Conversion to A2 herds gets the nod
NZ will have its first purely A2 milk-producing herd in about 10 years. Westland Milk Products has confirmed its proposal to convert the herds of more than 330 West Coast dairy farmer shareholders to A2, despite the sudden death last month of its Christchurch-based chief executive, Scott Eglinton. Yesterday, WMP chairman Ross Scarlett said the decision had been made to go ahead with the conversion. A2 milk does not contain the protein in normal A1-A2 milk that some link to illnesses such as type-one diabetes, heart disease, autism, schizophrenia and Crohn's disease. Westland is the largest dairy co-operative in NZ behind Fonterra. About two-thirds of its milk is already A2 from jersey cows. "We did look at the implications, and the board decided we think it is a good thing. We have contacted various breeding societies and told them of our plans. It'll be a first for the industry." The conversion would start this year and was expected to be complete between 2016 and 2018, but some herds could be completely A2 much sooner, he said. more>>

US ripe for investment
A group of Kiwi businessmen is in the process of raising $26 million to help take our pasture-based dairying to the US. The businessmen have formed Tiller NZ, an investment company to venture into dairy farming in south-east Missouri and northern Arkansas. Tiller chief executive and dairy farm consultant Tony Robertson says that it started researching opportunities to take the pasture-based system to the US two years ago. Land in the Mississippi delta is considered some of the best cropping land in the US and can be bought with centre pivot irrigation in place for around $11,500/ha compared with $40,000/ha in NZ. Tiller directors, along with a handful of other friends and associates, bought land in the ‘boot heel’ region of south-east Missouri and have recently completed the conversion of two, 750-cow dairy farms. Robertson says the opportunity for further conversions is wide open. Conversion costs are $13.50/kgMS compared with costs in NZ ranging between $40/kgMS to $70/kgMS. more>>

Dirty dairy farms on notice
Enviroment Southland compliance manager Mark Hunter said a disturbing trend had emerged among some farmers who were beginning to build up a non-compliance history. "It seems to be that there are a lot of people who just aren't learning their lesson." Four farming companies had been fined after Environment Court hearings in June and last month for unlawful effluent discharge into waterways. A Fonterra spokesman said the company kept in close contact with the council to identify serial offenders. "While we have been able to work through all of the problems so far, if we reach the point where we can't, we will simply stop taking their milk," the spokesman said. Mr Hunter said repeated non-compliance would also eventually lead the council to review a farm's consent. more>>

Failing the farmers
By heck they are clever chaps these young sheep farmers. Jeremy Rookes, 40, stands proudly in a top paddock of his 275-hectare North Canterbury spread, tucked into the hills just behind Waipara.The grass is lush green again, revived by the recent welcomed rain. The sheep are frolicking."The last 15 years, farmers have just embraced change all the way. Our ewes are more fertile, the sheep are put together better, the lambs finish quicker," says Rookes.It is all super efficient. Natural as well. Pigs and chicken are grain-fed, pen-reared. Dairying is a hard work industry. Sheep farming is still a man and his dogs, with the mob living out in the open, pasture-fed.What a story of success. The best on-farm practices and a Rolls Royce product delivered to the world at Skoda prices.Rookes shakes his head. It's a disgrace. It's a disaster. In fact it's just downright (string of expletives deleted) embarrassing. How can Kiwi farmers be getting it so right and Kiwi businessmen getting it so wrong? "Basically farmers have done everything to lift their game, but our returns are diminishing all the time. It's just crazy." more>>

AFFCO response to mega merger
AFFCO's clear position was that the meat industry stands to benefit through structural change, and we would support this process. We applauded Owen Poole for the initiative that was taken; we believe strongly that a key to improving farmer returns is better marketing coordination between the major companies and further cost rationalisation.AFFCO imposed no pre-conditions, and recent media speculation that AFFCO took a similar position to ANZCO in withholding beef assets is simply incorrect.Part of the good faith agreement through the initial phase of the development of the proposal was suspending public debate on elements of the process until an appropriate time where more detail would come through for farmers to consider. We were disappointed to see that understanding breached and unfortunately through a series of press releases and company differences, the merger concept has lost impetus and an unpleasant post mortem has ensued.Against this backdrop our current position is that until there is tangible evidence that the SI coops can find a way forward together, and act jointly there is little point in AFFCO spending any further resource on this particular concept. more>>

Fertiliser preserves farms' viability
Sheep and beef farmers are urged not to put away their cheque books for fertiliser, despite the tough times experienced this season. Leading soil scientist and consultant Dr Doug Edmeades is urging hill country farmers to learn from the mistakes of the past when tossing up about autumn applications this year."Anyone farming today who recalls when subsidies came off fertiliser in 1985 will know a lot of farmers put the lid on any fertiliser applications. However, we know the longer term results of this were very detrimental to farm production for years afterwards."Even if they were only able to put a small amount of fertiliser on, Dr Edmeades said it was better than none at all. Since 1985 modelling technology had come a long way with computer programs capable of estimating the return on capital for applying fertiliser.Some better years in the past decade saw increased applications and now presented the opportunity to cut back on phosphate inputs. Super phosphate is the single most common and now expensive nutrient input on NZ farms.Modelling meant it was possible to calculate what an average sheep and beef property should work towards as an economic optimum for P levels."It also means bank managers will tend to look favourably on applications that preserve a farm's economic viability."more>>

Fonterra lifts shareholding in Soporole
Fonterra announced it has reached agreement to buy an additional 42.6% shareholding in Chilean dairy company Soprole.Fonterra will buy the shareholding, from minority shareholder Fundacion Isabel Aninat, a charitable foundation run under Canonical Law. The US$201.9 million purchase has received final approval from the Vatican.Soprole in February announced its profit for the 2007 calendar year rose 160% to a record 23.8 billion Chilean pesos, or NZ$66.3 million. Soprole has, on average, returned around NZ$25 million a year to Fonterra shareholders over the past few years.The purchase gives Fonterra 99.4% of Soprole, the second-most recognised corporate brand in Chile after Coca-Cola. Chile is a high growth market for the production and consumption of dairy products. Soprole is the country’s leading consumer dairy product business with a share of more than one-third of the domestic consumer dairy market.“Soprole is an example of Fonterra’s strategies of leveraging its cow-to-consumer expertise to build profitable businesses, and also securing new sources of fresh milk around the world,”Andrew Ferrier said. more>>

SC grows world's top fleece
The world's best ultra-fine merino wool has been grown in South Canterbury, earning its owners a generous bonus in gold. Gerald Piddock reports. South Canterbury has produced a fleece judged as being the world's finest wool and it has won the growers its weight in gold -- nearly $60,000 worth.The award was made to high country farmers Simon and Priscilla Cameron from Ben Ohau Station, near Twizel, in Sydney on Tuesday night.They won won the Ermenegildo Zegna Vellus Aureum International Trophy for the world's best ultra-fine merino wool and took with them the fleece's weight of 1.47kg in gold. It was the first time a New Zealander won the award, which is awarded to the softest and finest fleece measuring less than 13.9 microns and is contested yearly between the best ultra-fine merino growers over the world. more>>

New wintering rules coming
Environment Southland’s bid to reduce the impact of farming on the region’s creeks, streams and rivers involves farmers now being required to keep their wintering stock out of waterways.A new rule in regional council’s Regional Water Plan comes into effect today (May 1) and requires stock to be kept at least three metres from any watercourse during intensive winter grazing. The rule defines winter grazing as: ‘Grazing of stock between May and September inclusive on fodder crops or pasture to the extent that the grazing results in significant devegetation [the exposure of large areas of bare ground and/or pugging]. This is usually associated with break-feeding behind temporary electric fencing.’It is hoped the move, which has been endorsed by Federated Farmers, will reduce sedimentation caused by stock trampling the earth close to waterways during break-feeding. more>>

New 12-month lamb pricing model announced
As part of its commitment to develop effective partnerships with its supplier base and offshore customers PPCS has today announced a first for the meat industry with the introduction of a fixed price forward supply agreement from June 2008 to May 2009. These will also be eligible for any rebate distributions.Keith Cooper, says the pricing structure was required by the industry to more closely align supply with market requirements, and focus on growing a product for the consumer from conception to plate.“The forward supply agreements are also designed to give certainty to suppliers as to the final value of their product, in advance, so suppliers may make commercial decisions on farm, to capture the opportunities that certainty of value creates,” he says. The supply model requires supplier partners to supply a small proportion of lambs in the off season in return for receiving a more robust value in the peak season. Fixed values vary from a high of 420 cents per kilogram (cpk) in winter 2008 to 400cpk for summer 2009. The positive impact on those peak season suppliers who could deliver lambs during the winter would see peak season returns improve by around $12 per lamb over the past season. more>>

Agridata in the top 8 rural sites
A website ranking of the top ten channels in Nielsen//NetRatings' Market Intelligence Rural category for New Zealand visitors' unique browsers for the week to 27 April 2008.The top three channels in the category are the same as when we last released this category report in October of last year. They are metservice.co.nz/rural, fencepost.com and stuff.co.nz/rural.These rankings can be customised to the needs of your publications and articles. Additional information outlining data on unique visitors, page impressions, visit durations, and demographics of visitors can also be forwarded for incorporation into articles. Thanks for looking, now see where we rank. more>>

Fall for dollar underway?
A poor night for the NZ dollar added to suspicions the long foretold fall of the kiwi may be under way.During the overnight session the kiwi hit a three-month low against the greenback, and made it down to its lowest level against the Australian dollar in nearly half a year. "All the action in the NZD took place overnight as the rot became more evident to the offshore market," the ANZ bank said in its morning brief.The NZ dollar had broken down through major support around A83c against the aussie overnight, setting it up for a further run lower.Exceptionally strong Australian inflation data last week, along with a softer tone from the Reserve Bank in this country, had highlighted the diverging economic and policy outlooks between the two countries, ANZ said.That comes against the backdrop of a rising US dollar, as expectations grow that the Federal Reserve will soon signal the end of its easing campaign.During the overnight session the kiwi got down to around US77.25c, having been at a near four-week high just shy of US80.40c a week ago. more>>

The Concept: end of a vision
The failure of a proposed merger of two of NZ's biggest sheepmeat processors has left farmers dejected. Gerry Eckhoff points across the valley to one of his greener paddocks, just north of Roxburgh."That's what this is supposed to look like – except longer," he says dejectedly, from a comparatively bare paddock. Eckhoff, who farms 2800-hectare Mount Benger Station, explains there is not enough winter feed to keep all his perendales so he is sending more ewe lambs to the works at this time of year than ever before.Eckhoff's interest in the merger extends beyond his bottom line – he's a shareholder in both companies. News of the mega-merger's collapse is a bitter blow for farmers, Eckhoff says, after three tough years where dry weather has been exacerbated by appallingly low meat and wool prices."Having farmed through the '80s, when subsidies were removed, I think this time is just as bad. "Eckhoff blames belligerent attitudes by meat company executives and boards for the sheep industry's "demise" over the last decade and a general lack of confidence by farmers. more>>

Farmers fined for pollution
Fines of more than $48,000 were imposed on North Otago dairy farmers when they appeared in the Oamaru District Court yesterday. Judge Jon Jackson said pollution by dairy farmers was an endemic problem and they needed to be more careful. Invernia Holdings Ltd was fined $20,000 on a charge, together with Blake Rowe, of discharging dairy herd effluent on to production land in a manner which contravened the Otago Regional Council’s regional water plan. It was alleged ponding of effluent occurred in October on Wilson Rd. The defendants were ordered to pay court costs of $131, solicitor’s fees of $113, disbursement $99.49 and reparation $793.75. The company was also fined $12,000 and $500 on two further counts in September and October. Court costs and solicitor’s fees were ordered on both charges. Rowe was also fined $50 on the three counts, with court costs and solicitor’s fees. The company and Rowe admitted all charges. more>>

Unvaccinated sheep 'pose serious risk'
A new study of Hawke's Bay meatworkers butchering sheep has revealed 10 per cent of them have been exposed leptospirosis, confirming sheep pose a serious risk as carriers of the bacterial disease.Leptospirosis affects the kidneys in humans and can have effects ranging from a mild flu-like condition to renal failure requiring hospitalisation.Meatworkers are now one of the occupations most at risk of contracting leptospirosis, and made up a third of notifications in 2006. Te Puke meatworker Johnny Taewa, 50, died after he caught the disease in February 2005 at Affco's Rangiuru works.During 2003-2005 leptospirosis led to 207 hospitalisations, but researchers believe that many cases are not reported as it takes up to 10 days for leptospirosis to be detected by blood tests, and mild cases can be mis-diagnosed as influenza. more>>

ACC taps farmer victims for its on-farm safety advice
Too many farmers are turning their hand to tasks for which they lack either the right skills or the right tools, says ACC.The accident compensation lobby plans to use true stories of farmers who have suffered long-term injuries to push its message that a "she'll be right" attitude on farm safety isn't worth the risk. Many farmers think that getting injured is just part of being a farmer and that if it happens they just have to "harden up" and get on with it, said ACC's agriculture manager, Peter Jones."Their sense of 'can-do' leads to them do jobs or activities that they may not have the skills or the equipment for," he said. "That can easily end in injury."Between July 2006 and June 2007, 4500 farmers were injured so badly they were off work for weeks or even months."If a farmer is badly injured their lifestyle and income is at serious risk," said Mr Jones. "Not only must they pay someone else to do their job for them, they may never be able to farm again". more>>

Tatua's payout forecast at $7.50
Tatua Dairy Co-operative farmers look set to receive a payout of $7.50 if indications given at their last supply meeting are correct and it would put them 20 cents above Fonterra's record forecast payout.
Ngarua farmer Dave Fish said the figure was more than a rumour."That was the indication from the company at a recent meeting," he said.Dave Sing from Morrinsville said he hadn't heard any figures but said the Tatua directors said they would be competitive with Fonterra. "I think they will match Fonterra; we are in the same markets in a lot of respects."Tatua chairman Steve Allen would not place any figure on the payout, saying Tatua would make an announcement in July. He said while production in general had been down, the returns were still looking promising. "Some of our farmers might be down five per cent, some down as much as 20. We will have a range within our supply," he said. more>>

Anzco chairman criticises PPCS revelations
One of the parties courted in the failed meat company merger has accused PPCS of trying to make Alliance Group chairman and merger instigator Owen Poole look unprofessional by releasing details of the merger talks. Anzco chairman Graeme Harrison said in an interview that PPCS was playing politics and he questioned whether the Dunedin meat co-operative ever intended to engage in the merger process.He was reacting to a letter released by PPCS on April 21, which set out its reasons for not signing a co-operation agreement required by Alliance and a time-line of the negotiations.Mr Harrison said releasing such details breached confidentiality and was not accepted business practice.PPCS did not sign the cooperation agreement required to advance the mega merger, citing concerns about the process and that companies, such as Anzco, wanted to retain their beef business, which PPCS feared would undermine savings from a merger. Mr Harrison described the beef concerns as a ‘‘smokescreen’’, adding that he believed PPCS did not want to pursue a merger. more>>

PPCS posts $11.2m half-year profit
The nation's biggest meat processor PPCS has turned around its performance posting an $11.2 million profit for the six months to February from a loss of $14.6m the previous half-year.Containing costs, reducing debt and better marketing were responsible for the $25m turnaround between the half years.Last week PPCS rejected the concept of a mega merger with competitor Alliance and three other meat companies because it was unhappy with the structure of the merged entity where the beef business of at least one of the big companies would not be included. It pointed then to better fortunes for sheep meat internationally and reiterated that today.Chief executive Keith Cooper said the signals for the rest of the financial year were positive. The company was sticking with its focus on debt reduction and improvements in operational performance. Prices for lamb on the international market were improving. more>>

‘End A1/A2 confusion’
Dairy farmers want a clear message from stakeholders to end the confusion surrounding A1 and A2 milk.Fed Farmers dairy section chairman Frank Brenmuhl says they need good scientific evidence to make the switch from A1 to A2 milk.Brenmuhl told Rural News farmers are not the villains in the battle between the two milk types.‘What we need is a really clear steer from the authorities,’ says Brenmuhl.His comments followed a call by a health expert for farmers to switch from A1 to A2 milk.Professor Boyd Swinburn, who was commissioned by the NZ Food Safety Authority (NZFSA) in 2004 to review evidence that A1 milk led to health problems, has revised his initial findings.Swinburn earlier advocated more research to prove A2’s benefits.He now believes that there is strong evidence for farmers to take action and switch their herds to produce A2 milk.
more>>

'Radical' land-use restrictions loom
Farmers throughout the country should brace for regulatory ‘enforcement’ to control the impacts of pollutants from primary production.That was the bleak warning resonating around a Taupo woolshed meeting where farmers were given an update on plans by Environment Waikato (EW) to impose nitrogen discharge allowances (NDAs) on properties in the catchment.The unprecedented land-use restrictions are a bid to stem the failing water quality in Lake Taupo, largely a result of farm run-off.But while those gathered were informed they have the dubious distinction of being the first farmers in the country to be nitrogen ‘capped’, Lake Taupo Protection Trust chairman John Kneebone says they won’t be the last – he warns rural landowners around the country to prepare for similar regulatory constraints.‘That’s the reality of the situation [farmers] are in at the moment. more>>

End hate and distrust, meat firms told
Meat company bosses were yesterday told to put aside egos and personality conflicts and make changes to an industry many farmers fear will not survive unless profits improve.The major prize of a meat super company may elude them, but 400 angry sheep farmers who met in Gore yesterday still expect meat companies to initiate change to improve lamb prices.Meat Industry Action Group chairman Keith Milne said the future of the industry was at stake, but was threatened by ‘‘a culture of hate and distrust’’ between Dunedin’s PPCS and Alliance Group, of Invercargill.Previous conflicts had to be put to one side, and the companies needed to focus on the future.The meeting, called on Monday by the action group, followed PPCS’s decision last Friday not to sign a co-operation agreement requested by the Alliance Group, part of its plan to merge five companies and create a super company. more>>

The worrying cost of carbon
Federated Farmers, Charlie Pedersen says NZ farmers are concerned about their ability to farm in a sensible and sustainable way.He told a forum of the Australian Farm Institute, in Queensland today that on the one hand farmers are being asked to produce more food for an increasing world population, but on the other hand are facing significant restrictions imposed on them by both central and local government. “By 2030, the population of the world will have risen from 6 billion to 8.3 billion and at the same time standards of living will rise in many countries prompting demand for more and better food. But environmental lobby groups are seeking to have rules introduced that would unnecessarily restrict the intensification of land use and mean that farmers will be unable to meet increasing demand for food in the future, said Mr Pedersen.“The detail or lack of it in the Emissions Trading Scheme (ETS) which is part of the Climate Change Bill currently before the NZ Parliament is also of concern to food producers. I have seen figures on the cost of carbon credits which, in the present situation, would put a significant number of food producers in NZ out of business. It would also mean more imports of food and an overall lowering of the standard of living in NZ. People seem to forget that the primary sector earns 47 % of export returns and around 40% of NZers are employed the food industry, Mr Pedersen said. more>>

PPCS slams Alliance proposal
The Alliance Group's mega meat company proposal was poorly managed and constructed and it was inevitable it would fail, PPCS chairman Eoin Garden said.In a letter to shareholders yesterday, Mr Garden said there were some fundamental flaws in the concept, which was why PPCS did not sign the co-operation agreement with Alliance. Mr Garden said Alliance had failed to provide "proof of concept" and had not provided an industry solution, but a piecemeal acquisition model which was not what had been put before shareholders to date. He also said Alliance had failed to consult PPCS about the initial concept, which Alliance chairman Owen Poole has vehemently denied.Mr Poole described the contents of the letter as "bullsh*t" and that PPCS' unwillingness to co-operate had effectively brought industry reform to an end. He said it had broken the trust with the other meat companies, Affco, Bernard Matthews and Anzco, the latter of which had already signed the agreement. "That position is likely to have been lost now this is all out in the media for everyone to read," Mr Poole said. He said PPCS had been asked to commit to nothing except enter a process and he was "very disappointed" that talks had stalled at the first hurdle. more>>

Uruguay herds set to turn profit
NZ Farming Systems Uruguay has put out an earnings upgrade after high milk prices and says it is on track to turn a profit.The PGG Wrightson offshoot, which has a herd of 4300 cows in Uruguay, said it was selling milk for $7.35 a kilogram of milksolids - a 25 per cent increase since the company listed in December.Uruguay's biggest milk processor, Conaprole, takes most of NZFSU's milk."We believe it's likely that prices will remain at close to record levels through at least the next 18 months, given a weak US dollar and a limited supply," NZFSU chairman Keith Smith said.The company now expected to make an after-tax profit of $1.89 million in 2007-08, up from the $1.26 million forecast in February, before a performance fee is paid to PGG Wrightson.The PGG Wrightson group general manager, financial services, Michael Thomas, said that, after the fee was taken out, NZFSU was heading toward a loss of about $8 million."We expect to be in the black for 2008-09." more>>

Farming returns lure city folk
The dairy industry's million-dollar plus campaign to plug a shortage of farm staff has captured the imagination of hundreds of city slickers. The campaign has hooked in an estimated 600 possible recruits for a dairying job.One of the dairy industry's biggest woes is too few workers. Maxine Lacey, 24, from Moores Valley, Wainuiomata, tried life as a dairy farmer on Saturday. She and 13 others from the lower North Island spent the day working on a dairy farm in Martinborough. Ms Lacey, who works in a Lower Hutt garden centre, said she had struggled to find the right career since she left school.She grew up on her parents' four-hectare farm in Wainuiomata which had sheep and cows "to keep the grass down". "I've had really strong feelings about it [farming] anyway. I've always thought it was interesting. I used to watch Country Calendar when I was young."The campaign, though rounding up those with an interest in the industry, does not guarantee jobs for potential recruits, but does offer training and qualification support. more>>

Disappointment at stalled restructing discussions
The Meat Industry Taskforce has today considered last week’s announcement that the industry restructuring project led by the Alliance Group had failed to progress to the next stage. Chairman of the Taskforce, Sir John Anderson said the Taskforce was disappointed that discussions had stalled.The Taskforce has been compiling industry information to support recommendations on how the industry might be re-organised to deliver long- term sustainable returns for farmers and the wider industry.Sir John said the Taskforce has been fully supportive of the restructure concept and has been acting in a supporting role to assist the commercial discussions to bring them to a conclusion. “We remain convinced that the merits of the concept are still worth pursuing and further discussions are planned this week to encourage the talks to resume,” Sir John said.The Taskforce has requested that farmers and media commentators allow these talks to conclude before further comment is made. more>>

Farmers told to get control of meat industry
Farmers are being urged to take control of their industry after PPCS rejected the Alliance Group's proposal to create a mega meat company.The Meat Industry Action Group will ask PPCS shareholders to sign a directive that will force a special general meeting of the co-operatives, at a meeting in Gore tomorrow.Action group chairman Keith Milne said PPCS had blatantly disregarded the views of its shareholders when it failed to progress the concept."I'm bitterly disappointed that shareholders were not consulted."Now is the time for grassroots farmers to stand up and take control of their company," he said.Mr Milne said only 5% of PPCS shareholder votes was required to call a special general meeting and he predicted "all hell would break loose" if the farmer-owned co-operatives did not commit to more talks and mediation. Benefits of about $400 million a year or an extra $15 a lamb had been touted from the creation of a mega meat company. more>>

Dairying: a robotic future
Technological changes will make dairy farms of the future a vastly different beast to those of today.With the advance of technology over the next century, who knows what the dairy farm of the future will look like? Letting the imagination run riot, it's feasible that a farmer, or more likely a collarless, lycron-suited manager of a big corporate, will be stationed at a command post.A suspended 360deg screen will portray three-dimensional images that can be zoomed-in or reduced at a push of a button, or possibly by eye signal or a keypad imbedded in the skin.Roving farm-cams and satellite scanning will track pasture growth, animal movement, sophisticated feedlots, robotic milking and giant pop-up irrigation pods activated by super-smart computers. Dairy cows will almost certainly be genetically engineered and make the 2008 models look like plodding Morris Minors. Space-age milkers will make their own way to robotic plants for completely automated milking. Their excrement is processed as they are milked, and they will top-up with a science-based diet as they pass through mid-stations directing them to the next pasture. Fences, like ipods and laptops, will be a distant and fusty memory as livestock are contained by electronic chips that give them a sharp reminder should they come too close to a virtual barrier. more>>

Westland foots it with industry giant
The West Coast's dairying minnow is more or less on par with the record payout of $7.30 forecast by the big fish, Fonterra.Westland Milk Products told its suppliers they could expect a payout at this stage in the range of $6.90 a kilogram of milk solids to $7.10 at the beginning of the month. Fonterra's unveiling of its record payout last week, spiked by drought, particularly in the North Island, had some farmers wondering if the water-rich West Coast was heading for an end-of-season count of $8/kg. Chief executive Scott Eglinton said the co-operative would continue to review its position, but this speculation was not helpful.He said Westland was performing above last season's milk production."We are very pleased with the current ($6.90 to $7.10) result, given 22 cents of Fonterra's forecast is due to their added-value investments. Their milk return is $7.08 so we are pleased to be within similar levels." Fonterra makes Westland's annual production in a week. more>>

