Friday 7th August

Wool prices fluctuate in the south island

It was a mixed bag for wool prices at this week’s south island sale.
Coarse types managed to withstand our high dollar, and other offerings to firm in price included Fine crossbred fleece and shears, which lifted by two percent, and good colour coarse carpet type fleece wools which were about one percent stronger, due mostly to interest from Chinese buyers.

Prices for mid micron slipped in Price by two to four percent, and a large volume of short shears remained steady on last week’s prices.

The next auction will be held on 20th August in Christchurch.
And we’ll have more on this week’s Wool Auction sale later in our Market Update.

Science breakthrough may increase lambing patterns

American researchers have discovered an unusual form of a gene that prompts ewes to breed out of season as well as conceive at younger ages and more frequently.

Scientists at the Cornell Sheep Programme conducted a simple genetic test to identify the presence of the unusual form of the gene that other researchers had suspected might be correlated with out-of-season fertility in their test flock.

They then validated the gene’s relationship with breeding out-of-season by observing that trait in the flock.

The finding has been published in the August issue of the Journal of Agricultural Science.

It may be a boon for the sheep industry worldwide, especially when combined with the sheep programme’s STAR system, which is a method to manage ewes so they can lamb five times in three years rather than once a year.

Lincoln University and Meat and Wool lead the way in Research and Development

Lincoln University’s Vice-Chancellor has given Meat and Wool New Zealand a big pat on the back for its role with the university in jointly working on agricultural research and development.

Professor Roger Field says Lincoln has been a key contributor to Meat and Wool’s Central Progeny Test programme.

He says the CPT has provided a very visual and easily understood demonstration of the value of superior genetics and that has made a valuable contribution to the sheep industry.

In addition to the CPT, Lincoln also operates Meat and Wool’s Sheep Improvement Limited, a national sheep database and genetic evaluation system.

Professor Field says Meat and Wool has provided a steady hand on the tiller in its work with Lincoln on R and D and he praises the industry-good organisation for looking at various new sources of funding, such as the government’s Primary Growth Partnership fund.

Thursday 6th August

High NZ Dollar holding back the dairy payout

While dairy farmers across the country took some reassurance from the twenty six percent jump in whole milk powder prices in Fonterra’s latest online dairy auction, economists are warning we’re not out of the woods just yet.

Economist Chris Tennet-Brown, from ASB, says while dairy farmers should take comfort in the price increase from this month’s online auction, there are still problems for the broader farming community due to the high New Zealand Dollar.

Chris Tennet-Brown says there needs to be a few more positive, consecutive, results from the auction system to assume we’re finally past the worse of the current recession. The next Global Dairy Trade Auction takes place on September the 1st.

National sheep flock continues to drop

The national sheep flock has dropped further still.

Latest figures from Meat and Wool economists show a 2.8 percent drop in total sheep numbers to 33.14 million for the year ending last month, and follows a drop of just over eleven percent the previous year.

Meat and Wool’s Economic Service chief Rob Davison blames three consecutive years of drought in East Coast regions and dairy expansion for the drop.

Mr Davison says the flow-on effect was fewer lambs for export and fewer lambs to keep as replacements.

And on the flipside, Rob Davison says early indications suggest this spring’s total lamb crop will be ahead of last year’s by about 2 percent.

Changing energy generation methods the key reducing emissions

Deer Industry New Zealand is calling for agricultural green house gas emissions to be exempt from the emissions trading scheme.

Chairman John Scurr says no other country in the world is including agricultural emissions in their own schemes.

Mr Scurr says reducing our dependence on fossil fuels by changing the way we generate and use energy is a more sensible way to reduce carbon emissions.

Wednesday 5th August

MAF and partners invest pasture growth research

A new partnership between the Ministry of Agriculture and Forestry (MAF) and the dairy and fertiliser industries is making a significant research investment to support farmers in reducing the environmental impact of their farming operations.

MAF will provide fifty percent of the required funding, with the other fifty percent coming from Fonterra, DairyNZ, Ballance Agri-Nutrients, Ravensdown Fertiliser Cooperative, New Zealand Fertiliser Manufacturers’ Research Association and the Pastoral Greenhouse Gas Research Consortium.

The partners will invest up to ten million dollars in research which is aimed at measuring the effectiveness of nitrification inhibitors in reducing nitrous oxide emissions and nitrate leaching, which enhancing pasture growth.

MAF Director, Natural Resources Policy, Mike Jebson says the aim of the research programme is to improve the understanding of the effectiveness and performance variations which may occur between farms and across regions, due to physical and climatic conditions.

And Mr Jebson says by committing to this programme, the dairy industry, MAF and the fertiliser industry are taking significant steps toward providing practical tools which support farmers in making positive environmental changes on-farm.

Meat and Wool emphasize Research and Development in final proposal

Research and Development is a critical tool to the growth of the primary sector, that’s the message according to Meat and Wool New Zealand.

Chief Executive Dr Scott Champion says the organisation has been able to keep a solid R & D investment in its final levy proposal to farmers, which will be used as a critical tool for improving on-farm performance.

Dr Champion says the approach outlined in the levy proposal received by farmers mirrors the strong message that Meat and Wool New Zealand heard from their consultation round, and says famers want to see the continued investment in research which is relevant and adds value to their businesses.

And projects will cover education, product development, commercialisation, market development and technology transfer.

Feds look for America to introduce Dairy Product Support Programme

Federated Farmers is calling on the government to put pressure on the Obama administration to remove dairy export subsidies and replace them with another programme for American dairy farmers.

The Feds’ dairy chairman, Lachlan McKenzie, wants to see the export subsidies in America replaced by the purely domestic ‘Dairy Product Price Support Programme’.

Mr McKenzie says the domestic support programme would mean at the very least for New Zealand dairy exporters that American product won’t enter export markets.  

And Lachlan McKenzie says the New Zealand government should use its full diplomatic skills to put pressure on President Obama’s administration for a swift end to the American Dairy Export Incentive Programme.

Thursday 30th July

Official cash rate left untouched

The Official Cash Rate has been left unchanged at 2.5 percent in the latest announcement from the Reserve Bank.

Reserve Bank Governor Alan Bollard says despite signs of a leveling off in economic activity, the economy remains weak, and says he expects a “patchy” recovery toward the end of the year.

Alan Bollard says due to our merchandise exports being heavily weighted to soft commodities, the country hasn’t benefited from any significant extent from the rebound which has occurred in global hard commodity prices.

Mr Bollard says our recovery also hasn’t been helped by a high dollar, and says it’s bringing additional economic risks to the country.

And Governo Bollard says the OCR could still move modestly lower in the coming quarters, and says the rate will be kept at, or below, the current levels through to the later part of 2010.

Fonterra’s forecast payout for next year remains at $4.55

Despite the continued volatility in world markets, Fonterra’s forecast payout for the 2009/2010 season remains at $4.55 per kilo of milk solids.

Fonterra Chairman Henry van der Heyden says despite the high New Zealand dollar putting pressure on the milk price, a strengthening demand and firming prices for some products in the international dairy market has helped to buffer the price.

Mr van der Heyden says although the fluctuating currency and continued uncertainty in international dairy markets is making forecasting extremely difficult, he says it’s important for farmers to have the best possible information about payouts particularly when they’re tightening their belts and farming with lower cash flows.

Henry van der Heyden says the previous 2008/09 season forecast payout remained on track for $5.20, with the final figure being confirmed in September.

New Zealand vegetable growers careless with chemical usage

The results of a food safety surveillance programme have shown some of the country’s vegetable growers just aren’t taking enough care with their chemicals.

The Food Safety Authority’s annual report on chemical use in horticulture found insecticide residues up to five times above the legal limit on some produce.

While the authority says the residue levels don’t pose a health risk, with 6 of the programmes 48 samples displaying excessive residue rates, the findings are concern that needs to be addressed.
This year’s programme looked at samples of spinach, celery, garlic and ginger.

A spinach sample proved to be the worst offender, with a residue rate recorded at 2.6 milligrams a kilo for the insecticide ethamidophos. The maximum residue limit for Ethamidophos is 0.5 mg/kg.

In light of the results, the Food Safety Authority will holding discussions with growers to advise on better chemical management programmes.

Wednesday 29th July

MAF annual report reveals significant challenges ahead

While the global recession has hit farmers throughout the country hard, the Ministry of Agriculture and Forestry says the primary sector has stood up well to the tough economic times.

The release of MAF’s annual report shows that while there are significant issues facing all primary sectors in the short term, there are positive signs for growth over three-to-five years.

MAF Director-General Murray Sherwin says while times might be hard, by cutting back costs to a sustainable level, most farmers will make it through these testing times.

Mr Sherwin says while the forestry sector has been hindered significantly by the fluctuating exchange rate, the biggest issue facing the sector is the international housing slump.

Dairy farmers coming down from the highs of 2007/08 payout and are struggling - with the average farm set to lose $58,000 this season - and Mr Sherwin says those at immediate risk need to scale back costs or risk losing everything.

The global downturn is still hitting meat and wool farmers in the pocket, but director - General Sherwin says the sector was definitely seeing a level of positive growth from previous years.

Mr Sherwin says horticulture had been a mixed bag, with kiwifruit and pipfruit better placed through innovation and a lower exchange rate assisting export growth, but the wine industry was also proving a concern.

Mr Sherwin says what farmers need to do is focus of cutting back costs, while using innovation to retain and build new, premium markets.

Value of New Zealand exports and imports fall again

The values of both our exports and imports have fallen in the last quarter to the end of June, according to Statistics New Zealand.

The fall in exports was about the same as the previous quarter but the primary sector was a major contributor to that fall, with seven of the top 10 commodity groupings recording decreases.

Casein and caseinates recorded the largest decrease, down 21.9 percent - or $64 million. Milk powder, butter and cheese also fell, despite significant rises in the quantities being exported for both these commodity groups.

There had been expectations of a greater fall in imports than the three point four percent reported.

Farmers remain pessimistic about the future of the rural economy

Federated Farmers inaugural farm confidence has uncovered a level of cynicism - and indicates the country may be heading for an elongated recession.

Fed Farmers president Don Nicolson says while export prospects and the outlook for agriculture over the medium term remain excellent, returns for the past season and the forthcoming season will be down. 

Mr Nicolson says forty five percent of farmers remain pessimistic about their own prospects for the next twelve months and believe the economy will deteriorate further.

Tuesday 28th July

Sealord sells Marlborough marine farms

Sealord is set to make $23.4 million through the sale of its Marlborough marine farms to industry competitors Sanford.

The sale includes 240ha of water space and equipment for growing mussels and spat.

But, the price doesn’t include the crop which will be harvested in the next 12 months.

Sanford says the acquisition will add to its existing Marlborough Sounds holdings, giving the company the space to grow 5000 tonnes of greenshell mussels per year.

Feds say 2020 emissions target is unrealistic

Federated Farmers say the 2020 emissions reduction target is just a political gesture.

Federated Farmers president Don Nicolson says real emissions targets will be set by international negotiation, not aspirational targets.

Mr Nicolson says to be green, the country needs to be in the black, and says that aiming too high to appease certain groups in the country will obliterate the economy.

Don Nicolson says getting back to our emissions levels in 1990 would be a good goal.

$10,000 fine issued to southland farmer

A Southland farmer convicted of animal welfare offences has been fined $10,000 and banned from owning or managing stock for 10 years.

William Lawton pleaded guilty to charges of wilful ill-treatment of cattle in the Invercargill District Court.

The charges were laid by the Ministry of Agriculture after inspecting two properties owned by Mr Lawton last year, where they found cattle in poor condition and lacking feed. Eight calves had to be put down as a result.

Monday 27th July

Fonterra won’t be listing on the stock exchange

Fonterra chairman Henry van der Heyden says no work is under way to list the cooperative on the stock exchange.

An announcement on Friday that Mr van der Heyden is to step down from the board of stock exchange operator NZX has sparked fresh speculation that Fonterra is considering a market listing.

It unsuccessfully consulted with farmers two years ago over such a move.

Mr van der Heyden says people are reading too much into his NZX decision and it was only about clearing up a perceived conflict of interest.
He says while no work is under way to list on the exchange, all other options to restructure Fonterra’s capital structure remain on the table.

Federated Farmers dairy section chairman Lachlan McKenzie says something has to be done about the structure – but that should not include listing on the stock exchange.

Drought hits Hawkes Bay farmers for third year in a row

Sheep and cattle sales in Hawke’s Bay have been severely hit by three successive years of drought.

Cattle sales in January at Stortford Lodge yards in Hastings were more than 50% lower than the previous, and sheep sales were down 10,000.

This has corresponded with a rising number of farmers in serious financial trouble in the region.

Nearly 30 farmers now qualify for Government assistance to cover living costs at up to $1300 per month. The number of farmers receiving assistance is three times more than last year.

Nufarm in talks with Chinese company regarding take over

Australia’s biggest producer of agricultural chemicals, Nufarm Ltd, says it’s been approached by a Chinese chemicals company about a possible takeover.

Shares in Nufarm jumped nine percent on the Australian stock exchange on news of the approach by China’s Sinochem Corporation.

Nufarm’s range of chemicals includes the Roundup brand of herbicides.

Friday 24th July

Fonterra and PGG Wrightson chairs step down

PGG Wrightson chairman Craig Norgate has stepped down from his position as the company faces the effects of the economic slowdown.

Mr Norgate, who owns nearly 27.5% of PGG Wrightson, will remain on the board as a director. However, he will be replaced in his former role by existing board member Keith Smith.

In a statement, Mr Norgate says that the listed status of the company means it would be more appropriate for the company to work with an independent chair.

Craig Norgate has been a key player in the company’s expansion. However, because of the downturn, PPG Wrightsons have become tightly restrained and focused on reducing costs.

Craig Norgate’s decision comes within 24 hours of Fonterra Chairman Henry van der Heyden’s resignation from the board of the stock exchange, NZX.

Federated Farmers President Don Nicholson says Mr van der Heyden’s decision will certainly get a thumbs-up from many farmers.

Mr Nicholson says there was clearly a degree of discomfiture that arose from sitting on the board of NZX when it is embarking upon a possible whole milk powder futures platform. And he says Fonterra’s capital structure review should also be born in mind.

And he says NZX’s loss is Fonterra supplier-shareholders’ gain, as Mr van der Heyden will have more time to devote to the Cooperative.  Mr Nicholson says undoubtedly NZX’s board has lost the services of a very able and experienced businessperson.

Green party welcomes new pork industry measures

The Green Party has welcomed the pork industry’s decision to label pork more clearly for the consumer.

Green MP Sue Kedgley says more consumers want to know how food has been produced – whether it’s humane or not – and it is about time the pork industry responded to this concern.

Ms Kedgley says consumers need a simple labeling system that allows the consumer to identify whether pork is free range, or intensively farmed using sow crates.

Ms Kedgley says it is important this labeling is required on imported as well as domestically produced pork, while also calling for the introduction of country of origin labeling on all pork to help consumers identify foreign and locally produced products.

Young grower of the year selected

A Hawkes Bay orchardist has been chosen as Young Grower of the Year at Horticulture New Zealand’s annual conference in Christchurch.

He’s Kevin McInnes of Hastings, who found the selection process a challenge but he’s confident about the reasons he won.

Thursday 23rd July

Shareholders come out in support of Zespri

Kiwifruit exporter Zespri received a clear vote of confidence from its growers during the week when 500 shareholders’s voted unanimously to support the company’s industry structure at its annual meeting on Wednesday.

The move comes after New Zealand’s biggest fresh produce company, Turners and Growers, began legal action to end Zespri’s near monopoly of exports earlier this week.

Turners and Growers hopes the move will open up the opportunity for competition in the export marketplace, which apart from Australia, is dominated by Zespri.

Zespri says they’ll fight the action, but highlighted the battle will come at a cost to growers.

Greens call on Fonterra to clean up dirty dairy farmers

Dirty dairying was bought back to the fore on Wednesday, with the Green Party calling for Fonterra to financially penalise farmers convicted of effluent mismanagement.

The move comes after the latest series of court cases brought against the Crafar family, who control some of North Island’s biggest dairy farms.

Between October 2007 and April 2008, brothers Allan and Frank Crafar were convicted of 34 charges relating to improper effluent disposal.

Green Party leader Russell Norman says dirty dairying could potentially damage New Zealand’s clean and green image.

Having called for the courts to dispense larger fines after the last decision, Mr Norman is now calling for Fonterra to step up and take action against recidivist polluters.
Mr Norman says the latest judgment provided some grim reading.

New measures introduced by pork industry to allay consumer concern

A new labeling system for pork is on the cards as the pig industry looks to win back consumer favour.

The new system will detail how the product is produced, and comes after consumer feedback highlighted the need for clarity throughout the supply chain as well as concern for animal welfare.

The industry also voted to allow audits to be carried out on commercial pig farms.

The pork industry board chief executive Sam McIvor says the move will allow the industry to provide the market with assurances they’re operating to the best practice guidelines.

Wednesday 22 July

Farmers to decide fate of Meat & Wool NZ

The future of the meat and wool industries will be handed over to farmers in August, but Meat and Wool New Zealand Chairman Mike Pederson says there is only one real choice going forward.

Under the Commodity Levies Act, levy paying farmers will get to decide whether or not they wish to retain industry body Meat & Wool New Zealand.

But after extensive consulting with farmers throughout the country, Mr Pederson says Meat & Wool New Zealand have listened to farmer’s concerns and have put together a proposal with their best interests at heart.

While he admits times have been tough for beef and sheep farmers over the past few years, he says research and development is the key to a brighter future, and Meat & Wool New Zealand is the only way this can be achieved.

Meat and Wool NZ’s proposal to farmers focuses on finding ways to bring better returns back to the farm.

Levy paying farmers will receive Meat & Wool NZ’s proposal as well as voting papers in early August, with the ballot closing at the end of that month.

Kiwifruit conflict heats up

A stoush between produce company Turners & Growers and kiwifruit marketer Zespri moved another step forward on Tuesday with Turners & Growers serving the legal action prior to Zespri’s annual meeting in Tauranga.

The action from Turners and Growers alleges unlawful discrimination against growers who don’t follow Zespri’s guideline.

The company also claims Zespri have made an illegal attempt to control the Australian kiwifruit market under New Zealand and Australia’s Closer Economic Relations agreement.

Zespri say the legal action is without merit and will be rigorously defended.
The process will begin in the High Court in Auckland on the 5th of August.

New strategy aims to double value of horticulture sector

A strategy to double the horticulture sector’s economic value to $10 billion over the next decade was announced by Horticulture New Zealand on Wednesday.

Released at the Horticulture New Zealand annual conference in Christchurch by HortNZ president Andrew Fenton, the strategy will be the most significant work done for fruit and vegetable growers in the past decade.

Mr Fenton says while the horticulture industry earned $2.2b on the domestic market last year, with a further $2b coming from exports, the industry must continue to grow if it’s to survive.

He says the strategy is based on a need to develop New Zealand’s international competitiveness, while also developing niche export products, and developing top quality industry leaders.

Mr Fenton says industry growth will need to be export-led and supported by investment in value-added products and processes controlled from New Zealand.

Tuesday 21 July

Survey shows dairy farmers upbeat despite sustained losses

The Ministry of Agriculture has declared 2008-09 a forgettable year for New Zealand dairying, with the average dairy farm finishing the year with a cash loss of $58,500.

