Animal prices in New Zealand

2007 News Archive - part II

Optimism from lamb marketers
N Z lamb demand and prices are warming up nicely in the UK and Europe for the start of the new export season, meat companies report. Just back from the big Anuga meat fair in Germany, senior executives say price rises are already being agreed upon for early 2008 lamb supplies. "On what we have signed so far in Europe there has been 10% lift in prices compared with last year," PPCS chief executive Keith Cooper said. UK supermarkets are aware of that lift and their need to meet the market, he said. "We do have options because NZ lamb will be short until the January/February arrival period," Cooper said. Because of the later NZ lamb maturity and the hangover of domestic lamb in the UK, there will not be a mad scramble to fill chilled containers before mid-November. Weston repeated his livestock manager prediction of an opening schedule at $4.20/kg But M&WNZ chairman Mike Petersen was slightly more bullish, saying other NZ companies at Anuga were talking $4.30 to $4.50/kg to begin the season. more>>

The Way Forward for our Two Co-os PPCS and Alliance
Farmer shareholders need to commit to a philosophy, according to MIAG Chairman Mark Crawford."Farmers need to be encouraged to produce a quality product on time and to certain specifications through long term supply agreements. Currently over the last two seasons, it has been a shambles. The Companies are competing vigorously for stock and patting themselves on the back for high throughput in their processing facilities and then freezing down over a million animals that had a spring chilled non market related premium paid and no home to go to. We need to become Marketers who process, not Processors who market. "With the current inability of lamb to compete for land use profitability, we are seeing an exodus of sheep leaving the industry, further exacerbating the over capacity of processing facilities. "We need to close down unprofitable plants and urgently implement the practice of toll processing, form an Independent Marketing Company with Global Presence and Expertise that is open for all NZ Meat Companies to be part of, Mr Crawford said. more>>

Integration and Collaboration the future for red meat
Meat processors, marketers and exporters met with scientists recently at a two day workshop focusing on market assurance and research and development initiatives in the red meat industry. A key outcome of the two days was an industry acknowledgement that research and development needs more integration and that collaboration was the way for the future.AgResearch MIRINZ ran the two-day workshop in association with the Meat Industry Association (MIA) and MIRINZ Inc. About 60 people attended and were provided with a forum where they could learn from each other about how to be more efficient and ultimately produce better products. CEO Dr Andy West says that, "the workshop provides an ideal opportunity for processors, marketers and exporters to connect with researchers working with the meat industry." "Consumers are demanding product functionality, quality, integrity and assurance and this requires an integration of research and development along whole value chains," he said. more>>

A crossroads for velvet
This was evident during an open discussion session, hosted by the velvet marketing co-operative on the day of its annual general meeting in Christchurch in April. When the co-operative was formed, the primary motive was to build selling power in the market and retain profits for the producer. To them, it’s mystifying that in spite of Velexco achieving prices that averaged 12% more than the pool average in the 2005–2006 season, it now looks as if many farmers will default to a Velconz joint venture with pools operator PGG Wrightson – the latter a public company expected to return profits to anonymous outside investors. And though many small-scale producers have described the $5000 it costs to join Velexco as prohibitive, it now appears likely that if they decide to support Velconz, they will have to tick a box approving the retention of some returns. more>>

Hit Tb pests where it counts
Research on Molesworth Station has provided a new blueprint for controlling the spread of bovine Tb, challenging conventional thinking on the issue. Deep in the heart of Molesworth Station, scientists think they have cracked the secret to mopping up problem high-country areas where Tb lingers. The results from three years of studying station wildlife that catches, carries and passes on the disease will be used as a pest-control blueprint that challenges conventional wisdom and is a departure from blanketing the land with 1080 poison. The vastness of Molesworth's 183,000 hectares, and other high-country farms like it, means it is too difficult and too expensive to expect to drop 1080 from the air over the entire station. Landcare Research scientists have discovered in a $500,000 project that it is better to isolate the areas where the pests are deep-rooted by studying their movement, altitude range and habitat patterns, and then target the high-risk areas. more>>

Procurement war the last thing farmers need!
Farmers and members of the MIAG are horrified at the prospects and consequences of another procurement war, which is starting now. John Gregan said the battle for lamb appears to have been instigated by the actions of one co-operative. "Farmers know that procurement wars benefit third party traders and volume suppliers at the expense of smaller suppliers who are the backbone of these companies. "Some farmers have declared they will not supply lambs to companies that still use third party trading and secret volume deals." Mr Gregan said that farmers must be treated fairly. Offering special deals is tantamount to having smaller suppliers subsidising those big enough to support themselves. more>>

Top-end romney rug project
Romney N Z has completed a ground-breaking deal, to turn Romney wool in to hand knotted carpets while retaining ownership of the wool and rugs. And it will reward farmers in the scheme by paying $10 a kilogram for the wool this season. The Romney ram breeding promoter has a shipment of wool to Nepal at the moment. It will be made into designer hand knotted rugs. The growers will retain the ownership of the wool, through the rug making and to a handful of retail outlets in NZ, said Romney N Z chief executive John Bates."It is only in the early stages, but we have a few of tonnes of wool on the water in a trial shipment. Getting the logistics sorted has been hard work," he said. more>>

Foundations for growth outlined in annual report
AgResearch’s Annual Report for the 2006/07 financial year reflects a strong financial performance and growth in science, business and staff remuneration, says C E Dr Andrew West “While interpretation of the financial performance was complicated by the mid-year acquisition of Canesis Network, at $5.1 million, AgResearch’s net profit after tax represents a pleasing result and a return of 5 per cent on shareholders’ average funds,” he says. Dr West says that while AgResearch scientists spent more time than was expected writing bids for funding, this extra effort paid off. “In July 2007 FRST informed us it had increased our year-on-year funding by $4 million (34%) on the $11.7 million that was rebid. This was a good result given the heavy competition for funds.” more>>

'Snake oil' farmer alleges commission underhand
A Waihi sheep and beef farmer found guilty earlier this year of making false claims over a soil fertiliser a judge has described as "snake oil" has accused the Commerce Commission of using underhand tactics. "This is a blatant case of big business in cohorts (sic) with the Commerce Commission trying to close down an alternative system of sustainable agriculture that is producing amazing results," said farmer Ewan Campbell. "It certainly isn't the New Zealand I grew up in where innovation was applauded," he said. more>>>

Former dairy king back in court
Former Murchison dairy king Avon Gillespie has been sentenced to a further 2½ years in jail for fraud totalling $2.5 million. Gillespie is serving 4½ for drugs, firearms and assault charges. His appearance yesterday in the Nelson District Court before Judge Tony Zohrab involved six counts of fraud against the Bank of New Zealand which occurred when he headed the Gillespie Group before it went into liquidation in 2005-06, owing creditors $37.5m.Gillespie pleaded guilty to the six charges. more>>>

Warning at pylon upgrade proposal
Cambridge farmer and Electricity Commissioner Graham Pinnell was not alone in questioning Transpower's 400kV pylon upgrade for Waikato and South Auckland. E-mails released under the Official Information Act reveal fellow commissioner Doug Dell also had reservations about the upgrade.As late as May this year commissioner Dell expressed concerns over the level of electromagnetic radiation at the easement boundary, saying mitigation measures needed to be raised with Transpower. more>>

Lamb-buying battle creates price worries
Sheep farmers fear booming dairy conversions in Southland will inflame a lamb-buying battle in the South Island. Estimates vary, but the deep south could be down one million lambs in the next two years when 70 to 100 conversions take hold mainly in Southland. There are worries that this will heighten peaks and troughs in prices paid for lambs. The Meat Industry Action Group (MIAG) believes Dunedin-based PPCS and rival meat company, the Alliance Group from Invercargill, would enter an aggressive competition to buy enough lamb for under-working freezing works. more>>

