Business

LIC and Lely enter R&D partnership in farm sensor technology

Livestock Improvement Corp, a farmer cooperative that sells bull semen and manages a dairy genetics database, has entered a research and development partnership with Dutch agricultural company Lely Group. As part of the deal, the Hamilton based company has acquired Lely Sensortec, the Dutch company’s Hamilton based development division, whose five staff design farm sensor technology to monitor animal health and production, for an undisclosed amount, the companies said in a joint statement. The deal will accelerate development of sensor technology used on farms and support wider global distribution of its inline milk sensors. “Integrated and reliable automation and information technology solutions have the potential to revolutionise farming worldwide and sensor technology is an essential component of this,” said LIC chief executive Wayne McNee. “The big data the systems can deliver, while a cow is being milked, can deliver big gains in productivity and profitability for a farming business.” LIC is targetting $1 billion in annual revenue by 2025, via acquisitions and joint ventures. Earlier this year, LIC entered into a deal with ‘cow intelligence company’ SCR Dairy to distribute its technology into new regions including Belarus, Israel, Russia and Turkey. Last December, LIC acquired a majority stake and exclusive supply to its Brazilian genetics distributor, where it is target growing demand for artificial insemination in the country’s expanding dairy sector, with annual production to surpass 38 billion litres by 2020. In February, LIC reported profit rose to $29.7 million in the six months ended Nov. 30, from $26.9 million a year earlier, as sales climbed 18 percent to $159 million, boosted by a record payout to farmers in the 2013/14 season. However, a drop in global dairy prices has led Fonterra Cooperative Group to halve its forecast payout to $4.70 per kilogram of milk solids. That drop combined with […]

RCNZ workshops being held in May

Rural Contractors New Zealand (RCNZ) will be on the road again this May updating its members on the latest changes in health and safety, transport and employment laws – as well as other topics – in a series of roadshows being held around the country during May. RCNZ chief executive Roger Parton says the roadshow presentation will cover off the proposed new Health & Safety legislation and regulations, the Safer Farms programme and Codes of Practice for using tractors and other self propelled agricultural vehicles and what these changes will mean for rural contractors. “The presentation will cover all of these areas and much more, giving attendees an understanding of what this legislation will mean for each agricultural contractor,” Mr Parton adds. “And, just as importantly, how will it affect directors of companies, sole traders, employees, volunteers and anyone who ‘works’ for them.” Before the events in Ashburton, Gore, Cambridge and Palmerston North, the agrichemical applicators’ division of RCNZ will hold a workshop led by industry spray guru Noel Blackwell. “By attending these workshops, registered chemical applicators will earn three professional development points towards renewing their certification,” Mr Parton explains. The roadshows will include: Updates on the new Health & Safety Legislation The Safer Farms programme Codes of Practice for using agricultural vehicles An update on the 2015 RCNZ Annual Conference; being held in Blenheim in June Four of the roadshows will be held in conjunction with the AGMs of the four zones that make up RCNZ. The venues and dates for each of the roadshows have been mailed out to members and are also up on the RCNZ website: www.ruralcontractors.org.nz . Each session starts at 7 pm and will be followed with light refreshments. “I look forward to seeing as many rural contractors at these roadshows as possible and […]

Forest & Bird urges Fed Farmers to unite

Forest & Bird is strongly urging Federated Farmers around New Zealand to get in behind their Waikato branch which has called for a debate on a moratorium for further dairy conversions. Forest & Bird’s Group Manager Campaigns and Advocacy, Kevin Hackwell, says it’s a milestone in conservation when a national farming body takes the initiative in actively managing pollution in our waterways by considering a halt to further intensification of dairying on an already stressed resource. Forest & Bird and Federated Farmers are both members of the Land and Water Forum (a group of more than 60 organisations and stakeholders) which first came together in 2009 to find an agreed way forward to manage water in New Zealand. The Land and Water Forum has recommended potential reform of New Zealand’s fresh water management, and one of the suggestions put forward by the forum was the use of moratoria on further land development in areas where the nutrient limit in waterways is approaching or “has already exceeded” set limits. “The stance taken by Waikato Federated farmers is sensible – all they’re asking is for some headroom to get the pollution limits down below the maximum limit before any more dairy conversions are allowed. They’re asking for a pause, to give the river and land time to catch its breath and recover.” Kevin Hackwell says what’s happening now in Waikato is symptomatic of what’s going on around the rest of the country – we’re about to exceed, or have already exceeded the limits for nitrogen in many of our rivers. Kevin Hackwell says Waikato is following the same path as regions such as Canterbury – an area which is under enormous pressure from irrigation for intensive dairying – and where there are disputes and disagreements over water quality and quantity issues. “New […]

