March Issue 14-09 - Federation of Māori Authorities

Volume 14, No. 9 March 5 - 11, 2014
A weekly
summary of
all that’s news
in the
primary
industries
© Copyright 2014 Inventas Media Ltd
cussing a media application to view the court file. A
minute issued last month by Justice Brown recorded
that Fonterra had filed an application for stay of the
proceedings on February 20. (NZ Herald)
AGRIBUSINESS
SFL Deal Done
Shanghai Pengxin now has a majority interest in about
12,000 ha of NZ dairy farms after getting approval to
buy Synlait Farms. It has a 74% holding in SFL Holdings, formed along with Synlait Farms founders Juliet
Maclean and John Penno, who own the other 26%. The
board of Synlait Farms has advised that SFL had
received all approvals, consents and orders necessary
from each of the Chinese Municipal Development and
Reform Commission, the Foreign Trade and Economic
Relations Commission and the State Administration
of Foreign Currency in China. (Fairfax NZ News)
Dairy Prices Dip
Global dairy prices have fallen for the second consecutive time in the latest online auction. The GDT Price
Index dropped 4%, with an average selling price of
$US4794 per tonne. More milk was sold, with volumes
up 18.8% and more than 41,000 tonnes sold. The price
of whole milk powder fell 5.7% and skim milk powder
fell 3.9% but the trend of price rises in value-added
products such as cheddar and butter continued. Despite the latest fall, the average selling price is 13.7%
higher than the $US4216 per tonne of a year ago, which
was near the peak of a drought when prices spiked.
(RNZ News)
Fonterra Applies for Stay Of Proceedings
Fonterra is applying for a suspension of the court
action it is facing from Danone over last year’s botulism scare. Lawyers for Danone and Fonterra appeared
in the High Court before Justice Brendan Brown dis-
Sections:
Agribusiness
Issue 14-09
ISSN No.2230–651X
Zee Tags In Merger With Swiss
Swiss company Datamars, a large global supplier of
RFID-based solutions (radio frequency ID), is joining
forces with Auckland-based Zee Tags. Zee Tags was
founded as an eartag company by Mike Gardner in the
early 1980s. Seen as participants in a complementary
merger, both companies are leading players in different
aspects of the fast-growing livestock identification sector worldwide. Their interests also extend to companion animal ID and textile ID. (AgBrief Staff Report)
CPW Construction Starts
Construction of Central Plains Water’s $140 million first
stage starts this week. The $375 million scheme has been
touted as the largest irrigation construction project in
the South Island. The Rakaia to Waimakariri river canal
scheme will eventually run 56 km, but initially stage one
will run from the Rakaia for about 17km. A Fulton
Hogan-John Holland joint venture and Downer Group
have been named as the lead contractors by CPW Ltd.
Stage one would include building a 17km-long headrace
canal and 130 km-long pipe distribution network. From
edge to edge, including side roads, the canal project
would be about 40m wide. Contractors will move 1.9
million cu m of earth for the headrace and canal, including 377,000 cu m of topsoil. The contractors would also
need to install 550,000 square metres, or 55 hectares, of
HDPE liner to prevent leakage from the canal. Contrac-
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Trade
Soil, Land, Water, Arable
Livestock
Horticulture
Industry
Forestry
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tors will also build 13 bridges each spanning about 25m.
(Fairfax NZ News)
Landcorp Sticking to Forecast
Although farms right through the North Island are
drying off, Landcorp is sticking to a $35 million profit
forecast for the full year with some pastures looking
“pretty barren” with little rain recently. However,
favourable growing conditions and record milk prices
meant it made a $12.2 million profit in the December
half-year, up from just $2.5m in the same period a
year before. Chairman Bill Baylis said the company
came through last summer’s drought - the worst for
70 years - “in good shape”. (AgBrief Staff Report)
Brierley Buys Into Allied
Ron Brierley has acquired 2.87% of Allied Farmers,
making him the fifth largest investor in the company.
He holds about 3 million shares, according to a Companies Office filing. That’s worth about $133,000 based on
Allied’s most recent stock price of 4.4 cents. (NBR)
Dairy Prices Put Weight On CPI
The CPI has risen 0.9% to a new high that is 22% above
its level a year ago. Export commodity prices continued
to put on weight last month, led by cheese up 7% to a sixyear high. The largest export destination for cheese,
Japan, accounted for just 22% of the $1.4 billion worth of
cheese NZ exported in the year ended January 2014.
Butter prices rose 6% to their highest level for two years.
Log prices continued their strong run, rising another 2%
last month to a 20-year high. Skim milk powder, beef,
pelts, casein, lamb and lumber were the other commodities to record rises. Wool led the declines, dropping 3% to a six-month low. Whole milk powder and
seafood eased slightly. (NZ Herald)
Tissue Factory Expands
A $60 million expansion of the SCA Kawerau Tissue
Facility marks a new era for the iconic Bay of Plenty
facility. The expansion includes a new 14,500 squaremetre tissue conversion hall, a 50 metre long state-ofthe-art ‘wide-winding’ machine, and robotised packing and dispatch. These investments increase production of tissue products at the site by the equivalent of 22 forty-foot containers each week. This follows the company’s investment in converting the
site’s electricity-driven turbines to geothermal steam
in 2009, contributing to a 45% reduction in annual
C02 emissions. (Friday Offcuts)
Bigger Growth In Milk Supply Expected
Fonterra anticipates bigger growth in milk supply
this season. Dry conditions not as bad as last year’s
drought, and the incentive of a higher forecast
farmgate payout could push volumes to rise 7.5% to
1.57 million kg of milksolids in the 2013/14 season.