While MAF’s latest monitoring survey shows dairy farmers are concerned by the situation, it found famers are adapting to the current economic climate by cutting back on their on-farm costs and reverting to a traditional pasture-based farming methods.

But, despite these changes, the survey suggests the average farm will still make a cash loss of $15,500 this season.

MAF says the survey shows farmers are still upbeat about the future, and believe, while they may be experiencing a tough couple of seasons, dairying will see a turnaround from 2010.

GE Free President declares NZ at risk

Brand ‘New Zealand’ could be in the firing line if New Zealand allows the introduction of genetically engineered fodder crops.

GE Free New Zealand President Claire Bleakley says it would be ludicrous to let GE crops into our agricultural system.

But, Ms Bleakley says without any legislation to prohibit GE fodder crops, the Government is leaving New Zealand at risk from potential export losses and damage to our agricultural industries.

Claire Bleakley says after a GE brassica trial was recently shut down, and GE fodder kale, having recently developed an unidentified stem rot disease, the time to legislate is now – before it is all too late.

Simply Squeezed found in breach of Trading Act

The Commerce Commission will prosecute Hawke’s Bay juice maker Simply Squeezed for breaches to the Fair Trading Act.

The allegations are related to a TV advertising campaign that ran from March to May 2008 in which the company implied its product was 100 per cent sourced from Hawke’s Bay oranges.

The Commerce Commission’s prosecution case surrounds the Simply Squeezed use of water extracted soluble orange solids, or “pulp wash”, during production, and the use of imported Pakistani citrus fruit.

Monday 21 July

First steps taken in Fonterra’s newest bid for capital restructuring

Fonterra’s board intends to take small steps towards a capital restructure, their second attempt to win over their farmer shareholders.

Chairman Henry van der Heyden refused to detail the proposal until farmer-owners had all the information, but confirmed the restructure would be in steps stretched over a three or four year period.

The board's first restructure proposal involving splitting the $15 billion co-operative into two companies - a supplier-owned co-op, and a listed entity, failed to win the required seventy five percent needed.

It’s expected shareholder’s will be asked to vote on the first of four steps in November.

Silver Fern Farms to keep co-op structure despite capital restructure

Silver Fern Farms chair Eion Garden says the company’s co-operative structure won’t change with the company’s proposed capital restructure.

New Zealand’s largest meat processing company wants to raise $128 million from shareholder’s to fortify the balance sheet and support commercial initiatives.

Eion Garden says Silver Fern Farms has been well served by the current structure for the last 60 years, but now the directors understand the business needs owners that are prepared to invest.

And Garden says a series of focus groups will be held nationwide from next week to inform famers about the proposal.

Concerns for Marlborough vine workers

Wine Marlborough say grape growers must ensure pruning contractors are doing right by their workers.

Board chairman Blair Gibbs says there have been instances of shoddy practices, such as contractors that fail to pay the employee’s tax, as well as pruners being paid less than half the legal minimum wage.

Mr Gibbs says the recession has increased competition for jobs, pushing pay rates down.

Friday 17 July

Wool Partners International debut new brand to improve NZ returns

Wool Partners International has announced a new fibre integrity brand as part of its campaign to improve returns to New Zealand coarse wool growers.

The brand – Laneve – has been developed to provide carpet customers in global markets with assurance on the origins of the wool used in their manufacture.

The Laneve brand will be used by manufacturers working with Wool Partners subsidiary, Wools of New Zealand. It will ensure compliance with specific standards on farming practice, animal welfare, sustainability, traceability and the environment.

Laneve will make its first appearance on carpet ranges launched by American manufacturers in the coming northern winter.

And Wool Partners have announced two major American carpet manufacturers – Glen Eden and Bellbridge – have committed to wool purchases for the manufacture of carpets using the Lavene brand.

Farming leader criticizes wool auction for rock bottom prices

The wool auction system has come under fire from a farming leader, who says one of the main obstacles to lifting wool returns is the way it is sold.

The Vice-Chair of Federated Farmers meat and fibre section, Canterbury farmer Jeanette Maxwell, says not all those interested in bidding turn up on the same day – so they don’t outbid each other.

Ms Maxwell  says deals that take place beforehand also contribute to lowering the price.

The Feds say poor wool returns are the weak link in its campaign to boost lamb prices to $150 per head in five years.

The Wool Exporters Council shares farmers’ dissatisfaction with the rock bottom wool prices but President John Henderson blames the international recession rather than the auction system.

At the start of the new selling season, the indicator price for strong wool has fallen one dollar a kilo below where it was a year ago.

Fine and mid-micron prices are down, too, but not so steeply.

Hawkes Bay agrichemical collection announced

Farmers in Hawke’s Bay should take note of this – those agrichemicals you’ve been wondering what to do with don’t have to be thrown down the gully.

Instead, they will have a safe new home to go to next month.

The Hawkes Bay Regional Council has announced its next unwanted agrichemical collection will be held from the 17th to the 19th of August.

Thursday 16 July

Researchers suggest emissions tax is the wrong approach

A new report says New Zealand’s emissions trading system is the wrong approach.
In a paper released by the Centre for Independent Studies, researchers suggest an emissions tax wouldn’t be the worst option.

The organisation says an emissions tax  linked with other tax cuts would be a big improvement over the proposed emissions trading system.

They say an emissions tax would also lead to less lobbying and rent-seeking, lower administrative and compliance costs, provide price stability, and avoids wasteful handouts to business.

NZ Meat sector needs new approach to compete with low production prices overseas

New Zealand meat must plan for the future with the growing number of other countries being able to produce meat at a lower price.

David Hughes, an Emeritus Professor of Food Marketing at the Imperial College of London, says it may require money from farmers, but there needs to be a move towards higher value products.

Mr Hughes says there needs to be a move away from the traditional commodity approach.

De Laval and Agrecovery join forces with positive recycling result

Rural recycling has taken a step into the dairy industry with De Laval joining the Agrecovery programme.

The move means De Laval products – such as teats and sprays, alkaline and acid detergents – can now be recycled at Agrecovery’s collection sites throughout the country.

Wednesday 15 July

Inland Revenue provides tax relief to Chatham Island farmers

Federated Farmers has secured much needed tax relief and income assistance for some of the remotest farmers on the planet – the fifty farmers who reside on the Chatham Islands.

Federated Farmers Commerce and Economics spokesman Philip York, says the Chatham Islands are well known for their fisheries, rugged beauty and conservation importance, says agriculture is a mainstay of the Islands economy and it’s vital to each of its 600 plus residents.

The package agreed between Federated Farmers and Inland Revenue will allow for late deposits into the Income Equalisation Scheme up to 30 April 2010 for the 2009 income year, and will also allow for an early refund from income equalisation deposits for farmers affected by the lack of shipping services and drought.

Phil York says Inland Revenue needs to be congratulated for showing genuine compassion and understanding for the needs of farmers on the Chatham Islands.

Meat and Wool NZ criticise advertisement suggesting levies should be used solely for research and development

Meat and wool New Zealand has hit back at a newspaper advertisement asking farmers to wind up the industry-good organisation in favour of a plan for Research and Development only.

The Argument revolves around Meat & Wool’s levies on farmers, and what should be done with the money.

Meat and Wool’s chairman, Mike Petersen, says the organisation has consulted widely with farmers at 60 meetings around the country and has received 900 written submissions.

Mr Petersen says that their research shows it’s clear many farmers want their levies to fund a range of other work alongside funding the research sector.

He says that includes the need for levies to fund Meat & Wool’s market access activities, given that export markets take 90 percent of all our sheepmeat and beef products.

And Mike Petersen says the advert carries no names and the levy rates it mentions would be nowhere near enough for  any research funding.  

Ambitious new study to get under way on ten Waikato farms

Agricultural organisations join forces for new

Links between farming practices and nutrient losses to the environment will come under the microscope in an ambitious joint study by some of our most prominent agricultural organisations.

Environment Waikato, Fonterra, DairyNZ and fertiliser cooperative Ballance Agri-nutrients have joined forces to use ten dairy and four sheep, beef and deer farms in the Waikato for the $70,000 study.

It’ll look at how nutrients from farms are lost from the root zone of pasture – as well as practices used by efficient farmers to minimise their losses.

Tuesday 14 July

Competition in NZ organic dairy market could spell higher payout for farmers

Organic dairy farmers could be set for a payout as high as $7, more than $2.45 higher than Fonterra’s forecast for conventional milk.

The NZ Organic Dairy Farmers Co-Operative says it’s payout could be more than $1.40 more than Fonterra’s organic forecast, dependant on the US exchange rate.

Founder Russell Simmons says the co-op will begin milk collection from 25 farms across the North Island next month once it has completed a new factory at Okato in Taranaki.

Mr Simmons says the co-op was founded to provide competition with Fonterra’s organic milk supply as he felt there was a huge market for organic dairy.

Organic dairy farmers will supply an estimated 22 million litres of organic milk to the co-op for export this season, with an aim to increase suppliers.

Fonterra disputes criticism that monthly dairy auction is driving prices down

Criticism from European dairy product companies over Fonterra’s global wholemilk powder auction system has brought a sharp response from the New Zealand dairy juggernaut.

Executives at Danish company Arla Foods and France’s Lactalis (pron: lacTALis) claim the monthly auction price has become a buyer reference for future pricing, ensuring world whole milk powder prices have fallen faster and harder than necessary.

The critics say this has been a factor in the reintroduction of American and European farmer subsidies.

But Fonterra says Global Dairy Trade has introduced transparency to dairy trade. And Fonterra denies its Global Dairy Trade is having any adverse effects on prices at all.

Nigel Kuzemko says rather than its auction system affecting prices, the wide-spread effects of the recession and international price volatility are the more likely culprits.

And Mr Kuzemko says the re-introduction of subsidies is more a result of European politics and economics than any impact Fonterra may be having with its auction system.

Farmers advised not to cut back on fertiliser by Ravensdown

Fertiliser co-operative Ravensdown says encouraging farmers to apply nitrogen to boost spring pasture growth after a cold winter is the reason behind their fourth price cut this year.

The co-op cut the price of urea by $30 a tonne to $620, taking it back to the same level it was in December 2007.

Ravensdown chairman Bill McLeod says cutting back on fertilizer due to financial pressure is the worst thing farmers can do.

Monday 13 July

South Canterbury farmer takes out 2009 title as the Younger Farmer of the Year

The 2009 Young Farmer of the Year title has been won by South Canterbury farmer Tim O’Sullivan.

The competition took place in Palmerston North over the weekend, with Mr O’Sullivan beating seven other young farmers for the title.

Mr O’Sullivan is 29 and hails from Pleasant Point in South Canterbury where he runs a 120-hectare dairy support block.

NZ cheese producers may soon be crafting cheese using unpasturised milk

Food Safety Minister Kate Wilkinson New Zealand cheese producers may soon be able to craft cheese like their European peers in using unpasturised milk.

Ms Wilkinson says the Food Safety Authority has received 13 submissions on the issue, with none opposing the idea of locally-made unpasterised milk cheeses being sold in New Zealand.

Ms Wilkinson says she aims to issue draft standards in September.

NZ shearers share success at Poms this weekend

The New Zealand shearing team has bounced back to take out the Poms this weekend.

After losses in the first two tests against Scotland, James Fagan and John Kirkpatrick pulled the wool over new English selection Adam Berry and Mark Fox on Saturday.

The pair followed their doubles success by taking out the open event too, with Fagan, from Te Kuiti, winning the Lakelands Shears open, and Napier-based Kirkpatrick finishing second.

Friday 10 June

Herd in Northland being tested for Bovine Tuberculosis

A case of bovine Tuberculosis in Northland has the Animal Health Board confused.
Northland is supposed to be free of the disease, and this is the region’s first case of bovine Tb in eight years.

The Animal Health Board says the cow, part of a large dairy herd in the Kaitaia district, was born on the farm and there is no evidence of bovine Tb infection in the wildlife surrounding the farm – such as possums.

The cow in question has now been destroyed, with the rest of the herd being tested for the infection.

Government dismisses claims of plans to privatize high country

The Government is dismissing claims by conservation and recreation groups that it plans to "privatise" the South Island high country.

Forest & Bird, the Council of Outdoor Recreation Associations, Federated Mountain Clubs, Public Access New Zealand and the Federation of Freshwater Anglers have jointly claimed that National planned to sell Crown-owned high-country land into private ownership.

The groups said recent comments by Minister of Agriculture David Carter on the reopening of the pastoral high-country lease review programme amounted to plans to sell leases into freehold ownership.

They said Associate Conservation Minister Kate Wilkinson had stated that 30 per cent of New Zealand's land already in the conservation estate was enough and that the Government could not afford to buy properties to create new high-country parks.

Mr Carter told Federated Farmers in Auckland last week that a paper was about to go to the Cabinet that would outline the parameters under which the Government would restart the tenure review process.

The Minister is in Europe and could not be contacted for comment, but a spokeswoman said his comments had been taken out of context by the conservation groups and there was no plan to "privatise" the high country.

Kate Wilkinson was also unavailable, but her spokesman said the Government was "simply looking at different ways" of completing a process started by Labour and that the groups are just firing a shot early on."

Regulations are under review for the manufacture of non-pasteurised milk products

A review of food safety regulations could lead to the manufacture of non-pasteurised milk products.

Products made from non-pasteurised milk – such French cheese Roquefort – were neither permitted for import, nor production in New Zealand.

However, the New Zealand Food Safety Authority has received 12 submissions so far towards a review of the regulations, a move which could open up the opportunity for NZ cheesemakers to craft our version of Roquefort.

Roquefort cheese cannot currently be imported into New Zealand. However, Food Safety Minister Kate Wilkinson says a proposal to amend food standards to allow the cheese imports to happen directly would also allow for the manufacture of raw milk cheeses.

Thursday 9 June

Massey University lecturer supports Reserve Bank interest rates

Federated Farmers has been strongly critical of the banks for keeping their floating interest rates at too high a level.

But a Massey University senior lecturer in Banking Studies, Claire Matthews, says there is little the Reserve Bank can or should do to induce banks to lower their rates further.

She says banks are doing the best they can to offer the lowest floating mortgage rates, and that is in fact reflected in the Reserve Bank’s latest report.

Mrs Matthews points out the Official Cash Rate  has reduced 575 basis points, the floating rate has come down 430 basis points, and the difference between is needed by banks to cover the increased cost of raising funds.

Despite the feeling that there is still room for banks to lower rates further, Mrs Matthews believes that is not the case because if they could, they would.

She says it’s in their interests to be competitive and, having seen their recent profit announcements, they are not doing as well as they have done in the recent past.

In a select committee report last month, MPs criticised banks for not reducing mortgage rates and protecting their profits, but last week they voted down holding another inquiry into the banking system.

Farmers struggle to afford fertilizer for autumn and spring applications

A top executive at Ballance Agri-Nutrients says farmers are clearly struggling to afford the fertiliser tonnages they need to optimise production.

But Warwick Catto, Head of Agri-Science at Ballance, says the situation is not as bad as when subsidies were removed in 1984.

The farmer-owned fertiliser cooperative says fertiliser usage is down appreciably nationwide compared with last year, although few farmers are choosing to forego fertiliser applications entirely.

Mr Catto says the key difference between the1980s and today is that farmers can still afford to budget for fertiliser expenditure, even if it is down. This is a far cry from the situation in the mid-1980s when the money was simply not there and farmers had to reduce personal drawings from the farm significantly.

He says most farmers are financially better off today because of the very good historic fertiliser use that New Zealand has applied for the past 10 years and it’s fortunate that most farms are not starting from a low fertility base.

Warwick Catto says Ballance saw a significant drop in fertiliser sales for application this autumn, and this may be repeated this spring. He says farmers struggling with funding a spring application might well focus on sulphur and potassium, as these nutrients will impact on production first, relative to phosphate.’

Rose growers suffering winter blues

Rose growers throughout the country are facing a grim future, with rising costs, low production and low returns combining to make business tough.

With the country gripped by one of the coldest winters in recent years, glasshouse growers are finding they need to spend more money on fuel – an input cost that has risen steadily over the past year – just to keep their glass houses warm enough for winter production.

Tuesday 7 July

Public consultation on 2020 emissions target will begin shortly

The Government will begin public consultation on New Zealand’s 2020 emissions target in Wellington on Tuesday tonight.

Minister for the Environment Nick Smith says climate change is a very difficult issue as it involves every country, the effects are multi-generational and reducing emissions has major economic implications.

Dr Smith says the Government needs to be honest and upfront with New Zealanders about the scale of change required and the impacts on jobs, industries and the cost of living.

Over the next two weeks the Government will take part nine public meetings, three business meetings, a national hui and an engagement with academics.

Kaimai Cheese Company disappointed over Fonterra’s sour court appeal

Kaimai Cheese Company is disappointed at Fonterra’s decision to appeal the Commerce Commission’s ruling over their supply of raw milk.

Kaimai Cheese Company general manager Sheryn Cook says the Commerce Commission ruled the company to be an independent processor, and all they wanted to do was be treated as one.

Cook says Fonterra has not supplied the Waharoa-based company with the raw milk it requested under the Dairy Restructuring Act, forcing it to source milk from Open Country Cheese at a higher cost.

The commission found Fonterra breached regulations by not supplying milk to Kaimai Cheese and Grate Kiwi Cheese since last October and has ordered the co-op to pay compensation.

Farmers market looking to launch new guarantee of local origins of produce

Farmer’s markets throughout the country are looking at launching a new form of certification that will place a guarantee on the local origins of produce sold by stallholders.

Chris Fortune, chairman of Farmer’s Markets NZ, says the move is designed to provide farmer’s market customers with piece of mind when purchasing.

Mr Fortune says the whole idea behind the farmer’s market concept was supporting local growers and producers in the community – and that’s why they’re important.
And Chris Fortune says the move was to ensure the ‘Farmer’s Market’ brand was true to its name and prevent any future issues.

Monday 6 July

Fonterra to challenge Commerce Commission’s ruling

Dairy co-op Fonterra are set to appeal the Commerce Commission’s latest ruling in a dispute between Fonterra, Kaimai Cheese Company and The Grate Kiwi Cheese Company.

The Commerce Commission determined that an independent processor doesn’t need to process raw milk, and Fonterra were required to supply milk to both companies at an address which they nominate.

Fonterra says the decision is unfair and that it will challenge both the ruling, and the Commission’s order that the co-op pays compensation to Kaimai and Grate Kiwi.

A spokesperson from Fonterra says the raw milk regulations expose Fonterra farmers to unnecessary cost while new regulatory framework for determining the regulated milk price is put in place.

Export subsidies high on David Carter’s European itinerary 

Agriculture Minister David Carter has just left the country for Europe, where he will attend meetings with the European Commissioners for Agriculture and for Trade.
The minister will also meet his UK counterpart, Hilary Benn, in London this week.

Mr Carter says the trip will provide a significant opportunity to promote agricultural trade in the European market – New Zealand’s second largest trading partner, and says export subsidies will be high on his agenda.

South Island farmer co-operative CRT enjoys best year of business

South Island farmer co-operative CRT has enjoyed a 39 per cent leap in revenue, pulling in $802 million in its best year of business to date.

The rural retail and services supplier announced a surplus of $12m for the year to March 2009, after providing $22m of rebates to rural shareholders.

