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Not a good example

Rural Contractors NZ (RCNZ) is concerned about Fonterra’s moves to extend the time it takes to pay contractors as part of an efficiency drive. The organisation, which represents NZ’s agricultural contractors, concerns come in the wake of reports that Fonterra has extended by two months the time it takes to pay suppliers; while also asking them to cut their charges. The dairy co-op has defended the move as about boosting efficiency. RCNZ president Steve Levet says this is not the type of action an industry-leader like Fonterra should be undertaking. “It sends a terrible message to farmers. That it is ok to delay paying suppliers and that is not on,” Mr Levet says. “We all understand the dairy sector is undergoing a very, tough period. But this should not be used as an excuse to not pay contractors in a fair and timely manner.” Mr Levet believes dairy farmers – many who will be making a loss this year – would not approve of such action and he does not want to see them to take a similar stance with their own suppliers. “Dairy farmers – on the whole – are good and fair people, but when Fonterra takes a stance like this – they make think it is ok for them to do the same. “I can tell you rural contractors are hurting just as much as dairy farmers. The last thing we need is for people to delaying paying us or trying to dictate pricing. We all have to live.” Mr Levet has called on dairy farmers to pressure Fonterra to ensure it treat its contractors fairly.

Primary ITO helps keep traditional Kiwi farming know-how on the farm

New Zealand farmers are an ageing demographic and the traditional succession model – of the children inheriting the farm – is breaking down, raising questions around how the generational and experience based knowledge of Kiwi farmers will be passed down. A study by agribusiness scientists, John Fairweather and Stephanie Mulet-Marques, using Statistics New Zealand data shows that farmers (owner operators) are getting older, and fewer farm children are interested in continuing on the family farm. There also appears to be an increase in the corporatisation of local farms, although no studies have been done, which also potentially puts traditional farming knowledge that is learned through the experience of generations, at risk. However, initiatives like the 450 strong Primary ITO volunteer mentor network – as well as training advisers who travel from farm to farm, and retired farmers who remain involved with the likes of Federated Farmers – are helping to make sure that valuable Kiwi farming know-how is preserved, even though farm children are going on to other professions. Primary ITO regional manager in the Manawatu, Cathy Puanaki, says that steps are already in place to ensure ‘succession knowledge and experience’ is handed down, even to the level of a farmer’s learned experience of factors like the micro-climate and soils relevant to his particular farm. “We have training advisers who are active farmers at the moment, whose children aren’t interested in going into farming, so we know it’s happening. I think technology is changing the way things are done, and children in particular are seeing different opportunities that they want to explore. The younger generation are choosing not to carry on the traditional family farm. They are keen to go and attain new qualifications, techniques and technologies and bring them back to the family farm.” Cathy believes though that the […]

How to respond to the ‘water quality versus production debate’?

-by Dr Blair Miller – Group Manager Environmental Research, Lincoln Agritech Government recently issued a call of action to the country, saying that we must work to double our primary production export earnings while maintaining or improving water quality. To most people, this twin challenge will seem contradictory. Yet we are capable of fulfilling both of these duelling ambitions. In fact, the fight to attain them is one that we must fully commit to. I believe we can do it, as we have some of the best scientific minds in the world on the case. But we need to utilise our experts so we have the best chance of balancing economic development with environmental protection. Achieving export growth means developing new markets and these markets will be increasingly judging us on the integrity of our production processes. If we allow environmental impacts to worsen, we risk damaging the reputation on which our primary sector exporters trade. In other words, the Government’s challenge is not contradictory. Positive economic development must be based on sound environmental outcomes. Pundits regularly promote the notion of moving up the value chain to increase export earnings. This, of course, is happening all the time and we should applaud companies like Synlait with their slogan, “Making more from milk”, which describes the strategy very well. However, we must look at how much primary produce we need to achieve growth. Bulk commodities dominate primary sector exports and this will continue for the foreseeable future, so increasing production is the only realistic way to double our primary export earnings. However, this means intensification, and with that comes environmental impact. We need to understand this impact if we are to develop strategies that will tackle it. The fate of nitrates attracts the most attention in this area due to dairy […]

NZ catches up with new health claims standards

By Peter Brown Food and beverage businesses need to make sure the nutrition and health claims on their products stack up, after new standards regulating these claims kicked in recently. The new rules couldn’t be more timely, with New Zealand’s food industry on a high. The health foods and health-giving foods sector is booming here and offshore, but with that comes a responsibility to assure consumers and our export partners of the high standard of New Zealand’s products. All health claims must now be pre-approved and with acceptable nutritional profiles as outlined by Food Safety Australia and New Zealand (FSANZ). You yourself would be able to pinpoint times spent standing in a supermarket aisle reading statements such as ‘calcium for strong bones’ on the side of a bottle. Statements like this previously had poor regulatory framework in New Zealand, and were not necessarily backed by scientific research. For a country that sells itself on reputation and quality, I see it as ironic then that we’ve been lagging behind on initiatives that regulate nutrition and health claims, with Canada and Europe streets ahead. And while there has been a generous, three-year lead up to comply with the new standards, there are still plenty of products that will fall short because their claims don’t comply. It’s tricky, because there is a difference between claims that are clearly just marketing, and those that consumers could take more seriously, with the potential of creating a health risk. For example, someone could take the ‘more must be better’ approach to mānuka honey and rather than sweetening their tea with it, consume a cup of the stuff a day and disturb a balanced diet. To me the new standard seems fair. Going back to calcium, under the new standard it can be said that calcium is necessary […]

