Covid-19

Fonterra revises its 2019/20 and 2020/21 forecast Farmgate Milk Price ranges

Fonterra Co-operative Group Limited today revised both its 2019/20 and 2020/21 forecast Farmgate Milk Price ranges. The 2019/20 forecast Farmgate Milk Price range has narrowed from $7.10 – $7.30 per kgMS to $7.10 – $7.20 per kgMS. The mid-point, off which farmers are paid, has reduced to $7.15 per kgMS, down from $7.20 per kgMS The 2020/21 forecast Farmgate Milk Price range has narrowed from $5.40 – $6.90 per kgMS to $5.90 – $6.90 per kgMS. The mid-point, off which farmers are paid, has increased to $6.40 per kgMS, up from $6.15 per kgMS Fonterra Chairman John Monaghan says the narrowing of the 2019/20 milk price toward the lower end of the previous range is the result of a strengthening New Zealand dollar versus the US dollar over the past two months. The Co-operative will announce the final 2019/20 Farmgate Milk Price as part of its Annual Result in September. Commenting on the 2020/21 forecast Farmgate Milk Price range, Mr Monaghan says the lift to the bottom end of the range was being predominantly driven by improved market conditions in China. “After an initial shock due to Covid-19, dairy consumption in China is recovering with more people spending on food. We’re seeing customers ramp up promotional activity as they look to catch up on the sales losses incurred over lockdown. “Elsewhere, the EU and US Governments’ support measures for farmers are holding up milk production and dairy commodity prices despite the disruption they have experienced so far from COVID-19. While we expect these support measures to end at some point, it is likely they will continue through the peak of the New Zealand season. “While there is still a high level of uncertainty in our global markets, we do see a lowering […]

$40 million to support NZ businesses a welcome relief

Minister for Economic Development Phil Twyford and Minister for Small Business Stuart announced a further $40 million will be invested in the Regional Business Partner programme (RBP) today. This is a welcome relief for businesses trying to plot a path back to a thriving business after the COVID-19 pandemic says the EMA Chief Executive Brett O’Riley. “Financial support via the wage subsidy and small loan scheme helped businesses stay afloat, but what is going to get them back to profitability long term is good advice and mentoring around changing the way they operate,” said Brett. The RBP offers eligible businesses help with HR, health and wellbeing, business continuity, cashflow and finance management, strategy and digital capability. In the announcement today a further $10 million of funding for tourism businesses will also be channeled through the RBP. “One of the sectors that was hit as far back as January by COVID-19 was tourism. They were feeling the effects of dwindling tourist numbers, the China tourist ban and accommodation, hospitality, tourism, and tourism related retail were all on the decline. “Six months later and with border closures still in place they are in desperate need of the type of support the RBP offers.” Brett said. The fund is open to registered New Zealand businesses with fewer than 100 full time equivalent employees and provides access to up to $5000 of expert advice and support. The RBP is a partnership between NZTE and Callaghan Innovation. Businesses looking to register should call the Business Helpline on 0800 500 362 in the North Island or 0800 505 096 in the South Island.

Milking the Planet

How Big Dairy is heating up the planet and hollowing rural communities IATP’s latest report, Milking the Planet: How Big Dairy is heating up the planet and hollowing rural communities, reveals that the total combined greenhouse gas (GHG) emissions of the world’s largest 13 dairy corporations rose by 11% in just two years (2015-2017). As the global dairy industry expands and scales up into new territories, dairying is disintegrating into larger operations controlled by a handful of big dairy processors. Simultaneously, Big Dairy’s GHG emissions are increasing, and indebtedness, farm loss and bankruptcies in rural communities are on the rise. The COVID-19 crisis has compounded the dairy crisis, further revealing the fragility of the concentrated system built by corporations. “The biggest dairy companies in the world have the same combined greenhouse gas emissions as the UK, the sixth biggest economy in the world, according to a new report,” wrote the Guardian’s Damian Carrington in the June 15 coverage of our report. “More than 90% of the corporate dairy industries’ emissions are produced by the cows themselves, mostly in the form of methane.” The corporations’ increase of 32.3 million tonnes of GHGs in 2017 equated to the pollution stemming from 6.9 million passenger cars driven in one year (13.6 billion litres or 3.6 billion gallons of gasoline). The combined 2017 emissions exceeded the emissions of carbon majors BHP and ConocoPhillips, two of the top 20 fossil fuel emitters. Increased market concentration through mergers and acquisitions has contributed to the emissions rise. The French dairy corporation Le Groupe Lactalis, for example, increased its emissions by 30%. The corporations’ combined milk intake went up by 8%. Despite the climate crisis, zero of the 13 processors have explicitly committed to a clear and absolute reduction of emissions from their dairy supply chain. These are […]

Increasing demand for Greek fruit and veg amid Covid-19

Spain and Italy experience low harvest due to unfavourable weather conditions Tridge, a global sourcing and market intelligence hub for food buyers and suppliers, has reported the latest market trends affecting the food and agriculture sector. This week the biggest news relates to the increasing demand for Greek produce. Greek fruit and vegetable exporters are experiencing prolific sales as the demand for healthier produce has increased due to the impacts of the Covid-19 outbreak. Since, Greece’s measures against the pandemic have been effective, Greek products are seen as safer in comparison to other produce producing countries. Low harvest seasons in Italy and Spain due to a combination of unfavourable weather conditions and labour shortages have also contributed to the rise in demand for Greek produce. Border closures in Spain and Italy have delayed seasonal workers returning to farms – an issue that has rippled across most of Europe. Hoshik Shin, founder and CEO at Tridge said: “The effects of Covid-19 have been felt around the world, and many buyers are seeking alternative suppliers to meet the consumer demand for safer and healthier products. Aside from the impacts of the pandemic, weather conditions can also significantly impact a harvest season, meaning that buyers need more options when sourcing suppliers. Using an online trading platform such as Tridge can open up more choices for both buyers and suppliers, which is especially important when trying to find quality products and good prices”.