Mega meat merger canned
The $5 billion mega-meat merger concept is dead.Now the parties are arguing over who is to blame. Alliance chairman Owen Poole, who proposed and championed the merger of five meat firms as a rescue plan for the ailing sheep-meat industry, yesterday declared "The Concept" dead.Invercargill's Alliance and traditional rival PPCS, headquartered in Dunedin, could not agree on critical points.Poole said that support to advance the concept had been received by four firms, including Alliance. Alliance had asked the companies to commit to a valuation method for valuing the firms and their assets as part of the merger.But PPCS, the nation's biggest meat processor, was not prepared to commit to the process and to the possibility all beef businesses of the meat companies might not be included. PPCS's involvement was essential to get the gains. Alliance has claimed merger gains of $400 million -- or $15 a sheep -- if a super-meat firm had 80% of the sheepmeat market. But PPCS said Alliance had not provided the evidence.However, in PPCS's view the proposal was altered in concept in the intervening two months. Alliance put forward a five-way meat company merger, but at least one big meat company wanted to keep its beef businesses out. more>>

Open letter re meat industry
NZ sheep farmers have seen their share of the retail price of lamb in Europe shrink from 80% 40 years ago 45% in 2001 to less than 20% currently. Compare sheepmeats to the poultry industry where chicken producers get nearer 50% of the retail price of their product. 75% of the world across border sheepmeats trade is NZ grown yet due to the highly fragmented structure of NZ’s industry we are failing to take advantage of this position. In fact it is the supermarkets, who have themselves consolidated into a few, powerful buyers, that are taking advantage.We now have a chance to finally cooperate as farmers and form a company owned by farmers that can make the most of our strong position. We beg our cooperatives and especially their farmer directors farmers to shake off the demons of the past and to take this opportunity. Perhaps Alliance should have moved earlier to merge with PPCS. Likely Alliance would have been wise to include PPCS in designing the consolidation plan. Nevertheless the wrongs of the past can not be righted now. The only really important fact before us is that Owen Poole has put together a strong plan for unifying at least the sheepmeats sector of the NZ meat industry. Marketing of Venison and Beef would also be strengthened by the Poole plan but we accept that not all private sector beef assets will join the new cooperative. The farmers named at the foot of this letter strongly support Mr. Poole in negotiating the best deal that he can on our behalf, even if this does not capture all beef assets. We urge the directors of PPCS to also support him.The current concept isn’t about existing companies, it is about creating a structure where the farmer and our company and its employees are fairly rewarded for their endeavour. All the power is in the farmers hands. We ultimately own these cooperatives and we decide where we will send our lamb.We urge our fellow farmers to contact their cooperative directors and to ask them to support Owen Poole’s plan. more>>

Farmers take charge as rain falls
It was champagne day in drought-stricken Waikato on Monday with steady rain of close to 20mm recorded in Hamilton, the best since 30mm on April 1. But it was bagged nitrogen rather than big bottles of bubbles that farmers broke out in the rain, desperate to stimulate late-autumn and early-winter grass growth. Farmers decided that with 50mm of rain so far this month, nitrogen works best in the paddock, not stored in the shed, and that more rain is to come.After months of drought dictating the terms of farming, farmers are back in the driver’s seat. Many Waikato farmers face a feed ‘hole’ of 100 tonnes or more of grass drymatter, in city terms, 500 tonnes of standing grass, that they must fill between now and calving in July. DairyNZ farm systems programme leader Bruce Thorrold says: ‘The window of opportunity for applying N is from now to Christmas. We must grow grass; apply N little and often.’ more>>

Lamb off the rack, says PPCS
PPCS, the nation's biggest meat processor, says the fortunes of lamb are improving, with immediate benefits without the big costs of a meat company mega-merger. Its rival, Invercargill-based Alliance's chairman, Owen Poole, replied yesterday that "it looks like they are setting up the concept to fail". Worried farmers from the lobby group Miag called on the the two big meat processors to bury historic "demons" and take the opportunity to form a bigger and stronger sheepmeat exporter. Dunedin-based PPCS is cold on a super meat company plan, put forward two months ago by Alliance, which is looking for a commitment by the end of this week.PPCS chief executive Keith Cooper said yesterday the company was still in talks about it. But PPCS's statement yesterday indicates it is unlikely to commit.Cooper said international lamb prices were rising. He has been on a two-week global market analysis trip with general manager marketing Glen Tyrell. more>>

NZ and the survival of the fittest
NZ's meat industry will have to make some big adaptions in order to keep pace with the rapidly evolving global meat industry, a new report has warned. Changes in supply and demand combined with increasingly volatile commodity cycles, complex foreign consumer demands and dynamic agricultural conditions will all conspire to force producers and processors to innovate and seek new efficiencies. The Global Focus report titled NZ’s meat industry – adapting to change, by leading food and agribusiness bank Rabobank, says that unprecedented shifts in demand and supply and increasingly volatile commodity cycles will conspire to force producers and processors to innovate and seek new efficiencies.However despite the changing land use, static or falling livestock numbers and rising production costs that are facing the industry, international market conditions for NZ’s meat products are largely favourable, and should offer opportunities for improved profitability for farmers in the medium to long term says the report’s author, Rabobank senior analyst Hayley Moynihan. more>>

Deer industry conference in Southland
The Southland deer farming industry will set the scene for the 2008 Deer Industry Conference. More than 250 deer farmers are expected to attend the formal part of the conference to be hosted by the Southland branch of the NZDFA at the Ascot Park Hotel in Invercargill on May 13 and 14. The conference theme — Positive Action — will open with a seminar by Hayley Moynihan, from Rabobank, who will present a view on global and European trends in red meat consumption.This will lead into one of the more topical discussions — the Alliance Group's mega meat company concept. Natural Producers Company founder Forbes Elworthy, Alliance Group chairman Owen Poole and PPCS chairman Eoin Garden will present their views on how venison fits in with the creation of such a company. The controversial Climate Change and Emissions Trading Scheme and its effects on the deer industry will then be covered by MAF climate change group leader Julie Collins. NZDFA's Bill Taylor said the Government's inclusion of methane emissions from farm animals will place a huge challenge in front of farmers. more>>

Phosphate not so super, say scientists
The merits of using super phosphate as a cure-all fertiliser came under fire from a group of independent soil scientists speaking to farmers about soil health.More than 20 farmers from as far away as Maramarua and Pukeatua joined locals from Te Awamutu and surrounding areas last week at the Oparau Club rooms to hear the scientists speak on healthy soils and pasture. Dairy farmer Edgar Smith from Maramarua, with farms at Mamuku and Waerenga, said there was a lot of bad advice being given to farmers. "It's hard to sort out what we should be doing," Mr Smith said. Philip Barlow, who holds a degree in botany and soil science, told those gathered that phosphate fertilisers were not a lot of use unless the microbiology of the soil was looked after.Disputing the claim that super phosphate was not acidic, Mr Barlow said: "There is a cumulative effect of using acidic fertilizers now showing up in agriculture." more>>

PPCS should pull finger and push for industry merger
Eoin garden, chairman of PPCS, in an April 11 letter to shareholders, writing about the proposed merger: "At this stage we do not believe it is appropriate to commit significant funds and management time until a compelling business case has been prepared," In the meantime, we have $7.30/kg milk solids, and room for improving, which will accelerate the decline in sheep numbers making it even more difficult for processing companies. I have to congratulate dairy farmers for creating the environment they currently enjoy. It was the dairy farmers who supported and drove the creation of Fonterra and they deserve the rewards. Sheep and beef farmers deserve the same business environment and rewards but it's going to take even more resolve now to create it because at least one key player has got the pip. The solution is for PPCS shareholders to make it clear to their directors and chairman what their expectations are. more>>

Crisis, what crisis, Rabobank man asks
A sheep industry in crisis? Think again.Rabobank NZ general manager Ben Russell said lamb was going through a cyclical low and continued talk of a crisis could become a self-fufilling prophecy. "All the talk about an industry in crisis is not correct, it's part of a cycle we are going through," he said. The dairy industry was in a similar situation several years ago, he said, but strong demand for dairy products had pushed the milksolids price up to nearly $7 a kilogram. While lamb returns were not high enough, farmers had underestimated the impact of the NZ dollar, Mr Russell said at the West Otago monitor farm field-day at Wilden last week. "If we were at 55c US, the lamb schedule would be higher than where it was in 2002," he said.Mr Russell believed structural change was important for the sheep industry going forward, but he said it was not the fundamental cause of low lamb prices. "The restructure will not solve all our problems, but better collaboration in the markets and procurement will be a good thing," Mr Russell said. more>>

Budget for stock condition
Farmers should make monitoring ewe condition-score the first job of the week. This will help predict how the 2007-08 drought will impact on spring production.If capital stock have been maintained at optimum weights by supplementary feeding then the production impact of the drought going forward is reduced. On the other hand, if stock are in sub-optimal conditions, spring production figures and the budgeted income should be scaled down.If ewes are below ideal tupping condition score then the choices are selling them, buying supplementary feed to get them to weight or feeding them maintenance only and taking the hit. The latter option is unattractive with the reality being lower lamb sale numbers (and probably weaning weights) for next season. Plus lighter than desired ewes are horrible things to look at all winter. If the per head cost of feeding ewes through winter doesn't stack up with lamb sales at the other end, then some stock may have to go. The same analysis needs to be done for other stock classes like cows. Matching feed demand with cash and feed supply while maintaining flexibility is a planning exercise characteristic of strong businesses. more>>

Looking at a future with carbon
Craig Fagan believes his Piopio sheep farm is producing enough carbon to sell it on the Chicago Futures Exchange.Unlike his Australian counterparts, who have been trading on the exchange for some time, Craig has to wait for eCogent to measure the carbon levels in the soil on all 100 of its clients' farms before he can make any cash out of carbon.He and wife Sarah jointly farm the property, finishing about 30.000 sheep annually. They have used the measuring tool developed by Palmerston North-based Landcare Research scientist Graham Shepherd which estimates carbon levels based on the depth grass roots grow and their proclivity. But the estimates are not precise enough for trading."From the testing they have done we should be carbon positive. There's a detectable difference in calcium and microbiological soil life." He thinks there could be more cash to be made growing carbon than sheep farming alone."There's potential to make more money out of growing carbon credits, than out of livestock trading," he says. more>>

Another record year for CRT
South Island rural service co-operative CRT is on a roll.The co-op's $570 million revenue is up 20% for the year ending March for a fourth season of record turnover. In the last two years eight branches have been added to its network including an Ashburton store last week, bringing the total to 30 outlets. More recently an extra 1000 shareholders have joined the co-operative of 22,000 farmers. CRT chief executive Brent Esler said the co-op planned to carry on expanding its card, real estate, fuel, seed and feed businesses in the South Island. Its feed operations, including manufacturing, was leading growth in the divisions, but there was growth across the board, he said. "We are in a very strong growth plan of 60% growth over four years since our last big merger in 2003 with Greenfields and Landbase." more>>

Big jump in farm sales, prices in Southland
Farm sales and prices in Southland have made a dramatic jump in the past year, with high milk solid payouts boosting property sales.
Real Estate Institute figures released yesterday show for the three months to March, 104 farms sold in the region, a 42% increase on the 60 sales for the same period last year.The median price rose to $2,690,500 from $2,547,500 in February and $1,160,000 in March last year. Westpac'sPete Moynihan said dairy payouts were behind the property boom."The payout is very high compared to historically so that is driving it a lot." With a more profitable dairy industry people were buying farms, run-offs and additional properties. Top-end conversion land had doubled in value, from $7500 last year to $15,000 an acre this year, he said Mr Henderson said farm values in Southland were now catching up with the other dairying regions, Canterbury and Waikato.more>>

Farmers finding it tough
Many Otago sheep and beef farmers will report cash deficits of up to $200,000 this year and be forced to survive on the growing equity in their land.A combination of low product prices, low production because of the dry summer, and rising costs has created one of the worst financial crises in the sector in 20 years. For some, it will be the second successive year of cash deficit, but banks appear supportive, due in part to high land values and farmers being able to earn cash from supporting the dairy industry through winter grazing of dairy cows, grazing young stock or growing feed. Dunedin accountant Craig Wyatt, said unlike the 1980s, sheep and beef farmers had equity and were optimistic conditions would improve, citing moves to restructure the meat industry and an international shortage of lamb likely to push up prices. Rabobank Otago manager Jeffrey Morrison said southern sheep and beef farmers should be thankful for the dairy sector.‘‘Sheep and beef farmers aren’t that comfortable down here, but their confidence is still OK because their asset value is underpinned by dairying,’’ Mr Morrison said. more>>

China's meat and dairy consumption creates opportunity
Big increases in China's consumption of meat and dairy products and growing concern about the sustainability of its domestic livestock industry could mean opportunities for our exporters, says Professor Allan Rae from the University’s Centre for Applied Economics and Policy Studies. As China’s livestock revolution has gathered momentum, Professor Rae, in collaboration with Chinese researchers, has been studying the implications for global markets. The research team is studying livestock productivity developments in China, the influence of livestock production on rural household incomes, and a survey analysis of the dairy farming situation in inner Mongolia. “A big unknown is to what extent the domestic industry can continue to supply this growth, and especially as sustainability becomes a more important issue in China. Environmental problems are already occurring, with some large-scale livestock operations having been relocated away from suburban locations, such as dairy farms moving out of Beijing area and medium/large scale hog farms being forbidden in Shanghai.” more>>

Milk looming as the new 'white gold'
Scientists are only scraping the surface of milk's potential, says Minister of Ag Jim Anderton. Mr Anderton likened dairy to the petrochemical industry, while speaking at a Large Herds Association conference in New Plymouth last week. As with the discovery of oil and its various potentials, it was likely that milk contained similar promise, he said.The Government's $700 million Fast Forward investment into science and innovation, announced last month, would make research possible."I have no doubt that some very smart scientists will also find ways to crack milk into a myriad of elements and lay the foundations for entirely new biotech industries."Massey University's Riddet Institute co-director Harjinder Singh agreed, and said Mr Anderton had it right on the dot. Professor Singh, also chairman of Fonterra dairy science, believed there were so many components of milk yet to be discovered. And he was confident that Massey University was at the forefront of dairy research, he said. more>>

'PPCS sets conditions for industry merger
The country’s largest meat company has backed an industry merger but has outlined its conditions for that support.The chairman of Dunedinbased PPCS, Eoin Garden, said in a letter to shareholders that the board’s support was subject to proof of concept, a sound business case, the commitment of key participants and transaction issues.‘‘In principle, we support the concept of a combined industry model. However, this concept must be based on sound commercial grounds and be subjected to comprehensive analysis,’’ Mr Garden said.The company would not commit funds or management time to an industry merger until it saw what he called a ‘‘compelling business case’’MIAG John Gregan said he was heartened to hear of PPCS’s support, but ‘‘astonished’’, the company was not committing funds and management time to the proposal until it saw a business case.
‘‘The time for tinkering with a failed model and sitting on the fence is long past. Combined with the known factors impacting on current farmer profitability, we see the longterm benefits of industry reform clearly outweighing any shortterm risks,’’ Mr Gregan said. more>>

'Nitrogen wrongly blamed'
Nitrogen fertiliser in NZ pastoral farming has been wrongly vilified, says Dr Jamie Blennerhassett, technical services manager at Summit Quinphos NZ Ltd. He gained his doctorate from Massey University specialising in nitrogen fertiliser use on hill country.The key pollution issue facing NZ waterways is phosphate run-off, he told the NZ Large Herds Association conference in New Plymouth. Regulators including regional councils must shift their attention from N to P; the N issue has been over-hyped. It started in NZ with nitrate in groundwater blamed as the cause of ‘blue baby syndrome’ and that link was ‘a load of rubbish’, Blennerhassett said. And the N bogey continued when proponents of the big Lake Taupo clean-up said N was to blame for its declining water quality.Blennerhassett says the real cause of eutrophication is the ratio of phosphate to nitrogen. A new study of 1100 freshwater sites in NZ shows only 49 of these are in the range that would support algal growth.The dairy industry must take on a ‘significant political involvement’ to manage the risk to their industry posed by misinformation. ‘Act now, to get the media on your side.’ Dairy consumers are mainly urban, with a growing clean and green ideology and the media controlling that perception. more>>

Farmers to pay more for carbon
This week’s increase in the cost of carbon under the Government’s Emissions Trading Scheme will cost NZ agriculture $850 million a year when farming joins the ETS in 2013.Cost to farming had previously been estimated at $600m a year. News of the increase came from Dr Harry Clark, AgResearch Grasslands, speaking at the NZ Large Herds Association’s annual conference in New Plymouth. He says agriculture is NZ’s largest contributor to greenhouse gases. Global warming means average temperatures in this country will increase by 1degC in the next 30 years and by 2degC by 2080. He described the Kyoto Protocol as a ‘modest’ start toward combating global warning. It is not the whole answer because China and the US, the world’s largest greenhouse gas producers have not signed up. Clark has just returned from Europe where he found sentiments that food production should be treated as ‘good’ emissions. International food stocks like wheat are at historically low levels – will the world be able to produce enough food for it eight billion inhabitants by 2030-2050? more>>

2008 Feed Availability Study & MAF weekly summary
Current pasture covers in drought affected areas are down by 30-40 percent on normal, while normal supplementary feed reserves are down by 40-50 percent. Dairy farmers are responding to the drought by drying stock off and buying in supplements, while sheep and beef farmers are selling off stock, including in some cases capital stock. more>>

Rise in payout won't compensate farmers
The average dairy farmer could get an extra $40,000 this season if Fonterra raises its payout forecast to $7.30 per kg of milksolids but it won't be enough to counter the effect of the drought. Agr economist Doug Steel said farmers could receive as much as $7.30 per kg of milksolids from Fonterra, which is due to revise its payout forecast this week. Westpac had been saying the payout would be about $7.20, while Fonterra is currently forecasting $6.90. A 40c rise to $7.30 would put an extra $40,000 in the pocket of the average Waikato dairy farmer producing an average 100,000kg of milk solids. Waikato Federated Farmers president Stew Wadey, whose 170-cow herd is about half the average, said the drought had cost him between $70,000 and $80,000 because he had stopped milking nearly two months early and had to buy supplementary feed. Fonterra said in January the drought could knock $500 million off its total payout with dairy production in the Waikato down 27% on last year. more>>

Rain at last, but fight goes on
Agricultural leaders say rural areas battling drought still face tough times in the coming months, despite heavy rain in some parts of the lower North Island. Wellington received heavy rain on Saturday which appears to be have spread up the lower North Island. However no rain was recorded in Napier or Hastings at the weekend, but the floodgates opened yesterday, with MetService reporting steady rain most of the day. The rain was quite heavy in parts of Wairarapa - 35mm was recorded at Masterton in the 24 hours till noon yesterday - but some of the driest areas in the province got only a little. Fed Farmers Central Hawke's Bay spokesman Murray Bond said if the anticyclones continued his region might be warm enough to see new grass growing before winter set in.Wairarapa drought committee member Richmond Beetham said farmers in the region were having to jettison stock to let their land recover. "There is no end to stock dumping as farmers desperately try to find ways to survive through winter but there is no choice but to cut your losses. "Trading stock and store stock may be worth bugger-all, but money in the bank is better than breeding stock losing condition or dying," Mr Beetham said. more>>

Plea for supplier support
Despite a difficult velvet season Velconz and PGG Wrightson claim their joint venture marketing initiative is bringing ‘stability to the velvet industry’.Velconz is a joint venture between PGG Wrightson and velvet suppliers to create a collaborative marketing platform for NZ deer velvet. The initiative is in a formation phase and it is working to gain sufficient support from velvet suppliers to warrant full establishment. Velconz director Keith Neylon says it is now up to velvet producers with unsold product to either support change for the better, ‘or accept the status quo.’ The 2007-08 velvet season has been difficult for all with the NZ dollar appreciating 18% against the Korean won since the beginning of the season in October 2007.Neylon says selling small quantities of velvet outside the NZ season has weakened the main sellers in Korea and oriental medicine doctors are holding off buying velvet as they believe prices will drop.To counter this weakness in the spot market, PGG Wrightson has put in place contracts for many grades of NZ velvet to bolster sales and provide certainty to buyers. These contracts are a first for the velvet industry and provide an alternative to the existing auction platform. more>>

Scrutiny soon to fall on sheep and beef sectors
The sheep and beef sector is working to highlight its sound environmental practices in the face of criticism it is lagging behind the dairy industry. Ag Minister Jim Anderton told the recent MWNZ annual meeting that the sheep and beef sectors are off the pace. He warns sheep and beef farmers will eventually face the same environmental scrutiny that dairy farmers are coming under today. ‘Sooner or later the blowtorch that has been on dairy around environmental issues is going to be turned onto the sheep and beef sectors,’ says Anderton. ‘It will be hugely unhelpful to the sector if it begins to get headlines of the wrong sort around its environmental performance.’Anderton warns that, over time, the pressure will grow for regulation.If the industry wishes to avoid this then it is important for the sector to develop rigorous self-management.‘There is some urgency to this. The sheep and beef sectors are behind the pace.’ more>>

Free trade deal will help struggling meat farmers
NZ's free trade deal with China will help struggling meat farmers deal with cost and profile issues in one of the world's largest markets according to their trade representative in Beijing.The Board's woman in Beijing, Siu-Lin Shim, told NZPA that NZ beef did not have a great profile in China and was too expensive for many consumers. Imported meat is hit with tariffs of between 15 and 25% partly to protect local farmers. Ms Siu-Lin said this meant a kilogram of tenderloin from NZ cost RMB180 ($NZ32) compared to RMB60 to 90 ($NZ10 to $NZ16) for the local equivalent. While price was an issue at the lower end of the consumer market, NZ beef also suffers from an image problem at the premium market it mainly aims for. Chinese chefs and wealthier consumers are used to grain fed cows and the meat has a different taste and texture. "Much of my work is educating chefs about NZ meat and the trade deal will lift the profile and make it easier to sell the product in China." more>>

Fonterra bids for Aust dairy co-op
Fonterra has confirmed it has made a preliminary bid for Australian co-operative Dairy Farmers. Dairy Farmers announced last week it had started a process to consider offers. Asked whether Fonterra had put in a first round bid, Fonterra chairman Henry van der Heyden told BusinessDay that he could not answer because he was bound by a confidentiality agreement. "The fact that I'm bound by confidentiality should give you the answer," he added.Looking to the future, van der Heyden said Fonterra's relationship with US co-op Dairy Farmers of America, with which it has a joint venture, gave it the ability to take advantage of the increasing export milk supply coming out of California. In 15-20 years time Fonterra could be collecting around 1.6 billion to 1.8b kilograms of milk solids in New Zealand, up from 1.2b today, van der Heyden said. Fonterra could be marketing in excess of 3m tonnes of product sourced from NZ and potentially a similar amount or more from a combination of offshore partnerships, investments and alliances," he said. more>>

Desperate farmers call for action
Meat and wool farming does not have a future unless urgent action is taken, desperate South Island farmers have told a parliamentary select committee.They have called for an urgent inquiry into the impact of monetary policy on exporters, particularly farmers, and to look at solutions. Marlborough Fed Farmers president Geoff Evans told the Primary Production Select Committee yesterday meat and wool farmers were in depression with many facing the loss of their properties. He highlighted a letter from PGG Wrightson, co-signed by its board including Craig Norgate, to its clients that said sheep farming was no longer profitable."Farmers are exiting the industry in large numbers, with the result that its very sustainability is in doubt," the letter said. "This is occurring despite a global boom in agriculture."This situation for an industry at the heart of NZ society is unacceptable." more>>

Lessons of the drought
After a summer that has seen little rain since September, spoiling the promised 'rivers of gold' from Fonterra, parched Taranaki dairy farms are soaking up the recent drizzle. A few days of drizzling rain is giving South Taranaki dairy farmers back their winter. The grass that will grow in the still-warm ground should provide the basis of health-giving winter feed.The farmers get to save their cows' strength so they can calve in spring and return to milking. But the drought has forced them instead to spend big on supplementary feed and to pay for grazing elsewhere. Luckily, the payout means they can afford it - just.Unluckily, the March-April-May milk income won't be coming. On top of the $90,000-$140,000 in lost income for the average farmer must be added $20,000-$50,000 in extra costs. Graziers, mostly sheep and beef farmers in dire financial straits, are charging $10-$15 a head more than last year. Many farmers are taking advantage of the high demand for cows from the South Island conversions to sell any cow not needed for next year. more>>

Farmer views sought on funding for industry restructure
M&WNZ and the NZ Meat Board are asking farmers if they support the use of farmer reserves to evaluate the meat industry restructuring concept being proposed by the Alliance Group. Chairman, Mike Petersen said the directors, meeting today for their first board meeting since the AGM, had proposed that application be made to the Meat Board for up to $2 million from the reserves. This is to ensure momentum continues to fully investigate the merit of forming a new company with sufficient size to improve the procurement and marketing of sheep meat and beef.“The funding will evaluate benefits of the restructure for farmers and NZ as a whole and provide an assessment of regulatory implications. “The Board considers that the proposal warrants support and the funds would be drawn down by M&WNZ for approved activities,” Mr Petersen said. To use reserves, the Meat Board policy requires that these funds, subject to farmer consultation, will benefit the entire meat industry. Mr Petersen said the M&WNZ Board expects this proposal to deliver improved marketing, more efficient procurement and processing, and it would build a foundation for better and sustainable profits to farmers and the wider industry more>>

Healthy hoof steps out
The Healthy Hoof Programme is a simple, stepwise approach to managing lameness on dairy farms caused by physical factors. It consists of five key steps that each farm takes with the support of a trained programme provider. The programme focuses on prevention of lameness in conjunction with information and training on management and the treatment of lame cows. Resources in the programme are based on the work of dairy cattle lameness expert Neil Chesterton. Through out the month of April, nine field days will take place through out the country to introduce the programme. The field days aim to further educated farmers on the benefits of the programme and explain in depth how it works.“You can hear what the farmers who piloted Healthy Hoof have found out and take the opportunity to ask questions”, says DairyNZ Business Developer Charlotte Glass. "All those who attend will receive a lameness field guide – the resource most valued by our pilot farmers.” more>>