Based on the forecast payout to farmers of $8.65 per
kgMS, that implies Fonterra will pay some $13.61
billion to source local milk in the season. Fonterra’s
NZ-sourced milk costs were $8.64 billion in the year
ended July 31, 2013, when it paid $5.84 per kgMS to
farmers. It collected 151 million kgMS in February
compared to 137 million kgMS a year earlier when
the North Island was in the grip of the worst drought
in seven decades. Total collection in the season to
date is up 4.9% to 1.27 million kgMS. Fonterra’s
board has kept the increase in the forecast payout 70
cents lower than it would be using for calculations
from the regulated milk price manual, due to a production mismatch where the price of whole and skim
milk powder surged ahead of higher margin products such as cheese and butter. (NBR)
NZ Too Reliant On Dairy
More than a third of New Zealanders think the country is too reliant on the dairy industry, and the
industry’s poor performance is affecting our global
reputation and brand. Among the survey’s other
findings are: 31% say the growth of dairying and
intensification has gone too far, only 19% believed
the country should continue to grow dairy farming,
31% of people said they would be much less likely to
vote for a political party that introduced policies
promoting economic growth without being clear on
how the party would protect the environment, 70%
say the expansion of dairy farming has made water
quality worse than it was 20 years ago, 73% say dairy
companies should take responsibility for the performance of their contracted suppliers, 62% say regional councils are conflicted by having responsibility for protecting waterways and for promoting largescale irrigation schemes. (Fairfax NZ News)
Big Penalties Under New Safety Laws
Company directors and managers could face up to five
years in prison and a $3 million fine for recklessly
endangering workers under proposed new health and
safety laws designed to clean up the country’s poor
workplace safety record, particularly in the mining and
the forestry industries. Boards and senior officers will
no longer be exempt from ensuring their workers are
safe. Under the law, Workplace New Zealand would be
able to issue infringement notices to businesses without
formal warnings. The bill is expected to come into force
in April 2015. (RNZ News)
Wool Equities De-listing
Wool Equities will de-list from the small-cap NZ Alternative Market, and has suspended share trading. The
company decided it would be better to spend listing fee
funds on direct communications with its 9500 shareholders, and with limited trading on the bourse, its
value was questionable, said chairman Clifford Heath.
Once it leaves the stock exchange, the company will
manage its share register internally and offer a platform
to allow investors to sell their holdings. (NBR)
Manufacturing Booming
Manufacturing boomed in the December quarter, as
meat and dairy manufacturing production volumes
jumped 15%. Actual monthly milk and meat-slaughter
figures showed a small decline in production in the last
three months of 2013, according to ASB economists, but
the total volume of manufacturing sales jumped a record
5.7% in the December quarter. (Fairfax NZ News)
Bilodeau Retiring
Ballance AgriNutrients CEO Larry Bilodeau is retiring in six months’ time after 17 years with the cooperative, 14 of them as chief executive. Ballance
would undertake a global search for his replacement.
(AgBrief Staff Report)
Back a Page
Page 2
McKay To Head AssureQuality
John McKay will be the new CEO of AssureQuality.
He is currently CEO of Hansells Food Group and has
extensive international business experience in Asia,
Latin America and Europe, including the role of
Global Brands Director for Fonterra, based in Singapore and Marketing Manager (Europe) for American
Express. ␣ (AgBrief Staff Report)
PRICE TRENDS
V O L U M E 14
No . 9
AVERAGE EXPORT MEAT SCHEDULE PRICES
This week, ending March 14, 2014 (last week’s in brackets)
Bryant Leaving ITO
Primary ITO CEO Kevin Bryant is leaving the industry
training organisation after 15 years at the helm. He will
remain until a replacement is found. (AgBrief Staff
Report).
TRADE
Milk Powder To Be Destroyed
Fonterra is destroying 130 tonnes of milk powder in
Sri Lanka worth more than $700,000. The milk powder had been held since last year when there were Sri
Lankan concerns about possible contamination by
the fertiliser aid DCD. The powder is nearing its
expiry date and destroying it is in accordance with
normal procedure and in line with regulations within
Sri Lanka. (Fairfax NZ News)
Agricultural Counsellor for Dubai
A specialist NZ agricultural counsellor will be stationed
in Dubai to cover key markets in the Middle East and
seek to advance trade and economic relationships. The
position will also contribute to NZ’s strategy to develop
strong government and private sector relationships
with the Gulf Co-operation Council. (Fairfax NZ News)
LIVESTOCK
Lamb($)
North Is.
South Is.