It will distribute a bonus rebate to its 24,000 shareholders of $9m with about $3.6m of that in cash and $5.4m as additional CRT shares.

Chairman Don McFarlane said its three main areas rural retail, fuel, and seeds and grains enjoyed growth in sales and market share in a favourable market.

Friday 3 July

Farmers offered new share-holding options in effort to raise capital and keep control of business

The chairman of Silver Fern Farms says shareholders must invest in the company if they’re to keep control of the business.

This was the comment from Eoin Garden at the first of a series of meetings regarding the company’s capital restructuring proposal.
Farmers were offered new share-holding arrangements in an effort to raise $128 million.

The company wants to reduce debt after PGG Wrightson withdrew from a plan to buy a 50% stake.

Cream of the Crop awards honor top individuals in agriculture

The cream of the agricultural world rose to the top on Wednesday with the announcement of the winners of the inaugural Agribusiness Person of the Year and Agricultural Person of the Year.

At an awards ceremony in Auckland on Wednesday night, Synlait chief executive Dr John Penno managed to take poll position in the Agribusiness Person of the Year, while Massey University’s Professor Jacqueline Rowarth was awarded the Agricultural Person of the Year.

Professor Rowarth was also honoured, and highlighted the award was down to the focus of the agricultural education sector.

Federated Farmers president Don Nicholson says the Cream of the Crop awards, part of the Federated Farmers annual conference, highlighted passionate individuals who were at the top of their field.

PM John Key shares disappointment of failed merger between AgResearch and Lincoln University

The merger between Lincoln University and AgResearch might have fallen away mid-last month, but Prime Minister John Key says there is a need for research and development to work with business to commercialise ideas for the future.

Speaking at Federated Farmers annual conference, Mr Key expressed disappointment at the merger’s failure, further highlighting the need for research to be based on its commercial appeal.

But Massey’s Professor Jacqueline Rowarth believes Mr Key is jumping the gun in regards to basing research around the need for commercial appeal.

Thursday 2 July

EU and US subsidies blamed for further slump in online auction prices

Fonterra’s online auction system, Global Dairy Trade, took another hit overnight with milk powder prices slumping by another 3 percent.

The average price of milk powder fell to US $1,829 a tonne, the lowest price received  for the commodity since the auction system  began in July last year.

The recent introduction of subsidies by the EU and US, and a drop-off in demand from overseas buyers is being blamed for the price decrease.

With Fonterra’s 2010 opening forecast payout sitting at $4.55 per kilo of milk solids, any further dives in international prices could signal a drop in the payout to famers.

Dairy industry innovator Dr John Penno takes out agribusiness person of the year award

‘Milk Maverick’, and Synlait CEO, Dr John Penno has been named the Federated Farmers inaugural agribusiness person of the year.

Fed Farmers President, Don Nicolson, says Dr Penno deserved the award for showing confidence in the future of our dairy industry, and says Synlait’s business model of ‘cow to consumer’ is revolutionary.

Synlait is an independent milk exporter which opened an eighty million dollar facility earlier this year in Canterbury.

The judging panel for the award included rugby and farming legend, Sir Colin Meads, fashion designer and Annah Stretton, Mayor of Auckland City, the Hon John Banks and David Walker of Telecom’s Gen-i.

NZ Emissions Trading Scheme likely to follow Australian scheme

While many of our farmers are trying to ‘clean up’ their on –farm practices, Agriculture Minister David Carter says environmental issues shouldn’t override economic gains.

Addressing delegates at the Federated Farmers national conference in Auckland, Mr Carter suggested Labour’s Emissions Trading Scheme would not survive the National government.

Carter says he cannot pre-empt the Select Committee’s recommendations, but he does say the ETS will need to be more balanced.

Wednesday 1 July

Trucks given green light to carry loads up to 50 tonne

DAIRY co-op Fonterra and other major logistical companies are set to make a 12 per cent saving on freight, thanks to the announcement of a proposed permit scheme allowing trucks to carry heavier loads.

The scheme will allow heavy vehicles to carry loads up to 50 tonne, an increase of 6 tonnes - A move  Federated Farmers transport spokesman Donald Aubrey believes will benefit the rural sector.

Mr Aubrey says while farmers will see returns to the farm gate as a run-on effect, the savings for dairy giant Fonterra, who operate more than 400 heavy vehicles, will be immediate.

And the proposed Land Transport Rule is now out for consultation.

Government declines continued funding for organic conversion

Farmers looking to convert to organics will have to do it alone after a three-year organics consultancy programme ended on June 30.

The programme, administered by Organics Aotearoa New Zealand, was set-up by the previous government in 2006.

Despite costing $2.1 million and taking 150 farmers through an organics conversion consultation, with 66 of those choosing to adopt organics, the current Government has decided against any continued funding.

An OANZ spokesman says the decision is disappointing as the programme was cheap and effective.

DNA sequencing of microbes part of larger project by Agresearch

Agresearch has successfully applied to the American Department of Energy’s Joint Genome Institute to have DNA sequencing done on microbes from the stomachs of ruminant animals.

The Crown Research Institute says biofuel production from agricultural wastes and more food from ruminant animals with lower environmental impacts are more likely now.

With no funding allocated to AgResearch for this work, the decision means it will now be conducted by the JGI free of charge.

Agresearch scientist Christina Moon says the sequencing is part of a larger project investigating the microbes that digest the plant material in the rumen. It’s about identifying the organisms involved in this process and looking at the enzymes they use to break down plant material.

Tuesday 30 June

Kiwifruit monopoly under scrutiny

A call by giant fruit and vegetable concern, Turners & Growers, for Zespri to be stripped of its monopoly status has received short shrift from the Kiwifruit marketing and sales body.

Turners and Growers has produced a position paper for the government calling for Zespri ‘s privileged position to be done away with and cites abuses of market power and potential loss of export and research and development dollars if it is allowed to continue.

Along with its own paper, Turners and Growers has filed an independent report by economic consultants NERA which supports its argument for deregulation so there can be more than one commercial strategy beyond the orchard gate.

But Zespri director of corporate and grower services, Carol Ward, says the suggestion has no support within the industry.

Turners and Growers is restricted to exporting only one percent of the crop – that’s to Australia – because of the regulations making Zespri the sole exporter to every other market in the world.

Growers representative Peter Ombler says the two thousand eight hundred members of his organisation are comfortable with the current structure and believe the current monopoly encourages R&D rather than blocking it.

New Zealand’s largest trade surplus in sixteen years

Latest figures from Statistics New Zealand show the country last month posted its largest trade surplus in 16 years, with a big boost coming from dairy exports, which were up 19 percent on a year earlier.

Exports were at 4 billion dollars and exceeded imports by 858 million dollars.

There was a 5.8 per cent gain in exports in May compared to a year ago.

Shipments to China of milk powder, butter, cheese, logs and wood products accounted for about 80 percent of the monthly gain.

The surplus figure was also helped by recession-driven low domestic demand and a cheaper exchange rate compared to the same time last year.

NZ Trade and Enterprise toasts the vineyards of the Hawke’s Bay

The profile of Hawke’s Bay’s red wine is set to receive a $50,000 boost thanks to New Zealand Trade and Enterprises’ Regional Strategy Fund.

The funding will be used by Hawke’s Bay Winegrowers (HBWG) to investigate and develop five key projects over the next year.

Lyn Bevin, HBWG’s Executive Officer, says the money will help to raise the profile of the region’s red wines.

Bevin says while the red wines of Hawke’s Bay, notably the region’s Bordeaux blends and it’s Syrah are world class, they fall behind  Sauvignon Blanc and Pinot Noir in export terms.

Funding will be used to develop two annual events, the NZ Cabernet Merlot Forum and the national Syrah Symposium,   as well as identifying a means to market and promote Hawke’s Bay’s red wine internationally, with Australia the first port of call.

Monday 29 June

Dairy prices set to fall as American and European export subsidies encourage more milk products onto global market

Export subsidies for dairy farmers in the U.S. and Europe could cost the New Zealand economy around NZ$122 million by encouraging more milk products onto global markets and driving down prices.

That’s the finding of a new report by the New Zealand Institute of Economic Research that says New Zealand’s dairy output may fall by around 5% and the value of milk, butter and cheese exports could decline some 8% as American and European subsidies create an oversupply of product.

The think-tank predicts the global economy will be worse off by around US$41 million, although countries such as Japan and Korean would benefit from lower world prices.

The Institute’s deputy chief executive, John Ballingall, says the prospect of lower dairy prices will cause kiwi farmers’ incomes to fall below where they would otherwise have been, through no fault of their own. He says the risk of ongoing retaliation between the U.S. and EU, and potentially others, could lead to larger increases in subsidies, tariffs and other trade barriers over time.

Finalists named for Agribusiness person of the year award

Federated Farmers has released the list of finalists for the first ever Agribusiness person of the year, with a pool of six set to go head to head for the title.

They are Tom Henderson, Champion of the Environment Award winning Opuha Dam, Jeremy Moon, managing director of Icebreaker, PGG Wrightson chairman Craig  Norgate, Synlait CEO Dr John Penno,, AgResearch chair Sam Robinson, and Ben Russell, Rabobank’s general manager, Rural New Zealand.

The winner will be announced at a dinner in Auckland as part of the 2009 Federated Farmers National Conference.

Friday 26 June

Competition over limited wool types saw stronger prices at South Island wool sale

The final sale for the 2008/2009 wool roster saw prices generally stronger.

Of the 16,900 bales on offer at the South Island sale, 65 per cent sold.

Compared to last week’s North Island sale, the greater selection of types on offer increased competition for the limited quantities available in some categories.

The first wool auction of the new season will be held in Napier on Thursday 9 July, with approximately 14,000 bales on offer.

Bee lovers band together

A honey industry group made up of vested parties has been formed to find a unified way of promoting the health benefits of manuka honey.

Jim Edwards, chairman of the Bee Products Standards Council, says there is need for all of those in the manuka honey business to start reading from the same page.

And while it’s important for manuka producers to share the same promotional values, Edwards says providing the marketplace with a level of standardization is the key.

NZ beef holds its own in Korea, in spite of US entry into market

New Zealand beef is holding its own in Korea’s imported beef market in spite of the entry of US beef to the market in 2007.

Meat & Wool New Zealand chairman, Mike Petersen, says volumes of New Zealand beef into Korea remain steady at around 38,000 tonnes, an amount which brought around $181 million dollars into our pockets last year.

Petersen says New Zealand has maintained around 19% of the imported beef market, with the increase in American supplies coming at the expense of Australian beef.

Thursday 25 June

NZ ‘Meat’ met with optimism

The launch of a Ministry of Agriculture and Forestry meat sector study on Thursday points to a bright future for the industry.

According to Agriculture Minister David Carter, the study shows the meat sector recognises change is both necessary and desirable.

Carter says with land prices no longer buoyant, the days of low-margin sheep and beef farms getting by on capital gains from land values alone are over.

The study also shows a degree of optimism in the sector, with more than 60% of those surveyed having the belief the meat industry will be a good investment in 15 years’ time.

Carter says change would only be lasting if driven from within the sector, urging the industry to work together to deliver higher returns.

Fonterra consolidates management structure  with new unit, Fonterra Operations and Trade

And in another cost cutting move, Diary Giant Fonterra has consolidated a number of business entities and rearranged its management structure to form a single unit.

The new unit will be called Fonterra Operations and Trade, and will combine all milk supply and collection, shareholder relations, processing, supply chain and Government relations.

The new unit will be run by managing director Gary Romano, formerly director of Fonterra’s manufacturing and supply chain group.

The co-op believes the new structure will place greater focus on efficiency in Fonterra’s core business.

Formation of a weak El Nino weather panel could have a major impact on the agricultural sector

Farmers throughout the country should brace themselves for adverse weather conditions in the coming months with current readings indicating the formation of a weak El Nino weather panel.

Weather expert Jim Salinger, of the World Meteorological Organisation, says there is a 60 per cent chance the current pattern will develop into a moderate El Nino pattern over spring.

Salinger says El Nino weather conditions throughout spring and into summer could have a major impact on the agricultural sector.

Monday 22 June

Dairy farmers apply a more balanced approach to production due to drop in milk solid payout

Dairy farmers are having to change the way they farm in light of the drop in milk solid payout.

According to Leanne Gifford, New Zealand manager of Red Sky Agriculture, dairy farmers are moving away from the high input systems designed to maximise production in favour of a more balanced approach.

While record milk payouts of previous seasons have had dairy farmers looking at ways to increase their production, the cost of this increase is not feasible for a payout sitting at $4.55.

However, some farmers are locked into higher input systems through debt, and cannot afford any drop in their production.

Leann Gifford says dairy farmers in this position need to find balance by both lowering their input costs, yet maintaining a high enough production to service their debt.

Fed Farmers concerned NAITs call to purchase ear tags is premature and irresponsible

Anticipation of a proposed National Animal Identification and Tracing scheme has led NAIT Chairman, Ian Corney, to call for farmers to purchase ear tags now.

But Corney’s call has been countered by Federated Farmers, who say they are concerned the announcement is premature and irresponsible.

According to Federated Farmers Dairy chairperson, Lachlan McKenzie, the move makes little commercial sense for farmers.

Mr McKenzie says there are also concerns the technology is dated, with other industries already planning to move towards high frequency radio technology.

Lachlan McKenzie says the call to buy expensive hardware also comes at a time when farmers have very little - to no farm income.

Kiwifruit Growers support Te Puke orchards affected by recent hail storms

Kiwifruit Growers around the country have come out to support growers affected by the recent hail storms in Te Puke.

At the New Zealand Kiwifruit Growers Incorporated forum, growers voted unanimously to support an opt-in contribution to the hail relief scheme.

The $1.4 million contribution will provide additional funds to the estimated 350 Bay of Plenty orchards affected in the May 11 storms.

Friday 19 June

Continued reduction in wool prices due to limited demand for carpet types

Limited demand for carpet types at Thursday’s wool auction in Napier has resulted in a continued reduction in the price of wool.

Of the 14,000 bales at the auction, only 58 per cent sold.

According to New Zealand Wool Services International, longer fine crossbred fleece was 4-8 percent cheaper, while shorter types were 5-9 percent down as interest from Chinese buyers waned.

Prices for first lambs’ wools were also down between five and eight per cent, with oddments dropping between four and ten per cent.

Next week’s wool auction will be in the South Island and it’s expected there will be upwards of 18,000 bales on offer.

Cattle farmers advised to use NAIT compliant electronic ear tags this season

Cattle farmers should consider using NAIT-compliant electronic ear tags when tagging this season, says Ian Corney, chairman of the National Animal Identification and Tracing project (NAIT).

With the Animal Health Board recently approving NAIT-compliant tags as secondary tags, farmers can now avoid the cost of having to apply additional ear tag to cattle to meet expected NAIT obligations.

Corney says if the NAIT scheme is approved, radio frequency identification device tags will become mandatory from 2011.

Early adoption of the new tags would save money for farmers, he says, and it is easier and safer to tag juvenile rather than fully grown animals.

Cream of the Crop awards soon to be announced at Fed Farmers national conference

New Zealand’s Agribusiness Person of the Year and Agricultural Personality of the Year will soon be known when the winners are announced at the inaugural ‘Cream of the Crops’ awards...

The awards, which will be held as part of the upcoming Federated Farmers National conference, aim to recognise the importance the agri-sector holds to New Zealand’s economy.

President of Federated Farmers, Don Nicolson, says the sector is worth $25 billion in exports yearly, and accounts for 64 percent of everything the country sells, but until now hasn’t received the credit it deserves.

The judging panel will include rugby and farming legend, Sir Colin Meads, fashion designer Annah Stretton, Mayor of Auckland City,  John Banks and Gen-i’s, David Walker.

And the ‘Cream of the Crops’ awards will be held on Wednesday 1st July.

Thursday 18 June

Independent report finds modifications should be made to Emissions Trading Scheme

The Emissions Trading Scheme should be modified according to an independent report submitted to the scheme’s review committee.

Climate change Minister Dr Nick Smith says the report provides a useful contribution on how New Zealand can meet environmental goals at the least cost to the economy.

Proposed modification to the ETS has met with limited support from the agriculture sector, including HorticultureNZ, one of the 278 organisations to make a submission to the ETS review committee.

According to HorticultureNZ chief executive Peter Silcock, while modifying the ETS is a step in the right direction, it’s not enough yet.

Without wholesale changes to the scheme, Silcock says the horticulture industry will still be disadvantaged trading in international markets against non-Kyoto affiliated countries.

The reports’ authors say it would be useful to do further research on the industry-specific effects of the scheme.

Massey University study finds agri-sector workers at higher risk of cancer

Could working in the agri-sector create a higher risk of cancer, well that’s a possibility according to a study just released by Massey University.

Massey’s Centre for Public Health Research has found the risk of developing leukemia was four to five times greater among market gardeners and nursery growers, compared to the general population, which is probably due to their exposure to chemicals.

The study, which started in 2003, also found the overall risk appeared to be up to 3.4 times greater in women than men.

Massey University’s results correlate with previous studies of workers in horticultural occupations in Italy, and in workers with occupational exposure to agricultural chemicals, such as fungicides and insecticides, in the United States.

Grapegrowers called to halt pruning as wine producers assess future needs

New Zealand’s largest wine producer, Pernod-Ricard, has called for contract grapegrowers to halt pruning while it re-assesses its future needs.

The company, formerly known as Montana, wants to look at the volumes from the 2009 vintage, which equalled last year’s record-breaking crop of 285,000 tonnes, before planning for the 2010 season.

The company says, given the challenging economic climate, they need to make sure the pruning is being done at a level which is appropriate to the markets they’ll be trading in.

Wednesday 17 July

Capital to be returned to Dairy Equity shareholders as company winds-up

Shareholders in Dairy Equity Ltd have voted to allow the company to be wound –up and, capital to be returned to them.

Returns will be based on Fonterra's planned share price of $4.52 a share and value-added component of 45 cents a share represented a 10 percent yield, pre- tax, which the company says the is a pretty competitive return.

The company predicted there could be interest from parties seeking to buy its Fonterra shares and to use its intellectual property to invest further in the equity of the dairy cooperative.

Dairy Equity operated through SWAPs agreements with dairy farmers, which involve Dairy Equity agreeing to buy fair value shares for each kilogram of milksolids farmers supplied to Fonterra.

High Court decide against AgResearch’s application for genetic engineering experimentation

Campaigners against genetic modification have applauded a high court decision forcing crown research institute AgResearch to hold off a genetic engineering experimentation involving livestock.

The case, bought to the court by GE Free New Zealand, argued the acceptance of AgResearch’s application by government body ERMA, was wrong.

According to GE Free spokesman Jon Carapiet, if the application had been allowed, it would have set a precedent for the commercialised genetic engineering experiments throughout New Zealand.

Allowing the experiments to go ahead could be a danger to the country’s agricultural economy, says Carapiet.

According to Dr Jimmy Suttie, AgResearch’s general manager of science and technology, the decision is a major setback.

New Zealand diary farms will be first to benefit from effluent study

New Zealand dairy farmers will be the first to benefit from a study into effluent management.

The project is being undertaken by Massey scientist Dr Dave Horne and PhD researcher James Hanly, in collaboration with R&D company Harmonic Ltd, and aims to provide farmers with better data to schedule and monitor their effluent.

