ISSN No.1172­9481

© Copyright 2001 Inventas Media Ltd

Volume 01, No.27

July 11 - July 17, 2001

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| Agribusiness | | Trade | Livestock | Horticulture |

| Soil, Water, Land, Arable | Industry | | Forestry |

Agribusiness

Selling to the Rural Sector

A marketing conference aimed at the rural sector is another sign of the growing strength of NZ agriculture. The conference, being organised by the Institute for International Research in Auckland for early September, promises to give a true picture of the rural market and how to capture and keep rural customers. The organisers say about 15% of the population is considered "rural" and pastoral exports are expected to grow almost 30% to $12.1b in the year just ended. Each of 14,500 dairy farmers received a $70,000 lump-sum payout at the end of the 2000-01 year, and the overarching story is seen as one of growth, even though sectors, such as apples and wool, are in reverse. (NZ Herald)

GlobalCo Shareholders' Vote

Over 90 dairy farmers nationwide will be competing for 46 places on the first shareholders' council of the dairy mega-merger company, GlobalCo. Six of the farmers are women. Voting will be over 25 wards. The Manawatu ward has the most contestants, with nine farmers competing for two seats. Voting will close on August 3 and results announced on August 6. (Dominion)

Westland Sets Record Pay-out

Westland, one of NZ's small independent dairy companies, has broken the milk pay-out record with the announcement it will pay farmer suppliers $5.20 a kg of milk solids for the past season. The farmers had been expecting $5.10. Westland processes milk from the 375 dairy farmers on the West Coast of the South Island. It exports all of its products through the Dairy Board as milk protein concentrates and butter. Westland says good milk powder prices on the world market and a strong all-round performance from the company and its farmer suppliers is behind the result. (RNZ Rural Report)

Rural Areas Set the Pace

NZ's rural areas outpaced city centers in retail spending during May. Bank of NZ economists said the South Island jumped ahead with seasonally adjusted sales increasing 1.3%, while the North Island rose a moderate 0.2%. (Dominion)

More Jobs in Hawkes Bay

The expansion of the Hawkes Bay service industry, riding on the back of the rural recovery, is driving the region's job market. The latest ANZ Job Survey revealed a record 1154 positions were advertised in Hawkes Bay during June. That was 300, or 40.2%, higher than the same time last year. This was consistent with the Department of Work and Income placements for Napier, Hastings and Wairoa. In the year to June 30 the department placed 6181 people in work, 1493 more than the previous year. (HB Today)

Market Gardeners Ltd Expands

National fruit and vegetable wholesale distributor Market Gardeners Ltd, trading as MG Marketing, has acquired the Hamilton-based business activities of Central Produce Distributors Ltd for an undisclosed sum. The chief executive of MG, Tom Treacy, said the company would now offer a wider range of local and imported produce to the central North Island. (The Orchardist)

Development of Flaxseed Products

International agribusiness giant Archer Daniels Midland says it has agreed to produce and sell products developed from a complex fibre derived from flaxseed that could reduce the risks of diabetes, lupus and hardening of the arteries. The agreement with a research group in Canada gives ADM the right to produce and sell a flax lignin complex, or purified flax lignin, worldwide for use in pharmaceuticals, functional foods, animal feed and veterinary products, ADM said. (NZ Business Times)

Dispute Continues Over Wool Poll

Some Central Otago fine woolgrowers continue to dispute the accuracy of the recent Merino NZ poll, which supported the formation of a commercial joint venture company with Wrightson Wool. Grower Russell Emmerson, from Forest Range Station in the Lindis Pass, said because of restricted access to the votes, the independent scrutineer was unable to complete his work, leaving the integrity of the poll a mystery. (NZ Herald)

Fortex Payout Within Weeks

The affairs of meat company, Fortex, which collapsed in 1994, are close to resolution with payout of a settlement from auditor PriceWaterhouse likely within weeks. Distribution of the multi-million-dollar settlement agreed a year ago has been held up pending resolution of a dispute over entitlement between first and second-ranked creditors. (NZ Herald)