Put up or shut down time for GM use
AgResearch and Crop & Food Research are approaching a "put up or shut down" time for transgenic technologies. Decisions need to be made whether New Zealand science and agriculture will proceed with caution to conditional release of genetically modified crops and livestock. Massive financial, economic and environmental benefits appear to be flowing to countries that have adopted genetic modification (GM) and in a few years New Zealand may be at a significant competitive disadvantage. NZ organisations with the majority of GM research projects have to apply to the Environmental Risk Management Authority (ERMA) for conditional release of a GM organism, knowing the large cost, controversy and court challenges which would follow. more>>

Drought aid tops A$3 billion mark
Irrigators in Australia's Murray Darling Basin (MDB) will get survival grants of up to $20,000 under a new federal drought package unveiled last week. Thousands of farmers and small businesses will also get Exceptional Circumstances (EC) support for the first time under the package, worth about A$720 million. The moves come on top of the six-month, A$430m extension in EC assistance announced earlier, pushing total federal spending on drought relief since 2002 to well over A$3 billion. Federal Cabinet ticked off on the measures put forward by agriculture minister Peter McGauran to make federal assistance more widely available as Australia's drought crisis worsens. In a move sure to be welcomed by the horticulture sector, the A$20,000 grants will be available to MDB irrigators for water management strategies to see them through the drought. They are designed to help irrigators whose crops and permanent plantings are under serious threat from drought. more>>

Milk minnow a family affair
The Thornton family have built a series of icecream businesses over the last 25 years. Now they are extending their product range. After a hard day's work at the milk factory, Brent and Faye Thornton walk through a gap in the shelter belt and are at home in their Killinchy sanctuary. The 25ha property is their rural retreat. "We just like the country feel and want to live in a rural atmosphere," says Brent Thornton. "We are away from the hustle and bustle of the city." But the Thorntons don't pretend to be farmers. They are manufacturers first, allowing the surrounding paddocks to be grazed by a neighbouring farmer. more>>

NZ dollar flies up on taste for risk, then retreats
The New Zealand dollar flew to a 2-1/2 month high against the greenback near US77.50c overnight with the kiwi becoming the centre of attention as investors rediscovered a taste for risk.The kiwi peaked around 6am but then fell away sharply as overnight gains in US equities also turned negative. By 8.20am it had pulled back to be at US76.82c, still firmly up on the US76.42c at 5pm yesterday. The ANZ bank said the NZ dollar had easily broken through resistance levels overnight to be up against all its major trading partners on strong yield-related buying. Despite evidence that domestic demand was softening, the market was well aware the Reserve Bank was unlikely to be cutting interest rates any time soon considering persistent inflationary pressures. During its overnight surge, the NZ dollar had dragged the Australian dollar along for the ride, ANZ said. more>>

Gov't orders review on milk safety
The Government is guaranteeing reviews announced yesterday by the New Zealand Food Safety Authority (NZFSA) into milk safety and the authority's decision-making processes will be independent and transparent. Food Safety Minister Annette King welcomed the NZFSA's move to commission the reviews and told The Press the matters needed to be resolved "once and for all". The reviews were expected to be finished by Christmas. The NZFSA has been under increasing pressure over its handling of the A1-A2 milk issue since the publication of Lincoln University academic Professor Keith Woodford's book, Devil in the Milk, and his subsequent release of documents that he believes show the authority has run a campaign of misinformation about how safe milk is to drink. more>>

Eco-energy engineer blows off green image
His mission is getting eco-friendly power into third world homes, but Bram Water is no greenie. The Devonport resident makes wind turbines for use in homes and in under-developed countries mainly because he loves the engineering. "A lot of people are jumping on the bandwagon and going green. I believe in green but basically my interest is in making wind turbines and whether I save the environment I couldn't care less." Mr Water started making wind turbines recently to help power his yacht. The idea of marketing his model came to him after he mounted it on his trailer and took it to Mt Victoria for testing. more>>

New ways with wool
Mention the wool industry to a farmer and expect to get an angry response or, at least, a numb shaking of the head in sorrow. It is sad to contemplate. Wool production is about as old as the nation itself but is still basically a commodity industry - most of it is sent offshore in raw form for businesses in other countries to make into a range of high-value products, from carpets to clothing. With control of their product out of their hands, farmers receive a pittance - in many cases they barely cover their shearing costs. Consequently, many of them no longer care about their wool and pay little attention to quality. more>>

NZ needs to focus on long term in R&D
AgResearch chairman Rick Christie says New Zealand has under-invested in research and development which is critical to the future of the primary sector. "We need to increase the value of exports and not just volumes to help counter our balance of payments deficit and reduce our vulnerability to commodity pricing and cycles," he wrote in the latest annual report. Mr Christie said in the past research was done in the spirit of discovery but was now profit-driven. He said Crown Research Institutes had generally served New Zealand well. Universities "in some cases" generated underpinning scientific and medical research. more>>

Growing interest in farming fund
THE Ministry of Agriculture and Forestry's Sustainable Farming Fund attracts a vast range of applications each year for projects ranging from alpacas and llamas, to kiwifruit and wine growing.
Fund manager Craig Grant said since its formation in 2000, interest from the rural sector had grown stronger every year. More than 300 applications were made for the 2007-2008 funding round, worth about $30 million in total. The total funding available each year is $9.5m and the maximum amount any project can receive is $200,000 per year for up to three years. Projects are split into two categories – those seeking funding of up to $20,000 and those seeking more than $20,000. more>>

Abattoir closure hits organic meat farmers
Northland certified organic farmers have resorted to putting stock through mainstream abattoirs and selling the produce under conventional meat labels. With the closest certified organic abattoir in Hamilton or Themes, small scale Northland farmers are limited by their volumes and regularity of supply. Small local abattoirs have closed due to the cost of regulatory compliance and the remaining large players say they do not have the volumes to justify the cost of organic certification. "If we had regular large volumes then it might be economic for us to truck animals down south, but not when you're slaughtering only one or two a week as some farmers are," said certified organic farmer Bev Trowbridge. more>>

Prospects for lamb fade in just two months
The prospects for a better year for sheep farmers are not as rosy as they looked two months ago. Things have changed since forecasts of better times were made then. They were based on expectations that two of the factors spoiling returns last year would not be present. One was an over-supply of New Zealand lamb. The forecasters were right about that - exports are expected to be down 5 per cent after farmers on the North Island's east coast were forced to cut back stock numbers in a drought that is still being felt. The other was an over-supply of Australian lamb as the drought there forced a similar stock cutback last season. But another cull, just as big as last year, may be on the way. Australia still has a big national flock and the drought is continuing. more>>

Grass-fed dairying tops other systems
New Zealand is an efficient milk producer because it is still based mainly on grazed pastures and these have the lowest costs when compared with other systems in the world, an expert told Manawatu farmers. That puts it well ahead of dairying where cows are either housed during winter, or kept in barns year round, Massey University Professor of dairy production systems Colin Holmes said. He believes grass-fed systems are the ones that will lead growth in a world that is short of dairy products and with growing demand from wealthier Asian markets. more>

Fed Farmers battles falling membership
Federated Farmers is out to get new members. Its numbers have fallen from 18,000 a couple of years ago, to just over 15,000 in August. Federated Farmers is a lobby group that prides itself on representing the rural sector. To do that, it needs members - so the numbers game is important. It is in the throes of revamping its recruitment system to try to bring more members on-board. As part of that new deal, it has made its six field officers redundant and is replacing them with commission-only agents. The federation has a national office in Wellington, responsible for almost all the national lobbying done on behalf of the country's farmers. It also has 24 regional groups from Northland to Southland. One group in Northland is going it alone, but the federation has another province up and running there. more>>

