Rural round-up

05/04/2021

CCC submissions flood in – Neal Wallace:

Methane reduction targets remain a contentious issue for the livestock sector, which is critical of Climate Change Commission recommendations for an even steeper reduction pathway than proposed in the Zero Carbon Act.

Beef + Lamb NZ, DairyNZ and Federated Farmers are labelling the proposed new targets as unrealistic and not backed by robust science, economic or farm system analysis.

B+LNZ chief executive Sam McIvor says the revised target is a 13.2% reduction in biogenic methane emissions below 2017 levels by 2030.

“This represents a 32% increase in the level of ambition compared to the 2030 biogenic methane target contained in the Zero Carbon Act, which is to reduce methane emissions to 10% below 2017 levels by 2030,” McIvor said. . . 

Smith to push for more automation in the hort sector – Peter Burke:

More automation in orchards – that’s what Ministry for Primary Industries (MPI) director general Ray Smith says he’s going to push hard for in the coming 12 months.

He told Rural News that there is real growth in horticulture and the opportunity for more, but New Zealand as not solved the labour supply problem.

“Too much of the horticultural industry has been built off the back of immigrant labour and the risk of that is what we see now,” Smith says.

“If anything goes wrong with that supply chain of workers then you have massive problems. That is why there is a need for the investment in automation and we want to see this directed to what can be done in orchards.”

Milking shed ravaged by fire, community spirit gets farmers back up and running – Joanne Holden:

A South Canterbury farmer whose milking shed, built by his father, was ravaged by fire has got his dairy operation back on track, with a little help from his friends.

The 30-year-old Waitohi milking shed was “fully ablaze” when Hamish Pearse, and five of his staff, grabbed a fire hose each and attacked the flames, keeping them at bay until the fire brigade arrived with five appliances about 20 minutes later.

“The staff were pretty shaken up by the whole thing,” Pearse, of Waitohi, said.

“My dad was emotional about it too, because he built that milking shed himself . . . He came back to see his pride and joy burnt down.” . . 

Synlait ponders lack of profit – Hugh Stringleman:

Synlait may not make a profit this financial year because of sharply reduced orders from a2 Milk Company for packaged infant formula, rising dairy commodity prices and global shipping delays.

At the start of the season Synlait directors expected net profit in FY21 to be similar to last year’s $75 million, then in December they said net profit would be approximately half that of FY20.

They have now said the anticipated result for FY21 will be “broadly breakeven”, which includes the possibility of no profit overall and a small loss in the second half, which is already two months old.

When releasing its first-half results, Synlait said the December downgrade from major customer and minority shareholder a2MC was significant and sudden. . . 

Wyeth’s move west welcomed – Peter Burke:

A few weeks ago, Richard Wyeth took over as chief executive of Yili-owned Westland Milk Products and says his first impressions of the company and its people are positive.

It was only a few months ago he was head of the highly successful Maori-owned dairy company Miraka – a company he helped set up from scratch.

However, Wyeth says he’s really enjoying the new job at Westland and what’s really impressed him is the people in the business.

“There is a really strong desire to see the business do well and people are working really hard to do this,” he told Rural News. . . 

Scientists are testing vaccines for flystrike – Chris McLennan:

Scientists believe they are closing in on a commercial vaccine for flystrike.

Prototype vaccines have already been developed half way through a four-year $2.5 million research project between the wool industry and CSIRO.

A potential vaccine against flystrike has been the subject of decades of research work.

Blowfly infestation of sheep wool, skin and tissue results in an estimated $280 million losses to the wool industry. . . 


Rural round-up

28/06/2019

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

21/06/2019

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

16/04/2019

‘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

27/03/2019

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

21/03/2019

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

27/03/2017

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

22/09/2015

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. . . 


Rural round-up

30/11/2014

New Glenavy Dairy Factory Officially Opened:

Leading global dairy company, Inner Mongolia Yili Industrial Group (Yili), today officially opened its $236 million Oceania Dairy factory in Glenavy, South Canterbury.

Yili also confirmed plans to invest a further $400 million in the South Canterbury factory over the next five years, increasing its total investment to in excess of $600 million.