Rising Prices Hard for Butchers

Globalisation is not new to NZ consumers, but butchers fear it could be helping squeeze meat off people's menus. As the export prices of milk and meat rise, so does the domestic price, as butchers and processors compete with exporters for raw product. This has seen the retail price of meat increase 6.1% in the year to the end of March and dairy products by about a third. Add to that the seasonal influence of winter and higher costs to keep and feed farm animals, and fewer sheep available due to the influx of dairy cows. (Otago Daily Times)

Wine Company Share Offer

Fledgling Canterbury wine company Waipara Hills Estate is going public, offering 3 million shares at $1 a share, payable at 60c a share on application and 40c more by March 31 next year. Waipara Hills expects a $169,000 surplus by 2004. Turnover is picked to top $2m by 2004, doubling to $4.55m in 2008. (Christchurch Press)

Montana Directors Urge Caution

Independent directors of winemaker Montana Group recommend shareholders hold off selling in the $1b takeover battle between British spirits giant Allied Domecq and brewer Lion Nathan. Montana directors say shareholders should not respond to takeover offers from either Lion or Allied until they had received further statements, expected at the end of July. (Otago Daily Times)

Merino NZ Sells PAC

Merino NZ has sold its subsidiary NZ PAC Ltd to the NZ Wool Testing Authority. The NZ PAC system was designed to give growers feedback on individual fleeces. NZWTA chief executive Stephen Fookes says the company plans to independently apply the PAC system to a much wider section of the wool industry. (Country-wide)

Merger Terms Agreed

Merger terms have been agreed between Pyne Gould Guinness and Reid Farmers. Reid Farmers will issue 44m shares to Pyne Gould Guinness in consideration for all the shares in Pyne Gould. With its existing 44% stake in Reid Farmers, and these shares, Pyne Gould will hold 68.5% in the merged company, Pyne Gould Guinness Reid Farmers. (Dominion)

Trade

Lobby Group for Trade Liberalisation

Agricultural and other export interests are putting together a new lobby group to counter what they see as a growing campaign against trade liberalisation. It will be known as the Trade Liberalisation Network. Brian Lynch of the Meat Association, who heads the Network establishment committee, says a fresh attempt is being made to start a new round of world trade negotiations in November and there is a need to have a private sector following contributing to these debates. Up until now the trade liberalisation discussion has been left to two groups, either the Government or the parties that are opposed to the freeing up of trade. There has not been in NZ a standing body that could marshal the arguments in favour of further trade liberalisation, bringing together the positive in a credible form that will have meaning for a lay person. (RNZ Rural Report)

NZ Avoids Saudi Trade Obstacles

The NZ meat industry has managed to sidestep obstacles to its trade with Saudi Arabia stemming from fears over BSE and food-and-mouth in Europe. Saudi Arabia has taken a blanket approach to import regulations banning meat from animals that have been given hormonal growth promotants or animal protein in the feed and are demanding an assurance that countries exporting to Saudi Arabia have a Government-approved system in place that makes those assurances. However, NZ lamb meets that criteria and a declaration system that makes those assurances was under way. The Saudis had accepted that NZ was free of the European problems and this country's certification system has been accepted ahead of both Australia and the U.S. (RNZ Rural Report)

U.S. Lamb Tariff May Go

Australia is expecting the U.S. to lift its trade tariffs on Australian lamb ­ which also applies to NZ lamb ­ within two months. A deadline of July 1 passed with the tariffs still in place. (Evening Post)

Indonesia Lifts Fruit Restrictions

Indonesia has lifted a long-standing restriction on NZ's Kiwifruit and other fresh fruit imports. It no longer requires produce from NZ to undergo cold storage treatment. The trade negotiations Minister, Jim Sutton, says this will cut costs for NZ fruit exporters and brings Indonesia into line with other markets. NZ exported $400,000 worth of kiwifruit to Indonesia last year, making it the 13^th largest overseas market. (RNZ Rural Report)

Major Deal for Tauranga

Port of Tauranga, NZ's biggest export port, is to get even bigger in a deal with the world's largest container shipping line. Tauranga will soon become a major port of call for Maersk Sealand, which is to call regularly en route to North and Latin America. The NZ Dairy Board will be Maersk Sealand's main customer in the new service, but other products to be shipped would include meat. (BOP Times)

