Agriculture

Fonterra agrees sale of China JV farms

Fonterra has agreed the sale of its two joint venture farms in China, with the sale expected to be completed on 30 June. The farms in Shandong province will be sold to Singapore-based AustAsia Investment Holdings for USD 115.5 million. Fonterra, which owns the farms with a joint venture partner, has a 51% stake in the business and will receive NZD 88 million* in total asset sale proceeds, which includes cash on completion. The sale of the JV farms is unconditional and requires no further regulatory approvals. Fonterra CEO Miles Hurrell says the sale is another important milestone for the Co-operative and aligns to its strategy of prioritising New Zealand milk. “The sale of the JV farms allows us to focus even more on our farmer owners’ milk and follows the sale of our two wholly owned China farming hubs earlier this year. “Greater China continues to be one of our most important strategic markets. We remain committed to our China business, bringing the goodness of New Zealand milk to Chinese customers in innovative ways and partnering with local Chinese companies to do so. We are well placed to continue to grow our business in Greater China,” says Mr Hurrell. Fonterra sold its two wholly owned China farming hubs in Shanxi and Hebei provinces to Inner Mongolia Youran Dairy in April for NZD 552 million. * Based on an USD to NZD conversion rate of 0.714 ENDS

From the ‘Should Have Seen it Coming File’…

Australia has just competed a new trade deal with the UK including agricultural products, which includes a removal of all tariffs. The UK will export to Australia cars, Scotch whisky, biscuits and ceramics. The deal makes up for EU imports lost (due to Brexit) being made up by Australia. Its a decent win for Australia and was settled after keeping the British meat producer in mind. It is also a deal keeping in mind the UK’s aim of joining a wider Asia-Pacific free trade agreement. This on top of the pressure Australia has been under by standing up to China (for the world!), losing billions of dollars of product exports – including wine – being blocked by that country. So well done Australia! Then – almost predictably – the NZ prime minister at Mystery Creek Fieldays, Hamilton had a say about all this. She said ( words to the effect) that her government was taking negotiations with the UK slower, so that we get a proper deal? Is she saying Australia hurried theirs by coming up with an Agreement with zero tariffs? These are the words of a person who worked in a fish and chip shop in Morrinsville. These are the words of someone who continues to confirm the inferiority complex that NZ has with Australia. Did she want to be invited to the G7? Damien O’Connor has just arrived in London to talk trade deals with his UK couterparts – let’s hope they come up with something similar.

DairyNZ: climate plan must set farmers up to succeed

As the Independent Climate Change Commission deliver their final advice, DairyNZ are calling on the Government to deliver not only a pragmatic emissions reduction plan – but the funding and support to achieve it too. “Dairy farmers are committed to playing their part alongside the rest of the economy and doing our fair share when it comes to reducing emissions – but the Government needs to be setting our farmers up to succeed,” said DairyNZ chief executive, Dr Tim Mackle. “In practice, that means having clear and achievable targets, pragmatic timeframes, and an appropriate level of Government investment in tools and technologies that will help us reduce our emissions. “Kiwi dairy farmers are already the most emission efficient producers of milk in the world, but we know that both our communities and our consumers expect us to continue to improve. “Unfortunately, we have already pulled many of the levers we have to reduce our footprint. Although we are always exploring new solutions through R&D, these take both time and money.” Dr Mackle said while Budget 2021 may have delivered significant investment that will help urban New Zealanders reduce their CO2 emissions, there was nowhere near the same level of support for rural communities. “The Commission were very clear in their draft advice that we will need to see a real focus on both R&D and digital connectivity for rural communities if we want to halt our contribution to further warming. “Investment in R&D is going to be critical if New Zealand is to meet our highly ambitious methane reduction targets without severe impacts for rural communities and the New Zealand economy. “The sector wants to work in partnership with the Government to deliver a clear long-term science strategy that will focus our joint efforts and ensure funding is directed to […]

World Milk Day recognises Kiwi dairy farmers

As global World Milk Day (June 1) gets underway, New Zealand dairy farmers continue to play a key role in a post-Covid economy, as a sustainable producer of milk for the world. DairyNZ chief executive Dr Tim Mackle says our communities and regional economies see real benefits from dairy, particularly with current increased global demand for dairy product. “We should be really proud of our dairy farmers for sustaining our country’s success through more environmentally efficient products, while supporting our communities and the New Zealand economy,” said Dr Mackle. “Our analysis has shown this past season’s increase in milk price delivered an additional $2.1 billion within our communities alone. The total increase in revenue for the country therefore sits at around $3.28 billion. “Our findings have shown these flow-on effects have meant the total economic contribution from dairy was around $42 billion this season.” Dr Mackle said for every $1 increase in milk price, around another $1.80 flows into other sectors within the economy. Flow-on spending pays wages and injects cash into other sectors, including farm purchases, pharmaceutical products, construction, electricity and voluntary household expenditure. “Dairy farmers achieve all this while being the most emissions efficient producers globally,” said Dr Mackle. “We are committed to remaining a sustainable producer of dairy product and, to do that, we have a wide range of work underway to enhance the environment, including reducing emissions and improving water quality, while maintaining profitability.” Farmers nationwide have fenced waterways, 100 percent of stock crossing points have bridges and culverts, while thousands of farmers are carrying out extensive planting alongside waterways. In 2019 the dairy sector accounted for more than 5 percent of GDP in seven regions – and more than 10 percent in four of those. In dollar terms, this equates to dairy contributing more than […]

