Business

Labour Shortage Big Concern for Hawke’s Bay Apple Growers

A labour shortage across Hawke’s Bay is causing major concerns for Bostock New Zealand Apple Orchard Managers. The Hawke’s Bay grower and New Zealand’s largest exporter of organic apples, held its annual open day this morning to attract workers to ensure they can get the apples off their trees in time. Bostock New Zealand Orchard Operations Manager, Craig Treneman says they currently need over 200 people and are desperate to find labour. “We work with WINZ, we advertise and the open day is all part of our attempts to attract workers before the apple harvest starts in just a few weeks. “The key for us is getting New Zealanders into full time employment rather than just seasonal jobs and we are helping up-skill our seasonal staff to give them more opportunity. We are challenged by a labour shortage and there are just not enough Kiwi’s available to meet the peak season demand.” Bostock New Zealand also provides transport for any New Zealanders keen to work in its orchards. “We are keen to work with people to ensure they have no barriers to employment. Drivers licenses are one of the biggest challenges, so we will do everything we can to help get people to work.” About 60 people, including locals and tourists signed up to work for Bostock New Zealand at the open day. “We were hoping to attract more people as we have plenty of work, both seasonal and permanent jobs. This was the lowest turnout rate we have seen at an open day for five years,” said Mr Treneman. Flaxmere woman Te Aroha Toa Toa was quick to sign up with Bostock New Zealand, excited by the employment opportunity. “I have been unemployed for some time, so the orchard work gives me the opportunity to get into some seasonal […]

Owl Farm focus day a valuable resource

How will changing health and safety legislation affect your farm? Are empty rates higher than normal this season on dairy farms? And what alternatives are there to chicory for summer cropping? These key dairy industry topics and more will be discussed on Wednesday 2 March at Owl Farm’s first farm focus day for 2016. Owl Farm, the St Peter’s School and Lincoln University Demonstration Dairy Farm, will host guest speakers from Fegan & Co, LIC and PGG Wrightson Seeds. Owl Farm Manager Tom Buckley will give an update on the season so far and give examples from Owl Farm to illustrate the issues at hand. With the new Health and Safety Act becoming operative on 2 April, Owl Farm is busy reviewing their health and safety systems. With assistance from consultant Steve Sharpe from Fegan & Co the team have been identifying hazards around the farm and ensuring the correct measures are in place to reduce the any potential injury. Owl Farm is formalising a training programme complete with standard operating procedures for various activities which occur on farm. At the farm focus day, Steve will be talking about what changing legalisation means for farms and what is needed to ensure best practice is achieved and, of course, ensuring that our people return home happy and healthy after work. Steve will also be available after lunch if any farmers or rural professionals would like to discuss the implications of the health and safety legislation changes for their business. In-calf and empty rates are another big talking point at the moment. “Early evidence within the Cambridge area has seen the average empty rate up around 12-14 percent,” says Doug. “Fortunately at Owl Farm we achieved an empty rate of six percent which, considering the various on-farm challenges we faced in spring, […]

Primary ITO appoints Mark Darrow as new Chair

The industry training organisation for the primary sector, Primary ITO, is pleased to announce the appointment of their new Board Chair – Mark Darrow. Mark will replace current Chair, John Parker, at the ITO’s Annual General Meeting to be held on the 25th of May 2016. Mark has been a Primary ITO Board member for the past year, and has extensive primary industry experience including six years in CEO and Advisor roles within the PGG Wrightson group. He is a professional director with significant Chair experience. His current directorships include one of New Zealand’s largest produce growers – Balle Bros Group – and other corporates such as Motor Trade Association, The Lines Company, Courier Solutions, VTNZ, Armstrong Motor Group and tech company Signum Holdings. Mark is also a chartered member of the Institute of Directors and is C.A (Chartered Accountant) qualified. “I am honoured to be appointed as the new Chair of Primary ITO. I am passionate about the primary and educational sectors, so having this combination in a role is fantastic,” Mark says. “The Primary ITO Board, as well as the organisation itself, is made up of a very talented, hardworking and engaged group of people. The Board is focussed on what Primary ITO needs to deliver to the various industry groups we support, and I look forward to actively continuing and improving that work,” he says. Outgoing Chair, John Parker, successfully led the ITO through a transitional period. “I joined the Primary ITO Board as the transitional Chair in February 2014 when Primary ITO and the New Zealand Industry Training Organisation (NZITO) merged,” John says. “It has been a pleasure to serve a great organisation, and it is in very good heart. The quite complex merger with concurrent staff and director changes has gone well, and this is […]

