Rural round-up

June 28, 2019

More good farmland lost forever:

News that two large New Zealand farms have been sold off-shore, largely for forestry is depressing according to 50 Shades of Green spokesman Mike Butterick. The same owner has purchased both properties.

One farm is 734,700 hectares at Eketahuna that sold for $3.35 million. The other is 1037,000 hectares in Wairoa sold for $6 million.

“It’s bad enough having the land sold to foreigners but having good productive farmland sold for forestry and subdivision is criminal,” Mike Butterick said. . .

Decision time at Westland for Yili bid – Keith Woodford:

The time has come when Westland’s dairy farmers must make their decision. Do they want to take the money and go with Chinese mega-company Yili, or do they wish to struggle on as a co-operative?  We will know the answer after the July 4 vote.

If farmers vote to take the money, it will then be up to the Government to agree or refuse to accept Yili as the new owner. I will be surprised if they disallow the sale under the relevant OIO provisions. The ramifications of that would be severe.

Also important is whether or not the approval from Government is quick or drawn out. It is in no-one’s interest that it be drawn out, but OIO approvals can be remarkably slow.  Yili could step away if approval is not forthcoming by 31 October. . . 

NZ First is not alone in worrying at the implications of a Westland Milk sale to Yili – Point of Order:

Is   Westland  Milk   one of  NZ’s  “key  strategic assets”?

NZ  First  is adamant  it is and believes the government  should be a  applying a  “national interest test”   to the proposed  sale of the company  to the Chinese  dairy giant Yili.

Those  who  see  heavily indebted  companies  like Westland Milk struggling to  make a profit and  not  even  matching  Fonterra’s payout  to its suppliers might take a  cooler view  to  the proposed  sale. . . 

Minister heaps more costs on farmers:

The Minister of Agriculture has confirmed he hasn’t bothered asking his officials the costs farmers will face as a result of the high methane target the Government is imposing, National’s Agriculture spokesperson Nathan Guy says.

“When questioned in Primary Production Select Committee Damien O’Connor scrambled to confirm he’d seen no specific advice for costs per farm, nor has he even asked for any.

“Cabinet have blindly cooked up a methane reduction target of 24-47 per cent, despite scientific evidence suggesting this is too high and without knowing the costs per average farm and the impact it will have on rural communities. . .

Downsizing opens gate to A2/A2 farm:

He’s a dairy farmer with a passion for breeding, striving to be “at the front of the game.” She’s a converted city-girl who fell in love with the dairy farmer, despite her aversion to typical milk.

It doesn’t agree too well with my system,” Stacey White says.

“I used to have soy and almond milk and I’ve tried both them and rice milk; nothing’s really appealed in terms of taste, and baking with those substitutes doesn’t really work either.” 

So when Stacey became aware of A2/A2 milk 18 months ago, she tried it out and found it tasty, creamy, and, crucially, easily digestible.*  . . 

LIC migrates to NZX’s Main Board:

Herd improvement and agritech co-operative LIC will move to the Main Board of the NZX (NZSX) next month, transferring from the Alternative Board.

This comes as NZX announced it will move to a single equities board from July 1 and close the NZAX and NXT.

Of the companies migrating, LIC is the largest by market capitalisation, at approximately $109 million.

There are around 14 agritech companies featured on the NZX Main Board and only one other farmer-owned co-operative (Fonterra). . . 

How NZ farming is like a Steinway piano – Glen Herud:

I wonder if we rely too much on our pasture-based farming or our beautiful scenery or our clean image.

What if the things we think are our strengths are actually weaknesses?

Steinway and Sons had been the leading maker of grand pianos since 1853 when their business was crippled by Yamaha.

Professor Howard Yu explains how Steinway held on to their main strength for far too long and it eventually became a weakness. . .

 


Rural round-up

June 21, 2019

FARMSTRONG: industry digests wellbeing lessons – Luke Chivers:

No one can be under pressure all the time, Farmstrong ambassador Sam Whitelock told farmers at Fieldays.

“Pressure is a good thing but only the right amount.”