Lincoln grads‘good news’ for NZ primary sector
There’s good news for NZ’s important land-based industries in Lincoln University’s 2008 Graduation Ceremony, being held in Christchurch Town Hall on Friday 4 April.From a total of 725 degrees, diplomas and certificates to be presented, over a quarter relate specifically to areas such as agriculture, viticulture, wine science, food science, horticulture, farm management, forestry and organic husbandry. The bulk of the balance are also connected to important land-based fields such as environmental management, resource studies, landscape architecture, tourism management, valuation and property management, and agribusiness. “The number of qualifications clearly reflects the breadth of employment opportunities which characterises the sector today and the range of associated careers we prepare people for at Lincoln University - from on-the-land producers to research scientists to industry consultants and advisors to agribusiness personnel, bankers and specialists in many other allied areas. more>>

All eyes on free trade ageement with China
When details of NZs free trade agreement with China are released this month, all eyes will be on tariff reductions for the meat and dairy sector. Agribusiness expert Prof Keith Woodford, Lincoln University, believes a lot will depend on the rate at which the tariffs on meat and dairy will be removed.‘I will be waiting with great interest to see the precise figures,’ he says. Woodford believes the role for NZ is to produce top-end branded products that are clearly differentiated from Chinese products. China is the world’s third largest dairy producer after India and the US with an output of 33 million tonnes of dairy products last year.Woodford, who recently co-led a tour of China involving 25 agribusiness executives, believes an FTA with China is of real importance. ‘I have always believed it was of greater importance than an FTA with the US. ‘In time China will surpass the US as a trading partner.’‘Kiwis who have never been to China seriously underestimate the sophistication, wealth and opportunities of cities like Shanghai.’ more>>

On-farm costs eating into lamb profits
Death and taxes are life’s two certainties, however, trailing close behind are on-farm costs chipping into productivity gains. As NZ and the rural sector accept responsibility for our share of carbon emissions, more increases are likely. Since the start of 2001, on-farm input costs relative to meat production had risen 22% and that was ahead of the consumer price index, which is up by 14%.Those figures did not factor in the latest fertiliser increase, M&WoolNZ economist Rob Davison said. It would be most unlikely for any on-farm costs, such as rates, power, levies, transport, just to name a few, to decrease in the future. This means the suggested profit of $15 a lamb to farmers under a restructured meat industry may be insufficient, by the time the entity is up and running. It’s not as simple as a $15 profit, Mr Davidson said.“The issue is, will overseas consumers pay a higher price for our lamb?“A lot will depend on how the concept is developed over the next six months. “Because the price we get, is ultimately what the market will stand, and our lamb is at the higher priced end of meat products.” more>>

Dairy boom boosts Landcorp's profit
The dairy boom is lifting the fortunes of the Government's farming company, Landcorp, owner of 108 farms throughout NZ. Income from milk jumped to $39.5 million in the six months to December 31, up from $21.5 million a year earlier, the company reported yesterday. This outweighed depressed returns for lamb and resulted in a pre-tax operating profit of $9million, compared with a loss of $4.9 million previously. Directors say that pre-tax operating profit is now the most meaningful way of stating earnings, as the bottom-line figure is distorted by the requirement under new international accounting rules to allow for changes in livestock values.Mr Sutton and Mr Kelly said the dairy boom was expected to continue in the medium term, but for the balance of this year at least, the revenue gains would be partly offset by reduced milk volumes as a result of drought. Higher fuel and fertiliser costs would also have an impact. Despite this, the pre-tax operating profit to June 30 now looked likely to "significantly exceed" the budgeted figure of $16 mill. This might mean a higher dividend for the Govt than the budgeted $11 mill. more>>

Clover root weevil biocontrol giveaways
AgResearch, through funding from government and industry funding have released a tiny parasitic wasp from Ireland. M&WNZ and DairyNZ are sponsoring the free distribution of this biocontrol agent for the clover root weevil out through farm monitor days, consultants etc. The drought has been a stumbling block so they have been focusing on farms that have at least some clover (and therefore weevils for the wasp to parasitize). They have parasitized weevils ready to go now and would like to get them out in the next month so the wasps have a chance to go through a whole generation and multiply before winter. But they don't want to waste the biocontrol agents by releasing them in inhospitable paddocks. So they need help to reach out to those farmers that haven't been hit as hard by the drought and do have clover, especially as they would be holding a reservoir of weevils that will reinfect the rest of the region when things get back to normal. If there is a group of farmers in "good" localities to nominate one person who is willing to communicate as to how many farmers have suitable sites and be willing to pick up the courier package of giveaways in a chilly bin and get them out.
more>>

Critic miffs MIAG
The Meat Industry Action Group (MIAG) has reacted angrily to recent criticisms of Alliance’s Concept for meat industry reform. It says academics and professionals should look at the positives and put forward alternative solutions rather than just highlighting negatives. ‘Farmers will be very disappointed in Professor Woodford’s comments,’ says MIAG chairman Keith Milne following comments by Lincoln University’s Keith Woodford in the last issue of Rural News. ‘In their hour of need they would expect highly paid professionals to be helping them to find solutions to the problem, not finding more problems.’ Woodford told Rural News that Alliance was to be commended for proposing its Concept, but that it would face three major challenges:• Merging cooperative and corporate structures.• Domestic competition policy.• Overseas competition laws. Milne also takes issue with Woodford’s concern that the reform process is being rushed. ‘Prof Woodford might not appreciate the urgency of situation. In two or three years’ time the industry won’t be here. more>>

North Island farmers lukewarm on merger
Many NI farmers appear unenthusiastic over the planned meat industry mega-merger, with a view emerging that despite difficult times for lamb suppliers, the problem is mainly a SI issue.A different culture is also evident - South Island farmers have a history of co-operative ownership of the industry, but this system has not worked in the north where farmers and prefer a wide choice of processor and have not been greatly concerned over who owns the plants. Farmers spoken to have suggested that the fears of changing land use - notably from lambs to dairying - is a South Island issue and they doubt that a near monopoly business with 80% of the lamb supply market will have the urgency and efficiencies needed to be a superior operator. They say the mega-merger plan relies on scale to achieve better returns rather than genuinely better marketing strategies. Rolly Saunders, who farms beef and sheep near Te Awamutu, said the issue is not north versus south, but the need for merger is a South Island issue being driven by the south. "I don't see a mega-merger happening, not by a country mile, and that is the view I'm hearing from the farmers I talk to.'' more>>

Girding the loins for a battle over beef
NZ beef exports to North Asia have soared, following a ban on US beef in the region because of mad cow disease. Taiwan, Japan and Korea banned US beef imports in 2003 for fear of BSE.As a result, Kiwi exports to North Asia - comprising Japan, Korea, Taiwan, Hong Kong and China - have jumped from 15% of total export volume before the BSE-related ban in 2002/2003 to 27% in 2006/2007. That's a rise in value of beef export receipts from $347 million to $540 million.In December 2005 Japan lifted its ban on US beef, only to renew it two months later after spinal cord was found in a shipment. M&WNZ economic service executive director Rob Davison says North American beef shipments to the region are now limited to small amounts. more>>

Drought Shout to cheer up farmers
A thousand drought-hit farmers from the southern North Island are expected at a Drought Shout next month.Their farms may be dry but the event on April 9 will be distinctly wet - it will be at the Tui brewery in Mangatainoka, just north of Pahiatua, and the beer will be free. The reason for the low-key festivities is "Because you buggers deserve a break," says a flier now being distributed.Buses will bring in farmers from as far away as Napier, Taihape and Marton.The publicity promises "an enjoyable low-key event with no speeches, no formalities and not a politician within 100 kilometres". The get-together is one of several events being organised to help farmers in the dry areas keep their spirits up in times of hardship. more>>

M&WNZ mid season update
Confirms what most are feeling.Not much fun to read.
-High exchange rates has negative impact on returns.
-Drought conditions.
-Livestock numbers down especially sheep.
-Affecting profits which are 3rd lowest in real terms in the last 50 years. more>>

NZ meat supply falls behind world demand
The world wants more of NZ's meat, but we haven't enough to give it, says a leading rural banker.Rabobank senior analyst Hayley Moynihan says times may be tough for sheep and beef farmers, but international market conditions are "largely favourable" in the medium to long term. Prime opportunities exist for beef in the United States and for lamb in Europe, she says. In a report published yesterday, she points to "headroom" to lift beef exports to the US, as that market is experiencing uncertainty and cow beef production is expected to drop this year. Meanwhile, the declining European sheep flock presents additional opportunity for NZ sheepmeat. "With demand relatively steady, the gap in sheepmeat availability will largely be filled by NZ within the constraints of the existing quota," Ms Moynihan says. more>>

Agresearch response to AR1 AR37 trial data
DairyNZ released a press release on its trial with AR37 ryegrass. In reviewing this release with Grasslanz Technology, DairyNZ and Grasslanz Technology have collaborated to add some information to the initial release. This information is seen as providing important aspects for consideration by farmers undertaking pasture renewal.In the one complete season of a planned three-year DairyNZ Waikato trial available so far the annual milksolids results show no significant difference in milksolids production on a per cow basis from AR37 pastures compared to AR1 pastures. However in three grazing trials and two indoor feeding trials there are seasonal differences with the summer/autumn results showing statistically significantly more milksolids for AR1 over AR37 pastures. In early March the AR37 pastures had double the tiller density of other treatments, but the drought continues. Other evidence shows that over time AR37 pastures persist longer and produce more dry matter relative to both standard endophyte and AR1 pastures. more>>

Honey vital in teat spray
Honey is the key ingredient in a new teat-health spray product from dairy hygiene and animal health company FIL, Mt Maunganui.The company says it has broken new ground with Iodoshield, by ‘uniquely’ using honey in the formulation. Two years research and field trial work went into the development.Acting on the knowledge honey would improve teat health, they went to a ‘complex formulation containing no adding emollient. The recommended dilution rate will maintain premium teat health at all stages of lactation,’ FIL says. ‘In a NZ first, FIL used the National Mastitis Council’s teat scoring protocol to evaluate Iodoshield Active’s effectiveness in improving teat condition.’ Trials involved eight herds in the North and South Islands. In a separate trial, a 700-cow herd was divided in two, with one herd (the control) on an existing iodine based teat spray, the other (trial herd) using Iodoshield Active. FIL says the results showed a marked improvement on average herd teat condition in the Iodoshield Active mob, to a maximum-possible 5 against the conventionally treated herd average of 3.5.Somatic cell counts were also improved. more>>

NZ dairy farmers creating a Trans-Tasman market
Upwards of 40 NZ dairy farmers have purchased farms in Australia in the past 18 months. A leading national rural property authority says the sales, which have an estimated value of $170 million, are beneficial to both countries. Max Lyver manages the international portfolio of PGG Wrightson Real Estate, which has established as a leader in the sale of dairy farms in Australia since opening its first office there in August 2006. He sees a single market emerging, dominated by NZ farmers, but covering the dairy industry in both countries. “The export of dairying expertise across the Tasman is helping strengthen the industry overall. Australia is gaining kiwi capital and know-how. NZ farmers are taking advantage of low entry costs to move from farm management or sharemilking into ownership. Established dairy farmers and investors are capitalising on the profitability of the industry by extending their portfolio of farms across two countries,” he said. more>>

DairyNZ helps farmers take action on environment
DairyNZ is rolling out the 'Farm Enviro Walk' to help dairy farmers perform an environmental health check on their farm. The Farm Enviro Walk has been designed to be completed as a self assessment for individual farmers. The Farm Enviro Walk is being rolled out through field days on local dairy farms in Northland, Waikato, Bay of Plenty, Canterbury and Southland throughout April and May.The Farm Enviro Walk helps farmers identify potential issues, opportunities and practices that may need improving - focusing specifically on the three areas of nutrient, effluent and land management. It then points farmers toward information, tools and professionals to can help address issues and exploit opportunities. Dairy NZ Sustainability Programme Manager, Dr Rick Pridmore, says the Farm Enviro Walk is a real breakthrough for the industry."On-farm environmental issues are complex and often difficult to understand. Nevertheless, most farmers are proactive when it comes to managing the impact of their farming operation on the environment."But some don't realise they have an environmental issue and others don't know how to resolve it. This is where the Farm Enviro Walk can help. more>>

Joint ventures, branding key
A visiting international agribusiness authority says the NZ meat and produce industries need to be looking at forming joint ventures for their survival. Michigan University's Prof Thomas Reardon talked with meat companies, sales and marketing bodies, a Maori association focused on increasing exports, Enza and Zespri, as well CRI's. The story worldwide was the rise of supermarket chains, particularly in emerging markets, such as Asian, Latin America and Eastern Europe. "There is a market of nearly one billion middle-class people in emerging markets, of a total population of four billion. It is now made more accessible to NZ exporters because of the supermarket revolution occurring in it."But he warned all products needed to be branded and then defending their market. It still needed to have volume, too, even if a niche product."As supermarket chains typically want to stock all of their stores in a large chain with a given product. "At one seminar I was at in Australia, a supermarket buyer from a major European chain, with stores in South-East Asia, said he could eliminate all the growers there, except for Zespri and Enza, because the brands were important." Without the brand, sellers enter "a commodity sea" and could be taken out of the supply chain and replaced, Prof Reardon said. more>>

NZ dairy farmers creating a Trans-Tasman market
Upwards of 40 NZ dairy farmers have purchased farms in Australia in the past 18 months. A leading national rural property authority says the sales, which have an estimated value of $170 million, are beneficial to both countries. Max Lyver manages the international portfolio of PGG Wrightson Real Estate, which has established as a leader in the sale of dairy farms in Australia since opening its first office there in August 2006. He sees a single market emerging, dominated by NZ farmers, but covering the dairy industry in both countries. “The export of dairying expertise across the Tasman is helping strengthen the industry overall. Australia is gaining kiwi capital and know-how. NZ farmers are taking advantage of low entry costs to move from farm management or sharemilking into ownership. Established dairy farmers and investors are capitalising on the profitability of the industry by extending their portfolio of farms across two countries,” he said. more>>

DairyNZ helps farmers take action on environment
DairyNZ is rolling out the 'Farm Enviro Walk' to help dairy farmers perform an environmental health check on their farm. The Farm Enviro Walk has been designed to be completed as a self assessment for individual farmers. The Farm Enviro Walk is being rolled out through field days on local dairy farms in Northland, Waikato, Bay of Plenty, Canterbury and Southland throughout April and May.The Farm Enviro Walk helps farmers identify potential issues, opportunities and practices that may need improving - focusing specifically on the three areas of nutrient, effluent and land management. It then points farmers toward information, tools and professionals to can help address issues and exploit opportunities. Dairy NZ Sustainability Programme Manager, Dr Rick Pridmore, says the Farm Enviro Walk is a real breakthrough for the industry."On-farm environmental issues are complex and often difficult to understand. Nevertheless, most farmers are proactive when it comes to managing the impact of their farming operation on the environment."But some don't realise they have an environmental issue and others don't know how to resolve it. This is where the Farm Enviro Walk can help. more>>

Joint ventures, branding key
A visiting international agribusiness authority says the NZ meat and produce industries need to be looking at forming joint ventures for their survival. Michigan University's Prof Thomas Reardon talked with meat companies, sales and marketing bodies, a Maori association focused on increasing exports, Enza and Zespri, as well CRI's. The story worldwide was the rise of supermarket chains, particularly in emerging markets, such as Asian, Latin America and Eastern Europe. "There is a market of nearly one billion middle-class people in emerging markets, of a total population of four billion. It is now made more accessible to NZ exporters because of the supermarket revolution occurring in it."But he warned all products needed to be branded and then defending their market. It still needed to have volume, too, even if a niche product."As supermarket chains typically want to stock all of their stores in a large chain with a given product. "At one seminar I was at in Australia, a supermarket buyer from a major European chain, with stores in South-East Asia, said he could eliminate all the growers there, except for Zespri and Enza, because the brands were important." Without the brand, sellers enter "a commodity sea" and could be taken out of the supply chain and replaced, Prof Reardon said. more>>

No carbon copouts, better call a lawyer
There's nothing like a discussion on carbon trading to bring out the cynical side of cockies who have been around for a year or two, especially those who are not tree people, writes Graham Butcher.It would seem to many that it is a scheme for some to make money out of those who can't afford it and it's all based on pretty selective science. But it is not going to go away. NZ is part of the Kyoto Protocol and the NZ Emmissions Trading Exchange is not too far away. In 2012, four years away, farming will be part of the scheme and if you emit CO2, which apparently you and your livestock do, and don't have sufficient trees to suck it all back in again, then expect to pay. You won't get an invoice for the 200t carbon at $25/t. What may happen is that about 17% will be deducted off the cheques you get from the Mega merger and that's about half what is promised the new company can deliver. We had better set our sights a little higher. more>>

Mega-merger parties begin number-crunching
What price the assets needed to set up the proposed meat industry mega-merger? That is the big question for farmers - initially those who already own the big co-operatives PPCS and Alliance Group, but also others who join the ownership - faced with taking on debt to buy out the mix of private and public owners of possibly three companies sought after as merger partners. More particularly, what is the premium these owners might expect to be paid to become a part of what is described as urgent industry restructuring, seeking to get 80% of the sheepmeat business into one entity? Early estimates suggested a price of about $400 million to add the likes of AFFCO Holdings, ANZCO Foods, and the smaller Bernard Matthews group to the proposed combined PPCS/Alliance Group merger vehicle.Talk at the recent Central Districts Field Days in Feilding was a cost of close to $700m, assuming farmers take on 100% ownership. The actual figure is likely to be somewhere in the middle, and probably dependent on how much, if any, of the AFFCO business is bought. more>>

New PPCS chairman not standing still
PPCS is entering a new era.Its image is being overhauled and from June 1 it will be known as Silver Fern Farms Ltd.The silver fern is an iconic brand, currently under-utilised by PPCS, and consumers will instantly link the product back to its country of origin — NZ. Leading the company through this exciting phase is new chairman Eoin Garden, who along with wife Noeline, farms Avenel Station, a 2500ha hill-country property at Millers Flat. A director for the past 10 years, he was elected chairman at PPCS' annual meeting in Dunedin three weeks ago and replaces South Canterbury farmer Reese Hart. Mr Garden said he was looking forward to leading a relatively fresh-faced board of directors into a new era for PPCS. "I think we've got a good balance of farmer directors along with independent professionals. We've got some very capable farmers out there and too often the skills they have are not recognised by their peers." more>>

Farmers should weigh up benefits of new ryegrasses
DairyNZ, says that its trials of the new endophyte in ryegrass, AR37, show it is most effective against pests and with no ryegrass staggers, but there may be a small loss of production per cow compared with AR1.The two alternative endophytes are used to infect perennial ryegrasses making them more resistant to pests and therefore more persistent, and to minimise their adverse effects on animal health. DairyNZ’s general manager, research, Dr Eric Hillerton, says that results from paddock-sized feeding trials show that cows grazing AR37 produced approximately 30kg MS less than cows grazing on AR1 during the 2006/7 milking season. “We have now completed two seasons of trials in the paddock and two controlled indoor trials, and the results are showing a level of consistency,” he said. “We believe farmers need to make their seed purchasing decisions based on the best information available.” more>>

Investors sought in dairying
Long-time forestry backer Roger Dickie is opening up the lucrative dairy industry to mum and dad investors. Dickie bought a $10 million 413ha dairy farm in Southland in August and is offering investors 8 million shares at 100c each with a minimum investment of $25,000. "What's unusual about this is they can invest quite small amounts," Dickie said. Small investors have been unable to cash in on the dairy boom because most schemes wanted at least $200,000 and for joint ownership in a farm people could be looking at upwards of $7m.The average investment would be around $50,000 to $60,000, he said. People looking to invest were urbanites and professionals wanting to diversify their portfolios. There were also some dairy farmers, Dickie said. "I think we'll find quite a lot of investors who have left investing in more intangible things like finance companies putting money into this because they know it's locked into land." more>>

Column: Over the Fence
If evidence was ever needed of what a crazy world we live in, then just consider the American ethanol boom.It comes from the United States' fear of being held to ransom by Arab oil producers. And that comes from increasing anti-American sentiment in the Arab world because of the Iraq invasion and other blunderings, as well as the insidious creep of American culture. So, at the government's urging – not to mention the incentive of massive tax credits – US farmers are diverting corn from stock feed to ethanol, a petrol additive. Ethanol plants are burgeoning – up from 61 in 2002 to 134 today, with another 77 under construction, and production is targeted to rise from 7.2 million gallons now to 36 billion gallons by 2022. Ignored in the rush is the environmental and economic cost of making ethanol – six times more energy is required to produce ethanol than the energy that is actually in it. That's not just crazy, it's stupid. more>>

Donaghys launches innovative nitrogen enhancer
Rural supply company Donaghys has launched an innovative breakthrough biotechnology product, which in trials has resulted in nearly equivalent pasture growth with half the level of urea application.“The Donaghys LessN System is a nitrogen-enhancer which improves the nutrient uptake ability of clover-based pasture,” says Jeremy Silva, Managing Director of Donaghys.“It promises to provide farmers with a more sustainable solution for maintaining productivity while reducing the level of nitrogen fertiliser application and its related environmental effects.” The Donaghys LessN System also reduces the overall cost to farmers of applying fertiliser to promote pasture growth. For example, the trials show that on an average dairy farm of 120 hectares, it reduces costs by around $1500 per application of urea. To date 21 fully replicated LessN trials throughout NZ, involves the spray application of 3 litres of LessN with 40 kg of urea per hectare – provides 97% of the pasture response compared with 80 kg of urea alone.” more>>

Pfizer to acquire Catapult Genetics and Bovigen
Pfizer Animal Health today announced it will acquire two market-leading livestock genomics companies: Catapult Genetics, Pty., Ltd., focused on developing and commercializing innovative livestock DNA tests and gene markers to assist global food producers, processors and retailers in improving profitability and quality in the global food chain; and Bovigen, LLC, which markets DNA technology, including Catapult’s products in the U.S. and throughout Canada, Central America and South America. “This is a strategic initiative that places Pfizer at the forefront of livestock gene marker R&D and enhances Pfizer’s ability to offer more complete solutions to global livestock producers,” said Juan Ramon Alaix, president, Pfizer Animal Health. Current genetic tests are focused on productivity and carcass quality, while future genetic tests may one day allow producers to better predict disease in individual animals, thus helping veterinarians and producers target medicines to livestock that need it most, Alaix said. more>>

Velvet research caught on film at Invermay
Lights, camera – action! AgResearch Invermay could have been mistaken for a film set earlier this month during a visit by a television crew filming for a Taiwanese channel.The crew’s focus was the campus’s deer velvet expertise. Applied Biotechnologies GM Dr Jimmy Suttie was filmed first - talking about how long AgR Invermay has researched velvet. He also outlined its ongoing commitment to velvet research through Velvet Antler Research NZ Ltd. Dr Stephen Haines, of our Growth & Development Section, was interviewed on how timing the cutting and processing of NZ velvet is important to its overall quality. Dr Chunyi Li spoke about why velvet has such unique medicinal values and has been used by Chinese medical practitioners for thousands of years. “This is solely because velvet is derived from a specific population of cells that we’ve recently identified through our research and called ‘seeds’ of velvet growth. “These cells have embryonic stem cell attributes. Based on this finding, we’ve devised a way to try and capture the elusive unique velvet substances responsible for therapeutic values.” more>>

Blue Sky tipped to join meat sector mega-merger
Industry speculation is mounting Invercargill-based processing company Blue Sky Meats is the mystery fifth player in an industry "mega-merger". The big four companies would account for about 75%, requiring a smaller player to take it up to 80%. Alliance chairman Owen Poole has consistently refused to name the fifth player but it is understood to be Blue Sky. In 2007 it posted a $1.4 million net profit on revenue of $88m.Yesterday Blue Sky chairman Barry Thomas said the company was not in formal talks."We sent out a memo to our shareholders two weeks ago saying the thing was at a preliminary stage and we have nothing to add at this point."But in the company's annual report, Thomas praised farmer groups for their efforts in reforming the industry."Until there is buy-in from farmers and companies to large changes in the industry procurement systems, there will continue to be large fluctuations in farmer and company returns and the industry will never capture the full benefits that could flow from lamb production." more>>

Give farmers a break, we owe them
We like to think justice and fair play are essentials of the NZ way of life. However, those feelings seem to be lacking from certain elements of our society when it comes to the contribution of farming and farmers to our standard of living as well as to our national sense of who we are.These people, notably the Green Party and their cohorts, Soil and Health, Forest and Bird and their ilk, have lately made hysterical attacks upon farming. They range from ignorant and ill-informed sweeping statements to good old- fashioned name-calling. Some crazy newspaper letter-writers have even sunk to the depths of comparing lamb and beef-eating to whale-hunting. I feel it's time to point out a few home truths. We owe a huge debt to farmers and I don't mean just economic prosperity. We should take pride in the widespread perception overseas that Kiwis are rugged, honest and hardworking individualists, and we have farmers, and their influence on the national psyche, to thank for that. more>>

Farmers forced to dump good stock
Farmers are dumping lucrative breeding stock in a bid to survive winter as crippling drought conditions persist. PGG Wrightsons' livestock manager for Wairarapa, Chris McBride, said the situation was dire."The numbers going to stock sales for sale at this time of year is unprecedented and it is not a case of cashing in or selling off to make a quick buck. It is nothing more than dumping and there is no money being made." At stock sales in Feilding last Friday, 22,000 lambs were sold - about four times more than usual for March.Mr McBride said lambs which usually could expect to get a price of $60 when sent to freezing works, were fetching just $10 on average - money that was soaked up in freight and commission, with no return for the farmer. Rising two-year-old heifers, which would have earned on average $600 each in a good market were being sold off for $350 or less."All they are doing is making a bit of room in a paddock. There are farmers holding on to their good breeding stock and paying around $400 a tonne for barley to try to keep them in condition. more>>