Korean Velvet Market Sluggish

The world's primary market for deer velvet, South Korea, is failing to fire because of a weak economy. It has also had to digest large volumes of illegally imported reindeer horn. The Game Industry Board's long-term velvet strategy is to reduce NZ's dependency on this one major market. Promotions in Korea are designed to maintain NZ's presence there, while the big dollars are being spent on developing markets elsewhere. The Board is also lobbying to have a special excise tax on velvet removed as this depresses demand for a product that is already very price-sensitive. (The Deer Farmer)

Joint Brand Strategy for Honey

Three organic honey producers have established a niche at the premium end of the UK and Ireland honey markets by joining forces and adopting a brand strategy that accentuates the untouched bush lands where their honey is produced. The three bio-gro certified North Island producers market their honey as part of the Wild Honey (NZ) export network. Sales to health food supermarkets and stores in the UK and Ireland have been building steadily in the past 12 months and the group are looking to diversify into the Canadian market. (Export News)

Aust. Wool Outlook Easier

Australian wool prices are expected to ease ahead of the July recess, industry analysts predict. This indicated the market's lack of depth, as it sensitive to reports of processor orders, particularly Chinese buying activity, woolbroker Wesfarmers Landmark said. (Otago Daily Times)

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Livestock

SI Feed Stocks Are Low

The feed shortage in the east of the South Island continues to get worse, forcing some sheep and beef farmers to shed stock. While there are big fears of drought continuing into spring and summer, good rainfall from now on would soon put those worries out of farmers' minds. However, the National Institute of Water and Atmosphere predicts dryer than normal conditions into spring. In many parts of Canterbury the soil is wet for 10cm to 15cm, but bone dry below that. The intense cold weather is also not helping stock, some already in poor condition. (Christchurch Press)

Stock Feed Going South

Over 3,000 bales of haylage will be carted south for fire and drought stricken Marlborough farmers. Waikato Federated Farmers and the Marlborough Drought Relief Committee are working to arrange the purchase and transport of bales from around the North Island and are now seeking sources of more quantities. (Rural News)

Hunting for BSE in Europe's Sheep

Scientists are still trying to find the answer to one of the puzzles relating to BSE or mad cow disease, and that is whether it has got into sheep. A recent international conference has reinforced earlier conclusions that there is no evidence of BSE in pigs or poultry, but there is still concern in Europe that the disease may have spread into sheep. However, the problem is proving it, and no case of BSE has yet been found in sheep. Throughout Europe scientists are looking for the evidence of BSE in sheep and the results so far have been negative, there is not enough evidence available yet to be confident that BSE is not present in European sheep. (RNZ Rural Report)

Rearable Calves Could Go

There are predictions that thousands of bull calves will be slaughtered instead of reared this year, because of the hike in bobby calf prices. If the other bobby calf processors follow Richmond's lead, the 20kg bobby calf price will have increased from $3.20/kg to $5.50/kg. (Country-wide)

Counting Sheep Goes Hi-tech

Sheep breeders who still use notebooks in the lambing paddock are to be offered a hand-held 'computer" for collecting their data. Julia Aspinall of Southland animal breeding and data processing company, Genetic Gains, said records of lambs born to specific sheep had to be transferred manually to recording sheets, then sent to a bureau where the information was downloaded to a computer and analysed. Ms Aspinall said her company planned to launch a new model of a hand-held logger this month for farmers to use in the coming lambing season. The new model is claimed to save processing time and reduce service cost to the client. (NZ Herald)

Grain Prices Hurt

The price of grain has forced Whitestone Poultry to stop raising their own chickens for the time being. Owner Harry Briggs said the factory would not be closing, but some of the 20 staff would be out of work while the processing arm shut down temporarily. He said recent drought conditions had pushed the price of feed up by more than 50%. The company would continue by buying in chickens from other producers. (Oamaru Mail)