Commodity prices concern for New Zealand agribusiness

A recent survey conducted by business advisory firm Crowe Horwath during the Southern Field Days asked farmers, rural professionals and others heavily involved in New Zealand agribusiness for their views on the industry’s key influences. Technology, farm management practices, favourable interest rates, improved rural connectivity and continued education and training were identified as the factors most likely to have a positive influence on the industry over the next 12 months. Respondents were most concerned about the negative impact of low commodity prices, regulation (both at a local and central government level), succession issues, climatic conditions and human resources. “The results are not overly surprising and have reaffirmed what our clients have been telling us around what concerns them,” said Hayden Dillon, Crowe Horwath’s Head of Corporate Agribusiness and Capital Advisory. On the negative side, commodity prices created the greatest level of concern with nearly 65% of respondents identifying this as highly likely to have a negative impact on the sector during the next 12 months. Succession, which seems to continually crop up as a major issue for New Zealand farmers, scored highly as a negative influence with 60.82% agreeing it was highly likely to impact negatively on agribusiness in the next 12 months. Dillon agreed that given the current state of the industry, succession was a pivotal issue. He advised, “The challenge around bringing the next generation into farming is nothing new and with the state of the some parts of the industry at the moment, it is no surprise it might not be seen as the most attractive career path.” Given the recent press coverage around environmental and health and safety law reform, survey respondents were also concerned around both central and local government regulation and the impact this may have on their businesses. On a positive note, the […]

Sustainable Foods Summit Calls for Greater Disruption

JEZ Media www.nzfoodmanufacturer.co.nz publisher@xtra.co.nz London -The food industry needs more disruption for sustainable development: this was one of the key messages from the North American edition of the Sustainable Foods Summit (www.sustainablefoodssummit.com/namerica). Hosted in San Francisco on January 20-22, the summit brought together 140 senior executives from the food industry. Josh Tetrick, CEO and Founder of Hampton Creek, emphasised the importance of disruption in his opening keynote. He believes 99% of the food Americans eat is of poor quality, and that a ‘system change, not people change’ is required. His company is exploring 400,000 plant species to develop new food products. Tetrick shared his plans to launch new healthy and tasty products with environmental benefits, following the success of Just Mayo and Just Cookies. With a proteins crisis looming over the food industry, Daniel Imrie-Situnayake made the case for edible insects. According to the co-founder of Tiny Farms, there has been a flurry of investment in insect farms in the US in recent years. He believes the market for insect proteins could reach US $1.2 billion with the success of a few products. Although the sustainability credentials are well documented, consumer acceptance remains a major barrier. Nikhil Arora of Back to The Roots is also causing disruption in the food industry with a new range of organic breakfast cereals. The packs of its ready-to-eat cereals contain recipes so consumers can make their own. Rather than cannibalizing its product sales, Arora believes the company is creating a stronger bond by connecting its customers to the food they eat. Back to The Roots started with ready-to-grow organic mushrooms, and is planning to disrupt more food categories by “undoing food” and getting its customers back to basics. Other speakers highlighted the importance of innovative ingredients. Isaac Berzin, Founder and Chief Technology Officer […]