Staying positive despite the trends
I felt that this year's Meat and Wool AGM was all pretty positive which was interesting considering the state of the industry.And I thought that the operational update was really worthwhile and Agriculture Minister Jim Anderton's address quite superb. For a non-farmer he has certainly come to grips with the industry and is leading from the front. With the $750 million "Fast Forward" package having been announced the day before the AGM he was going to get a good hearing anyway but he made what I thought were some telling statements about not rushing reform and doing it once and doing it right. I can remember the M&W AGM of 2006. There was certainly discontent among the ranks with lamb being described by one questioner as being in "freefall". The farmer was assured that "things would come right" and on we went. Last year in Wanaka similar concerns were aired. Again, we were assured that things would come right. This year the problems were greater but farmers seemed in a more positive mood courtesy of two initiatives; the Meat Industry Taskforce and the mega-merger. more>>

Feedstocks short as drought costs rise
The drought may have broken in Southland.But, the effects continue to linger, with farmers facing horrendous grazing bills, reduced lamb and milk income and severe winter feed shortages. Drought facilitator Peter Hook, told farmers at a seminar in Balfour on Thursday, that ewe management during the next few weeks would be critical to maximising next season's production.With mating just several weeks away, it was tempting to open the gates and let the animals go, but Mr Hook urged farmers to build a buffer of winter feed. "It's tempting to feed ewes grass, but grass grows grass. "We need to hold the stock and feed them something else if possible," he said.Mr Hook said farmers should continue to feed out supplements and apply urea now — before soil temperatures dipped below 12degC — for the best response. He said farmers may have to extend their overdraft to buy feed supplements, such as sheep nuts, to look after next season's production. more>>

Rural confidence down even in dairy sector
There has been a sharp fall in dairy farmers' confidence, according to the latest bi-monthly Rabobank/Nielsen Rural Confidence Survey. Dairy farmer confidence recorded the sharpest fall in a survey which showed overall that 38% of farmers expected the economy to worsen, up from 22% in the last survey. Only 15% of dairy producers expected the economy to improve, compared to 59% in the previous survey while 31% expected conditions to worsen, up from 6% previously. Across all types of farming 15% of farmers expected the economy to improve, a significant drop from 34 per cent who had an optimistic outlook in last survey in December.The December survey revealed the first downturn in rural confidence levels seen in NZ in 12 months. more>>

Finely balanced year for NZ farmers
The outlook for NZ agriculture in 2008 is finely balanced, according to Rabobank’s recently released Agriculture in Focus Report. Despite a high dollar, increasing input costs, high interest rates and a slowing domestic economy, there is optimism that an emerging soft commodity boom will create opportunities for NZ’s farmers. The annual outlook from the world’s leading food and agribusiness bank says that an unprecedented rise in global staple agricultural commodity prices was witnessed in 2007, creating significant optimism entering 2008 and a growing belief that global demand will exceed supply for some time, keeping prices strong. “The dairy sector experienced the strongest prices ever, wine exports enjoyed another record year, and the deer industry saw good signs in terms of higher prices on the back of sharply lower production and improving global demand,” Mr Cordingley said.However, other sectors including sheep, beef and horticulture languished under various pressures, including soft global demand, excess processing capacity and a continually high NZ dollar. “These sectors also felt the full brunt of increasing input costs and interest rates, while contending with unseasonably dry conditions in some regions,” Mr Cordingley said. more>>

NZ Dairies increases payout
NZ Dairies Ltd has made a last-minute decision to increase its payout to combat strong competition from dairy colossus Fonterra. The fledgling South Canterbury dairy company is matching Fonterra's payout for suppliers who sign up to its three-year contract. NZDL chief executive Aidan Johnstone said Fonterra had been reasonably aggressive in trying to attract and retain suppliers in the region, which influenced the decision to bring the payout into line with Fonterra. In South Canterbury, Fonterra has dropped the requirement that suppliers buy its shares, as required elsewhere.In December, Fonterra forecast a payout of $6.90 a kg of milk solids, but this week told farmers to expect a $7-plus payout. This season NZDL paid 15c a kg less than Fonterra's rate. NZDL announced last month it was increasing the rate of its one-year contract to within 10c of Fonterra's payout. The contracts signed with suppliers would ensure its new $100 million-plus Studholme plant, near Waimate, was full next year, handling 160 million to 170 million litres. more>>

Cash-rich Fonterra holds firm
Fonterra finished the first half of this dairy season with more than twice as much cash as it has earmarked for dairy farmer payout, but is holding firm to its predicted $6.90/kg milksolids forecast. Record commodity prices in the six months ending November 30, combined with improved returns, saw the dairy co-operative increase its half-year revenue by $853 million to $7.3 billion, according to the just published interim report for 2007/2008. The result saw Fonterra complete the first half of the season with $4.5 billion available for payout, compared with $2 billion in the first half of the 2006/2007 season.The results cover the part of the season where 60% of milk is produced, and does not include the decline in production caused by the Waikato drought. Fonterra chairman Henry van der Heyden, who is also a Waikato dairy farmer, stuck to the record $6.90 prediction when the Waikato Times contacted him but said the figure would be reviewed in early April. more>>

Meat, wool industries needs to consolidate - Petersen
Consolidation for both the meat and wool industries is essential, M&W chairman Mike Petersen told the organisation's annual meeting.The industry had to address a number of shortcomings, he said. It had to innovate in marketing to identify and ensure products were well positioned for consumers. It had to find new markets and target some product and distribution away from traditional sales channels. It must also introduce a change of culture in how companies and farmers interact, with linking of market-driven supply to production capacity, and clear market signals for production, consistency and quality, he said. "We need more resources in marketing rather than procurement, and efficiencies must be improved, including the unnecessary transporting and brokering of livestock up and down the country. "Farmers will have to give companies surety of supply, with the industry developing better systems to cope with climatic events that make supply a challenge. more>>

Kiwi dairy group buys chunk of Chile farm
NZ dairy's move into South America continues apace with a 19,500-hectare Chilean land purchase by investment group Manuka.The syndicate of 14 NZ families, chaired by former Fonterra director Mark Townshend, has settled a deal to buy nearly half of Hacienda Rupanco, one of Chile's largest farms. The acquisition ends a four-year saga and boosts Manuka's holdings to 14 farms, spread across 24,000 hectares of prime agricultural land around Osorno - a dairy heartland 950 kilometres south of the capital, Santiago. Mr Townshend said the purchase - comparable to a third of the size of Lake Taupo - represented a "massive step forward" for Manuka. "This spring we're coming into, we'll have 13 farms set up, six we're milking on now and another seven are under construction." As part of the deal Manuka will take on 350 employees and 22 milking sheds. About 15,000 cattle will graze on Manuka land this spring. more>>

Trial maize crops lapping up effluent
Effluent seems to be proving its status as a form of liquid gold.
Maize plants grown using dairy effluent appear to be just as healthy as those grown with commercial fertiliser in a trial under way in the Waikato.The three-year trial began last year on four farms in Matamata, Orini, Ohaupo and Ngahape. It is investigating whether fertiliser inputs can be reduced or cut to zero when growing maize on effluent blocks, and whether crops benefit from having some fertiliser applied at critical development stages. With the first crops now being harvested, participating farmers Mike and Sue Visser are eagerly awaiting dry matter yields and post-harvest soil tests.Mr Visser said that while it was difficult to make an objective judgment, a walk through the crop showed no distinction between trial plots, and the crop as a whole looked strong. An equivalent paddock in a non-effluent area with the same soil type and maize hybrid would have cost him about $650 per hectare in fertiliser, meaning his potential savings could be that high. more>>

Turning a dryland profit
Dryland farming techniques which have turned a 54% increase in profits on an east coast Marlborough farm despite a 15% drop in rainfall in the last 12 years will be shared at a national field day later this year. On Wednesday, May 14 Beyond Reasonable Drought; adapting dryland farming to climate change will be held on the Avery family's Bonavaree Farm, between Seddon and Ward.Rather than sit and wait for the dust of drought to settle, with help from the NZ Landcare Trust, the farmers formed the Starborough-Flaxbourne Soil Conservation Group and applied for funding to look at ways they could turn a profit while looking after their land. Four years later, the group is upbeat. Techniques trialled are seen as pointing the way for farmers throughout NZ experiencing what's widely regarded as the effects of global warming. "Sustainability is not business as usual with a few concessions, but a new road," is the farming mantra of group chairman, Doug Avery. more>>

Eight meat plants face closure on merger
Eight to 10 meat plants will close if a plan to merge the biggest five meat companies goes ahead, according to its promoter, Alliance Group chairman Owen Poole.The plan, to pull 80 percent of N Z's meat export capacity into one $1.7 billion farmer-controlled company by the end of this year, was the main topic of debate at M&WNZ's annual meeting in Palmerston North yesterday. Mr Poole, also a M&W director, told the meeting the merger would mean the closure of about eight mainly small processing plants "so small you wouldn't notice" and the others would be "more material" .Yesterday, he said it was not known which sites might close, and how many in Southland.He had told SI farmers to expect to pay up to $40,000 each, but in the North Island, where fewer farmers were co-operative shareholders, the cost could be about $15 a lamb but only for a year. At the end of his address, he asked farmers if they would support the plan. A forest of hands went up. When he asked those opposed to stand, no one moved. more>>

Nutrient Budgets – Good environmental stewardship
M&WNZ and the fertiliser industry have teamed up to encourage sheep and beef farmers to adopt nutrient budgets for their farms – an important element of good environmental stewardship and also a sound business strategy. Chair, Mike Petersen says nutrient budgets are an important tool for farmers to use to determine the nutrient needs of their farms. This can be done by using the Overseer software programme which will provide reports about nitrogen, phosphorus and greenhouse gas emissions. Farmers enter into Overseer the data specific to their production systems and environment, and the software calculates whether there is a nutrient surplus or deficit. Advice can then be given on improving the efficiency of nutrient use by, for example, identifying options to minimise nutrient losses. The Overseer programme is already widely used by dairy farmers and Mr McLeod said the commitment now was to engage with sheep and beef farmers.The Overseer programme is owned by FertResearch, MAF and AgResearch and their ongoing commitment to evolving the programme will be important. more>

Call for fast meat merger
PGG Wrightson chairman Craig Norgate has called for the merger of meat-processing companies to be fast-tracked to avoid an industry disaster. In an open letter to farmers, Norgate said the sheep meat industry was not profitable, and warned its "very sustainability is in doubt" despite a global boom in agriculture. Changes needed to be made throughout the supply chain -- from the pasture to the plate -- he wrote to farmer clients of Christchurch-based PGG.He said he had been speaking out about the difficulties for 12 months, but with many farmers leaving the industry for dairying, the need for change was urgent.Mergers between the main processors, which include South Island co-operatives Alliance and PPCS, was the key to success, he said. more>

Dairy NZ targets reproduction issues
“InCalf is DairyNZ’s response to addressing a clearly identified need of dairy farmers - to turn around the unfavourable trend in herd reproductive performance observed over the last 15 years,” says DairyNZ Project Manager for InCalf, Mark Blackwell. Herd fertility is complex, requiring a range of expertise to better diagnose areas to improve and to implement chosen management options. The first of a series of InCalf introductory training events for vets, consultants and advisers commences Tuesday 11th March at Matamata. InCalf will also introduce the programme to dairy farmers in the near future. “The challenge to dairy farmers is to better involve your vets, consultants and other advisers in the InCalf continuous improvement process, and to better align their efforts towards your goals for herd fertility,” says Mark. “This will help them deliver real value to you in terms of measured performance improvement.” more>

Go Dairy Campaign attracts new potential employees
Dairy farmers who need staff for the coming season are being encouraged to do so now by their industry good organisation, DairyNZ. Chief Executive, Dr Tim Mackle, says that half way through the Go Dairy campaign there are now at least 250 people from around the country who are actively looking for jobs on dairy farms. “We expect that number to go beyond 1,000 people by the time the campaign ends on the 17th of March,” he said.Dr Mackle said that while the total number of calls to date is slightly ahead of last year, the number of calls which are genuine inquiries is up by 20% over last year. “We are looking for people who have gained some skills in the workplace and have a degree of maturity to tackle a job on a dairy farm,” he said. more>>

Fonterra changes pitch to farmers
Fonterra is telling its farmers it has put to one side its listing plan and is taking another look at some discarded capital structure options. Last month the dairy co-op cancelled the first farmer vote on the plan, scheduled for May. Fonterra had planned to list on the stock exchange, with 65% of the company owned by a farmer cooperative.Fonterra chairman Henry van der Heyden confirmed that the preferred option had been put to one side and the discarded options were being reviewed. The issue of redemption risk and access to more capital for growth still needed to be addressed, he said. Fonterra also unveiled its new milk-pricing mechanism at the meetings last week. The new mechanism, a calculation to determine how much Fonterra pays its farmers for their milk in the absence of a market price, will calculate revenue based on actual monthly sales of five dairy commodities replacing the nine commodities used today. On the costs side of the milk price equation, Fonterra will use actual costs instead of the theoretical costs used today. more>>

$500m fund to boost farming innovation
The Govt is poised to announce a $500 million-plus fund to promote innovation in food science, agricultural research and production. PM Helen Clark will unveil the plan today at Parliament in what is being billed as a "quantum leap forward" for scientific research and innovation for the sector, seen as crucial to lifting economic performance. It follows a 2006 food and beverage taskforce report that called for new efforts to improve NZ's competitive edge over low-cost, high-volume agricultural countries such as Argentina. The fund, which could build to more than $700 million as interest accrues, would be jointly managed by the Government and industry. It is expected industry will be asked to match the Government's injection with significant cash of its own. It is aimed at the likes of Fonterra, the meat industry, horticulture, aquaculture and other farming ventures, but not forestry. more>>

Drought crisis talks as farmers suffer
The brutal summer that has left Wairarapa farmers struggling financially has led to crisis meetings in an effort to alleviate the suffering.This summer had been the driest since 1972, with the amount of rainfall between November and February less than a third of the average. Though the focus had been on Waikato, and the Government's radar tuned to what farmers in that region needed to survive, Wairarapa had suffered the most, Fed Farmers national president Charlie Pedersen said. "The Wairarapa has been the worst hit by the drought because it started earlier and has been the last region to get rain, but certainly no drought-breaking stuff. "It has been a damn long haul for Wairarapa farmers on the back of the drought last year and that is a region that has had two droughts in a row, so it has been very, very tough." more>>

A case of where Landcorp goes, so the vote goes?
Talking to two farmer politicians about the state of the meat industry and the way forward was interesting, especially considering the Meat and Wool AGM next week. Both Gerry Eckhoff and David Carter have differing views on where we should be going. Eckhoff wants transparency in the marketplace while Carter feels we should be getting behind the mega-merger. Interestingly both agree that the influence Landcorp has on voting patterns needs to be far more transparent than it currently is. What Eckhoff wants for the meat industry is far more transparency in the marketplace and he has put forward a remit to that effect. Simply he wants marketplace performance monitored and broadcast. "I make the point that everything we do on the farm is performance recorded from IRD returns to buying and selling bulls," Eckhoff said. "The problem I have is that the most fundamental decision I have to make, where to sell my meat, has no performance indicators. No performance in the market is recorded. It's a crazy situation. "We have hundreds of thousands of tonnes of meat exported by 22 exporters and we have no idea who is doing the best job. more>>

Battle won, now down to business
Ian Grogan doesn't do anything lightly - whether it's making decisions how to run his 380ha sheep and beef farm in Manawatu - or preparing for his term as a director of PPCS having ousted appointed board member Alistair Polson. Grogan's been a PPCS shareholder for years, going back to the days when the Hawke's Bay Farmers Meat Company folded, choosing to send some stock to the South Island because he is a strong supporter of the co-operative model. "They've been a great company to deal with," he says, but that hasn't stopped him being concerned about what is happening to the meat industry and wanting to be involved in the decisions to bring about improvements to the abysmal returns on equity to sheep and beef farmers.He doesn't believe the mega-merger takeover proposed by the Alliance Group supplies the answer and for his reasoning goes back to another Hawke's Bay company closure, Weddel-Crown's operation in 1995, when Trial Run Holdings was established with more than $50 million of farmers' money to see that the industry's overcapacity problems were resolved. more>>

Black elected to Meat & Wool NZ
Riverton farmer and former Meat Industry Action Group member Leon Black has been elected on to the board of Meat and Wool NZ. Mr Black's election to the board will be the icing on the cake for MIAG who are certainly on a roll in terms of gaining strong representation within the meat industry. Members of the pepper group have stood for three separate boards in the past three months.First there was Mark Crawford (former MIAG Chairman) and Jason Miller (executive member) who stood for the Alliance Board (against Chairman John Turner) and were elected on back in mid-December.Then, Herstall Ulrich (executive member) stood for the PPCS board, against its chairman Reese Hart - and again, he too, rolled the chairman and is now a director. more>>

Lincoln graduate to US to study livestock marketing
Research into how NZ red meat farmers are attempting to increase profitability by marketing their own product has led to new Lincoln University graduate Ross Bowmar being offered the opportunity to participate in a global livestock research programme in the USA.As part of his Bachelor of Agricultural Science degree, completed with First Class Honours in Farm Management, Ross researched five South Island red meat farmers who are seeking to increase profitability by marketing some of their products themselves. He wanted to know what motivated them and how successful they were, and he wrote up his findings for his honours dissertation titled Farmer Level Marketing. more>>

Team morale vital to tackling tough times on-farm
DairyNZ is reminding drought stricken farmers that during tough times it is more important than ever to look after people on-farm. This includes themselves as farm owners and managers as well as their farm team. DairyNZ Human Capability Acting Programme Leader, Geoff Taylor says during a time like this, farmers are understandably focused on maintaining the health and well-being of their herd. However, it is important to remember the people involved in the operation who can also be feeling the pressure. “In situations like this, farm owners and managers can be under intense pressure. It is important they look after themselves to make sure they are making the best possible decisions,” says Mr Taylor. “It can be a real help to talk with others and find out how they are dealing with the situation, such as a neighbour, a consultant or your local discussion group.” more>>

Business skills a must for farmers
Promising outlook makes business skills a must for farmers Rabobank is expecting continued strong interest in its Executive Development Program (EDP) for primary producers this year, as farmers prepare to take advantage of the favourable market conditions being seen in 2008. Rabobank’s head of rural banking for NZ & Australia, Neil Dobbin said that in the competitive and volatile global environment that producers operate in, high-level management skills to drive continuous business evolution are a necessity. “Rabobank believes that producers are strategically well placed to meet global food demand, which is currently well in excess of supply. The EDP is a forum for our farm leaders to prepare for the opportunities that this promising time for agriculture holds,” Mr Dobbin said. Good managers are still searching to improve their skills and to mix with like-minded people, he added. “The fact that they seek out these development opportunities is what makes them successful.” more>>

Bulls face redundancy
The average dairy bull has a lot less work to do this year. With more dairy cows than ever before being artificially inseminated the role of the bull has become redundant on some farms. The dairy industry is growing and demand for cows bred by top AI sires has outstripped demand, says LIC Genetics general manager Peter Gatley. Many farmers put most of their herd to AI and then use a bull to take care of the rest, but with cow prices exceeding $2000, many had simply carried on with AI, he said. This season showed the biggest increase in artificial insemination since LIC first offered the service more than 50 years ago. more>>

Animal agriculture's future - value or volume?
Trans-Tasman partners, NZ’s AgResearch and Australia’s CSIRO Livestock Industries are holding a major industry and scientific conference later this year to examine the commercial future for high value food and fibre products from the farm. The Conference will bring together eminent agri-business leaders and scientists from around the globe to discuss the current drivers of change in animal agriculture, cutting edge science for the future, and industry transformation using case studies to examine responses from the dairy, meat and fibre sectors. According to AgR Dr Andrew West, the three day conference, to be held in Christchurch will focus on the debate about on-farm value adding. “As scientific research agencies, we think there is a promising commercial future for Australasian farmers to grow ‘high value’ food and fibre products. For example we envisage a future where some dairy farmers will produce milk for highly valuable neutraceutical products designed to enhance human health. “However, we are aware that not all in industry share our optimistic views about the commercial future of these sorts of products and this conference will feature speakers who are less enthusiastic about on-farm ‘value-adding’ as well as those who are. more>>

Farmers brace for steep rise in fertiliser prices
Farmers are to be hit with a 37% increase in the cost of fertiliser as global demand pushes up the price of imported ingredients.
Balance Agri-Nutrients and Ravensdown, which control about 90% of the NZ fertiliser market, say farmers can expect to pay an extra $100 per tonne of superphosphate within six months, pushing the price up 37% to $366. Balance spokesman Peter Mourits said the price rise is driven by global demand for fertiliser, particularly from China and India, and the growing thirst for bio-fuel, which requires much more superphosphate than pasture. In the past 18 months, sulphur prices have "gone through the roof". Rock phosphate prices have soared 300% to $US200 per tonne, report Mourits and Ravensdowns Rodney Green.Fed Farmers president Charlie Pedersen said there would be short-term pain from the fertiliser price spike, which was early evidence of the impact of bio-fuel production on global commodities. But the corresponding massive spike in food prices would offset the impact of higher prices for superphosphate, Pedersen said. "It means that long term, it's a very good position for farmers [and] the NZ economy." more>>

Merger may boost profits
Farmers want predictable, consistent and sustainable prices for lambs, the owner of Progressive Meats, Craig Hickson, told farmers in Dannevirke. He was talking about the realities of making a better meat industry, with a profitable return for farmers. That's not the way it's been for lambs this year, with prices dropping to record lows. Hill-country farmers are struggling and banks are restructuring farm debt on many breeding properties.Mr Hickson believes the mega- merger would benefit NZ marketers especially when they deal with large buyers, such as supermarkets in Britain. "Is 80% the right figure? I don't know. Maybe the merger needs to have 80% to hold the line on other supplies of NZ meat, but it doesn't hold it for other countries," he said. Meanwhile, there would always be a place for the smaller meat companies to fill the gaps he said. Lambs cost about $20-25 to process. "They're cut up and bits go to different places. The racks are high value and go to say North America, the flaps to China, the necks to the Pacific Islands." The tricky part is finding markets for all the parts. "We never get orders for all the lamb. So we're always in a position of having too little or too much. Too much means you're in the position of being a weak seller. And the profit is always in the sale of the last bits." more>>

Meat and Wool levy under fire
A possible 50-year low in profit for sheep and beef farmers has them questioning their industry levy.Ohinewai sheep and beef farmer, Theresa Stark said she did not feel the return they were getting from M&WNZ was justifying the levy they had to pay. "M&WNZ have just come out with their mid-season update which says if the dollar was to stay under US80c then we are going to have the lowest ever farm profit before tax recorded in the last 50 years," Mrs Stark said after the Mid Northern Beef Council annual meeting last night. "If we are paying all this money in levies how did we get to this low?" Beef farmers currently pay $4.40 per animal slaughtered to fund M&WNZ.A decision to use Meat and Wool cash reserves instead of putting levies up drew a differing view from Waingaro farmer Rory Sherlock."As farmers we need to take a longer term look. We spend time taking a very short-term point of view because things are bad at a particular time. more>>

Collaboration on productivity and better animal health
AgResearch has signalled its intention to raise ruminant productivity and welfare standards over the long term with the announcement of a formal collaboration with one of the world’s leading animal health research institutes. For more than fifty years the Scottish based Moredun Research Institute (MRI) has been internationally recognised for its work on infectious diseases in sheep and other ruminants and AgR CEO, Dr West says both organisations stand to gain from the collaboration. “Ruminant livestock such as sheep, and cattle that are farmed in Scotland are also farmed here in New Zealand. By sharing knowledge, we can create better technologies for farmers,” he said. AgResearch Section Manager for Animal Health and Director of the Hopkirk Research Institute Dr Wayne Hein said one of the Moredun’s strengths was its focus on parasitology and infectious diseases. more>>

Grape marc as supplementary feed?
Grape skins could be the answer for Blenheim farmers struggling to find enough winter feed. The drought situation has eased slightly in Marlborough with more than 50mm of rain falling two weeks ago, but farmers are still struggling to get supplement stored for winter and autumn. Pelorus dairy farmer Bruce Richmond said there was virtually no supplement available and what there was, was very expensive. There has also been a widespread failure of summer crops. “Farmers are going to go into winter short of feed and that sets them off for a terrible season.” One answer for Blenheim farmers could be grape marc (grape skins, seeds and pulp). Grape marc can be mixed with maize or silage at a 50:50 ratio and is available very cheaply. Mr Richmond said he basically just pays for the cost of transport and he will be mixing it with maize to use as autumn feed. This March, when more grape marc arrives, Mr Richmond is going to try and store some for winter. It does not store well out in the open but he is going to cover it in a pit and assess how it goes. “It may ferment and the cows may get a bit `tiddly’, but we’ll wait and see.” more>>