“That right amount will change depending on what’s happening – whether you’re tired, you’re eating well or you’re sick.”

Whitelock, who grew up on a Manawatu farm, said locking in small improvements in lifestyle helps manage the ups and downs of farming.

“Rural wellness is a big deal right now. It’s growing in importance as demands and challenges increase on the rural community. . . 

Westland Milk shareholder Southern Pastures to abstain on Yili vote – Jamie Gray:

Westland Milk’s biggest shareholder, Southern Pastures, said it would abstain on the vote called to decide on whether the co-operative can be sold to China’s Yili.

Southern – an investment fund – said the move would allow West Coast farmer-shareholders to decide its future.

Hokitika-based Westland said in March that it had signed a conditional agreement for the sale of the co-op, which will see the Chinese dairy giant pay farmer-suppliers $3.41 a share. The deal is worth $588 million. . . 

Zespri signals profit growth, trims expected fruit and services payment – Gavin Evans

(BusinessDesk) – Kiwifruit marketer Zespri is forecasting annual profit growth of up to 7 percent.

The firm, which markets kiwifruit on behalf of 2,500 New Zealand growers and another 1,200 in Italy, Japan, Korea and France, is expecting net profit of $182-$192 million in the current year, including licence release income.

That is up from the $179.8 million net profit reported for the year ended March, which was a 77 percent increase from the year before as the firm shipped more fruit for better prices. Total trays sold climbed 21 percent to 167.2 million last year – 85 percent of which was New Zealand-grown green or gold kiwifruit. . . 

New lobby chairman: voice for farmers – David Hill:

 A new Federated Farmers dairy-farming leader hopes to be a voice for farmers.

Karl Dean was elected as the federation’s North Canterbury dairy chairman during the provincial annual meeting at Oxford in April, replacing Michael Woodward, who bought a farm in the North Island.

”It was sprung on me a little bit when Woody got a good opportunity up north.

”But I see it as a good way to get more involved and tackle some of the issues which are going to arise with climate change and make sure farmers are aware of the legislation, and that Feds are fighting it.’ . . 

Buy-back scheme must work for rural firearms owners:

The firearms buy-back process for what are now prohibited semi-automatic firearms must work for rural firearms owners, Federated Farmers says.

The process will require farmers to travel to collection points to hand over firearms and agree on the value of the surrendered firearm. A member survey showed that at least twenty percent of Feds members had a firearm impacted by the new regulations, and these owners will be looking for good access and a smooth process for the hand-over of firearms and payment of fair compensation.

“The sooner the details of the process, including the number and geographical spread of collection points/events, are clear the better,’’ Federated Farmers Rural Security Spokesperson Miles Anderson says. . . 

In farm children, I see virtues that one sees too rarely these days – Mitch Daniels:

Mitch Daniels, a Post contributing columnist, is president of Purdue University and a former governor of Indiana.

Along with the rise of women and the expansion of civil rights, the most important social transformation of America’s first quarter-millennium has been the triumph of modern agriculture over famine and the ceaseless, backbreaking effort simply to feed one’s self that had been the dominant fact of human life throughout history. Most of those who preceded us lived their entire lives on the farm. A little more than a century ago, a third of all Americans were farmers.

Successive revolutions in mechanization, horticulture and biotechnology have been an enormous blessing, enabling a tiny percentage of Americans — today fewer than 2 percent— to feed the rest of us and much of the world. Incalculable human talent has been liberated to invent all the other miracles we enjoy. We spend less of our income on food than any society ever. . .


Rural round-up

April 16, 2019

‘M. bovis’ effects force family off farm – Sally Rae:

Graham Hay is preparing to walk off the land his family has farmed for nearly a century.

The Hakataramea Valley property has been in the family since his grandfather took over in 1921 and Mr Hay has lived there all his life.

It is gut-wrenching to hear his voice choking, as he explains how he and his wife Sonja have had no choice but to sell their farm.

Already under financial pressure coming out of an irrigation development phase, he believed they could have farmed through that. . . 

