Democracy, apathy or revolution

August 19, 2015

MIE has to be given credit for its persistence with its campaign to persuade Silver Fern Farms and Alliance to look seriously at the benefits of merging as opposed to continuing to beat their respective heads against the brick wall of competition. But the outcome depends on several planets aligning at the same time. Read the rest of this entry »

NZ and Australia likely to trigger beef quota

August 15, 2015

For the first time since 2004 New Zealand and Australian beef exporters look almost certain to run out of US beef quota before the end of the year. High kills in both countries have seen an excess of beef being processed, well ahead of the normal annual production trend. Read the rest of this entry »

Fonterra’s restructure more about poor strategy than milk price

August 6, 2015

When Fonterra was formed back in 2001, there was a great sense of optimism about the potential for a New Zealand dairy company to compete on a truly global scale. The industry’s infighting and parochialism would be a thing of the past and the clear intention was to use the greater efficiencies and scale to create a substantially better performing business model. Read the rest of this entry »

Silver Fern Farms forecasts positive result for the year

July 25, 2015

A note to shareholders last week updated the company’s position after 9 months and predicted a substantial improvement on last year. Gains have occurred across the board with sales up 8.6% or $150 million, debt $100 million lower and improved inventory turnover. Read the rest of this entry »

Efforts continue to get to the bottom of NAIT puzzle

July 15, 2015

The saga continues, as my Warkworth friend attempts to find out how NAIT intends to ensure correct reconciliation of livestock records, but as yet without a totally satisfactory answer. After further contact, NAIT’s acting Group Manager Sam McIvor replied with answers to the main points raised and I understand the conversation will continue, as both parties try to convince the other of their respective point of view. Read the rest of this entry »

Longer season and drought affect Silver Ferns’ banking headroom

July 3, 2015

Silver Fern Farms have been forced to take what CEO Dean Hamilton calls a prudent approach to livestock procurement. This is code for being hard up against the company’s banking facility, directly as a result of greater livestock availability. A longer season in the North Island and pressure from drought in North Canterbury are responsible for this situation. Read the rest of this entry »

Trade agreements are tricky animals

June 27, 2015

There’s a lot of activity going on with trade negotiations at the moment, but not much certainty about outcomes.

 

Ranging from the TPP, the grandfather of them all from New Zealand’s point of view, to the murky negotiations with the Gulf Cooperation Council, the only deal signed off this year is the long awaited FTA with South Korea. Read the rest of this entry »

Saudi sheep farming venture a dog’s breakfast

June 22, 2015

It’s hard to imagine what on earth the government was thinking when it agreed to buy off a Saudi Arabian businessman Hmood al-Ali al-Khalaf to the tune of $11 million because it hoped he would stop objecting to a Gulf States Free Trade Agreement. Read the rest of this entry »

Agribusiness Agenda poses challenges

June 13, 2015

KPMG’s Agribusiness Agenda for 2015 is a comprehensive analysis of the challenges faced by New Zealand agriculture in meeting the government’s target of doubling exports by 2025. In the light of dramatically falling dairy prices with little sign of recovery, what was always a big ask has suddenly become a whole lot harder. Read the rest of this entry »

Red meat prices forty years ago

May 29, 2015

We could be forgiven for thinking nothing has changed in the last forty years with regard to meat schedule setting, if not actual price levels. But an address to the Ruakura Farmers Conference in 1975 by then chairman of the New Zealand meat Producers Board, Charles Hilgendorff, gives an interesting perspective on the industry at that time. Read the rest of this entry »


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