiotics for livestock are likely to be replaced with various vaccines by about 2030, and the value of New Zealand meat exports will grow because of the switch.

That growth was among the findings in a new report by the Veterinary Association, which shows the antibiotic era was coming to an end because of a growing resistance to them.

A consultant for the Association, Eric Hillerton, said antibiotics would still exist but they would not be a first choice in animal health. . . 

Slight drop in production keeps focus on high value products:

Westland Milk Products says its 2.5 percent drop in peak milk processing has meant more capacity available for the co-operative and its shareholders, enabling more focus on added-value product.

Chief Executive Rod Quin today confirmed that Westland hit peak mid November. In total, Westland processed 3,843,250 litres of milk by peak flow, compared with 3,931,022 the season prior.

“This slight drop, combined with our new dryer seven coming into commercial production meant we had greater capacity to put more of the peak milk flow into higher value products,” Quin said. “In previous years peak milk has all been channelled into bulk milk powders to maintain throughput, which give a lower return compared to products such as infant formula. . . 

Peter Tate makes the case for the broker and auction based system to sell New Zealand’s wool – Peter Tate:

New Zealand agriculture efficiently produces large volumes of commodities and while it would be great to have a stake in all the added value from the front end of the commodity chain, the large amounts of capital both intellectual and financial required, makes it difficult to achieve.

There are some companies that seek publicity about sales contracts they have made. That’s fine but often the fanfare is over a very small volume of product. This distorts the view growers have of marketing to the point that they think these companies are the only ones doing anything to market the NZ wool clip.

The real exporters, those with the long track records, continue to stay out of the limelight. This is due to what is called commercial sensitivity, it is an extremely competitive business. More cut throat than meat marketing, hence the old Yorkshire phrase “meaner than a mill boss”. So the firms who are selling and shipping  90% of the NZ clip remain tight lipped about their daily deals. . . 

RSE employers praise seasonal worker scheme:

Immigration Minister Michael Woodhouse says two recent reports show the huge benefits of the Recognised Seasonal Employer (RSE) scheme to employers, workers and the Pacific region.

A report into a pilot project involving 640 Tongan and Samoan RSE workers has found that they sent home more than 40 per cent of their take-home income between November 2014 and June 2015 –an average of between $4,600 and $5,500.

“Remittances have been playing an increasingly important role in reducing the scale and severity of poverty in the developing world,” says Mr Woodhouse. . . 

Praise for seasonal employment scheme:

Experience confirms two recent reports showing huge benefits from the scheme to employers and workers, the Rural Contractors Association says.

Immigration Minister Michael Woodhouse released the reports in which employers continued to praise the scheme, with an annual survey showing 95 percent believed the benefits of participating in the scheme outweighed the costs.

Rural Contractors President Steve Levet said it had made great inroads into being able to bring in seasonal machine operators to alleviate a shortage of labour in that area. . . 

Sound science point of difference for Waipara winemakers:

More than two decades of soil science work in the Waipara area has been brought together in a document launched at a Vineyard Soils Day at Black Estate Vineyard this week.

The document was received with enthusiasm as an invaluable resource by local wine growers, who acknowledged the potential for far greater collaboration in research initiatives between wine growers and Lincoln University.  

Former Lincoln University soil scientist Dr Philip Tonkin, Associate Professor Peter Almond, current Head of the Soil and Physical Sciences Department, Trevor Webb from Landcare Research, and other scientists, have spent the best part of the last two years drawing together available information on the geology and soils of the region gathered in the last 20 years, along with the records of former Soil Bureau surveys. . . 


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