The research project was showcased at the recent National Field Days and Mr Hanley says the system has been designed for New Zealand conditions and the use of small travelling irrigators.

Tuesday 16 June 2009

The rural business sector bolsters manufacturing Sales volume

The primary sector helped to bolster total manufacturing sales volumes for the march 2009 quarter.

While the Meat and dairy product manufacturing was up by just over twenty three percent, total sales volumes fell by six point five percent, the largest recorded fall since June 1994.

According to Statistics New Zealand, data also shows total manufacturing volumes, excluding the meat and dairy industry, have had an average quarterly fall of 3.9 percent since March 2008.

New isotope analysis identifies free range and caged hen eggs

A new test can now tell the difference between eggs from caged hens and those from free-range and organic hens.

According to Dr Karyne Rogers of GNS Science, it is believed to be the first time eggs from different farming systems have been distinguished using isotope analysis.

By analysing the carbon and nitrogen found in the egg, Dr Rogers says she can identify the hen's diet, which reflects the type of farming environment where the hens were raised.

Free-range hens have access to a wider range of food sources than their caged counterparts, and this changes the isotope fingerprint of their eggs, says Rogers.

Export prices take biggest dive in fifty years

Export prices took a massive dive in the March quarter, the largest quarterly fall in over fifty years, driven mainly by a 20 point five percent drop in dairy prices.

CEO of Westland Milk Rod Quinn says the ramifications for the dairy industry and rural sector will be ongoing.

Quinn says it’s not panic stations just yet as the industry is seeing signs of resurgence in the not too distant future.

Monday 15 June 2009

Professor advises dairy farmers to go with milk companies who know the true value of the project

A Waikato University Management School professor is telling dairy farmers they need to invest in milk companies which know the true value of their milk products.

Dr. Stuart Locke says the payout figures for 2008 have not changed dramatically since 1987 because products are not marketed and sold at a premium to our export markets.

Dr. Locke says farmers are being told to keep costs to a minimum, but reducing costs will not provide them with profit margins which they can be proud of.

Stuart Locke says New Zealand dairy farmers have a product which is in demand worldwide - and it’s in our best interest to market that product to its full potential.

MAF bio-security controls are the strictest in the world  says director

The Ministry of Agriculture and Fishery now have the most stringent bio-security controls in the world, that’s according to MAF director general Murray Sherwin.

Mr. Sherwin says the bio security risks continue to grow each year, and MAF must continually adapt to meet any possible incursions.

Mr Sherwin says we have a lot of bio-diversity to protect in New Zealand and our agricultural sector can’t afford any slip-ups, especially in the current economic climate.

New farmer group says 1080 could be more damaging than the disease its trying to prevent 

A new farmer group has been set up in light of growing concerns over 1080 use in New Zealand.

The group, FATE – Farmers Against Ten Eighty – says using the chemical could have more effect on the markets they service than bovine tuberculosis, the disease 1080 is used to prevent.

FATE spokesperson Mary Molloy, says the group believes vaccines and older grazing techniques should be used to combat bovine tuberculosis.

Friday 12 June 2009

Key says 190 million dollar fund should add stimulus to ag research

Prime Minister John Key was amongst the tens of thousands of people attending the National Fieldays event at Mystery creek this week and Country 99 TV managed to catch up with him for a quick interview.

Mr. Key says the 190 million dollar primary growth partnership fund over the next four years should add some stimulus for research in agriculture that is badly needed.

The Prime Minister says farmers can expect an announcement on rural broadband in the next few days that will outstrip the original 48 million dollar plan.

John Key says obviously this figure was not going to be enough.

The Prime Minister says events such as Fieldays are crucial to New Zealand’s economy and he praised organisers for another spectacular week.

Ag minister supports Ag Research and Lincoln university partnership

As well as Prime Minister John Key, Agriculture Minister David Carter was making his way around Fieldays.

Mr Carter was asked his opinion on the failed merger turned partnership between Lincoln University and AgResearch.

The Minister says he is more than happy with the outcome – saying a partnership will serve the agricultural sector better.

Mr Carter says a merger could have caused headaches for both organisations and the new agreement will see Lincoln and Agresearch have the ability to work autonomously as well as in partnership.

David Carter also touched on the subject of U.S dairy subsidies – assuring farmers that all that can be done by our government is being done.

And David Carter says the situation is unfortunate but New Zealand farmers must battle on.

Animal Health board gauges public opinion at Fieldays

The Animal Health Board is at Fieldays gauging public response to the way Bovine Tuberculosis control is being managed.

Animal Health Board Chief Executive William McCook says Fieldays is a good opportunity to obtain information from farmers, as well as farmers asking staff questions.

Mr McCook says much progress has been made to lessen the effect of TB on livestock but now is not the time to rest on our laurels.

Thursday 11 June 2009

Official Cash Rate remains unchanged

For the first time in twelve months, the Official Cash Rate has been left unchanged at two point five percent…

Reserve Bank Governor Allan Bollard says although the economic outlook remains weak - there are signs that international activity is stabilizing and conditions are improving.

Mr Bollard says the OCR has been cut by a large amount over the last year, and he expects the effects of this to pass through to more borrowers in the coming months as fixed-rate mortgages come up for re-pricing.

Allan Bollard says he expects New Zealand’s economy to begin growing again toward the end of the year, but says the recovery is likely to be slow and fragile, and says he expects to keep the OCR at, or slightly below, the current level through to the latter part of 2010.

Feds urge banks to cut interest rates for farmers

Federated farmers are calling for banks to pass on interest rate cuts to farm businesses, saying overdraft interest rates don’t reflect cuts made to the Official Cash Rate…

A recent Feds interest rate survey revealed farm business rates have fallen by an average of just over two point six percent, while the OCR has been cut by four percent.

Federated Farmers Economics and Commerce spokesperson, Phil York says farmers have been hit with a lot of bad news lately, including milk powder prices falling, and on-farm inflation costs rising, so a little grace from banks would go a long way.

Parliament’s Finance and Expenditure Committee has also criticized the banking sector for not passing on the full interest rate cuts.

Major fine for Auckland woman slaughtering chickens

An Auckland woman has been fined 23 thousand dollars after The New Zealand Food Safety Authority took her to court for slaughtering chickens in what has been described as ‘stomach churning conditions’.

Ling Zhang and her company Ling Ling Poultry pleaded guilty in Papakura District Court last week for killing animals in premises with no electricity, running water, refrigeration or sanitation as well as no risk management plan.

Judge Eddie Paul says anyone viewing the manner in which the barn was run would have been disturbed by what they saw.

NZFSA assistant director of compliance and investigation Justin Rowlands said the court ruling was an excellent outcome.

Wednesday 10 June 2009

Fonterra executives freeze their pay packets

With the latest forecast from Fonterra hitting farmers hard in the pocket, executives at the dairy giant have decided to freeze their own pay packets as well.

Chief executive Andrew Ferrier says by freezing management salaries it sends a message to shareholders that they’re all in it together.

The financial benefit to the company is minuscule in the grand scheme of things but Mr Ferrier says the board deemed it appropriate to ‘share the pain’.

Fonterra’s 2008 annual report showed its highest paid employee, most likely to be Mr Ferrier, earned almost four million dollars for the period ending 31st  Of July 2008.

New Zealand Lamb is placed well despite drop in numbers

Farmers and producers worried about the massive drop in lamb numbers are being told the industry is still alive and kicking.

So far New Zealand has been able to supply all overseas consumers with product despite initial concerns.

Processing figures are down 18 percent on last year but plentiful grass conditions in most areas have meant farmers have been able to carry stock through to the winter.

Silver Fern Farms chief executive Keith Cooper says there’s been a peak in chilled product and a drop in frozen product due to the lack of lambs and the necessity of shifting product as soon as it becomes available.

NZ Economic Services director Rob Davison says New Zealand lamb is placed well going into 2010 due to its price premium in many overseas markets.

Agresearch and Lincoln University to form partnership

The proposed merger between Agresearch and Lincoln University is not going to be a merger after all.

Instead it’s going to be a partnership, a move praised by The Public Service Association’s national secretary Richard Wagstaff.

Mr. Wagstaff says over five-hundred of his staff are involved in work at Agresearch and a merger would have meant a disruptive and expensive restructuring, not worth the hassle.

Mr Wagstaff says a partnership on the other hand will encourage both organisations to work together more efficiently than a merger would.

The official partnership is planned to be in place by early 2010.

Tuesday 9 June 2009

Export subsidies on milk products remain until 2013

Unfortunately for our dairy farmers, export subsidies on milk products from the EU will not be eliminated before 2013.

EU ambassador to the WTO, Eckart Guth says he has seen no evidence that change would come before the cut off date of 2013, despite numerous global trade talks.

Mr Guth says the current economic climate is forcing many nations into protectionist policies and unfortunately it’s affecting smaller producers and emerging nations like India.

Independent cheese companies win battle for cheap milk from Fonterra

Two independent cheese companies, Kaimai Cheese, and the Grate Kiwi cheese company, have won their battle as ‘independent processors’ to gain access to cheap milk supplied by dairy giant Fonterra.

The commerce commission found in favour of the two companies and also awarded them compensation, dating back to the 1st October 08, in which Fonterra refused supply.

Deborah Battell, the commission's director of competition, says regulations allow an independent processor the freedom to contract a third party to perform some or all of the production process for milk, milk solids or dairy products.

The supply of raw milk to small rivals was a key trade-off that Fonterra farmers made to avoid commission scrutiny of the mega-merger that originally set up their company.

Feds president takes dairy subsidies story to New York

Federated Farmers President, Don Nicolson is now Wall Street Journal Author, The high profile New York paper has published an article by Mr Nicolson pushing New Zealand’s message of ‘No Dairy Subsidies’ to the world.

Up until now Mr Nicolson says Australian and New Zealand farmers have been ‘talking to themselves’ in regard to the U.S announcement that its farmers will receive subsidies for their dairy products.

But with the printing of an article by Mr. Nicolson in the wall street journal, he hopes to reach Washington’s policy makers with a loud message ‘saying export subsidies are an unfair advantage in a world market.

Mr. Nicolson says New Zealand dairy farmers have to stand on their own two feet without government help, so it’s only right for American farmers to do the same.

Monday 8 June 2009

Turners and growers claim ZESPRI’s monopoly over industry is a detriment to growers.

Turners and growers have lashed out at the country’s biggest Kiwifruit exporter ZESPRI, claiming its monopoly of the industry outside New Zealand and Australia is a detriment to growers.

Turners and Growers chairman Tony Gibbs says offshore retailers are crying out for alternatives and his company is in a position to become a major force in the kiwifruit industry.

Mr Gibbs says Turners and Growers have sourced its own markets outside of ZESPRI’s realm of control and they want to pursue those opportunities.

Kiwifruit is largely seen as New Zealand’s most successful fruit export with one billion dollars a year made in export earnings.

Horticulture NZ delight in governments support of the recognized seasonal employer scheme

The government has thrown its weight behind continuing the recognised seasonal employer scheme, much to the delight of New Zealand’s Horticulture industry.

Horticulture New Zealand CEO Peter Silcock says having the RSE in place gives stability to an industry which is dependent on a steady work flow.

Mr Silcock says the introduction of the supplementary seasonal employment policy will also give the industry a boost especially at times when workload is high, but the workforce is lacking.

Despite the announcements Peter Silcock says the industry is still committed to a ‘New Zealander’s first’ approach and the new policies will not push out local individuals who want to work.

Fonterra are close to achieving goal of re-cycling or re-using ninety percent of its waste

Fonterra have announced it’s close to achieving its goal of re-cycling or re-using ninety percent of its waste over the last twelve months.

According to Spring Humphreys, Fonterra’s Eco-efficiency manager, the savings from organic and in-organic products equate to about seven and a half thousand tonnes of greenhouse gas emissions.

The savings were attained by identifying waste streams throughout the company and eliminating or reducing them.

Fonterra are looking to the future if an emissions trading scheme is created, as the less waste they make the less cost it will be in the long run.

Friday 5 June 2009

Malaysian free trade agreement will be good news for New Zealand farmers

A new Malaysian free trade agreement is good news for New Zealand farmers according to Meat and Wool New Zealand’s chairman Mike Petersen.

Mr. Petersen says the Asian nations are an excellent source of wealth for our farmers as they have a growing population, and many of them are still expanding financially.

Mr. Petersen says it is important for our government to be constantly on the lookout for opportunities that will benefit our primary sector and economy.

Bilateral trade with Malaysia reached 2 point 7 billion New Zealand dollars for the year ending June 2008.

Australia’s dollar climbs to eight-month high, as agricultural sector boosts economy

Australia’s agricultural sector has boosted the economy in the first quarter, with the Australian dollar climbing to an eight-month high.

Despite defying the global recession employment levels are down and market volatility is halting further progression.

Australia’s Treasurer, Wayne Swan, says the current highs being experienced are supported by a rebound in farm output over the last season, but the economy is not out of the woods yet.

Regional councils are praising farmer’s efforts for the cleanest gypsy day ever

Farmers are being congratulated for the cleanest gypsy day ever – the day when farmers move their stock to winter grazing land, marking the start of the new dairying season.

Gypsy Day requires a mammoth effort by transporters, which in the Waikato alone needed over 200 trucks to move cows to new farms.

Regional councils around the country are praising the efforts of those involved for minimizing the amount of effluent produced in transit.

Wednesday 3 June

Government plans to establish a Centre for Agricultural Greenhouse Gas Research by 2010

As part of the government’s 190 million dollar primary growth partnership fund for agriculture – five million will go into greenhouse gas research and development.

The government plans to establish a Centre for Agricultural Greenhouse Gas Research by early 2010 which will be charged with developing technologies to reduce emissions and improve on-farm efficiency and productivity.

The centre also plans to reach out to similar research facilities around the world, providing a platform for broader engagement with the international community.

Agricultural Minister David Carter says because our emissions profile is made up predominately from ruminant animal emissions, it makes sense that New Zealand leads the global effort to develop agricultural emission mitigation technologies.

Four English conservation groups have begun mission to rescue short haired bumblebee

An alliance of Four English conservation groups has begun an international mission to rescue the short haired bumblebee from around Lake Wanaka…

The bumble bee was introduced to New Zealand 120 years ago to help pollinate red clover, and now we’re returning the favour by shipping the bees back to their homeland, where the insect was declared extinct last year…

Federated Framers Bee Spokesman John Hartnell says the lesson should be loud and clear for New Zealander’s that the bee is an important part of our eco-system and must be looked after.

And Mr. Hartnell says a number of farming practices are making it hard for all bee populations to grow.

Fed Farmers will have petition at Fieldays calling for an end to tariffs and subsidies on agricultural products.

Federated farmers will be using Fieldays as a chance to reach out to its members and show them how necessary the organisation is to New Zealand’s agricultural sector.

Tuesday 2 June 2009

According to Met Service, near normal weather conditions are expected for month ahead

Despite the blustery start to winter, near-normal conditions are expected for the rest of the month according to Met Service weather ambassador Bob McDavitt.

Mr. McDavitt says the wild weather already being experienced around the country should ease this week.

Mr McDavitt says we are in between la Nina and el Niño weather patterns, meaning extreme conditions should be absent.

Farmers are still advised to keep an eye out for stock during cold conditions especially in areas such as Otago and Canterbury.

National’s insulation package could have positive spin-off for our wool industry

National’s proposed 323 million home insulation package may have a positive spin-off for our wool industry.

Bruce Wills, Federated Farmers Meat & Fibre chairman says having wool insulation in your home is a fantastic solution and easily matches any product which is man-made or synthetic.

Mr. Wills says wool insulation meets the building code, doesn’t burn and is treated to be vermin proof so it is the ideal choice.

Mr. Wills says if New Zealand is making a long-term investment in healthier homes, it could make for a much healthier wool industry.

Piedmontese cattle recognized as tastiest and tenderest at steak of origin competition

A breed of cattle usually shunned by New Zealand beef farmers is now being recognized as a goldmine after it was named the tastiest and tenderest piece of meat at Meat and Wool New Zealand’s steak of origin competition.

White-coated, heavily muscled piedmontese cattle have shown in international studies that its steak tends to be lower in fat, calories and cholesterol than many other breeds.

There are only seventeen registered breeders of piedmontese cattle in New Zealand all of which claim the breeds best attribute is actually the amount of meat it produces.

Friday 29 May

National government’s first budget gets pass mark by Federated Farmers

Federated Farmers President Don Nicholson says the National government’s first budget gets a pass mark, despite the current economic conditions.

Mr. Nicholson says the government has done well to provide one hundred and ninety million dollars over a four year period for the Primary Growth Partnership which aims to cover every aspect of the value chain, including education, research and development, product development, market development and technology.

Mr. Nicholson says this budget has meant New Zealand has kept its credit rating, which will prevent interest rates from climbing.

Federated farmers say they will work closely with government to ensure the primary growth partnership funding is used wisely over the next year.

Fonterra commends government for investing in agriculture despite global economic crisis

Dairy giant Fonterra have also stuck behind the government’s new budget claiming the additional research and development planned for the primary sector is excellent news.

Andrew Ferrier, Chief Executive of Fonterra says the government should be commended for investing in agriculture despite the global economic crisis.

Mr. Ferrier says Fonterra is committed to innovation in the pastoral sector and will help out in any way they can.

Depression may become prevalent in the rural sector  after drop in milk solids price forecast

Federated Farmers are asking dairy farmers to look out for each other as signs of depression may become prevalent in the rural sector after the milk solids price forecast dived yet again.

Taranaki Federated Farmers dairy section chairwoman Caroline Gilbert says financial pressure was a sure route to depression.

Ms Gilbert says farmers need to look out for any strange behavior such as cows not being shifted for a few days, she says its happened in times of drought, when stress becomes too much.

Thursday 28 May 2009

Fonterra remain optimistic about the future despite drop in forecast payout

Despite Fonterra’s board predicting a sixty-five cent drop in share price for the 2009/2010 season to four dollars sixty-five, they remain optimistic about the company’s future.

Chairman, Henry van der Heyden, claims Fonterra’s balance sheet remains strong and they are well placed to capatilise on the marketplace once the recession subsides.

Mr. van der Heyden says farmers will be hit hard by the current announcement, but a one cent move upwards in the U.S dollar could mean as much as a ten cent rise in share price for share holders.

Fonterra CEO Andrew Ferrier says due to the likelihood of farmers having already tightened their purse strings, Fonterra has decided to bring forward the payment of 20 cents per kilogram of milk solids from October to August to help ease the blow.

Mr Ferrier says the recent announcement by the United States government claiming its farmers would receive subsidies has not helped the uncertainty surrounding the industry.

Price of milk solids plummet back to down to 2007 levels

And to more news on Fonterra…
The response from the dairy giant’s shareholders to its latest forecast announcement is one of disappointment as the price of milk solids plummet back down to 2007 levels.

Fonterra Shareholders' Council Chairman Blue Read says the thirteen percent decrease is sobering because farm prices have risen.

Mr. Read says farmers must have a sound strategic business plan for seeing out the recession to manage the significant loss in revenue.

Despite the frustration at the lower payout, Mr. Read says the shareholders council is still confident Fonterra is doing all it can to increase returns for its farmers.

Despite concerns Transpower’s North Island power upgrade has all but got the green light

Transpower’s north island power upgrade has all but got the green light despite concerns by local landholders who say the project will have environmental effects on the land.