The value chain
Driven by drought, depressed prices and despair, hundreds of SI sheep farmers have expressed in recent days near-unanimous support for a restructuring of their industry. They believe their salvation lies in the Mega plan. In theory, it could be. But making it happen will require nothing less than building a completely new industry from consumers abroad back to farmers here. Every link in the new value chain needs fundamental changes in attitudes and practices by every player involved. One chilling story describes the dysfunction into which the industry has fallen. Tesco and Sainsbury, the two largest UK supermarkets, account for 56% of the NZ lamb sold in the UK, by far our major market. But the retailers have given up trying to deal with our processors. Instead, they work through European processors who help manage the meat category for them by sourcing, preparing and packaging meat. Some of the meat is NZ lamb. But the new intermediaries typically take a 35% profit margin in addition to the 35% the supermarkets take. So that leaves only 30% of the profit to share between shipping companies, processors and farmers back here.So prices in the UK have rarely been better, but returns to farmers here haven't been so bad for a long, long time. Yes, the high dollar and inefficiency in processing are factors. But the truth is our lamb industry, bar a few honourable small-scale exceptions, has always been a hopeless marketer. That's what's killing the industry. more>>

A1-A2 milk- it won't go away
The following is a summary of NZ govt-sponsored research, clinical or otherwise, into A1 and A2 milk since July 2004: None. Why July 2004? That was when Professor Boyd Swinburn, public health specialist at Deakin University in Melbourne, published a review into existing research on A1 milk and human health risks such as diabetes and heart disease. Swinburn's study, for the NZ Food Safety Authority, said the need for further research was "abundantly clear. The Health Research Council, which manages government investment in public good health research, has funded no studies relating to A1 and A2 milk, ever. Auckland diabetes specialist Professor Bob Elliott sought Health Ministry approval to fund a repeat of a potentially important animal study, which was later found to be fatally flawed by contaminated feed supplied by the NZ Dairy Research Institute. The ministry declined to meet the cost of the project, and has since approved no further studies and cites the Food Safety Authority as the relevant body, although the FSA has also neither promoted nor funded any scientific follow-up to Swinburn's report. more>>

Six years between shearing crowns
John Fitzpatrick snatched back the coveted Golden Shears crown in a frenetic finals showdown. It was the performance of a lifetime after a six-year wait since his last crown for Kirkpatrick, 37, of Napier, who blitzed the field at the 48th Golden Shears international shearing and woolhandling championships as he worked his way through his 20 sheep.Event commentator Koro Mullins told a full house of 1500 people at Masterton's Memorial Stadium on Saturday night that the event was the highlight of the shearing year in what is a hard industry."They sometimes say this is the hardest, dirtiest, smelliest industry there is, but here tonight we get our chance to glorify it." Kirkpatrick did just that, beating legendary David Fagan, as well as past-winner Dion King and reigning champion Paul Avery, along with Scotsman Gavin Mutch and Dean Ball. Fagan was first finished on sheep one, but Kirkpatrick pulled away from the pack by the 15th sheep. more>>

DairyNZ : All-rounder sets high goals
Tim Mackle used to be a Kaikoura farm boy, devoted to sports and not wanting to be anything else than a farmer. He went to Lincoln University and graduated with an agricultural science degree, then to Cornell University in New York to become a doctor in animal nutrition. After a high-flying career at Fonterra, he became chief executive of research organisation Dexcel, which was merged with funding provider Dairy InSight last year to form DairyNZ. “As you can see, I never got back to the farm but I am still close to it,” he said. At DairyNZ he wants the focus to be on a coordinated approach to helping farmers.“So we don’t want scientists looking at just their own projects.” “I want them looking at the big goals for farmers, for example in animal fertility it might be to increase conception rates on the farm, and they would need to look at how they’re working with others to achieve that goal. “The board has given me a very strong message that they want DairyNZ to accelerate on-farm adoption of the skills, ideas and technologies that are going to help farmers and improve the farm’s bottom line. more>>

Unco-operative: Taking a stand
There's a rift in dairying ranks. And that's uncommon in the industry renowned for its co- operative nature. Jill Galloway reports on farmer response to Fonterra's plans to shelve, for the moment, its plans to restructure.Dairy farmers usually speak with one voice on their industry. But not so when it comes to outside shareholding. The townie shareholder - friend or foe? It depends on the farmer's stance. Outside shareholding brings money (maybe $10b), but it could be the beginning of the end of farmer control of the New Zealand dairy industry.That's the dilemma. Read views of famers on this contentious issue. more>>

Milk suppliers open fire on Fonterra ruling
A High Court injunction will force Fonterra to supply competitor Open Country Cheese with cheap milk, but leading Waikato Fonterra suppliers say the company is hiding behind legislation to stay in the market. Open Country is entitled to a limited milk supply under anti-monopolistic laws and went to the High Court when Fonterra refused to supply it with milk at a regulated price. Fonterra blamed a late forecast by Open Country and charged them a market rate instead. The injunction forces Fonterra to continue the supply until the full matter is heard.Morrinsville farmer Lloyd Downing said the Dairy Restructuring Act was passed to ensure competition, not supply Open Country and other competitors with subsidised milk. "If Open Country was supplying the local market I would have no problem with it but they are on the world stage competing against us."There would be no other country in the world that would give its only truly international competitor a ball and chain in having to supply two bully companies down the road." more>>

Targetting prime cuts
Hawke's Bay stud sheep breeder Rob Forsyth isn't pessimistic about the industry's future – just frustrated. It is a frustration born out of his first- hand experience of the benefits of the technology available to sheep breeders. A computerised tomography scanner –- better known as a CT scan, the same as that used in hospitals to take cross-sections of the human body is used each year, when he sends his top 18-20 ram lambs to Lincoln University, and scans are made of the key meat- producing parts of their bodies – the rump, loin and shoulder. From this, he makes his breeding decisions. "It's expensive, but it's the only way to go if you're serious about breeding the best meat-producing sheep," he says. The CT scans have resulted in much meatier sheep in his and his clients' flocks. But, frustratingly, he and his clients aren't seeing a proper financial reward for the much meatier lambs they are producing. Meat companies are experimenting with various ways of measuring the value of meat on individual lamb carcasses, but talk of introducing payments based on this has yet to be put into practice. more>>

Dollar picked to hit US85c
The NZ dollar, which yesterday hit a new post-float high, is likely to accelerate to US85c to US87c within months or possibly even weeks, bank economists warn.The dollar's appreciation is crushing news for producers. This week Export NZ called on the Reserve Bank to deliver an immediate interest rate cut. But the chances of governor Alan Bollard heeding exporter pain are zero, BNZ 's Tony Alexander said. Brendan O'Donovan, from Westpac, agreed. NZ's inflation problem was pressing and Bollard would not let that genie out of the country's economic bottle. Economists argue the inflation risks are so great a lower currency would actually harm the economy. Election year, Alexander said, would deliver the "mother of all fiscal loosening" on top of the dairy boom, rising wage costs, emissions trading, ACC charges, soaring petrol, food and energy prices, high capacity utilisation, low unemployment and businesses increasing employment intentions. "If the Kiwi fell 10%-15%, demand for labour in NZ would go through the roof. "Wages would go up, leading to a wage price spiral that would eventually be contained only by deep recession,'' Alexander said.more>>

Farmers kick Hart off board
Desperate sheepfarmers have dumped Reese Hart, the chair of NZ's biggest meat firm, in board elections. Hart is the second co-op chairman to lose a board seat in two months. Yesterday, Dunedin's PPCS announced board election results before the annual meeting on Friday to keep the deck clear for less controversial and other business. In December, Alliance farmer-shareholders ousted long-serving chairman John Turner. He seems to have paid the price for rejecting a merger with PPCS in September. Hart backed a merger that would have created a company with $3 billion in revenues and 57% of the sheep meat industry. He had been working towards greater co-operation with Alliance in global marketing but farmers seem to want more action.A farmer lobby group, Meat Industry Action group , has been driving the challenges to the two big co-ops' leadership. The group favours co-operation and merger between the two big co-ops. Former Miag members have unseated the two chairmen. For the third year, sheepfarmers are battling to make a living, as prices do not meet the cost of rearing sheep. more>>

Sharemilkers in drivers' seat
Sharemilkers look set to cream big pay rises as Taranaki farm owners struggle to attract workers.One Taranaki dairy farmer has upped his sharemilker's cut of the dairy cheque to 60% after attempts to sign a 50/50 worker drew no response.Don Harvey says he was faced with the choice of selling his property, leasing his land or offering the 60/40 position. "I had the opportunity of buying cows for myself. At my age it is not on. It will give a young chap a chance to get ahead," he said. Taranaki Farmers dairy co-ordinator Kim Harrison describes the situation as desperate. "I have four farmers in my area without 50/50 sharemilkers," he said. "A few will look at lease options instead. This will give the farmer substantially less. Good sharemilkers that are available are being head-hunted." more>>

Crutching unit makes life easier for shearers
A novel crutching concept is taking the hard work out of an otherwise back-breaking job. Former shearing contractor Wayne Perkins, developed the Crutchmaster, a one to three-stand mobile crutching unit especially designed for belly crutching. "That's the real beauty of it," said Hayden Clearwater, a Mataura-based contractor who recently set up Clearwater Crutching using the Crutchmaster. The Crutchmaster has several unique features that set it apart from the more traditional crutching units, as farmers discovered at the Southern Field Days at Waimumu recently. Its portability meant it could be used in any weather, it had a low labour requirement and was extremely efficient. Also, the animals did not have to be emptied out for crutching.The ewes or lambs walk through the machine and are pulled on to a board by the operator and, with their neck and feet held firmly in clamps, they could be crutched easily. With no electric motors or computerised equipment, the potential for breakdowns was greatly reduced. The team's best tally was 5410 lambs in a day, which he believed to be about 2000 lambs quicker than a conventional shearing shed's tally. more>>

Targets met in clean streams accord
“We are halfway through the Clean Streams Accord, and dairy farmers are demonstrating that on-farm environmental management is firmly on their agendas, and this is being matched by a significant improvement in performance from the majority of our suppliers,” said Chair of Fonterra’s Sustainability Leadership Team, Barry Harris. Mr Harris said that 83% of rivers, lakes and streams have been fenced off by farmers to exclude dairy cattle and 97% of regular race crossing points now have bridges or culverts. “This puts us well ahead on both of these targets for the 2006/07 season.” However Mr Harris said that dairy effluent compliance was still the single largest challenge in the Accord for farmers and the industry. While significant non-compliance fell to 7% this year, it still did not meet the Accord partners’ commitment. more>>

Vet shortage predicted to bite at industry
NZ needs at least 100 more vets and Massey University says it will take five years to make up the shortfall. The shortage has brought concerns of dire economic consequences for the country's animal-dependant exports, the N Z Veterinary Association warns. Massey is prepared to take more students. It offers NZ's only veterinary training. The shortage has been ongoing for years and the industry has done a lot already to make it better for graduates, he said. ``Practices have become more flexible, there are shorter working hours and more collegial support for new veterinarians. The NZVA's newsletter said it is worried the shortage of rural vets could mean possible consequences for the country's trade in animal products and therefore the economy. Meat plants have vets in attendance and most animal products for export must be signed off by a vet. ``We're very concerned for animal welfare, surveillance for serious animal diseases, and food safety, which are at risk in certain areas of the country,`` said NZVA president John Maclachlan. more>>

Mega meat merger essential
Merging the four largest meat companies is essential for the restoration of NZ's meat industry says Dr Andrew West, of AgResearch. "NZ lamb is the world's elite, mass produced edible protein yet returns to farmers have dramatically fallen in the past 24 months. Lamb has not failed as a product. It is our industry structure that has failed and the good news is that it is in this country's power to fix the problem. "There are perhaps three times as many people fighting to procure lambs for the meat processing companies as there are people marketing this wonderful product to supermarkets and restaurants around the world. We urgently need to reverse that ratio and the only way to do it is this mega merger. "Farmers have to stop selling on the spot market. They must enter contracts that mutually bind them and the new meat company to produce lamb that wealthy consumers will pay considerable sums for and for which NZ Inc gets its fair share of those consumers' cheques. more>>

It may cost $40k to start mega meat
Farmers may have to invest up to $40,000 each to kickstart the Alliance Group's mega meat company. However, payback could be within six to 12 months. More than 700 farmer shareholders gave the concept a clear mandate in a straw poll at meetings in Gore and Invercargill yesterday. Chairman Owen Poole was clearly pleased with the response as he puffed away on a cigarette after the Gore meeting."This isn't Fonterra. "We are not asking for a million bucks from each farmer," he said. Mr Poole said the major meat companies would be invited to join the mega meat company, but he expected at least two of them might want to cash up. This meant farmers may have to invest between $10,000 and $40,000 to buy them out, based on their current level of investment in the co-operatives and the structure of the new company. "Farmers that have no investment (in a co-op) will obviously have to contribute more," he said. Benefits of $10 per lamb could be expected from market cohesion while another $5 would come from reduced overheads, such as cartage and administration. However, plant closures would be inevitable with industry consolidation. more>>

Greener pastures sought
South Taranaki farmers are sending their cows out of the region by the truckload as dry weather ravages the countryside. And in an ironic twist, many are going to the Hawke's Bay which suffered its own devastating drought last year. Other farmers have been forced to sell cows that have gone dry early. Normally they'd milk well into the autumn. Five hundred South Taranaki cows are going to one Hawke's Bay farmer who de-stocked last year because of the drought. Mr Wards says several farmers in the area have already dried off their entire herds and most are on once-a-day milking. He says a sheep and beef farmer neighbour last year donated a truck and trailer load of hay to the Hawke's Bay. Now he is in the situation where he is feeding out his own hay two months earlier than usual.The farmers are paying $14 per head per week and $25 cartage with a review of this price in May. The trucks bringing stock to the works from Hawke's Bay are taking the cows on the return trip, making the cartage cheaper. more>>

Simple survival strategy
Sheep farmers are under extreme pressure at the moment, but Anne Hardie talks with a farmer who keeps his attitude and bank balance positive with careful planning and a tight hold on costs. Hill country sheep farmers have good reason to be feeling more than a little grumpy these days. Their dairying neighbours on the valley floors have never had it better and their overseas counterparts are enjoying good returns for sheepmeat and beef. Here in NZ, they're facing their third-worst year in 50. Lamb prices barely cover the cost of producing them, and wool - well, it's become more of an animal health issue to shear rather than a matter of putting money in the bank. In some cases, filling those wool bales ends up costing the farmer.Yet, under the grim exterior, they're an optimistic lot. Take Dennis Meade, who farms a 405ha property at Matariki with wife Tricia and part-time help from son David. Dennis jokes that a miserable face is part of the image for sheep and beef farmers these days, but beneath this is a dry humour that low returns can't remove. A big part of that is attributed to his tight hold on the chequebook. more>>

Hearing on Central Plains Water starts
After eight years of talk, planning and furious argument, a decision is finally in the pipeline for the giant Central Plains Water (CPW) irrigation scheme.Today, in a first-floor room of the Christchurch Town Hall, the independent hearing that will decide the future of the massive project begins. Hearings are scheduled to run for around five months, though further legal action, in the shape of appeals to the Environment Court, are expected to further lengthen the process. CPW will spend the next two months making its case for the $409 million plan to draw water from the Rakaia and Waimakariri Rivers. Doug Marsh, the chairman of the CPW trust, will be the first of 32 witnesses to give evidence for the irrigation group. "We believe that we have put up an impregnable case in terms of the science," he said. "If we had three times the budget we do not think we could have done more." more>>

FeedSmart workshops
This nationwide push to improve feed planning skills and tools for sheep and cattle farmers kicks off in March. Run by AgResearch and funded by M&WNZ and Pastoral 21, FeedSmart will explain pasture measurement techniques, new calibrations for measurement devices for sheep and beef pastures, new feed requirement tables and basic principles of feed planning. The FeedSmart workshop programme offers three kinds of workshops that cater for different levels of farmer knowledge, experience, interest and local contexts and issues. Introduction to Feed Planning Workshops, Tools For Feed Planning Workshops, and Special Interest Workshops are the three kinds.
more>>

Fonterra fixed on listing plans
Fonterra is pressing on with plans for a listing on the stock exchange, despite cancelling the first farmer vote on the proposal. Fonterra chairman Henry van der Heyden announced the cancellation of the May vote this week, due to farmer opposition to the concept of inviting external investors into the co-operative, but Fonterra will unveil details of its controversial milk pricing mechanism to farmers at more than 100 meetings next month. Fonterra said the mechanism would answer the tension between farmers being paid a good milk price against investors receiving an acceptable dividend. more>>

Footing it with the big cheeses
In 2005, Te Mata Cheese Co was an award-winning boutique cheesemaker in Havelock North selling 10 tonnes of aged specialty cheese a year, almost all of it to a small circle of customers close to its Hawke's Bay home base. Twenty-one months later, it is a national market force, still selling specialty cheese, but annual sales have leapt to 350 tonnes, and include cultured cream cheese, sour cream and yoghurt. This year, sales will lift further to 400 tonnes, and the company is closing in on its aim of reaching 500 tonnes of specialty cheese – brie, blue, feta and washrind – and 200 to 300 tonnes of cultured products. more>>

Food supply fears heighten UK GMO debate
Rising food prices due partly to soaring demand in China are increasing pressure on Europe to boost harvests and could help turn the tide in favour of genetically modified crops despite widespread public opposition. Opponents have cited concerns that GMO crops could have a negative environmental impact and could even pose a risk to human health. European Union governments have been unable to reach a consensus to speed up authorisations. GMO crops met a hostile response when first touted in Europe a decade ago after they were dubbed "Frankenstein foods" and it has proved hard for proponents to overcome consumers concerns. But pressure is growing for acceptance of GMO technology. more>>

Farmers warned to treat for facial eczema
If farmers haven't begun treating their stock for facial eczema, they'd better get cracking, warns DairyNZ consulting officer Louise Cook."It's my biggest concern at the moment. We've had all this dry weather and now moisture. These are perfect conditions for FE spores," she said. Usually farmers have parts of paddock or whole paddocks that are FE safe, but that is not the case this year, Ms Cook said. "These conditions we've had, everyone is dry, strange climatic conditions. Now with this moisture everybody is at serious risk of having an outbreak of facial eczema." more>>

NZ Wool International turns around loss
New Zealand Wool Services International today reported a December half year net profit of $1.32 million, turning around from $1.8m loss a year ago. It warned the second half would be challenging because of the high dollar and high interest rates. Turnover jumped 48 percent to $86.7m following the company's purchase of Raymond Dale Wool Marketing last year. Managing director Michael Dwyer said that the solid half year result, the best for four years, was gratifying particularly in light of continuing difficult trading conditions.more>>

PGG Wrightson's half-year profit surges
Leading rural services company PGG Wrightson has posted a 68 per cent jump in half- year profit to $34.6 million. However the shares fell 9 cents in light early trading to $1.91 as investors digested that a considerable part of the higher earnings resulted from share price appreciation in and performance fees from the Wrightson offshoot, New Zealand Farming Systems Uruguay. That company buys land and is developing dairy farms in Uruguay. Hamilton Hindin Greene partner Grant Williamson said there were a few questions over the quality of the earnings and the boost from NZFSU. Unless NZFSU performed extremely well in the future PGG Wrightson would not see those sorts of gains from it again. more>>

ANZCO, AFFCO hold key to plan progressing
Privately-owned ANZCO and NZX-listed AFFCO are the keys to the establishment of a dominant meat company able to deliver higher export market returns to NZ sheep and beef farmers. Between them, they have about 18% of the crucial sheepmeat market, and at least one of them will have to sign up to the concept plan floated by Alliance Group if it is to reach the target figure of 80% of the country's livestock supply. The concept is mostly about the lamb market, where many farmers are in desperate straits over the combined waves of low returns and rising costs. Big co-operatives Alliance Group and PPCS have about a 56%-57% market share between them and will provide the base of the new entity if it proceeds. The plan is still just a concept progress and detail now depends on the response from their farmer shareholders. ANZCO executive chairman Graeme Harrison and AFFCO chairman Sam Lewis said they had an open mind on the plan. more>>

Rumours PPCS link considered
NZ's largest meat processor, PPCS, may have flirted with a suggestion that rural PGG Wrightson invest in it.The idea is not a goer, but it might have been talked about. The Alliance Group's grand proposition -- a meat company mega-merger -- has taken over and PPCS says it is focused on taking part in those discussions. A Southland farmer lobby group, the Meat Industry Action Group, said members had heard a rumour that PPCS was talking to PGG Wrightson about processing Wrightson stock under contract (toll processing), as well as about the possibility of PGG Wrightson investing in PPCS. more>>

Fonterra chairmans letter
We've had a lot of good feedback on the proposed changes to our capital structure and it is very clear that we will need to spend much more time in consultation and discussion before any final deciding vote in 2010. Consequently your Board has decided that it will not proceed with the preliminary vote in May to change Fonterra's structure into two entities. While we still believe there would be benefits in road testing the two company structure, it is not essential at this time. more>>

NZ investors addicted to mediocrity
How depressing. Fonterra’s decision to suspend its plans to open itself up to outside shareholders and list on the NZX is proof positive if we ever needed it that NZ investors, and therefore NZ, lacks ambition and the ability to take risks for global growth. This decision shows that the most important single group of investors in NZ (the 11,000 farmers who own Fonterra) don’t have faith in the managers of Fonterra, don’t believe in our capital markets and don’t have the ambition to become a truly global company. Just like so many investment decisions made by our mostly elderly investing classes, they are so obsessed with property valuations and their own searing experience of the 1987 stockmarket crash that they can’t bring themselves to take any risk associated with the equity markets and the professional managerial classes. Instead they are more than happy to take enormous risks with debt-fund investments in property they can walk on. It shows a lack of imagination and, frankly, intelligence. It’s a controversial view, I know, but one I believe I can argue simply by pointing to our stagnant productivity growth, our ludicrously overvalued property prices and our lack (forever it now seems) of a truly global company that can profit from global markets. more>>

Adding more muscle to meat industry
Market-place competition is usually a good way to sort out the wheat from the chaff - demand drives supply, better performance is rewarded, the bar is raised and everyone prospers. Usually. But the consensus in the meat industry is that radical change is needed and some say competition is part of the problem. Alliance Group is proposing the creation of a dominant market entity to manage 80 per cent of national livestock from farm to market. The target is to generate $400 million more each year in farm returns and boost prices by $15 a lamb, from market cohesion, reduced overheads and by removing excess processing capacity. The concept will need legislative support, for which there is precedent in the form of Fonterra, and has initially drawn wide backing from across an increasingly desperate industry.Some sheep farmers face cash losses for the third season and no business can operate for long on that basis. more>>

Dairy hits back at critics
Dairy farmers have slammed critics who are using a recently released environment report to promote the regulation of agricultural production. Fed Farmers Dairy chairman Frank Brenmuhl says farmers care about the land. According to Brenmuhl, farmers will continue to invest in research and development to ensure long term sustainability, and then put into practice the information that is gained. ‘It has always been this way,’ he says. ‘It is the way we have proceeded to become the industry we are and we are not going to roll over lightly just because some misguided folk with personal agendas cannot read a straightforward report and use the information in the best interests of NZ.’Brenmuhl says the call by Fish and Game on the government to regulate production from the agricultural sector is absurd. He points out that the organisation is presiding over the spread of the most noxious water weed.‘Fish & Game has steadfastly refused to acknowledge the role of fishermen with felt soled boots have, in the spread of didymo otherwise known as ‘rock snot’ to iconic and what were, pristine rivers.’ more>>

LIC called a market hypocrite
A small Waikato dairy genetics company is accusing LIC of hypocrisy for complaining about deer farmers restricting who can use their stags' genetics when they claim LIC does the same thing in the dairy sector.LIC was barred last month from attending five deer sales in an effort by breeders to retain their intellectual property over genetics from top stags a move LIC dubbed anti-competitive. Dairy cow genetics supplier Liberty Genetics, which has 2% of the market, has waged a David and Goliath battle with dominant player LIC over clause 62 in its terms and conditions, which prevents farmers from selling or leasing bulls born from LIC supplied semen to other genetics companies. LIC general manager genetics Peter Gatley said the deer and dairy issues could not be compared. LIC respected deer breeders' rights to apply similar clauses to their genetics, but had taken issue with being told they could not attend sales."There is a misconception that Clause 62 has diminished the flow of genetic material between LIC and Ambreed. From the outset the two companies have agreed to continue trading freely, and LIC has also traded rights with companies such as Liberty Genetics who have also followed our lead and adopted the clause."more>>

Waging war on broom
Broom is costing NZ millions of dollars a year as it sweeps over the countryside. But now there is hope that it can be controlled.The lid is opened with a flourish and white moths flutter out of a jar, one at a time, tentatively tasting freedom. One moth distractedly swoops onto an onlooker in a clearing surrounded by a dense thicket of broom. "Quick mother, put one in your pocket," quips a farmer, there among a small group to witness the historic occasion. Regaining composure and with bearings re-set, the nocturnal moth takes flight again to land on a broom bush. Thus, the first, small step of a long battle has begun between a biological agent and an environmental time-bomb. Scotch broom, Cytisus scoparius, has been described as a worse scourge on the landscape than gorse. more>>

Meat-merger plan gets wary welcome
Although the aim is laudable, a mega-merger of several meat companies faces huge hurdles, industry commentators caution.
Lincoln Uni Agri-business Prof Keith Woodford said if it got off the ground it would be the biggest upheaval in the industry for more than 100 years. Championing the mega-merger of meat companies is Alliance's new chairman, Owen Poole. Alliance says a company with 80% of the sheepmeat market was needed to get the efficiencies and international price clout needed. Woodford said the proponents of the merger should be commended for exploring this but it faced "daunting challenges". Tthe first being that NZ's four largest meat processors and exporters had quite different structures and shareholders. Woodford said the merger would be anti-competitive and would need govt legislation to push it through.The European Union might also raise the question of a monopoly as had been raised successfully against Fonterra in a European court. more>>