Lessons learned: MPI holds public meeting with farmers – Sally Rae:

Painful lessons have been learned during the Mycoplasma bovis response and hopefully all lessons will be “locked in” and used in the event of another disease incursion, programme director Geoff Gwyn says.

Mr Gwyn was speaking at a public meeting in Oamaru last week, as part of a series of farmer and public meetings throughout the country.

Those meetings came in the wake of the launch of the 2019 Mycoplasma bovis National Plan, released by the Ministry for Primary Industries, DairyNZ and Beef + Lamb New Zealand last week. . . 

Yili bid for Westland Milk raises questions about dairy co-operatives – and Fonterra’s ownership – Point of Order:

On  the face  of  it, it’s  a  no-brainer.  Weighed  down  with  debt,  Westland  Milk,  based in   Hokitika  is financially  on  its  knees.  Riding  to  its  rescue,  Chinese  dairy  giant  Yili  has come in with a  $588m buyout deal   which  will yield  $3.41  a share   to the co-op’s  farmer shareholders,  and, as well,   absorb  Westland’s debt and liabilities.

According to  Westland, the  nominal value of its shares  has ranged  from  70c  to $1.50  per share. For the  average-sized  Westland farm, the  share offer translates to  about half a  million dollars cash.

The offer  looks even  more attractive since  Westland had to  cut its  milk payout  forecast, while other  companies’ forecasts  are rising.  Westland, which has  grown out of  the West  Coast’s  150-year  dairy heritage, hasn’t paid  a  competitive milk price   for  several years. . . 

Lumsden Maternity Centre downgrade may force expectant mothers to travel further

Mothers may be forced to travel further to give birth after a Southland birthing centre was downgraded.

The Southern District Health Board announced the Lumsden Maternity Centre downgrade last August, triggering community outcry, a protest march, petition and appeals to the government.

The centre has become a maternal and child hub where babies are only delivered in an emergency.

The company that ran the centre said mothers travelled from as far away as Queenstown and Te Anau to use the birthing services. . . 

Farmhand’s common sense solution for vegan activism – Andrea Davy:

A YOUNG farmhand has offered up a commonsense approach for stopping the spread of misinformation around Australian farming.

Coming off the back this week’s vegan protests, which rolled out across the nation on Monday, Zoe Carter posted a Facebook live where she called on the industry to “step up” and increase education in schools.

Zoe has more than 140,000 followers online, an audience she has grown through sharing videos and photos from her life working in ag.

In the post, she said the current education system was leaving a huge knowledge gap on how food was produced. And, unfortunately, this space was being filled up with “lies” peddled on social media. . . 

Large-scale highly fertile stock finishing farm for sale:

A highly-productive farm whose grazing stock once produced prized wool used by one of New Zealand’s foremost carpet manufacturers has been placed on the market for sale.

Puketotara, near Huntly in the Waikato, was previously owned by Douglas Bremner – the businessman who founded the legendary Bremworth Carpet brand in 1959. Wool from the Drysdale sheep farmed at Bremner’s Puketotara farm was used in the production of quality carpet manufactured at the company’s mill in South Auckland.

The Bremner family sold the property in 1989, and soon after it was converted into an intensive breeding and finishing farm – stocking beef and sheep and producing cash crops.. . 


Rural round-up

March 27, 2019

Westland’s biggest shareholders sit on the fence over Yili offer:

Westland Milk’s biggest shareholders — investment fund Southern Pastures and the state-owned Landcorp — are biding their time over Yili’s takeover offer.

Hokitika-based Westland said this week that it had signed a conditional agreement for the sale of the co-op, which will see the Chinese dairy giant pay farmer-suppliers $3.41 a share.

Westland will seek shareholder approval for the proposed transaction at a special shareholder meeting, expected to be held in early July.

Southern Pastures, which has former All Black Graeme Mourie as one of its principals, owns 5.5 per cent of the co-op, which would be worth $13.6 million under the offer.  . . 

Nait a difficult beast but NZ ‘had no chance’ against M. bovis without it – Esther Taunton:

Cattle on 150 farms have been checked against national animal tracing records as part of efforts to wipe out the cattle disease Mycoplasma bovis but just one property passed muster.