Tourists 'should be taxed' over pests
Federated Farmers is calling for taxes on tourists to meet the multimillion-dollar cost of biosecurity. Figures released by Biosecurity New Zealand reveal the cost of responding to the invasive river weed didymo, which has spread to 53 South Island rivers since it was first identified in 2004, has hit $12 million. "It's time we taxed tourists," Federated Farmers president Charlie Pedersen said. Tourists in "silk-bottomed waders" introduced didymo and tourists on expensive yachts probably introduced sea squirt, he said. more>>

“Makings of Greek tragedy”
The makings of a Greek tragedy - that is how Marton's David Hammond sees the Fire Review being considered by the Department of Internal Affairs. Hammond, the Farm Forestry Association's national executive representative on the Forest Owners' Association fire committee, is referring to the disastrous August fires in Greece, where he says the loss of nearly 70 lives and the loss of more than 200,000 hectares of agricultural land, national parks and mountain forests was due in part to a change in firefighting responsibility similar to that being contemplated by New Zealand. more>>

$52m sweetener in Landlord deal.
The lure of a $52 million cheque paid to Landcorp has accompanied the government's decision to allow the SOE to retain stewardship of properties under treaty dispute. The announcement by the Minister for SOEs Trevor Mallard effectively sees Landcorp continue to manage nine properties either under dispute or likely to come up for treaty negotiation in the next five to seven years. In return the government can claim the properties as and when they are required for treaty settlement or other public purposes. more>>

New lamb markets sought
The major meat-export companies of AFFCO, Alliance, ANZCO and PPCS have lain down their competitive swords to scope out new markets for lamb in emerging economies. With industry leader Meat & Wool New Zealand, they will pool finances and resources to expand exports on a big scale into relatively raw markets. The processing quartet, who account for 75 per cent of New Zealand meat exports, will analyse markets including China, Russia, Eastern Europe and India. PPCS chief executive Keith Cooper said changing economies had opened opportunities for New Zealand lamb into non-traditional markets. He said the markets had the buying power for Western foods and the infrastructure to deliver them to the marketplace. more>>

Beef labelling inevitable
The likely launch of compulsory country-of-origin labelling by the United States for some beef products is not in New Zealand's best interests, says Meat & Wool New Zealand's chairman, Mike Petersen
Labelling profiles are expected to be introduced next year. The US is New Zealand's biggest beef market, absorbing 52 per cent of beef exports, and is a big route for dairy beef in the hamburger market. Petersen said New Zealand had historically been against compulsory country-of-origin labelling because of its "fish hooks", including that it would not be introduced for restaurant beef. The US wanted labelling for blended products such as burger beef, but New Zealand saw little value in this, he said. more>>

Higher price wanted for seeds
Herbage seeds are at record prices, but may need to rise further for growers to put in autumn plantings, because of better returns for barley and wheat. The nui grass cultivar is being quoted at $2.20 a kilogram for the 2009 harvest and a large European seed company is seeking seed.Federated Farmers' herbage seedgrowers chairman, Hugh Wigley, said the outlook had never been better for growers after a big lift in small-seed prices, with grass seed following the rise in world grain prices. However, growers were waiting to see what happened before making planting decisions because of higher returns for barley and wheat, he said. more>>

Industrial farming of fuel crops speeds global warming
Most crops grown in the United States and Europe to make "green" transport fuels actually speed up global warming because of industrial farming methods, says a report by Nobel prize-winning chemist Paul J Crutzen. The findings could spell particular concern for alternative fuels derived from rapeseed, used in Europe, which the study concluded could produce up to 70 per cent more planet-warming greenhouse gases than conventional diesel. The study suggested scientists and farmers focused on crops, which required less intensive farming methods, to produce better benefits for the environment. more>>

New UK foot and mouth control zone in south England
Britain's farm ministry said it had set up a new temporary control zone in southern England as precautionary measure after discovery of a ninth suspected case of foot and mouth disease. The Department for Environment, Food and Rural Affairs (DEFRA) said in a statement it had ordered the protection zone around a premises near Haywards Heath on the border of east and west Sussex. "All the cases so far have been within the protection and surveillance zones. And obviously the temporary control zone near Hayward's Heath that's a precautionary measure and is pending lab results," a Defra spokeswoman said. Eight cases have been confirmed during the current outbreak which began in Surrey on Aug. 3. more>>

Meat should take lead from dairy
I found last week's Farmers Weekly commentary on the stalled or defunct merger talks between Alliance and PPCS riveting. It comes across to me as just one more example of meat industry turf wars and demonstrates the complete and utter lack of leadership in the New Zealand meat industry. The only leadership being shown is that of the Meat Industry Action Group. Their efforts are to be commended, they are the only people on the block trying to do something and for that reason they have my respect. The problem is, I don't necessarily agree with their aims and objectives. The current meat industry scenario could, in my opinion, be made into a play, it has all the ingredients. There is farce, tragedy and comedy all rolled into one. In addition it is important to remind ourselves that farmers do own the majority of the industry. If there is a problem then it is one largely of our own making. more>>

Dairy boom may be near end
Global dairy prices should start to ease off early next year at which point there is a chance of sudden fall, according to a just-released Rabobank report. The report - entitled 'Dairy - Is the global boom sustainable?' - says that when the market begins to rebalance the possibility of a sharp correction cannot be discounted due to the relative thinness of trade. Only around 7 per cent of world milk production is traded across borders and because demand and supply is rising fastest in countries that are largely self-sufficient, such as India, China and Brazil, this number is expected to fall further. more>>

Landcorp eyes climate policy
State-owned farmer Landcorp is keeping a close eye on how the Government’s proposed climate change policy for the agriculture sector shapes up. The Government policy announced last week pushes for more planting of forests and replacement of harvested woodlots, raising financial implications for dairy conversions. Landcorp has teamed up with landowners to convert vast tracts of Central North Island forestry blocks into dairy farms.more>>

NZ 'can affect climate change'
New Zealand's reliance on agriculture puts the country in a position to influence the global management of greenhouse gas emissions, Britain's chief scientist says. Nearly half of New Zealand's total carbon emissions are produced by agriculture, predominantly methane from farm animals and nitrous oxide from soils and fertilisers. Sir David King said though that fact posed challenges for New Zealand, it also offered potential solutions. more>>

Call for crackdown on dirty dairying
Three-fifths of Canterbury dairy farms are failing to comply with effluent discharge regulations, prompting calls for a crackdown on the multimillion-dollar industry. Environment Canterbury (ECan) figures suggest efforts to clean up the industry are making little headway. A stubborn core of about 18 per cent of Canterbury dairy farms were found to be in "significant" or "major" breach of their discharge consents in the year to July, marginally down on the 19 per cent the year before. Only 39.6 per cent of dairy farms fully complied with their effluent discharge consents, says ECan's annual report on dairy shed monitoring released yesterday, compared with 61 per cent three years earlier. more>>

Ballance bumps up shares
Fertiliser company Ballance has increased its nominal share value by 70 cents to $7, giving shareholders an additional $21 of value per 30 shares. This is in addition to this year's combined dividend and rebate, which averaged $24.20/tonne. The share price increase, combined with the dividend and rebate, brings the total value per tonne for fully paid-up shareholders to $45.20. Shareholders of Ballance approved the directors' recommendation to increase the share price at the AGM in Whangarei in mid-September. more>>

