Waiting three to five years for the cash will be too long for many struggling woolgrowers, says Federated Farmers Meat and Fibre chairman Bruce Wills, commenting on Wool Partners International’s recent roadshow. Farmers heard from WPI’s US and European marketing managers on efforts to grow demand for strong wools and the direction of international markets reports Rural News.

Wills says he “supports the WPI concept and many other farmers left the meetings with more confidence and optimism. But appalling wool prices now are forcing many growers towards deciding to move out,” he says. “Farmers were saying ‘It sounds good, but how long to the money?’ Eyes were rolling at the answer ‘three-five years’. Many can’t wait that long despite their goodwill towards WPI chief executive Iain Abercrombie and his team.“We understand you can’t create a brand overnight but some growers are desperate… three-five years seems half a lifetime. And if prices don’t pick up soon, when WPI says ‘Now where’s your wool?’ they’ll hear only… silence.”

(more…)

Baird McConnon is standing by business partner Craig Norgate despite the failure of Rural Portfolio Investments costing his family more than $60 million reports The NZ Herald. Rural Portfolio Investments was set up in 2003 as a joint venture between Norgate and Otago’s McConnon family with the aim of investing in Wrightson – later merged with Pyne Gould Guinness to form PGG Wrightson – and as a vehicle for other agribusiness investments.

Trustees Executors this week appointed receivers to the secured assets of Rural Portfolio Investments and its financing arm Rural Portfolio Capital. Norgate yesterday confirmed that an initial investment of $40 million in the group, followed by $19 million in April last year and a further $1.2 million – a total of $60.2 million – had come from the McConnon family.

(more…)

The global outlook for dairy demand is strong but NZ dairy farmers must shore up their businesses against likely future volatility in returns, says Fonterra Chairman Sir Henry van der Heyden.“Our future as dairy farmers in NZ, our international competitiveness and this country’s future – it all depends on how we respond to the more volatile markets and ensure we make the most of our unique advantage in pastoral dairy farming.”

Speaking at DairyNZ’s Towards 2020 farmers’ forum today, Sir Henry said “Our farmers need tools in their businesses to manage this risk and to focus on our strength – growing grass and turning it into milk. This is where we lead the world. Our ability to grow grass and turn it into milk more efficiently than anyone else is our point of difference. We simply cannot afford to lose our edge or the control of our productive resources. This is where we need to focus. Then we will have a strong dairy farming legacy to pass on to our children and grandchildren – future generations of NZ dairy farmers.”

(more…)

Dairy prices have remained steady overnight on Fonterra’s monthly online-dairy auction. Fonterra is now publishing a dairy price index, which shows the percentage change in the average price of a “basket of products’ traded on its internet auction platform. This was down 0.8 per cent after last night’s trading reports The NZ Herald.

The new index, known as the “gDT-TWI” (globalDairyTrade Trade Weighted Index) takes changes in the online auction price and weights them based on total international dairy product trade flows. Paul Grave, globalDairyTrade Manager said the index was a good headline number for the state of the market.

(more…)

Seven recipients of $35,000 Nuffield farming scholarships will present their findings at a four-day conference to be staged in Gisborne from May 13 reports The ODT. Nuffield trust chairman Stuart Wright said the biennial conference will mark the 60th year of the scholarships. “A thirst for knowledge and absolute enthusiasm for the agricultural industry are … driving NZ’s Nuffield scholars,” he said.

The research papers will be delivered for the first time at a marae, Rukupo, the Maori Battalion marae at Manutuke, on the outskirts of Gisborne. The marae is in the home town of one of the scholars, Gregg Pardoe, operations manager for Maori farming incorporation Arai Matawai in Gisborne, who studied how indigenous peoples in the United States have adapted to modern farming practices.

(more…)

Banks are being accused of profiteering from cash-strapped farmers stricken by the drought reports the Waikato Times. But one rural banker says people need to talk to them first about their problems. Hauraki Mayor John Tregidga, whose district has had no significant rain since January, said he knew of three or four farms that were under threat because of the drought.