Native plants may be weapon against soil contamination

New Zealand’s native plants may help to reduce bacterial contamination caused by dairy effluent, a new study suggests. Researchers from the Bio-Protection Research Centre, ESR, and the University of Canterbury have shown northern rātā (Metrosideros robusta) and swamp mānuka (Leptospermum scoparium) can reduce the amount of Escherichia coli (E. coli) in soil by 90%, compared with ryegrass (Lolium perenne), and in less than one-third of the time. They worked in partnership with Ngaa Muka Development Trust and Matahuru Marae in Waikato. The research, published in Applied Soil Ecology, aimed to investigate the antimicrobial properties of New Zealand native plant extracts and test if they were effective in soil. First they tested leaf extracts of 12 plants, chosen because they were either medicinal plants, poisonous, or had a strong scent. These included harakeke (Phormium tenax), golden ake ake (Olearia paniculata), mānuka (Leptospermum scoparium), kawakawa (Piper excelsum), koromiko (Veronica stricta), ngaio (Myporum laetum), golden Spaniard (Aciphylla aurea), Spaniard (Aciphylla sublabellata), and horopito (Pseudowintera colorata), as well as swamp mānuka and northern rātā. Swamp mānuka, northern rātā, and horopito showed antimicrobial properties, and so they were tested to see if they reduced bacterial contamination in soil. The scientists grew seedlings in pots, and, once the seedlings were large enough, added equal amounts of dairy shed effluent to each pot. They watered the pots to simulate rainfall, and then tested for E. coli on days 1, 3, 7, 14, and 21. Results indicated the amount of E. coli in the soil would reduce by 90% by day 14 in the pots containing swamp mānuka and northern rātā. “Extrapolation from L. perenne data indicated that this reduction would happen by day 45.” The roots of swamp mānuka and northern rātā both increase soil acidity, which researchers suggest may have caused the faster E. coli die-off. […]

Synlait Milk Limited (Synlait) resets emissions reduction targets

The targets, covering greenhouse gas emissions from Synlait’s operations (scope 1 and 2), are an upgrade of the company’s inaugural sustainability targets launched in 2018. The reset targets, approved by the Science Based Targets initiative (SBTi), align with the New Zealand Government’s commitment to keep warming to 1.5°C, and will reduce: • Absolute scope 1 and 2 greenhouse gas (GHG) emissions by 45% between FY20 and FY28; and• Scope 3 GHG emissions from on-farm purchased goods and services by 30% per kgMS between FY20 and FY28. Synlait’s target for on-farm (scope 3) emissions is unchanged as it already meets the SBTi’s criteria for ambitious value chain goals. Synlait Director Sustainability and Brand Hamish Reid commented: “This is another big step for Synlait, further boosting our sustainability programme and commitment to people and planet. The upgraded targets ensure that our pledge to lower Synlait’s impact on Papatūānuku is backed by climate science, giving us increased clarity on what action we need to take.” Synlait has had a decarbonisation plan in place since 2018. The programme started with the commissioning of New Zealand’s first large-scale electrode boiler at Synlait Dunsandel. About SBTI:The SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). It defines and promotes best practice in science-based target setting and independently assesses companies’ targets. You can learn more here https://sciencebasedtargets.org/. About Synlait’s sustainability strategy:To learn more about Synlait’s sustainability strategy you can read the 2020 Sustainability Report or visit https://www.synlait.com/sustainability/.

Agricultural machinery demand continues to be buoyant

Growing demand for agricultural machinery and equipment has kicked 2021 off to fantastic start, according to the Tractor and Machinery Association of New Zealand (TAMA). The momentum began to build during spring and summer of 2020 as the result of increasing customer confidence, said TAMA president Kyle Baxter. Mr Baxter said he was seeing first-hand how strengthened commodity prices were giving farmers and rural contractors the confidence to invest in new equipment. Overall tractor sales were up more than 19 percent for the first quarter (to March 31) compared to 2020. There had been increases across every horsepower sector, with some stand out results in certain sectors such as a 30% increase in the sub 40HP sector plus a nearly 60% increase in the predominantly cropping and contracting segments of 150HP-plus. Investment in the 40Hp-150HP sector, which represents mainly horticulture and dairy, experienced a more modest growth of 8%, but this could increase quickly as new equipment arrived in the country, Mr Baxter said. Border control issues were a continuing challenge, however, affecting both the supply of staff and of equipment. “The current border restrictions have left many TAMA members short-staffed and this is extremely stressful for individual members, staff and customers. We know of course we are not alone in this problem as it’s affecting most industries. As we look to the second half of 2021, with vaccinations and digital travel passports becoming more prevalent, we are hopeful of border control relaxations to assist with the flow of skilled staff for our members.” Continued inbound and outbound supply chain challenges were also impacting members but conditions were on the improve. “Global manufacturing constraints are still very much a reality, as plants continue to work through Covid restrictions in their respective countries, but the flow of equipment into New Zealand is increasing steadily. This will offer much welcome relief for customers who are requiring new pieces of equipment to be put to work straight away. “TAMA members who manufacture in New Zealand are enjoying continued growth in customer confidence and […]