TV blitz to lure workers
When former software trainer Helen Bond called a dairy industry recruitment programme in the summer of 2005, she was at a crossroads in her life. She had been working up to 80 hours a week in the city and decided it was time for a change. The support and advice she got from the Go Dairy client managers clinched it for her.Her first dairy farm job at Eketahuna was a challenge. She was thrown in the deep end and says she learned a great deal from the experience. Now she’s second in charge on the farm next door, studying for a diploma and planning to become a sharemilker and eventual farm ownership. She’s loving every minute of it. ‘There are no office politics out here,’ says Bond. She is part of a growing list of people who are switching for a career in the dairy industry. more>>

Elworthy, MIAG popular at field days
If any site at the Waimumu field days drew the crowds in today it was No. 8 - the MIAG's site. MIAG Vice-Chairman John Gregan said that sheep and beef farmers flocked to the site to hear South Canterbury farmer and businessman Forbes Elworthy speak on the future of the meat industry and to hear what the Natural Products Company had to offer farmers. "It was a huge success and it was lucky that the machinery for the vendor next door failed to turn up, as at times the MIAG site could not contain all the farmers." Mr Elworthy spoke to large numbers of Alliance and PPCS shareholders about the benefits of a merger between the two companies. Together with a group of farmer-supporters and businessmen, he has formed the Natural Products Company which is intended for use as a merger vehicle. NPC hopes to consolidate the meat industry and bring increased returns to farmers. more>>

Stricken farmers cut costs
Drought-stricken Waikato farmers are cutting spending as a national response to the worst dry spell in decades kicks in.Ag Minister Jim Anderton told farmers to "prepare for the worst" following a meeting of Government and farming sector groups at the Beehive yesterday that offered the prospect of tax relief, and a co-ordinated effort to ensure farmers have enough feed until rain arrives and pasture returns. The meeting came as significant rain fell on the Waikato, but it was not enough to solve the crisis. Waikato Fed Farmers president Stew Wadey welcomed the Government's move and said farmers were already tightening their belts as production dipped despite a record Fonterra payout forecast of $6.90/kg ms. The drought has cut Waikato milk production by 27% and Fonterra has warned it could slash $500 million from farmers' milk cheques. "The money is not going to go round from a bountiful dairying season. We are still going to live to fight another day although it will be tight." more>>

Alliance tells of mega plan
The Alliance Group wants to create a mega meat company that will become the major player in the NZ meat industry. In a letter to shareholders yesterday, chairman Owen Poole said the co-operative proposed a new single entity that would manage 80% of NZ's livestock supply, from the farmgate to the market. Mr Poole said this would boost on-farm returns by about $400 million a year. Short-term gains of about $15 a lamb were mooted. Mr Poole said the monetary gains would come from market cohesion and reduced overhead costs from the removal of excess processing capacity. However, Alliance would need the support of sufficient industry players to achieve the 80% t threshold. With PPCS' backing, the new entity would have 57% share of the market but it would still need the support of other major players such as Affco and Anzco. Shareholder suppliers welcomed the news and believed 2008 could be a watershed year for the lamb industry and that in a few years the $100 lamb could be a reality. more>>

Willow gets flock through
"Feeding sheep on fodder trees is not new and it's not rocket science," says Bulls farmer Denis Hocking. He farms on light sand country and dry conditions mean there is little feed for his 600 ewes in the pasture. Time to get the chainsaw out, and cut the pollarded willows. "These willows in this block are about 16 or 17 years old. They've been cut six to eight times." The tangoio is the most effective in his case, Mr Hocking says. It's supplementary feed rather than full feed, Mr Hocking says. "The idea is you get as much of the fodder material on the ground as quickly as possible. If it only goes in dribs and drabs, then the dominant animals get a full feed, but the others don't. "The thing about these fodder trees is you can put them in those hard-to-drain rushy areas. "They grow well and farmers can put lotus underneath. It grows well in wet, shady positions," Mr Hocking says. He says he is not sure exactly how much fodder the ewes need. "But one hour on the chainsaw will feed 600 ewes for a day. It is usually about keeping them at maintenance levels of feed, rather than trying to put conditions on them." more>>

Dairy Trust ready to roll
On August 4 a new era of competitive milk supply will dawn in Southland as the first tankers roll into Dairy Trust’s development at Awarua, just south of Invercargill.That is the date the company has set for the 200 million litre whole milk powder plant to start processing. With building on schedule and supply contracts being snapped up, everything is falling into place. ‘We’ve got about 130m litres signed up and we want to be at 175m litres by August,’ says field liaison agent Myles Herdman. The remaining 45m litres is nearly committed, with farmers just needing to talk to solicitors, accountants and/or advisers before signing on the dotted line, he adds. Awarua is the first of five factories Dairy Trust has planned, the others at Waharoa near Matamata, Wanganui, Horotiu near Hamilton, and a site in Northland. However, such is the promise of dairying in Southland it is possible a second Southland site may be sought, says Herdman. more>>

$20,000 fine for breach of dairying consent
Dairy farming is becoming difficult because of tight regulations, according to a company fined $20,000 for discharging too much effluent from its cow sheds. Hawke's Bay Dairies, which farms 435 ha at Crownthorpe, was fined in the Environment Court in Napier on Thursday. Managing director John Hopkins said the fine was harsh because his company had installed $1 million worth of equipment to manage the effluent and had believed it was meeting its resource consent. "We were working with the Hawke's Bay Regional Council on it and next thing we're in court," he said. The company had now set up a more accurate monitoring system and had changed some of its management practices, for example by feeding out in paddocks instead of on feed pads. The case had ramifications for the whole dairy industry because Hawke's Bay Dairies had used the best systems it could find, but had still got into trouble, Mr Hopkins said. more>>

Sheep numbers down to 50 year low
Counting sheep is not something only done by insomniacs - Statistics NZ also has the task of keeping a tally of our woolly friends. The number of sheep in NZ has fallen to its lowest level since 1955. Statistics NZ said there were 38.6 million sheep in New Zealand in 2007, down 4% from 2006. Sheep numbers peaked in 1982 at 70.3 million. Dairy cattle numbers though were up 2% on 2006 to 5.3 million. The number of deer fell 12% from 2006 to 1.4 million.Beef cattle numbers remained the same at 4.4 million. The numbers were from provisional figures from the 2007 agricultural production census. more>>

Advantages of OAD milking for families
Recent research at Lincoln University has highlighted the impacts of switching from Twice-a-Day (TAD) milking to Once-a-Day (OAD) milking on NZ dairy farms. The research report, entitled “The Human Face of Once-a-Day Milking,” is based on in-depth interviews with 20 farming families and reveals major benefits for family life, family relationships and personal job satisfaction for farmers. It points out the difference between good stress, which can be personally challenging and invigorating, and distress or drudgery, which can be demotivating and lead to burnout. It also shows how OAD milking can extend a farmer’s working life, providing a bridging pre-retirement management system, and can free up discretionary time to use for personal or family projects. The report concludes: “Dairy farmers are tired. Not because of hard work, but because of too much pressure. OAD offers a way to farm better and longer and even, possibly, to make more money. It offers a way for farming families to survive as families; it adds up to better quality of living.” more>>

Farmers must retain meat industry ownership
Hold on to your ownership of the meat industry with both hands, that's the message to farmers from MIAG Chairman Keith Milne. Low prices for lamb and subsequent lack of profitability has forced many farmers out of the industry in recent times and as a consequence both PPCS and Alliance appear to be looking at their options, too. "We are aware of at least three proposals currently being worked on by individual companies/groups so far without industry-wide co-ordination or common goals." Of these, Mr Milne said the biggest concern was PGGWrightson's possible move to invest in PPCS, which has been rumoured to include toll processing and PGGWrightson marketing under their own brand. "Such a move could cost farmers dearly. Never sell at the bottom and lose control of your co-operative." Mr Milne urges PPCS shareholders to urgently contact their directors and vigorously voice their concerns."They need to demand that shareholders be consulted with, and in a timely manner, before any decisions are made.""What's the rush, we ask that PPCS, and all industry players wait so all initiatives can be presented and considered by the Meat and Wool NZ Taskforce. more>>

Arrowleaf clover 'good for summer'
Plant breeder Pedro Evans believes arrowleaf clover could be a good crop for high summer grazing in the dry, eastern areas of NZ.
Argentinean-born Mr Evans worked in Australia for 20 years. He came to Christchurch a year ago where he works for Danish company DLF. When he worked for the Victorian State Government, he was responsible for getting the clover, a very late annual, into agricultural systems in Victoria and Tasmania.Trial plots of arrowleaf clover (Trifolium versiculosum) are being grown near Christchurch Airport and at Lincoln. Mr Evans said the clover, which grows to about waist height, does not die off until about February. This is long after subterranean clover, another dryland variety, has died off. If left, arrowleaf clover will seed and become self regenerating. By the third year the clover should have established a strong seed bank and could be grazed in December and January to finish lambs, or it could be cut several times for hay or silage. “If you manage it well, you only have to sow it once.”By February when it is declining, arrowleaf clover has about 70% digestibility. more>>

Crisis as farms turn to dust
The farming community is in crisis as crippling drought conditions grip NZ, prompting Fonterra to predict it could cost dairy farmers at least half a billion dollars this year.The Govt will hold a crisis meeting with farmers on Tuesday, as the embattled agriculture sector braces for another parched month.Throughout the country farms are turning to dust. Hundreds of thousands of dollars have already been lost through a downturn in production. Waikato is the driest it has been for more than 100 years - this is the first time an official drought has been declared. North Canterbury and southern and coastal Wairarapa have also been officially declared drought areas. Farmers, desperate to protect the breeding stock, are resorting to slaughtering old worthless animals rather than pay the price for a place on a stock truck to the freezing works. more>>

Poole promises bold approach
New Alliance Group chairman Owen Poole is promising at least one bold initiative among a number of ideas to stem the financial bleeding for lamb producers. When shareholder suppliers read about them in the mail early this week, they will need to be kept interested to stop them questioning the appointment. For the first time, the Alliance chairman is not a farmer and is not a director elected by farmers. The former successful group chief executive was appointed as a director by the board late last year and took up his seat on January 1. He can't be voted off the board by farmers if they are unhappy with his performance. These are issues farmers will be talking about. Te Anau farmer Elton Coates is a Poole supporter who describes him as an excellent choice. He pointed out the "unusual" occurrence of having an independent, appointed director as chairman. "Perhaps we need a chairman who can't be voted out next time." more>>

Lack of feed leaves farmers desperate
Fears that starving sheep have been shot on a North Canterbury farm have prompted calls for desperate farmers to be given priority for stock at freezing works. North Canterbury Federated Farmers president Chris Sundstrum said these farmers should be able to get their sheep killed "humanely" at freezing works and not have to wait behind preferential customers and other bookings. His call came as farmers between Timaru and Cook Strait waited for killing space for 270,000 old ewes. Sundstrum had heard rumours some old ewes had been shot on a drought-stricken North Canterbury property, but believed it was someone getting rid of "tailenders" which were not coping with the dry conditions. "It was for humane purposes, if it happened at all. more>>

Meat and Wool confident despite woeful result outlook
Meat and Wool New Zealand says it remains confident that better global demand for protein and the growth in developing markets will ensure better sheep and beef returns within the next two to three years. But its latest economic forecast shows relatively high prices now being earned offshore by sheep and beef farmers are being eroded by the high exchange rate for the NZ dollar. Meat and Wool economic service executive director, Rob Davison said a continuation of the high exchange rate ($US77c-US79c) was leading to third worst year for meat and wool farmers in the past 50 years. more>>

Major water woes for Canterbury
Desperate Canterbury farmers hit by a "quadruple whammy'' due to drought conditions are borrowing on their mortgages to buy groceries, industry representatives say. Federated Farmers North Canterbury branch president Chris Sundstrum said the combination of dry conditions, low stock prices, lack of facilities to process stock and high feed prices was getting worse by the day. "Everything's hit at once,'' he said. Sustained hot, dry weather in Canterbury for much of January has depleted water sources in the region and since July 2007, rainfall throughout most of the province is at a 10-year low _ driven by the dominating easterly winds of the La Nina weather pattern. more>>

It's a drought
Waikato is now officially in the grip of a drought. The regional council yesterday declared the region a drought zone. It is now officially the driest summer the Waikato has experienced since records began more than 100 years ago - and the first time ever such action has been taken. Environment Waikato is urging all communities to conserve waterand plan for weeks more of dry weather. Dairy farmers are the hardest hit, but the lack of rain is being felt by all - from horticulturists to small block owners and gardeners. Environment Waikato chairman Peter Buckley, who also owns a 68-hectare dairy farm in North Waikato said he never thought he'd see the day. "I've lived and farmed around here for 56 years and I've never seen it like this 1973/74 was pretty bad as was 1997/98 but nothing like this." Ngarua dairy farmer Sue Fish said the situation was dire. more>>

Column: Prediction is very hard, especially about the future
What do you think will happen in the future? I don't mean a few days or weeks ahead. And I don't mean such trivial pursuits as your love life or promotion prospects. I'm talking about the big picture – how we will cope in a world of scarce resources and shifting political power. You've no idea, right? Neither have I. Just planning life a week ahead is hard enough. But those industrious people at the Agriculture and Forestry Ministry have been thinking hard about this and have come up with some ideas. They also want us to think about it too and let them know our views. I suppose I can see why they feel the need to do this. The ministry, in its report Future Focus: Signposts to Success for NZ's Primary Industries, wants to alert us to potential risks and opportunities. But it is all highly speculative and its value has to be questionable.The ministry's top six "drivers of change" are: * Global warming, climate change and extreme weather. * Energy cost and supply. * Geopolitical power shifts. * Ecosystem degradation. * Demographic shifts. * Technological advances. more>>

Viable alternative to sheep
Gary Boyle has just one word to say to sheep farmers depressed about drought, rising costs and low lamb and wool prices – goats. "They've got everything going for them," the Tikokino farmer says and rattles off a long list of attributes. "They're extremely complementary with cattle; they're very easy to work; they're light and easy to shear; they're good for the environment; they cut your fertiliser and weed-spraying costs; they don't get flystrike, and, best of all, they earn more than sheep." He and wife Ann have been farming Angora goats alongside Romney sheep and Simmental cattle since 1986. The goats' silky mohair fleece is shorn twice a year and is highly prized by makers of top fashion garments and luxury furnishings. Though prices have been hit by the high Kiwi dollar in the past year, Mr Boyle has averaged more than $86 a goat in mohair earnings, compared with $13.50 a sheep from wool. He can run more goats to the hectare than sheep and estimates that his mohair income alone brings in a conservative $1200 a hectare. In addition, a goat's useful farm life is longer than a sheep's at eight to 10 years. Returns for meat have been similar in the past year, with sheep fetching an average of $63 compared with about $45 for a goat, which in the stock unit system is rated at 0.7 of a sheep. However, goat meat earnings could improve in years to come, Mr Boyle says. more>>

Fonterra capital restructuring : 10 years on ?
Fonterra’s preferred capital restructuring option only partially addresses the major problems it is attempting to correct, according to a world expert on coops, Professor Michael Cook. It also could open the door for a listed Fonterra corporate to source its milk from overseas rather than from NZ suppliers with a strategy which “looks good now [but] probably won’t look as good in 10 years from now”.
Cook, of the University of Missouri, briefed the Fonterra Shareholders’ Council in mid-December. Although he was somewhat reticent and sometimes ambiguous in his answers to the media afterwards, he appeared to feel Fonterra’s preferred option might not quite fit the needs of its farmer shareholders. Looking at how well it addressed the world risks facing Fonterra, relative to shareholders’ interface with their milk producer-owned cooperative, he said he had considered the investment factors that went into a member contributing and being rewarded for their investment. He also looked at shareholder control issues, such as collective decision-making and agency-type issues.He described Fonterra’s accessing and marketing milk from overseas as a “a really big strategic issue, not only for Fonterra but for all of NZ and the whole dairy sector”. more>>

'We will survive'
Ask new MIAG chair Keith Milne where he thinks the sheep farming industry will be in five years time and his answer is blunt. ‘Obviously it is going to be a much smaller than it is now,’ he says, reflecting on the wave of conversions to dairying, dairy support and other land uses that is sweeping Southland, and to a lesser extent, the rest of the country.‘But I’m confident it will be much more coordinated, probably with more farmer ownership and control of the industry, and instead of treating lamb as a commodity as we do in a lot of cases now, we will be marketing a premium product to the affluent consumers of the world.‘If the structures are in place to do that I am confident we can have lamb returning profitable, sustainable prices to farmers,’ he says.The need for a change in the industry is urgent, he says. ‘Hardly anybody would argue what we’ve got now isn’t working.Consolidation, particularly in marketing NZ’s lamb, is going to be the key with more ventures like the North American Lamb Company, he says. more>>

Stage set for PPCS showdown
The stage is set for another meat industry showdown between those calling for change and those supporting the status quo. Sth Canterbury farmer Herstall Ulrich has announced he will stand against PPCS board chairman Reese Hart who is seeking re-election at the company’s forthcoming annual meeting on February 29. Ulrich, who admits he was slightly hesitant to challenge Hart’s seat. The other factor in his hesitation was financial, says Ulrich, reflecting on PPCS’ $40 million loss in 2006-07. ‘Last year they cut inventory by $60m and paid off $57m of debt. In a difficult market that would suggest (and back up the claims of other operators) that PPCS has at times been a weak seller.’He acknowledges the company has had its problems, especially as supermarket buyers would have been aware of its need for cash flow and used it as a lever in negotiations with all NZ suppliers. But the predicament was of its own making, the Richmond takeover coming at too high a price, he says. It became clear the NI producers didn’t want a SI cooperative taking over their facilities. They fought a strong and hard battle and it cost PPCS a lot more than it planned.’ more>>

Ewe fair a hit with buyers
Top-quality two-tooths were snapped up at bargain prices at the Lorneville two-tooth ewe fair yesterday.It was clearly a buyers' market with prices back about $15 a head on last year because of poor lamb prices, the dairy boom and the continuing drought affecting parts of Southland. More than 10,000 mostly border leicester first cross ewes were auctioned in front of a light gallery of buyers — the yarding of ewes down by about 40%. Roger Braven, of Browns, sold a pen of 236 two-tooths for $87, the top price of the day, but he could not hide his disappointment. He sold four pens of ewes for $80-plus but said he was "pretty lucky" as prices dipped as low as $65. The average price paid was $76.50. PGG-Wrightson Southland livestock manager Andrew Martin said there were plenty of bargains to be had. Mr Martin said the light yarding of ewes, down from about 18,000 last year, was partly because farmers were killing their surplus ewe lambs rather than carrying them. more>>

New facial eczema threat is looming
This could be one of the worst years for facial eczema, with the the only missing ingredient water, Totally Vets Awapuni veterinarian Craig Tanner says.The La Nina weather pattern which NZ is experiencing brings hot, dry conditions to the west coast of the North Island through summer and autumn. As a result, the region is poised for what could be very high spore counts, Mr Tanner says. Facial eczema is a type of photosensitisation or exaggerated sunburn that can affect sheep, cattle and goats. It can also affect deer, especially fallow deer. Affected animals are uncomfortable and usually look miserable. The skin damage is secondary to liver damage, and the skin and liver damage together, contribute to ill-thrift, reduced fertility, drop in milk production and sometimes death. It happens in all but the southern two-thirds of the South Island, and FE is one of the biggest health and welfare problems affecting sheep and cattle. The disease favours moist warm summer and autumn conditions. It is caused by a toxin (sporidesmin) produced by a fungus in pasture. more>>

Mid season update- M&WNZ
“Sheep and beef farmers are under extreme pressure and this forecast must signal to Govt and other agencies that the sector cannot sustain any more costs in the current environment. If there are lower export earnings, that will have a far-reaching impact on all NZs, Mr Petersen said.The year-to-date in-market prices were very positive, but the combination of the high NZ dollar and increased operating costs was wiping out the gains.· Wool market prices from July 07 to December 07 were up 3.7%, but the exchange rate appreciated 7.9% and eroded the dollar price to a 3.9% decrease at FOB.· In-market lamb prices for this season to date are up 7.6% on the same period last year but in NZ dollars, the FOB lamb price is down 0.3% as a result of the high dollar.· Lamb skins bottomed out in February 2007 at $2.90 per skin at FOB but prices for the new season have increased 117% to $6.30 per skin in NZ dollars.· In-market beef prices for North America continue to hold near historical high levels but when converted to NZ dollars are down 10%. M&WNZ Economic Service Director, Rob Davison said a continuation of the current high exchange rate (US 77 to 79 cents) would make for the third worst year in 50 years of forecasting. This was an extreme contrast to the dairy industry. more>>

Diesel tax reform 'would aid farmers'
Excessive road user charges are hitting truck-reliant farmers in the pocket, a transport lobby group says. Road Transport Forum chief Tony Friedlander believes farming exports could be more competitive if the charges were replaced by a single diesel tax. A Lincoln University report shows trucks servicing the agricultural sector travel more than 234 million k's a year. But trucks carrying farm produce are made less competitive by road charges and laws limiting the loads carried. Some trucks carry only 80% of their potential, the forum says."The road user charges [the Govt] generates would be far in excess of the extra cost [to road maintenance]. So there would actually be a net income gain for the Crown," Mr Friedlander said. Sheep and beef farmers were the heaviest users, responsible for nearly 138 million ks a year, next come dairy farmers on 95 million and kiwifruit farmers on nearly 1.7 million. Together the three sectors accounted for more than 80% of NZ's agricultural land use, and most farmers had no alternative to road transport. more>>

Wool levy query
THE call for farmers to support one more wool company failed to excite Sth Canterbury strong wool producers Phil and Anne Munro who farm near Fairlie. Their views are typical of others in the industry. The levy-funded WIN book, which called on farmers to finance a company to shake up the strong wool industry, was more of the same old, same old, they said.Historically, farmers’ levies fund organisations like M&WNZ and other companies purporting to improve wool returns. “But really, if you look back on them all, what have they done to improve wool returns for farmers?” Phil asked.“The proposal won’t do anything for wool producers, in fact, it is about as successful as micro-chipping dogs. WIN had not recognised that world demand for wool was abysmal and the fibre was unknown to millions of potential customers. International wool buyers who visited the Munros’ farm last year were astounded at the quality of wool as it was shorn off some sheep and wondered why NZ did not promote it. Last year, the Munros hit the rural headlines when they had a large consignment of their wool contracted to an American company which used it in the felting process for the manufacture of tennis balls. more>>

Forage crops key to drought planning
With much of NZ suffering drought conditions and more dry predicted, farmers who have not yet made plans for the drying climate would be wise to do so, ruminant animal nutrition expert Prof Tom Barry says. Prof Barry heads a team working on drought-resistant plants and alternate food sources. “A lot of farmers think drought is something that will happen to somebody else,” Professor Barry says, “and of course drought does mean different things to different individuals. Using the scientific definition from Niwa in the last 31 years there were nine droughts. The East Coast is a lot drier and the projection is that the frequency and severity of drought is going to increase between now and 2080 and they are going to affect a larger area of NZ and areas that have not previously been affected. Much of his research is trialled at the University’s Riverside Farm, in the Wairarapa drought area near Masterton.“Simply, if you have a drought the farmer has got to have some plans for that,” he says, “otherwise the farmer will lose a huge amount of income. Our research is around what are the best solutions available for farmers to be able to feed their stock throughout drought.” more>>

Sheep buyers bail out
A serious shortage of ewe buyers is raising grave concerns that key genetics will be lost from the NZ sheep flock. Compounded by the drought and changing land use, the situation comes as forecasts indicate the global sheepmeat price slide appears to be trending upward. Nth Canterbury Fed Farmers Meat and Fibre chairman Dugald McLean says people are worried about what’s going to happen at the ewe fairs this year because some of the usual buyers will not be bidding. His stock agent knows three people who normally each buy 1000 ewes at the Hawarden ewe fair, but this year they will be not be bidding because of a lack of feed. ‘These buyers won’t do anything until they get some feed and even then they might end up buying calves,’ says McLean. He is also aware of another regular ewe buyer who is planting a barley crop instead. Waipara sheep farmer Jeremy Rookes says industry-wide there is a real crisis – the result of which could be a tragedy for the NZ sheep sector if all these genetics ‘get their heads cut off’. more>>

Wide window to 'wipe' weeds
It has been a bad season for California thistle, with the weed covering up to 30% of some pasture, Ravensdown western North Island agri-chemical specialist Gary Massicks told farmers at a field day on controlling the thistles."What you can see here above ground is only about 10% of the organic matter; 90% is in the roots underground." Mr Massicks said the California thistle is the only thistle that is perennial, spreading through its root system rather than seed. The preferred method of killing is a weed-wiping system that attaches to the back of a quad bike, the farmers were told. The Ashburton- made wiper was on display along with the chemical that Ravensdown believed worked best. "When the California thistles flower and seed up, that's the time to get the herbicide wiped on them. The sap is running back down to the roots and it takes the chemical with it and kills the root structure." Mr Massicks had staked out a 9 square-metre patch of the paddock and counted 139 California thistles in it. He expected more than a 90% kill on the thistles and any thistles that survived the first wipe, will grow again and should be hit with the herbicide again the following summer, he told farmers. more>>

Meat giant Affco asks for patience
Affco boss Stuart Weston pleaded for shareholder patience at the meat giant's annual meeting in Ngaruawahia this week. Affco posted a $1.2 million profit for 2007, dramatically down on its $13.1 million result the year before on operating revenue of $949.4 million.Mr Weston admitted the result was dire and blamed the high dollar, which moved 10% in a year. "That is a dramatic increase and has hurt us and farmers this year," Mr Weston said. "We killed 315,000 head of beef, [had numerous] dairy culls, 4.2 million lambs, 100,000 goats, employed 3000 staff at the peak of the season, turned over nearly $950 million - and all we have to show for it is $1.2 million." Mr Weston said that despite the poor year, the company was in good shape, having "right-sized" its capacity. It had a strong balance sheet with little debt and an established brand. Affco would concentrate on revenue growth, operational competency and farmer engagement by attracting suppliers. more>>