Southl’d
(Incl 1kg pelt)
13.0kg YL
42.47 (43.35) 41.43 (41.43) 41.43 (41.43)
15.0kg YM
79.45 (80.46) 77.82 (77.82) 77.82 (77.82)
17.5kg YX
93.33 (94.80) 92.39 (92.39) 92.39 (92.39)
19.0kg YX
101.38 (102.97) 99.58 (99.58) 99.58 (99.58)
21.0kg YX
112.11 (113.86) 109.16 (109.16) 109.16 (109.16)
PELT 1.0kg Shorn 1.25 (1.25)
6.72 (6.72)
6.72 (6.72)
MUTTON (0.5kg pelt)
21kg MX1 ($) 64.69 (65.74) 67.88 (68.32) 67.88 (68.32)
BEEF (c/kg)
P2 Steer(296-320kg) 398 (404)
386 (389)
386 (389)
Bull (296-320kg)
373 (379)
379 (384)
379 (384)
VENISON
AP 60kg $/kg(gross) 6.13 (6.15)
6.20 (6.23)
6.20 (6.23)
Based on announced schedules with levies & charges deducted, and
premiums included. For a valid comparison between the Islands, take
off $1.50 in Lamb and 8c/kg in Beef & 20c/kg in deer from the South,
because North Island companies pay all freight.
AVERAGE EXPORT DAIRY PRODUCT PRICES
Last week, ending
March 7, 2014
Fonterra predicted payout
$/kg Milksolids
Butter (NZ$/Tonne)
Skim milk Powder
Wholemilk Powder
Cheddar
Casein
4 weeks
ago
3 months
ago
8.75
8.40
8.62
5720
5970
5720
6070
13390
5690
6180
6140
6240
14050
4990
5880
6210
5780
13630
Prices above are indicative only. They are compiled from an assessment
of sales made worldwide on a one-off or “spot” basis in US$. Quota
market sales and contracts are excluded. The prices are converted to
NZ$/tonne FOB using current exchange rates.
Back Yard Chicken Business Shut Down
A South Auckland farmer who processed chicken
carcasses in his blood-spattered, fly-ridden garage
has been sentenced to 175 hours’ community work
after pleading guilty to 16 charges under the Animal
Products Act. MPI asked Judge John Bergseng to fine
him $50,000 but because he had given up the farm
and was now being paid only $450 a week as a chef,
the judge declined to impose a fine. The man bought
the Flat Bush business in July 2012 and advertised his
fresh and frozen chickens in Mandarin-language
newspapers. (Fairfax NZ News)
Farmer Jailed For Cruelty
A lifestyle block farmer has been jailed for four months
for bashing two pigs with a heavy steel bar in a prolonged and violent attack in front of an upset teenage
boy. The court was told a group of pigs were reluctant
to board a trailer. The farmer became increasingly angry
with the pigs as “they were not listening” and his
attacks on the pigs became more intense. The farmer
continued to attack the pigs over 30 minutes and told
one of the boys who had been helping with the loading:
“Now it’s your turn to do it.” (NZ Herald)
Page 3
MAIN OVERSEAS MARKETS AND CURRENCY
Last week, ending
March 7, 2014
UK PM Lamb (pence/lb)
US Bull Beef (US c/lb)
206
222
US Dollar (for NZ$1)
0.848
Aust Dollar (for NZ$1)
0.933
UK Pound (for NZ$1)
0.507
Euro (for NZ$1)
0.612 0.
INTEREST
90 Day Bill Rate (%)
3.00
2 Year Swap Rate (%)
3.91
5 Year Swap Rate (%)
4.54
NEW ZEALAND WOOL PRICES
WOOL PRO Wool Prices
Fine (21 microns)
1380
Medium (29 microns)
710
Coarse (35 microns)
490
2nd Shear(37 microns)
488
Lamb (31 micron-75mm)
510
WHEAT
ASW NZ$/tonne
410
4 weeks
ago
3 months
ago
197
206
195
209
0.826
0.921
0.506
608
0.825
0.923
0.505
0.600
2.89
3.88
4.58
2.71
3.79
4.63
1380
710
490
482
515
1380
705
530
520
530
400
395
Presented in association with Agrifax
Lochern Top Ram
Lochern 234-07 is the master when it comes to prolific
breeding. The perendale stud ram, bred and owned by
Alan and Annette Williamson from Ida Valley, has been
selected as a link ram for BLNZ’s Central Progeny Test,
which aims to help sheep farmers identify the best
genetics across sheep breeds. The ram’s selection required about 1500 straws of semen to be collected,
which would be used in all five trial sites throughout
NZ over the next four years. The ram has already been
widely used, with about 1000 progeny on the ground, so
he is arguably one of the most prolific breeding rams in
NZ. The first trial Lochern 234 was in was a meat-yield
trial undertaken by the Perendale Sheep Society of NZ,
which he topped in its first year. (Otago Daily Times)
Glammies to Gisborne
Gisborne farmers Fraser and Sara Briant, of Gisborne
with their coopworth lamb have won the grand champion title at the Glammies. The 158 entries were put
through scientific measurements of tenderness, succulence and colour before the final tasting. The grand
champion retailer title went to Progressive Enterprises (Countdown), North Island with their dorset/
romdale processed at Silver Fern Farms Takapau.
