Category Archives: On Farm

On-farm matters, including meat producers, farmers, livestock, production, methods, statistics.

NZ farmer confidence plummets

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Federated Farmers has found that farmer confidence has plummetted in its latest Farm Confidence Survey.

In January, the mid-way point for the 2011/2012 season, farmer confidence in their profitability was strong. The 2011/2012 season was probably one of the best in recent times for meat, wool and dairy and would be difficult to top, says Federated Farmers‘ president Bruce Wills. However, this has gone fully into reverse gear with most farmers now expecting farm profitability will worsen over the coming year, he says.

“The past few months have seen large falls in commodity prices, with the June 2012 ANZ World Commodity Price Index down 12.3 percent from January. The exchange rate has not fallen to the same extent so has eaten into farmgate returns.”

The $64,000 question for all farmers at the start of the 2012/2013 season is whether prices will fall further. “We are all keeping a wary eye on the global economy and, frankly, we don’t like what we are seeing,” says Wills. “That New Zealand is ‘less bad’ when compared to Europe and North America, provides cold comfort when our dollar is kept artificially high because of it.”

The survey showed farmers continue to believe that prudent fiscal policy should be the Government’s highest priority – which is reducing government spending, balancing the books and reducing government debt.

Some headline results from the survey are:

  • A net 38.7 percent of respondents expect general economic conditions to worsen over the next 12 months.
  • A net 30.4 percent of respondents expect to increase production over the next 12 months (down from a net 47.7 percent in January).
  • A net 13 percent of respondents found it harder to find skilled and motivated staff (up 1.8 points from January).
  • Respondents’ biggest single concern is the level of commodity prices and/or farmgate prices, cited by 20.2 percent of respondents.

In the news this week (2) …

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There was plenty going on at the Red Meat Sector Conference in Queenstown this week, but there were also a few other things appearing in the press. 

China eyes up top-end lamb cuts, writes Tim Cronshaw, in an article about Alliance Group sensing growing interest from its Chinese customers in some of the higher value cuts, rather than the lamb flaps traditionally used for hot pot dishes.

B+LNZ Ltd held it’s ‘Farming on the Edge of Science’ Day at Massey University on 11 July.  Dominion Post farming editor, Jon Morgan, was in attendance, alongside the farming participants. His report (Science day teaches farmers new tricks, 19 July) makes good reading and shows how farmers were shown the latest in pastures and forages, management and new technology and animal production in a series of three workshops (this is not available online as yet).

 

‘Best in Season’ venison

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Firstlight Foods tell us through their excellent blog that it was their turn to visit their First Venison UK counterparts in the ‘Best in Season’ fresh venison partnership with Waitrose. First Venison UK is Waitrose’s (recently re-named…) UK venison producer group. Firstlight Venison and First Venison UK together supply Waitrose with ‘Best in Season’ fresh venison.

 

Livestock tracing scheme live

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David Carter, NZ Primary Industries MinisterIt’s happened at last. Today’s the day when New Zealand’s new National Animal Identification and Tracing (NAIT) scheme goes live, which will be welcome news for meat exporters.

The new National Animal Identification and Tracing (NAIT) Act, which comes into effect today, sets out the legal framework for the collection of information on livestock, their location and movement history throughout their lifetime. It also outlines the governance arrangement and powers for the NAIT organisation.

The scheme is mandatory for cattle from 1 July 2012 and for deer on 1 March 2013.

Under the NAIT scheme, cattle and deer are tagged with an electronic NAIT-approved RFID ear tag and the NAIT database stores information about each animal’s individual RFID number, its location and the contact details of the person in charge of the animal.

Announcing the news, Primary Industries Minister David Carter says: “NAIT is an important partnership between industry and the Crown which began eight years ago in recognition of the growing need for better animal identification and tracing systems.”

The Minister is delighted that over 30,000 producers and their properties are already registered on the database, which he says is a significant step in protecting New Zealand’s farmers in the international marketplace.

“Lifetime animal traceability is an asset that New Zealand can leverage as part of its international reputation for producing food to the highest standards. It is also an opportunity for farmers to increase productivity by identifying superior animals.”

In the case of a biosecurity outbreak affecting livestock, NAIT will enable a quick and efficient response reducing the impact on the agriculture sector and the entire NZ economy.

Winner 2012 Deer Industry Photo Award

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Winner of this year’s Deer Industry Photo Award is this superb shot ‘Fighting Stags’ taken by Maree Hogg-MacDonald of Bay of Plenty.

Judges commented on the outstanding technical quality, composition and drama and also liked the way the personality of the subjects shone through.

You can read all about the competition – and all of the deer industry news from the recent Deer Industry Conference in Wanaka – in the latest edition of Deer Industry News (54, pdf 2.3 MB).

Congratulations to the Smiths

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Congratulations go to Otago sheep and beef farmers Blair and Jane Smith for winning the national title in the 2012 Ballance Farm Environmental Awards earlier this week.

The Smiths were awarded the Gordon Stephenson Trophy, having been chosen from nine regional supreme winners.

The award is sponsored by Beef and Lamb NZ Ltd (B+LNZ) because of its focus on showcasing farmers working sustainably and caring for the environment, says B+LNZ chief executive Scott Champion.

“This is the second year in a row that sheep and beef farmers have won the national trophy – Grant and Bernie Weller of Southland won it last year and undertook a B+LNZ-supported visit to Europe where they met industry representatives in key markets and had the opportunity to share their farming practices.

“We will be working with Blair and Jane Smith in the months ahead to ensure their great story of farming in an environmentally, economically and socially sustainable way is heard both within and beyond the sector,” says Champion.

Read more about the Smiths and their award here.