Over 1200 submissions were heard and it is accepted more than 300 properties in the South of Auckland and North Waikato.

Federated Farmers Auckland President and Energy spokesman Phil York says many farmers in the area are very disappointed with the outcome.

Mr. York says despite the project going ahead, Transpower has been understanding and open about their intentions and have told farmers they will do their best to minimise the impact.

Transpower says the benefits outweigh the any negatives as this could shore up Auckland’s power woes.

Wednesday 27 May

NZ dairy farmers could face another drop in global milk prices following subsidy announcement from the US administration

The United States followed the EU in announcing it will provide subsidies for its dairy farmers earlier this week despite condemnation from around the world.

The subsidies have the potential to lower global milk prices and New Zealand’s dairy farmers could face another drop in their milk solid price if talks fail to reverse the Obama administrations decision.

New automation technology to transform sheep processing operations

New Zealand’s leading meat companies, and the Foundation for Research Science and Technology, are banding together to fund a new initiative to transform our sheep processing operations by using automation technology.

Meat Industry Association (MIA) Chief Executive Tim Ritchie says the project will provide improvements in productivity by up to 43 million dollars a year.

Scientists and engineers will use the newest robotic technology which will automate the early stages of sheep processing including removing the pelt and the internal organs.

The testing will be done in real world environments including meat processing plants, Silver Fern Farms, Alliance Group and ANZCO.

Lincoln University to honour famous sheep breeder Emeritus Professor Ian Coop

New Zealand’s most famous sheep breeder, Emeritus Professor Ian Coop, is being honoured at Lincoln University with an annual public memorial lecture.

Professor Coop’s career at Lincoln University spanned 37 years where he began the initial production of a Border Leicester–Romney cross.

Affectionately known as ‘Mr. Sheep’, Professor Coop went on to develop the breed that bears his name, the Coopworth, boosting lambing percentage by around 25 percent.

Tuesday 26 May 2009

US expert says charging Blenheim farmers for carbon emission will doom NZ economy

A United States expert on Global Warming has told Blenheim farmers at an Agri-business conference that charging them for carbon emissions will doom the New Zealand economy.

Hudson Institute director of global food issues, Dennis Avery says the earth’s fluctuating temperatures over the last 1500 years is caused by global warming, not carbon dioxide.

Mr Avery says with a growing world population set to hit 9 billion by 2045, demand for agricultural food products is bound to soar.

New Zealand is well placed to capitalise on this so long as they are not taxed by any CO2 emission scheme.

Locally-made unpasturised milk to become available in New Zealand

The New Zealand Food Safety Authority are in the process of creating new rules that will allow locally-made unpasturised milk to be available in New Zealand for the purposes of making cheeses and other related foods.

NZFSA’s technical standards and systems assistant director, Scott Crerar, says many countries around the world already have this process in place and it has probably taken to long for it to come into affect here in New Zealand.

Mr. Crerar says many producers, including local dairy farmers, will benefit from the move, as it will open up new local markets with special milk requirements.

Some unpasteurised milk products are higher risk foods than pasteurised products because they have not undergone heat treatment and are therefore susceptible to harmful bacteria.

And Scott Crerar says there will be stringent regulations in place to ensure all food products are safe to consume.

Imported Pork unlikely to be labeled with its country of origin

CEO of New Zealand Pork Sam McIvor says mandatory country of origin labeling is an unlikely outcome for the imported pork products coming into our country.

However, Mr. McIvor says the industry has pushed New Zealand made Pork for many years with great success

This latest news comes on top of the National animal welfare committee, or NAWAC, saying they intend to go ahead with their planned review of all the countries piggeries.

Mr. McIvor says he is hopeful nothing untoward will be found in the review and says last week’s news regarding inhumane treatment of animals should be seen as a one off.

Sam McIvor says the industry has undergone a difficult week and says hes looking forward to getting the industry back on track.

Monday 25 May

Latest announcement from U.S government may be bad news for New Zealand farmers

The announcement that the United States government plans to give subsidies to its dairy farmers could squander any chance of world dairy commodity prices moving off the bottom of the scale according to Simon Tucker, Director of the Dairy Companies Association of New Zealand.

Mr. Tucker says the protectionist announcement may help out American farmers, but it’s unlikely to have any positive results for the global trade of dairying.

Mr. Tucker says our government has already sent a stern message to the States to reverse the decision.

Mr. Tucker sees little chance of the decision being reversed despite the fact the world trade organisation is meeting at present in Geneva.

And New Zealand’s largest dairy producer Fonterra has come out fighting claiming the announcement of US export subsidies will create more uncertainty worldwide in the marketplace.

Fonterra’s Managing Director of Global Trade, Kelvin Wickham says this latest announcement is bad news for the market, and bad news New Zealand farmers, who currently compete internationally with no subsidies of any type for their products.

Ruraljobs.co.nz to be one stop job shop for agricultural sector

A new website designed by Federated Farmers which aims to connect rural employers with prospective workers was launched last week.

Federated Farmers vice president Frank Brenmuhl says the site costs employers nothing to list an advertisement.

Mr. Brenmuhl says the uptake is exceeding expectations after just one week, and says he expects ruraljobs.co.nz to be the one stop job shop for the agricultural sector.

The new rural job site is located in the Federated Farmers portal.

ZESPRI announce encouraging forecast for 2009/2010 season

Grower-owned company ZESPRI has announced an encouraging range of forecast returns for its members for the 2009/2010 season, following a strong performance by the company for the 2008/2009 season.

Indicative returns for green kiwifruit are between $6.70 and $7.20 a tray, while ZESPRI gold is expected to receive between $11.20 and $11.70 a tray.

ZESPRI’s organic product, ZESPRI Green Organic, is expected to have returns ranging from $8.70 to $9.20 per tray, down slightly from its actual return of $9.27 for the 2008/09 period.

Friday 22 May

New Zealand’s milk production at all time high

The country’s Milk production is set to rise eight point three percent due to a record size herd, favourable weather conditions, and good pasture growth.

Fonterra chief executive Andrew Ferrier says a huge shipment in April, coupled with higher inventories in October and November, has meant milk production is at an all-time high.

Estimates from the Global Agricultural Information Network (GAIN) in the U.S predict worldwide dairy production will rise one to two percent, adding to the prospect of a bumber 2010 season.

Balance Agri-Nutrients tells farmers not to expect any further price drops for fertilizer

Despite cutting their price on fertilizer, Balance Agri-Nutrients are telling farmers to not expect any further drops.

Ballance chief executive Larry Bilodeau says prices have stabilised and although farmers would love to see super-phosphates back to 200 dollars a tonne, this is unlikely to happen.

New prices from Ballance, effective at the start of next week, include superphosphate down 3 per cent to $388, urea down 6 per cent to $650, DAP down 17 per cent to $830 and potash up 13 per cent to $1146.

Next week's International Fertiliser Association conference in Shanghai will give a good indication of what fertiliser prices farmers should expect in the future.

Sole-chare principals to use social networking tools to engage with students

Social networking tools are proving to be a successful way that sole-charge principals of rural schools can engage with their students.

A national conference hosted by the college of education will provide sole-charge principals a forum to discuss issues and share ideas on the best way to effectively manage classrooms.

Thursday 21 May

Farmers need to be active in Meat & Wool consultation over increased levies

Meat and wool are receiving a number of different views from sheep and beef farmers around the country as the consultation period for the increase in levies continues.

A no vote is still a possibility despite the fact that it would mean the end of Meat and Wool New Zealand.

So far 19 of the 55 consultation meetings have been held and despite the seriousness of the situation turnout has been decidedly modest.

Meat & Wool New Zealand Chairman, Mike Petersen says the industry is going through some tough times, with wool prices bottoming out and lamb numbers the lowest since 1950 so farmers need to be active in deciding the outcome of their industry.

Warning to farmers of extreme weather by Canterbury Civil Defence

Extreme weather warnings by the Canterbury Civil Defence are being followed up by Federated Farmers as the region is set to be doused with snow to low levels and strong winds over the coming days.

Michael Morrow, Federated Farmers Mid-Canterbury president says farmers may have to move stock to higher, more sheltered ground, to avoid rising river levels.

High country farmers are most at risk, and following on from the 2006 storm which saw families on their own and without power for up to three days, Canterbury Civil Defence are asking farmers to have a backup generator for peace of mind.

Federated Farmers are also asking farmers to ensure emergency feed is close at hand.

Record amount of native trees bound for restoration project in Waikato

Farmers in the Waikato have come out in force to snap up a record amount of native trees, bound for restoration projects as part of an annual Environment Waikato offer this year.

Environment Waikato catchment services committee chair Andra Neeley says it’s great to see farmers taking a keen approach to planting native flora and fauna despite the economic challenges the industry is facing.

Plants ordered by farmers and other agricultural groups are up forty percent on last year’s 83-thousand to 116-thousand.

Wednesday 20 May

Pork Industry facing tough times as animal welfare of pigs is called into question

The Pork Industry is facing one of its toughest times, as the standards and practices surrounding the animal welfare of pigs is called into question after a Levin farmer was accused of keeping his animals in inhumane conditions.

Sam McIvor CEO of New Zealand Pork says there is no doubt this scandal will be damaging the industry, but he hopes consumers will see this as an isolated case.

Mr. McIvor says the New Zealand pork board is backing MAF’s investigation into the Levin property, and will make a statement after its findings are made public.

And he says the feeling on the pork board is at an all-time low.

Wanganui Rural Community Board holding workshop to tackle issue of stock on main highways

The Wanganui Rural Community Board is holding a workshop that will tackle the issue of stock on main highways.

There have been a number of incidents caused by stock effluent on the road and according to community board chair Andy Collins that problem needs to be addressed through the bylaw.

Mr. Collins says the aim is to develop a strategy that meets the current and future demands of all rural road users.

After the workshop the board will make its recommendations, the Wanganui public will also get to have their say through a consultation process.

New chief executive appointed to Irrigation New Zealand..

Irrigation New Zealand has appointed a new chief executive with an extensive background in the primary sector.

Andrew Curtis is currently a strategic advisor with the Hawkes Bay Regional Council where he has developed and implemented water management framework, including crop water allocation framework, water meter strategy, and working with irrigation water demand requirements.

Irrigation NZ chairman, Graeme Sutton, says Mr Curtis has extensive industry knowledge and the ability to relate well to farmer members and officials at regional and national government levels.

Tuesday 19 May 2009

Animal welfare inspectors to investigate intensive pig farming operation

The New Zealand pork industry has come under intense fire after secretly filmed footage was released from an intensive pig farming operation.

The footage, which aired on the ‘Sunday’ programme depicted sows in cramped, filthy crates, footage which animal rights activists have labeled as disturbing.

Agriculture Minister David Carter says Animal Welfare inspectors have been asked to inspect the pig farm at the centre of the animal welfare probe.

Mr Carter says it is essential to find out whether the pig farming operation is in breach of the Animal welfare act.

David Carter says the ministry has the power to prosecute owners, and those in charge of any animals found in breach of the Animal Welfare Act.

New Zealand Pork Board Chairman Chris Trengrove says the organisation fully supports the minister’s investigation of the farm, and says they will fully cooperate.

And Mr Trengrove says the pork industry is phasing out the use of long tern sow stalls, and says the industry is more than half way there.

Latest stats from the real estate institute show positive sign for rural sector

The latest stats from the real estate institute of New Zealand show an improvement of turnover and a settling down of prices in the rural sector.

The total number of farms sold in the three months to April 09 was 266, up from 231 in March…although the medium sale price across all farms was down slightly to $1, 042,500, compared to $1,175,000 for the same period.

REINZ National Councillor, and rural spokesperson, Peter McDonald says the increased turnover is a very positive sign for the sector, but says the figures are considered low for what is normally expected in April.

Mr McDonald says the most consistent performer in the rural sector continued to be Lifestyle blocks.

Rock star John Lyndon to persuade UK consumers to switch from Anchor butter  to their own

Our dairy farmers are calling on former Sex Pistols front man John Lyndon, AKA Johnny Rotten, to come down under and visit our free range cows…

UK brand, Dairy Crest Country Life, has employed the former punk rocker in a series of print ads to persuade British consumers to switch from Anchor butter to their own.

The ads feature a picture of Mr Lyndon under the headline, “Anchor’s from New Zealand, so I buy Country Life cos I think it tastes best”.

Federated Farmers vice chairman Willy Leferink says it’s the quality of the product which matters, and says kiwi cows are in a league of their own.

Monday 18 May 2009

Some good news for sheep farmers as lamb prices at an all time high

In good news for sheep farmers...Lamb prices are at the highest they have ever been for New Zealand farmers... but a dwindling flock has meant investment in the industry remains stagnant.

Sheep levels are the lowest they have been since 1950 and John Blackwell from the sheep and beef council says there is still concern in the area especially considering wool prices are so low.

The high demand for lamb is a beacon for some farmers up almost sixty percent on last year’s price of 67 dollars a lamb but Mr Blackwell says the volatility of the current market is making everyone cautious.

Farmers on the lookout as wild weather set to continue this week

A weekend of wild weather around the country looks set to continue into the week with the south island in the firing line after the lower north island was treated to gale force winds and wet weather.

Bob McDavitt from Metservice says farmers should be wary of Wednesday, when a brisk southerly will show up in parts of the country.

Despite drought conditions being identified in the Hawke’s Bay, the area has flood warnings for many of the region’s rivers early this week.

Mr. McDavitt says the wetness may also not have any effect on the drought status of the embattled province.

Canterbury is also set for some heavy rain early this week but the met service is certain the weather warnings will subside around Friday.

PGG Wrightson and IHC celebrate 25 years of collaboration

For The last 25 years PGG Wrightson in collaboration with IHC, have been encouraging New Zealand dairy farmers to donate calves for rearing, eventually to be sold – helping to raise money for people living with an intellectual disability.

Since the scheme started, the IHC has received over twenty million dollars from 100 thousand calves.

To mark the celebration, the IHC will be creating a giant silage cake complete with candles and special guests such as patron, Colin Meads, and PGG Wrightson’s Craig Norgate.

Friday 15 May 2009

Over half a million dollars to be provided for community irrigations schemes

Over half a million dollars has now been provided to five different community irrigation schemes around the country by the Ministry of Agriculture and Forestry.

MAF Deputy - Director-General Paul Stocks says the community irrigation fund helps rural communites make use of their water resources and adapt to climate change.

The five projects funded in this four-year cycle are in North Otago, Tasman, North Canterbury, South Canterbury, and Central Otago.

The applications for the next round of community irrigation funds have recently closed and applications are now being considered.

The importation and manufacture of herbicide M.S.M.A has been prohibited

The Environmental Risk Management Authority has prohibited the importation, manufacture and use of the herbicide methylarsinic acid or M.S.M.A.

The arsenic based agri-chemical is used outside New Zealand to control the growth paspalum and kikuyu grasses in fine turf.

ERMA’s chair on the decision-making committee, Dr Max Suckling says the risks associated with the use of arsenic and its potential toxicity to humans far outweigh any benefits.

The decision follows that of the European Union and Canada where similar approvals have recently been revoked.

High country families can breathe a sigh of relief

High country families can breathe a sigh of relief after Fish and Game’s challenge to be allowed access to their lands for hunting purposes was thrown out of court.

Donald Aubrey, Federated Farmers High Country chairman says high country folk have contributed positively to the development of rules for public access but fish and game have acted out of greed.

And Mr. Aubrey says it is only right for high country farmers to manage access to the land as they run a business and can’t have any outside influences affecting that.

Thursday 14 May

Federated Farmer’s Meat and Fibre call for collaborative industry strategy

Federated Farmer’s Meat and Fibre arm is calling on Meat and Wool New Zealand to take the lead in a collaborative industry approach, after last week’s release of the Dairy Industry Strategy…

Bruce Wills, Federated Farmers Meat & Fibre chairman, says the new dairy industry strategy should serve as a wakeup call for the red meat industry, and says now’s the time for an inclusive pan industry strategy.

Mr Wills says the Meat Industry Taskforce, which was implemented last year, failed to gather momentum due to a lack of support.

Bruce Wills says everyone in the sector wants a profitable and sustainable future, and says a comprehensive strategy is the best way to achieve this outcome.

Drought relief extended in North Canterbury

The autumn months have not halted the government announcing an extension to drought relief in North Canterbury, the Central Plateau, Taihape and Wairarapa.

Federated Farmers adverse events spokesperson Frank Brenmuhl says the current rain experienced in these parts has come too late to ensure good pasture growth before winter.

Mr. Brenmuhl says he is pleased the government has taken affirmative action before farmers really start to struggle.

Farmers in these areas can now call the 0800 DROUGHT line which matches farmers with supplementary feed with those who are likely to run out.  

Sugar solution encourages bees to collect pollen rather than nector

Plant and Food research scientist have taken to feeding bees sugar to encourage the bees collect to pollen rather than nectar.

Pollination of crops is a key feature for New Zealand’s primary sector and by coaxing the bees into collecting pollen as opposed to nectar, productivity will undoubtedly increase.

Wednesday 13 May 2009

Fonterra’s global dairy Online Auction fails to meet expectations

After last week’s delay due to technical difficulties, Fonterra’s global dairy, Online Auction’ failed to meet expectations dropping in price by four point one percent from the previous auction, to US $2,144.

Federated Farmers Dairy Chairman Lachlan McKenzie says the delay had no bearing on prices and he says the volatility in the market is caused by the economic crisis.

Mr. McKenzie says last month’s announcement that Fonterra shareholders would receive an extra 10c in their October payout also has nothing to do with the drop in auction price.

And Lachlan McKenzie says prices have already bottomed out and milk solids are due for a boom anytime soon whether it be in June or a few months down the track.

And next Month’s online auction will be held on Wednesday 3rd June.

Northland cattle might still be at risk for facial eczema

Asure Quality’s Facial Eczema programme has drawn to a close for the season but the organization says there are still some properties in the far north which may be at risk.

The cooler weather has meant the risk of facial eczema has diminished significantly, but areas in Northland where temperatures remain slightly warmer, and rain has occurred, still need to be monitored.

Farmers in this area are advised to talk with their local technician if they are unsure of their circumstances.

Beekeepers in England face new threat ..

Despite Varroa mite still ravaging England’s bee population, the country’s Beekeepers are facing a new enemy...

Thefts of Hives in many areas are being reported and experts are saying they may have been stolen to order, destined for beekeepers whose hives have failed.

The situation is so bad the price of hives has skyrocketed from around 30 pounds or 75 dollars to in excess of 200 pounds or about 500 dollars.

Tuesday 12 May

Tim Groser to reignite US trade negotiations

Trade Minister Tim Groser is set to reignite trade negotiations with the US when he meets with the new US administration later this month.

Mr Groser will cover a raft of topics, including moving the WTO Doha trade negotiations further along, and discussing a trans-pacific partnership, which aims to open up a wider trade agreement in the Asia – Pacific region.

Tim Groser says he welcomes the strong leadership that the new administration has shown, and says he looks forward to forming closer ties.

Hawke’s Bay farmers have new tool to help fight-off drought conditions

With Hawke’s Bay suffering from drought conditions for the third successive autumn, farmers in the region now have a new tool in their belt if they need any help or advice…

Two newly appointed Agricultural Recovery Facilitators, or ARF’s, who are just a phone call away.