New primary growth partnership programme sets sights on strong wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand’s strong wool sector—a partnership that could see an additional $335 million contribution towards New Zealand’s economy by 2025. “‘Wool Unleashed’, or W3, is a new seven-year, $22.1 million Primary Growth Partnership (PGP) programme led by NZM that will derive greater value from New Zealand’s strong wool,” says Justine Gilliland, Director Investment Programmes at the Ministry for Primary Industries. “This programme aims to deliver long-term economic benefits by securing a premium for New Zealand strong wool, increasing on-shore processing, and lifting the returns of the strong wool sector overall. “The PGP is at the forefront of boosting the value, productivity, profitability and sustainability of our primary industries, and W3 represents these same core values. This programme has the potential to deliver significant benefits and transformation for the strong wool industry to capture value through the eyes of the consumer and respond to the declining profitability and volume trends. “The PGP and those involved are committed to New Zealand’s long term, sustainable economic growth, with MPI and industry committing approximately $746 million in 21 PGP programmes over time.” MPI and NZM have signed a contract so the W3 programme can formally begin. NZM Chief Executive John Brakenridge says W3 will apply NZM’s experience with fine and mid-micron wool in establishing contracts with premium brand partners and developing new uses and markets to strong wool. “We’ve already had considerable success in these areas through the New Zealand Sheep Industry Transformation Project (NZSTX), our first PGP programme, which is focused on fine and mid-micron wool and is due to wrap-up in 2017. “NZSTX was about using product differentiation to generate better grower returns for fine wool fibre, meat […]

Provinces to prosper from pipfruit record apple crop forecast

New Zealand’s apple growing regions will reap the rewards of a record $700 million export apple crop forecast for 2016. Pipfruit New Zealand chief executive Alan Pollard, said with final crop estimates now in, the industry is expecting to produce 19.5 million export cartons for 2016 which is up 5.5% on last year. Based on current market indicators, the industry is now forecasting export returns to top $700 million, compared to last season’s bumper $630 million season. “New Zealand’s apple industry is entering an extremely exciting time capturing significant growth, investment and profitability. “It’s great news for our apple growing regions, injecting millions directly back into the local economies of Hawke’s Bay, Nelson and Central Otago, Gisborne, Waikato, Wairarapa and South Canterbury. “Across the regions we are creating more jobs, training and career opportunities to support the growth in the pipfruit industry. “We are seeing increased business for the horticultural service sector and greater economic activity and development in packhouses, cool storage, transport logistics and freight,” he said. “2016 is likely to be the third back to back record export season for apples, and firmly cements New Zealand’s apple industry’s No 1 ranking in the world for international competiveness. “We are now well on track to achieving our $1billion export earnings goal earlier than our 2022 target,” Mr Pollard said. “The significant growth in new plantings has young trees now coming into production which has broken the off-season cycle that was expected for the coming season. “Even after Nelson experienced significant hail losses for some growers, the region is forecast to be only down slightly (6.6%) on last year, which is a very positive outcome,” Mr Pollard said. Pipfruit New Zealand chairman Nadine Tunley said pipfruit’s ongoing record performance is extremely rewarding and recognises the hard yards, commitment and achievements of […]

Primary ITO team up with tutors in the South

The training organisation for the primary industries, Primary ITO, has secured the services of seven tutors to deliver their off job classes in Otago and Southland following the liquidation of training provider Agribusiness Training Limited (ABT) late last year. ABT delivered the ITO’s off job classes for Primary ITO agricultural training programmes in the region. However, in December it was announced ABT was in liquidation and the business is no longer operating. “The closure of ABT presented a challenging situation for us,” explains Primary ITO Otago and Southland Regional Manager, Andrew Shepherd. “However, we’ve taken the opportunity to contract the tutors directly as we believe this will enhance the already successful working relationship we’ve shared with them in the past. We know they’re committed to quality delivery, and the decision has the support of both local industry and our customers. Primary industry training in the region will continue to be of the highest possible quality. We’re back to business as usual.” “I know all the tutors are really excited to get started,” Andrew says. “Securing tutors in Otago and Southland forms an integral part of our launch into Primary ITO’s new programme delivery which will better meet client needs,” says Alister Shennan, Primary ITO GM Field Operations. In November, Primary ITO launched brand new training programmes for the agriculture sector. This was the first launch of the new programmes, which will be filtering out across all Primary ITO sectors – horticulture, sports turf, equine, seafood and food processing – over the next two years. “The new programmes aim to ‘work the way you work’ and are more holistic and applied. This means there will be more learning in the workplace, and less time spent in the classroom. Our new programmes are designed with industry to ensure our learners leave with […]