Stock Becoming Traffic Hazard

The rising number of traffic accidents caused by stock escaping from paddocks in Southland is concerning police. There has been at least one accident a week in the past two months. The increasing rate of accidents involving cattle has been linked to the expansions of dairying in Southland. Dairy farm expansion in Southland in the past year have increased cattle numbers to 50,000 and Invercargill police are so concerned at the number of accidents occurring after dark that they are collating a data base to establish driver and farmer liabilities. The Southland District Council says farmers are not fencing their stock in properly and in some cases over-stocking for the amount of feed they can provide. (RNZ Rural Report)

Police Unable to Lay Charge

Police had no power to charge a West Plains farmer who ignored council policy and grazed stock on the roadside after dark because the policy had no teeth, Senior Sergeant Kerrin Price of Invercargill says. The lack of powers to lay a charge "came as a bombshell", he said. The Invercargill City Council roading policy states farmers cannot graze on the roadside after dark, but it does not carry a penalty. Neither the Local Government Act, Animal Welfare Act nor the Crimes Act covered the stock grazing violation, he said. (Southland Times)

NZ Herbal Medicine Exports

British horses, cows and sheep are to get a NZ-made natural-health remedy for their coughs and colds. A Western Bay of Plenty company is exporting echinacea plant, originally a traditional medicine used by the Plains Indians of North America. It is claimed to boost the immune system by stimulating white blood cells to fight bacteria, and can also be taken as a treatment for the common cold, flu and infections of the upper respiratory tract. NZ Vitalife of Papamoa, near Tauranga, says it was a natural progression to produce a treatment suitable for animals. (NZ Herald)

Cattle Tag Relief

The Animal Health Board's decision to exempt older cattle heading direct to the slaughter from the official ear tagging I.D. scheme has been welcomed by Federated Farmers and individual farmers who

warned the Board of the dangers of the new rules. They were concerned at the high risk of physical injury to farmers attempting to tag older animals. (Country-wide)

Possum Use Ideas Not Enough

New uses for the possum, such as using the meat for pet food or blending the fur with merino wool for high-fashion garments would help control the possum, but not enough to significantly check the population numbers. Landcare Research development manager, Ian Whitehouse, says ventures such as the new pet food, Possyum, were a help, but fertility controls would be a more effective longer-term control. Fertility control would mean poisoning could be reduced by about two-thirds, lessening the use of 1080 poison with its attendant environmental risks. (Dominion)

Hope for Reducing Methane

A Christchurch agricultural scientist believes he may have the answer to reducing NZ's biggest source of greenhouse gas emissions. Methane, produced mainly by sheep and cattle flatulence, makes up nearly half of the country's problem emissions. Microbiologist and soil scientist Tim Jenkins of Jenkins Biolabs, is testing a product, called Pro-Dairy, which he claims makes the digestive system of cows so efficient that they produce more milk, but also potentially release less methane. Pro-Dairy is a formula of fermented, broken-down probiotic bacteria and Jenkins Biolabs plans to commission AgResearch to test the reduction in methane production. (Christchurch Press)

An Axe for Minister for Racing?

Former Racing Industry Board chairman Garry Chittick has called for the Minister for Racing's position to be axed under the new Racing Bill. He also has concerns over the level of ministerial involvement being suggested by the Racing Bill now before Parliament. Speaking at the NZ Thoroughbred Breeders' Assn annual meeting, he said, however, he favoured the amalgamation of the RIB and the TAB, as proposed by the Bill. The new body is to become the NZ Racing Board. (Friday Flash 6/7/01)

Award for Veterinarian

A career dedicated to research into leptospirosis has earned Palmerston North vet Roger Marshall an honorary life membership of the NZ Veterinary Assn. Dr Marshall, 68, said he wanted to be a vet since he was about 10 and became interested in leptospirosis while working in Morrinsville. (Manawatu Evening Standard)

Honour for Mac Hanna

Retired south Waikato hill country sheep and beef farmer, Mac Hanna, has become the first non-scientist to be granted life membership of the NZ Society of Animal Production for distinguished service to the country's pastoral industries. (Rural News)

Horticulture

Enza's Debt Under Discussion

The pipfruit industry is settling back into a holding pattern as the various parties continue meeting to determine who is responsible for Enza's $54m debt, mainly from foreign exchange losses. Enza is continuing to have talks with the Ministry of Agriculture and Fisheries, meanwhile the regulatory body, the Apple and Pear Board, has yet to make a preliminary decision on whether Enza's forex contracts were a breach of the regulations which prevent the exporter from commercial dealings, other than marketing apples and pears. (RNZ Rural Report)