Yili is China’s largest dairy company and one of the top ten dairy companies in the world. Oceania Dairy Limited is a wholly owned subsidiary.

The first stage of the Glenavy factory was completed in September and the factory is in its first full season of production. . .

 NZ secondary schools eye agribusiness subjects to bolster industry –  Tina Morrison:

New Zealand secondary schools are trialling an agribusiness programme which aims to feed more students into tertiary study to provide future talent for the industry.

Some 48 students trialled a pilot curriculum at St Paul’s Collegiate School in Hamilton this year with another 85 signed up for next year, the school said in a statement. Seven other schools throughout the country have joined the project and will offer the subject in 2016, with the new subject expected to be available to all secondary schools by 2017, it said. . .

Feed to farmers faster:

SealesWinslow is celebrating as its $10 million upgrade to get feed to farmers faster nears completion. The investment has predominantly focused on its Morrinsville feedmill and distribution centre, officially opened last week, and includes improvements to its counterpart facilities in Ashburton and Wanganui.

The wholly-owned subsidiary of Ballance Agri-Nutrients, SealesWinslow has made the investment to lift its service and manufacturing and distribution capabilities to better meet the needs of its customers.

Speaking at the official opening at Morrinsville, Ballance Chief Executive Mark Wynne said the investment was another way the co-operative was supporting farmers to lift production and productivity. . .

Karaka 2015 Handbook & IPad Catalogue Available Now:

The Karaka 2015 Handbook is online now for New Zealand Bloodstock’s National Yearling Sales Series, as well as the catalogue being loaded on to the free iPad application.

Designed as your ‘go-to’ guide for all things Karaka, the Karaka 2015 Handbook contains detailed information that will make your trip to Karaka in January a breeze.

The Handbook contains all the information you will need to make your selection process a breeze from vendor information and sire previews, to bonus schemes, Karaka Million information, highlight lots and past successes. . .

Figured and LIC Announce Partnership:

Strategic partnership to deliver integrated technology solution to farmers

Figured, (www.figured.com), New Zealand’s innovative farm financial management software provider, and farmer-owned co-operative LIC (NZX:LIC) today announced a new strategic partnership combining LIC’s leading position in the herd improvement industry with Figured’s expertise in cloud-based farm accounting. LIC has also invested in Figured to secure a cornerstone shareholding, with an 18.8% equity stake, and an LIC director will also sit on the board.

“The partnership with LIC is an important endorsement of our vision of improving the business of farming. Our proven innovation in farm accounting and early market traction provides a compelling proposition for LIC,” said Paul Reid, Chief Executive of Figured. “By offering farm accounting in a cloud-based platform we enable the whole farming team to work together to monitor, re-plan and review financial performance and improve farm profit in real-time from any location.” . .

 


Rural round-up

27/11/2014

New agriculture centre of excellence meets key barrier to growth in sector – BNZ CEO:

BNZ chief executive, Anthony Healy says the Centre of Excellence for Agricultural Science and Business programme, launched today at St Paul’s Collegiate School in Hamilton addresses a significant and ongoing issue with the talent pipeline in one of New Zealand’s most important growth industries.

The programme, which is a joint venture between St Paul’s Collegiate and the private sector, including BNZ, will develop and roll out a national secondary school level agribusiness programme as well as serving as a venue for profiling agribusiness as an exciting career choice.

Healy says that while 60 per cent of all the money New Zealand earns through exports comes from agriculture there is currently no structured programme at secondary school level to encourage students to take up careers in agricultural science and business, resulting in a lack of students undertaking training in one of New Zealand’s most significant industries. . .

 

Methane consuming microbes combat climate change:

A Lincoln University scientist is thinking small to help solve a big problem—climate change.

Dr Sally Price, a senior researcher at the Faculty of Agriculture and Life Sciences, is looking to raise funds so she can develop a set of guidelines for farmers to encourage the growth of naturally occurring methane-consuming soil microbes, called methanotrophs.

Methane is expelled by cows and other ruminant livestock through flatulence, and is a potent greenhouse gas which contributes to climate change.

She has been undertaking periodic research over the last 15 years into the role the microbes play, and has found the root systems of trees and shrubs help to break up the soil and allow the methane to travel down to the microbes. . .