Dr Alix Barclay, the Ministry for Primary Industries’ intelligence manager for the M. bovis response, said only one property had achieved a 100 per cent match with its National Animal Identification and Tracing (Nait) account.

The disappointing result highlighted the importance of making changes to the system, Barclay said. . . 

Hayward family cultivate success in South Canterbury by seizing the day – Samesh Mohanlall:

Farming operations flourish on hard work, seizing the chances that come your way and having people that are trustworthy around, the family of a successful South Canterbury venture say. 

Geoff Hayward and his wife Joy, who own and lease 1700 hectares of land for their sheep, beef and cropping operation across the Timaru district, told about 50 visitors to their Mt Horrible farm from the Beef + Lamb annual meeting on Thursday, that the key to their expansion is taking opportunities that come their way. . . 

Pitching in to protect mudfish:

They may be tiny, slimy and reclusive, but the Canterbury mudfish are well worth protecting. 

Kōwaro, as they’re named in te reo Māori, are a treasured species for local iwi Ngāi Tahu and having more of them around helps protect other freshwater natives such as kōura (crayfish) and kākahi (mussels).

Unfortunately, they’re also rare and endangered. 

Fonterra is providing funding to Environment Canterbury to help them implement innovative technology in what is the first project of its kind in the Southern Hemisphere. . . 

A2 names China CEO –  Gavin Evans:

(BusinessDesk) – A2 Milk Co has appointed Li Xiao as chief executive of its greater China operations.

Li was previously president of the Kids Entertainment Division of Wanda Group, a Chinese multinational which owns the Hoyts cinema group. He starts in the A2 Milk role at the end of April, based in Shanghai, and will join A2’s senior leadership team. He will report to the firm’s Asia-Pacific chief executive Peter Nathan and managing director Jayne Hrdlicka. . . 

Patience needed for Fonterra’s streamlining, says FNZC’s Dekker – Paul McBeth:

 (BusinessDesk) – Farmers and investors will need to be patient with Fonterra Cooperative Group’s overhaul of its business, which sometime-critic First NZ Capital analyst Arie Dekker says is moving in the right direction.

The cooperative’s board is working through a review of the business which has seen several assets put on the market to help cut the milk processor’s debt levels, and has signalled more divestments are coming. . . 

Miscanthus – the magic plant:

In a Rural Delivery television programme last year Prof Steve Wratten of Lincoln University described Miscanthus as a “magic plant”. Although there was a degree of poetic licence in that statement, it is very understandable why he described Miscanthus in that way. But there are no magicians involved. Miscanthus is a truly remarkable plant that has so many advantages and options for commercial use that people who hear about it tend to think “This is too good to be true!”.

So they ignore it. The phenomenal success of Miscanthus therefore actually detracts from securing serious interest in both growing and using it. Contrary to people’s initial reaction, what seems like hype, is in fact true. . . 

It’s time to strengthen trespass laws:

Activist trespassers are making a joke of our legal system – carrying out brazen invasions of private farms and walking away with a slap on the wrist, only to reoffend. It’s time for governments to act.

In recent months we’ve witnessed a spate of farm invasions by activists who think their opinions place them above the law.

These farm intruders are entering private premises, often in the dead of night, often while streaming live on the internet – all just a stones’ throw from where farmers and their families are sleeping.

Police and the court system have proven powerless to help, with those caught walking away with fines equivalent to a parking ticket. . . 


Rural round-up

March 21, 2019

Shareholders say sale was inevitable – Brendon McMahon:

The possible sale of Westland Milk Products to China is a ”sad day” for the West Coast but necessary to save the business, a sample of farmer-shareholders said yesterday.

The Hokitika dairy co-operative, praised for years for retaining its independence in the face of Fonterra amalgamations, is poised to be sold to the Chinese dairy giant Yili.

Harihari dairy farmer and former board member Jon Sullivan greeted the news yesterday morning with ”she’s gone”.

Farmers had been left with ”no choice” but to sell, he said. . . 

