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Volume 02, No.3

January 23 ­ 29, 2002

Agribusiness

Serious Fraud Office Called In

The Serious Fraud Office has been called in to investigate a South Island stock company that has collapsed, owing farmers millions of dollars [AgBrief 02-01]. Ashburton-based Cuttle and Isaacs was put into liquidation this week after one of its 2 directors, Michael Buchanan, laid a complaint with the police, who referred it to the SFO. The company's collapse has caught farmers who supplied stock last month and were not paid. They include farmers from the North Island East Coast who sold lambs to supply southern meat works that were short of stock because of the drought. Christchurch accountant, Warwick Ainger, who has been appointed liquidator, said he would be preparing a report for the Companies Office within the next 2 weeks. (RNZ Rural Report/Wairarapa Times-Age)

Affected Farmers Should Register

Federated Farmers president, Alistair Polson, is urging farmers affected by the liquidation of Canterbury stock firm, Cuttle and Isaacs, and the sale of Coromandel Meat Processors, Thames, to register with the Federation. He urged urge all farmers who had not yet contacted it to register on freephone 0800 646 327. It would enable the Federation to gauge the scope of the problem and assess whether it could facilitate any action on behalf of members. Coromandel Meat Processors sold its processing plant last month to the Waikato company, Wallace Meats. Mr Polson said he understood some farmers had not yet been fully paid for stock they supplied to CMP last year. (RNZ Rural Report)

Strong Demand for All Wool Types

Strong demand drove up the average price for all wool types at the North and South Island wool sales in Napier and Christchurch on Thursday. Merino and mid-micron wool at Christchurch and lambswool at Napier were in hot demand in particular. Prices for the very small offering of Merino and 1st-lambswool rose by up to 9%, with the increase in Merino prices, driven by price rises in Australia, sending the fine wool indicator up by more than 100¢ to 1327¢/kg. In spite of concern in the industry that damage from water staining might affect prices, demand was also strong for crossbred fleece, which rose by up to 5%, lifting the strong wool indicator by 3¢ to 420¢/kg. The medium indicator rose by 4¢ to 653¢/kg. The pass-in rate nationally was 8% for the 28,253 bales on offer. (RNZ Rural Report)

Aus Wool Market Beats A900¢/kg Again

The Australian wool market regained some of the ground it lost earlier in the week, with the Eastern Market Indicator exceeding A900¢/kg clean for the 2nd time in 2 weeks. The biggest gains were in Fremantle, with the Western Market Indicator jumping 64¢ to A848¢/kg. On the opening day of the 3-day sale, the Eastern Market Indicator had slipped 17¢ to rest at A877¢/kg, after sales in Sydney and Melbourne. The previous week's high reached a peak of A907¢/kg. More than 34,000 bales were offered at Sydney, Melbourne and Fremantle this week, with the strongest gains in the finer end of the market. The Australian Wool Exchange said next week's offering of more than 65,000 bales would be condensed into 2 days because of the Australia Day holiday. (ABC Rural News)

Lamb Prices Holding

Export prices for lamb appear to be holding up, despite meat companies removing early-season procurement premiums. Meat NZ figures show current prices are still ahead of those a year ago and, for heavier grades, are ahead of last season's South Island average. Prices have generally been falling since the works opened after Christmas, but the biggest impact on the new season's lamb prices has been the decline in the prices of co-products, such as pelts, because of slowing world economies. NZ Lamb is in short supply in the key UK market, with PM grade carcasses selling for 209p/kg, compared with 171p/kg last year and 170p in January 2000. (Otago Daily Times)

Dairy Methanol for Fuel

The NZ dairy industry was ready to roll with dairy ethanol, made from whey, for Gull Petroleum, said Laurie Brockliss, general manager of Anchor Ethanol. Currently, 55% of dairy ethanol was exported. It is a pure form of alcohol, and Gulf plans to use it at up to 10% in its petrol mix. Ethanol-petrol mixes have been used in the US and Canada for 20 years and in Australia for 10. New Zealand is among a handful of countries that do not use ethanol-petrol mixes. Dairy ethanol production began here in 1980 and New Zealand now has the world's largest whey-to-ethanol operation in the world, producing 20 million litres/year, and is set to expand. (NZ Dairy Exporter)

Mohair Recovering

The market for mohair is recovering after a slump in prices ­ from a high of $70/kg at the beginning of last year to $25/kg in December [AgBrief 02-1]. Now, according to Chris Sundstrum, chief executive of Mohair Pacific, Christchurch, prices are rising again on the NZ market, following a 30% price rise in December in South Africa, the world's biggest mohair producer. Mr Sundstrum said that even with the price fall, NZ producers had still received double what they were paid in 1999. He believed the absence of drought this summer and a growing demand for mohair augured well for the coming season. (Rural News)