Both ARF’s come with a wealth of knowledge in all areas of farming including feed budgeting and financial budgeting.

This new development coincides with Federated Farmers 0800 DROUGHT line resuming operations – which matches farmers with feed to sell, with farmers who need it.

Celebrity milk-off to promote Dairy Industry Awards

A celebrity milk-off is just one of the activities that will take place in Wellington’s civic square to promote the New Zealand Dairy Industry Awards which is taking place this coming weekend.

Bull Allen, Former Wellington Mayor, Mark Blumsky, and Mountain runner Melissa Moon will hand milk the cows, separate the milk and cream and then turn the cream into butter.

Monday 11 May 2009

NZ lamb and beef exports post 27% higher returns than last year

The current economic climate seems to be having little bearing on New Zealand lamb and beef exports, which have posted returns 27 percent higher in the period from October to March than this time last year.

Meat & Wool New Zealand Chairman, Mike Petersen, says the industry has been providing markets with a high end product and it is good to see it paying off for farmers.

Lamb prices have staged an amazing comeback from last year with the average farm gate price for a 19 kilogram lamb fetching 105 dollars compared with 67 dollars this time last year.

Hort NZ deems agrichemicals necessary to protect primary sector

The threat to our primary sector from pest and disease incursions is on the increase, which is why the use of agrichemicals is necessary…that’s according to Hort NZ…

Horticulture New Zealand CEO Peter Silcock says the primary sector has its fingers crossed that nothing new arrives on New Zealand’s doorstep, but in the meantime says agrichemicals are needed to control the pests which have made it inside our borders already.

Hort NZ’s message comes after the Green Party called for a limitation on the use of agrichemicals, due to the effect it can have on plants and insect species, like bees.

And Mr Silcock says our horticulture industry has enough trouble managing pests without indiscriminant removal of the tools needed to control pests and diseases.

John Key to speak at Rural Women of New Zealand conference this week

Rural Women of New Zealand are having their national conference in Wellington later this week, where they’ll hear Prime Minister John Key’s thoughts on the rural economy.

Mr. Key’s speech will build on three workshops prior to the conference led by prominent women in the rural sector such as Teresa Gattung from Wool Partners International.

Bringing the conference to a close will be the announcement of the Enterprising Rural Woman Award for 2009.

Friday 8 May 2009

Dairy Farmers asked to be stewards of the environment

Federated Farmers is thrilled at the outcome of the dairy industry strategy, which it says, provides a comprehensive and thoughtful plan for the future of New Zealand dairying….

Willy Leferink, Federated Farmers Dairy vice-chairman, says the most important factor to come out of the document is the need for farmers to be environmental stewards.

Mr. Leferink says consumer demand is also heavily focused on whether the products they eat are environmentally friendly, so it is important for farmers to recognize this.

Mr.  Leferink says there are some fantastic opportunities for the dairy industry to show how transparent, open, and accountable it is on environmental factors, and says its important to promote the industry as an attractive, vibrant and go-ahead industry.

Operations set to open for underground water delivery to Canterbury Farmers

Ashburton Lyndhurst Irrigation Ltd is set to open operations for its underground water delivery which will provide farmers on the Canterbury plains with a constant flow of water on demand, and with no pumps.

The new piped scheme will benefit farmers and the community with electricity cost savings, as well as environmental benefits a result of the new delivery system.

Ashburton Lyndhurst Irrigation Ltd chairman John Van Polanen says they have planned for the need of additional capacity and this will come into effect if farmers need it.

Meat and Wool New Zealand promote NZ lamb for successive year in Germany

Meat and Wool New Zealand have entered into their third year of promotion in Germany trying to gain enthusiasm in the country for New Zealand Lamb products.

Meat & Wool’s New Zealand General Manager for Market Development, Craig Finch, says Germany is a key market for New Zealand to develop.

Mr. Finch says another positive aspect to come out of the promotion is easing tensions surrounding imported meat into the EU, which has been a hurdle in the past.

Thursday 7 May

Proposed new tax on diesel has Federated farmers unimpressed

Federated farmers is unimpressed with the government’s latest proposal for a new tax on diesel which they say will cause a compliance nightmare.

Federated Farmers spokesman Phil York says a diesel tax would require a refund system for off-road use but because a large percentage of the fuel is not used on road farmers would have to spend copious time trying to get tax back.

Mr York says he has no idea why the government would propose this when the current system is working fine.

The government is set to respond back in June, in the meantime Federated Farmers want a guarantee  this tax will not eventuate.

Fonterra’s Global Dairy Trade postponed for a week

Fonterra’s much criticized, Global Dairy Trade, hit another stumbling block on Wednesday, when it failed to go ahead due to technical issues.

The May trading event has been postponed for a week, and will now go ahead on the 12th of May.

Fonterra’s managing director of Gloabaltrade, Kelvin Wickham, says the disruption to the event was caused by a software issue during the first two rounds of trading which couldn’t be resolved quickly.

Mr Wickham says customers were notified of the problem and subsequent postponement, and says the delay is not expected to have any adverse affect on milk powder pricing for the month.

Hawke’s Bay farmer found guilty of severe animal neglect

A Hawke’s Bay farmer, who has been found guilty of severe neglect of hundreds of animals, has been given permanent name suppression.

The farmer appeared in the Napier District Court for sentencing, after pleading guilty to ten charges of animal neglect, which involved more than one hundred animals.

Judge Geoff Rea referred to the offending as “appalling”, but on recommendation from the convicted farmer’s psychiatrist, decided that the man would face “dire” consequences to his health and well being if his name was released.

Wednesday 6 May 2009

Commodity export prices rise for second consecutive month

Commodity export prices have risen for a second consecutive month according to ANZ’s April Commodity Price Index.

Lamb prices were up six point four percent, a record high, while beef prices rose three point two percent, and wool prices rose one point three percent.

Eight of the thirteen commodities rose, with only Apples, logs and seafood declining in price.

Environment Canterbury withdraws charges against Waimate dairy farmer

Environment Canterbury has taken the unusual step of withdrawing charges brought against a Waimate dairy farmer in favour of a remedial trial process…

Mark Walter Engelbrecht was prosecuted for the unauthorized installation of a pipe to channel stock and domestic water, which in turn damaged a stream bed.

Ecan says Mr. Engelbrecht admitted his guilt very early on and therefore will avoid a criminal conviction so long as he completes the remedial process.

Ecan says this outcome is preferred as the farmer pays for the damage not just through a fine but also through learning about how his actions have affected the environment and those living in it.

Horticulture New Zealand is encouraging farmers to look after our bee population

With Bee Week in full swing, Horticulture New Zealand is encouraging farmers and growers to be vigilant when spraying agri-chemicals as they can severely affect bee productivity.

Hort NZ CEO Peter Silcock says the importance of the bee industry to New Zealand’s economy is huge, as about a third of the food we eat requires pollination.

Mr. Silcock says in many parts of the world bees are dying because their presence is overlooked, but says New Zealand farmers don’t need to be as reckless.

Monday 4 May 2009

Meat and Wool New Zealand raise concerns against Climate Change Response Act

One of the country’s top primary sector organisations is going into bat against the existing Climate Change Response Act as part of the select committee review into the Emissions Trading Scheme…

Meat and Wool New Zealand will raise its concerns in parliament about including livestock emissions in an ETS, when no other country does.
Chairman, Mike Petersen, says the current legislation would be bad for the economy and says it won’t help reduce emissions either because it would cause carbon leakage.

And Mr Petersen says any ETS would have to have an appropriately designed transitional period, with safe guard measures in place, to incorporate livestock emissions and would need a fully independent regulator.

The review of the emission trading scheme will be completed by the 11th May.

New Zealand Pork Industry Board defending quality of product

Don’t Call it Swine flu....The correct term is actually North American Influenza – that’s the message from the New Zealand Pork Industry Board who is staunchly defending the quality of its product.

NZ pork is reminding consumers New Zealand has never had a case of swine flu in pigs, and our pork IS safe to eat.

NZ Pork CEO Sam McIvor says pig farmers are well aware of the potential bio-security threats to the industry and are making sure everything is done to keep the country’s pork safe.

Organics Aotearoa call on farmers to reduce toxic agrichemical sprays

The start of ‘Bee Week’ has prompted Organics Aotearoa to call on farmers to reduce the amount of toxic agrichemical sprays which can be fatal to bees.

Organics Aotearoa CEO Dr Jon Tanner says one-third of all the food we eat requires pollination from bees, so the importance of the insect for the primary sector must not be overlooked.

Friday 1 May

NZ Pork distances product from influenza virus

New Zealand Pork is distancing its product from the influenza frenzy which is sweeping the media. The industry group says swine flu is not the correct name for the disease; its actual name is North American Influenza. This is supported  by the World Health Organisation.

Despite this, NZ Pork is asking its producers to be vigilant, and take extra bio-security precautions as the disease could be transmitted back to pigs.

CT Scanning now used on cattle

CT scanning technology has now been extended for use in the genetic improvement of large animals such as cattle.

The technique has been used for some time to identify desirable characteristics in the fat content of sheepmeat – now Massey University’s taken delivery of a machine capable of scanning large animals

Professor Hugh Blair says the new scanner will be used to measure leanness in cattle and determine their suitablility for breeding programmes…

The new scanner will be used by veterinary students as it will be an integral part of the industry in years to come.

The scanner which is the only one of its type in New Zealand is housed in a  purpose-built facility costing 1.1 million dollars.

Elders introduces traceability

Elders Wool is introducing traceability technology to track the origin of wool used in some of its carpets.

Elders says the technology developed at AgResearch in Lincoln is a further commitment by the company towards increasing returns for its growers.

The company says the new technology is a marketable asset, especially in markets like the U.S where similar initiatives ensure a premium price for the growers.

Wednesday 30 April

Reserve bank announces cut to official cash rate

The Reserve Bank has announced a further fifty point basis cut to the official cash rate, bringing it to an all time low of two point five percent.

This latest drop marks the seventh consecutive cut to the OCR in just nine months.
Reserve Bank Governor, Allan Bollard, says he expects to keep the OCR at, or below, the current level, until the latter part of 2010.

Mr Bollard says although there has been substantial monetary and fiscal policy responses worldwide to the ongoing economic crisis, he still expects adverse economic conditions to dominate throughout 2009.

The Official Cash Rate will be reviewed again in June.

New Zealand exports rise in March

March was a big month for New Zealand exports, topping four billion dollars and posting a 324 million dollar trade surplus.

Statistics New Zealand says exports were up almost 18 percent from the same period last year, and it was the first time March went over the four billion dollar barrier.

ASB economist Jane Turner says our agricultural and horticultural exports are propping up the economy at present as many other industries struggle to compete globally in challenging economic times.

Report shows South Island companies losing value

There were some surprising results contained in a report on the performance of South Island companies for the past financial year.

According to the Deloitte South Island Index more than a billion dollars was wiped off the combined market capitalization of South Island companies in the 12 months to March 31.

However, NZ Wool Services International was the strongest performing company in the South Island Index with its share price increasing by 17 percent, lifting its market capitalisation by $4.2 million.

Wednesday 29  April

Federated Farmer’s upbeat after Fonterra’s increase payout

Federated Farmer’s dairy members are upbeat after Fonterra announced a ten cent increase to their forecast payout of $5.10 on Tuesday.

Dairy Spokesman Lachlan McKenzie says the increase proves Fonterra are serious about helping out its farmer base, when it can.

Mr. Mackenzie says the payout probably reflects a lift in worldwide commodity prices and greater interest in Fonterra’s global online auction platform, Global Dairy Trade.

The announcement is unlikely to send shockwaves through the dairy industry, but Lachlan McKenzie says its good news for farmers struggling to make ends meet.

New Zealand Farming Systems Uruguay  expects to  make lost  of twenty million dollars

New Zealand Farming Systems Uruguay ‘s  almost doubled the size of the loss it expects to make for the 2008/2009 season  from  US eleven million dollar s  to twenty million dollars.

Chairman Keith Smith says the recent drought in Uruguay has significantly impacted the company’s performance resulting in lower production rates, and lower milk prices.

And Mr Smith says some of the company’s capital stock has had to be sold to prioritise available feed for its milking herd.

But it’s not all bad news for the company...with New Zealand Farming Systems Uruguay saying prices received in March lifted by US twenty cents per litre, and says they expect future prospects for the company to remain positive.

NZX set to acquire Country-wide Publications

Stock Exchange company NZX is finalising a deal to acquire rural publishing company Country- wide Publications the stable of which includes NZ Dairy Exporter and The NZ Farmers Weekly.

NZX says the deal is an opportunity to establish a long term investment in the rural sector.

Countrywide Publication Owners, Dean Williamson and Tony Leggett, will continue to manage the company once the acquisition stakes place.

Tuesday 28  April

Silver Fern Farms report six month loss of five point nine million dollars’...

Silver Fern Farms has reported a net loss of five point nine million dollars for the six months to the end of February 09, on revenues just over a billion dollars.

Silver Fern farms Chief executive Keith Cooper says while the results are disappointing, they’re not entirely unexpected given the seasonality of the meat industry.

And Mr Cooper says the results, when adjusted for timing of sales and currency mark to market, are comparable to the same time last year.

But, in amongst the results, there’s positive news for the company as well…

With SFF continuing to focus on reducing its borrowings, interest bearing debt now stands at $391.7m, down $43m from $434.6m for the same period last year.

The company also expects its year end forecast to be positive with an equity ratio sitting at 45 percent, up from 41 percent in August 2008.

Brazilian lace bug may be introduced to North Island for woolly nightshade control

The widespread invasive weed, woolly nightshade, has become such a problem in parts of the North Island that some regional councils and the Department of Conservation have asked for a foreign biological control to be introduced to curb its spread.

The lace bug,Gargaphia decoris, originally comes from Brazil and has already been introduced to South Africa for woolly nightshade control.

Herbicides do kill the plant but due to its dissemination throughout the North Island it is too hard to continually manage.

Environment Bay of Plenty says testing has proven the lace bug does not pose any risk to other native plants in New Zealand.

Government declare medium level drought in Hawke’s Bay

Dry conditions and stunted pasture growth has led the Government to declare a medium level drought in Hawke’s Bay.

Minister of Agriculture David Carter says while December and February rains brought some relief to the area, the region has received less than 60 percent of its normal rainfall since September.

David Carter says measures similar to those already in place in the Gisborne/ Wairoa region, including funding for farm management, tax assistance measures, and funding for rural support trusts, will be made available to Hawke’s Bay farmers.

Federated Farmers will also activate their 0800 drought line in the area, which helps to match farmers with feed to sell to those who need it.

Mondy 27 April

NZ Pork to ascertain threat of swine flu outbreak to pork industry

New Zealand Pork is trying to ascertain what, if any, threat the swine flu outbreak poses to the 700 million dollar pork industry.

CEO of New Zealand Pork, Sam McIvor, says they are currently in talks with the relevant authorities to find out if Swine flu can be transmitted back to pigs.

Mr. McIvor says pig farmers around the country have been told to ensure their bio-security measures are up to scratch while consultation is underway.

PGG Wrightson and Silver Fern Farms finally settle merger dispute

Rural Services provider PGG Wrightson has finally settled its dispute with New Zealand’s largest meat processing company, Silver Fern Farms, after their two hundred and twenty million dollar merger went belly up last year.

PGG will pay Silver Fern Farms a one off sum of twenty five million dollars, and ten million dollars in ordinary shares… this comes on top of the five million dollars PGG has already paid Silver Fern Farms to cover the three and a half million dollar costs it occurred during the failed deal.

PGG Wrightson Chairman, Craig Norgate, says he welcomes the settlement, and says he’s happy both companies can now put the dispute behind them and work together on future supply chain initiatives.

And after suffering recent financial trouble, Mr Norgate says the terms of the deal have been approved by its banking syndicate, and says the payout is well within the company’s capability.

Silver Fern Farms intends to remain a long term shareholder of PGG.

Rain over weekend still not enough for Gisborne/Wairoa Region

Rain towards the end of last week, and during the weekend, was not enough for drought-stricken farmers in the Gisborne/Wairoa region.

According to the Federated Farmers   Meat and Fibre Chairman for the region Wayne Gault, pasture cover is the main concern as the country heads into the coldest months.

Mr. Gault says animal welfare is now the greatest concern for the provinces farmers.
Help available to farmers includes the feds 0800 drought number, which matches farmers with available animal feed

Friday 24  April

Farm gate lamb prices get earlier than usual seasonal increase

Farm gate lamb prices have had an earlier than usual seasonal increase according to Rabobank’s latest Australia and New Zealand Agribusiness Review.

The report indicates prices have been pushed up by a decrease in supply rates, with the number of lambs going through for processing down by a whopping 2.2 million compared to the same time last year.

On the other hand cow slaughter rates are well up, with almost fifty percent more going through for processing than in the same period a year ago.

Export volumes for beef continued to fall, with seventeen percent less product shipped than in February 2008. The largest fall in export demand came from Korea, followed closely by the US.

Bovine genome set to transform dairy and beef industries

The selection and breeding of cattle throughout the world is set to be transformed with the imminent release of the bovine genome.

AgResearch scientists played a key role in the international research collaboration.
John McEwan, a senior scientist at Agresearch’s Invermay campus, says the result of the research will speed up the rate of genetic gain in both the dairy and beef industries.

A new technology called ‘SNP Chips’ was used to identify genetic variability in the bovine gene pool and is already being adopted by our leading breeding companies.

Dr. McEwan says the benefits to New Zealand’s cattle breeding industry will be huge.
Scientists from New Zealand, Australia, Canada, and the US contributed to the project along with Meat and Wool New Zealand and Dairy NZ.

One quarter of Otago’s Dairy Farmers non-compliant with environmental laws

Federated farmers are staunchly defending Otago’s dairy farmers after a story by the Otago Daily times revealed almost one quarter of the regions farmers are non-compliant with environmental laws.

David Wilson, Federated Farmers Otago dairy chairman says the number of prosecutions and fines are both down on last year’s figures.

Mr Wilson says the public needs to know that the majority of Otago’s farmers are compliant and too much focus is being placed on the ones that need to do more work.

Thursday 23 April

Drought conditions continue in Gisborne/Wairoa region

Federated farmers 0800 drought line is back up and running while the Gisborne/Wairoa region suffers from drought conditions.

Frank Brenmuhl, federated farmers adverse advents spokespokesman, says the line works by matching farmers with feed to sell, to those who need it, and says the line is free for its members to use.

The first weekly feed list will be posted on the federation’s website on Friday 24th April.

And in further news to the Wiaroa/Gisborne drought conditions, the Feds have come out fighting against a group suggesting farming in the region should be abandoned.

Frank Brenmuhl says it’s ridiculous some people are pushing a political agenda by linking localised droughts with climate change.

Mr Brenmuhl says farmers will continue to work with researchers to develop more suitable animal breeds, drought resistant pasture, and new farming practices to ensure they can continue to farm in a changing climate.

And Frank Brenmuhl says farmers in the region won’t just give up, they’ll just adapt and get better.

Nelson expected to contribute 150 million dollars in apple export earnings

Nelson is the big mover in the apple industry this year, expected to contribute 150 million of a record 500 million dollars in export earnings.

Pipfruit New Zealand chief executive Peter Beaven says the industry is hopeful it will claim returns close to the 24 dollars sixty-two cents a box growers received last year.