Mr Tregidga said BNZ had told one unnamed couple, whose farm had lost $80,000 last year and had been hit by the drought, to prepare to sell in December. “The bank is willing to continue the finance while they receive a rate of 9.2 per cent,” Mr Tregidga said, reading from a statement supplied by the couple’s accountant. “Current floating BNZ rates were at around 5.35 per cent with capped fixed rates for two years at 7.545 per cent. These levels of interest would save between $80,850 and $34,650 in annual interest at these prevailing rates, enough to at least make it a viable farm in this last season, even with the drought.”

(more…)

Saudi families hungry for NZ -style gourmet burgers have been so enthusiastic in their turnouts that they have to wait in their cars until a security guard advises they can enter, says the NZ BurgerFuel franchise’s Kiwi founder and business development manager Chris Mason.  He said the listed company’s 150-seat, 300 square metre fast food restaurant at Damman, failed to factor in the size of a typical Saudi family group, which can be up to 15 reports Business Day.

“One Thursday night, which is like our Saturday night, we did the equivalent of the average NZ store’s weekly turnover,” Mr Mason said. Friday in Saudi Arabia is the religious equivalent of NZ’s Sunday. In accordance with Saudi culture, the outlet has a separate entrance and dining area for male diners without family members.  A 280sqm outlet is about to open in the United Arab Emirates tourist resort Dubai. Mr Mason said more than 20 more outlets were planned in Saudi Arabia.

(more…)

A Southland meat plant is under investigation amid union claims 12 staff have lost 13 fingers while using bandsaws in the past 18 months reports The Southland Times. Otago-Southland Meat Workers Union secretary Gary Davis said one of those workers returned to work after losing a finger, was put back on the saws and lost another finger.The operators of the South Pacific Meats Awarua Plant denied there had been so many amputations.

However, Labour Department southern regional manager Sheila McBreen-Kerr said the organisation had investigated about 20 incidents involving serious harm during the past two years at the Talleys-owned South Pacific Meats plant, at Awarua between Invercargill and Bluff. “Many of these involved bandsaws, ie, the amputation of fingers, or parts of fingers, and serious lacerations to fingers and hands,” Ms McBreen said.

(more…)

We trained them in the belief they would take up careers as agricultural scientists helping keep the NZ farmer out in front. So, where have they gone? There was a time when we farmers looked to scientists to give us the edge on our overseas competitors and that’s exactly what they did. Research stations such as Invermay led the world in every aspect of farming – from deer, molybdenum to biogas, our scientists were there reports Rural News.

We are talking the late 1970s and the mid-1980s,an era when research results were passed onto farmers with encouragement to try them out. There were farm advisory officers whose mission was to help farmers understand and use the research. Agricultural science leaders such as Dr Jock Allison believed getting research results out to farmers was just as important as the results. To his mind it was crazy leaving them on the shelf.

(more…)

Elders Rural Holdings Ltd. relies on its battling Australian parent for financial support and may have to sell assets if that support is withdrawn, notes to the NZ company’s accounts say. Adelaide-based Elders Ltd., which owns 50% of rural services group Elders Rural, has pledged 12 months’ support, according to notes to the NZ firm’s accounts. That support makes up for a forecast shortage of cash flow at Elders Rural, which posted a net loss of $8.98 million in the 15 months to Sept. 30, the second straight loss reports Scoop. Elders Australia made an unsecured $63.6 million advance to Elders Rural in the latest period, charging 7.25% interest.

Elders Rural is launching its Just Shorn branded wool into the U.S. market, one of several initiatives to squeeze more margin out of the fibre in a divided industry that has walked away from research as returns dwindle. Rival Wool Partners International, which has Theresa Gattung as chairwoman, owns the Laneve mark. Both groups are inking supply deals with U.S. manufacturers.

(more…)