News Ticker

New primary growth partnership programme sets sights on strong wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand’s strong wool sector—a partnership that could see an additional $335 million contribution towards New Zealand’s economy by 2025. “‘Wool Unleashed’, or W3, is a new seven-year, $22.1 million Primary Growth Partnership (PGP) programme led by NZM that will derive greater value from New Zealand’s strong wool,” says Justine Gilliland, Director Investment Programmes at the Ministry for Primary Industries. “This programme aims to deliver long-term economic benefits by securing a premium for New Zealand strong wool, increasing on-shore processing, and lifting the returns of the strong wool sector overall. “The PGP is at the forefront of boosting the value, productivity, profitability and sustainability of our primary industries, and W3 represents these same core values. This programme has the potential to deliver significant benefits and transformation for the strong wool industry to capture value through the eyes of the consumer and respond to the declining profitability and volume trends. “The PGP and those involved are committed to New Zealand’s long term, sustainable economic growth, with MPI and industry committing approximately $746 million in 21 PGP programmes over time.” MPI and NZM have signed a contract so the W3 programme can formally begin. NZM Chief Executive John Brakenridge says W3 will apply NZM’s experience with fine and mid-micron wool in establishing contracts with premium brand partners and developing new uses and markets to strong wool. “We’ve already had considerable success in these areas through the New Zealand Sheep Industry Transformation Project (NZSTX), our first PGP programme, which is focused on fine and mid-micron wool and is due to wrap-up in 2017. “NZSTX was about using product differentiation to generate better grower returns for fine wool fibre, meat […]

Rethink needed over dairy farm planting incentives

The cost and benefits of planting trees to help mitigate environmental effects of dairy farming need to be shared by us all for it to succeed, a new study says. Evaluation of an agri-environmental program for developing woody green infrastructure within pastoral dairy landscapes: A New Zealand case study says Government incentive programs are ineffective in overcoming barriers to planting such as the higher cost and slow growth of native plants, and the perception of planting being of little direct benefit to farmers’ operations. Lead author, Lincoln University Landscape Ecology Senior Lecturer, Dr Wendy McWilliam, says the Government and the dairy industry need to work closely together to develop and maintain a landscape-scaled woody vegetation network on both private and public land. Such networks would build sustainability and resilience into New Zealand dairy farming and lead to a more equitable sharing of the benefits and costs of their, primarily, public ecosystem services. The study’s results show few farmers take advantage of Government incentive programs, largely because they don’t cover enough of the costs. Many farmers are increasing woody vegetation, particularly around waterways and wetlands, to provide public ecosystem services, such as water cleansing and nature conservation. However, many are also removing or replanting their shelterbelts and hedges. In addition, a significant number of farmers are not planting due to a perceived lack of sufficient private ecosystem services— the benefits the woody vegetation provides to farmers and their farm operations. The study states a targeted environmental stewardship scheme, including more Government funding, is required to overcome the “considerable barriers to the voluntary retention and restoration of woody vegetation.” The study found plantings are small, limited to unproductive areas, and many continue to be dominated by exotics and monocultures, even though natives, broadleaf, and mixed species plantings are preferred. Aesthetic services (or […]