Lincoln finds new partner in China:

 Exploring innovative technologies for improving processing, manufacturing and quality assurance in dairy across the whole value chain is the overarching goal of a Memorandum of Understanding (MoU) signed this week between Lincoln University and Yili Industrial Group.

The MoU is the first step in a business relationship considered to be of notable value to both parties, its significance reflected in the document having been witnessed by China’s President Xi Jinping at the Agri-Tech Industry Showcase in Auckland today.

Yili is one of China’s largest processers and manufacturers of dairy products. The company has previously entered into a similar relationship with Wageninigen University in the Netherlands, which has since advanced to include the establishment of a research and development centre on the Dutch University’s campus. . .

NZ Racing Board Appoints John Allen as New CEO:

The NZ Racing Board has appointed experienced Chief Executive Officer John Allen as its new CEO.

Allen is currently CEO at the Ministry of Foreign Affairs and Trade and prior to that held the top job at New Zealand Post. He is also an experienced company director.

NZ Racing Board Chair Glenda Hughes says this is an outstanding appointment for the organisation and indeed the wider racing and sports industries. . .

 

Westland Milk Products Annual Meeting – Director elections and appointments

Westland Milk Products shareholders re-elected two long standing directors (including chair Matt O’Regan), voted in a new director for a casual vacancy and ratified the appointments of two independent directors at their company’s annual meeting today.

Existing directors O’Regan and Frank Dooley were re-elected for a four year term. Hugh Little was elected for one year to fill the casual vacancy left by the resignation of director Mike Havill. . .

Ballance farmers elect von Dadelszen for Ward B:

Ballance Agri-Nutrients farmer shareholders have elected Sarah von Dadelszen as their new Ward B director.

Mrs von Dadelszen brings a wealth of agricultural knowledge to the role with a mix of practical farming experience and specialist education and training.

David Peacocke, Ballance Chairman said he was pleased to have von Dadelszen join the board of directors.

“We had a record number of candidates for the Ward B election and the solid voter turnout shows that the co-op is in good heart, with farmers taking an active role in who represents them on the board.” . .

 


Rural round-up

25/11/2014

China investment to create 50 new jobs:

Fifty new jobs for Southland and a guaranteed supply chain into China for sheep and beef farmers have been secured in the latest in a series of Chinese investments in the New Zealand primary sector.

Lianhua Trading Group has increased its shareholding in Prime Range Meats in Invercargill to 75 percent from 24.9 percent, with the creation of 50 new jobs at the original Southland abattoir and meat processing plant.

Prime Range Meats’ new director and Lianhua adviser, Rick Braddock, said today that Lianhua is getting a guaranteed supply chain for its retail brand in China. . .

Dairy deal latest in China investment:

Chinese dairy giant Yili’s plan to spend a further $400 million on developments at its South Canterbury processing site has capped a flurry of investment announcements coinciding with the visit of China’s president to New Zealand.

As well as processing milk powder at its new Oceania production site near Waimate, Yili has plans for producing UHT or long life milk, packaging infant formula and processing other nutritional products. Yili has also signed an agreement with Lincoln University.

The memorandum of understanding is wide ranging and includes investigating new dairy farming and processing technology and improving the production and processing of dairy products here and in China. . .

Research priorities needs sorting:

 FUNDING FOR science and extension in the sheep and beef industry needs better coordination and Beef + Lamb NZ should step up, says a long-standing New Zealand Grassland Association member and scientist.

 “One of the roadblocks to more co-ordinated science and extension in the [sector] is the large number of funding bodies,” Jeff Morton told delegates at the association’s annual conference in Alexandra.

“There is a need for identification of industry priorities by all parties and co-ordination of the funding through one agency, probably Beef + Lamb.”

Delivering the keynote Levy Oration* at the conference, Morton said BLNZ with its levy funds is “a major player”, but other funders such as Ministry of Business, Innovation and Employment with its Pastoral 21 Programme and MPI with its Primary Growth Partnerships and Sustainable Farming Funds make for “a piecemeal approach.”

Treble Cone Wins New Zealand’s Best Ski Resort Back-to-Back in 2014:

Treble Cone (Wanaka, NZ) has been announced as the winner of New Zealand’s Best Ski Resort for the second consecutive year at the 2nd annual World Ski Awards over the weekend.