NZ’s ultimate rural challenge begins

New Zealand’s ultimate rural challenge, FMG Young Farmer of the Year, takes place at regional locations around the country. Now in its 48th year, the iconic Contest displays the finest of New Zealand Young Farmers in a range of action-packed challenges. In the lead up to the seven Regional Finals in 2016, over 250 Young Farmer hopefuls battled it out across 24 District Finals for a spot in their region’s final. Between February and April 56 contestants will take up the challenge in their Regional Finals around the country, narrowing the field to a single representative from each region to compete at the Grand Final in Timaru from 7-9 July 2016. “The FMG Young Farmer of the Year Contest is unique in the world for its national reach and breadth of competition, a global leader for this genre of competition,” says Terry Copeland, CEO of New Zealand Young Farmers – organisers of the Contest. “It’s a chance for the wider New Zealand community to see first-hand the specialist knowledge and skills that our future rural leaders possess. It is a showcase for the cream of New Zealand’s up and coming agri-sector talent.” Regional Finalists show their skills across a range of tasks in the Practical Day challenges and Evening Show rounds as they vie for a spot in the Grand Final and a slice of the total $303,150 Contest prize pool. The Practical Day, which is open to the public, is fast-paced and physical with sporting and agricultural skills demonstrated alongside business know-how. The Evening Show, in front of a live audience, includes quiz rounds on specialist topics and general knowledge. The FMG Young Farmer of the Year has been supported by many long-standing sponsor partners. In October 2015 NZ Young Farmers announced FMG as the new principal sponsor for […]

Sustainable Foods Summit Europe Agenda Announced

The European edition of the Sustainable Foods Summit will feature sustainable ingredients, and approaches to tackle food losses & waste. Taking place on 9-10th June, the executive summit will be hosted in Amsterdam for the eighth consecutive year. The proceedings will open with a discussion on the implications of COP21. The food industry generates a quarter of all greenhouse gases, with over half coming from livestock production. What can be done to mitigate emissions from dairy and meat production? Taco Kingma from Friesland Campina will look at the solutions provided by sustainable dairy farming. How is the dairy cooperative expanding its business by climate-neutral growth? Alpro, the leading plant-based food company in Europe, will show how it is leading the way in reducing and offsetting carbon emissions. Its Provamel brand has been carbon neutral since 2010. The Marine Stewardship Council will give an update on sustainable seafood and its new seaweed standard. Advances in sustainable ingredients will be featured. The Italian pasta firm Barilla will show it is adding sustainable value to raw materials. Its sustainable durum wheat has led to improvements in product quality, soil fertility, and higher economic output. Using tea as a case study, an update will be given on sustainable sourcing and transparency. The Union for Ethical BioTrade will give details of its new sustainability programme for herbal teas. With most companies focusing on environmental footprints, Tradin Organic will highlight some of the issues when addressing social impacts of ingredients. Other topics include emerging natural sweeteners, formulating for transparency, and novel ingredients from food waste. Summit participants will also discuss the future direction of sustainability labels. Is the way forward with the rising number of third party labelling schemes, or with in-house sustainable sourcing programmes like those introduced by Starbucks, Nestlé and Mondelez Foods? An update […]

Solar innovation a relief for drought-stricken farmers

A solar water pump system is helping get much needed water to stock on remote hill country farms and has captured international interest from water-stressed countries. Central Hawke’s Bay electrical and pumping business Isaacs Pumping & Electrical has been developing the technology over the last two years with support from Callaghan Innovation. Isaacs Electrical directors Gavin Streeter and Shane Heaton were continually being asked by farmers what options were available to reliably get water to stock without electricity, especially in remote hill country properties. “Solar was the ideal alternative but we needed to ensure we had a motor and pump that farmers could rely on to keep stock troughs full. “We didn’t need to look too far and we selected a pump with a proven track record and has been servicing farms for over 50 years,” Mr Streeter said. The Callaghan Innovation funding helped developed the controller or the “brain”, which is a circuit board that optimises the use of solar power and monitors water pressure, run times and faults logs. “The system is fully automatic, it operates like a standard pumping system and we have just design some clever features to maximise the pumping time and protect the motor,” he said. The development of the epump has been a mix of international and Hawke’s Bay suppliers providing equipment and componentry. An Italian company developed the industrial continuous rated motor, Hawke’s Bay engineering firm McLaren Stainless designed and manufactured the outer protective shell and another local firm, some of the Intellectually Protected circuitry. The epump can pump up to 120 metres of head and up to 20 litres per minute in daylight hours and can withstand the harshest environments. It can fill stock troughs on hillsides up to 120 metres on hill country and unlike other options it can draw both […]

