Business

Fledgling agri-food course whetting student appetites

A new multi-disciplinary degree course taking food production beyond the farm gate and onto the world stage is experiencing 150 per cent growth in new enrolment numbers in only the second year it has been offered at Lincoln University. Developed to meet the needs of an industry decrying a lack of graduates prepared for careers in the agri-food supply chain the Bachelor of Agribusiness and Food Marketing degree (B.AFM) has gone from 20 students in 2014 to 50 students this year. It is one of the success stories at Lincoln University’s Te Waihora campus which has seen good growth in new student enrolments in 2015, both for New Zealand and international students. Senior Agribusiness Management lecturer Nic Lees says the degree was a unique course in New Zealand “in that it is an integrated course that includes both commerce and science papers”. “The mix of business, food quality and safety, supply chain management and marketing is what differentiates the programme.” Mr Lees, who is the Director of Lincoln’s Agribusiness and Food Marketing programme says the degree was developed in conjunction with leading agri-food companies. “They have been saying that there is a lack of graduates prepared for careers in the agri-food supply chain beyond the farm gate. New Zealand has traditionally been good at producing food but there is a lack of expertise in marketing and value adding.” The degree has been endorsed by the Australian and New Zealand Produce Marketing Association and agri-food companies such as Zespri, Fonterra, Synlait Milk, ANZCO Foods, Silver Fern Farms and First Light Foods. Mr Lees says the degree equips students with a sound applied knowledge of core business concepts and the unique commercial considerations of the international agrifood industry. Students gain a contextual understanding of the global agribusiness and food marketing sectors. The […]

Rural Contractors ask: What about us?

Rural Contractors New Zealand is questioning why the Government has made recent changes to immigration rules to help Queenstown employers recruit much needed staff, but continues to ignore similar requests from the rural contracting sector. RCNZ President, Steve Levet agrees with the move made by Immigration Minister Michael Woodhouse for a new streamlined visa process – from now until June 2015 – to allow employers in Queenstown to be temporarily exempt from providing evidence of an attempt to recruit within New Zealand – except for roles that Work and Income has identified it may be able to fill. However, Mr Levet suggests a similar scheme is also badly needed in the rural contracting sector. “There is no doubt the tourism sector is an important and valuable part of New Zealand’s economy and the Government is right to make provisions for that sector,” he says. “However, we need similar provisions for the rural contracting sector as there is a gap between rural contractors’ needs for trained and experienced agricultural machinery operators, and unemployed New Zealanders who can do this work.” Mr Levet believes the rules around employing temporary, skilled people from overseas prepared to work for 6-8 months each year need to be simplified as do the regulations restricting people who have previously worked here in past seasons coming back to New Zealand to work. “Contracting is a seasonal business and one that uses sophisticated machinery that requires technical skill to operate productively,” he adds. “Part of this shortfall is met by bringing in skilled operators from overseas.” Mr Levet says despite many attempts made by RCNZ to advocate similar ideas for the rural contracting sector such as the recent tourism initiative, the Government and bureaucrats still fail to acknowledge or understand the issue. “A dire shortage of suitable agricultural machinery […]

FMG rewards three aspiring agriculturalists

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.

Farmer commits to educating his future work force

Waipu dairy farmer Graham Hargreaves lives by the adage if you find a job you love, you never have to go to work. It’s a philosophy he is keen to instill in local students embarking on a career in agriculture. Graham takes community responsibility and education seriously. He is the father of two teenage boys at Bream Bay College and the immediate past chairperson on the school’s Board of Trustees. Committed to the community and the future of agriculture, last year Graham took on Year 12 student William Benson as part of a Gateway placement that sees students able to earn credits towards Level 1, 2 and 3 NCEA through work experience and hands-on practical learning. “I’m a fifth generation farmer and I always wanted to be a farmer. I was fortunate to have that background. I’m all for exposing the next generation to the lifestyle, especially as there is demand for more educated and skilled workers at all levels across the primary industries.” “William lives up the road but is not on a farm. He approached me as he’d decided he wanted to go into dairy and needed real-life work experience for sector credits. In the past I’ve employed students through Ag ITO and Primary ITO and I’m a registered assessor. William worked weekends and I was able to train him up. He completed his credits, and is now a competent relief milker. “ NCEA credits are also linked to the Vocational Pathways. Primary Industries is one of the six pathways, which students like William can use to develop an individual education plan and make informed choices about their future. And William has done exactly that. His education pathway became clear and he is now enrolled at Telford in the Certificate of Agriculture with aspirations for a career in […]

Scales annual profit beats IPO forecast as apple exports drive horticulture earnings