Fonterra Announces 2019 Interim Results And Updates on Its Portfolio And Strategic Reviews:

Fonterra Co-operative Group Limited today announced its 2019 Interim Results which show the Co-op has returned to profitability with a Net Profit After Tax (NPAT) of $80 million, but normalised Earnings Before Interest and Tax (EBIT) are down 29% on the same period last year to $323 million.

• Key numbers in Interim Results
o Sales volumes 10.7 billion liquid milk equivalents (LME), up 2%
o Revenue $9.7 billion, down 1%
o Normalised EBIT: $323 million, down 29%
o NPAT: $80 million, up 123%
o Total normalised gross margin: $1.5 billion
Ingredients Gross Margin: $791 million, down 9%
Consumer and Foodservice Gross Margin: $766 million, down 7%
o Full year forecast earnings: 15-25 cents per share
o Forecast Farmgate Milk Price: $6.30-$6.60 per kgMS
• Sales process started for Fonterra’s 50% share of DFE Pharma
• Completed the sale of Corporacion Inlaca to Mirona
• Update on full strategy review . . 

Fonterra to hit debt reduction target from asset sales – Paul McBeth:

 (BusinessDesk) – Fonterra Cooperative Group expects to slice $800 million from its debt ledger through the sale of assets already signalled for the block.

The world’s biggest dairy exporter is strengthening its balance sheet as part of its wider strategic review. That’s included the divestment of a range of assets no longer deemed central to the cooperative’s future, the latest of which was a 50 percent stake in DFE Pharma – a joint venture with FrieslandCampina which supplies bulking agents, or excipients, in medicines including tablets and inhalers.

Fonterra has already announced plans to sell ice-cream maker Tip Top, with investment bank First NZ Capital receiving final bids earlier this month. It’s also considering its options for its 18.8 percent stake in Beingmate Baby & Child Food. . . 

Comforting news for dairy farmers as companies report results and the world price rises again – Point of Order:

Encouraging signs emerged this week that key elements in the structure of NZ’s largest export industry are whipping themselves back into the shape they should be.

The giant  co-op  Fonterra  has  gone back  into the  black  with a net profit of $80 million in the  first half,  after previously recording  a  net  loss of  $186m.

Meanwhile Westland Milk Products, NZ’s second biggest dairy co-op, is in line to be  sold  to China’s biggest  dairy company,  Yili,  in  a $588m  transaction that would inject nearly half a million  dollars into the operations of  each  of its  suppliers. . . 

Fonterra’s culture change– Craig Hickman:

Is it just me or is Fonterra undergoing a remarkably rapid culture shift in a very short space of time?

Last year I attended the Ashburton leg of the Fonterra Financial Results Roadshow: quite apart from the delicious lunch and sneak preview of the new Whittaker’s ice cream, it was a chance to hear then interim-CEO Miles Hurrell  and new board chair John Monaghan deal with the unpleasant reality of Fonterra’s first ever financial loss.

Miles especially came across as humble, honest and realistic, and those are attributes in direct contrast to the brash and overly optimistic Fonterra leadership we are used to seeing.  . . 

Interim Results support the need for fundamental change :

The Fonterra Shareholders’ Council supports today’s acknowledgement that fundamental change is needed to improve the performance of the Co-operative.

“Fonterra’s farmer shareholders will agree that the results announced today are not where they should be,” says Council Chairman Duncan Coull. “The Shareholders’ Council backs the Board and Management’s initiative to thoroughly review strategy. A well defined and executed strategy focused on our farmers’ milk is critical to maintaining sustainable returns and an enduring co-operative for generations to come.” . . 

Significant investment in major growth projects for Synlait:

– NPAT half year profit of $37.3 million
– Re-confirmed guidance for canned infant formula volumes of 41,000 – 45,000 MT
– Manufacturing efficiencies have supported improved production and sales volumes
– Key growth projects including Synlait Pokeno and our Advanced Liquid Dairy Packaging Facility remain on track
– New growth opportunities in liquid milk, Talbot Forest Cheese and lactoferrin expansion
– New purpose ‘Doing Milk Differently for a Healthier World’ established. . . 

