Analysis

2019 a solid year for tractor and machinery sales

Tractor and farm machinery sales were down on 2019 compared to 2018 but hopefully 2020 will see previously deferred purchase decisions realised, says Tractor and Machinery Association (TAMA) president John Tulloch. TAMA statistics showed that during 2019, overall machinery sales were 4382 units compared to 4531 of all types sold in 2018. Mr Tulloch said as these units included everything from $1000 sprayers through $500,000 harvesters, it was more useful for meaningful comparisons to focus on the key machinery areas of grass and forage harvesting. These sales were 1787 units in 2018 compared to 1665 units last year: a decline of about 6.8%. In turn there were 4007 tractor sales in 2019 compared to 4640 in 2018, a drop of 13.6%. “Anything over 4000 tractor units is still a respectable result and showed we had a pretty solid year. And certainly within the machinery sector, we had a better year than many were expecting considering the conditions.” These conditions included uncertainties around government policy on water quality and emissions plus challenges in obtaining finance as banks beefed up their equity reserves. 2020 was also shaping up to be another year of uncertainty with the unknown effects of the coronavirus and a general election. COVID19 could affect buyer confidence and there may be some impact on sourcing components from China although this had not yet occurred. “We just don’t know the actual impact yet. It could end up being positive as New Zealand is known as a safe country for food production. We have stringent and well-recognised food safety systems so could be seen as a preferred supplier. But only time will tell.” Mr Tulloch said the North Island drought conditions would have an effect on farmers although contractors might have a good season as feed reserves have been used up, […]

The milk of human genius

The end of the cow is near as animal-free milk is likely to decimate the traditional dairy industry within the decade, and plant-based meat is set to upend the beef market Meet Daisy, a typical Australian dairy cow. Daisy is likely to be a Holstein Friesian, whose ancestors grazed the cool lush pastures of northern Germany and the Netherlands. When she was only a day or so old, Daisy would have been separated from her mother, and raised for her first few weeks on bottled milk before being put out to graze. Sometime in her first six months, Daisy would have been “disbudded”, her developing horn buds heat-cauterised without anaesthetic or sedation, to prevent subsequent horn growth. At about two years old, Daisy will give birth to her first calf, having been artificially inseminated nine and a half months previously. Within a day, the calf, if female, will be separated to be raised like her mother as part of the dairy herd. If her calf is a male “bobby calf”, he will be surplus to requirements, with only two fates possible – either to be transported to an abattoir at about five days old, or to be fattened up for a few months then slaughtered for veal. After her calf is taken away, Daisy will continue to produce milk for about 10 months. Then after a few weeks respite she will be ready to conceive again, and the lactation–pregnancy cycle will continue. For the rest of Daisy’s life, she will be a factory on legs, turning grass into something you can put on your cereal or in your coffee. Daisy’s natural lifespan is about 20 years, but she is unlikely to live past six or seven, by which time her milk production will have declined to a point where she […]

Global food industry deals total $665.89m in January 2020

Total food industry deals for January 2020 worth $665.89m were announced globally, according to GlobalData’s deals database. The value marked a decrease of 88.1% over the previous month and a drop of 76.4% when compared with the last 12-month average of $2.82bn. In terms of number of deals, the sector saw a drop of 17.9% over the last 12-month average with 55 deals against the average of 67 deals. In value terms, North America led the activity with deals worth $424.07m. Food industry deals in January 2020: Top deals The top five food deals accounted for 88.4% of the overall value during January 2020. The combined value of the top five food deals stood at $588.66m, against the overall value of $665.89m recorded for the month. The top five food industry deals of January 2020 tracked by GlobalData were: Green Monday, Qatar Investment Authority and Temasek Holdings (HK)’s $225m venture financing of Califia Farms The $161m venture financing of Memphis Meats by Bill Gates, Cargill, CPT Capital, Fifty Years Fund, Finistere Ventures, Future Ventures, Kimbal Musk, Norwest Venture Partners, Richard Branson, SoftBank Group, Temasek Holdings (Private), Threshold Ventures. and Tyson Foods SEA Diner Holdings’ $130m acquisition of Del Monte Philippines The $40.66m acquisition of Shanghai Ground Food Tech by China Mengniu Dairy 301,(US), Almanac Investments, CPT Capital, Greenleaf Foods, New Crop Capital, Rocana Venture Partners and Stray Dog Capital’s venture financing of SeaCo Foods International for $32m.