Fonterra AGM a low-key affair
Capital structure was the number one agenda item, a crowd of 300 shareholders was told at the Fonterra annual meeting at Mystery Creek, near Hamilton, last week. Chief executive Andrew Ferrier said that next month the board would be in a position to come out with the preferred option via video linked meetings at seven venues. "Farmers will not be asked to vote on capital structure - this is just the beginning of discussion, consultation and debate," said Mr Ferrier. Chairman Henry van der Heyden said no farmers thought they were coming to the annual meeting to listen to the options on capital structure and felt they were comfortable with the process. more>>

A1 claims 'unproven'
Fonterra bosses have dismissed claims the country's dominant milk variety has links to diseases. Professor Keith Woodford, author of Devil in the Milk, claims an A1 beta-casein protein is a factor in diseases including diabetes and some heart disease, and could be implicated in a range of other illnesses, including autism and schizophrenia.He said A1 milk posed a health risk, while A2 did not. Fonterra's chief executive, Andrew Ferrier, told Fonterra shareholders this week at the company's annual meeting that the company believed the research did not support Woodford's claims. "The New Zealand Food Safety Authority came out very strongly and said nothing that came out of that book was new and that there's no compelling evidence that it's an issue. more>>

Misinformation” riles farmers - Water becoming hot local body campaign issue
Local body election candidates using the Canterbury water debate as a campaign issue are agitating Canterbury farmers. Save Our Water is the basis of the local body election campaign of at least four candidates standing for positions on the Canterbury Regional Council. All over Christchurch Save Our Water billboards suggest Christchurch's water quality and quantity is under threat. The group's candidates claim that if irrigation schemes such as Central Plains Water (CPW) are allowed to proceed intensive agriculture with its increased fertilisers and animal effluent will place serious risk on human health. The purpose of Save Our Water was to promote environmentally sustainable councillors to regional council. more>>

What will Kyoto cost on the farm?
Farmers have available only sketchy ideas of their greenhouse gas liabilities under the government's new climate change policies. Agriculture is not scheduled to enter the emissions trading scheme (ETS) until 2013. "Where the obligations will lie and the allocations of emission units are among the ETS details to be worked out in consultation with industry," said MAF principal adviser, climate change, Julie Collins. It will take most of next year before recommendations would go to government, she said. more>>

Dry conditions bite in North Canterbury
Farmers are destocking in pockets of North Canterbury as a dry autumn that carried over into winter takes its toll. Cheviot hill country is among the harder-hit farmland, with some farmers relying on outside feed for many months to keep livestock condition up. The owner of Capethorne farm, Greg Chamberlain, said his hill-country property was the tightest it had been for feed since 1990 after no autumn growth and a dry winter. "We have been dry since January. A small area around Cheviot is a bit like the east coast of the North Island. "We have been feeding bales from February through to August and people are still feeding out. I have bought four unit-loads of hay to get stock through and most people have done the same." more>>

Giant tractor comes complete with bragging rights
The largest conventional tractor in the world has been bought by a South Canterbury contractor. New to the market, the 360hp Fendt 936 was sold for more than $320,000 to a contractor who will use it to pull a loader wagon for mainly silage duties, and to steer a large scraper bowl for earthmoving. Larger tracked and pivot-steered tractors can be found in New Zealand, but the Fendt overshadows the other rigid tractors often seen on farms. Agrifarm's group manager, Gary Clement, said existing owners of large Fendt tractors were showing interest in the new model, sold by the company's Ashburton branch. more>>

Feed lack affects Wellsford sale
The lack of feed in Northland meant the spring yearling fair at Wellsford was subdued but cattle still sold at acceptable prices. Elders agent Trevor Penny said cattle sold to a similar value to last year's cattle fair although heifers sold stronger than steers. He said the best of the steers was a line of 378kg South Devons that sold for $1.87/kg LW while other good steers at 309-348kg sold for $1.94-$2.11/kg LW. Steers at 271-291kg made $1.95-$2.04/kg LW, medium 243-248kg fetched $2.26-$2.29/kg LW and 195-219kg steers traded at $2.05-$2.11/kg LW. Good 326-333kg heifers made $1.87-$1.82/kg LW and 291kg heifers sold for $1.86/kg LW. Medium 223-240kg heifers sold for $2.18-$2.20/kg LW and 220-231kg heifers sold at $1.90-$2.11/kg LW. Yearling bulls at 371kg sold for $1.82/kg LW, 308-325kg bulls made $1.82-$1.61/kg LW and 267-270kg steers made $1.57-$1.88/kg LW. more>>

Farmers not getting off lightly over emissions
Let's get one thing straight. Farmers have not been let off the hook by the Government in its emissions trading scheme. Under the proposals, agriculture, which produces 49 per cent of New Zealand's greenhouse gases, won't have to start paying for its excess emissions till the beginning of 2013. That's more than five years away, but there's a lot to do before then. Some green lobbyists, who, I suspect, are at heart die-hard vegetarians who won't be satisfied till the only sheep, cattle, pigs, goats and chooks left in New Zealand are zoo curiosities, say agriculture should be paying its fair share now. That's not possible. New Zealand is the first country to bring agriculture into an emissions trading scheme – there are no tried and proven methods and no administrative templates for us to adopt. more>>

Farmers soak up drought advice
Steve Wyn-Harris upends a sack of grass clippings, freshly cut from the side of the road outside his farm that morning. There's laughter and a few jeers as the 100 farmers packed into the Gladstone hall stand, shift seats and crane necks to see. "Don't skite," someone calls. The grass is long, green and juicy, its glossy luxuriance as much an affront to these drought-ridden farmers as a cake shop in a Sudanese refugee camp. But the mercurial Central Hawke's Bay farmer isn't showing off. He quickly explains that this grass isn't from his pastures. He's showing it to us to make the point that it takes this sackful and more each day to feed a ewe pregnant with twins – 18kg, in fact. more>>>

It's a good time to be buying, says Fonterra
Fonterra is keeping tight-lipped on whether it is preparing a bid for Australian cooperative Dairy Farmers, but says the global credit crunch makes it a good time to buy assets. The New Zealand co-op held its annual meeting at Mystery Creek, near Hamilton, yesterday, with about 300 shareholders turning up to hear chairman Henry van der Heyden and senior executives. Dairy Farmers has been preparing a float for next year and its chief executive, Rob Gordon, said last week it was open to looking at other options. After yesterday's meeting, Andrew Ferrier would not say whether Fonterra was preparing a bid. But it is understood that the two co-ops have been talking for some time and that Fonterra is well advanced in developing an offer. more>>>

Velvet farmers get say in new venture
A single marketing body for New Zealand's $30 million deer antler velvet exports is a step closer with a joint venture between deer farmers and PGG Wrightson. New Zealand is the world's biggest producer of deer velvet. It exports 500 tonnes a year, mostly to the Korean market where it is used in medicine and tonics. Till now, most antlers have been sold through a closed-tender pools system run by PGG Wrightson. Effectively the company acted as a broker, matching buyer to seller. But the lack of marketing involved meant there was no incentive to get a better price for farmers. After more than a year in talks the two sides have agreed to form Velconz, a joint venture to market velvet .more>>>

$35,000 fine for dirty dairying upheld
A big family-owned dairy farm which blamed a sharemilker for a stream of effluent flowing across its Reporoa property has had its appeal against a $35,000 fine turned down by the High Court. Justice Lynton Stevens said in his judgment that the penalty imposed on the Crafar family-owned Plateau Farms in the Rotorua District Court was entirely appropriate, given the scale of the illegal effluent management during 2004-05. more>>>