NZ primary industry firms open Chinese marketing office

A group of New Zealand primary sector firms has opened a joint marketing office in Shanghai, completing a three year gestation to make life easier in breaking into the world’s second biggest economy. Primary Collaboration New Zealand officially opened its office in one of China’s major cities yesterday in what chairman Andy Borland hopes will give local firms a foothold in what’s seen as a complex market. “We’re looking for ‘how can we get closer to the customer’?” Borland told BusinessDesk. “We all suffer from a lack of connectivity.” The initiative was born out of a ‘boot camp’ at Stanford University three years ago where primary sector chief executives, New Zealand Trade & Enterprise boss Peter Chrisp, and former Agriculture Minister David Carter tried to find ways to come up with ways to double the sector’s exports. PCNZ’s members include fishing group Sealord, meat processor Silver Fern Farms, dairy firm Synlait Milk, vintner Villa Maria Estate, seafood company Kono and horticulture collaboration Pacific Pace. Borland said the entity will operate as a shared point of contact for distributors and provide research on the ground in China, reducing the cost pressures required by having an office on the ground. In the past when there’s been an issue in China, the member firms have had to rely on government agencies dealing with their distributors to let them know of their situation. “We’re now going to have people on the ground,” Borland said. The structure will allow new members to join the collaboration, but also let the founding partners exit if they choose to, Borland said. Economic Development Minister Steven Joyce oversaw the opening ceremony, describing the initiative as a “testament to New Zealand companies’ ability to think laterally to meet the size and scale of opportunity to do business in China.” New […]

IT-based agriculture a boon for farmers

With IT-based agriculture changing the way farming can be done, Lincoln University has developed a new programme to teach people the latest techniques. IT-based farming, known as precision agriculture, involves using technologies such as sensors to carry out soil or crop mapping. This allows farmers to use real-time data to place nutrients, fertilisers and chemicals with much more accuracy than would otherwise be possible. The University has recently begun offering a specialised second-year course in precision agriculture, currently the only course of its kind in the country. “This new IT world is more than just computerising existing farming,” says adjunct professor Dr Armin Werner, who runs the course and also works as the precision agriculture group manager at Lincoln Agritech Limited. “New approaches and tools are available to be used in all agricultural production systems, leading to important changes in the way farms are managed.” Dr Werner says precision agriculture improves profitability and benefits the environment, because water, nutrients and energy can be used exactly where needed and nowhere else, which enhances efficiency and reduces losses. Lincoln University’s precision agriculture course is part of a new Bachelor of Science (majoring in Agritech) programme. Department of Informatics and Enabling Technologies Head Dr Stuart Charters says the programme was established in 2013 to meet the growing demand for skilled staff who understand the demand of precision agriculture technologies. “The programme gives students the knowledge and skills they need to be involved with the next generation of precision agriculture technologies.” Dr Werner says precision agriculture has a bright future in New Zealand, due to the efficiency of our agricultural industry. “Having a high proportion of agricultural jobs in a highly-developed country is a unique combination. There’s a good chance New Zealand could be a forefront developer of new technologies in this area. This […]

Wine industry says increased MPI fees would threaten exports

The Ministry of Primary Industries’ proposal to impose higher costs on the wine industry poses a major threat to the sector and in particular its export business, says Wanaka-based Principal Alistair King from Crowe Horwath. The MPI has said the increased levies are necessary to recover the costs of its regulatory programmes, yet the wine industry already contributes $200 million annually in excise tax. “They are now seeking an additional $2.9 million from the industry to meet MPI regulatory costs,” said Mr King, who is chair of the Central Otago Pinot Noir Charitable Trust and a respected wine industry expert. Mr King said the MPI operated a user-pays regime with regard all agricultural and horticultural sectors. But unlike the other primary sectors, the wine industry uniquely also paid a product-specific excise tax, which had increased massively for the wine industry, he said. MPI was not asking whether it was fair for the industry to pay both the increased excise tax and nearly $3 million in user-pays tax. “Margins for the industry are very tight and further costs will reduce profitability further. The industry needs the government to support growth,” said Mr King. “Under its Business Growth Agenda, the government says it is committed to encouraging economic growth in the regions. Penalising winemakers with an additional cost burden flies in the face of that policy.” Submissions to the proposal closed late last month.

Red Meat Sector welcomes signing of Korea FTA

The recently signed Free Trade Agreement (FTA) with Korea will be a significant step towards reducing the overall amount of tariffs paid on New Zealand red meat exports, according to the Chairmen of Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA). Trade Minister Tim Groser signed this week the New Zealand Korea FTA with his Korean counterpart. “This deal is critical for New Zealand sheep and beef farmers and meat exporters, keeping us competitive in this key market,” said Beef + Lamb New Zealand Chairman James Parsons. The New Zealand sheep and beef sector is worth $8.5 billion, with close to 90% exported, on which we paid $318 million of tariffs in 2013. A significant proportion of those tariffs were paid in Korea ($52m) – where applied tariffs on our beef exports are 40%. Korea is New Zealand’s fourth-largest beef market by volume, taking nearly $125 million of beef exports last year. However, trade volumes have dropped significantly in recent years, partly due to competitors such as the United States, and more recently Australia and Canada, having a tariff advantage through their FTAs with Korea. “These negotiations were tough, and credit must go to our government negotiators and to Trade Minister Groser for the excellent job they did in getting this deal done” said MIA Chairman Bill Falconer. B+LNZ and MIA work together to improve access for sheep and beef products to overseas markets, including by providing in-depth analysis in support of the Government’s FTA negotiation efforts.