Hyslop elected to Beef + Lamb directorship – Sally Rae:

Irrigation New Zealand chairwoman Nicky Hyslop has ousted sitting Beef + Lamb New Zealand director Bill Wright.

She beat Mr Wright, a Cave farmer, by a margin of 1808 votes in the recent Central South Island director election.

Mrs Hyslop and her husband Jonty farm Levels Estate, an intensive sheep, beef and arable property on the outskirts of Timaru.

Mr Wright was elected in 2016, having previously been chairman of the B+LNZ Central South Island Farmer Council for six years. . . 

Urban-fringe kiwifruit orchard with growth potential placed on the market for sale:

One of closest commercial kiwifruit orchards to Auckland’s urban boundary – with potential to treble its production capacity – been placed on the market for sale.

Known as MacLachlan Orchard, the 12.2-hectare property at 90 Mullins Road in Ardmore is planted on flat land, and is forecast to produce some 42,000 trays of fruit in the current season.

The orchard’s 3.3 canopy hectares of productive land comprises some 2.29-canopy hectares of the Hayward green kiwifruit variety and 1.07 canopy hectares of the G3 gold kiwifruit strain picked off vines which were grafted some six years ago. . . 


Rural round-up

March 27, 2017

24-hour shearing marathon for suicide prevention raises thousands – Leighton Keith:

The buzz of clippers went silent and was replaced by cheers and applause in a Taranaki woolshed as a 24-hour shearing marathon came to an end.

The event, held just out of Whangamomona on Sunday, had been organised by John Herlihy to raise awareness for suicide prevention following the death of his son Michael in January 2016.

Michael’s death, a suspected suicide, shocked New Zealand’s close knit shearing community and came just 10 days before he and his five brothers, Paul, Mark, Craig, Tim and Dean were planning to set a new world record by shearing 3000 lambs in just eight hours. . . 

The Green Issue: Linkwater dairy farmers see benefits in more sustainable farming practices – Mike Watson:

Linkwater dairy farmers Jason and Amber Templeman​ entered the region’s leading environment awards to show the positive aspects of the dairy industry, they say.

“The dairy industry has been getting a lot of bad publicity over environment standards,” Jason says.

“Entering the awards was an opportunity for us to show what the dairy industry was doing positively.” . . 

In the field – Guy Williams:

For the past two summers, teams of academics and students from the University of Otago have made field trips into a stretch of spectacular high country between Arrowtown and Lake Wanaka. Queenstown reporter Guy Williams finds out what they are up to.

It is a glorious morning after a night of wind, rain and broken sleep at the Skippers camping ground.

On the final day of a three-day field trip to Coronet Peak Station, two University of Otago summer bursary students are helping Dr Christoph Matthaei, a freshwater ecologist from the university’s zoology department, take water samples from a tributary of the Shotover River.

The hustle and bustle of Queenstown is only 20km to the south, but in this gully on the flanks of the Harris Mountains, it feels like the middle of nowhere.

The trio are on the western edge of Mahu Whenua (Healing the Land), the name given to a vast tract of country encompassing four high country stations stretching from Arrowtown most of the way to Wanaka’s Glendhu Bay. . . 

Commodity prices hide ‘solid’ Fonterra performance – Dene Mackenzie:

Volatile commodity prices hid a solid performance from dairy company Fonterra when it reported its first-half profit last week, Forsyth Barr broker Lyn Howe said.

In a detailed analysis of the result, Ms Howe said Fonterra had continued to shift volume from commodity areas towards its higher value consumer and foodservice business.

Fonterra posted normalised earnings of $607million for the six months ended January, down 9% on the previous corresponding period. The result was ahead of Forsyth Barr expectations. . . 

Yili expects more jobs as plant grows – Shannon Gillies:

A promise of more jobs came from dairy giant Yili as it celebrated the opening of its stage two development at its Glenavy production plant on Saturday.

Official celebrations were in Auckland, but Glenavy and surrounding areas should be gearing up for employment opportunities at the Oceania Dairy production plant, a company spokeswoman said.