Royal Gala Exports Selling Well

The Royal Gala apple variety is reported to be doing well with export returns from large sized fruit having increased in the United States, Europe and some Asian countries. While there is plentiful supply of small Royal Gala from NZ's southern hemisphere trading rivals, there is a shortage of large-sized apples. Returns from smaller Royal Gala in Britain are also lifting. (RNZ Rural Report)

Foreign Exchange Policy Queried

A report last December by investment bankers Cameron & Co cast doubts on the success of the former Apple and Pear Marketing Board's foreign exchange policies. The bankers recommended Enza, which replaced the board following Government deregulation in April last year, withdraw from centralised foreign exchange management. It recommended Enza offer growers individual management programmes on an agency basis. Authors of the report saw little reason in combining foreign exchange management and marketing services. The matter has now come to a head with growers being levied $4.50 a carton on this year's apple crop to fund $54m in foreign exchange losses. (Otago Daily Times)

Grape Crop Will Sustain Exports

NZ's 2001 grape harvest will support continued export growth in the year ahead, despite a smaller than expected vintage, says the Wine Institute. The Institute estimates winemakers harvested 71.000 tonnes of grapes in 2001, down 9,100 tonnes on the previous year. The reduced crop comes despite a significant increase in the producing vineyard area in the past year. Institute chief executive, Phillip Gregan says the reduced harvest reflects cool weather during flowering in some areas, which led to an uneven fruit set in those regions. (Export News)

Record Grape Crop in Sight?

A minor shock may be in store for the nation's winemakers next year. If nature gives NZ an average grape harvest, our expanded vineyard area will produce a record crop 52% larger than this year. (The Independent)

Apple Price "Bloodbath" Forecast

NZ apple exporters face chaos in the industry deregulation promised later this year by Agricultural Minister, Jim Sutton, says Enza chairman, Tony Gibbs. Big importers of NZ apples were preparing to play off individual NZ exporters against one another and the situation had been made more difficult by grower unrest over Enza's claw back from their payout this season. He predicted that if this continued, there would be "an absolute bloodbath in prices next season". (Evening Post)

Kiwifruit Allergy Study

Concerned British medical specialists are investigating kiwifruit allergies, after a rise in reactions to the NZ export fruit. Marketers based in Europe, surprised by the study, are contacting the University of Southampton to see what promoted the matter. About 60% of kiwifruit exports by volume go to Europe, with the British market worth about $30m a year. (Otago Daily Times)

Good Start to Kiwifruit Season

The kiwifruit export season has started surprisingly well with global volumes sold the highest ever recorded at 12m trays, says Zespri International. That volume is 3.1m trays ahead of last year and the flow of Zespri Gold kiwifruit has yet to start. The Zespri chief executive, Tony Marks, said the fast start was just what was needed to overcome the negative impact of the previous season, coupled with the late start of the Zespri Gold crop. If the season could continue in this fashion he expected a lower fruit loss and lower discounting pressure at the end of the selling season. (Export News)

Frost Hits European Pipfruit

European pipfruit production has been severely hit by frost and hail and the reduced crop should help NZ exporters next season, Motueka-based consultant Frank Pons reports. Across the continent the crop may be down 15% in relation to average production over the past three years and fruit size is expected to be below normal. The important variety, Jonagold, which competes with the NZ Braeburn, is expected to be well down in volumes, he said. (The Orchardist)

Olive Oil Unadulterated

The national olive growers' group says complaints that some orchardists are adulterating prime NZ oil with cheap imported product are "mischief-making". The growers say the report appears to have resulted from a mistaken assumption about how much oil could come from an orchard. (Evening Post)

Good Year for Charitable Trust

The NZ Fruitgrowers Charitable Trust earned 8.27% gross on total equity for the year ended March 31. Trust secretary Michael Gaffaney said the result was pleasing with the earnings made up of an income return of 5.97% and an unrealised gain of 2.30% on the value of investments. (The Orchardist)