Provinces to prosper from pipfruit record apple crop forecast

New Zealand’s apple growing regions will reap the rewards of a record $700 million export apple crop forecast for 2016. Pipfruit New Zealand chief executive Alan Pollard, said with final crop estimates now in, the industry is expecting to produce 19.5 million export cartons for 2016 which is up 5.5% on last year. Based on current market indicators, the industry is now forecasting export returns to top $700 million, compared to last season’s bumper $630 million season. “New Zealand’s apple industry is entering an extremely exciting time capturing significant growth, investment and profitability. “It’s great news for our apple growing regions, injecting millions directly back into the local economies of Hawke’s Bay, Nelson and Central Otago, Gisborne, Waikato, Wairarapa and South Canterbury. “Across the regions we are creating more jobs, training and career opportunities to support the growth in the pipfruit industry. “We are seeing increased business for the horticultural service sector and greater economic activity and development in packhouses, cool storage, transport logistics and freight,” he said. “2016 is likely to be the third back to back record export season for apples, and firmly cements New Zealand’s apple industry’s No 1 ranking in the world for international competiveness. “We are now well on track to achieving our $1billion export earnings goal earlier than our 2022 target,” Mr Pollard said. “The significant growth in new plantings has young trees now coming into production which has broken the off-season cycle that was expected for the coming season. “Even after Nelson experienced significant hail losses for some growers, the region is forecast to be only down slightly (6.6%) on last year, which is a very positive outcome,” Mr Pollard said. Pipfruit New Zealand chairman Nadine Tunley said pipfruit’s ongoing record performance is extremely rewarding and recognises the hard yards, commitment and achievements of […]

Primary ITO team up with tutors in the South

The training organisation for the primary industries, Primary ITO, has secured the services of seven tutors to deliver their off job classes in Otago and Southland following the liquidation of training provider Agribusiness Training Limited (ABT) late last year. ABT delivered the ITO’s off job classes for Primary ITO agricultural training programmes in the region. However, in December it was announced ABT was in liquidation and the business is no longer operating. “The closure of ABT presented a challenging situation for us,” explains Primary ITO Otago and Southland Regional Manager, Andrew Shepherd. “However, we’ve taken the opportunity to contract the tutors directly as we believe this will enhance the already successful working relationship we’ve shared with them in the past. We know they’re committed to quality delivery, and the decision has the support of both local industry and our customers. Primary industry training in the region will continue to be of the highest possible quality. We’re back to business as usual.” “I know all the tutors are really excited to get started,” Andrew says. “Securing tutors in Otago and Southland forms an integral part of our launch into Primary ITO’s new programme delivery which will better meet client needs,” says Alister Shennan, Primary ITO GM Field Operations. In November, Primary ITO launched brand new training programmes for the agriculture sector. This was the first launch of the new programmes, which will be filtering out across all Primary ITO sectors – horticulture, sports turf, equine, seafood and food processing – over the next two years. “The new programmes aim to ‘work the way you work’ and are more holistic and applied. This means there will be more learning in the workplace, and less time spent in the classroom. Our new programmes are designed with industry to ensure our learners leave with […]

Kiwifruit industry to benefit from new strategic alliance

New corporate shareholders for Opotiki Packing and Coolstorage Limited (OPAC) provide the company with a strategic advantage in the growing Eastern Bay of Plenty kiwifruit industry. Te Tumu Paeroa – the new Māori Trustee, and Quayside Holdings Limited (Quayside) – the investment arm of the Bay of Plenty Regional Council, will each own 10.1% of OPAC following agreement at a shareholders meeting yesterday. The investment by each is part of an OPAC over-subscribed equity capital raising which totalled $4.85 million. The combined resources of Te Tumu Paeroa, Quayside, and OPAC will work well together to encourage economic development in the region and create opportunities for landowners and their whānau. Te Tumu Paeroa Chief Executive Jamie Tuuta said his organisation provided trustee services to owners of about 5,000 hectares of land in the Eastern Bay of Plenty, including several blocks with successful kiwifruit orchards. “We want to convert other land into high value and high performing kiwifruit ventures. Being part of the wider supply chain provides better opportunities to support that,” Mr Tuuta said. “We value the expertise that OPAC has in orchard development and management and are interested in working with them to provide further opportunities for land development in the region and for young people to be part of this industry,” he said. Quayside Chief Executive Scott Hamilton said the investment in OPAC provides both positive long-term commercial returns as well as strong regional benefits. “The Regional Growth Study Economic Action Plan identifies horticulture, particularly kiwifruit, as a significant growth opportunity for the Eastern Bay of Plenty. We believe that tangible benefits in this regard can be achieved through working collaboratively with both iwi and industry through our investment in OPAC” he said. Approximately 80% of kiwifruit produced in New Zealand comes from the Bay of Plenty. Zespri forecasts […]

