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Tourism reset would hurt agricultural exporters

The Government’s proposal to reduce future international tourism visitor numbers post-COVID to concentrate on higher spending visitors may solve one problem but create others. Research by Lincoln University’s Dr Rob Radics, Dr Muhammad Umar, and Associate Professor Anthony Brien, highlighted that most of our agricultural products delivered fresh to market are transported on passenger planes, and tourists contribute to the cost. The drop in tourism numbers could push up transport costs to the point some businesses do not export at all and are put out of business. Their work showed that before COVID-19 hit, there were 550 international flights into and out of New Zealand each week, which carried 80% of New Zealand’s overall export airfreight in their belly-holds, and that it was worth $10.8 billion in December 2019. Only 20% of New Zealand’s airfreight was carried by dedicated air cargo-only freighters. Before COVID-19, air freight was less than 1% of New Zealand’s total trade by volume, but about 16% in terms of dollar value. The report raised that the decision may show a lack of understanding of the inter-relatedness of industries. “What COVID-19 has highlighted is the not previously considered symbiotic relationship of some sectors of the New Zealand agriculture industry and tourism.” Transport costs have already gone up because of reduced flights, as In March 2020, COVID-19 bought tourism to a halt and reduced airfreight capacity. This resulted in an immediate increase in competition for freight space and the Government stepped in to fund additional dedicated airfreight cargo flights to ensure the export of perishable products. It initially funded 53 weekly flights to key export markets. By November 2020, airfreight flights (dedicated cargo and empty-of-passenger flights) had increased to 120 per week; however, export freight costs also increased as producers competed for space on flights. The top product […]

Delivering calm in the kitchen

Fonterra’s Foodservice business, Anchor Food Professionals (AFP), has reached a milestone to become a $3 billion NZD annual revenue business. Fonterra CEO Miles Hurrell says the success is down to the Co-op’s strong connection to customers who value our sustainably produced, high-quality, nutritious milk and innovative products. “It’s really pleasing to see this milestone be reached despite the impact of COVID-19 on restaurants and other out-of-home eating. Our people have worked hard to find new ways of working with customers and new product applications to suit the pandemic environment, and we can see this has been a success. “Foodservice is a high value channel for our farmers’ milk and a key part of our long-term strategy. This is why we’re aiming to increase our milk solids into Foodservice by approximately 50% by 2030 and grow our presence across further markets including Greater China, South East Asia and the USA. “To support our Co-op’s growth to 2030, we intend to invest about $1 billion in moving milk into higher value products and increase our R&D budget by 50%. These investments will enable further product innovation in the Foodservice channel, among other things, and help put us on track to meet our next Foodservice target of becoming a $5 billion annual revenue business,” says Mr Hurrell. Fonterra’s Director Global Foodservice Paul Harvey says Anchor Food Professionals chefs works alongside customers in their kitchens to match their needs with our Co-op’s dairy innovation expertise. “To offer solutions we need to know what the problem is, and in many cases the issues are in the kitchen, and that’s where we are spending much more time with our customers who want our help. “We now have 55 chefs around the world who go into kitchens like this where […]

FarmIQ acquires Farmax in strategic partnership with AgResearch

Two leading agricultural software providers will join forces to create a value proposition for New Zealand’s pastoral farmers. FarmIQ Systems and Crown Research Institute (CRI) AgResearch have formed a strategic partnership with the acquisition of Farmax – a decision support tool for farmers. AgResearch will become a shareholder in FarmIQ Systems and FarmIQ’s preferred provider of science and research going forward. CEO of FarmIQ, Will Noble, said the partnership was long overdue as both organisations have shared the same vision for the agriculture sector since its inception from the Primary Growth Partnership in 2010. “If we want to become the leading decision support platform of choice for all pastoral farmers in New Zealand, then having AgResearch as a shareholder and the Farmax product to our whanau, brings with it strong industry credibility and a vast amount of science to our software – it’s incredibly exciting for our farming customers and the industry as a whole”. The agricultural ‘science’ integrated within Farmax makes it unique and has helped deliver real impact to the sector estimated to be $1.1 billion in increased gross margin over the last decade alone. AgResearch Director of Technology and Digital Services Greg Rossiter said the decision was made as part of the CRI’s commitment to providing the agricultural industry with quality science and software-based decision support tools. Going forward FarmIQ will invest the capital and provide the infrastructure to take Farmax to the next level, which was not considered AgResearch’s core business. Mr Rossiter said “the partnership delivers our scientists opportunities to collaborate and strengthen relationships with key partners and FarmIQ shareholders”. Gavin McEwen, CEO of Farmax views the partnership as having plenty of benefits for Farmax’s own customers. “The business will continue to provide its standalone products and services to our valued customers. Our goal is to unlock tangible benefits to all by improving interoperability and integration between both applications […]