New blueprint for sustainable beef production

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A new blueprint that potentially could be used for sustainable beef production in New Zealand has recently been brought into reality in Brazil and is being trialled in tropical northern Australia. However, its usefulness in temperate zones as a sole certification stamp is being questioned by one sustainability expert.

A group of four cattle ranches in Brazil, Fazenda São Marcelo Ltda, has just been announced as the first to earn Rainforest Alliance certification under a new standard – Standard for Sustainable Cattle Production Systems – developed and first published in July 2010 by the Sustainable Agriculture Network (SAN).

The ranches all met a rigorous set of standards that promote the humane treatment of livestock, the conservation of natural resources and the rights and well-being of workers. The standards were developed by SAN in response to the vast destruction of rainforest that results from cattle farming. IMAFLORA – the SAN representative in Brazil – carried out the certification.

According to Amaldo Eljinsk, chief executive of Grupo JD which manages the enterprise, the standards support the company’s values and management approach, helping it add value to its products, stay ahead of trends and attract buyers.

IMAFLORA is promoting the cattle certification programme in Brazil through its work with other local non-governmental organisations (NGOs, including Amigos da Terra), government agencies and international NGOs (including the National Wildlife Federation).

The current standard covers a summary of the principle of an integrated cattle management system, sustainable range and pasture management, animal welfare, reducing the carbon footprint and additional environmental requirements.

Input from sustainable standards expert Kevin O’Grady of Pinnacle Consulting, in the early stages of the standard, enabled the change of rules to allow the use of natural hormone replacement and de-horning. Since that time, O’Grady, who previously worked in the New Zealand meat industry, has been involved with the development of the standard and its trials in Northern Australia. He has been looking at the feasibility of extending it into temperate regions such as other parts of Australia and New Zealand.

“The way Rainforest Alliance works is that specific clients, such as McDonald’s in the specific case of South America, adopt the standard and suppliers then have to follow it,” he explains.

However, it would take a lot to adapt the standard for temperate zones and some of the issues for tropical farming , like tree cover and protecting livestock from predators, are not relevant, he says.

O’Grady also questions the advantage of this sort of standard for the New Zealand meat industry. “Many customers’ suppliers and investors are looking to independent certification to mitigate reputational risk so it’s not just about meeting a certification requirement for a customer like MacDonald’s.”

Want to find out more? Contact Kevin O’Grady.

 

 

NZ export revenue expected to decline in 2012/2013

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New Zealand’s primary sector export revenue is expected to decline in 2012/13, as prices for commodities, such as New Zealand lamb, beef and venison, continue to come under pressure, according to a new report from the Ministry for Primary Industries (MPI).

Releasing its latest annual review of the sector, Situation and Outllook for Primary Industries 2012, MPI deputy director-general Paul Stocks noted that the prices for New Zealand’s primary industries are falling from relatively high levels but in general remain quite favourable. “Production this season has been generally good – even great for some – due to favourable climatic conditions.”

Summarising the sector, the review notes that meat and wool export revenues are expected to increase by 5.8%, to reach $7.2 billion, in the year ending 30 June 2012, owing to increased meat volumes and wool prices. Prices have been at high levels but now lamb schedule prices are falling back faster and further than the normal seasonal decline, says MPI. “This is because price-conscious consumers in Europe have shifted to less expensive meats. Some further falls are expected, but these should be modest because of lower stock numbers here and overseas.”

For beef, demand and schedule prices have held up better because of robust demand from Asian markets and falls in supply in the US and Australia.

Prices for venison have been falling since September 2011 and are forecast to bottom out in the first six months of 2012 and then rise slowly over the outlook period, reflecting decreasing supply from New Zealand and continuing demand.

The report shows that the meat sector has seen increased meat production this year as a result of favourable climate and pasture conditions.

Exchange rates continue to be of concern – and the greatest area of forecast uncertainty – says MPI.

A pdf copy of the report can be downloaded at the MPI’s website (Publications, News and Resources), where you can also order a hardcopy.

2012 Landcorp Agricultural Communicator of the Year

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Steve Wyn-Harris (left) receiving his award from Landcorp chairman, Bill Bayliss.

Congratulations to Steve Wyn-Harris, a Hawke’s Bay sheep and beef farmer and farming commentator, who has just been announced as the 2012 Landcorp Agricultural Communicator of the Year.

Wyn-Harris started his farming career in 1985, when he bought 180 hectares in Central Hawke’s Bay, adding several other blocks over the years, so he and his wife now have 350ha. The properties carry high performance breeding ewes, including a Coopworth sheep stud that uses the latest technology such as sire referencing, AI and gene identification. Bull beef makes up 40% of the stock carried and 15% of the property is planted in forestry and areas of amenity and native plantings are scattered over all the farms. He has won a number of farming awards over the years, most recently last year when the farm took out the East Coast Balance Farm Environment Supreme Award.

He took out this year’s award as a broadcaster with his own local radio show and a regular on the national Farming Show. He is also a longstanding columnist and has been contributing weekly columns for many years and currently appears in NZ Farmers’ Weekly.

The Award is administered by the NZ Guild of Agricultural Journalists and Communicators (NZGAJC) and recognises excellence in communicating agricultural issues, events or information. regarded as the premier award for agricultural communicators, it is also the most valuable prize on offer. Landcorp provides a prize of $2,500, which is part of a funding package of $7,500 in sponsorship for the Guild. The additional funding assists with administration costs, including the award dinner.

Guild President, Jon Morgan, said Steve is a worthy recipient of the award this year. His columns, comments, presentations at conferences cover an extensive range of topics, but his style remains the same, relaxed, whimsical and often humorous. “He is widely respected as an excellent farmer, but has that rare gift of communication that crosses all areas of rural life.”