Business

Exporting New Zealand agri-technology to Ireland

When Hamilton manufacturer Innovative Dairy Systems (IDS) won a Euro 4.5 million contract to deliver a cheese making machine to a large food manufacturing company in Ireland it encountered a significant challenge. The challenge wasn’t a technical one, even though the buyer wanted a machine with the capacity to produce up to eight tonnes of cheese per hour – that’s the equivalent of four hundred 20kg blocks of cheddar, gouda or mozzarella! IDS had already provided a similar cheese making machine to this buyer, who was now building a new site to become one of Europe’s largest diversified cheese manufacturers. Instead the challenge related to funding this large project, over several months and involving key sub-contractors. For example, IDS sub-contracts the stainless-steel fabrication, and the manufacture of conveyor belts and valves to local Hamilton-based companies, who all require advance payments. IDS negotiated a 30% (Euro 1.4 million) advance payment from its Irish buyer to assist with its working capital. In return, the buyer required IDS’ bank to provide an advance payment bond that matched this amount. An advance payment bond is an on-demand financial guarantee which allows a buyer to have its deposit fully indemnified in the event its supplier fails to properly perform its contractual obligations. “An advance payment bond is a reasonably common requirement where a higher deposit is sought on a project, “explains Phil Quinn, NZEC Senior Business Originator. “Because it’s on-demand, a bank will require tangible security from their customer. This can be a challenge for many small to medium enterprises, particularly for larger contracts.” When IDS encountered difficulty providing its Bank with security for 100% of the value of the advance payment, they both approached NZEC for its General Contract Bond Guarantee support. “New Zealand Export Credit performed due diligence on our company and financials, […]

NAIT Bill passing sends strong message to farmers

The National Animal Identification and Traceability (NAIT) Bill passed by Government yesterday sends a strong message to farmers about the importance of tracking all animal movements. DairyNZ’s biosecurity manager, Dr Liz Shackleton, says the ability to track all animal movements on and off farm is vital to protect New Zealand’s livelihood and the farming community. “It’s not something to be underestimated, and this Bill gives it a clear focus. DairyNZ worked closely with other sector groups, putting forward an aligned sector view on the NAIT Bill to the Government,” says Dr Shackleton. “Unregistered movements put not just individual farms but also the whole farming community at serious risk. Mycoplasma bovis has shown us first- hand just how critical traceability is. Slow traceability means faster disease spread and bigger impact for the farm. “Ultimately, responsibility for ensuring animals are registered, before they move, lies with the farmer and this hasn’t changed. The benefit of good traceability goes well beyond M. bovis. For any disease that comes on farm, the quicker we can find, contain and control the threat, the better,” she says. “Although many farmers are doing a good job at tracking their animal movements, every farm needs do their bit. Much like vaccination, a whole community approach is needed to ensure our defences are robust and can hold up against biosecurity threats”. New Zealand cattle can clock up significant movement across the country each year, whether it is a sharemilker moving their herd to a new farm at the start of a new season, or to sales. “All these movements carry potential risk. Farmers are ultimately responsible for ensuring animals are tagged and registered before they move, and the Bill signals stronger infringements are coming. If farms run mobs separately, farmers can consider separate biosecurity measures, such as […]

DairyNZ and Beef + Lamb New Zealand welcome sector-wide vision

DairyNZ and Beef + Lamb New Zealand welcome today’s launch of a shared sector-wide vision to be world leaders in the sustainable production of high-quality food and fibre. “We are supportive of the Primary Sector Council’s broad vision of having a coordinated approach across sectors and Government that will help us develop our international brand and deliver more value for farmers,” Beef + Lamb New Zealand’s Chair Andrew Morrison said. “New Zealand farmers are constantly having to adapt to shifting consumer demands in order to compete internationally and achieve a premium in the global marketplace. Increasingly consumers are asking for assurances that the product is both sustainably and ethically produced. “We believe that our farmers are already world leaders when it comes to the production of high-quality, pasture-based products with a low environmental impact – but that doesn’t mean we can get complacent. We are always striving to improve” DairyNZ chair Jim van der Poel added. “Sustainable farming has a critical role to play in New Zealand’s future prosperity and wellbeing. If we all work together to embrace change, adapt and thrive, Kiwi farmers have a bright future ahead. The Primary Sector Council’s vision – Fit for a Better World – aligns with work that is already underway from both DairyNZ and Beef + Lamb New Zealand in the form of both Dairy Tomorrow and Taste Pure Nature. Dairy Tomorrow is our dairy sector strategy to ensure dairy farming is sustainable and profitable into the future. It includes six key commitments: • We will protect and nurture the environment for future generations; • We will build the world’s most competitive and resilient dairy farming businesses; • We will produce the highest quality and most valued dairy nutrition; • We will be world leading in on-farm animal care; • We will […]