No merger hits farmers
The inability of Alliance and PPCS to agree to a merger reflects badly on the companies, Manawatu farmer Malcolm Brazendale said. “I think it’s actually quite tragic that two farmer-owned businesses can’t get their heads together and make some sensible decision.” Although it had been suggested that PPCS’s debt has discouraged Alliance from the merger, the amount of good South Island country heading into dairy production should be of serious concern to Alliance. “They appear on the published material to be financially stronger than PPCS, but they’re in great danger of having no stock to kill. “It doesn’t matter how strong you might be, and how financially secure, if you’ve got nothing to eat- you’re dead, aren’t you?”. more>>>

Affidavit backs milk claim
An affidavit sworn by Energy and Climate Change Minister David Parker in his previous career as a lawyer and consultant, gives weight to Lincoln University Professor Keith Woodford's new book Devil in the Milk, highlighting the controversial properties of milk. Parker was Dunedin entrepreneur Howard Paterson's right-hand-man in business during the late nineties when Paterson was putting money and support behind fledgling biotech companies. In an affidavit sworn at Dunedin in the High Court of New Zealand in August 2000 Parker claims New Zealand Dairy Board's then global research and development director, Dr Kevin Marshall, agreed that a protein in milk could cause childhood diabetes in children with a genetic predisposition. Marshall, who today is on the board of the Horticulture and Food Research Institute, has since denied he made the comments. more>>>

$2m boost for Massey animal and veterinary research
Massey University has welcomed news it is to receive $2 million Government funding for a project to enhance New Zealand’s veterinary and animal science research capability. Nearly $8 million will be invested over the next two years to boost research capacity in the high-priority areas of nursing, veterinary science, and information and communications technology, Tertiary Education Minister Michael Cullen announced today. more>>>

Rush for dairy shares
South Canterbury dairy farmers have snapped up newly released shares in the New Zealand Dairies Ltd (NZDL) Studholme plant. Founding director Greg Misson, who resigned from the NZDL board in July, freed up his personal shareholding and put it up for grabs last Thursday. Fellow founding director, South Canterbury dairy farmer Aad van Leeuwen, who also resigned from the NZDL board last month, said farmers were queuing for the shares. "It's been an opportunity for the real people involved in the factory to participate. It's good news," van Leeuwen said. Like van Leeuwen, Misson has always advocated ownership of the plant staying in the south. Both former directors, together with Kelly Diprose who resigned from the board in August, fought hard to introduce supplier shareholding. But our efforts were continually blocked," van Leeuwen said. "We always knew there was enough money in New Zealand. We tried to secure extra finance to avoid dependence on overseas interest but they (overseas board interests) were on their own agenda to get international ownership." The 980,000 shares were changing hands at "fair value" but the amount remained confidential. more>>>

NZ prepared as bluetongue hits British stock
A laboratory has found the Bluetongue virus in a cow in eastern England, the agriculture ministry said today, the first case in Britain and a fresh setback for the country's farming industry. Britain's livestock farmers have already been hit by the discovery of the more serious foot and mouth disease at several sites in the past two months. "Laboratory tests have detected the presence of Bluetongue in one cow on a premise near Ipswich, Suffolk," the Department for Environment, Food and Rural Affairs (Defra) said in a statement. "The premises where Bluetongue has been found is under restrictions. One infected animal will be culled and epidemiological investigations are being carried out to assess the situation." more>>>

Australian feedlots slash throughput
Australia's feedlots are slashing their throughput in the wake of rising feed grain prices. Reports indicate the numbers of cattle on feed have dropped below 50% capacity and are set to fall further. For the June quarter, the Australian Lot Feeders Association (ALFA) reported a 77% usage rate as feed grain prices rose to $300/t. Now, with feed grains being quoted from $350 to $400/t, lot feeders say price margins have evaporated. Like the rest of the world, Australia is experiencing a supply squeeze on grains, as evidenced by the Australian Bureau of
Agricultural and Resource Economics' latest winter crop forecasts, which slashed this season's wheat harvest to 15.5 million tonnes and barley to 5.9 million tonnes. Barry Hunter, who buys feeder cattle for the Tasman Group, said the company's Yambinya feedlot numbers were down to 6500 head, at a time of year when there would normally be up to 14,000 head on feed. He said the high cost of grain made feeding cattle unviable on current price returns for slaughter animals. more>>>

Five years for gains off merger
High rationalisation costs would have taken up the first five years of gains from a merger with rival meat processing co-operative PPCS, says Alliance Group chairman John Turner. This lack of immediate returns for farmers typified the insignificant benefits a merger would have provided, he said. "Cash redundancy costs and plant valuation writedowns would gobble up any gains in the first five years, and the business case did not stack up.'' After reviewing a strategy options report from accountancy group Pricewaterhouse Coopers, PPCS supported an immediate merger but Alliance Group concluded that the benefits identified - particularly in export markets - could be achieved without a formal merger. more>>>

Saving the flash toys for later
Young dairy-farm manager Phil Colombus has the discipline and the goal to give lie to the belief that New Zealanders are poor savers. Farm manager Phil Colombus points to a modest sofa set and laughs when he reveals it cost him only $50. A standard television is perched on a hand-me-down entertainment cabinet in the sparsely furnished house that comes with the job of managing a 500-cow farm in Dunsandel. In the garage is a 1988 Mazda Capella, for which the 24-year-old paid $2000 when he was 16. It runs as well as on the day he bought it, he says. His high-powered saving effort has a goal – a dairy farm he can call his own. more>>>

'Alliance dashes merger hopes'
Hopes of a merger between meat companies PPCS and Alliance to pull the industry out of the doldrums have been dashed. In a statement released last night to NZX, PPCS chairman Reese Hart says while his company supports the merger as part of “substantive reform” within the meat industry, Alliance won’t back the move.The PPCS board concludes that the case for a merger is “compelling”, and would be in the interests of the long-term sustainability of the sheepmeat industry. “While Alliance has signalled to PPCS it supports a strong, merged single co-operative in the future, no timeline was indicated,” he says. Hart says Alliance’s decision is “regrettable” because PPCS believes action is needed now to create an optimum supplier-owned model for the meat sector. more>>>

Squeezing out five
Five lambs in three years from one ewe shows the potential of high-fertility sheep in an accelerated lambing system, says Meat & Wool New Zealand. Run by Massey University on its Manawatu farmlet, the three-year research trial aimed to test whether lambing more than once a year is both possible and profitable. more>>>

Dairy farmers surf wave of prosperity
When Fonterra announced last month its forecast payout of $6.40 a kilogram of milksolids, normally sober economists struggled for adjectives to describe the economic impact. Possibly the biggest positive shock to the economy, said one. Instead of riding on the sheep's back the nation's economy now seemed to be clinging firmly to the cow's udder. The good news, for primary producers at least, is that it is not just a dairy boom. International grain prices have also ascended into the stratosphere and, though New Zealand is not a grain exporter, the price rises are expected to push up the price of meat. more>>>

Agrifund bid stymied by 'extreme' environment
Agri Private Capital Fund (Agrifund) will be returning money to investors after failing to raise enough funds for its dairy-farm investment project. Chairman Peter Jackson said the environment for raising capital has never been so extreme, with the turmoil in world credit markets and the associated difficulties for many New Zealand finance companies. This made it very difficult for a new product. The Agrifund offer, at a price of 100c a share, opened on May 9 seeking a total of $60 million for investment in dairy farms and agribusinesses, with investors having to put in at least $10,000. Under securities legislation it had to close within four months and Jackson said it not reached the required minimum of $16m in committed capital by that time. more>>>