Research helps to curb unwanted pesticide spray drift

Chemical drift from pesticide sprays is an ongoing problem in New Zealand, says Lincoln Agritech crop protection scientist Rory Roten. “When pesticides are used on farms and in forests, the wind can carry droplets of the sprays far away from the targeted area, potentially causing severe damage to neighbouring crops and harming the environment,” Mr Roten says. “Spray drift has wreaked havoc on wine grapes and kiwifruit in several New Zealand orchards recently, causing several hundred thousand dollars worth of damage.” “Agrichemicals can cause severe damage to natural ecosystems as well, especially when they land in surface waters, as most aquatic species are very sensitive to these chemicals.” Other experts have also pointed out that spray drift exposes people and animals to harmful substances from pesticides. In an effort to address the issue, Lincoln Agritech’s Chemical Application, Research and Training group (CART) has conducted a six-year Government-funded research programme to find out more about pesticide spray drift movements and how to mitigate them. The project, funded by the Ministry of Business, Innovation and Employment (MBIE), involved a range of tasks, including measuring pesticide drift on typical New Zealand crops, as well as analysing the effectiveness of drift-reducing technologies and training people in how to use them. Project Co-ordinator Dr Scott Post says the Lincoln Agritech group worked with a number of experts over the course of the project. “We were lucky to co-ordinate such a high-quality research team,” he says. “We worked with scientists from SCION to model spray drift, with specialists from Plant Protection Chemistry in Rotorua to research how sprayed droplets land on leaves, and with scientists from the University of Otago to find out how pesticide vapour can drift from the applied area.” The team worked in various primary idustries such as forestry, horticulture and arable, dealing […]

Strong outlook for primary sector exports

The Ministry for Primary Industries expect meat and wool, horticulture and forestry export revenues will support New Zealand’s primary sector export growth to 2017, and help offset the recent year’s fall in the dairy sector. The signs across the primary sector are encouraging with New Zealand’s primary sector export revenue expected to increase to $37.6 billion in the year ending June 2016, up $1.9 billion from the year ended June 2015, according to the Ministry for Primary Industries updated Situation and Outlook for Primary Industries (SOPI). The December update incorporates changes to export volumes and currency movements from MPI’s previous June 2015 SOPI publication. The meat and wool sector is expected to continue its strong growth, with a forecast revenue increase of $910 million to June 2016 (or 10% from June 2015 actual figures) due to strong demand for beef exports from the United States. New Zealand will meet its allowable beef export quota to the USA this season for the first time since 2004. Chinese demand for wool also remains strong. Milk production is expected to be down 7 per cent this season compared to last, due to current dairy prices. However, prices are expected to rebound by late 2016, early 2017, as current dairy stocks are worked through and demand levels increase. The forestry sector is forecast to grow $613 million, even though Chinese demand for logs is reduced due to a continuing slowdown in the Chinese construction sector. MPI expects an increase in exported timber volumes to help offset this reduction in log exports. The seafood sector will be supported by favourable climatic conditions and the opening of two new salmon farms which will contribute to an expected $200 million export revenue increase in this area. Pipfruit and wine revenues continue to grow as kiwifruit yields reach […]