Record export highs picked for primary sector

Sustained high growth in primary industry exports looks set to continue over the next two years with strong prices predicted for farmers, fishers, growers and rural communities. Minister of Agriculture and Minister of State for Trade and Export Growth Damien O’Connor today released the latest Situation and Outlook report for the Primary Industries. “This latest report shows record results, with revenue up 3.3 per cent on the previous year, forecast to reach a record $47. 9 billion for the year to June 2020. “Our horticulture sector is set to become the third largest primary sector industry by value, overtaking forestry. Kiwifruit exports alone are expected to rise by 8.6 per cent to $2.5 billon,’’ he said. The news is good for other sectors: Meat and wool exports are forecast to reach $10.4b for the year ending June 2020 – 2.5 per cent higher than the previous year. Dairy export revenue forecast to rise 8.4 per cent to $19.6b. A faster recovery in log export prices than expected last quarter has resulted in the forestry forecast being revised upwards of $190m. Fisheries Minister Stuart Nash says a significant milestone has been reached for the seafood sector. “It’s a fantastic vote of confidence to see that annual seafood export earnings are expected to pass $2 billion for the first time. The growth in this industry is underpinned by an increase in export prices and rising aquaculture production. “It’s really encouraging to see sustained growth within the seafood sector, with squid and salmon helping lead the way.” During a time of change in the primary sectors, Mr O’Connor said the positive outlook was a testament to each and every person working in the sector. “Our nation’s farmers and growers produce some of the highest quality food and fibre in the world – and […]

Helping Nutripeople combat global hunger and food waste crises

It’s an uncomfortable truth that while a third of the world’s food is wasted, one in nine people do not have enough to eat. In a bid to redress this balance, a socially conscious Spanish food producer is turning Europe’s surplus fruit and vegetables into a nutritionally enriched, easy-to-digest and 100% natural foodstuff for people in need. Thanks to equipment and support from HRS Heat Exchangers, Nutripeople can now produce 42 million pouches of its products each year, helping those in developing countries to avoid hunger and malnutrition. An alternative approach to food waste Anyone associated with the food industry is aware of the global food waste crisis. Latest figures from the Food and Agriculture Organization of the United Nations (FAO) show that approximately 1.3 billion tonnes of food are lost or wasted every year – roughly one-third of all the food produced for human consumption. At the same time, 795 million people across the world do not have enough to eat, with those in developing countries being the most vulnerable. Established in 2015 as a social enterprise, Nutripeople has formed alliances with some of Spain’s leading fruit and vegetable producers to turn their surplus produce into a new foodstuff with a high nutritional value, thanks to the addition of natural additives such as vegetable proteins and vitamins. Its target customers are global organisations fighting hunger such as UNICEF and Oxfam, as well as food banks closer to home. A percentage of each sale also goes directly to social projects or NGOs dedicated to feeding those most in need. In addition to the social benefits, the project also aids the circular economy. It takes on average 963 litres of water to produce one kilogram of fruit, not to mention the associated labour and transport costs and carbon emissions. Recovering this […]

DairyNZ to Te Papa: We’re not mad, we’re just disappointed

“It’s incredibly disappointing to see our national museum Te Papa reinforcing an overly simplistic anti-farming narrative that negatively impacts the public’s perception of New Zealand farmers and the dairy sector” DairyNZ Chief Executive Dr Tim Mackle says. “The water in their display is not reflective of what your average farm stream in NZ would look like. If you don’t believe me, you just need to look at the countless videos and pictures farmers have posted to social media to correct the perception. “Farmers were right in demanding to know when and where this water was taken from. Te Papa have since confessed that the water wasn’t actually from a farm at all but was made up in a back room using brown dye. “It’s not just about the quality of the water in the bottle either” Dr Mackle added. “The imagery on the bottle of a cow standing in water defecating is highly deceptive and entirely out of step with the reality of dairy farming in New Zealand today where we are proud to have fenced off 98.3% of waterways in recent years. “Farmers who have done the right thing and voluntarily invested their time and their money to fence off waterways and plant riparian strips deserve better than this from their national museum. “Dairy farmers have fenced over 24,744km of waterways. Under the Sustainable Dairy Water Accord New Zealand dairy farmers have achieved some fantastic results: 98.3% of waterways have been fenced on dairy farms to keep cattle out, 100% of stock crossing points have bridges and culverts and 100% of farms have been assessed for effluent management practices. “The situation is all the more disappointing because it was only last week that we hosted our 7th annual Dairy Environment Leaders Forum dinner at Te Papa to celebrate the […]

DairyNZ and Beef + Lamb New Zealand welcome sector-wide vision

DairyNZ and Beef + Lamb New Zealand welcomes the launch of a shared sector-wide vision to be world leaders in the sustainable production of high-quality food and fibre. “We are supportive of the Primary Sector Council’s broad vision of having a coordinated approach across sectors and Government that will help us develop our international brand and deliver more value for farmers,” Beef + Lamb New Zealand’s Chair Andrew Morrison said. “New Zealand farmers are constantly having to adapt to shifting consumer demands in order to compete internationally and achieve a premium in the global marketplace. Increasingly consumers are asking for assurances that the product is both sustainably and ethically produced. “We believe that our farmers are already world leaders when it comes to the production of high-quality, pasture-based products with a low environmental impact – but that doesn’t mean we can get complacent. We are always striving to improve” DairyNZ chair Jim van der Poel added. “Sustainable farming has a critical role to play in New Zealand’s future prosperity and wellbeing. If we all work together to embrace change, adapt and thrive, Kiwi farmers have a bright future ahead. The Primary Sector Council’s vision – Fit for a Better World – aligns with work that is already underway from both DairyNZ and Beef + Lamb New Zealand in the form of both Dairy Tomorrow and Taste Pure Nature. Dairy Tomorrow is our dairy sector strategy to ensure dairy farming is sustainable and profitable into the future. It includes six key commitments: • We will protect and nurture the environment for future generations; • We will build the world’s most competitive and resilient dairy farming businesses; • We will produce the highest quality and most valued dairy nutrition; • We will be world leading in on-farm animal care; • We will […]