Our Vision is Clear: let’s all improve our waterways, without destroying rural communities

Today’s Essential Freshwater Package shows healthy and swimmable waterways are important to all New Zealanders, including dairy farmers, who share the same aspirations to protect our streams, rivers, lakes and wetlands. DairyNZ chief executive Dr Tim Mackle said the dairy sector and our farmers share the same vision communities, Maori and Government have to protect and improve our freshwater resources. “The Essential Freshwater Package announced today provides a real opportunity for everyone to have their say in this important conversation. We know we can’t farm without healthy water and land, and we reflect this in our Dairy Tomorrow sector strategy, and we need to acknowledge the work that’s already taken place,” said Dr Mackle. “Our dairy sector is already on the journey to improve and protect water quality and our farmers have been working towards this for more than a decade.” Dr Mackle said at the same time it is acknowledged that, in some catchments, community expectations for water quality has not yet been met. Here, further action is required by all land users, including dairy, to halt a decline and longer-term solutions put in place to restore the health of these waterways. “This policy package focuses not only on dairy but all land use activities, including sheep and beef, horticulture and urban activities, reflecting that we all have a part to play in improving our waterways,” said Dr Mackle. “We agree with a focus on ecosystem health and alongside this, options to better track the impact of improvements farmers are making to work towards this. However, we have serious concerns that the proposed approach of reducing nitrogen and phosphorus may not achieve improved ecosystem health and could have a significant impact on the viability of farm businesses and rural communities. We need to understand this better and what it […]

Lessons in mass production

Socrates and his student, Plato, are a perfect example of how good leaders are shaped by observant students. Here, Darcy Simonis, industry network leader for food and beverage at ABB, explains what can be learned from global manufacturing leaders such as China. China, a leader in mass production, has firm plans to build upon its proud history by investing in the robotics and automation industry. However, because labor is plentiful, mass production is not always automated in China at present. Because China’s working-age population is falling significantly, labor costs are increasing by 15-20 per cent year on year, compared to only 1.6 per cent in the US. This opens opportunities for automation across all economies. In 2014, the International Federation of Robotics announced that China was buying more robots than any other country each year, partly due to government funds as part of China’s five-year plan to develop intelligent manufacturing. This trend has continued, in 2015 China bought more robots than every European country combined. Generally speaking, Chinese manufacturers are choosing to buy robots from the same global suppliers as other countries, including ABB, despite there being a number of small Chinese robot manufacturers. “This trend is driven by the Chinese Government´s 2025 initiative to support automation. The country aims to become a leader in automation globally,” explained Joe Gemma, President of the International Federation of Robotics, in February 2017. Given the clear manufacturing focus in several governments’ foreign policies, including UK and US policy, it’s clear that the progress China is making in automating mass production is something that many countries aspire to. But there is also a clear reciprocal relationship, just as there is with Plato and Socrates, which is allowing countries around the globe to benefit from technological advances. History Mass production became possible because technology and […]

How global exporters are keeping up with demand

Regardless of whether Venetian explorer Marco Polo really was the first to introduce pasta to Italy in the thirteenth century, food has been exported for thousands of years. For example, the UK has become heavily reliant on imported goods. In the first half of 2018, it imported £23 billion worth of food, with a proportion of five billion pounds of imported meat. In most towns, there is a corner shop that sells imported foods and supermarkets now have ‘world’ food aisles. With a rise in demand for globally imported foods, how do food manufacturers keep up with the demand for exported produce? Here, Darcy Simonis, industry network leader for ABB’s food and beverage segment, explains. Attitudes to cultures and foods has changed. More than fifteen years ago, global foods were not as widely accessible as they are now. From Asia and eastern Europe, to Africa and the Caribbean, it is now as easy to buy foods from these parts of the world as it is to buy domestic products from the country you live in. Merging travel with cultures Travel has developed significantly, opening more opportunities to experience different cultures and food, and as a result, cultures are merging. The convenience and appeal of being able to explore more places around the world quicker than ever, means that we are subject to a variety of different cuisines that we want to be able to enjoy at home. As we have become more accepting and adventurous to try foods from different countries, it’s become fashionable to embrace other cultures and experience their food, increasing the demand for exported food. Automating your plant With these factors influencing the desire for foods from around the world, companies need to increase production and enable efficient processing to meet the demand. For instance, Hungarian company, […]

Alliance Group acquires stake in India partner

Alliance Group has acquired a stake in its India partner QualityNZ as it looks to capture more value from the world’s second most populous nation. The 100 per cent farmer-owned co-operative has purchased 10.4 per cent of QualityNZ, which supplies New Zealand’s products such as red meat, seafood and wine to India. QualityNZ’s other shareholders include New Zealand cricketing legends Sir Richard Hadlee, Stephen Fleming, Daniel Vettori and Brendon McCullum. “This investment in QualityNZ is consistent with the co-operative’s strategy of moving up the value chain and having an in-market presence in key regions,” said Alliance Group chief executive David Surveyor. “India’s fast-growing middle and upper classes have a real appetite for New Zealand lamb and value the Pure South story of grass-fed red meat produced naturally. “We are targeting the higher socio-economic category, which is represented by more than 200 million people. It is estimated this number is expected to grow strongly within the next decade and India is forecast to soon exceed China’s GDP.” The investment in QualityNZ will ensure Alliance Group is closer to its customers and can better understand their needs and expectations, said Mr Surveyor. “This will provide us with deeper connections to this important market and lift Alliance’s visibility and engagement across all steps of the supply chain. “It will also enable Alliance to effectively get in on the ‘ground floor’ of a country which one day will be the next China. For us, this is an investment for the long-term. As a co-operative, we can take an inter-generational view of investments for the benefit of our farmers. “We are looking forward to bringing our capabilities in sales and marketing and food processing to support the growth of QualityNZ. “Alliance’s world-class reputation for producing the highest quality red meat, combined with QualityNZ’s expertise and […]