‘Hundreds of thousands of travel professionals and skiers across the globe voted for their favourite resorts, chalets, and hotels’ World Ski Awards website.
The World Ski Awards Ceremony was attended by Treble Cone’s Snow Sports School Manager Klaus Mair who received the award on behalf of Treble Cone, and in interviews following accepting the award used the opportunity in front of ski industry peers from around the world to touch on the strengths, offering and accessibility of skiing and snowboarding at Treble Cone and in New Zealand. . .

 

Texel lamb crowned as best in the country

Ashburton farmer Paul Gardner took out the 2014 Mint Lamb Competition at the Canterbury A&P Show on November 12. His Texel lamb was judged as the country’s best lamb from paddock to plate.

Farmers from throughout New Zealand were invited to showcase their quality lamb and compete in the competition that celebrates the quality and variety of lamb available in New Zealand with a focus on increasing consumption of one of the country’s largest export earners.

Lambs were judged on the hook at an Alliance plant for Best Overall Yield. The top four lambs in each class (dual purpose,
dual purpose/cross terminal, composite/crossbred cross terminal and terminal) were selected as semi-finalists and sent to be Tender Tested at Lincoln University. Based on the result of the Tender Test, the top three lambs in each class were selected as finalists. All finalists were Taste Tested at the 2014 Canterbury A&P Show to decide the overall winner of the Mint Lamb Competition. . .

 Beef + Lamb New Zealand Calls for Remits:

Beef + Lamb New Zealand is calling for remits to next year’s annual meeting, being held on Tuesday 10 March in the Southern South Island electorate.

Livestock farmers who want to propose written remits are invited to submit them by 7 January 2015.

Written remits need to be submitted on the official form that can be obtained from Beef + Lamb New Zealand general counsel, Mark Dunlop, by freephoning 0800 233 352. . .

 

Dairy Awards Entries Close in One Week:

The New Zealand Dairy Trainee of the Year competition is again attracting strong interest with more than 200 entered so far in the popular nationwide contest.

All entries in the 2015 New Zealand Dairy Industry Awards – including the dairy trainee, New Zealand Sharemilker/Equity Farmer of the Year and New Zealand Farm Manager of the Year competitions – close at midnight on Sunday, November 30.

Entries are being accepted online at www.dairyindustryawards.co.nz. . .


Fonterra holds 4th place in global dairy rank

16/07/2014

Fonterra has held fourth place in Rabobank’s global dairy rankings:

  The latest annual Rabobank survey of the world’s largest dairy companies highlights the giants of one of the world’s most valuable food sectors.

The last 18 months have seen most of these players battle challenging conditions, with weak economies and supply constraints undermining sales growth in key markets. Againt this backdrop, mergers and acquistions have become an attractive route to growth and profitability. But with billion dollar deals increasingly hard to come by, dairy giants will need to acquire or tie up with more companies to sustain the same rates of growth in future. Those adept at acquiring and embracing new businesses will remain well positioned to survive and thrive. 

“Once again, giants Nestlé, Danone and Lactalis top the list, showing that the world’s largest dairy companies are reasonably entrenched,” commented Rabobank analyst Tim Hunt. “We continue to see some companies outperform their peers in sheer growth terms. In particular, the Chinese giants Yili and Mengniu, which saw their sales expand by 14% and 20% respectively, with Yili entering the top 10 for the first time ever”. 

Saputo continued its march up the list to push to eighth place, in part due to several recent acquisitions. Meiji and Morinaga slipped down the list largely due to the sharp decline in the value of the Yen (in which most of their products are sold).  

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2013 was a challenging year for most of the world’s major dairy companies, with stagnant sales volumes in most OECD dairy markets. Acquisitions have become a more attractive route to grow sales and in 2013, there were 124 dairy transactions, up from 111 in 2012 and the highest since 2007.

Positioning for maximum effectiveness in the expanding Chinese market remains prominent. In 2013, joint ventures were announced between Mengniu and Whitewave and COFCO and Danone while Yili announced a partnership agreement with Dairy Farmers of America.