Sweet Scent of Lavender

Lavender is joining manuka as a budding new essential oil export industry. The fledgling industry is also looking at the domestic market, which imports about 5,000kg a year. But while the quality of local oil and formulated products is high, the industry has obstacles to clear before it becomes a good earner. Food and Crop research scientist, Noel Porter, at Lincoln University says in NZ the internal issues are linked with cash flow and overseas the industry must have sufficient product to meet demand and be able to effectively conduct a marketing campaign. (Sunday Star Times)

Lavender Talk

More than 200 delegates are expected to attend the Australasian lavender conference hosted by the NZ Lavender Growers' Assn in Napier during September. (Hawkes Bay Today)

Soil, Land, Water, Arable

Global Warming Threat

Global warming is happening and threatens Earth with disaster, the world's leading atmospheric scientists say. A 2000-page UN report on the science and potential impacts of climate change makes an authoritative statement that the earth is warming rapidly and the main cause is human activities. The document follows the rejection of the Kyoto treaty on global warming by the U.S. in March and has been published ahead of a big meeting in Bonn, which has an opportunity to repair the treaty. (Evening Post)

Kyoto Protocol Details Unknown

Federated Farmers president Alistair Polson says it would be grossly irresponsible for the Government to ratify the Kyoto Protocol until the rules are known and the economic implications for NZ of reducing greenhouse gas emissions are fully understood. The Federation welcomed recognition by Government ministers that important detail, including international carbon trading mechanisms, recognition of carbon sinks and compliance are yet to be settled. He said NZ was unique in having agriculture as the main contributor to its greenhouse gas profile. It was unclear what the implications would be and much more research was needed. In the meantime the protocol could not be ratified in the hope that science would eventually deliver. (FFNZ statement)

Giving Away $1m Property

A Nelson farmer plans to give away his 28ha property, worth about $1m, to be used as a scientific field center. Dick Roberts, 75, has farmed the Todds Valley property for 32 years and has long dreamed of turning it into a scientific educational field centre, modeled on British centres. He plans to give the property to a trust, but live on it for the rest of his life. (Dominion)

Bee-killer Spreads South

The devastating bee-killing varroa mite has spread south of a control line to threaten infestation of the entire North Island. Beekeepers detected the scourge of their $50m industry 1km south of a Taranaki-to-East Cape buffer zone a week ago. Laboratory tests have confirmed it as varroa. (NZ Herald)

Little Buzz in Waikato Hives

Around 200 Waikato beekeepers could be out of business early next year, victims of plummeting honey production and the varroa mite plague. Most beekeepers in the upper North Island are battling the mite, first detected in South Auckland in April last year, but Waikato apiarists have been stung twice. The region, one of the country's major honey producing areas, had a disastrous summer in which production plunged by around half to less than 10kg a hive. Most Waikato beekeepers would normally get between 20kg to 25kg a hive, and some would get above the national average of 27kg. (NZ Herald)

Women in Rural Communities

The unity of women in rural communities had strengthened to the point where they were now a marketable sector, Positively Clutha Women chairwoman Irene Mosley says. She said that working through Rural Women's Week promotions they were achieving true acknowledgement for the efforts of rural women. (Otago Daily Times)

Resource Appeals are Expensive

A survey of local authorities showed they had improved their performance in implementing the Resource Management Act, however the Environment Court had not followed this example, Local Government NZ president Basil Morrison says. He said RMA appeals to the Environment Court took up huge amounts of time and money because the court insisted hearings start afresh, with the re-presenting of all evidence. This meant huge costs for the applicant. (Dominion)

Warning on Nitrate Levels

Farmers are being warned of high nitrate levels in pasture and forage crops by Lincoln University nutrition specialist, Wybe Kuperus. High levels of nitrate are present in a number of South Island forage crops and winter pasture species such as swedes, kale, turnips, rape, greenfeed, oats and ryegrass. University analysis had shown dangerous nitrate levels in several crops and nitrate poisoning could lead quickly to death of stock. (Christchurch Press)