(Fairfax NZ News)
HORTICULTURE
G3 Pumps New Blood Into Industry
The previously unheralded kiwifruit variety G3 is at the
centre of soaring new confidence in the industry. The
optimism generated by G3 has translated into prices for
kiwifruit orchards doubling in the space of 12 months,
with buyers queuing up to buy quality properties.
Zespri’s Simon Limmer said more than 4000ha of G3
has been grafted or planted, with the Hort 16A gold
variety, crippled by Psa, now virtually gone from Te
Puke orchards. He said the industry had the capacity to
produce 50 to 60 million trays of G3 kiwifruit by 2018,
depending on productivity rates. He expects the balance between the gold and green varieties will become
a lot more even than before – probably around 50/50.
PGG Wrightson’s Stan Robb said the sale of a Paengaroa
orchard with G3 just before Christmas had opened the
floodgates. In the past two weeks he had sold five
orchards, of which two were a mix of green and gold. “A
year ago, you couldn’t give orchards away.” (Bay of
Plenty Times)
NZ Wines Top Sydney Competition
Trinity Hill Gimblett Gravels Chardonnay 2012 is the
overall winner of the Sydney International Wine
Competition. Runner-up was Villa Maria Single Vineyard Southern Clays Pinot Noir 2010, which was also
best red. (RNZ News)
T&G Smiling
A second straight season of favourable apple-growing
conditions is making Turners & Growers smile. It will
ship 90,000 tonnes of ENZA apples to markets in Asia,
Europe, Britain and North America during the next
eight months. Rosstan Mazey said the weather had
played its part, with good-sized, attractive fruit from
the key growing regions of Nelson and Hawke’s Bay.
T&G has upgraded some of its plants and introduced
new technology, with a new packhouse packing line
facility and some controlled atmosphere rooms at its
Whakatu site, just out of Hastings, he said. (RNZ News)
Constellation Buys More Land
American wine company Constellation has bought 57.58
hectares in Blind River to expand its vineyards and
winery business .The vendor was Ecoagman Ltd, a
company owned by Zambians Penelope and Simon
Brown. (Fairfax NZ News)
Tomato Pest Control Under Consideration
Tomato growers want to import macrolophus
pygmaeus to control hothouse pests, but it is a danger to NZ plants and other insects, according to
critics. EPA is now considering the request and submissions opposing the introduction of the bug. Growers say it will feed on a wide range of greenhouse
pests including whitefly, mites, thrips, aphids and
leafroller, and say the bugs are considered effective
as a bio-control in hothouses overseas. But the bugs,
which have a particular fondness for white butterfly
eggs, larvae, pupa and adults, also suck the juice out
of plants. Growers are looking for more biological
controls, as consumers demand lower pesticide use
in commercial production worldwide, but still perfect-looking fruit. Pests are also developing resistance to insecticides. (Fairfax NZ News)
SOIL, WATER, LAND, ARABLE
Ealing Pastures May Break Records
Ealing Pastures, formerly part-owned by Allan and
Jean Hubbard, is expected to smash farm-price records
when it goes to auction with no reserve. It is 1284
hectares, milking 3200 cows and producing 1,332,069kg
of milksolids annually. It has two rotary dairy sheds,
one 70-bail and one 80-bail, and its own run-off block,
making it almost self-sufficient. The Court of Appeal
last year estimated the property to be worth approximately $60 million, with the stock and plant expected to
add another $10 million to the price tag. The farm is
being sold by order of the High Court to dissolve the
remaining partnership, and sell the land at public auction with no reserve. The buyer must also buy the stock
and plant at market valuation. (Otago Daily Times)
Environment Minefield For Politicians
Dairy perception research shows there is a risk to any
political party introducing policies promoting economic
growth if they cannot guarantee safeguards to protect
the environment, says Fish & Game NZ’s Bryce Johnson.
“Of particular interest was the strong overall support
(73%) for requiring dairy companies to take formal
responsibility for the environmental performance of
their contracted suppliers - currently not the case, with
the struggling role falling to regional councils funded
by ordinary ratepayers.” The results would shock many
in the agriculture sector where the long-held presumption has been that farming enjoys the popular support of
the wider public, he said. (Fairfax NZ News)
Page 4
Farmers Taking Water Illegally
Up to a dozen farmers in Southland’s Five Rivers area
have continued to take water from rivers and streams
despite their Lawful Existing Use rights expiring in
2001, according to Environment Southland’s Stephen
West who says this is putting trout habitats at risk and
undermining future farm planning. Though the RMA
allows farmers to take water for stock to drink, they
were not allowed to take it for other purposes. He said
landowners of many years ago had diverted water from
the rivers and streams to their farms and the practice has
carried on through the generations. The process of
getting all the farms to comply with the rules is complicated because the records are in some cases more than
100 years old. An Environment Southland staff member
began gathering information on the unconsented taking of water several years ago, but did not get far due to
the complexity of the issue, he said. “The issue has
become more evident as development increases. It’s not
something we’ve forgotten about.” Federated Farmers’
David Cooper said there needed to be an open discussion between the farmers and the regional council on
the issue. (Fairfax NZ News)
Breeding Project Sheep For Sale
A 13-year breeding project to develop low-maintenance
sheep will come to a close with the sale of two research
flocks. AgResearch’s Dr David Scobie and his team
have been investigating easy-care and wool shedding
sheep. The 300 sheep are now surplus to requirements
at the Winchmore Research Farm. The project began in
1997 when the cost of growing wool was expected to
exceed the value of wool grown. Challenges were set to
develop wool-less sheep and low-maintenance sheep.
