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.”

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Fed Farmers commends Fonterra for raising its forecast milk price by 40 cents per kilogram of milk solids, but is warning that this rise must be kept in context. “Although this sounds like a lot of money and we’re very pleased by the announcement, we need to keep the actual monetary value of this announcement in perspective,” says Lachlan McKenzie, Fed Farmers Dairy chairperson.

“With around half of NZ’s dairy herds in drought declared areas, milk production is down significantly. So although those farmers might be getting a higher payout, they’re also producing less. “Most farmers will be using this extra payout to help get them through what has been a difficult season. Many farmers throughout NZ have had to dry their cows off early due to the drought and will have had to buy in feed to keep their cows in good condition.

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Federated Farmers welcomes KPMG’s Agribusiness Agenda but observes that details affecting farming on an individual farm scale has been missed, due to a macro overview. “We welcome KPMG’s statement that ‘farm businesses must be viable and profitable if farmers and growers are to continue to invest’, but this is another strategic helicopter overview,” says Lachlan McKenzie, Federated Farmers associate spokesperson for water.

“KPMG confirms what Federated Farmers and other business leaders have repeatedly said, the Emissions Trading Scheme (ETS) will increase volatility and costs on agribusinesses. “Persevering with the ETS will see it become an efficiency transfer scheme from NZ to the lower cost producers KPMG identifies. “Yet KPMG pushes the ‘clean green “golden goose”‘ message, which is at odds with recent research, done for NZ  Trade and Enterprise (NZTE) in the United States. “We know Americans don’t respond to ‘clean green’ or ‘sustainability’ but do respond to quality, local craftsmanship and community responsibility.  Telling that story to our end consumers is what we need, instead of a hollow but lofty sounding slogan.

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Real estate agents not establishing the credibility of purchasers is a major hole being highlighted by Federated Farmers. This follows reports a $150 million ‘deal’ for 28 Southland farms has collapsed. “When a simple Google search revealed a convicted Australian criminal was associated with the people fronting this deal, you can see why Fed Farmers was more than sceptical,” says David Rose, Federated Farmers rural security spokesperson.

“There were a number of red flags associated with the supposed purchaser too. It included reported claims from late last year that the Northland hapu involved had genealogical connections to its Arab partner ‘that went back to biblical times’. “While Federated Farmers backs moves to bring professional standards of conduct to the real estate industry, a failure to do some cursory checks is of concern.

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M&WNZ and Federated Farmers are joining forces to support wool industry rescue efforts. The two organisations will work together to advocate for farmer interests to improve the fortunes of the strong wool industry, Federated Farmers Meat & Fibre Chairman, Bruce Wills, and M&WNZ Chairman, Mike Petersen, have said.

The collaboration comes as the loss of the wool levy is about to take effect (April 2010) and follows the recommendations of the Wool Industry Taskforce. “Both our organisations are supportive of the taskforce process and its recommendations and we are pleased to see support for our long-held views on the need for targeted marketing and promotion of wool and woollen products,” said Mike Petersen.

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A new welfare code for dairy cattle has been criticised by Federated Farmers for “confusing legal requirements with best recommended practices” reports The NZ Herald. Federated Farmers Dairy vice chairperson John Bluett says he is worried the new code could mean farmers are punished if the way they farm does not meet the recommendations.

The latest Animal Welfare (Dairy Cattle) Code of Welfare 2010 released last week consolidates a range of already existing documents. “It’ll be fine if it’s used as a training guide for stockmanship, then it would help, ” said Bluett.

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In the lead feature of the latest edition of the National Farming Review, currently being posted to Federation members, Fed Farmers has laid down the gauntlet to anti-1080 groups. “1080 works but the growing mythology about it doesn’t,” says Don Nicolson, President .

“The article in the summer edition of the National Farming Review was independently written by ecological journalist Dave Hansford. He makes it very clear that unless we want to kiss our economy and native fauna and flora goodbye, then 1080 is the tool to use. “Most importantly, he debunks the lies, half-truths and pseudo science used by 1080 opponents. It seems they are forced into making ever more outrageous claims, so by putting the facts forward, we have given our members the resources to counter with fact reports Scoop.

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While the international recession has impacted growth of agricultural wages and salaries, the 2010 Federated Farmers/Rabobank Farm Employee Remuneration Report shows farm workers are still considerably better off than their urban counterparts. Agricultural wages and salaries seem to reflect the roller coaster year that employers have faced,” says Don Nicolson, President of Federated Farmers. “Working on a farm remains a top-paying choice in what is truly, the world’s biggest industry.  I’d seriously encourage anyone looking for a personally and professionally fulfilling career to go farming.

“At $48,388 per annum, the total package value (TPV) for the average farm worker was $5,227 more than the average personal (mean) annual wage and salary income.  Clearly you’re much better off on-farm than in a factory.  More so as managerial positions paying north of $80,000 are available. “Agricultural wages and salaries have kept touch with the prevailing rate of inflation, which has been 2 percent over the period we measure.  But that said, the TPV did increase at twice that rate.  I still feel that our workers have tightened their belts every bit as much as we have as employers.

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NAIT – asset or liability?

The National Animal Identification and Tracing (NAIT) Scheme has been given approval to proceed by Cabinet. The scheme has been promoted on the basis of two key criteria. The first is increased biosecurity effectiveness, but initially covering only cattle and deer. The second being market access for NZ beef and venison products.

Federated Farmers does not endorse this second and, seemingly, final business case or its presentation to Cabinet reports Scoop. While it’s acknowledged that during the design and consultation period, the concerns of Federated Farmers and its membership were recognised and some key issues addressed, the final business case document fails to provide sufficient confidence that real on-farm value will be generated as a result of NAIT. Moreover, at a time when farmers are just recovering financially, this will add an additional cost and compliance burden alongside the Emissions Trading Scheme and early proposals for a Land Tax. The 2009 Ministry of Agriculture & Forestry’s Situation and Outlook for New Zealand Agriculture & Forestry had farms receiving just 6.3 cents out of each export dollar generated.

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The group said changing NZ’s tax-base could lead to lowering both income and company tax. Federated Farmers’ Rangitikei-Manawatu president Gordon McKellar said a land-based tax would be “a pretty dumb idea”. The projected profit for a typical 220 hectare Manawatu beef or sheep farm would be about $21,000 for the next financial year but a land tax on the same property could be as much as $24,000 if buildings were included reports The Manawatu Standard.

“Basically that profit is all they’ve got to pay their wages. “Farmers are already paying a land tax anyway. It’s called rates.” These sentiments were echoed by Federated Farmers’ regional vice president Robert Ervine: “More tax is more tax. It’s another bill you’re going to have to pay.”

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