EECA building energy use picture in NZ food and beverage sector

The Energy Efficiency and Conservation Authority (EECA) is building a picture of energy use in the NZ Food and Beverage sector (not including dairy, meat and seafood). Importantly, the findings of this project will help EECA to design effective programmes to support energy efficiency and decarbonisation for the Food and Beverage sector. To participate in the study – a simple survey, which is due back by the end of October – should take 15-20 minutes and can be completed online at: https://www.surveymonkey.com/r/MTPVXPP

Door opens for thousands of dairy workers to become Kiwis

DairyNZ says the Government’s long-awaited decision to provide a pathway to residency is exciting news for thousands of eligible dairy farm workers. DairyNZ chief executive Dr Tim Mackle says the government announcement allows many valued international dairy workers to become residents and recognises their years of hard work on farms and positive contribution to the dairy sector. “We are genuinely delighted for these workers and their families. Many dairy workers can now plan and look forward to a future in New Zealand with their families,” says Dr Mackle. “Their contribution will assist the dairy sector to continue playing a key role in New Zealand’s economy.” For the past 18 months, DairyNZ and Federated Farmers have worked in close partnership to ensure the best possible outcome for migrant dairy workers and their employers. “We appreciate that the Government has acknowledged the pressure farmers are under, due to being short-staffed, and also recognise the critical role international workers play.” A number of dairy workers have had residency applications on hold since before Covid-19 affected New Zealand in early 2020. Many have been without their families, who are overseas. “We have a significant number of international dairy workers in New Zealand who have been here for many years. They play an essential role in our farm teams and enable dairy to continue its vital contribution to New Zealand’s economy,” said Dr Mackle. “Our country and our rural communities will benefit from these workers and their families formally becoming New Zealanders. Their children help keep our rural schools open and their partners bring skills to our rural regions at a time when many employers are struggling to find staff.” The announcement does come too late for some workers, as a number of migrants wanting to become […]

Synlait launches Swappa Bottle

Synlait Milk Limited (Synlait) has launched its first consumer foods product under its own brand – Synlait Swappa Bottle. Synlait Swappa Bottle is a 1.5 litre reusable, stainless steel bottle of homogenised milk exclusively sourced from Synlait’s highest performing farms when it comes to stewardship for the land, and care for people and animals. The Synlait Swappa Bottle concept is simple – drink, return, repeat: Drink – consumers purchase a Synlait Swappa Bottle and enjoy quality fresh milk. Return – consumers then return the empty Synlait Swappa Bottle and lid to the store. Repeat – helping Synlait to reduce waste and eliminating plastic packaging. Synlait Director Sustainability & Brand Hamish Reid commented: “In the things that we choose to eat and drink, we support the future we want to see. New Zealanders have been telling us for years that they are deeply concerned about plastic waste, but in milk, there haven’t been many options. Synlait Swappa Bottle is a step in the journey towards eliminating plastic waste. Each time we drink, return, repeat, we contribute to a better future.” Synlait Swappa Bottles are initially being launched in two South Island New World stores, with plans to widen distribution over time. Synlait has signalled its intention to move closer to the consumer for some time. Its acquisition of Dairyworks in 2019 was the start of this and adding a Synlait-branded product strengthens and complements its current business portfolio and expertise. Hamish commented: “There’s an opportunity for reusables to play a much bigger role in New Zealanders’ food and beverage future, as they are already in Europe and the USA. In launching Synlait Swappa Bottle – a refillable, stainless-steel bottle that can be reused time and time again – we’re hoping to trigger change.” The Synlait Swappa Bottle carries the B-Corp stamp […]

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Sustainability win-win as producer puts the squeeze on waste

A leading New Zealand food processing company committed to ongoing excellence in sustainability has become an early adopter of a sludge dewatering technology engineered to cost-efficiently reduce the environmental footprint of food, beverage, and wastewater treatment throughout Australasia. The international fruit processing facility in Hawkes Bay processes tens of thousands of tons of fruit for both local and export markets, using a compact and cost-efficient KDS multidisc roller system from CST Wastewater Solutions as part of their process. The low-energy KDS technology dewaters wet, sloppy screened waste from the processing of fruit such as such as apples and pears, reducing waste volumes by up to 90 per cent. It transforms the waste to a much drier product that is less messy, easier and hygienic to handle, and cleaner to transport for recycling to stockfeed for the rich agricultural region of Hawkes Bay. In addition to saving fossil fuel and other transport and disposal expenses – which can amount to hundreds of dollars a ton – the drier waste helps protect water tables and conforms with the strong environmental and pure food credentials of the processor. The fruit processor – located in an area famous for its fruit production – has previously won an export award in which the judges of which said they liked the level of engagement across the wider team in developing the company vision, and the continuous improvement and commitment to innovation was genuinely impressive. The factory was well laid out, effort that was put into health and safety stood out. CST Wastewater Solutions Managing Director Mike Bambridge said the durable stainless steel KDS technology was another step forward in the company’s cleaner/greener process enhancements and new state-of-the art facilities, which are designed to benefit the entire region and community of which the company is part. “In […]