Efficiency and survival traits key to once-a-day herds

Once-a-day (OAD) dairy farming systems have been around for many years and have understandably increased in popularity in the last few years. The upshot of this has been an increase in demand for AB companies to undertake breeding programmes producing bulls with genetics tailored for OAD systems. CRV Ambreed’s genetic strategist Phil Beatson says this is nothing new to CRV Ambreed and the company has continued to market bulls with the attributes most suited to OAD farming. However, he says the specific requirements of the “OAD cow” and “OAD herd” are perhaps less understood. “It seems widely accepted that cows milked in OAD systems produce about 10% less milk solids per lactation than they would in traditional twice-a-day (TAD) regimes. On the other hand, they maintain better body condition and have better in-calf rates; they have fewer veterinary interventions; and less labour is required for the OAD system,” he says. “Compared to TAD cows, OAD cows are less likely to be culled as empty, but are more likely to be culled for high somatics or collapsed udders. Under OAD, high component – low volume cows tend to dry off earlier than desired. “The fact that OAD cows produce 10% less per lactation than under TAD farming in itself creates a problem which is likely to increase as environmental considerations receive more focus: without going into detail, the OAD cow producing 10% less per lactation is producing more methane per kilo of milk solids than her TAD contemporary.” But it’s not all bad for OAD. Beatson believes this is where the whole farm system needs to be considered. While the OAD cow might be lower producing, she is also likely to stay in the herd longer than the TAD cow, providing her udder and somatics are desirable. “The OAD herd with […]

COP21 highlights need for sustainable proteins

London – The world climate summit (COP21) has been generally hailed as a success, with countries making commitments to reduce greenhouse gases. However, questions remain on how the food industry will meet the challenges. The food industry is unique in that it is a cause and victim of climate change. It generates a quarter of all greenhouse gases, with over half from livestock production. Emissions from livestock farming are on par with those from energy and transport. Population growth and dietary changes have led to a substantial rise in meat and dairy consumption over the last two decades. Agriculture, or food production, is also adversely affected by climate change. Rising global temperatures are creating erratic weather conditions, poor harvests and fluctuating yields. Food insecurity is increasing in many parts of the world. Loss of agricultural land is leading to deforestation, further exacerbating climate change. Recognising the importance of agriculture, a number of initiatives were introduced at the Lima-Paris Action Agenda at COP21. The initiatives focus on four core areas: soils, food losses & waste, sustainable production methods, as well as livestock farming. The Live Beef Carbon initiative plans to reduce carbon emissions from beef production by 15% over 10 years in some European countries. Although a positive step, the initiative focuses on improved livestock rearing methods, and not consumption. As will be shown at the Sustainable Foods Summit (www.sustainablefoodssummit.com), the food industry needs to address consumption habits – as well as production methods – if it is to substantially reduce greenhouse emissions. Meat consumption is rising in developing countries as consumers become more affluent. The FAO predicts meat consumption to double by 2050 when the global population is projected to reach 9 billion. A shift towards sustainable proteins is deemed necessary if the food industry is to lower its environmental […]

Destruction of our soil more serious than climate change

An international soil scientist says restocking the world’s arable soil with carbon is more important than climate change. While world leaders, besotted by climate change, meet in Paris, Dr John Baker says improving soil health and feeding the world is more important. “Climate change, while serious, is not going to starve you but the rape of our soil over the last 1,000 years through traditional tillage methods, is already leading to reduced crop yields and will eventually be insufficient to feed everyone.” Sadly too many people around the world treat soil like dirt when it should be revered because “our lives depend on it” Dr Baker says. He believes that because soil isn’t sexy, not on our radar and is metaphorically beneath us, it’s taken for granted by many farmers and ignored by politicians and city dwellers. Dr Baker says alarming figures provided by the United National Food and Agriculture Organisation (FAO) and the UK Farmers Weekly suggest the quality of soil is rapidly diminishing. FAO predicts the world, on average, has 60 more years of growing crops left while the Farmers Weekly claims that only 100 harvests remain in the UK. This week the Institution of Agricultural Engineers (IAgrE), based in London, lamented that nearly 40 percent of soil in south west England is highly degraded and waterlogged due, in part, to poor land management and inert water runoff. Eighty percent of the world’s food comes from crops and Dr Baker says the symbiotic relationships between soil, soil biology and the wellbeing of terrestrial animals including humans is a complex but precious equilibrium that people ignore or destroy at their peril. Ironically climate change and soil health are closely related and can benefit each other Dr Baker, who has a MAgrSc in soil science and Ph.D in agricultural engineering […]

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