Cattle market firms at Kaikohe sale
There was a good-sized yarding of 700 cattle at Kaikohe last week with the market firming on the week before. Three-year-old South Devon cross steers at 557kg made $2.01/kg LW, lighter 495kg lines of South Devon steers sold for $1.88/kg LW and rising Whiteface two-year steers sold for $2/kg LW. Exotic-bred yearling steers traded at $2.01/kg LW and lighter Hereford-Friesian and Angus-Friesian steers made $2.05-$2.08/kg LW. Friesian yearling bulls sold at $2-$2.08/kg LW and 264kg Simmental-crossed bulls made $2.12/kg LW. Two-year-old 379-387kg South Devon heifers made $1.74-$1.82/kg LW and 259kg Whiteface heifers sold for $2.16/kg LW. First-calving Simmental cows with calves at foot made $750-$798 and 230-260kg dairy-beef cows made $1.84-$1.85/kg LW. Empty 480-492kg Friesian cows sold well at $1.25-$1.38/kg LW and 363-382kg boner cows made $1.10-$1.15/kg LW. PGG Wrightson agent Bernie McGahan said the older cattle fair at Wellsford was hard work because the lack of feed in Northland meant less interest from buyers. more>>>

Time to bring back pioneering spirit
"You know, the kind that drove young people 150 years ago to sail halfway round the world to a new life in a strange country." He waves an arm vaguely at the hills behind him. "You wouldn't believe the opportunities that are out there," he says. He doesn't mean New Zealand, he means out in the wide world. "You can just hop on a plane. New Zealand agricultural technology, skills and knowledge will take a youngster a long way." He ought to know. The 48-year-old dairy farmer has travelled a fair bit and has put a stake in the ground in Georgia in the United States. There, he and two other Kiwis have converted two drystock farms to dairying. more>>>

Russian bid sparks rebel supply stand
The first milk will pour through the new $100 million New Zealand Dairies Ltd (NZDL) plant in South Canterbury early this week, despite a grassroots campaign to wrest control of the company from Russian hands. Rebellious suppliers have submitted a petition to the Overseas Investment Office (OIO) to stop Russian investors Nutritek taking control of the plant. Nutritek will become a major shareholder in NZDL providing the OIO approves its stake of around 35%, up from its original 5.6% holding. NZDL chairman Peter Lavery appears to be unfazed by the supplier petition. "This project was only conceived in May 2006. "This has been a big achievement in 18 months. I am happy with this achievement and confident as we look forward to the future," Lavery said last Friday. more>>>

Reports challenge worth of merger
Dairy farmers will next week vote on the future of their industry' funder-provider model for research, to which an average farm contributes almost $4000 a year. Fonterra Shareholders Council initiated the change almost 12 months ago, but dissent has been vocal within the ranks of funder Dairy Insight. Several low-profile reports were submitted by Dairy Insight to the resulting industry review on the current research model. These acknowledged flaws in the existing model. Overall, however, the experts consulted cautioned against throwing the baby out with the bath water when it came to merging the provider and funder. more>>>

Farming future bright, says Key
Agriculture has a bright future because of the economic growth of China and other Asian countries, says National Party leader John Key. Key, who was opening new offices for Rangiora grain and seed merchant Luisetti Seeds yesterday, said farming had once been described as a "sunset industry". He was optimistic it would shake off this tag as there were "phenomenal" things happening in China, India and the rest of Asia that would give New Zealand agriculture a huge boost. China's increased wealth over the next 20 years and its millions of people would be a huge benefit to the industry. "They will do one thing in the future and that is buy food." more>>>

Is Fonterra plan just another special deal?
At a time when sheep farmers are fed up, and increasingly vocal, about special deals within the meat industry, it is ironic that Fonterra has announced its intention to set up a pooling scheme which aims to get a "premium" for its suppliers from meat companies. Sheepfarmers have been suffering poor prices in recent times with many opting out of sheepfarming and into dairying. One of the issues which has outraged sheepfarmers has been the decision by Alliance Group to continue to deal with third party traders this coming season. So it is ironic that Fonterra, and its subsidiary RD1, are looking into the potential of a pooling scheme for cull cows and bobby calves to secure a premium for the company's 11,000 farmer-shareholders . more>>>

PPCS says YES, Alliance says NO
PPCS has given its support to the concept of a merger with Alliance Group Ltd as part of a process of substantive reform within the meat industry to deliver sustainable and improved returns. PPCS Chairman Mr Reese Hart said: "The merger concept evolved from PPCS' own strategic review combined with the recent PricewaterhouseCoopers analysis. The PPCS Board concluded that the case for a merger concept was compelling, and would have been in the interests of the long-term sustainability of the sheepmeat industry. "Regrettably, Alliance Group Limited has declined to support a merger at this time. more>>>

Milk 'fears raised in '80s'
The dairy industry has killed off long-standing concerns about the safety of A1 milk in order to protect its multi-billion dollar industry, a leading medical researcher says. Former Auckland University professor of medicine Bob Elliot said his research in the late 1980s had highlighted possible links between A1 milk and serious diseases, such as diabetes and coronary heart disease. more>>>

Farm returns ignite market
The rural property market is heating up on the back of a global need for more food as city sales lose their fizz.
Dairy farmers are looking to invest a record pay-out and the overall farming picture is healthier than six months ago. A $6.40 payout foreshadowed by Fonterra is from skyrocketing commodity prices, while wheat prices exceeded $9 a bushel for the first time last week on the Chicago Board of Trade.At the same time, residential sales were at a seven-year low in new industry figures. more>>>

There is plenty of gold in green
Grappling with the impact of carbon targets on farming is like trying to hook a big eel below the riverbank - you put your hand down there but immediately wonder what you're in for. Simon Terry from the Sustainability Council wants to take it easy on us. The economic consultant regularly checks himself during our interview to make sure he's not getting too "high brow" on the subject. Starting with the boiled-down version, he argues carbon emission targets are a glorious opportunity for New Zealand to show off its green credentials. more>>>

Fears over disease link to NZ milk
An explosive new book will tomorrow accuse the dairy industry of keeping the public in the dark about the health risks of the milk variety dominating New Zealand supplies. The book, which will hit book shops tomorrow, is by a respected academic, Lincoln University Professor Keith Woodford, who has spent three years unravelling the links between serious illnesses and A1 milk. The alternative is known as A2 milk. Woodford says the industry has been quietly converting herds to A2 milk producers through artificial insemination – a change expected to take 10 years. more>>>

Trees solution to climate change
Just reducing carbon emissions will not limit Planting trees is the most meaningful way to limit climate change rather than solely trying to cut carbon emissions says Massey research fellow, Peter Read. And it could help with Horizons' One Plan concerns to deal with steep country hill erosion. It is not just about meeting New Zealand's pledge under the Kyoto agreement, but about reducing global warming on a big scale he says. "I am concerned about the real problem, rather than just New Zealand keeping its backside clean. I want a global solution. "The idea that that can be got just by reducing emissions is wrong, Dr Read says. "My research shows you have to actively start removing carbon from the atmosphere and putting it somewhere safer." more>>>

Fonterra’s Australian exports drying up
Another grim season of water restrictions awaits most of Australia's 10,000 dairy farms. Only Western Australia has a better than 50% chance of receiving historical median rainfall in spring, according to the Australian Bureau of Meteorology. Farmers in southern regions of NSW, Victoria and South Australia got a good break to the start of the rainfall season, in July. But subsoil moisture was not charged and rainfall has been scarce since. "We now fear we are going back into drought," said Fonterra supplier Ray Howe, near Darnum Park processing plant in West Gippsland, Victoria. more>>>