Our South American rivals such as Chile and Argentina have had a difficult summer, and Mr Beaven says our fruit should to do very well in export markets like Europe due to this.

Harvest in The Hawke’s Bay is now completed but the Nelson region still has two to three weeks left to go.

Third kiwi to chair WTO agricultural trade negotionations

Its official…New Zealand trade ambassador Dr David Walker has been confirmed as the new chairperson of the WTO agricultural trade negotiations…the third kiwi chair in a row.

The appointment was made at an agricultural negotiations meeting on the 22nd April.

Wednesday 22 April

Fonterra’s bakery arm ‘The Pastryhouse’ to supply McCafe’s

Fonterra’s ‘The Pastryhouse’ business is about to begin supplying McCafe’s around New Zealand and Australia.

The new deal with McDonald’s cafe arm builds upon a 25 year partnership between the two conglomerates.

The deal has prompted René Dedoncker, Global Director Fonterra Foodservices to increase production by hiring thirty new staff, and shifting to a 24 hour production cycle.

Mr. Dedoncker says the pastries are of the highest quality using 100 per cent New Zealand butter to give a superior natural flavour to our dough.

A passion for the diary industry a common thread for share milker of the year finalists

Twelve finalists have now been chosen to compete in this year’s share milker of the year competition, and it seems they’ve all got one thing in common – passion for our dairy industry.

New Zealand Dairy Industry Awards National Convenor Chris Keeping says the message which has come through strongly from this year’s entrants is the professional and financial opportunities which abound in our rural sector.

And Ms Keeping says the finalists all believe entering the competition will allow them to achieve their farming goals sooner.

The 2009 Sharemilker of the year will be announced at a gala dinner in Wellington on May 16th, and the winner will receive a prize package worth more than seventy thousand dollars.

Battle of the sexes to heat up Hamilton’s Fieldays

Calling all rural single males! The hunt for New Zealand’s most charming and skilled farmer is on, to be a part of the 2009 Fieldays Rural Bachelor of the year competition.

Entries close on the 18th of May, and just eight finalist will be chosen to undergo rigorous judging at this year’s agricultural Fieldays held at Mystery Creek in Hamilton.

This year’s competition will also involve eight female bachelorette’s in a battle of the rural sexes.

Tuesday 21 April

Wairoa and Gisborne region deemed drought affected

Agriculture Minister David Carter has officially deemed the Wairoa/Gisborne region drought- affected.

Despite overnight rain, pasture growth is severely stunted after three seasons of dry conditions, and he says farmers are in dire need of assistance.

Frank Brenmuhl from Federated Farmers says returns for sheep and beef are finally on the way up so East Coast farmers can’t afford to be let down by the weather.
And Mr Brenmuhl says events like this shows how important water storage infrastructure is to farming, and says the government needs to get the ball rolling on that front.

Periodic rain is forecast for the rest of the week, which should ease farmer tensions in the region for the time being.

PGG and Silver Fern Farms still in talks to resolve failed merger

PGG Wrightson and Silver Fern Farms have missed their mediation deadline of April 18th, but both parties say they’re still in talks to resolve their failed merger attempt.

The mediation came about after rural service provider PGG failed in its two hundred and twenty million dollar amalgamation with Silver Fern Farms last year.

PGG offered Silver Fern Farms damages totalling ten million dollars to resolve compensation claims and to cover SFF’s merger costs of three and a half million dollars, but at the time Silver Fern Farms Chief Executive Keith Cooper dismissed the offer as ‘paltry’.

But Mr Cooper says the two companies are working closely together to come to a resolution, and says they’re focussing on the same outcome.

Former High Court Judge Robert Fisher QC has been brought in by the parties to oversee the mediation process, although any mediation outcomes are not legally binding and SFF can take legal action at any time.

Maize growers to beware of aggressive grass Broomcorn Millet

Maize growers are being told to keep an eye out for Broomcorn Millet, an aggressive grass which can present serious management issues as it outgrows most crop types.

The Foundation for Arable Research or FAR say Broomcorn Millet can be identified by its hairy stem and large black seeds borne in large bushy panicles.

Monday 20 April

Rain finally on the way for Hawke’s Bay Farmers

Farmers in the Hawke’s bay will be relieved to hear rains on the way for the drought stricken region.

NIWA scientist Jim Salinger says rain is expected to reach most parts of the province, just as farmers begin to wonder whether they’ll see any before winter hits.
Wairoa Farmer Fenton Wilson says some farmers are in a really bad way, with lack of feed being their principal concern.

And Mr. Fenton says the lack of any recent rain is evident by the lake levels.
However, rain is scheduled for all of this week, and Dr Salinger the majority of the East coast should get a good dousing in the coming days.

Fonterra looks set to treble exports to China...despite Sanlu crisis

Last year’s Sanlu tainted milk crisis doesn’t look like it will prevent Fonterra from trebling its exports to China to the tune of 160,000 tonnes this year.

Chairman Henry Van der Heyden says China is opting for foreign product because of a loss of faith in local supply.

At the current auction price, the new venture will return about 630 million dollars in revenue.

Mr Van der Heyden expects the increased Chinese demand to last for about two to three years.

First school for experts in carbon footprinting

Massey University is creating the country’s first school for experts in carbon footprinting - The New Zealand Life Cycle Assessment Centre.

Life cycle analysis is the study of the environmental footprint of products across their entire life cycle, from the farm, orchard or forest through to processing, transportation, sale, consumption and disposal by the consumer.

Agriculture Minister David Carter says this is a significant step in New Zealand's bid to lead international efforts in this area, and will help position us at the cutting edge of life cycle assessment practice.

Mr Carter says our export markets need assurance that our reputation for efficient and clean production of goods is deserved.

Friday 17 April

Zespri defending decision to dump a million trays of Kiwifruit

Kiwifruit exporter Zespri is defending its decision to dump a million trays of product out of this season’s export crop

Major fruit marketer Enza has criticized the decision – claiming it had already offered alternative markets for Zespri’s surplus product.

But Zespri claims the quantity of kiwifruit destroyed is small and the dumping is part of its normal crop protection policy.

New player in dairy industry to build 100 million dollar plant in Canterbury

The development of a big new player in the dairy industry is gathering pace – with the prospect of a 100 million dollar milk powder plant being built in Canterbury in the next two years.

The New Zealand Milk Company, which has high profile directors Keith Turner and Don Brash  is  making consent applications to the relevant authorities including Environment Canterbury and Waimate District Council.

Rather than target suppliers of rival milk processing operations, NZMC will take on farmers advantage of take the Hunter Downs irrigation scheme and the North Otago Irrigation Company to convert to dairy.

About 50,000 head of cattle are needed for the plant, which could contain a drier processing eight tonnes an hour.

Most of the investment in the operation will come from farmers holding more than 80 per cent of the company - while the plant would be funded by a 50/50 mix of equity and debt, with farmers putting up 40 to 50 million dollars.

Farmers to plant forests to meet Kyoto protocol

It’s expected that more farmers will plant forests on their land under a Ministry of Agriculture and Forests scheme aimed at mitigating the country’s Kyoto protocol liabilities.

Under the Afforestation Grants Scheme nearly 3 million dollars has been dished out to create more than 14 hundred hectares of new carbon-absorbing forest over the next two years.

Grant recipients will own the new forests and can earn income from the timber – while The government takes the carbon credits and the responsibility for meeting deforestation liabilities under the Kyoto Protocol.

Thursday 16 April

Fonterra taking first steps to re-investing in China

There are reports that Fonterra is taking it’s first tentative steps to re-investing in China.

Fonterra Chairman Henry van der Heyden accompanied Prime Minister John Key and other New Zealand business leaders on a trade mission to China this week – as part of a strategy to re-invigorate the business relationship in the wake of the SanLu baby formula disaster.

At the Large Herds Association conference last week, Fonterra Chief Executive Andrew Ferrier told farmers that the co-operative would definitely return to China but in a far more cautious way.

It’s well-documented that Fonterra walked away from its 43 per cent share in SanLu after the tainted milk powder scandal last year, but the dairy giant kept a toe-hold in China with a 3000-cow dairy farm at Tangshan in Northern China.

SanLu had a 15 per cent stake in the farm – which the Chinese government seized along with the other assets of the bankrupted company.

Now, The Dominion Post newspaper is reporting that Fonterra has expressed an interest in acquiring the Chinese Government’s share of the farm – which would make it the only milk supply fully-owned by Fonterra anywhere in the world.

Federated Farmers to fight climate change legislation

Federated Farmers will go to the Select Committee reviewing the Emissions Trading Scheme next week armed with some fresh ammunition in their fight to exclude agriculture from the legislation.

Figures out this week – showing that New Zealand had fallen within it’s emissions targets under the Kyoto Protocol on Climate Change – surprised everyone.
Analysis of the figures, however, show they are an aberration caused by the 2008 drought and its effects on stock numbers.

Federated Farmers Spokesman Frank Brenmuhl says this is a cause for economic concern.

And Mr Brenmuhl says any economic growth in New Zealand will mean an increase in our liabilities under the Kyoto protocol.

Federated Farmers will recommend to the select committee that New Zealand follow Denmarks example and exclude agriculture from Climate Change legislation.

Farmers to vote on Meat & Wool investment options

More than 20,000 sheep and beef farmers now have the documents outlining Meat & Wool New Zealand's investment and funding options for the next five years.

In August, levy payers will vote on the organisation’s strategy, activities and projects – the most expensive option on the table could see levies almost double.

Over the next two months, Meat & Wool New Zealand will hold more than 50 consultation meetings around the country to explain the proposed investment options in more detail and seek farmer feedback on them.

Wednesday 15 April

Farm prices and sales continue to fall

Farm prices have continued to fall in the first quarter of the year – as has the number of sales.

The Real Estate Institute says the median sale price was 1.17 million dollars down more than half a million dollars on the same period of 2008  - and the number of sales was low with only 231 sales in the three-month period, compared to 717 in the March 2008 quarter.

There were, however, signs of life in dairy property - in the three months to March 39 dairy farms sold, up from 30 in the three months to February.

The figures appear to bear out claims that affordability is on the up in dairy property.

Healthy Hoof credited for decreased vet bills

Dairy NZ’s Healthy Hoof programme has been running for a year and is already being credited with reducing dairy farmers’ vet bills.

Healthy Hoof was developed by DairyNZ, in conjunction with leading researchers, veterinarians, industry specialists and dairy farmers. Funding was provided by New Zealand dairy farmers through the levy and the MAF Sustainable Farming Fund.

Since the programme launched in April 2008, more than 100 farm businesses have joined the scheme and close to 50 Healthy Hoof providers are delivering the programme throughout New Zealand,

Dairy NZ says lameness has many causes which differ between individual cows and farms and the solution usually involves modifying the work behaviours of farm staff, which negates the need for a visit by the vet.

Increasing water charges of up to $700 for Northland

Northland dairy farmers could be facing increases in water charges of up to $700.

The new fee is being proposed by the Northland Regional Council to cover the cost of a study of Northland’s water resources which will help manage future allocation.

The Council says there is a real risk of over-allocation and increased restrictions on water use unless it soon implements a more rigorous freshwater allocation regime.

he proposed fee is detailed in the just-released Draft Northland Community Plan , and the public has until 3pm on Friday 8 May to comment.

Tuesday 14 April

Blueberries sales remain steady despite recession

The New Zealand Blueberry season is now over, and despite the global credit crunch, local and exported fruits held their market position and sales remained steady.

Managing Director of Global Organics Russell Faulkner says because exporters have diversified into Asian markets, it has helped keep the revenue stream flowing.
Mr. Faulkner says they have seen a drop-off in sales from U.S markets but are expecting interest to return after the recession ends.

Mr. Faulkner says growers have been experiencing good weather over recent seasons and are beginning to challenge overseas markets in production.

New Zealand continues leading role in international agriculture negotiations

New Zealand’s leading role in international trade reform is set to continue.

Our ambassador to the World Trade Organisation, Dr David Walker, is expected to be elected to chair the Doha round Agricultural negotiations.

Dr Walker’s predecessor is Crawford Falconer, who will be returning to New Zealand to take up the role of Deputy Secretary at the Ministry of Foreign Affairs and Trade.
Dr Walker is the third successive New Zealander to chair the Agriculture Negotiations.

Sheep commissioned for internet advertisement

An innovation in the advertising industry could bring some extra cash for enterprising sheep farmers – that’s if the animal rights lobby don’t stand in the way - it’s called sheep-vertising.

In a video commissioned recently by Samsung for release on the internet - Welsh shepherds were hired to herd their flocks into giant animated characters on a country hillside.

Millions have watched the ad on YouTube since the video was posted – but it’s generating some controversy with the animal welfare lobby.

he use of sheep in advertising is not new - In 2006 a Dutch company draped blue blankets bearing its logo on about 150 sheep, turning the woolly flock into a walking, bleating billboard. The company paid 1 euro per sheep, but the campaign was soon banned by a local mayor.

Thursday 9 April

Imported Pork is a ticking time bomb

The New Zealand Pork industry has slated MAF’s release of provisional import health standards which will allow pig meat containing the PRRS virus to be widely distributed in New Zealand, saying the proposal is a ticking time bomb.

On Tuesday MAF Biosecurity issued provisional import standards for pig meat and meat products from North America and the EU, which included a risk analysis on porcine reproductive and respiratory syndrome, or PRRS virus, which is found in pig meat.

PRRS does not exist in New Zealand pigs, so MAF is asking our trading partners to treat meat by either approved cooking practices, or changing the PH level.

Sam McIvor, Chairman of New Zealand Pork, says if the PRRS virus does enter New Zealand boarders, there will be detrimental consequences to our pork industry.

And Mr McIvor says discussions with MAF about this issue have been ongoing for over three years, and says he holds little hope of MAF’s risk management procedures actually stopping the disease from entering the country.

The New Zealand Pork industry is worth seven hundred million dollars to our economy each year.

Fonterra partners with second largest cheese producer in Egypt…

Fonterra has just announced a partnership with Arab Dairy Products Co, which the New Zealand Dairy Giant says will be a good foundation to build our brand to a population of over eighty million people.

Amr Farghal, General Manager of Fonterra Middle East, says Arab Dairy is the second largest cheese producer in Egypt, and shares high standards from both a product and marketing perspective.

The partnership will include the manufacture, packing and marketing of Anchor triangle cheese and jar cheese and the future supply of Anchor milk powder products.

Egypt’s processed cheese market is estimated to be valued at over NZ three hundred and fifty million dollars alone.

Recession leads to a million trays of Kiwifruit being dumped

The effects of the recession on our export kiwifruit markets are becoming apparent – giving rise to an over-supply of nearly a million trays of green fruit which will have to be dumped.

Details of the dumping are outlined in a letter from the industry's export marketer, Zespri, to 3000 New Zealand growers late last month.

Zespri chief executive Lain Jager said in the letter that the alternative to dumping would be a reduction in value of about 20c a tray.

Further destruction of green fruit could not be ruled out as production volumes are forecast to rise by 5 per cent above this season's output next year.

Wednesday April 8

Environment Report reinforces the role of high country farmers.

A review on the high country tenure by the parliamentary commissioner of the environment has reinforced the role of high country farmers in shaping our national identity.

Agriculture Minister David Carter says the previous Labour government drove a wedge between high country run holders and the crown.

And Mr Carter says high country farmers are just as effective caretakers of the land as DOC or the crown.

Donald Aubrey, Federated Farmers High Country chairman, says it is great the commissioner removed a preference that land should be returned to the crown.

The report is likely to be a key document for government agencies when developing clear policy for High Country tenures.

Could High country Weeds soon be running wild?

A thousand ewes with lambs from the iconic high country St James Station have been sold at Canterbury Park  - prompting Federated Farmers to raise concerns about noxious weeds returning to the land.

The Feds say broom is a major problem in high country areas and needs to be controlled or the land will be overrun and herbicides will be needed.

Feds spokesman, Donald Aubrey, says he is shocked at DOC’s failure to recognize the importance of weed control.

However, he’s inviting DOC to consult with federated farmers so a solution can be found.

Taranaki farmers going green.

Taranaki farmers are doing their bit for the environment by recycling their bale wrap.

Gary Bedford, who’s the Taranaki Regional Council’s Director of Environment Quality, says recycling bale wrap is a far better option than the traditional methods used by farmers of burning or burying it, which he says both present environmental problems.

Since the recycling scheme was introduced in late 2007, more than fifty tonnes of the plastic wrap has been recycled.

But, Gary Bedford says the environmental problems posed by bale wrap is an extensive issue, with an estimated 320,000 kilometres of silage wrap used every year by farmers in New Zealand, enough to ‘wrap’the world eight times.

Tuesday April 7

NZ Milk eyes up new opportunities in Asia

Former national party leader Don Brash is spear heading a new dairy processing company with plans to enter the lucrative Asian market.

New Zealand Milk is currently in talks with Canterbury farmers to gauge interest in a dairy company which will have control over the production and distribution of its products, and won’t be attached to a share based co-operative model.

Tim Howe, Director of New Zealand Milk, says so far the response has been encouraging, and says the business is now looking for a south island site to build an appropriate facility.

Mr Howe says the company plans to produce skim and whole milk powder products and will focus on selling to emerging Asian markets.

Fieldays scam beat up

National Agricultural Fieldays CEO Barry Quayle says reports of a scam affecting exhibitors right to participate has been blown out of proportion.

Over a thousand exhibitors from around the world pay for a spot at the Southern Hemisphere’s largest agricultural fair, and in the past, some have found that they’ve been paying the wrong company.

Fieldays CEO Barry Quayle says in previous years a company called ‘Fair Guide’ had sent out invoices in their name and pocketed the cash.

Mr Quayle says their website contains warnings about Fairguide, so exhibitors know not to trust companies with no affiliation to Fieldays.

Mr Quayle is warning exhibitors to read their invoices thoroughly to make sure they are paying for their spot at Fieldays.

NZ Property Trust reveals 1.6 million dollar loss

Volatility in the market place has led to Hastings-based New Zealand Property Trust posting an operating loss of over one point six million dollars for the six months to December 31.

The trust says the lower milk payout, a large decrease in farm valuations, and higher farm operating costs all contributed to the half year loss.

The New Zealand Property Trust valuer, Telfer Young, says the trust’s portfolio value has decreased by more than ten percent in the last half year, and says it is now difficult for farmers to borrow cash for mortgages.

Monday March 6

Landcorp unveils half year loss

New Zealand’s largest farmer, Landcorp, has suffered a half year loss of ten and a half million dollars.

The state owned enterprise says the loss can be attributed to last year’s drought, dwindling milk process and higher farming costs.

The company has also indicated it won’t be able to achieve its previous forecast of a fifteen million dollar full year profit.

Jim Sutton, Landcorp’s chairman, says the emphasis this year will be on cost control, and concentrating on production growth and productivity.

Fonterra appoint new director of Chinese operations

Fonterra has indicated that China is still an important market for the dairy giant, with the announcement that a new managing director is set to take over the reins of its Chinese operations.

Philip Turner will take over from current managing director, Bob Major, at the end of May.

Mark Wilson, Fonterra managing director of Asia and the Middle East, says Mr Turner’s global view and understanding of the world dairy commodity environment will stand him in good stead in China’s business environment.