The wiltshires weaned 118% lambs per ewe mated at a
weaning weight of 30.6 kg last year. Only one lamb was
flystruck of 1984 lambs weaned over a decade at
Winchmore. The aim of the project had been to look for
cheaper ways to farm with low-maintenance and easycare sheep. He will now pursue other projects looking at
breeding to reduce fibre diameter for the NZ Merino
Company and researching shiny sheep with lustrous
wool. (Fairfax NZ News)
Waikato Drying Out
Waikato fruit and vegetable growers are suffering with
bone-dry soils and intense heat – although not as badly
hit as the region’s dairy farmers who are taking the first
steps toward asking the Government to declare another
drought. Apple grower Martin Reid said soil temperatures are drier now than at the same time last year. “If I
get no rain for two weeks, then possibly a third of my
blocks are really going to be down in fruit size.” But
some other producers – like those growing onions, or
tomatoes in hothouses – have benefited from the fine
weather with early harvests. (Fairfax NZ News)
Arable Farmers Dodging Weather
Arable harvesting came to a halt as rain swept through
the vital Canterbury region after a good run of wheat
cutting. Pockets of wheat and clover seed crops remain to be harvested as well as late rye grass crops
before farmers turn their heads to vegetable seed
from now to next month. Federated Farmers’ David
Clark said many farmers were dealing with a difficult harvest because of cool, easterly conditions and
rain, albeit at lower levels than northern and central
Canterbury. Many wheat and barley crops were
brought in at marginal moisture levels. Milling wheat
quality appeared to be excellent, but milling and feed
wheat yields were pretty average, he said. “The
yields have ranged from awful to average compared
with normal seasons. We have had two exceptional
harvests in a row in Canterbury, but we certainly
haven’t been three in a row. That’s not a grumble – it’s
the nature of farming.” The flipside to average grain
yields is that the amount of unsold grain on the
market will be dramatically reduced. Stored grain
has overhung the market since 2009 with the surpluses running through to the next season after sales,
but should be emptied by this season’s average yield
and strong demand from dairy farmers wanting to
maximise milk production during a high payout.
“It’s been a sod of a year right from the start when it
was raining in May and June, wind storms in September and October, drought and extreme heat in September and this easterly harvest.” Average yields for
irrigated wheat are expected to be about 10 tonnes a
hectare, down from 12t/ha normally. Average barley yields range from 6.5t/ha to 8.5t/ha. Vining peas
for processing were an absolute disaster, he said.
Dairying is a major income source for arable farmers
providing feed grain, kale and fodder beet crops and
dairy grazing options. But the estimated 50 or 60
dairy conversions, including on arable land, this
season would need the same number of farms to
support them. (Fairfax NZ News)
Seed Crops Make Or Break
The approaching harvesting of specialty seed crops
will be a make or break stage for farmers because of
their high value. Modern ryegrass had to be removed
in February instead of the month before and this had
compressed harvesting into the grain harvest as late
flowering varieties were more popular with pastoral
farmers, said Federated Farmers’ David Clark.
(Fairfax NZ News)
Reducing Fertiliser Is Reducing Cadmium
Reducing fertiliser used on farms is a way of
combatting the growing concentration of cadmium
in the soil, according to Massey’s Mike Joy. Cadmium – a carcinogen – accumulates in soil as a result
of the prolonged use of superphosphate, and he says
areas that have been intensively farmed for a long
time, such as Waikato and Taranaki, have high concentrations of it. The only way to prevent the problem from becoming worse is to stop putting superphosphate on farms. Part of the reason the rising level
of cadmium has gone unnoticed by the industry is
that it does not pass through into milk but stays in the
livers and kidneys of cows. (RNZ News)
INDUSTRY
Milk Price Might Have Spinoffs
Sheep and beef farms may get some spinoff from the
record dairy price announced by Fonterra, according
to AgResearch’s Tom Fraser. There could be more
Page 5
grazing of heifers as dairy farmers used their farms
for milking cows only, and sheep & beef and cropping farmers might be paid more for crops such as
maize, which dairy farmers used. He said the payout
could put pressure on sheep and beef farms for
conversions to dairying and he thought farmers would
milk cows for as long as possible to reap the rewards
of the record milk price. (Fairfax NZ News)
Roar Brings Danger
Hawke’s Bay station owners are preparing for the
potentially dangerous side of the annual stag roar
with poachers’ illegal hunting. “There is a very real
danger to the landowners,” said Senior Constable
Pete Gimblett. “They treat it as open slather - they
think it is their right to go onto someone else’s property to shoot deer.” The poachers, who often strike at
night, appear oblivious to the danger they pose to
others, and are unlikely to be put off while the justice
system was so light on them in terms of penalties, he
said. While poaching incidents do increase at this
time of the year, Christmas had been bad as illegal
hunters cashed in on the black market for venison