NZ Grasslands Appointment

The NZ Grasslands Association has appointed Mick Calder as its executive secretary. He was formerly chief economist and board secretary to the Meat Producers Board, has been a director of Richmond, Alliance and Affco and is currently working part time as executive secretary for the NZ Lamb Co. (NZ Grasslands statement)

Industry

$4.5m Affco Project in Wairoa

Fifty new jobs will be created at Affco's Wairoa plant as the company expands its cutting room facilities. Plant manager Stu Cruden said Affco was spending $4.5m in a two stage development with the first stage, costing $2m, due to start this month and expected to be complete in November. He said the work was being undertaken to fill opportunities on the British chilled meat market created by the foot-and-mouth crisis and concerns over mad cow disease. (Gisborne Herald)

Forums for Meat & Fibre Producers

Federated Farmers Meat and Fibre producers are hosting a series of South Island forums for farmers to meet members of the national executive and air concerns about the meat and wool industries. Particular issues of concern are expected to include the future of the Wool Board and the strongwools marketing company, and the use of Meat Board and Wool Board reserves. Other issues for discussion are likely to include the new Tb pest management strategy and animal identification problems, the Meat and Wool Boards' proposals for funding research and the adequacy of NZ's biosecurity controls. Forums are planned for Winton, Balclutha, Timaru and Nelson. (FFNZ statement)

New Meat Plant at Oringi

Construction of a second multi-million dollar meat plant has been given the go-ahead near Dannevirke. The $9.8m lamb-cutting facility will be fitted at Richmond's Oringi plant. The Richmond developments follow an announcement by Canterbury Meat Packers of plans to build a $23m plant near Marton. The Oringi developments will bring about 120 extra jobs to the region and allow Richmond to process all the stock it slaughters. (Manawatu Evening Standard)

Shearers' Rates to Rise

With the cost of contract shearing expected to rise by up to 10% this season, crossbred wool farmers will see about a third of a sheep's fleece value going into harvesting expenses. Woolpro sheep production officer in Dunedin, Robert Pattison, said the recently announced increase in shearing rates brought the total annual cost of shearing and crutching a crossbred sheep to about $4.70; for a merino the cost was more than $5 a head. Although there were variations, shearers working with crossbred sheep were making about $105 per 100 sheep shorn, plus charges such as gear and meals; those shearing merino made about $136 a 100, before the other charges. (Otago Daily Times)

New Patent for Pelt-tanning

Palmerston North researchers have patented a new compound for tanning NZ lamb pelts that replaces the most commonly used method in the world. The compound, which is organic-based and metal-free, allows pelts to be tanned without chrome salts, first used in tanning in 1856. The new compound and process results from a research project funded by the Foundation for Research, Science and Technology and is claimed to provide significant environmental benefits. (Manawatu Evening Standard)

National Organic Standard Proposed

Commercial organic producers have formed a new body to push for a national organic standard as one of its key aims. Organic Growers Inc. encompasses regional groups as well as national product groups spanning avocados, kiwifruit, pipfruit, olives, dairy products and honey. The idea of developing national standards of organic production and certification is among the recommendations of a select committee review of the industry and would seek to remove confusion as to what is and is not organic. (RNZ Rural Report)

Sheep Geneticists Recognised

Two of the world's leading sheep geneticists have been recognised for their major contribution to the creation of the sheep gene map. The NZ Society of Animal Production has presented AgResearch scientists Drs Allan Crawford and Tom Broad with the McMeekan Memorial Award. The annual award recognises significant contributions to agricultural science. (Gisborne Herald)

Forestry

Legal Battle No Obstacle

Continuing court action between bitter rivals Citic and Fletcher Forests will not prevent would-be buyers from bidding for the Central North Island Forestry Partnership. Citic, owned by the Chinese Government, first began court action against its business partner in 1999, eventually alleging that Fletcher Forests mismanaged and overcut the valuable forestry asset. Despite the partnership's being put into receivership, Citic is continuing to pursue its claims under the name of River 135, a company set up for the purpose. Receiver Ferrier Hodgson, Fletcher Forests and the partnership's banks argue for this transfer of claim is a breach of the partnership agreement. A court date has been set for November, but industry observers do not think the litigation would stop Ferrier Hodgson from moving forward with an asset sale. (NZ Herald)

