Featured

It was the call of the land that saw Dairy Women’s Network’s newest staff member pack up her family from living the city life and head back to the family’s 830-cow dairy farm. Melissa Sinton, who has just taken over the role of DWN regional convenor coordinator for the lower North Island, was working in pharmacy in Rotorua three years ago, when she was encouraged to come back to the family farm in Arohena, south east of Te Awamutu. “As a mum of three young boys, it was an opportunity that was too good to pass up. Moving back to the farm was definitely something I did for myself, but more so for my family,” she said. So leaving behind her job and her studies in conservation and biodiversity, Sinton and her three sons Trae (13), Kaine (10) and Quinn (9) moved to her parents Vaughan and Tracy Sinton’s property Kennavara Farms Ltd. where Melissa started as a farm assistant and has since met new partner Roger. “I’ve really loved being back home and on the farm. It has opened up my eyes and given me an appreciation and understanding of the kinds of challenges that farmers face today – there are a fair few more pressures than there were when I was growing up,” she said. “I’ve had the full experience of getting up to milk the cows in the morning, getting in late at night and trying to raise a family at the same time, but it’s been good.” Melissa’s children are fifth generation on the farm and at Arohena School where she is also the Board of Trustees chair. With her newfound occupation, it wasn’t long before Melissa heard about Dairy Women’s Network and decided that the organisation’s philosophy of inspiring and supporting women to succeed in […]

Applications for a place on FAR’s 2016 Graduate Programme close next week (Friday 31 July). This cropping industry programme, for agriculture, agricultural commerce and science graduates was launched a year ago with the aim of introducing graduates to FAR and to the New Zealand cropping industry. Successful applicants spend a year with FAR, working on research, extension and communication at research sites across New Zealand and Australia. The first two award winners, Hannah McCulloch from North Otago and Angus McKenzie from mid-Canterbury, have been with FAR for nine and five months respectively. The pair, who are both Lincoln University graduates, spoke at FAR’s Conference in Ashburton this week outlining their experiences to date of working in the field, developing research projects and helping to plan extension programmes. Both recommend the programme whole heartedly. FAR CEO Nick Pyke says the work programme for the graduates has been designed so that at the end of the 12 month period, they will have developed a strong knowledge of all facets of the New Zealand cropping industry, allowing them to make an informed choice about their preferred career pathway. Depending on opportunities available at the time, this may be with FAR or elsewhere in the cropping sector. Applications for the inaugural FAR Graduate Programme close on Friday 31 July. Further information and application forms can be found on the FAR website, or by contacting Mel Bond at FAR.

Competitors of Fonterra Cooperative Group, the country’s largest dairy processor, claim there’s still insufficient competition to deregulate the industry. In submissions to the Commerce Commission, which is undertaking a government-ordered review of the industry’s competitiveness, rival processors either want the status quo or the regulations tightened. Farmers lobby group, Federated Farmers, says the Dairy Industry Restructuring Act 2001(DIRA) will need to be amended if it’s retained long-term. Fonterra’s submission generally supports the process and methodology suggested in the commission’s consultation paper and says it will comment separately on substantive issues raised by the review. The cooperative said the commission should consider the full period since the DIRA came into effect rather than the most recent five years, and that it was particularly important to examine the entire “life cycle” of entry and growth of independent processors. Among the issues under investigation is whether the DIRA competition thresholds have been met. The current threshold frees Fonterra from its obligation to supply milk to smaller competitors once at least 20 percent of supply is taken by competitors in both the North and South Islands. Fonterra currently has an 86 percent share of the nation’s milk pool, down from 96 percent when it was set up in 2001. In its submission, Westland Milk Products said it had successfully attracted milk supply from dairy farm conversions but had been less successful in wooing existing Fonterra suppliers to switch. Only a quarter of its Canterbury shareholders are ex-Fonterra and it said Fonterra’s actions to secure supply are contrary “to the purpose and principles of the Act”. “We are concerned that actions employed by Fonterra in response to competition for milk supply at the farm gate demonstrate that Fonterra has used, and has the potential to continue to use, its position of dominance to restrict competition […]

There are good lessons to be drawn on from the global financial crisis (GFC) for dairy farmers in managing volatility and getting the most from their banking relationship, says Hayden Dillon, Head of Corporate Agribusiness and Capital Advisory for Crowe Horwath.  Major rural banks were expected to support their dairy clients despite many farm budgets indicating negative cash flow positions for the coming year, he said. And post-GFC, banks had undergone significant reforms and were now well-positioned in terms of access to capital.  “It’s critical to note that major rural lenders do not assess the viability of farms based on last year’s or next year’s pay-out,” said Mr Dillon. “Banks are acutely aware of the market they operate in, which will sometimes see their customers run cash deficits due to volatility.”  Because of that, the banks used averaging, known generically as a “sustainable year,” to assess a farmer’s ability to service and repay debt.  With that in mind, farmers should pay attention to three key themes to get the most from their banking relationship, said Mr Dillon. These were:   Understanding that their normalised costs are, and being able to justify those costs to their banker. Having accurate information on hand and a process to make decisions quickly and effectively when faced with major events, such as drought, flood, change in milk price, or in the cost of inputs. Understanding the potential ramifications of their banker making assumptions on the farmers’ behalf, as opposed to providing assistance and advice.  In good pay-out years farm costs invariably increased, but when things got tough, farmers were also good at tightening their belts, said Mr Dillon. “Unfortunately for those with leverage it’s not good enough to just say you will cut costs when talking to your bank.”  While banks would draw considerable comfort from […]