Tough times on the farm
Marlborough's sheep farmers are facing another tough summer, with predictions of a "meltdown" as at least 100,000 sheep wait to go to the freezing the works. A poor growing season, poor prices and limited killing space will see many farmers drop their sheep numbers and look for alternatives next season, such as dairy grazing and more beef. The Fed Farmers Marlborough branch meat and fibre chairman, Pat O'Sullivan, had predicted a "meltdown" before Christmas with no buyers, no grass and no killing space. Fatteners were not preparing grazing land, but instead growing grain, he said. This week he said the situation had worsened. PGG Wrightson livestock manager Allister Orchard said things were "pretty depressed", and his company probably had about 100,000 sheep in Marlborough waiting to be killed, but they were only getting them away at 100 or 200 at a time. The works were giving priority to the higher value lambs and older sheep had to wait. Some farmers had been waiting for two or three months for their animals to be killed, he said. more>>

Dairy downsize on Govt agenda?
The Government may downsize dairy farms and limit herd sizes in order to protect NZ's clean, green image. Farmers in Canterbury and Southland have been identified as major offenders in a 10-year stocktake of the environment that shows NZ's pure image is under threat. It was also revealed that nearly 2500 bird, plant and other species were under threat and a fifth of monitored groundwater was too contaminated to drink. SI intensive farming and rampant growth in dairying have been identified in the state of the environment report as key factors in decreasing water quality at a time when the country's other big industries are cleaning up their acts. The situation was so dire the Govt said yesterday it was considering regulations that could see farms shrink and limits on the size of dairy herds. The findings, released in a 456-page report, showed streams, rivers and lakes near urban and farming areas had deteriorated, with up to 40% of monitored spots no longer safe to swim in. More than 20% of monitored groundwater was unsafe to drink. NZers used as much as three times more fresh water per person than other developed nations and water allocation had increased 50% since 1999. more>>

Giant dairy plant for south
Fonterra will spend $212 million on a milk powder plant at Edendale to meet expected growth in supply in Southland. The expansion plans, unveiled by the cooperative yesterday, will boost the site's processing capacity from 10.6 million litres a day to more than 15 million litres. Chief executive Andrew Ferrier said the development represented a 40% increase in volume and reflected the cooperative's growth strategy in action. The expansion would make Edendale Fonterra's largest milk-processing plant in NZ and perhaps the world. Edendale ranks third at present, behind Whareroa, in south Taranaki, and Clandeboye near Timaru. The new plant is scheduled to process milk at the start of the 2009-10 season and will manufacture regular UHT and instant wholemilk powders. About 40 jobs will be created. Poor lamb returns and high milk prices have made Southland one of the fastest-growing dairy regions and about 100 new conversions are expected next season. more>>

High freight costs a kick in the guts for farmers
Farmers will be horrified that freight costs are 30% higher in NZ than in Australia, said Don Nicolson, VP of Fed Farmers. Mr Nicolson was commenting on a new report from Victoria-based consultancy, Pearson Transport Resource Centre, which has found that freight costs are higher across the board in NZ than in Australia. In fact, for the same-sized trucks, costs are one third higher in NZ. The report, released today says that Australian trucks pay much lower road taxes and can carry heavier payloads. “Freight is a significant direct and indirect cost for farmers and higher freight costs are bad news, especially for sheep and beef farmers who are really struggling with reduced incomes and increasing expenses, Mr Nicolson said. “The report clearly shows the government can and should do its bit to fix the problem. more>>

Lamb invasion hurts
Farming advocate Shelley Dew-Hopkins is frustrated."Sending sheep up here from the South Island - giving us their problems, it's unethical and immoral. It is as dry here as many people have ever seen it. We can't absorb their lambs and ewes," she said. "They should deal with their own problems in their own areas. We've had to do that with the drought in Hawkes Bay."Ms Dew-Hopkins says the stock and meat companies should not be supporting those farmers sending their sheep from the South to the North Island "when we're all so dry." "The companies are also supporting those farmers who are leaving the sheep industry and converting to dairying. Many farmers in this region don't have those options. They can only run sheep and cattle. The companies should be supporting those of us who are staying with sheep, not those leaving. It undermines this region's farmers and has pushed prices for store stock down in what was already another tough year for sheep farmers," she added. more>>

Beef shortage brings call for price increase
A UK supermarket has moved one step closer to the looming protein shortage while farmer groups around the world are all singing the same song - improve the prices before it's too late. NFU Scotland, which consists of sheep and beef farmers from across the country, has warned retailers that significant shortages of product are on the horizon unless better prices arrive soon. The concern is that farmers are set to sell their breeding stock as rising costs make businesses unsustainable. But the shortage of beef is not confined to Britain. Irish cattle are becoming more difficult to source and South American beef is facing tougher restrictions on export. With fertiliser, feed and fuel prices all escalating, NFUS has huge concerns that the production of both beef and lamb could be about to suffer a serious drop unless prices start to reflect both the tight supply situation and rising costs. Figures produced by the Scottish Government revealed drops in both breeding sheep and cattle numbers since June 2007. more>>

Sheep and beef man to fly the coop
After more than 30 years consulting in the farming industry, consultant Will Wilson is off to join a new poultry company.The company owns the genetic quarantine unit, the breeding house, its shareholders have the poultry growing sheds, it owns the processing plant. It will also keep an interest in the birds through the marketing chain. That vertical ownership, more than almost anything else, has Mr Wilson excited about his future with the MD Company, based in Pukekohe. After years working in the fragmented sheep and beef industry, vertical integration would be refreshing. Here's the sheep and beef picture - farmers are at the mercy of the processors and marketers. They do not own their processed stock through to point of sale. No vertical integration there and it has meant seriously fluctuating incomes for stock farmers - the bane of their existence. Will Wilson has been a cheerful face in farm consultancy for more than 25 years in the region. more>>

Glimmer of hope for sheepmeat
After two years of easing world sheepmeat prices, a recently released industry report suggests the tide appears to be turning. Rabobank’s latest Global Focus Report, Sheepmeat – opportunities as supply tightens, says that opportunities are arising as production in a number of key countries declines. However, report co-author and Rabobank Agribusiness analyst Hayley Moynihan cautions that in addition to tightening sheepmeat availability, the challenge of exposing more consumers to the attractions of lamb and mutton also remains.‘Global market demand is likely to outweigh the ability of NZ farmers to supply sheepmeat over the short to medium term, which will strengthen prices,’ Moynihan says. ‘However, the ability to capture longer term gains will require additional industry investment in consumer education, promotional activities and greater efficiencies throughout the supply chain.’ In addition to these hurdles, the report says that NZ sheepmeat producers are likely to continue to face challenges in the form of currency, climate and competing land use in their quest to grow markets and increase production and profitability. more>>

Farmers urged to plan for dry times
As the summer sun gets hotter and the forecast for rain weakens, DairyNZ warns dairy farmers to keep a close eye on farm management to get them through the next few months without any catastrophes. Although the countryside is looking brown, it is not too late for farmers to create a summer management action plan to help maximise profit, keep healthy cow conditions and reduce farmer anxiety. An action plan can help identify and document the key decisions required and related target dates, and put into action now. Farmers can use it to schedule early pregnancy tests that might indicate if farmers need to cull cows, using pregnancy diagnosis, production worth, mastitis and cell count to help resolve the issue. A blank action plan is available as a farm fact at www.dairynz.co.nz. The regime farmers should be milking their cows on and when they should change to ensure profitability and healthy cow conditions are maintained, is a subject that has been raised at local discussion groups conducted recently by DairyNZ consulting officers. Three milkings in two days or OAD milkings are good options to take pressure off cows when feed supply is limited. more>>

MIAG presence adds spice to PPCS election
A marketing specialist is up against an executive member of the Meat Industry Action Group in a battle of the newcomers to represent the group's southern heartland on the PPCS board of directors. Both Rob Hewett and Martin Hall advocate a more co-ordinated and co-operative export marketing approach between all meat companies to strengthen the industry's hand against the big overseas supermarkets in a bid to achieve better returns for farmers. Hewett had several years in Melbourne as Shell's retail supply chain manager for the Asia - Pacific region, and has a marketing consultancy business that still takes him to Australia for about five days a month. He describes himself as independent, though he was nominated by outgoing PPCS director Robbie Burnside.Invercargill farmer Martin Hall has been part of the MIAG executive in Southland since its start-up about a year ago. PPCS chairman Reese Hart is being challenged in his ward north of the Waitaki River by Herstall Ulrich, one of the founders of the MIAG lobby. Hart has gained respect for change at PPCS and both MIAG and Ulrich himself thought long and hard about taking him on. more>>

Hunting the 'real deal'
Choices are few for old stags at the end of their life. They may be trucked to the meat works, or, if they are exceptional, be bought by a safari park for their trophy head potential. Of the various public discussions about the deer breeding industry, it is trophy stag hunting which attracts the most negative and perhaps uninformed opinions. Among them is the belief that deer farmers should sell a few stags a year to clear debt or generate a cash bonus and that all old stags can be sold to safari parks because they have a mature antler spread. Some people believe they are hunted in small enclosures where they don't have a sporting chance and the industry was perceived as the preserve of rich Americans and, more recently, Arabs. Keeping it in perspective, stags which don't gain trophy status join thousands of others at the abattoirs. There are about 4000 deer farmers in N Z, but only 40 safari park operators referred to as outfitters. more>>

Science tackles farmyard gas
Japanese scientists believe they have found a way of neutralising methane gas from cattle and sheep, to the delight of NZ farmers. Scientists from the Obihiro University of Agriculture believe simple food additives could remove most methane from the animals' daily gas emissions by suppressing it in the stomach. The additives were likely to cost about $1.30 per animal, with no effect on milk quality. Fed Farmers president Charlie Pedersen said the "silver bullet" solution sounded too good to be true. "It's pretty rare to get something that is the perfect kind of answer, doesn't cost much, does the job and doesn't have any negative effects," he said. Methane emissions from livestock account for 49% of NZ's greenhouse gas emissions, compared with 43% from the electricity and transport sector. Pedersen believed the product - a blend of nitrates and the amino-acid cysteine - would be well-supported by farmers if it worked as it would increase the productivity of each animal. Every methane emission from a cow or sheep meant less energy went into wool and meat growth, he said. more>>

Prices plunge for cockies
Plummeting prices, and some sellers pulling out because they couldn't get the money they wanted for their sheep, underlined the doldrums the sheep and lamb industry has fallen into at Feilding's ewe fair yesterday. The sale advertised more than 30,000 sheep but only 20,000 turned up, many farmers scratching because they realised their sheep weren't wanted enough. Stock agents said yesterday's Feilding ewe fair was an average sale, with farmers selling sheep "prepared to meet the market" - which means they took whatever money was on offer. Others said, based on earlier years, it was a poor sale, reflecting a serious loss of confidence in the industry. The mood was depressed at the sale. The best of the young two-tooth ewes made $78, while others made $75. "Those ewes that sold for $75 at this sale - I've sold ewes from the same vendor, a couple of years ago, for $113," stock agent Dan Flanaghan said. Those falling prices have made farming tough. Farmers who can have shifted out of sheep, supporting the dairy industry by grazing dairy heifers, or by growing crops for dairy feed. more>>

Manure might be key to kicking cancer
Farmers can breath easy after scientists have discovered that working with manure can drastically reduce chances of developing lung cancer. New Scientist magazine reported dairy farmers were five times less likely than the general population to develop the disease.It found farmers typically breathed in dust that consisted largely of dried manure, and all the bacteria that grew in it. "As strange as it sounds, epidemiologists are starting to uncover unexpected links between our exposure to dirt and germs, and our risk of cancer later in life." New Scientist said adults who had a greater exposure to germs than usual might build up a better resistance to bugs, including cancer. "Some researchers are starting to wonder whether the higher incidence of certain cancers in affluent populations – including breast cancer, lymphoma and melanoma – might also have something to do with sanitised, infection-free living," it said. But Mike Berridge of the Malaghan Institute of Medical Research in Wellington said the report might not be very relevant to farmers here. more>>

Dairy boom leads to Synlait expansion plans
The dairy boom has seen Canterbury's Synlait almost double the amount of milk it plans to process in its first year.The $80 million milk-powder processing plant in Dunsandel is on schedule to begin production in August with more suppliers than anticipated.Synlait managing director John Penno said the factory would now process 200m litres of milk in its first year. It originally planned for 100m. "We've had a number of people wanting to supply. We will be near capacity in our first year." The new suppliers were mostly existing farmers who had stopped supplying Fonterra, but there were also some farmers who had converted to dairy. Penno said the company would not know what its exact payout was until the end of the year. It had set a minimum price, which was relative to other players in the industry, but Penno would not say what that price was. Synlait would be making payments based on lactose as well as fat and protein, and also decided to produce skim milk powder along with whole milk powder. more>>

Breeder changed the face of farming
Professor Ian Edward Coop, who developed a major NZ sheep breed, died on January 13. He was 93. The sprightly scientist developed the coopworth breed more than 50 years ago by crossing traditional romney ewes with border leicester rams. This produced the first cross border romney, which after subsequent second and third matings became known as the coopworth-- named in Prof Coop's honour. The breed features prominently in Southland flocks and a statue of a coopworth ewe and her lambs at Winton signifies the importance of the breed to the region. Gropers Bush farmer Graham Black, past president of the NZ Coopworth Society, described Professor Coop as an "unsung hero" of the sheep breeding industry. "I would rank him alongside the likes of the late Sir Edmund Hillary, for what he has achieved," he said. Prof Coop was born in Gisborne on April 3, 1914, but spent most of his life in Canterbury. Sheep farming was in his blood as his father and eight uncles were all sheep farmers, but because of the depression of the 1930s, he was destined to become a scientist. more>>

Fonterra soothes Southland payout fear
Dairy giant Fonterra has reassured farmers that payouts are unlikely to be affected by dry weather in the south. Farmers throughout Southland have expressed concern at the recent dry spell, with some forced to dry off some of their herds months earlier than usual. Others have moved stock to areas less affected by the dry. However, Fonterra Sustainable Milk Supply general manager Mark Leslie said yesterday that while dry conditions across much of the south had affected farmers, Fonterra's milk supply was still ahead of last year and dairy payouts were unlikely to be affected."At this stage there is nothing to say it's going to have any impact on payouts," he said.Mr Leslie would not comment on which plants, if any, had reduced their operations as a result of the dry conditions, nor would he say how much milk was still being supplied to the company. Although he conceded southern farmers would have concerns about the impact of the dry conditions on their own farms, Mr Leslie said that supply had been buffered by other areas of the country that had experienced a better than usual season. more>>

Rain gives farmers temporary relief
Widespread rain and cooler temperatures have given farmers temporary relief from dry conditions.The rain - up to 25mm in some parts of Canterbury - came as latest Environment Canterbury information shows hot, dry conditions throughout Canterbury and, for much of this month, depleted water resources. Since July, rainfall throughout most of Canterbury has been at a 10-year low, driven by dominating easterly winds characteristic of the La Nina weather pattern. ECan said groundwater levels were much lower now than at the same time last year, and river and stream flows were adversely affected. In mid-January, 25 of the 34 major catchments in the region were on full or partial irrigation restriction. Nearly 25mm of rain was recorded around Geraldine in South Canterbury, and 41mm at Ahuriri in the Waitaki.Up to 15mm fell at Whitecliffs, 74mm at Mount Cook and 21mm near Fairlie. Farmers said the rain would boost winter feed crops. more>>

Farmer confidence down for first time in 12 months
Results at a Glance - Rural confidence has declined for the first time in the past five surveys. - However confidence remains significantly higher than a year ago.- Biggest falls among sheep and beef farmers. - Dairy farmer confidence also moderating.- Farm income expectations vary by enterprise. The country’s farmers have experienced their first decline in confidence in 12 months, according to the latest Rabobank/Nielsen Rural Confidence Survey. The survey – taken across NZ last month – showed the number of farmers expecting the rural economy to improve had dropped to 34%, down from 49% in the previous survey (taken in October). The number expecting conditions to worsen had increased to 22%, from 10% previously. Rabobank NZ senior analyst Hayley Moynihan said “The weakening in farmer sentiment is likely to be a reflection of the combined pressures of a persistently high NZ dollar which has been dampening returns from exports, the ongoing increase in key input costs and the prospect of a long, hot summer reducing feed availability for many regions,” she said. more>>

World record as shearer fleeces 560 in 8 hrs
Eight hours, 560 ewes, one world record.The equation was simple for Southland shearer Jimmy Clark as he blitzed the eight-hour, strong-wool shearing record yesterday by 65 ewes at Wairaki Station, near Blackmount, in western Southland. The previous record for full-wool crossbred ewes of 495 was set by Marton shearer Hayden Te Huia in 1999. Clark, who already jointly held two world records, equalled Te Huia's mark at 4.07pm yesterday, adding 65 sheep in the 53-minute home stretch, urged on by a boisterous crowd of more than 200 people. Over the eight hours he averaged one sheep every 51.43 seconds. The father of two broke into a smile only on the last sheep. Clark shook hands with his support team -- stacked with world record-holders -- and hugged wife Jackie. Four referees from the World Sheep Shearing Records Society, led by Australian Mark Baldwin, assessed the sheep and the pen on Tuesday night. more>>

Seeking a bullish solution
Simplicity is central Hawke's Bay farmer Angus Mabin's watchword. He runs a simple farming system, running only bulls on the 1000 ha he and wife Esther farm near Waipukurau. The bulls are fed only grass - no supplements or crops. And he has a simple, no-nonsense explanation of it all - he's turning grass into meat. So uncomplicated and undemanding is the work moving the bulls around the farm that he had to admit, after 20 years of it, that he was getting bored."And I came to the conclusion that, yes, some off-farm stimulation would be good for me." So, last year, when NZ's biggest meat company, PPCS, asked him to accept appointment as a director, he didn't hesitate. But for a man who likes the simple life, it can have its frustrations, not the least of which is the difficulty of answering farmers' queries about why lamb prices are so low. "I've been asked to give them `something to hang on to' as we go through tough times, but it's not easy," he says. "You can talk about allowing time for the over-supply from the Australian drought to pass through the markets, then there's the same problem from drought in America, and, of course, we all hope exchange rates will fall, though I'm not holding my breath. "Basically, there's no silver bullet. more>>

Govt and Maf monitoring drought
The Government and the Ministry of Agriculture are closely monitoring the drought in parts of the country where it could cause problems, PM Helen Clark said yesterday. "That's quite a lot of NZ," she said at her post-cabinet press conference after listing all the areas which were of high and medium concern. "What MAF is saying is that if there's substantial rain in the very near future many of the current issues facing the farmers will be alleviated, but if there isn't then clearly there's potential for some rather large scale problems." "They're undertaking a feed survey in early February, they're really working on their role trying to provide as much information as they can to farmers and the Government," she said. Areas of high concern were in the upper Clutha, Lindis, McKenzie Basin, small pockets in central Otago, pockets in north Canterbury and Wairarapa. more>>

Research looks at deer fawning
Deer farmers could benefit by having bigger, young deer for slaughter, according to research done on fawning patterns by AgResearch scientists. Early fawning or calving has been identified as a key method to help increase on-farm productivity and profitability as well as making better use of spring pasture. AgResearch scientists, funded by DEEResearch, have investigated four potential drivers that offer the opportunity to advance calving date, based on previous research spanning 15 years. AgR scientist Jason Archer said they looked at nutrition and management of the hind in the third trimester and again at weaning. Scientists also investigated using the "stag effect", which is the early introduction of rutting stags to induce cycling in hinds. The three-year project also looked at the role genetics play in the gestation period of fawns. more>>

Australian wool prices buoyant
Wool prices are the highest they have been for years and they are continuing to rise. The high prices are encouraging growers to restock their flocks and are pushing up the prices of prized merino rams, The Australian Financial Review reported today. The top-priced ram sold at the Great Southern Supreme Merino (GSSM) sale in Canberra yesterday for $A16,000, ($NZ18,639) compared with last year's top Canberra sale of $A12,000 ($NZ13,979). GSSM president Charlie Merriman said buyer registration at the sale was well up on last year. "There's certainly confidence growing," Mr Merriman told the newspaper. "And there's good quality wool coming through, which is not drought-affected or dust-affected or in any sort of disarray." Woolmark market economist Paul Deane said the wool price had risen about 35% last calendar year in US dollar terms, closing before Christmas on a 17-year high. more>>

Dairy cows for hire in new scheme
As dairy cows become less affordable, Christchurch's PGG Wrightson is giving farmers a chance to lease livestock. PGG Wrightson Finance has launched a new livestock lease plan allowing farmers to access the capital tied up in their herds. Finance general manager Peter Engel said NZ had 3.92 million cows, worth about $7.83b. In the last 12 months, the value of a single dairy cow has risen from $1250 to $2000, making the capital value of an average dairy herd worth around $700,000. The option could be used by farmers wanting to convert to dairy and those wanting to buy more land, who needed to free up some capital, or sharemilkers looking to expand quickly. It could also attract equity partners who wanted to buy out other partners. The plan is based on a five-year lease, at a cost of 2.7% per cow per month. The cows go back to PGG at the end of the lease. Farmers would own the progeny, letting them build their herds. more>>

Argentines go back to beef as economy thrives
A few years ago, an economic crisis and soaring steak prices made beef a luxury for many Argentines. But beef is back on menus again, raising fears stagnant production will not be able to keep pace with demand. "You can't change the Argentine custom of eating a lot of beef," said William Hayes, president of meat export firm Argentine Beef Packers. "As soon as there's more money, beef is always the No 1 choice." The world's biggest beef eaters, the average Argentine ate nearly 69kg of it last year, the highest rate for 13 years, according to the Argentine Beef Promotion Institute (IPCVA). At the height of a devastating 2001-02 economic crisis, millions of Argentines were plunged into poverty and beef consumption sank to its lowest level since the institute's records began in 1958. According to a recent report by the US Department of Agriculture, Argentina had dropped to the world's No 4 biggest beef exporter in 2006, trailing Brazil, Australia and India, with sales abroad of 556,000 tonnes. Critics say the policies are contributing to a steady decline in production, encouraging ranchers to dedicate their Pampas lands to lucrative crops such as soybeans and sell off their herds. more>>

Southerners compete for position on PPCS board
Two southern farmers demanding change in the meat industry are vying for a position on the board of PPCS. Kapuka farmer Martin Hall, a member of the Meat Industry Action Group, and Rob Hewett, from Manuka Gorge, will contest the sole vacancy in the South Waitaki district. The position has been created by the impending retirement of Balclutha farmer Robbie Burnside, who has been a director of PPCS for the past 35 years and served as chairman from 1980 to 1997. Mr Hall, who supports MIAG's philosophy of a global meat marketing company, said there had to be greater co-operation between the meat industries in New Zealand and overseas."Unless we increase profitability for lamb producers we will continue to lose good land to dairy and cropping," he said.Mr Hall said he was encouraged to throw his hat in the ring after fellow MIAG members Jason Miller and Mark Crawford's successful bid for the Alliance directorship in December. Another MIAG member, Herstall Ulrich, of Pleasant Point, was likely to provide strong competition for the North Waitaki seat presently held by PPCS chairman Reese Hart, who was retiring by rotation but seeking re-election. more>>

Wool plan fails farmers
Must do better’ is a leading business consultant‘s verdict on the Wool Industry Network’s (WIN) latest strategy document Model For Change.‘I have to say I am underwhelmed,’ says John Shirtcliffe, Insights Consultancy, about the 27-page brochure that was posted to 15,500 producers and 300 domestic and overseas wool businesses just before Christmas.‘There is nothing in there that has not been tried before and it fails to acknowledge some of the fundamentals involved.’WIN has defended the publication but Shirtcliffe says it comes across as a ‘supply-side push’ and would have been better not published.Its stated aims are laudable but unachievable in the absence of truly innovative strategy and specific tactics, he says. And those are not in this document.’ The strong wool industry’s problem is that it is packed with businesses in the early and middle stages of the processing chain that lack the power to dictate prices to customers but have the whiphand with suppliers, says Shirtcliffe. The result is supplier prices are forced ever downwards. more>>

Rural areas in push for broadband
Rural people in the Nelson region say they are being left behind in the information revolution because telecommunication companies cannot supply them with reliable and affordable broadband Internet. The Nelson Regional Economic Development Agency says good access to broadband is "fundamental" to the development of the region's rural economy. However, lines companies and Nelson's largest wireless Internet provider, thepacific.net, say that in some areas, there are not enough people for the service to be viable. Figures from Telecom show that as at November last year, 97% of phone lines in Nelson city had access to broadband, but in Tasman district only 86% had access. The national average is 93%. Broadband Internet - which the Organisation for Economic Cooperation and Development classes as being at least 50 times as fast as a standard NZ dial-up connection - can also be provided on wireless, satellite and mobile networks. more>>

Dairy industry staff crisis
More than 3000 workers are needed to fill the gap created by the rapid expansion in the dairy industry, according to farmers and recruiters. Spurred by soaring returns for milk that will see NZ's 11,600 dairy farmers earn an average of $785,000 each this year, the industry is growing so quickly employment recruiters cannot keep up. Christchurch recruitment agency IPS, which brought 50 workers out from the Philippines to NZ dairy farms in the past year, is going back to recruit 200 more. "The cry-out from farmers is just dramatic," IPS director Hayden Creed said yesterday. "They're calling us all the time for milkers and general farm-hands." Fed Farmers dairy chair Frank Brenmuhl said an extra 200 workers would be welcome but would be a drop in the ocean. He agreed with Mr Creed that up to 1000 farm workers were needed in each island and said that other parts of the industry, such as stock carriers, needed as many, if not more.Farms were expanding and as many as 100 new dairy units would be created this year. "They'll need an average of four staff each - that's another 400 to be found all of a sudden. They'll come from either new people moving into dairying or from other farms - which means they'll be short." more>>