Grain growers and buyers worlds apart
Grain buyers are resisting growers' efforts to take advantage of rocketing international prices with high-priced supply deals. The growers want to peg local prices to the $450-a-tonne cost to import grain to New Zealand, but buyers representing chicken and pig feed users, breweries, breadmakers and trading companies are pitching their bids at about $100 a tonne less. Growers say the standoff could see a shortage of grain. However, buyers say that growers may not be signing contracts, but they are still planting and will have to sell sooner or later. The booming dairy industry offers growers an alternative – converting crops to silage. Contracts in Taranaki equate to about $390 a tonne. more>>>

Fonterra's listing plan 'bold but tough'
Fonterra's push for a partial public listing is a bold move, industry commentators and its suppliers say. Fonterra was down to just two options in its capital structure review - both of which would involve listing a sizeable minority stake in the company, an industry source said. Fonterra would not comment, but did not deny the report. Chris Kelly, chief executive of state-owned Landcorp (a big Fonterra supplier), said most commentators would concede a partial listing was likely. "But to go from where they are now to that in one stage is quite bold. We are now entering a high-commodity-payout environment, which will make farmers more cautious. more>>>

Pets gobbling up our future beef production
Many good Friesian bull calves have gone into petfood this year, raising the possibility of weaner shortages and lower beef production to come. And the big sucking sound from the dairy industry has attracted many rearers to heifer calves rather than bulls. Although it is late in the season, meat companies want calf rearers to wake up to opportunities which are passing them by in the saleyards. "Its penny wise and pound foolish to let these calves go to petfood when the outlook for export beef is very good," AFFCO livestock manager Athol Murray said. Finishers will be scrambling for weaner bulls soon, especially if the New Zealand dollar falls further, Murray predicted. Rearers are wary because they were burnt last year and seasonal finance, milk powder and calf-meal prices are on the rise. more>>>

Lamb picked to improve
Farmers are quietly optimistic that lamb prices will improve this season, says farm consultant Will Wilson.
The Feilding-based Wilson and Keeling adviser says there will be fewer lambs around to slaughter and that should result in increased prices to farmers. And the hill country breeders need a better income this financial year. "Some of the best sheep and beef farm operators, genuine hill country farmers, ended up with cash deficits of between $50,000 and $150,000 last year. Many were going backwards," he says. Their farm returns are very dependant on the prices they receive for lamb. more>>>

Listing is now 'both options' for Fonterra
Fonterra is believed to be down to just two options in its capital structure review, both involving publicly listing part of the dairy cooperative. An industry source said that both options were to be peer-reviewed. One option would be for Fonterra to remain a vertically integrated company, a portion of it being listed. The other involved splitting off parts of the business and listing them. Under both options, less than 49 per cent of Fonterra would be listed, meaning farmers would stay in control of the company. A Fonterra spokesman said the company would not comment on capital structure, because the board was still reviewing its options. more>>>

Appointment of northern PPCS directors questioned
Questions have been raised over the process leading to the appointment of two directors to the board of meat company PPCS. Manawatu farmer Ian Grogan, who stood unsuccessfully last year as a director representing the company's northern South Island ward, said North Island shareholders were promised the chance to vote for directors in two North Island wards in elections planned for December. more>>>

The long path back from lamb price crash
Lamb suppliers are struggling to break even, let alone make a profit. So what is the large meat processor PPCS doing about it? Over the past few weeks the chief executive of meat processor PPCS has spoken to more than 2000 farmer suppliers in 30 meetings throughout New Zealand. Lamb suppliers, and not just those from PPCS, are struggling to break even, let alone make a profit. They want a turnaround. more>>>

Dollar fall not sure
Traders should not get too far ahead of themselves over the slowdown in the New Zealand economy, and nor should farmers expect the dollar to maintain a rapid fall, warns FXmatters.co.nz economist Anthony Byett. He thinks the Reserve Bank will say inflation is still a concern when it delivers its monetary policy statement on Thursday and that it will not lower interest rates for some time. Byett suggests any move could still be six to nine months away. more>>>

Hopes drowned by water canal scheme
I'm a little bit reluctant to draw attention to myself, but considering there is mostly only positive spin about the Central Plains Water (CPW) scheme in the media, I feel it is important to put a human face to those who are adversely affected. more>>>

The future of sheep farming
Lamb suppliers are struggling to break even, let alone make a profit. So what is the large meat processor PPCS doing about it? Keith Cooper does not look like a worried man at the tail end of a meat and greet roadshow. Over the last few weeks the chief executive of large meat processor PPCS has spoken to more than 2000 farmer suppliers in 30 meetings around New Zealand. For someone operating in harrowing times of low lamb returns, the 40-something Cooper has remarkably few grey hairs and an unlined complexion. Only the faintest of smudges around the eyes give a clue to the testing task his company and the rest of the industry face. more>>>

British farmers seek greener pastures in NZ
West Norfolk emigrant Andrew Luddington and his family are among a growing exodus of British farmers seeking greener pastures in rural New Zealand. In the last few years the cash-flushed farmers have bought $200m of property from one real estate company. For Luddington, his wife Miranda, and children Sophie and James, the reasons are many, but the frustrations of running an estate too small to support a large, high-maintenance heritage-listed house and dealing with over-zealous bureaucrats saw them uproot three months ago. With their children happily settled in a Christchurch school, they are now looking to buy arable land in the Mid-Canterbury area. more>>>

Don’t count on an instant meat merger
A major merger of New Zealand’s two biggest meat co-operatives is unlikely to proceed unless all shareholders are behind such a move, according to international business consultant Garry Diack. And Diack warned about 300 farmers at an information meeting organised by the lobby group, Meat Industry Action Group, not to pin their hopes on an immediate merger. more>>>

Farmers' proposal for pylon rent rejected
Energy Minister David Parker has rejected a proposal by farmers for annual rentals from power pylons on their land. He said yesterday such a plan would add $100 million a year to consumers' electricity bills. He turned down the proposal by Federation Farmers after meeting the group yesterday. The farmers wanted annual rentals for pylons on their properties despite most pylons having been there for decades. Mr Parker said landowners bought the properties knowing there were pylons on the land. There was no good reason power consumers should be expected to cough up for millions of dollars annually, Mr Parker said. more>>>

Fonterra fights rising currency to lift returns
Selling bone-improving milk through pharmacies helped grow Fonterra's Asian operations, but a dismal summer cut ice cream sales at home, the dairy co-operative's annual report shows. The company earned $13.9 billion despite its highest conversion rate of US67 cents - up 6.8 per cent on the previous year. Fonterra paid an average $4.50kg/milksolids for the 2006-2007 dairy season, representing $5.6 billion returned to farmers. Chairman Henry van der Heyden said the result was good considering the rising currency throughout most of the year, which combined with "mostly flat" pricing until the final quarter. more>>>

Review puts back PPCS meeting
PPCS is having its annual meeting later than usual to allow time for directors to consider strategic issues about the leading meat exporter's future. PPCS chief executive Keith Cooper said the annual meeting would be held on February 29 next year. The previous one was held in mid-December. PPCS was required to hold the annual meeting within six months of the board's balance date on August 31.Cooper said PPCS was appointing two new directors from the North Island to casual vacancies on the board and an annual meeting in mid-December where directors were elected had the potential to break the continuity of directors on the board. more>>>

NZ and UK plan lamb promotion
New Zealand and British sheepfarmers are to join forces to promote lamb in Europe and to avoid a repeat of the slump in British prices that cut more than $300 million from farmers' incomes in both countries early this year.
Britain's National Farmers Union and Meat & Wool NZ said yesterday that they would collaborate on marketing lamb in France late this year. more>>>