$50m Expansion Plan

Timber processing giant Juken Nissho has unveiled plans for an up to $50m expansion to double the capacity of its Kataia mill. Resource consent applications for the expansion, which could create another 70 jobs and almost double the existing workforce, have been filed with the Northland Regional Council. (Sunday Star Times)

Milburn Kilns Would Run Non-stop

The kilns at the Bright Wood timber processing plant, planned for Milburn, would run non-stop, seven days a week, if the project was given the go-ahead. Bright Wood consultant Allan Cubitt said the kilns would operate continuously at Milburn, as they do at the Otautau plant in Southland, although the sawmill operation would not necessarily run all day, every day. (Otago Daily Times)

RM Act Makes Investors "Gun Shy"

The Resource Management Act was making forestry investors "gun shy", Tairawhiti Development Taskforce as told by forestry group chairman, Sheldon Drummond. It would cost Port Gisborne more than $2m and take two years to get the consents it needed to just start the developments it needed. He said his company, Juken Nissho had taken four years to get an air discharge consent. The forest industry realised the need to protect the environment, but was concerned at the time taken to achieve a decision. (Gisborne Herald)

Help for Forestry Labour Drive

The Government has agreed to fund a campaign to ease the shortage of skilled forestry and wood-processing workers in the central North Island. The campaign, co-ordinated by the Rotorua District Council, is one of eight regional development projects to benefit from the third round of grants under the Industry NZ regional partnerships programme. The total of the grant monies for the Council would be $133,000. (NZ Herald)

Wellington's Port Spending $5.3m

Wellington's port company is spending $5.3m on a sophisticated crane and forestry shed as it fends off escalating competition from rival ports. (Evening Post)

Rotorua's Redwoods are Protected

Rotorua's Redwood Forest is not under threat from the predicted sale of Whakarewarewa Forest, Mayor Grahame Hall says. Whakarewarewa Forest ­ of which the redwoods are part ­ along with the Kaingaroa, Whirinaki and Rotoehu forests are for sale following the collapse of the Central North Island Forestry Partnership, which went into receivership in February. However, the Redwoods, on the southeastern border of Rotorua were protected under an agreement called the Tokorangi Triangle, he said. (Rotorua Post)

Farmers Lobby Against Forestry

A group of Southland farmers is hoping a report it commissioned can help to save small communities from the effects of too much forestry. The group, calling itself Sustainability of Rural NZ, is concerned that big plantations are taking over farmland and will eventually drive people from the area. They believe the findings of a report from Lincoln University, which says the Overseas Investment Commission has followed the law in allowing the Japanese-owned Southland Plantation Forest Company to buy land, but it says it is in the national interest that the rules should be reassessed as the loss of jobs caused by forestry will have a major social impact. However, an Environment Southland spokesman said the Council and the Regional Council were not likely to impose regulations on land use. (RNZ Rural Report)

West Coast Sawmill Closing

The second-biggest sawmill on the West Coast is closing with the loss of 30 jobs. Keighleys at Stillwater, 16 km east of Greymouth, blamed the decision on a market slump for pinus radiata. The company will concentrate milling at its Kaiapoi plant, north of Christchurch. Keighleys had already pruned its Stillwater workforce from a peak of 70 a year ago because of depressed conditions in its main export market, the Australian building industry. (Greymouth Evening Star)

Innovation Compounds Growth

A timber treatment chemical that will help NZ logs get to their destination in top condition is an innovation from an Auckland company. Chemcolour Industries (NZ) has developed an anti-sapstain treatment specially formulated for radiata pine and local conditions. It has the potential to save the export logging industry tens of millions of dollars, offering double the length of time the logs can be protected compared with existing methods, meaning the logs don't need to be processed as quickly. The research was powered by Forest Research and trailed by Fletcher Challenge Forests. (Export News)

Gisborne-Napier Rail Link

Deputy Prime Minister Jim Anderton has repeated his support for the Gisborne-Napier rail link, saying he considered its preservation critical. He said, while the link was not at immediate risk, the frequency of the services on it was at question. The port was important to the logging industry and he wanted to see the rail link kept. (Gisborne Herald)

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