and other meat. (Hawkes Bay Today)
Managing Resources Feildays Theme
The Fieldays 2014 premier feature theme is Managing
Resources for a Competitive Advantage and will highlight areas in which NZ’s agricultural sector can
optimise, maximise and develop systems and processes to help manage resources effectively and maintain our place among the world’s best._ The 2014
Joint Premier Feature Partners are PGG Wrightson
and Xero. (AgBrief Staff Report)
Costs Killing Embyro Exports
Compliance costs are killing the farmed animal embryo and semen export trade, and threaten to close
the only licensed facility for embryo export left in the
South Island. Advanced Genetics has successfully
exported embryos to China, Australia, Canada, Denmark, UK, Germany, the US, Uruguay and Argentina, where they have several large joint venture
breeding programmes. Since an EU audit of the
germplasm sector in 2007, NZ authorities have steadily ramped up compliance costs for germplasm exporters, which has directly resulted in a corresponding decline in the number of smaller operators. EU
auditors returned in 2012 and again took issue with
what they perceived were compliance failures. Advanced Genetics’ Neil Sanderson said MPI failings
were again at the forefront and no significant issues
were identified with embryo exports whatsoever. He
said the auditors themselves made many mistakes
because they misread requirements, which was frustrating for the industry and these essentially remained unchallenged by MPI. “One of the problems
we have with the EU is that with all the countries we
deal with we have written agreements (known as an
Overseas Market Access Requirement or OMAR)
that set out conditions for the export of anything,
including embryos and semen. In addition to that,
the EU has its own requirements written into law that
sits behind the OMAR agreements and require a legal
expert to separate,” he said. Many of these legal
requirements are outdated and not scientifically or
risk-based. “It should be simple to export embryos
but we are striking more and more silly, unnecessary
things that are driving the cost of compliance up
tremendously against the value of the product we are
exporting.” In 2007 compliance costs were between
$5 and $10 for a single embryo, or less than 10% of the
$200 cost of production. Last year compliance costs
escalated to $100 for each embryo, or about 50% of the
cost of producing them. “It means it is no longer
worth accepting orders or looking for export work
because there’s just no profit in it,” he said. MPI said
it did not set the costs for the independent verification agencies’ compliance audits, which were set by
agencies approved by MPI. (Fairfax NZ News)
Rural Jobs For Southland Youth
Agricultural opportunities could be the answer to
Southland youth unemployment. Venture Southland’s
Rhiannon Suter said research showed there were many
different pathways for young people to begin careers in
agriculture, and this complicated the process for them.
There had been concern about negative perceptions
associated with agriculture, but this was disproved,
and it was found young people saw agriculture in a
positive light. Work experience and familiarity with the
industry, particularly in urban areas, was more of a
concern, with more emphasis needed on that aspect, she
said. Young people also needed more practical opportunities and advice before their career choices and agriculture issues should be taught to non-farming students. A plan to move forward includes creating a
strategy and finding funds to implement it, she said.
Rural Contractors’ Brian Hughes and David Kean said
there were more jobs in the region than experienced
machinery operators to fill them. Some contractors
brought in overseas workers to do the seasonal work
instead. (Fairfax NZ News)
PrimePort Recovering
Agricultural growth in South Canterbury and ongoing developments at PrimePort Timaru have attracted
a multinational feedstock company to establish a
presence in the region. It is another sign of the port’s
recovery from the withdrawal of Maersk and Hamburg Sud and their container services. The replacement service by MSC container shipping service, and
more recently following an alliance between Port
Tauranga and PrimePort, is working well. CEO
Jeremy Boys is upbeat about the growth and the
symbiotic relationship with agriculture considered
the ‘bedrock of the region’, although the port administrators are mindful of the environmental pressures
farmers now face around public expectations and the
importance of water in so far as these factors underpin port business. (Fairfax NZ News)
CO2 Trap Impresses
A C02-powered pest trap that has matched 1080 poison
in wiping out entire rat populations has impressed
DOC, which has described the Kiwi-built A24 trap as a
significant step toward better trapping solutions. The
self-resetting traps, already used by DOC in sites around
the country, were recently trialed at Onepu in Te Urewera
and Boundary Stream northwest of Napier, completely
annihilating surrounding rat populations. The unprec-
Page 6
edented results contrasted with results at nearby comparison sites, where rat populations continued to thrive.
The traps can kill up to 24 rats before the CO2 canisters
need replacing. (NZ Herald)
Once Were All Blacks …
No longer are dairy farmers the fit and trim cream of the
All Blacks – instead, they’re overweight and stressed
with high cholesterol, blood sugar and blood pressure.