Hay price soars as demand rises
The price of hay has skyrocketed over the past few weeks as a huge demand creates a shortage through many parts of the country. One contractor is warning farmers to act now before the full extent of the shortage hits. "If people don't purchase their hay supply now, in the middle of the winter they will be down. There are not many supplies left for winter sales," Paul Kalin, of Paul Kalin Contracting Ltd, in Manaia said. "I have been contracting for 35 years. This is one of the years of shortest supply.In Hamilton, a McFarlane Contracting spokeswoman says the phones have been running red hot from people looking for hay. "People are looking for anything they can find to feed their cows. They are going far and wide to get it. We have heard prices have hit $130 up here. We're charging $90 to $100 at the moment." There are also reports of some farmers feeding out already in the Waikato because of a lack of grass. more>>

Crisis near as finishers call it a day
Signs are appearing of a crisis of confidence in the sheep industry that could have far-reaching effects. After last year's NI East Coast drought, M&WNZ predicted a 1.5 million shortfall in lambs killed for export this year – a $120 million cut in the country's income. But that forecast is now looking conservative. Many more than expected Hawke's Bay- Wairarapa hill country farmers are choosing not to replace the ewes and hoggets they were forced by the drought to kill. The main reason is the low prices meat companies are offering for their lambs, for the third successive year. Prices are rising, but not by enough.The best gauge of this is the saleyard. So far, across the lower North Island the ewes that have been offered in the sales have been surprisingly slow to move. It is a reasonable assumption that fewer ewes will be mated this autumn and fewer lambs born in the spring. This is also a lack of interest in finishing lambs over the summer. Instead, some finishers are converting to dairying but most are growing crops, such as maize for dairy farmers, barley for brewing or wheat for milling. They are still taking some lambs, but not nearly as many as in past years. more>>

Farm price inflation rampant in December
The benefits of the dairy boom are going straight into a sharp rise in land prices and farm sales volumes, latest figures from the Real Estate Institute of New Zealand (REINZ) show. There are no signs yet that a fall in dairy commodity prices late in 2007 is flowing into land prices and sales volumes, adding more fuel to the inflation fire the Reserve Bank is trying to put out with high interest rates.REINZ reports that the median farm sale price in Dec $1.65 million, up 10% from Nov and up 43% from Dec 2006. It can be dangerous to take too much notice of the median farm price movement on a monthly basis because the sales volumes numbers are relatively low and the median can be buffeted by big one-off sales of properties or types of properrties, such as expensive dairy farms. But it's clear from those volume numbers that the dairy sector and adjacent areas such run-off grazing are experienced a surge in activity and pricing. more>>

Farm worker remuneration report released
Agriculture offers farm employees a competitive rate in comparison to other sectors and a clear opportunity for career development, a report released this week by Fed Farmers and Rabobank revealed. The Federations Remuneration Report 2008 details remuneration rates of farm employees in the dairy, sheep, beef and arable sectors. It includes hourly rates for casual and permanent employees, remuneration trends since 2002, gross salary excluding bonuses, and total remuneration – including additional benefits such as subsidised accommodation, food or meat, power, telephone, private transport and production/performance bonuses.“Attracting and retaining quality employees is becoming increasingly challenging for all employers. This report shows farmers have lifted their game in recent years and are offering employees a competitive rate in comparison to other industries,” said president Charlie Pedersen. “It is particularly important for dairy employers, that remuneration rates are based on responsibility rather than being fuelled by a high payout that enables, rather than requires employers to pay more in the short-term and tempts them to ‘buy’ their way out of the labour availability challenge,” Mr Pedersen said. more>>

Moth working well against ragwort on West Coast
A plume moth introduced to NZ to help the fight against the noxious weed ragwort is showing early positive results on West Coast. The moth is one of two agents brought in after the ragwort flea beetle, successful elsewhere in NZ, had previously made little impact in the Coast's wet conditions. NZ Landcare Trust's West Coast Ragwort Project Coordinator Caryl Coates says plume moths are emerging from over-wintering just in time for ragwort, which in some areas is about to flower. Caryl has monitored seven Plume Moth release sites so far this season and has found the agent at each one -a good sign for their persistence in Coast conditions. However, the crown boring moth, also brought in to fight ragwort, has not wintered well in its cages, and has not been found in field surveys. Caryl is releasing plume moths from Karamea to Haast and monitoring past release sites. The Ragwort Control Trust Committee has set a $400 fee for moth releases. more>>

Saving cash by scoring sheep
Geoffrey Hornblow edges his way along the race from sheep to sheep, pausing to place his hand on each woolly back.As he moves on, he calls out a number to his wife, Dale, who records it on a clipboard. On this day, the number is almost always the same. It's a three, occasionally a four. He's condition-scoring his flock. The numbers are part of a scale from one to five that's a way of rating the health of a sheep by the fat covering the spine and ribs. It's an integral part of a system called Sheep For Profit, advocated by Te Awamutu-based farming consultants AgriNetworks. It kept the Hornblows from joining many other eastern farmers in making a heavy loss in the worst drought in living memory last year. Their sheep maintained their health and the lambs survived, and even thrived. The couple still made a loss, a small one, but mainly because of low lamb prices. He says the Sheep For Profit system has given him a set of protocols to keep to, and provided a good sounding board and source of advice focused on production. more>>

Milk debate on review list
The Swedish scientist appointed to review NZ's handling of food-safety matters is well aware of the controversy surrounding A1 and A2 milk. The Govt last month asked former Swedish National Food Administration deputy director-general Dr Stuart Slorach to review the decision-making processes used by the NZ Food Safety Authority. The review has eight terms of reference, approved by Food Safety Minister Lianne Dalziel , and will focus on the way the NZFSA deals with the A1-A2 milk debate and other high-profile issues, including the control of campylobacter in poultry, aspartame as a food additive, imported foods, and raw milk in roquefort cheese. Speaking from Stockholm, Slorach said he planned to have his review completed by the end of March and hoped to compare food-safety management processes in Ireland and Denmark with those used in NZ. more>>>

Sir John Anderson To Lead A Meat Industry Taskforce
M&WNZ has announced the establishment of a meat industry taskforce, chaired by Sir John Anderson, to look at strategies for advancing NZ’s red meat industry. Sir John is a hugely respected business leader who was recently appointed chairman of the NZ Venture Investment Fund and the Capital and Coast District Health Board. He is also chairman of TVNZ, NZ Cricket and is a director of the Commonwealth Bank of Australia. The M&WNZ Board has been examining ways to address declining industry profitability. Chairman, Mike Petersen, said the board was delighted Sir John had agreed to lead this taskforce of industry and independent people. The terms of reference and membership of the taskforce were still to be decided, but it would have both a domestic industry and market focus. “Domestically we need to be looking at the strategic direction of the industry – its structure and supply issues plus industry governance matters. It is intended the taskforce will have its first meeting in February. more>>>

OCC seen as Dairy Trust incentive
The success of Open Country Cheese could be the catalyst for farmers to join Dairy Trust. Last week several prospective Dairy Trust suppliers from Southland, headed north to Waikato to visit the Waharoa-based OCC. While OCC and Dairy Trust's Awarua-based plant are miles apart on a geographic scale, they have adopted the same principles. No share capital was required to supply either company and incentives were paid for volume supply, supplying milk on the shoulders of the season and for low somatic cell counts. Dairy Trust has a committed supply of 125 million litres of milk this season to supply its Awarua-based milk powder factory, but requires a minimum of 175 million litres. The incentives offered to OCC suppliers had also encouraged them to aim higher and to manipulate their calving dates to achieve the off-peak premiums. Matamata farmers Boyd and Robyn Houghton, who also supply OCC and milk 2000 cows on several properties, had put their Fonterra shares into land purchases. more>>>

Outlook positive for 2008
What is ahead this year for the farming community? Westpac economist Doug Steel takes a look. Let's look at the factors that are likely to shape economic conditions in NZ and for farmers this year and what NZ farmers should keep an eye on to help prepare themselves for the best possible ride.For the farmer, the key question is whether slower growth in the US will severely dent growth in emerging market economies such as China, India, Brazil and Russia. Dairy product prices on international markets are at eye- watering levels, but supply remains tight, and there are signs that production elsewhere, including in the US, is respond- ing to the prices of the past year. This will ultimately put downward pressure on prices, and combined with a strong NZ dollar, next season's payout (2008-09) is unlikely to match this season's stellar result.The medium-term picture for beef is distinctly positive, since supplies will tighten after the current herd liquidations in Australia and the US.The lack of product of lamb is expected to put upward pressure on price. more>>>

Deer breeders lock out genetics group
Tension between traditional deer stud owners and Deer Improvement Ltd (DIL) boiled over last week with several studs issuing trespass notices to the industry newcomer. DIL believes the trespass notices, in relation to annual stud sales, aim to stifle competition in respect to artificial insemination (AI) services offered by DIL to commercial farmers. The course of action taken by the deer studs has prompted a warning of caution by industry leaders who say restricting the flow of genetics will stifle the growth and progress of the NZ deer industry. Productivity gains in the industry over the past 30 years have largely been the result of genetic improvements and it was not good timing for the industry to stifle those gains, says NZDFA chair Bill Taylor. "The genetic improvement and productivity gains made by the NZ deer industry over the past 30 years have come about largely through dedication, vision and sheer hard work by all those involved in the stud sector. I find it disappointing that a small number of studs have taken such steps, which I assume they believe will help protect their businesses," Taylor said. more>>>

Sheep have the right stuff
Today's wool is nothing like granddad's old cardigan or those itchy knit caps from the '80s. These days it is light, soft and more functional, even in wet weather. It lasts forever and doesn't retain that "you've been working out" odor. It can be thrown in the washing machine just like cotton. Today's wool is called Merino, which is named after the sheep that produce it. The best Merino is grown on certified farms in NZ. The certification comes from a newly launched NZ program called Zque, which sets rigid industry quality standards including rules about how the sheep are raised, how the dogs are maintained and how the wool is transported. Only wool producers who meet those standards can be Zque-certified. This breakthrough has helped such performance clothing outfitters as SmartWool, Ibex and Ice Breaker to offer a product they can back. more>>>

Weather 'not good for milk boom'
Scientists are warning climate patterns pose a threat to NZ's much hyped dairy boom with areas counting on producing rivers of milk now facing the prospect of severe drought. Major established dairy areas and recent dairy conversion areas are expected to experience much lower than average rainfall this year. Niwa National Climate Centre principal scientist Jim Salinger sounded the alarm as data showed the world moving into a severe or "clean" La Nina pattern. Yesterday, Westpac Bank predicted agricultural productivity in NZ would grow on the strength of La Nina. "I am not an economist but I would not be as rosy as (Westpac)," Dr Salinger said. "I am just looking at the climate patterns we are likely to see. Our agriculture is pastoral and this is very much rain fed. "I would be having a cautious outlook at this stage, given that we are in a very clean La Nina weather pattern and it is giving very clear signals right across the Pacific." He said the intense La Nina conditions should cause alarm with dry conditions in the east of the North Island and throughout the whole South Island."I would be a bit more cautious on agricultural prospects, given how dry a lot of the South Island is," he said. more>>>

The weaning decision for sheep
Weaning strategies should be evaluated each year using knowledge of ewe condition, feed supply, pre-weaning lamb growth rates and likely growth rate after weaning, weaning checks, lamb price schedules and animal health issues. It is also important to understand the implications of these strategies on whole farm pasture supply. The objective of this report is to provide information on the basic biology of the ewe and lamb over weaning with key references. This may offer farmers some different perspectives on the weaning decisions. In addition, some simulations of various weaning options are presented. more>>>

NZ issue a lamb challenge
Meat and Livestock Australia is defending its new marketing campaign, which is causing a flap across the Tasman. The campaign, encouraging Australians to eat more lamb, takes aim at NZ Prime Minister Helen Clark, saying she does a "passable impression of a bloke". While there haven't been any official complaints, Rod Slater from the NZ Beef and Lamb Marketing Bureau has issued a challenge to Australian producers. "In March, we are holding the Glammies, the Golden Lamb Awards, which is a competition to find out the tastiest and tenderest lamb in the country," he says. "Last year, it attracted well over 100 entries and attracted a lot of interest from not only farmers but from NZ consumers. "I'm challenging the Australian meat industry to enter some lamb in our Golden Lamb Awards Competition in March and we'll soon find out, who does produce the best lamb". more>>>

10 million milkshakes railed each day
Ever day of NZ’s milk season, enough milk to make more than 10 million milkshakes takes a train trip from Palmerston North to Fonterra’s Whareroa processing plant near Hawera. Not that it’s used for milkshakes. It satisfies the appetite for raw material of one of the world’s largest dairy processing plants supplying a global market with a range of processed and semi-processed dairy products from milk powder to butter and cheeses.The task of transporting the milk by rail belongs to rail company, Toll . It’s a big operation. Last season, Toll transported more than 560 million litres, but depending on the season, it has been as high as 700m litres. Two locomotives pulling 16 milk wagons weighing a total of nearly 1200 tonnes, each filled with 50,000 litres of milk, make the return trip four times a day. Not only is the rail option considerably less investment-intensive than road — a new 25,000 litre road milk truck is around $500,000 — rail’s per litre carbon footprint is smaller. The train option makes good sense. more>>>

Farmers can expect better summer: economists
After predictions of a drought, 2008 is shaping up to be a much better farming season than first thought, Westpac economists said today. Weather forecasts suggest that NZ is on the cusp of strong La Nina conditions, normally linked to higher agricultural production, the bank said. "This might seem like a pipe dream when the news has been of several soil-moisture deficits, particularly in Hawke's Bay, Marlborough and parts of Canterbury and Otago, weak grass silage production. . .and lamb numbers down 1.7 per cent." But the Southern Oscillation Index was swinging towards strong La Nina conditions, which would bring more north-easterly winds and rain to the north-east of the North Island, and reduced rainfall in the south and south-west of the South Island. Westpac expects world dairy prices to drift off their peak levels as more supply hits the market, but higher meat prices as drought-related destocking turns to restocking. "The agriculture sector is set, on average to have a very good 2008." more>>>

Dairy prices down for first time in 18 months
For the first time in 18 months, NZ's dairy prices have lost their upward momentum. The ANZ world commodity price index was unchanged in December, although it was up 30% for the year. Dairy prices were down 1.8% for the month, as other dairy producing countries look to cash in on historically high prices. It was the first monthly decline in the sub-group since August 2006. ANZ economist Steve Edwards said last year's surge in dairy prices was due to a drought in Australia, several European countries phasing out export subsidies and a swing towards bio-fuels. "Is the retracement in dairy prices the start of a correction? Clearly the supply-demand dynamics for dairy look better than historically - indicating the uplift contains a structural element," Edwards said. While it was too early to make comparisons, an analysis of price trends over 40 years showed that on average boom in food prices was followed by a 50% drop from the peak. A 50% cut in the August/ September dairy commodity peaks still left dairy prices at an historically high level, Edwards noted. more>>>

Dairy's boom, oil prices give wool its big chance
It's not the best time to urge sheep farmers to embrace a radical new way of marketing strongwool, the coarse fibre used in carpets and textiles. Hit by drought, low lamb prices and rising fuel and fertiliser costs, it's no wonder they're feeling pretty pessimistic about farming. Now, a new plan has been proposed, this time from the Wool Industry Network. It was set up almost two years ago with $2 million in government funding and $3.1 million from M&WNZ. It's proposed that farmers set up a cooperative, Wool Grower Holdings, to take all their wool and market it through a subsidiary, called The New Wool Company, for now. The timing is fairly good for several reasons. One is the splendid example of how a cooperative can really work, set by their dairying neighbours. Another is the high price of oil, bound to affect pricing of wool's synthetic rivals. And another is the feeling that after many missed opportunities this may be their last chance to save wool from sinking into obscurity. more>>>

Deer focus newsletter
Includes a summary of the past winter and spring on the Otago and Southland Focus farms. Also articles on AgResearch's work on wintering deer on brassicas and the Otago regional councils monitoring of water quality and farm practices that influence this. David Stevens also from AgResearch explains the science behind the challenge to increase the Southland farms stocking rate from 11.1 su to 14.2su. His article is headed, " Changing from short grass farming to long grass farming" more>>>

'Game on' in the stockfeed market
Competition in the NZ stockfeed business could be about to heat up as a key importer may look to team up with an as-yet-unidentified international trader. Hunter Grain Limited has announced the resignation of its managing director Richard Price, who is leaving “to pursue other interests”, according to chairman David Dossor. Dossor said in a statement that Price “played an important role in establishing and growing the business during his time with the company”. However, Rural News understands Price – a key driver in the growth of imported grain consumption by the dairy industry – has been approached by a major commodity trader and that he may remain in the market. However, with dairy payout forecasts strong for the next three years or more, the future of imported feeds like palm kernel and tapioca seems assured. Rural News understands that Price, who grew up on a Matamata dairy farm, has a combination of experience and solid industry relationships that have grabbed the attention of an international suitor. more>>>

40 years in the middle
Athol Murray has seen a few changes in his 40 years in the meat industry. He says the link between the farmers and meat processor has been a big the part of the job and one he has thoroughly enjoyed. Athol Murray was, until yesterday, Affco's livestock manager. His working life has been working with farmers and assessing stock for slaughter since 1965 and he has just retired. "At that time, the beef schedule was [PndStlg]7/5s per 100lbs [about 32c/kg]. Lambs were between 39 shillings and 2 guineas (42 shillings)." Things have changed. Getting the wool off sheep is often done only for humane reasons and little income.It is an industry that has to be responsive to the grass growth curve, which is what NZ farming is all about, Mr Murray says. "When the grass stops growing, there is never enough capacity." As well as farmers having fewer sheep these days, land-use is also changing. Dairying has taken over from some cropping properties as well as sheep and beef farms. Grazing dairy heifers is a viable alternative for farmers who may once have run some breeding cows and ewes. Flexible land use is a feature of NZ farming and the meat industry. That's the way it has always been and it is a strength of NZ farming, Mr Murray says. But there is a need for more science and technology in the meat industry, he believes. more>>>

Facial eczema warning
Farmers have been cautioned to prepare for an increase in facial eczema during the looming spell of dry weather. Meteorological services are predicting a La Nina season for the summer and autumn and records show that facial eczema is worse in La Nina years. Of the five La Nina years that occurred between 1975 and 1999 (the last major La Nina year), four resulted in higher than normal facial eczema occurrences. Facial eczema expert, Dr Neale Towers, says preventing animals getting facial eczema depends on either preventing the ingestion of toxic pastures (pastures with high spore counts) or on regularly dosing the animals with zinc oxide.Once ingested, sporidesmin causes extensive damage to the bile ducts in the animal’s liver, making damaged duct walls swell and die. Agri-feeds manufacture and distribute the Time Capsule, a bolus that releases an even dose of zinc oxide over a four week period for dairy and beef cows and six weeks for sheep. Over the last 10 years it has helped many farmers minimise or eliminate the devastating effects of facial eczema. more>>>

Scrapie-free Kiwi sheep hold breeding potential
NZ is well placed to breed sheep resistant to scrapie, according to Lincoln University Associate Professor Jon Hickford. Dr Hickford and his team tested a number of common sheep breeds including the Coopworth, Romney and Corriedale and found that they already had high levels of the resistant ARR genotype. The British rate this genotype as the most resistant to scrapie under their National Scrapie Plan. Dr Hickford's team found that NZ sheep populations still carried the resistant genotype despite being scrapie free. "Being scrapie free gives us a head start on introducing these genetics into our sheep should scrapie ever occur here," he said. Also it gave NZ the benefit of having access to overseas markets for its meat and sheep genetics, plus better animal health and welfare, given the neurodegenerative effects of the disease. more>>>

Collaboration key to success for sheep genome project
In less than five months AgResearch has completed its share of an international sheep genome mapping project that will help farmers identify genes associated with important production, quality and disease traits in sheep. AgR is one of 19 organisations from Australia, NZ, the US, UK, France and Kenya that make up the International Sheep Genomics Consortium (ISGC). The purpose of the Consortium is to develop public genomic resources that will help researchers find genes associated with such traits. Over the last few months a team of AgR scientists based at the organisation’s Invermay campus, near Dunedin, has scanned the sheep genome one and a half times. The data will be used to identify single nucleotide polymorphisms (SNPs), which are small genetic differences and indicative of the traits that can separate a productive or disease resistant animal from the rest of the flock. “It’s a step on the way to creating tools that will allow sheep breeders to select animals based on DNA markers that can indicate useful traits from birth. Historically farmers have had to record the pedigree and production traits of livestock to ascertain their value. " says AgR Senior Scientist John McEwan. more>>>

MyFarm aims to grab bigger slice
Rural investment syndicate MyFarm is looking at adding to its $34 million slice of Waikato farmland.Investors have put $60 million into MyFarm dairy syndicates in the past six months, buying 17 dairy farms including a 1135ha Lichfield property for $34 million it plans to operate as three separate dairy farms. Director Andrew Watters said the group was looking at a large-scale sheep and beef farm in the South Waikato which could be used for grazing dairy cattle. Any sale would not go ahead until autumn, but if it was bought it would support the group's other Waikato farms, which will be milking 3000 cows next season. "As the industry grows it's getting harder to find the land and infrastructure to service these, so there is a flow on into other sectors," Mr Watters said. Two of the three farms Drummond and Waipa blocks were converted from forestry to dairying last year. The Drummond farm, is on the northern end of the property and from next season will milk 1200 cows. Last season it produced 450,000kg ms. The Waipa block produced 280,000kg and is owned by 16 investors. The farms will be run by MyFarm parent company AgInvest. more>>>

Cash cow from Young Farmers
Financial gains from the popular Young Farmer of the Year contest are set to boost Palmerston North's coffers - about $1million in spinoffs from hosting the grand final in July, 2009.Regional contest manager Gary Massicks said friends and family travelled to support finalists, but agribusiness company people and YFClubs also attended. "Last year at the final Fonterra's chairman and chief executive came, as well as the top people from companies such as Ravensdown and the major banks. Mr Massicks said the last economic impact study, done three years ago, worked out the final contest was worth about $800,000 to the centre holding it and since then it has expanded quite a bit. That's how organisers come up with the $1 million figure, he said. "The contest is sort of in two parts. The grand finalists compete for a week before the the big final night. "There are bus tours run on the side. It's a big event for YFC and all the ancillary rural businesses." more>>>

Milking the Middle East
Many Arab women spend their lives veiled in black voluminous robes that shut out the sun's rays and deprive them of a major source of vitamin D, which is vital for bone health. Exercise, which also helps to build robust bones, is considered unfeminine. These factors, combined with frequent child-bearing, more sedentary lifestyles and a changing diet, have created an epidemic of osteoporosis, or "porous bones". According to the International Osteoporosis Foundation, one in three women over the age of 50 in the United Arab Emirates has osteoporosis. It is a public health calamity - but also a giant marketing opportunity, says Pradeep Pant, Fonterra's managing director for Asia and the Middle East. The global dairy giant is pouring millions of dollars into promoting its fortified calcium product range, Anlene, in the region.The fresh, low-fat milk drink and yoghurt claim to promote "optimal bone nutrition when consumed as part of a healthy diet". "Given the high incidence of osteoporosis in the Middle East and the fact the government [in the UAE] has made it a top health priority, we think Anlene has a huge need to fill," Mr Pant says. more>>>

Freezing works in jeopardy
Up to five NZ meat processing plants may close in the next few years, with the loss of thousands of jobs, as the industry is forced into another round of restructuring due to falling sheep and beef numbers. Sources believe up to three sheep processing plants may have to close in the South Island and two or more beef and sheep plants in the North Island. The chairmen of the country’s two largest meat co-operatives, PPCS and Alliance Group, agreed there would be consolidation as farmers reacted to low meat returns by changing land use, but they would not be drawn on which plants they thought would be closed. However, they said it was an industry issue and it should not be left to co-operatives to carry the burden.‘‘Consolidation will happen eventually. There will be rationalisation and all companies have to be involved,’’ PPCS chairman Reese Hart said, when approached for comment.He said the south of the South Island was ‘‘a big worry’’ because of changing land use to dairying, but added nothing would happen for a couple of seasons as the stock balance gradually shifted from sheep to dairy cows. more>>>

Shearers wary of dairy juggernaut
The number of sheep shorn in the south is falling up to 10% a year in the wake of a dairy juggernaut leading farmers to turn their backs on wool, some shearing contractors say.Shearing contractors throughout Southland and Central Otago said because of the good weather work was on schedule as the shearing season geared up but that went hand-in-hand with a drop in the numbers of sheep shorn. The losses were not just down to the number of farms being converted to dairying but also the fact non-dairy farmers were offering their land to the dairy industry for grazing and the growing of feed crops. "I think a lot of it has to do with prices. A lot of them (farmers) are not shearing twice and there is a decline in sheep." Alexandra contractor Peter Lyon said in Central Otago, where the wool industry is mainly merino based, rather than cross-bred sheep, any decline in sheep shear numbers was more a result of economic factors rather than dairying. While returns for fine wool such as merino were stronger, contractors still faced the problem of increasing costs in harvesting a product that was not delivering in terms of price. more>>>

the next 100 archived stories are here >>>