Flooding impact severe for 100-plus Southland-South Otago dairy farms

With swollen rivers still rising in some areas, DairyNZ reports that more than 100 dairy farms in Southland and South Otago are being severely impacted by the extensive flooding in the region. While the scale of damage is unknown at this time, DairyNZ’s South Island manager, Tony Finch, says these farms are either under water or cut off with access roads flooded. “We’re in phone contact with many of the farmers. It’s a dire situation for many right now. Their key focus is to get their people and their animals to safety,” he says. “Farmers and their teams are moving their cows to higher ground where they can, and we know of some who have been able to relocate their herd to their neighbour’s farm out of the danger zone.” While flooding ravages Southland-South Otago, dairy farmers in other parts of the country, in particular Northland, are facing drought conditions. Dairy farms in the Southland-South Otago Oreti, Aparima and Clutha river catchments are the most severely impacted with the flooding and many areas are now also without power. With access to the farms cut off, dairy companies are not able to get tankers in to collect milk, which means many farmers will need to dispose of the uncollected milk. “Added to this, the flooding has impacted effluent management systems on many of the farms so farmers now also face the challenge of how to dispose of this in the best way,” says Mr Finch. Farmers in the affected regions are working together to accommodate animals on any dry land there is. “We’re also talking with farmers where the milk tankers can reach them, and many are sharing their milking sheds with neighbours who’re flooded.” As well as farmers helping each other, Mr Finch says impacted farmers can contact DairyNZ for […]

The advantages of cold aseptic filling

By Matt Hale, Sales & Marketing Director, HRS Heat Exchangers In recent years, aseptic technology has become well established in the food and drink sector as a filling technique. Yet some businesses are still unaware of its benefits or do not believe that it can be used with their products. As consumers have become more health conscious, the demand for food and drink products without preservatives has increased. However, traditional methods combining sterilisation with hot filling have not been suitable for products which are increasingly sold on their ‘fresh’ and ‘natural’ characteristics, due to the effect on product quality. In most cases, hot filling sterilises the container as the product (which is still hot from cooking or sterilising) is filled. However, the temperatures required often have unwanted effects on the quality of the product, and the heat imposes restrictions on the type of container which can be used: for example, hot filling of lightweight plastic drinks bottles can lead to distortion of the plastic. Consequently, cold aseptic filling has become a common technique with drinks manufacturers for products including UHT milk, fruit juices, and sports and energy drinks. Its flexibility means that it is suitable for a wide range of products from fresh fruit dices and purees to marinades and dairy products. This diversity has also seen the development of a wide range of fillers and packaging types, from pouches and lidded trays through to bulk bags and intermediate bulk containers (IBCs). Aseptic filling systems generally combine a number of elements into a single integrated production line. This integrated approach helps to ensure microbiological safety throughout the process from initial treatment through to the sealing of the finished product. The steps included in an integrated aseptic filling line (such as the HRS Asepticblock) typically include: Thermal treatment Although in theory […]

Dairy farmers go bananas

Northland dairy farmer Graeme Edwards with his banana plantation one year on from planting. The expression ‘you’re driving me bananas’ has nothing to do with being frustrated or driven crazy for some forward-thinking Northland dairy farmers. Rather, they find the idea of bananas – or banana plants, to be specific – pretty appealing, either planted in stock excluded riparian zones between waterways and the fence, or plantation-style on the farm where they can be grown for harvest, or for fodder for their cows. Graeme Edwards and Alec Jack are two of the Northland dairy farmers putting bananas to the test to see whether the plant can utilise dairy effluent. While the trials are informal at present, and very much in the early days, DairyNZ’s land and water management specialist Dr Electra Kalaugher says banana plants have potential for ‘mopping up’ nutrients in largely frost-free regions like Northland. “Dairy farmers are always looking to step more lightly on the land, and they’re enthusiastic and innovative in seeking solutions. “The banana plant’s appetite for nitrogen and potassium is well-known in traditional banana growing countries. We’re very keen to see how these plantings progress.” She adds that harvested fruit might eventually make for an additional revenue stream for some farmers, and the banana plant foliage may also provide another source of supplementary feed that is palatable to cows. Mr Edwards, who has farmed for nearly 40 years at Pakotai, just off SH 15 on the way from Whangarei to Kaikohe, planted 70 Misi Luki bananas a year ago. Already some of the plants are over two metres tall. This variety is especially disease resistant, grows to between three and four metres tall, producing a smaller fruit that is reported to be particularly tasty. “We are now looking for some funding and expert assistance […]

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