A DairyNZ health-screening programme with the NZ
Institute of Rural Health over the last four years has
checked 2500 people working on dairy farms. “Most
farmers carry more weight than they should, have high
blood pressure and high cholesterol, and are at significant risk of cardiovascular disease,” said NZIRH’s Brent
Nielsen. As farms become bigger and as farming more
mechanised, farmers are doing less strenuous work and
less exercise. “They have workers instead of doing the
work themselves and they’re sitting on their quad bikes
instead of walking. Around a third of the dairy farmers
screened had results he described as alarming. The
median body mass index was 30.1, which was obese and
higher than in the general population. One-third of
those screened had cholesterol levels needing referral to
their doctors, half had high or moderately high blood
pressure and 5% had high blood sugar levels, he said.
The questionnaire showed farmers were more stressed
than they admitted. Typically, they are worried about
relationships with the people they worked with, debt,
drought, the welfare of their animals and whether they
had enough feed, he said. (Fairfax NZ News)
Farming As Important As Retail
Nearby farmers and rural businesses are putting
about $.2.2 billion into the Christchurch economy –
about 10% of the city’s total GDP, and the same
amount as the retail sector. Lincoln University research shows sheep and beef farmers directly spent
more than $80m a year, mixed-cropping farmers
more than $76m and dairy farmers $68m. Only farmers from Selwyn and Waimakariri districts were assessed in the research, which took into account the
spending patterns of rural businesses serving the
farm households, and employment generated from
the spending. Professor Caroline Saunders said she
sits on committees in town and hears that
Christchurch isn’t connected to the plains. “Well, it
is. We haven’t done the Ashburton district or all of
Canterbury by any stretch of the imagination, and we
didn’t include food processing, which is obviously
connected.” The survey also did not include the
economic contributions from the Hurunui district.
The sheep and beef farmer spend was more because
their numbers were larger, at 53% of farmers in
Selwyn and Waimakariri districts, compared with
17% for dairy farmers, she said. However, dairy
farmers spend more per capita in the city – about
$150,000 on average, against $57,000 from sheep and
beef farmers. About 26% of direct farm and household spending was in Christchurch, averaging $82,313
a farm for a total of $306m. Another $511m of spending comes from rural businesses, for a combined
$817m, and the total impact from direct and indirect
spending is estimated at $2.2b. The most farmer
spending in the city was for fertiliser and lime ($101m)
and repairs and maintenance ($29m). Other spending was tracked for recreation, culture and electron-
ics, education, doctors and other medical services,
food and beverages, personal care, home maintenance and retail trade. Rural businesses spent the
most for goods and services in the food manufacturing sector at $84m, other manufacturing $76m and
the business service sector $63m. (Fairfax NZ News)
Landcorp Cutting Back On New Dairy
Landcorp is cutting back on new investment in the dairy
sector, and aiming for productivity gains on existing
operations and managing dairy farms for others. There
are no plans to sell off dairy farms. The half-year report
showed that revenues from milk in the six months were
worth $74.8m, well up from $47.3m in the same period
a year ago. That reflected a 3.5% or so lift in dairy
production, extra income from the Crafar farms, and a
higher milk payout. In contrast to the big lift in dairy
revenues, livestock revenues slipped slightly to $40m,
from $43.8m previously. That reflected a lower number
of trading stock being carried over winter, with less feed
available after last summer’s drought. Despite assets of
more than $1.7 billion and conservative liabilities of just
under $350m, there is no appetite to become more
highly geared by borrowing more to invest, said CEO
Steven Carden. The half-year result included a $95m
gain on livestock values, which reflected high values
because of a rising dairy payout and would go down
when the payout fell. (Fairfax NZ News)
Aged Gouda Top Cheese
An aged Akaroa-made gouda has won the Champion of Champions title at the NZ cheese awards. It
is the first time Barry’s Bay Traditional Cheese Company has won the top award, although it has received
gold medals in the past. Another Dutch-style cheese
– Very Old Edam produced by Mahoe Farmhouse
Cheese – won the Cuisine Champion Artisan Cheese
Award for smaller producers for the third year running. Jeanne Van Kuyk of Aroha Organic Goat Cheese
won the Milk Test NZ Champion Cheesemaker
Award. Her company also took out the Tuatara Brewing Champion Goat Cheese Award for its Aroha Raw
Milk Rich Plain cheese. Over 430 NZ specialty cheeses
were entered in this year’s competition. Kapiti cheeses
scooped up more Champion awards than any other
brand, taking home four major trophies. Kapiti
Kikorangi once again proved New Zealanders’ affection towards blue cheese, claiming the New World
Champion Favourite Cheese Award (voted for by the
public) for the third year running. Dairyworks marked
its introduction to the awards with a win for its
Dairyworks Kids Range in the Caspak Champion
Cheese Packaging Award. (AgBrief Staff Report)
Dairy Farmers Use $252m Of Electricity
New Zealand’s 12,000 dairy farms use $251 million of
electricity a year – 7% of the nation’s total use. Electricity contributes about 15c to the cost of every kg of
milk solids produced so EECA is offering subsidies
to have heat recovery technology installed in dairy
sheds. Heat generated during the milk-chilling process is harnessed and used elsewhere. EECA’s heat
recovery research shows dairy sheds reduced electricity use by around a fifth after having the equip-
Page 7
ment installed. It will pay for itself in less than three
years. There are 37 farms taking part in the current
programme, with EECA offering advice as well as
funding. Efficiency moves also included variable
speed drives and vat insulation. More farmers are
being encouraged to join by applying for up to 40% of
the cost of changes until June 30. (Otago Daily Times)
Cautious Optimism In Deer Industry
While the deer industry is not quite in the heady days
of helicopters in driveways, the velvet market is
better and there is no reason to think it is not going to
keep trundling along quite happily, according to
DINZ CEO Dan Coup. He is cautiously optimistic
about the venison industry, particularly regarding
the European main markets. Opportunities opening
up in Asia contribute to that optimism. While the
national herd is declining and there is competition
from Spanish and Polish feral deer coming on to the
market, the northern European markets remains positive. He wants to see the industry move away from its
five-to-seven-year cyclic nature, and increase product differentiation away from poorer quality product
competition. (Otago Daily Times)
Far North Wilting
The Far North is so dry pastures are at permanent
wilting point, and for many farmers there’s no pasture at all, according to DairyNZ’s Kylie Harnett.