Mengniu took a stake in China Modern Dairy to secure raw milk supply. A further joint venture is pending between FrieslandCampina and Huishan. Despite the increase in transactions, the dairy sector saw no billion dollar deals in the 12 months to 30 June 2014.

While underlying growth will pick up in coming years, many markets will not return to the rapid growth rates seen before 2008. In this context, mergers, acquisitions and joint ventures will remain a key avenue to growth and profitability.

“The catch is that the number of attractive targets is shrinking and multiples have risen,”  explained Hunt. “With billion dollar value deals harder to come by, dairy giants will need to acquire or tie up with more companies than in the past to sustain the same rates of growth”.

Fonterra made a record pay out to its suppliers last season but that was overshadowed in the media by its poor handling of the whey protein concentrate debacle.

However, it maintained its 4th place in the rankings.


Rural round-up

15/09/2013

Getting low riding out the big blow – Tim Fulton:

Tom Kearney, his wife and family hunkered down in a bedroom and rode it out when the nor’wester whacked their farm near Ashburton.

The Kearneys’ home at Winslow was well sheltered but it felt for a while like the windows might blow in, Kearney said.

“We’ve got a young daughter and another one on the way in about three weeks time so it could have got a bit frightening if it (the baby) decided to turn up a bit early.”

The sheep farmers expect they lost up to 1000 trees in the gale, about half the trees on the property. Some of thee shelter-belt trees were 50-60 years old. . .

Response needed on black grass – Annette Scott:

The black grass damage is done and the focus now must go on establishing a robust response plan, Methven cropping farmer Ian Letham says.

Letham farms along the route the contaminated seed took on its journey to a Methven seed-dressing plant.

“I’m extremely concerned about this issue,” he said of a biosecurity breach that resulted in the spillage of the noxious weed black grass in Mid Canterbury. . .

NZ-linked Chinese dairy firms rank highly – Jamie Gray:

Chinese dairy companies Yili and Mengniu – both of which will soon have factories in New Zealand – now rate among the top 15 of the world’s biggest dairy companies in terms of turnover, rural lending specialist Rabobank said.

Rabobank said Yili is now ranked at 12th, up from 15th last year, while Mengniu went to 15th from 16th.

Yili has plans to manufacture in South Canterbury while Yashili – which is in the throes of being taken over by Mengniu – is building a factory at Pokeno, on the southern outskirts of Auckland.

The top five rankings – with Fonterra at number four – remained unchanged from last year. . .

Genetics programme critical for improving productivity – Allan Barber:

Two complementary programmes have just been announced which promise to deliver improved sheep traits which will compensate for lower production and generate greater profits.

Beef + Lamb New Zealand Genetics is a proposed new partnership between B+LNZ and the Ministry of Business, Innovation and Employment (MBIE) which will combine existing levy payer funding of $2.9 million with $1.5 million of third party investment to be matched by $4.4 million from MBIE.

B+LNZ currently invests its share in the activities of Sheep Improvement Limited, Central Progeny Test and Ovita which has been a joint venture with AgResearch for the last 10 years. This will now be wrapped up into B+LNZ Genetics, while AgResearch will provide major input into the new programme which will broaden the historical breeding excellence focus to determine breeding values and genetic ability to perform on hill country. . .

Vision projects #4 – Credo Quia Absurdum Est:

I see agribusiness biotechnology startups in the news every week.  They usually have the words “Massey University”, or occasionally the school for backward farm kids “Lincoln” attached to them.

There’s no reason why they shouldn’t have Invercargill attached to them.

But we have had decades of wasteful spending on airport runways, pastoral land at Awarua and other ridiculous projects that are not going to create community wealth or jobs.

Invercargill needs to play to its strengths. . .

Pāua Data Logging to Better Manage the Fishery:
Commercial pāua diving is entering the electronic age with logging of every shellfish taken.

When the new season opens on Oct 1, every diver in the Pāua 2 fishery will be wearing a data logger that will record each captured pāua’s location, depth, weight and the water temperature.

The small electronic boxes strapped to wetsuits unload their data on the supporting dive boat, which will provide a reef by reef picture of what is happening in the fishery.

“This will allow us to spread the catch effort, ensure an area is not over exploited and better manage a sustainable fishery,” Tony Craig, Pāua 2 Management Group chairman, said. . .