Honing management skills while working on the farm

Farmers can now improve their decision-making skills without having to stop milking – they can just put in some earbuds. Lincoln University Honorary Associate Professor Peter Nuthall’s audiobook “The Intuitive Farmer” is written in an innovative novel-style. A managerial ability researcher, he tells the fictional story of group of farmers meeting to improve their intuitive decision-making skills. It is based on actual data collected from hundreds of farmers. Each chapter addresses a different issue affecting farmers, such as risk management, benchmarking, budgeting, and planning, negotiation skills, active listening, and farm ownership. By the end of the novel, the listener will have absorbed important farm management principles and practices through the activities and findings of the group. Dr Nuthall said improved intuitive skill requires farmers to constantly and objectively self-critique their decisions so that slowly, the appropriate approach becomes second nature as part of their kit of intuitive tools. The book is described as the first of its kind to be applied to agricultural management practices, providing a dependable source for farmers, agricultural and farm management students, and people involved in agricultural industries. An Amazon review described “The Intuitive Farmer” as an innovative and useful resource for farmers. “Having the author appear as a character in the book is a nice bonus, as it gives the reader a rare chance to get an insider’s view on the personal and professional life of a researcher,” the reviewer wrote. His next book in the farm management series is called “The Decisive Farmer” and will be published before Christmas this year by the Commonwealth Bureau of Information (CABI). Listen to a sample of the audio book on the Google Play app here https://play.google.com/store/audiobooks/details/Peter_L_Nuthall_The_Intuitive_Farmer?id=AQAAAEA8AW1BQM

Fonterra completes reset, announces annual results and long-term growth plan out to 2030

Annual Results Summary Total pay-out for 2020/21 season: $7.74 per kgMS Final 2020/21 Farmgate Milk Price: $7.54 per kgMS 2020/21 dividend: 20 cents per share, comprised of 5 cent interim dividend and 15 cent final dividend Reported Profit After Tax: $599 million, down $60 million* Normalised Profit After Tax: $588 million, up $190 million# Total Group normalised EBIT: $952 million, up $73 million# Net debt[1]: $3.8 billion, down $872 million Debt to EBITDA ratio: 2.7x improved from 3.3x Full year normalised earnings per share: 34 cents * 2020 financial year included the gain from the divestments of DFE Pharma and foodspring® # Normalised numbers reflect the underlying performance of the business. Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents, taking the total dividend for the year to 20 cents per share. The results come as Fonterra moves through its business reset and into a new phase of growing the value of its business. CEO Miles Hurrell says the last three years have been about resetting the business. “We’ve stuck to our strategy of maximising the value of our New Zealand milk, moved to a customer-led operating model and strengthened our balance sheet. “The results and total pay-out we’ve announced today show what we can achieve when we focus on quality execution and an aligned Co-op. “I want to thank our farmer owners and employees for their hard work and commitment over the last few years that has got us to this position. Together, we’ve shored up foundations and done this despite the challenges of operating in a COVID-19 world. “Although the higher milk price and tightening margins put pressure […]

Toilet train cows to combat climate change

Can we toilet train cattle? Would we want to? The answer to both of these questions is yes — and doing so could help us address issues of water contamination and climate change. Cattle urine is high in nitrogen, and this contributes to a range of environmental problems. When cows are kept mainly outdoors, as they are in New Zealand and Australia, the nitrogen from their urine breaks down in the soil. This produces two problematic substances: nitrate and nitrous oxide. Nitrate from urine patches leaches into lakes, rivers and aquifers (underground pools of water contained by rock) where it pollutes the water and contributes to the excessive growth of weeds and algae. Nitrous oxide is a long-lasting greenhouse gas which is 300 times more potent than carbon dioxide. It accounts for about 12% of New Zealand’s greenhouse gas emissions, and much of this comes from the agricultural sector. When cows are kept mainly in barns, as is the case in Europe and North America, another polluting gas — ammonia — is produced when the nitrogen from urine mixes with faeces on the barn floor. However, if some of the urine produced by cattle could be captured and treated, the nitrogen it contains could be diverted, and the environmental impacts reduced. But how might urine capture be achieved? We worked on this problem with collaborators from Germany’s Federal Research Institute for Animal Health and Research Institute for Farm Animal Biology. Our research is published today in the journal Current Biology. It forms part of our colleague Neele Dirksen’s PhD thesis. Toilet training (but without the nappies) In our research project, funded by the Volkswagen Foundation, we applied principles from behavioural psychology to train young cattle to urinate in a particular place — that is, to use the “toilet” Behavioural psychology tells us a behaviour is […]

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