She said while stage two was not operational, it was due to be ready for production in August. . . 

Ashburton wool growers top sale:

The feature of the South Island wool sale on Thursday was the sale of a small amount of merino wool offered by Rata Peaks Station, Ashburton, CP Wool spokesman Roger Fuller said.

The wool created heated demand from exporters. A line of merino hogget 17.7 micron reached 3104c clean and 1900c greasy.

”This was on the back of the Australian market reaching highs not seen for many years.” . . 

2018 Dairy Industry Awards to be held in South Island:

The 2018 New Zealand Dairy Industry Awards are heading south!

At the Southland-Otago Dairy Industry Awards dinner on Saturday in Invercargill, it was announced that the 2018 New Zealand Dairy Industry Awards will hold their national awards dinner at ILT Stadium in Invercargill on 12 May 2018.

The last time the Nationals were held in the South Island was 2011, when they were held in Queenstown.

The awards oversee the Share Farmer of the Year, Dairy Manager of the Year and Dairy Trainee of the Year competitions. . . 


Rural round-up

September 22, 2015

Oceania Dairy Guarantees Minimum Payout:

Oceania Dairy has delivered good news to its supply farmers with a guaranteed minimum milk payout of $4.50 per kilogram of milk solids for the 2015/16 dairy season.

As the New Zealand dairy sector reels from continued turbulence in global dairy markets Oceania has sought to support its local supply farmers and their communities with the guarantee.

“With Fonterra reducing its forecast payout for the season to $3.85, we wanted to send an important signal of support and partnership to our supply farmers,” said Roger Usmar, General Manager, Oceania Dairy Limited.

“Backed by our owner, Yili, Oceania Dairy has looked at how we can practically support our suppliers at a difficult time for the sector. . . 

Dairy prices a ‘hot topic’ at world summit – Jemma Brackebush:

Farming leaders from around the globe are gathering in Europe this week for the World Dairy Summit.

The week-long summit gets under way today in the Baltic State of Lithuania.

Federated Farmers dairy chairperson Andrew Hoggard is attending and said the main focus would be on science, the environment, animal welfare and international trade.

A hot topic will be how farmers around the world react to low dairy prices, he said. . . 

Factory expands in ‘leap year’ – Allison Beckham:

The addition of three further milk processing plants to Fonterra’s Edendale factory – already the largest in the world by volume – means Fonterra can make a wider range of products and respond more quickly to demand, managing director of global operations Robert Spurway says.

The company has almost completed a $157 million expansion. A new 2900sq m building houses three processing plants – a milk protein concentrate (MPC) plant to separate protein from skim milk and turn it into protein powder, a reverse osmosis plant to increase the capacity of an existing drier by about 300,000 litres a day, and an anhydrous milk fat plant capable of processing 550,000 litres of cream daily. . . 

Synlait annual profit slumps 46% as lactoferrin sales struggle, forecast payout cut – Paul McBeth:

(BusinessDesk) – Synlait Milk, which counts China’s Bright Dairy & Food as its biggest shareholder, posted a 46 percent drop in annual profit as lactoferrin sales missed expectations and it kept milk payments high enough to ensure supply. Synlait cut its payout forecast for the current season.

Net profit dropped to $10.6 million, or 7.21 cents per share, in the 12 months ended July 31, from $19.6 million, or 13.4 cents a year earlier, the Rakaia-based milk processor said in a statement. That was just within the $10 million-to-$15 million forecast Synlait gave when reporting its first-half results in March. Revenue fell 25 percent to $448.1 million, and the bottom line was also weighed on by a $1.6 million unrealised loss on foreign exchange.

Synlait is “in a global operating environment where milk prices have fallen to unsustainably low levels and this is reflected in our FY15 revenue,” chairman Graeme Milne said. “Our suppliers are an important part of our business and we’ve prioritised paying them higher advances and final payments for their milk, relative to our earnings, in what has turned out to be the first of probably two very challenging years on farm.” . . .

 .s on for New Zealand’s next generation of agri-leaders:

• Applications for the 2016 Zanda McDonald Award now open

Agriculture’s young leaders in New Zealand are being urged to step forward and apply for the 2016 Zanda McDonald Award.

