Business

Following a record number of applications, FMG has this year offered an additional place on its Agriculture Scholarship programme – rewarding three outstanding school leavers. The recipients include; James Robertson from Ohaupo, Hannah Gibb from Feilding and Brianna Bonnar from Katikati. The three students were selected for their exceptional academic, extra-curricular and agricultural achievements.* “The talent amongst this year’s recipients is quite inspiring, with an impressive number of achievements already under their belts at such a young age,” says FMG’s General Manager HR and Marketing Andrea Brunner. “It’s incredibly encouraging to see such driven and capable students wanting to further their talents to support the primary sector and we feel privileged to be able to be part of that journey and help them succeed,” says Mrs Brunner. Given the record number of applications FMG received for its 2015 intake and in recognition of the high calibre of those applications, FMG took the step this year to offer three scholarships – up from the traditional two. Picture: Hannah Gibb The FMG Agriculture Scholarship programme was set up in 2005, and each year grants 2-3 students $4,000 towards their tuition fees per academic year of their agriculture-based degree at Massey, Lincoln or Waikato. “As a specialist rural business FMG wants to do what it can to help more young people understand the career options within the primary sector – an industry which brings in 60% of New Zealand’s income. Our scholarship programme is just one way we do this”. “We’re excited to have James, Brianna and Hannah on our programme and to support them as they continue to contribute to New Zealand’s agricultural landscape. We wish them every success for their studies,” says Mrs Brunner.

While it may not be what farmers want to hear, a Lincoln University expert says price volatility in the dairy industry may be the new normal. Farm Management and Agribusiness lecturer Bruce Greig says prices will fluctuate widely from year to year ‘’as we have seen’’. He says the milk price farmers in New Zealand receive is a result of the demand and supply conditions of milk in the international market. It is a commodity market which exhibits characteristic fluctuations. Dairy farmers may just have to get used to it and implement systems which can cope with these changes, Mr Greig says. A recent Federated Farmers’ survey found dairy price drops, which are down 46 per cent from their peak last February, had led to increased pessimism among farmers about the future. Many were worried about cash-flow, and would have to cut spending and increase debt for the first time for several years. Mr Greig said farmers needed to implement resilient systems which are sustainably profitable at high and low milk prices. “The traditional all grass New Zealand system might be better at low prices, but might also fail to capture the full benefit of high prices when they occur,” he said. He says farmers themselves play a key role. “Farmer capability is more a determinant of profitability rather than the system itself. All systems can be profitable under different conditions, and it is a question about how you manage the risks,” he says. ‘’Therefore your choice of farm system, and therefore cost of production, determines your farm sustainability.” He says the low payout this year is unfortunately accompanied by drought conditions which lowers production and can increase costs. As for farmers’ other concerns he said few can avoid debt. “In fact it makes sense to borrow capital when the […]

LIC has recorded a solid performance in the first half of the financial year. In the six months to 30 November 2014, the co-op achieved revenue of $159 million, 17.7% higher than the same period last year. Chairman Murray King said the half year result was better than expected, and driven by farmers choosing to continue to invest in solutions which improve their productivity and prosperity. “As their co-operative, we provide farmers with solutions that will add value on-farm and deliver a return on their investment. “While we do see a reduced spend in lower payout years, we find that farmers are willing to continue to invest in the solutions that will deliver a high return for their business.” King says the co-op experienced particularly high demand for its short gestation genetics. DNA parentage testing and information and automation technology systems also remain popular. A lower year on year net profit after tax result is forecast, as part of the expected impact of milk payout and the co-op’s ongoing investment into technology and infrastructure worth more than $20 million. The co-op has reviewed where it can reduce discretionary costs without impacting service to farmers, King said. As part of its growth strategy, the co-op has announced a number of new developments this financial year, including a joint venture in Brazil, partnerships with Figured and SCR, and the merger of subsidiary business DAL and Protrack. Summary, Half Year Result LIC revenue and other income for the six months to 30 November 2014 was $159 million, 17.7% ahead of the $135.2 million achieved during the same period in 2013. Net profit after tax for the half year was $29.7 million, up $2.7 million from the previous year reflecting the strong first half revenues across most product categories. LIC’s business, particularly artificial breeding […]