2nd Chinese company to process milk in NZ

12/01/2013

Chinese company Yashili International plans to invest $210M in a milk processing operation in New Zealand.

Yashili International Holdings, which manufactures and distributes infant milk formula products in China, is the latest Chinese company looking to invest in New Zealand, with plans to build a 1.1 billion yuan ($210 million) processing plant.

The Chaozhou City, Guangdong-based company’s board signed off on a project to set up a manufacturing facility in New Zealand to process up to 52,000 tons of finished and semi-finished products including base milk powder by the second half of next year, according to a statement on the Hong Kong Stock Exchange. Yashili currently sources most of its raw milk from New Zealand.

The company will spend 950 million yuan on acquiring land and building the plant, and a further 150 million yuan as working capital for a New Zealand subsidiary.

The local unit, Yashili New Zealand Dairy Co, was incorporated in July last year according to Companies Office records and has entered into a conditional agreement to buy land where the facility will operate. The acquisition is subject to certain conditions, including approval from the Overseas Investment Office. . .

Last month another Chinese company, Yili, announced plans to buy Oceania Dairy Group’s  land and plans for an infant milk processing plant between Glenavy and Waimate in South Canterbury.

Federated Farmers dairy chairperson Willy Leferink said if the factory went ahead it would probably give the local farmers a good opportunity to get the best milk price for their milk.

There would be competition in the region between several companies including Synlait, Fonterra, possibly even Westland Milk.

Leferink said there would be plenty of supply available for a new plant.

Any new start-up company has the right to milk from Fonterra for three years. After that it would need its own supplier contracts.

There was still a “huge expansion” taking place in the dairy industry in that region, with a couple of big irrigation schemes like Hunter Downs and South Waitaki still to come off which would increase the amount of irrigated area down there and could lead to increased milk supply.

Leferink said he did not see “a hell of a lot of stretch” in the supply base until the country reached the maximum number of cows it could sustain in the long-term, and even then cows could produce more milk than they were currently.

“Also New Zealand has got a fantastic reputation when it comes to food safety . . . I dare say second to none . . . and these people are looking for very safe food because the Chinese don’t trust their own food because of the melamine scandal and a couple of other things,” he said. . .

Farmers wanting to supply Fonterra have to buy shares in the co-operative.

Supplying companies like  Yili or Yashili could be more attractive for some farmers who don’t want, or don’t have the money, to buy shares.


Fonterra 4th in Rabobank’s Global Dairy top 20

19/07/2012

Fonterra has dropped a place to fourth by turnover in Rabobank’s Global Dairy Top 20 list – having been overtaken by French company Lactilis.

  The report highlights the ‘who’s who of dairy’ as well as the continuing spate of merger and acquisition activity and tensions between the past and future of the dairy industry.

The report, authored by Rabobank’s Food & Agribusiness Research and Advisory group, shows Nestle and Danone at the top of the list, which remains dominated by dairy companies in OECD countries:  headquarters for 18 of the 20 companies are in the EU, North America, Japan, or New Zealand. 

However, the biggest strides up the rankings this year were made by Chinese giants Yili and Mengniu, riding the wave of domestic market sales growth.  The report says that in fact most of the growth prospects for dairy companies lie beyond OECD boundaries.

The ability of these companies to respond to changing global market dynamics will determine their prospects for survival and success in coming years.  Rabobank expects to see dairy companies continue to vigorously pursue M&A targets in the next 12 months as they jostle to position themselves for growth and profit in a changing market environment.

Rabobank expects demand in traditional markets to face economic and demographic headwinds because of already high consumption, overweight consumers and concerns over price.

However, demand in emerging markets – China, South East Asia, India and Latin America – is expected to increase.

Sixteen of the top 20 companies already have manufacturing investments in Asia or Latin America.

The top 20 companies are: Nestle, Danone, Lactilis, Fonterra, FrieslandCampina, Dairy Farmers of America, Dean Foods, Arla Foods, Kraft Foods, Meiji, Unililver, Saputo, DMK, Sodiaal, Yili, Mengniu, Bongrain, Muller, Schreiber Foods, Land O’Lakes.


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