Kiwifruit industry to benefit from new strategic alliance

New corporate shareholders for Opotiki Packing and Coolstorage Limited (OPAC) provide the company with a strategic advantage in the growing Eastern Bay of Plenty kiwifruit industry. Te Tumu Paeroa – the new Māori Trustee, and Quayside Holdings Limited (Quayside) – the investment arm of the Bay of Plenty Regional Council, will each own 10.1% of OPAC following agreement at a shareholders meeting yesterday. The investment by each is part of an OPAC over-subscribed equity capital raising which totalled $4.85 million. The combined resources of Te Tumu Paeroa, Quayside, and OPAC will work well together to encourage economic development in the region and create opportunities for landowners and their whānau. Te Tumu Paeroa Chief Executive Jamie Tuuta said his organisation provided trustee services to owners of about 5,000 hectares of land in the Eastern Bay of Plenty, including several blocks with successful kiwifruit orchards. “We want to convert other land into high value and high performing kiwifruit ventures. Being part of the wider supply chain provides better opportunities to support that,” Mr Tuuta said. “We value the expertise that OPAC has in orchard development and management and are interested in working with them to provide further opportunities for land development in the region and for young people to be part of this industry,” he said. Quayside Chief Executive Scott Hamilton said the investment in OPAC provides both positive long-term commercial returns as well as strong regional benefits. “The Regional Growth Study Economic Action Plan identifies horticulture, particularly kiwifruit, as a significant growth opportunity for the Eastern Bay of Plenty. We believe that tangible benefits in this regard can be achieved through working collaboratively with both iwi and industry through our investment in OPAC” he said. Approximately 80% of kiwifruit produced in New Zealand comes from the Bay of Plenty. Zespri forecasts […]

Strong outlook for primary sector exports

The Ministry for Primary Industries expect meat and wool, horticulture and forestry export revenues will support New Zealand’s primary sector export growth to 2017, and help offset the recent year’s fall in the dairy sector. The signs across the primary sector are encouraging with New Zealand’s primary sector export revenue expected to increase to $37.6 billion in the year ending June 2016, up $1.9 billion from the year ended June 2015, according to the Ministry for Primary Industries updated Situation and Outlook for Primary Industries (SOPI). The December update incorporates changes to export volumes and currency movements from MPI’s previous June 2015 SOPI publication. The meat and wool sector is expected to continue its strong growth, with a forecast revenue increase of $910 million to June 2016 (or 10% from June 2015 actual figures) due to strong demand for beef exports from the United States. New Zealand will meet its allowable beef export quota to the USA this season for the first time since 2004. Chinese demand for wool also remains strong. Milk production is expected to be down 7 per cent this season compared to last, due to current dairy prices. However, prices are expected to rebound by late 2016, early 2017, as current dairy stocks are worked through and demand levels increase. The forestry sector is forecast to grow $613 million, even though Chinese demand for logs is reduced due to a continuing slowdown in the Chinese construction sector. MPI expects an increase in exported timber volumes to help offset this reduction in log exports. The seafood sector will be supported by favourable climatic conditions and the opening of two new salmon farms which will contribute to an expected $200 million export revenue increase in this area. Pipfruit and wine revenues continue to grow as kiwifruit yields reach […]

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