Scales Corp, New Zealand’s biggest apple exporter, reported a 9.8 percent drop in annual profit, beating its offer document forecast, after better than expected apple volumes drove up earnings in its horticulture division. Net profit fell to $18.4 million, or 14.3 cents per share, in the calendar year 2014, from $20.4 million, or 16.8 cents, a year earlier, the Christchurch based company said in a statement. That beat the $15.9 million profit forecast in its June 2014 prospectus, a target the company had previously said it was on track to “slightly exceed”. Revenue slipped 3.2 percent to $263.3 million, and earnings before interest, tax, depreciation and amortisation before listing costs was 2.7 percent ahead of its offer document forecast at $39.8 million. The result highlights “the strength of Scales’ diversified agribusiness portfolio,” chairman Jon Mayson said. “The horticulture and food ingredients divisions materially exceeded their prospectus forecasts, with stronger than anticipated volumes and market prices.” In December, Scales affirmed its 2015 guidance for profit of $20.8 million and Ebitda of $41.2 million on strength in Asian and Middle Eastern markets, favourable currency movements, and cheaper shipping costs. Scales’ horticulture division today reported an 8.9 percent decline in revenue to $158.8 million while underlying Ebitda of $23.9 million was 6.2 percent higher than forecast. Apple volumes were 7.1 percent ahead of expectations. Its Mr Apple brand is expected to add 450,000 cartons of premium apples by 2018, which Scales hopes to sell into Asia and the Middle East. The company’s food ingredients unit reported a 2.7 percent decline in sales to $32.2 million, while lifting Ebitda 19 percent to $5.7 million on higher than expected volumes. Its storage and logistics segment increased external sales 2.8 percent to $66.8 percent, while earnings fell 11 percent to $12.3 million, which the company said […]

Fonterra sticks with $4.70 farmer payout

After plummeting by 50 per cent last year, dairy prices look to have turned the corner. Fonterra has stuck with its $4.70 per kg farmgate milk price forecast for the 2014/15 season and its forecast cash payout of $4.95 – $5.05 a kg. The cooperative, the world’s biggest divesified milk processor, said that although dairy commodity prices had gone up, the increase was not sufficient to raise the forecast milk price. The last five GlobalDairyTrade (GDT) auctions have shown price improvements after prices dropped by 50 per cent last year. “Since December, GDT prices for whole milk Powder have increased 45 per cent and skim milk powder prices have increased 13 per cent,” chairman Jon Wilson said in a statement. “There continues to be significant volatility in international commodity prices,” he said. “New Zealand volumes are down, with continued uncertainty in milk production due to climatic conditions in New Zealand with droughts in Canterbury, Marlborough, Central Otago and North Otago,” he said.

Dairy farmers can expect volatility in milk price

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 […]

No slowing in demand to buy Canterbury farms

Local and international interest in the New Zealand rural real estate market remains extremely strong, defying suggestions demand could soften in the face of the lower Fonterra payout to farmers. Shane O’Brien, national director of Colliers Rural & Agribusiness division, said buyers were taking the medium to long-term view of the dairy industry and were still keenly contesting quality land. “We’re still getting strong enquiry both from local buyers wanting to expand their land holdings as well as from international funds and private investors.” He said international funds wanted to invest in New Zealand farming as part of the global trend to secure food production for emerging Asian economies. “New Zealand has an excellent international reputation for food production, we have world class infrastructure to support on-going investment and we’re close to the burgeoning markets of Asia and India. After Denmark, we’re considered one of the safest economies in the world in which to conduct business.” Colliers Rural & Agribusiness had recently negotiated three substantial off market sales in Canterbury to local buyers. While the deals were confidential, O’Brien said prices were equal to levels achieved over the past two years, reflecting continued confidence in the dairy industry. Buyers were increasingly sophisticated in their requirements, seeking reliable and good quality irrigation along with detailed information on nutrient management status of any given property. O’Brien said Australia’s Free Trade Agreement with China, coupled with its strong government support for investment in the dairy industry in both land and infrastructure, had yet to impact on the New Zealand rural real estate market. “Australia is looking for around $10 billion worth of external investment in their dairy industry and has government support to enable this – they don’t have the same Overseas Investment Office regulations that New Zealand has and their new Free […]

Half year performance better than expected for farmer co-op

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 […]

Food Security Governance: Empowering Communities, Regulating Corporations

By Nora McKeon This book fills a gap in the literature by setting food security in the context of evolving global food governance. Today’s food system generates hunger alongside of food waste, burgeoning health problems, massive greenhouse gas emissions. Applying food system analysis to review how the international community has addressed food issues since WWII, this book proceeds to explain how actors link up in corporate global food chains and in the local food systems that feed most of the world’s population. It unpacks relevant paradigms – from productivism to food sovereignty – and highlights the significance of adopting a rights-based approach to solving food problems. The author describes how communities around the world are protecting their access to resources and building better ways of producing and accessing food, and discusses the reformed Committee on World Food Security, a uniquely inclusive global policy forum, and how it could be supportive of efforts from the base. The book concludes by identifying terrains on which work is needed to adapt the practice of the democratic public sphere and accountable governance to a global dimension and extend its authority to the world of markets and corporations. This book will be of interest to students of food security, global governance, development studies and critical security studies in general.

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