Cow condition is beginning to deteriorate on some
farms, and the ever-increasing price of palm kernel
isn’t helping matters. (RNZ News)
Red Meat Summit Wanted
MIE wants an urgent industry summit to address a
crisis confronting the sheep and beef sector as it is
squeezed out by dairying. Stud breeders are reporting
demand for rams was down by up to 50% this year.
Land conversions to dairy farming, especially in the
South Island, were eroding traditional sheep and beef
land at a rate of about 6 to 7% a year. MIE chairman John
McCarthy said it was not in the national interest to turn
NZ into a giant dairy farm. (Fairfax NZ News)
Dairy Website Popular
A website that focuses on creating good communication skills and employer-employee relationships is receiving about 4000 hits a month. DairyNZ-developed
PeopleSmart website, specifically for Kiwi dairy farmers, is rapidly becoming a popular source of information with its expanding audience. It offers practical
advice and information about employment, legal obligations and managing staff. Launched in 2012, the
website’s traffic has increased by 300% and is continuing to rise, she says. A series of quick-start booklets are
another tool that has been released to farmers, including a recruitment kit and productivity kit. Almost 10,000
have been printed. (Hawkes Bay Today)
© Copyright 2014
Inventas Media Ltd
FORESTRY
ETS Changes Allow Transparency
Changes to the Emissions Trading Scheme will allow
for greater transparency, according to Associate
Agriculutre Minister Jo Goodhew. “From April,
buyers and sellers of carbon units will be able to see
where the unit has come from, so they know how the
unit was generated. NZ units can be either generated
by forests registered in the ETS, or the Permanent
Forest Sink Initiative (non-harvest forests). Or, they
can be allocated by the Government to eligible sectors to reduce the impact of the ETS rules. By giving
greater transparency over how the units were generated, the Government is allowing buyers to decide if
one is worth more than another. For example, some
registered forests have added environmental benefits, or could be regenerating native forest.” (Friday
Offcuts)
Ngai Tahu Buys West Coast Forest
Ngai Tahu has bought nearly 23,000ha of pine trees
from the Crown’s West Coast Timberlands forest. The
trees sit on land already owned and operated by the
tribe’s subsidiary, Ngai Tahu Forest Estates. Associate
Primary Industries Minister Jo Goodhew says existing
supply agreements with timber processing mills will
continue. Ngai Tahu expects harvesting to increase by
10%, with the deal expected to be completed by the end
of April. (RNZ News)
Southern Tree Harvest To Double
Hundreds of extra forestry workers will be needed in
Southland and Otago in coming years to harvest the
1990s planting. Currently about 40 skilled forestry gangs
in Southland and Otago chop down mature radiata pine
trees and load them onto trucks, but at least 80 gangs will
be required in coming years. The harvest is expected to
double by the 2020s, with the increase in volume set to
begin in 2016. (Fairfax NZ News)
Export Prices Attracting Logs
Export prices at the wharf gate are continuing to
increase, which is drawing big increases in log supply. Export volumes in 2013 were up 21% year-onyear, to 16.5 million m3. Prices for February were up
to NZ$125/tonne for A-grade at the wharf gate in
Tauranga, and the high end of the spread has reached
$140/tonne. Average prices for NZ exports are up 46% for export logs this month, the biggest rise since
April last year. This is a record price level for A-grade
exports, and the highest prices for K-grade logs since
AgBrief is published 48 times a year by Inventas Media Limited, PO Box 10-320, Wellington.
Ground Level , 15 Edward St, Wellington, New Zealand.
Telephone +64-4- 472-9791, fax +64-4-472-9616, email: [email protected]
Subscription Application Service: 04-472 9791
Page 8
1994. The value of logs exported from NZ in 2013 was
the highest ever for a full year. This was contributed
to by both a record volume of logs being exported,
and near to record prices sustained throughout the
whole year. Demand from China is the single biggest
driving force of this increase. The value of logs exported rose by NZ$777 million to NZ$2.35 billion,
with average export log prices increasing 24%. Log
exports contributed 46% of the total export value
from forestry, up from 35% in 2012 and 20% five years
ago. Exports to China made up 73% of the value of
NZ’s log exports. (Friday Offcuts)
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