Thirsty cows pump their own water

Cows grazing on remote New Zealand farms can now pump their own drinking water and be fully fenced off from precious waterways thanks to a Kiwi company’s newest product. Shoof International, a veterinary equipment company which specialises in farm innovations, have just launched their new Grazing Pump. It allows cattle to drink from a trough and pump water at the same time without the need for power or water reticulation systems to be installed. The Grazing Pump would prevent controversial situations where cattle stray into lakes and waterways, as occurred when cattle belonging to Chief Justice Dame Sian Elias and her husband, Hugh Fletcher, were photographed wading in a North Canterbury lake. Shoof International’s group sales manager, John Stubbs, says when cattle drink from the portable trough, they push a lever arm with their nose which draws more water from the source supply. “Water can be drawn 70m across or 7m upwards from any water source such as streams, ponds, bores, dams, wetlands or troughs,” Stubbs says. “Animals learn very quickly how to operate the pump, as there is always a small amount of water lying in the bottom of the bowl which they try to drink, activating the pump in the process. “There’s even a model that allows a calf to drink at the same time as its mother pumps the water. It’s the perfect solution for remote farming areas.” The pumps supplies enough water for up to 50 dry stock, giving farmers the ability to fence off waterways completely, knowing their stock will always have enough water to drink. “The stock will remain hydrated and healthy, and New Zealand’s environment will be protected as there’s no longer any need for cows to walk in, and pollute, our waterways.” Shoof International has been in business since the 1970s and […]

Seeka Kiwifruit lifts annual profit 35% on increased volumes, insurance payout

Seeka Kiwifruit Industries, the largest kiwifruit grower in Australia and New Zealand, increased annual profit 35 percent as volumes recover from the impact of the Psa-V vine disease and it received insurance money from a fire at its largest packhouse facility. Profit rose to $4.3 million, or 27 cents per share, in the 12 months ended Dec. 31, from $3.2 million, or 22 cents, the year earlier, the Te Puke-based company said in a statement. That’s ahead of its forecast of between $2.96 million and $3.53 million, which reflected uncertainty around insurance claims related to the fire. It received $5.46 million in insurance proceeds from the fire, although not all claims were finalised or accepted by the insurers at year end. Revenue rose 23 percent to $142.1 million. Seeka is growing profits as its orchards recover from the vine-killing Psa-V disease, lifting its volumes in the past year to 27.8 million trays from 21.4 million trays the year earlier. It’s expanding its Australian operations, with its purchase in August last year of the remaining half share in Pollen Australia and its acquisition of the orcharding and business assets of Bunbartha Fruit Packers. “Seeka has significantly increased its profit and size during the year,” chair Fred Hutchings and chief executive Michael Franks said in the 2015 annual report. “The immediate outlook for growth remains positive as Seeka concentrates on expanding New Zealand facilities to handle higher kiwifruit volumes, completes the integration of Seeka Australia and improves orchard productivity in Australia.” The company said the benefits of its Australian expansion are expected to show in this year’s result. In New Zealand, the company provides orcharding, post-harvest and retail services to kiwifruit, avocado and kiwiberry industries, retail and ripening services for imported tropical produce, and operates a wholesale market. Earnings before interest and tax at its post-harvest operations increased 37 percent to $8 million, […]

Commission releases final report on dairy sector competition in NZ

The Commerce Commission has today released its final report on the state of competition in New Zealand’s dairy industry. The review began in June last year at the request of the Minister for Primary Industries as required under the Dairy Industry Restructuring Act 2001 (DIRA). Having considered submissions on the draft report released in November, the Commission’s view remains that there is not sufficient competition at the farm gate and factory gate to consider full deregulation at this time. Deputy Chair Sue Begg said that while the costs and benefits of the DIRA Regulation are more or less balanced, the risks of removing it too soon outweigh the risks of it remaining longer than it should. “As it stands, without regulation Fonterra would be able to increase the price of raw milk it sells to other domestic processors and this would likely flow through to higher retail prices of dairy products for New Zealand consumers. Increased competition is needed, particularly at the factory gate, and our view is it is better to err on the side of caution before embarking on full deregulation,” Ms Begg said. The final report recommends that a pathway to deregulation would be smoothed by facilitating the development of a factory gate market for non-DIRA milk. Options the Minister could consider include: reducing DIRA milk entitlements; investigating if and when the DIRA milk price covers Fonterra’s opportunity costs; and tightening the terms and conditions for DIRA milk supply. “Keeping the open entry and exit provisions in place during any reforms would help with the transition by aiding the growth in competition at the farm gate by suppliers that could then enter the factory gate market,” Ms Begg said. “However, we think it is worth exploring whether open entry for new dairy farm conversions should be removed. […]

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