Archive for the ‘Dairy’ Category

World not yet falling apart

September 6, 2018

Much to a lot of people’s surprise, the global economy is resisting the dire predictions of many commentators, just as the New Zealand economy continues to perform much better than businesses are prepared to accept. But it is far from certain whether this just a question of timing or the genuine possibility the predictions are exaggerated. Speculation, based on suspicion and anecdote, appears to be an unreliable guide to what is actually happening, so, while planning for an uncertain future is essential, it would pay not to ignore present realities. (more…)

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China presents opportunity and complexity

August 2, 2018

Rabobank’s China expert and GM Food and Agribusiness across Australia and New Zealand, Tim Hunt, provided Red Meat Sector Conference attendees with an in depth analysis of the enormous opportunities that China offers agricultural exporters, as well as the complexities of doing business there. (more…)

Decision made, but important to find the cause

May 31, 2018

The Government decision to eradicate rather than contain Mp. Bovis has the merit of drawing a line under the first stage of the disease outbreak. There were three options under consideration: eradicate, manage or do nothing; the third was clearly not seriously considered, but there must have been a serious debate between the first two. In the end the eradication course of action was chosen because it gives ‘the best shot’ at eliminating the disease to the benefit of the New Zealand agricultural sector, particularly the dairy industry, and the economy. (more…)

Free trade trumps protectionism, we hope

March 22, 2018

It’s ironical the same week the CPTPP agreement was signed President Trump proudly announced new tariffs on steel and aluminium which threaten to undermine the World Trade Organisation’s function as the global regulator of international trade. The jury is still out on whether Trump can get the tariffs signed off by Congress and he has already created exemptions, at the time of writing for Australia, Canada and Mexico. But it’s an uneasy period, particularly for a country as dependent on trade for its economic survival as New Zealand, because we might well get caught in the crossfire from a trade war. (more…)

Dairy beef profitable for beef and dairy

July 20, 2017

For well over 20 years one of the largest challenges in the meat industry has been dairy farmers’ lack of recognition of the opportunity to make more money from their calves by selling them to calf rearers for beef production. There have always been calf rearers willing to stick their neck out and buy calves, but this was highly dependent on both beef and milk price. But for dairy farmers it was easier to select their replacement heifers and put the rest on the bobby calf truck, rather than find rearers to take the bull calves or keep them on the farm for up to three months. (more…)

Rural confidence trends remarkably similar across sectors

June 29, 2017

The latest Rabobank Rural Confidence Survey shows the highest level of confidence among all agricultural sectors since the survey started in 2003 which is proof of the remarkable success of New Zealand agriculture and commodity prices. At a time when our dollar is also stronger against almost all, if not all, currencies over the same period, this is a surprising fact that most people would say is at least counterintuitive if not downright impossible. (more…)

Steady progress with Primary Growth projects

June 14, 2017

It is eight years since the Primary Growth Partnership programme was announced by the then recently elected National Government. At the end of 2016 there were 20 projects under way and just two completed, but 30th June sees the completion of FarmIQ, the largest of the red meat sector programmes. This seems to be an appropriate point to evaluate the success of PGP, in particular the six meat and two wool programmes which have been allocated total Crown and industry funding of $342 million. (more…)

Meat exports sold to more than 100 countries

May 30, 2017

New Zealand’s meat exporters come in for a lot of criticism, either for selling too cheaply or for not adding value, and certainly because they can’t (or don’t) pay farmers enough for their livestock. This final criticism is presumably a direct result of the first two – the prosecution’s case argues if they sold product at a higher price or added more value, they would automatically be able to pay more for livestock. (more…)

British agricultural report sees NZ as model for the future

May 16, 2017

A recently published report entitled The Future is Another Country by British consulting firm, Ferguson Cardo, attempts to describe a positive picture of post Brexit Britain, using the example of New Zealand in the 1980s as proof of what is possible. The authors base their hypothesis on certain key events, including the removal of subsidies, dismantling the producer boards’ funding model and compulsory acquisition rights, and a refocus away from the UK towards Asia. (more…)

Climate change report indicates challenges for NZ agriculture

May 13, 2017

GLOBE-NZ, a group of 35 MPs from all the main parties, has released a report by UK firm Vivid Economics which lays out various scenarios for New Zealand to meet the target of zero emissions by 2050. Business New Zealand and the Sustainable Business Council have both welcomed the cross party initiative, saying it gives confidence there will be collective and coordinated action towards meeting the target. It will also help to achieve commitments under the 2030 Paris climate change agreement to reduce emissions to 20% below the 2005 level. (more…)