The five ‘silver linings’ to Covid-19

-Dr Troy Coyle, HERA Director Our current state of play has created a massive disruption to business as usual – but are there any positives to come out from the Covid-19 pandemic? Covid-19 has dramatically impacted us all in many different ways. Of course, most discussions have been on the negatives of Covid-19, but here are five silver linings that we think may help build our resilience in the longer term. After all, it is those that take a negative and turn it into a positive that come out of situations for the better! So lets ensure that it is our NZ metals industry that is taking advantage! The significance of domestic manufacturing has come to the fore from Covid-19. We have had significant disruption to global supply chains. The expected market response is likely to be a shortening of supply chains and a strategy of securing supply chains. This undoubtedly favours local manufacturing. For a long time, manufacturing has not received the attention and support that it should have had – in terms of national security of supply chains and Government support. The PM’s specific mention of manufacturing in her announcement on 20 April indicates the sudden attention to manufacturing as a core requirement of Kiwi’s economic and human wellbeing. There is also likely to be a market change toward greater support for local manufacturing in consumer decision-making. Changes in consumer purchasing are also likely to support increased on-line purchasing. Both of these are, in turn, likely to lead to increased warehousing requirements and this will stimulate warehouse developments, with structural steel playing a role in via, for example, portal frame designs. There will necessarily be an increased focus on the upskilling of our workforce. Businesses were already struggling to attract and retain quality staff and many had gone offshore […]

Fieldays 2020 pioneering a digital future

The future of Fieldays is secure despite the ongoing developments of the COVID-19 virus. Event organisers, the New Zealand National Fieldays Society, are pioneering an entirely new experience of Fieldays that will ensure its longevity in an age of social isolation and measures to reduce the spread of coronavirus. Visitors will get a taste of the event via a virtual experience on digital platforms until the physical event is able to take place. Following the governmental announcement on Monday 16th of March, to cancel all large gatherings of over 500 people, the Society knew this was an opportunity to adapt the Fieldays event in an innovative way. The virtual experience promises to offer an entirely new spin on the event whilst retaining all it’s treasured parts. From Fieldays Future Focus talks to the beloved Fieldays Innovation programme, the technology will allow for an immersive experience from the comfort of one’s own home. “We understand the economic ramifications would be extensive if Fieldays was cancelled entirely hence why we’ve decided it’s a chance to be innovative in this time of global uncertainty. We’ll still be delivering a world class event on the world stage – albeit a digital version,” Society CEO Peter Nation says. “The event is treasured, not just to the agricultural industry but as Kiwis altogether. Many people save the date a year in advance. We know of people that have never missed a Fieldays! “The NZ agricultural industry is one of the most innovative and dynamic of its kind in the world. Crises are not new to the primary sector. We had M.Bovis a few years back, droughts, the GFC. These are all things farmers and communities have had to endure and ride through. Uncertainty has paved the way for innovation in times where there was no other […]

Pleasing that Moving Day can hit the road

DairyNZ and Federated Farmers are pleased to see certainty provided by the Government today, that Moving Day – or Moving Week as it will likely be – can proceed from June 1 for thousands of dairy farmers nationwide. Following the national COVID-19 lockdown, a Moving Day Working Group including DairyNZ, Federated Farmers, Fonterra and FMG formed to identify solutions for the safe movement of people, livestock, machinery and goods when the new dairy season begins (June 1), while dealing with the coronavirus pandemic. The groups urgently advocated to Government to provide guidance for dairy farmers nationwide. “We are pleased the certainty we sought has been provided and dairy farmers now have reassurance they can move to new farms for the new dairy season in a way that also keeps them and the public as safe as possible,” said DairyNZ chief executive, Dr Tim Mackle. “Now we have clarity, we will be supporting dairy farmers with the detail to ensure their moves are safe and undertaken within the guidelines, particularly staying within their ‘bubbles’. “Being able to move will reduce concerns around animal welfare, farmer wellbeing and economic impacts which had potential to arise from any delay to Moving Day.” Each year thousandsof dairy farmers, sharemilkers, contract milkers and employees move to new farms to commence new employment, and contract milking or sharemilking contracts. Even without COVID-19 restrictions this is a huge logistical exercise, often spanning many days to get animals, gear and people relocated in a safe and secure manner. “Moving Week is a key part of the life of the dairy sector. This is how we enable people to progress their careers and their businesses,” said Federated Farmers national dairy chair, Chris Lewis. “It might sound strange to our friends living in the city, that we all move our […]