New grain fed beef site set to tantalise

New website grainfedbeef.com.au showcases the attributes of grain fed beef production in Australia and aims to provide consumers with information that covers topics including animal welfare, environment, and nutrition. Queensland-based lot feeder, Barb Madden of Smithfield Cattle Company (pictured), is excited about the launch of grainfedbeef.com.au and said it was a project brought on by curious consumers and those involved in producing and supplying the highly sought-after product. “To date, there has been a lack of readily accessible, credible information available on the production of grain fed beef in Australia. This central source of verified information will prove to be a valuable resource for those seeking out this information,” Barb explained. The site and Instagram account @grainfedbeef promises to deliver tantalising stories on how grain fed beef is produced and how people like to enjoy the tender, juicy flavours that is consistent with grain fed beef. “Australian grain fed beef is an exceptional product, underpinned by a quality assurance system that is considered the world’s best practice. Consumers might be surprised by the quality, care and pride that goes into every step, from production to product, welfare and environment.” “The site allows consumers to connect with where their food comes from in a direct and engaging way.” “As grain fed beef producers, we are committed to meeting the high standards we set for ourselves, and that are set within our independently audited quality assurance scheme. For us, it is about communicating this to our consumers and the progress we’re continually making in line with community expectations,” Barb said. Anyone seeking out information on grain fed beef will find value in the site, whether you have it on your restaurant menu, stocked in your butchery, or served up on the family dinner table. Peak industry body, the Australian Lot Feeders’ Association, […]

EcoStruxure solution meets Mataura Valley Milk’s requirements

Building the world’s best nutritional business is the ambitious goal that New Zealand dairy company Mataura Valley Milk set out to achieve in August 2016. Now the company’s milk production plant is an impressive accomplishment that comfortably justifies its early ambition. Mataura Valley Milk is now benchmarking innovation and performance for other milk plants. Situated north of Gore at the bottom of the South Island, the state-of-the-art facility was delivered on-time and within budget, an impressive achievement for a greenfield project. “To achieve our goal, we knew that choosing only the best people, partners, and infrastructure was crucial,” says Brent Robinson, Mataura Valley Milk’s Projects Manager. “The success of the project was a consequence of meticulous planning and strategy. We sought out and hired the most skilled staff; we chose construction partners with proven expertise; we purchased best-in-class plant and equipment; and we partnered with industry-leading suppliers and fabricators.” Schneider Electric was one such expert partner that delivered its EcoStruxure solution, tailored to Mataura Valley Milk’s strict requirements for a fully connected and integrated facility with real-time visibility of every process. Connectivity At Mataura Valley Milk’s core is its dedication to customers. “We must have agility around what we produce with no sacrifice of quality. Producing nutritional products is a complex, high reward approach so the plant must be nimble and our expertise unmatched. To confidently make these decisions, visibility and trust in our data is crucial” says Robinson. Schneider Electric’s EcoStruxure Plant solution delivers and provides context to live, real-time data on every process at the plant through AVEVA’s System Platform, Batch Management and Manufacturing Execution System (MES) software. In short, Mataura Valley employees receive any data they require immediately and know they can trust it. Goal Mataura Valley Milk wanted to build a business that could quickly tailor production […]

Global seed Sector commits to UN goals

Nyon, Switzerland – Seed companies and associations representing all regions of the world have come together to sign a Declaration committing to actively support achievement of the United Nation’s Sustainable Development Goals (SDGs) and proactively demonstrate their extensive and diverse contributions towards sustainable food systems, while calling for more urgent public private cooperation. The “Seed Sector Declaration”, signed by seed companies of all sizes and geographic representation and by seed associations representing hundreds of companies per country, was launched as a part of the sector’s engagement with the UN Food Systems Summit, scheduled for September 2021. The document acknowledges the enormous challenge for agriculture to produce sufficient, safe, and nutritious food for a global population expected to reach 10 billion by 2050, amid rising pressure from climate change, effective biodiversity preservation and natural resource scarcity. On current trends, the number of hungry people is expected to reach 840 million by 2030, from 690 million at present. Through the Declaration, the seed sector players outline a common set of principles for global action supporting sustainable agriculture. “We, the actors of the private seed sector, representing its diversity, acting as individuals or as representatives of cooperatives, family-, small-, medium sized- or multinational companies, based around the world, are committed to a future where enough affordable, safe and nutritious food is produced for all without compromising the economies, societies or environments of future generations,” says the Declaration. Michael Keller, Secretary General of the International Seed Federation said: “The COVID-19 pandemic has worsened the world’s food and nutrition crisis, but it has also shown us what can be achieved when the public and private sectors work together to produce solutions. “The Declaration is an opportunity for us to demonstrate the private seed sector’s diversity and unique contributions. We believe that transforming the world’s food […]

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