Food and beverage exporters urge WTO to fix Appellate Body

Major New Zealand food and beverage exporters are urging World Trade Organisation Members to accelerate efforts to ‘fix’ its trade disputes mechanism which is currently suspended. Organisations representing New Zealand meat, dairy, horticulture, wine, and seafood exporters are deeply concerned that attempts to reach a consensus on the Appellate Body WTO have failed. This important body which adjudicates on contested rulings over disputes between member countries is now unable to function, leaving a key gap in the enforceability mechanism of the rules-based trading system. It is critical that WTO Members continue to support, but also to reform and improve, the multilateral, rules-based trade system to reflect the current and future needs of trade. A stable enforceability mechanism for the rules-based trading system provides certainty and confidence for our exporters when pursuing opportunities in global markets. New Zealand food and beverage exporters urge all WTO Members to redouble their efforts and to engage constructively in the process led by Ambassador David Walker of New Zealand to agree a pathway forward that avoids the continued suspension of the appeal process of the dispute settlement mechanism. Engaging in international trade underpins the prosperity of New Zealand food and beverage supply chains and our rural communities that produce food for the world. It has allowed our farmers access to best-practice and technology that has in turn improved the efficiency, sustainability and quality of food production. It has contributed to levelling the playing field and a more predictable trading environment. It is important to acknowledge the role this has played more broadly in promoting global food and beverage security and production. New Zealand food and beverage exporters recognise that WTO and some of its functions are not without flaws and need reform. However, WTO must also be given credit for helping to drive the prosperity […]

Exports up

Exports of dairy products, beef, and lamb, particularly to China, increased in value in October 2019, Stats NZ said today. However, the rises were partly offset by falls in logs and kiwifruit. In October 2019, the value of total goods exports rose $206 million (4.3 percent) from October 2018 to reach $5.0 billion. The rise in exports was led by milk powder, up $194 million (32 percent) from October 2018. The rise was quantity-led, but unit values were also up. “In each month at the start of the 2019/20 export season, the total value of milk powder exports was up on the same month of the previous year,” international statistics manager Darren Allan said. “These rises reflect higher export quantities and higher prices.” Exports of lamb (up $67 million or 27 percent), and beef (up $59 million or 39 percent) were the other main contributors to the rise in exports. The quantity of lamb exports rose 20 percent in October 2019 compared with October 2018, and that of beef exports rose 27 percent over the same period. Unit prices of both beef and lamb were also up on the same month in 2018. These rises were partly offset by falls in untreated logs (down $93 million), and green kiwifruit (down $47 million). “Export prices of untreated log exports in October have now increased by 11 percent since a low point was reached in July this year,” Mr Allan said. “However, the total export value of untreated logs continues to be lower than the same month of the previous year, and in October, quantities were down by 19 percent.” The monthly movements in dairy products, beef, lamb, and logs were led by exports of the respective commodities to China, New Zealand’s largest export partner. Exports to China rose $279 million in […]

DairyNZ: Zero Carbon Bill a mixed bag for farmers

DairyNZ Chief Executive Dr Tim Mackle is describing the Zero Carbon Bill as a ‘mixed bag’ for farmers, while urging all political parties to work together to find consensus on a pathway forward. “The agricultural sector has engaged positively and constructively in this process over the past 18 months to help craft a piece of legislation that is both consistent with a 1.5-degree pathway and fair for farmers” Dr Mackle said. “We support the key architecture in the Bill. This includes the establishment of an Independent Climate Change Commission, carbon budgeting and, in particular, a split gas approach that recognises methane is different to other greenhouse gasses”. The key point of contention remains the methane reduction targets. “Both farmers, officials, and politicians have sought a science-based target for methane, but the sheer breadth of differing scientific opinion and politics has ultimately made this a difficult exercise for all involved” Dr Mackle said. “DairyNZ remain firmly opposed to the Governments methane reduction range of 24 – 47% as we believe it is out of step with what science requires and rural economies can sustain. “That being said, sending the target to the Commission for review could be a pragmatic way to give everyone confidence that a scientifically sound approach has been taken. “Farmers have never been afraid of the facts. They simply want a methane target that is fair and firmly grounded in the best available science, applied in a New Zealand context. “We strongly encourage a review of the methane target by the Commission as early as possible – preferably by 2021 in time for the setting of the first emissions budgets” Dr Mackle said. An independent Commission is best placed to explore the IPCC’s global scenarios, the assumptions they have made, and whether or not broadly aligning with the […]

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