Wives unite on bumper dairy payout
The pressure group, ‘Dairy Farmer's Wives Demanding New Kitchens', issued a further strident press release last week. In it they claimed that their husbands had always claimed extreme hardship and this current talk of repaying debt was nonsense. "We've seen the newspapers about how much we will be making and if we don't get our new kitchens this year then we will be withholding all marital relations forthwith," their release demanded. more>>>

New defence in the war against parasites
Farmers may have a new class of anthelmintic drug to use in the battle against resistant internal parasites in livestock. Novartis Animal Health released promising data on a new class of parasiticide, known as the Amino-Acetonitrile Derivatives (AADs), on August 22 at the World Association for the Advancement of Veterinary Parasitology Congress in Ghent, Belgium.The company said commercial release of a new range of anthelmintic products containing one molecule of the new chemical class was being fast-tracked. However, it was impossible to commit to a launch date because more thorough trials and testing were required to obtain regulatory approval. more>>>

The science of saving water
As farfetched as it might sound, orbiting satellites could help make the water dollar go further for Canterbury farmers one day. A quick shine of the crystal ball by AgResearch science strategist Dr Travis Glare reveals space-age technology may help to conserve irrigation water in the future.An Australasian project, Pasture in Space, which measures pasture growth from satellites, could be extended to working out moisture content in soils more precisely, he says. more>>>

Good conditions for lambing
Good late-winter to spring conditions are defying forecasts of a poorer lambing, based on lower scanning, than last season. Early-lambing farmers have finished on the Canterbury Plains, but the region's long lambing spread, from June to December, will see many high-country farms not start until October. Meat & Wool's upper South Island manager, Gary Walton, said the grass was taking off again and reasonably wet subsoils had meant good conditions for lambing. more>>>

Sheep report unlikely to be released
A probing report on the problems facing the South Island sheep industry is out but farmers are unlikely to get a read. The report that has taken accountancy firm PricewaterhouseCoopers (PWC) two months to write up looks like going no further than PPCS and Alliance's board of directors. The two big South Island meat processors commissioned the "future options study" in late June. They wanted the team of accountants to break down options to improve livestock returns paid to the farmer suppliers of each company. So far neither company, usually fierce rivals, has signalled that the report will lead to a large merger, which some commentators are pushing for as a way of rebuilding a sheep industry struggling with low prices, fragmentation and over-heated competition. more>>>

The biological advocate
It sounds too good to be true. A farming system that promises to:
Lift production
Reduce reliance on pesticides
Reduce the use of chemical fertilisers
Make food taste better
Improve human health
And make farmers more money.
It's not organics and it's not a new way of farming conventionally. It's the best of both worlds, its inventor, American GP Arden Andersen, says. Called biological farming, it is claiming remarkable results on several farms in New Zealand. One is Central Hawke's Bay dairy farmer Kevin Davidson's 1500-cow farm, where in one year he has lifted milk production 10 per cent and cut nitrogen use by two-thirds. more>>>

Another South Island dairy firm director quits
A third director of a $100 million South Canterbury dairy company has resigned, citing dissatisfaction with its Russian control and ownership. Te Aroha accountant Kelly Diprose has quit the board of New Zealand Dairies, saying he is unhappy with the governance and direction of the company and the way the board operates. "The board needs to be united and not act dysfunctionally," he said. "I have been left out of the loop on some important matters and at the moment I believe the board does not have full control of the operation. Nutritek seem to have their own agenda." more>>>

A chance to act boldly
According to my timetable, the PriceWatehouseCoopers (PWC) report exploring options for co-operation between PPCS and Alliance must be due to be received by the respective boards about now. While I have no idea of the contents of the report, or what recommendations directors will make to shareholders, I believe as sheep farmers we are at one of those extremely rare times in history when we have the chance to do something that really makes a difference. We have the opportunity to create a business model better-designed and resourced to deliver economic benefits to its suppliers and to the New Zealand economy. We have an opportunity to reverse the current trend that sees the lamb industry being burnt at both ends of its supply chain. At one end, by the loss of valuable finishing land to dairying and at the other, by the strength of supermarkets and other buyers, which leads to value being left in the marketplace.Around 5.2 million stock units have been lost to dairying in the past five years, with a further 2.8 million forecast for the next three. more>>>

Price rise worries dairy farmers
Dairy farmers revelling in the huge Fonterra payout are worried about getting their pockets picked. Fonterra last week announced yet another increase in forecast milk solid prices to $6.40 per kg. International dairy prices are now 120 per cent higher than a year ago, creating a clamour for land and equipment.However, analysts are warning of the possibility of cost increases. FarmRight chief executive Jim Lee said he was "very conscious of the fact that there's an opportunity for suppliers to increase prices without justification". "We can see by watching TV and listening to radio that there's an advertising spend increase out there, and that's clearly suppliers looking to capitalise on the current situation." more>>>

Tough times tipped to ease for sheep and beef farmers
There are signs the future of sheep and beef farming is bright, about 60 farmers at a Rabobank-Ravensdown seminar in Feilding were told recently. Rabobank's general manager Ben Russell told them to hang in there, despite many struggling with record low incomes last year and predictions similar for this season. Mr Russell said although the currency is very volatile, Rabobank believes that both currency and interest rates are near the top of the economic cycle. "But in the last three weeks there has been enormous international pressure on liquidity and a bit of a crisis of confidence around lending and equity markets," more>>>

Asia greatest foot in mouth threat to NZ
New Zealanders need to think about Asia as being the most likely source of any foot and mouth disease (FMD) rather than Britain, says Massey University's Roger Morris, an authority on the disease. He is the director of the EpiCentre, which tracks disease outbreaks all round the world. Professor Morris says, "People who have been on a farm in Britain will be worried about the possible transmission of FMD, while someone who has been in the jungle in Asia is less concerned." It should be the other way round. more>>>

Website's water 'facts' disputed
Farmers are being blamed for all the water problems in Canterbury without claims being backed by science, says Dairy Farmers of New Zealand's chairman, Frank Brenmuhl. He said a new website by a Save Our Water group and put up by candidates standing for the Environment Canterbury (ECan) elections contained inaccurate information. "This is not based on fact. It is fiction and they are getting away with it because of a disclaimer." Fed Farmers considered taking legal action against the developers of the website, but were advised they were unable to be challenged because of the disclaimer. Brenmuhl said farmers would like to see the science that supports claims in the website that Canterbury beaches may soon be off-limits for swimming because of farm run-off. more>>>

Fine art of the ultimate fleece
Scientists in Australia are developing a merino flock that produces ultra-fine wool. The merino ewes show off their finery in the shimmering low morning light of a crisp New South Wales winter's day. Closely shorn, they stand quietly in a tidy yard. Their first-rate fleece has been clipped off, each bale worth its weight in gold. Lighter than NZ merinos, the 400 ewes, aged between two and seven years, are no ordinary sheep. They form the T13 research flock, a rich vein of merino genetics that is being scientifically developed to produce an ultra-fine fibre. more>>>

Dairy benefits flow to regions
The dairy boom is tipped to transform New Zealand's rural heartland, creating new opportunities for young people who will not have to leave the provinces for Auckland in search of work. On Friday Fonterra posted a new record for its forecast payout to farmers, with 11,600 Fonterra farmers getting an average of $689,000, up $200,000 on last season. In total, the payout will pump $8 billion into the economy, up $2.4b on last season. Economists say the "white gold rush" will bring the biggest boom to regions like Southland, Waikato, Canterbury and Taranaki. Westpac agri-economist Doug Steel says it is "one of the biggest positive shocks the New Zealand economy has seen, possibly similar to the Korean War wool boom", while ANZ chief economist Cameron Bagrie says: "We're sitting on a pot of gold." more>>>

the rest of the 2007 archive is here >>>

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