Big push for kiwi food research expertise

New Zealand’s leading food science organisations are banding together to help market kiwi food research expertise to the rest of the world.

Food Innovation NZ’s challenge is to entice global food giants to commission research here, and establish their own research facilities.

hairman of the Food Innovation Steering Committee Steve Maharey says collaboration between the six founding organisations, which include Massey University Plant and Food Research and Fonterra will further New Zealand’s reputation in food research.

Friday April 3

Farmers to have their say on the future of Meat and Wool

Three months of consultation for Meat and Wool levy-payers will give farmers the chance to have their say on the future of the organization.

Chairman Mike Petersen says more than sixty meetings will be held around the country to find out what  farmers think about the level of funding required by Meat and Wool, and what activities the organization should focus on.

Mr. Petersen says Meat and Wool are not setting out to force farmers into spending more of their hard earned money, but will outline how the organization can support farmers in the industry.

A meeting timetable is being sent out with the “Consultation 09” document from mid-next week.

Agricultural commodity prices rise

Agricultural commodity prices have had a good month – leading a rise in overall prices for the first time since July last year.

According to the ANZ Commodity price index beef and lamb prices were up the most during the month at 4.2% and 3.9% respectively.

Dairy prices also increased by 2.8%, the first rise in a seven month period which saw prices plummet 58% from their peak, - Even wool prices gained 3.1%

Unfortunately these gains have been largely offset by the climbing dollar – which is preventing the export sector from aiding in the country’s economic recovery.

Environment Canterbury push for RMA review

Environment Canterbury is trying to push water issues back in to the Resource Management Act review.

The government wants to urgently streamline the Act – but leave water issues on a backburner for now, but ECan’s initial submission to the RMA review deals almost entirely with water issues.

Ecan water resource manager Dr Brian Jenkins says the government’s plan to attach short time-frames to the consent process, will not work with water related issues.

Dr Jenkins says he does not believe Ecan are jumping the gun before the government asks for water submissions because water is a big concern for many farmers in the area.

Thursday April 2

Global Dairy Trade bounces back again

Fonterra’s online auction platform, Global Dairy Trade, made another recovery overnight. It’s second bounce back in a row.

The average price paid for Whole Milk Powder was US 2,235 dollars a tonne, an increase of three and half percent on the March price of 2,158 US per tonne.

Kelvin Wickham, Managing Director of Fonterra GlobalTrade, says the company is pleased with the latest result, and says the increase in price is a true reflection of what customers are prepared to currently pay.

And Mr Wickham says Fonterra is satisfied with the way Global Dairy Trade is progressing, and says the latest auction saw a marked increased in the number of customers.

And Kelvin Wickham says because Fonterra’s online platform is still relatively new, it’s constantly under review, and changes are likely to the format in the second half of the year.

Farmers could lose their rights to water

Farmers could lose their rights to water if they breach environmental conditions of their water allocations – that’s if proposed changes to the Resource Management Act go through.

Despite water issues being separated out from the Government’s review of the Resource Management Act, Environment Canterbury is urging caution on changes affecting the rules on irrigation.

ECan says it supports the new provision which allows the Environment Court to instruct that irrigation consents be reviewed when there has been a breach, and even cancelled in cases of repeat non-compliance, along with increases in infringement fines.

Ecan Chairman Sir Kerry Burke says changes to the Resource Management Act are important and should not be rushed through as future generations will not thank us if this law allows increasing nitrate or phosphorus contamination of their drinking water.

Country 99 TV wins court appeal

In a world first for court cases involving internet domain names Country 99 TV has won the right to www.country99tv.co.nz after an appeal court found no evidence of reputation or awareness in New Zealand of a UK internet channel that goes by the same name.

A three-man appeal board overturned an expert’s decision to forbid Country 99 TV from using the domain name due to its similarity to www.countrychannel.tv, the U.K version.

The appeal board stated in their decision that the U.K channel made unsubstantiated allegations that www.countrychannel.tv had a worldwide reputation in the name Country Channel, including in New Zealand.

Wednesday April 1

Nufarm doubles profits

Crop protection company Nufarm has almost doubled its half year profit to Sixty Five point two million Australian dollars, compared with the same periiod last year.
Nufarm appears to be unaffected by the economic crisis with group sales rising 25 percent to one point two-five billion.

Patrick Clement, Nufarm’s New Zealand Manager says understanding farming practices and relating to their clients has enabled them to keep growing during the recessionary times.

As a result of their half year profit, Nufarm will be paying an interim dividend of 12 cents per share.

Farmers miss out on new broadband scheme

While the rest of the country celebrates the Government’s plan to spend 1.5 billion dollars to bring high speed broadband to homes, schools and hospitals  – farmers will have to make do with last century’s copper-wire dial-up technology for the foreseeable future.

Anyone living in a town smaller than Oamaru will miss out on the new scheme.

Unveiling the plan, Communications Minister Steven Joyce said he would be making a further announcement on rural broadband, but earlier indications are that the national government will resurrect the previous government’s Broadband Investment funding scheme with a spend of around 48 million dollars on rural broadband.

Labour baffled by governments plan to limit NZ Trade and Enterprise

Labour says they’re baffled by the governments plan to include New Zealand Trade and Enterprise in a cap on public servants.

Trade and Enterprise will get no replacement, or additional staff, for a three year period, and Labour’s Trade Spokeswoman Maryan Street says this is a ridiculous proposal during recessionary times.

Mrs. Street says New Zealand products are well thought of around the world, and considering the turbulent economic times, we must look to build on this, via free trade deals, and open up new markets.

Tuesday March 31

Novartis launch a new anthelmintic drench

For the first time in more than a quarter of a century, sheep farmers have a new weapon in their war against drench-resistant parasitic worms
Novartis Animal Health has just launched a new anthelmintic drench, called Zolvix, which boasts an efficacy rate of more than 99 per cent on all types of nematodes found in sheep.

Arthur Redpath - the Global Marketing Manager for Zolvix told agricultural journalists that the worldwide launch in Queenstown was the culmination of a nine year project which included extensive surveys of the issues that concerned sheepfarmers the most...

Mr Redpath says the new product won’t spell the ultimate end of drench resistance in parasites – but it will go a long way to solving the problem for the next few years at least...

Leading parasitologist Professor Bill Pomroy says it’s important the new product is integrated with the existing anthelmintic products.
The launch of the new drench is accompanied by a new delivery system – which includes a new style of gun and backpack.

Sanlu Chariwoman lost appeal against life sentence

Former Sanlu Chairwoman Tian Wenhua has lost her appeal against the life sentence handed down to her in January.

Sixty Six year old Wenhua was convicted of manufacturing and selling melamine contaminated milk products which caused the deaths of at least Chinese six babies, and affected nearly 300,000 others.

Wenhua claimed in her appeal that she was only acting on a directive given to her from a Fonterra appointed board member.

Fonterra, which had a forty three percent stake in the now defunct company, says it was made absolutely clear to Wenhua that no amount of melamine was acceptable in Sanlu’s milk products.

Feds warn government over access to high country stations

Federated Farmers are warning the government about the precedent that would be set if Fish and Game gets a high court ruling to allow access on leased high country stations.

The Feds High Country Spokesman Donald Aubrey says the crown land lease tenure review process could be impacted if the High court rules in favour of Fish and Game.

ish and Game are arguing the two groups can co-exist peacefully, but Federated Farmers say Fish and Game have enough land for recreational purposes already.

Monday March 30

Fonterra denies plans to release new bonds

Dairy Giant Fonterra has denied reports it plans to release a new retail bond issue in the New Zealand marketplace.

Fonterra has released a statement saying the company has not traditionally raised funds in the NZ retail market, and says while the domestic retail bond market is now a considered option, along with other overseas alternatives, there aren’t any immediate plans for the company to pursue this option.

The statement comes after Chief Executive Andrew Ferrier told an interviewer the company was encouraged by the result of February’s eight hundred million dollar corporate bond sale, and indicated Fonterra would consider another New Zealand bond issue.

Malborough farmers ask for help restricting rabbit numbers

Meanwhile, High country farmers in Malborough are asking the government for help in restricting rabbit numbers, as gains made to eradicate the pest in the late nineties, start to dwindle.

Donald Aubrey, Federated Farmers pest animal management spokesperson says the resurgence of rabbits will threaten New Zealand’s productivity and environment if it is not dealt with soon.

Mr Aubrey says the gains made by introducing Rabbit Haemorrhage Disease can’t be overstated, and landowners must be supported by government in the fight.
Federated Farmers are calling for the establishment of a board to manage the rabbit problem which can assist landowners in coming up with the best methods for eradication.

Record numbers attend South Island Field Days

And it seems the recession failed to dampen this year’s South Island Field days.
Numbers are in, and nearly twenty five thousand people attended this year’s event, well up on 2007 figures, where less than twenty thousand people attended.

David James, chairman of the South Island Agricultural field days, says the response to the event has been heartening, and says there’s obviously still confidence in the rural sector despite the tough economic climate.

Friday March 27

Rise in value of dairy products boosts exports

Meanwhile, Dairy exports provided the only bright spot in an otherwise grim Current Account Deficit from 2008.

The country spent 16.1 billion dollars more than it earned last year and our net international debt increased 14 per cent to $156.3b at the end of 2008.

But exports of goods actually increased $507m in the latest quarter, mainly due to a rise in the value of dairy products, with prices up 5.8 per cent while volumes also increased.

High country farmers under pressure over public access to crown land

High country farmers are coming under more pressured with the fish and game council arguing in the High Court for more public access to Crown lease farmland.

Fish and game believes there is room for peaceful co-existence between recreational users and farmers, without interfering with farming operations.

Donald Aubrey, Federated farmers high country spokesman says there are already plenty of areas to use for recreational purposes. Mr Aubrey says it is unfeasible to have people traipsing through what is effectively rented property.

Meanwhile a decision is expected on the tenure review of high country leases soon, Mr Aubrey is hopeful of a positive result.

Northland aquaculture gets a boost

The government is getting behind an investigation of the potential of at least 19 new aquaculture sites in Northland.

The Ministries of the Environment and Fisheries will undertake research to identify some of the best locations for aquaculture on the basis of their productive potential.
The aquaculture industry aims to be a billion dollar export earner by 2025 and the government says this initiative will help to achieve that goal.

Thursday March 26

Environmental groups are upset with MAF over security of plant experiments

Environmental groups are not satisfied with MAF bio-security attempts to contain contamination from Genetically Engineered Brasica experiments at Plant and Food’s Lincoln research facility.

The experiments were shut down when the modified plants were found to be flowering and MAF later declared that no genetic material had escaped from the site. But Soil & Health spokesperson Steffan Browning says MAF Biosecurity New Zealand undercooked their investigation for contamination.

Mr Browning says assuming wind would blow pollen only 2 metres and bees would not pollinate more than 100 meters away from the site is absurd, and something more must be done.

Soil and Health says Plant and Food, MAF and ERMA need to take New Zealand’s stance on Genetic modification seriously, or risk a huge loss of revenue from our overseas markets.

Danes exempts agriculture from ETS

New Zealand farmers are no longer alone in their fight to have agriculture taken out of the Kyoto protocol on gas emissions.

According to Federated Farmers the Danish government has abandoned proposals to levy an emissions tax on Danish farm animals.
Negotiators are meeting in Germany next week to begin the process of updating the Kyoto protocol.

Fed Farmers president Don Nicholson says the Danish move will help the case for excluding farm animal emissions from a potential successor to the Kyoto Treaty.

Carbon foot print not so big?

A visiting Welsh scientist says the jury is still out on whether New Zealand produce sold in Europe has a bigger carbon footprint than local product.

Gareth Edwards-Jones from Bangor University, who is on a speaking tour of New Zealand, says distance that food travels to market is largely irrelevant. He says other factors - such as how food is grown, processed, transported and even cooked - play a far greater part in determining the energy used.

Irrespective of the outcome of the food miles debate, Mr Edwards-Jones does not think New Zealand food exports are under threat.

He says New Zealand has a positive image, good technical farmers and good processes, and most produce is being exported by ship which is has a much lower carbon footprint than air-freighted goods.

Tuesday March 24

New Zealand’s reputation could be damaged by live sheep trading

There’s concern our animal welfare reputation could be irrevocably damaged in important markets like Europe if New Zealand resumes live sheep trading…

A majority Saudi-owned Napier stud company has been breeding sheep for live export as part of the Hajj festival.

Bridget Vercoe, from the World Society for the Protection of Animals, says live export of animals is one of the greatest causes of animal suffering.

Ms Vercoe says New Zealand’s custom’s exports prohibition order has been cited as an example for other countries to follow, and she says our government has been applauded for its stance on the issue.

New Zealand’s exports of livestock for slaughter are prohibited unless approved case by case by the Director General of MAF.

Kiwifruit season shaping up to be one of the best

The 2009 Kiwifruit season has begun almost two weeks earlier than last year, and Zespri are confident the season is shaping up to be one of the best yet Zespri CEO Lain Jager, says the quality of this year’s harvest is second to none, with good sized fruit and excellent taste characteristics.

Zespri are also set to save on shipping costs to Asian Markets by sharing with late-season squash and to European markets by using larger vessels, to shift more product.

Mr Jager says consumer demand continues to rise for both Zespri Gold and Zespri Green varieties, he expects to increase production by a further ten million trays in the next two years.

World Champion Wool handler has been named sportsperson of the year

World Champion Wool handler Sheree Alabaster has been named Wanganui sportsperson of the year stopping a clean sweep of rugby honours for the province.
Alabaster says it is great that wool handling is finally getting the exposure it deserves, as New Zealand has a wealth of talent in the discipline.

Despite her world champion status, Alabaster is yet to win a competition on the New Zealand circuit.

owever, Alabaster is unfazed by this saying that because New Zealand wool-handlers are the best, every competition feels like a world cup.

23 March 2009

Dairy Farm hit with big fine over effluent discharge

A Central Hawke’s Bay dairy farm convicted of discharging effluent into a nearby waterway has been fined 20 thousand dollars.

Stockade Pastoral Farms in Waipawa defended the charge, saying farm managers and workers had ignored instructions to be vigilant concerning effluent discharge.

District Court Judge Thompson made it clear to Stockade Pastoral Farms that merely telling workers was not enough, and indicated larger fines would be a prospect for future offences of this kind.

Hawke’s Bay Regional Council Manager of Environmental Regulation, Darryl Lew, says regional council’s are taking a tougher stance on poor effluent disposal, and it’s good to see the courts have a similar understanding.

Field days could be a gauge of economic climate

This week’s South Island Field days could be a gauge of how New Zealand’s farming economy is holding up during the current economic climate.

The three day event usually attracts around 25 thousand people keen to see the latest in farming technologies on offer.

Organising Committee Chairman David James says the comparative demonstrations are a must-see for farmers as it’s an opportunity to see how the product works before they buy it.

Mr James says because almost two-thirds of our export economy comes from the farming sector, Field days will show how our economy is fairing.

He hopes a record number of exhibitors will attract a record crowd.

Possible job losses at Summit Wool Spinners

New Zealand’s largest independent wool spinner, Summit Wool Spinners Ltd is holding discussion meetings with its workforce following a major downturn in international orders.

315 staff, and two unions, are in talks about restructuring, and possible job losses at the Oamaru-based plant.

A director of the Oamaru based company, Ricky Hammond – Tooke, says the severity of the downturn is beyond anyone’s experience in the wool-spinning industry.

Mr Tooke says the company cut shifts at the plant last November, from 12 hours to 10 hours, but says even with the reduced shift hours, production capacity far exceeded the current level of orders.

Ricky Hammond-Tooke says the company will be in a position to advise employees of any final decisions in the next few weeks.

Summit Wool Spinners is owned by Japanese corporation, Sumitomo, and supplies yarn to carpet and rug-makers in New Zealand, Australia, South East Asia and the USA.

20 March 2009

Farmers reject Feds NAIT proposal

Federated farmers opposition to the National Animal Tracing Scheme has been rejected by farmers who voted to continue using levies to support industry research and development after last week’s Meat and Wool NZ AGM. 

Meat and Wool Chairman Mr. Petersen says, Federated Farmers have their own reservations concerning NAIT but Meat and Wool levy payers recognize the need for future proofing the industry via an animal tracing scheme.

Members have also asked Meat and Wool for a break-down of how wool levies have been spent since the board’s inception seven years ago.

Mr. Petersen says this measure is no surprise considering the turmoil in the industry at present.

Mr. Petersen says the major wool companies in New Zealand still need to take responsibility for their part in the state of wool prices.

Dairy industry has its say on legislation

The dairy industry, as a whole, is being given a rare opportunity to have its say on legislation determining which processing companies Fonterra is legally obliged to supply.

Kaimai Cheese Company and the Grate Kiwi Cheese Company claim they fit the definition of “independent processor” under the Dairy Industry Restructuring Act – and as such, are entitled to milk from Fonterra.

The Commerce Commission is considering the case and - after releasing a draft determination last year in favour of the two small companies - has decided it needs more input from the dairy industry before it can deliver an interpretation of the Act.

Consultation papers and the dispute background are available on the Commerce Commission website and submissions can be made up to the 17th of April.

Silver Fern Farm CEO appointed to Meat and Wool Board

CEO of Silver Fern Farms Keith Cooper has been appointed to the board of Meat and Wool replacing Alliance Group Chairman, Owen Poole.

Mr. Cooper says it is important to have representatives like himself on the board so the industry is always in touch with the commercial sector.

Chairman of Meat & Wool New Zealand, Mike Petersen says Mr. Cooper is a welcome addition to the board as he brings extensive knowledge from his position as CEO of New Zealand’s Largest Meat Company.

Mr. Cooper says Meat and Wool New Zealand is a crucial body for New Zealand farmers, and he is honoured to represent them.

19 March 2009

PGG Wrightson won’t stop moving forward

Rural Service provide PGG Wrightson has had a tumultuous six months, what with the failed merger with meat processing company Silver Fern Farms, and February’s posting of a thirty two million dollars loss for the six months to December.

But, Tim Miles, chief executive of PGG Wrightson, says the now defunct merger with SFF won’t stop PGG Wrightson moving forward, and potentially getting involved in the meat processing industry in the future.

Mr Miles says the reason behind the SFF merger was because PGG Wrightson saw a need for change to our processing industry, and says the company wanted to help hasten that transformation.

He also says the acrimony reported in the media between PGG Wrightson and SFF is simply untrue, and says it’s been completely blown up.

Dairy NZ are calling for submissions

Dairy NZ are calling for final submissions on its draft strategy for New Zealand Dairy Farming.

In collaboration with many industry partners, Dairy NZ wants as much feedback on the strategy as possible before publishing the draft.

Dairy NZ Chairman John Luxton says feedback on key areas like environmental pressures, climate change and rising costs will help dairy NZ to put together a strategy to help all farmers in New Zealand.

All submissions must be received by the 6th of April, after which the strategy will be available on Dairy NZ’s website.

The Feds are upset at fast tracked electricity projects

Federated farmers are upset at the governments draft policy statement which they say could mean farmers are ‘railroaded’ to fast track electricity projects.

President of Federated Farmers Don Nicolson says these projects are being flagged by the government as ‘minor investments’ because they will cost less than 20 million dollars, although many will directly impact farming communities.

Mr Nicolson says State owned enterprise Transpower and federated farmers do have regular correspondence, but says in this case they don’t seem to be listening.