Open to agri-business professionals with natural leadership skills from across New Zealand and Australia, the award comes with a $30,000 prize package comprising; an overseas mentoring trip, a place on Rabobank’s Farm Manager’s Programme and $1,000 cash.

Applicants aged 35 or younger and currently in paid employment in agriculture have until Friday 30th October 2015 to submit their entries. . . 

B+LNZ CHIEF EXECUTIVE SIGNALS MARCH 2016 DEPARTURE:

Beef + Lamb New Zealand chairman, James Parsons has today announced the resignation of the organisation’s chief executive, Dr Scott Champion. Dr Champion will leave the industry body, and also his role as chief executive of the New Zealand Meat Board, at the end of March 2016, after 10 years with the organisations.

Dr Champion commenced with then Meat & Wool New Zealand, as General Manager Market Access and Market Development in March 2006. He then stepped up to the CEO roles in late September 2008.

Most recently, Dr Champion has successfully led Beef + Lamb New Zealand (B+LNZ) through the 2015 Sheepmeat and Beef Levy Referendum which secured over 84 per cent support for the organisation to continue working on behalf of farmers. . . 

First-Time Entrants Enjoy Farm Environment Competition:

It took West Otago farmers Richard and Kerry France about eight years to enter the Ballance Farm Environment Awards (BFEA) but they finally gave it a go last year.

Richard says the experience was well worthwhile and his recommendation to other first-time entrants is to not leave it as long as they did.

“It’s a very well-run competition and it makes you take a ‘big picture’ look at the sustainability of your operation,” he says.

“We put up our hand this year because we felt our farm was ready, but my advice to other farmers would be to get in as soon as you can because that way you will get the benefits earlier.” . . .

Red Meat Profit Partnership and New Zealand Young Farmers partner for education programme:

The Red Meat Profit Partnership (RMPP) has teamed up with New Zealand Young Farmers to promote the value of Education in Agriculture. This new programme offers teachers and students the chance to engage with the Primary Sector to highlight the opportunities within New Zealand’s largest export led industry. This journey is to be “triggered off” with a launch event in Christchurch on September 22.

This programme will offer teachers and students the chance to engage with the Primary Sector to show the vast learning and career opportunities within the industry. Much more than “on-farm” careers this programme encompasses the full value chain – the science, innovation, marketing as well as the global consumer. . . 

Fonterra Shares Further Results of Its Business Review:

Fonterra Co-operative Group Limited today provided a further update on its business review.

Fonterra Chief Executive Theo Spierings said the purpose of the review was to ensure that Fonterra remains well positioned to compete in a rapidly changing global dairy market.

One-off savings generated by changes the Co-operative is making during the business review, such as improving working capital, have already enabled the Co-operative to support our farmers during challenging market conditions. . . 

Zespri shares innovation in inaugural Symposium

Zespri invests over $15 million in kiwifruit innovation science each year and the inaugural Kiwifruit Innovation Symposium on 29 October in Mt Maunganui gives people a chance to see the latest developments for themselves.

Zespri General Manager Marketing and Innovation Carol Ward explains innovation is huge part of the industry with significant investment from Zespri, along with the NZ government and industry. Zespri wants to share this work with its community and hear their ideas about where innovation could go in the future.

“We want to show our growers and industry what’s coming up and the future challenges we’re tackling. The focus for the past few years has been on developing tools and techniques to grow profitably with Psa – now we’re turning our focus back to other areas again and we want to bring industry along with us. . . 

Keeping on top of worms – Mark Ross

Managing internal parasites (worms) is one of the biggest challenges that farmers face in producing healthy stock.

According to research, there is widespread resistance to several drench families in sheep, cattle, deer, and goats on New Zealand farms. This is estimated to cost farmers in excess of $20 million per annum.

Resistance can develop to any drench. So every farmer needs a plan to manage the risk of worm resistance on their farm. Animal welfare and productivity in the future will rely on farm plans that are developed today to control the emergence of drench resistance on farms. . . 


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