Managing risk for food manufacturers

Increasingly complex and rapidly changing patterns in global food consumption, manufacturing and retailing are creating a whole new range of problems in food safety, according to Lincoln University Senior Lecturer in Food Microbiology Dr Malik Hussain. With commercial reputations on the line, the situation has prompted him and his colleagues, Senior Lecturer Dr Sue Mason and Associate Professor in Toxicology Ravi Gooneratne, to organise a range of food safety short courses for industry professionals, with the first three courses commencing in April. The courses are run through the Department of Wine, Food and Molecular Biosciences, and will involve participation from industry experts from the likes of AgResearch and The Institute of Environmental Science and Research. “Food is becoming very complex, and even a simple meal cooked at home or foods bought from the supermarket can easily contain ingredients from several countries or continents. “This complexity, in what is also a highly competitive global industry, requires a sound understanding of what food safety means from ‘paddock to plate’. This is vital to protecting the health of consumers and the commercial reputation of food manufacturers,” says Dr Hussain. It’s a sentiment shared by Associate Professor Ravi Gooneratne, who notes how food safety is gaining global attention, mainly due to an increasing awareness of food poisoning incidents around the world. “Food safety education and training is crucial for food scientists and staff across the whole food industry. Every member of the food supply chain has a part to play in food safety. “The rapid and detrimental effects on a company or country’s reputation from food safety issues should be obvious now,” says Associate Professor Gooneratne. The industry courses in April include a basic two-day course in practical food microbiology, a one-day course in Hazard Analysis Critical Control Point (a globally recognised food safety […]

NZ farmer confidence rebounds

New Zealand farmer confidence rebounded in the first quarter of this year, led by improved optimism among dairy farmers. A net 13 percent of farmers were confident in the outlook for the agricultural economy in the first quarter, from a net 15 percent who were negative about the outlook in the fourth quarter of last year, according to Rabobank’s latest rural confidence survey. The total number of farmers expecting the rural economy to improve lifted to 36 percent from 23 percent in the previous survey while those expecting it to worsen fell to 23 percent from 38 percent, Rabobank said. The swing to a more positive outlook in the latest survey was led by dairy farmers, with 45 percent reporting a confident outlook in the coming 12 months, up from just 21 percent in the previous survey. Only 19 percent of dairy farmers expected conditions to worsen, down from 45 percent in the previous survey. The survey of about 450 farmers completed earlier this month was taken after prices had jumped 22 percent from low levels in the GlobalDairyTrade auction, but before the most recent auction where average prices fell 8.8 percent. “The upswing in dairy farmer sentiment was likely to have been driven by the expectation that global dairy commodity prices had hit the bottom of the current trough through December and January and were showing signs of improvement,” said Rabobank New Zealand chief executive Ben Russell. “Our view is that prices will remain challenged as the global dairy market looks to deliver the signal to restrain production growth,” Russell said. “That said, as we progress further into 2015, we expect to see a tightening in the market which will generate modest upward price pressure in the second half of the year.” Of all New Zealand farmers expecting the agricultural economy to […]

2015 Dairy Community Leadership Awards announced

Two women deemed to be dedicated and inspiring influences in their dairy communities have won the Dairy Community Leadership Award at the annual Dairy Women’s Network Conference in Invercargill. The Dairy Community Leadership Award is open to all Dairy Women’s Network members and recognises dairying women who make significant contributions in their local community, through leadership and support. The 2015 recipients of the award are Western Southland farmer Jo Sanford and Northern Southland mum Rachael Nicholson. The major prizes awarded were a leadership course sponsored by calf rearing specialists Milk Bar and an Agri One Sustainability Course sponsored by ASB. Sanford and her husband converted their Tuatapere, Western Southland sheep and beef farm to dairy in 2007, and now milk 800 cows. “Giving back to the community is very important to me and sharing my knowledge, skills and experience gives me huge personal satisfaction,” she says. “I was honoured to be named as a finalist for this award.” Nicholson and her husband Scott started out their farming career 50/50 sharemilking in Riversdale, Northern Southland. They milked on three different farms over seven seasons, growing their herd and building capital with the aim of purchasing their own farm, which they achieved in 2007 and converted in 2008. After having children, Nicholson joined numerous committees as well as Dairy Women’s Network where she became the Gore Regional Group convenor for four years; a role she handed over in 2014. The family have since sold their farm but remained living in the same community, which has freed Nicholson up to be involved in more community groups. She still has her AI tech certificate and leases dairy stock. There were four finalists up for this year’s title, including Te Aroha farmer Tania Earnshaw and Western Southland farmer Katrina Thomas. The selection panel for the […]

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