Progressive Continues Court Fight

Supermarket chain, Progressive Enterprises, is planning a High Court appeal after the Commerce Commission turned down its application to buy Woolworths NZ. Trevor Coates, managing director of Progressive's parent company, Australia's Foodland Associated Group, said Progressive would lodge documents for its appeal with the High Court later this week. It also planned to appeal to the Privy Council over a Court of Appeal decision declining Progressive's original clearance to buy Woolworths. (The Dominion)

Rapaura to Use Corbans Winery Site

Contract wine-making company, Rapaura Vintners, has bought Montana Wines' former Corbans winery in Marlborough. The sale, for an undisclosed sum, is the start of a multi-million dollar expansion for Rapaura. General manager, Nigel Taylor, said Rapaura Vintners would increase production from 4000 tonnes of grapes a year to more than 6000 tonnes within 4 years, with a doubling of premium Pinot noir production. Montana closed the former Corbans winery last year. (Marlborough Express)

Dairy Meats' Top-up

Dairy Meats NZ has topped up its payout to suppliers. Extra payments just before Christmas were based on the co-op's performance in international markets. Total average net payments for calves for the season so far have been:- light calf, $35.87; medium, $78.06; and heavy, $113.76. Chief executive, Paul Rivers, said the company had been very competitive in a competitive market. (NZ Dairy Exporter)

Tractor Binge Continues

Statistics NZ reports that new tractor registrations rose 84% in the year to October 2001. 3708 tractors were sold nationwide in the year to December, compared with 2108 in the same period in 2000, a rise of 76%. In Canterbury, tractor sales were up 87% for the year. Retailers reported a continuing strong demand for tractors, both new and used, with a complementary increase in demand for other farm machinery, including front-end loaders. (Christchurch Press)

24-hour Sheep Milk Plant Proposed

A $6 million sheep milk-powder plant in Oamaru could be processing milk later this year. Farmers from throughout New Zealand have shown interest in supplying milk to the venture, which will require milk from 10,000 sheep. Mega Tech Ltd, of Waimate, has applied for resource consent from the Waitaki District Council to establish the plant in a former milk treatment station. The proposed plant would run 24 hours-a-day, 7 days-a-week, Mega Tech director, Alan Hibberd, said. (Oamaru Mail)

Tui Suppliers to Appeal

The group of Manawatu dairy farmers who believe they were misled over the 1996 merger of Tui Milk Products and Taranaki's Kiwi Co-op Dairies, will appeal against a High Court judgment that found that their allegations were based only on "suspicions". Jim Hedley, who, with 288 former members of Tui sued the former directors and advisers who put the deal together, said the relevant papers would be filed this week. (The Independent)

Too Much Cost in Goodman Fielder

Goodman Fielder's chief executive, Tom Park, says there is still too much complexity and cost in the business, despite significant restructuring. He said the food group remained committed to a second A$100 million share buyback. The company had a clear strategy and a straightforward earnings model that would improve shareholder returns. Australia's largest food company indicated last month that it could sell some or all of its milling and mixing operations; it has already sold off much of its ingredients business. (Melbourne Age)

National Foods Takes King Island

Australia's biggest dairy producer, National Foods, is compulsorily acquiring the cheese and gourmet food group, King Island Co, after gaining 93% of its shares [AgBrief 01.47]. KIC has milk processing plants on King Island (in Bass Strait), Victoria and New South Wales. (Sydney Morning Herald)

Southern Fresh Decision Delayed

The Commerce Commission has delayed its decision on the possible takeover of the Invercargill milk company, Southern Fresh, by Mainland Products. A decision was expected this week, but a spokesman said it would be another 2 weeks. (Otago Daily Times)

Frucor Delisted

Frucor Beverages' shares will no longer be traded on the NZ Stock Exchange following Groupe Danone's takeover of the company [AgBrief 02-2]. (The Dominion)

Trade

No Time for Complacency

The formal declaration of Britain as foot-and-mouth-disease free did not mean that New Zealanders should become complacent about the level of risk of an outbreak here, Biosecurity Minister, Jim Sutton, said. The OIE, the international animal health organisation, has declared Britain free of foot-and-mouth disease, following Britain's own declaration last week. Mr Sutton said border control and biosecurity measures to stop illicit food imports by air passengers would continue, as there was still a significant risk to New Zealand, particularly from Asia and South America. There were 490 outbreaks of foot and mouth in South-east Asia alone in 2000. In many Asian countries the disease was there all the time, he said. (RNZ Rural Report)

Clark to Meet Bush in March

The Prime Minister, Helen Clark, will meet US President George W Bush, in Washington, 26 March, with prospects for a US-NZ free trade agreement and the outcome of the war in Afghanistan high on the agenda. Miss Clark said she would also be meeting business people to promote the free trade deal and investment opportunities in New Zealand. (Evening Post)

President Bush Unsure About Farm Bill

President George W Bush has urged US Senators to pass a new Farm Bill. Republican Senate leader, Trent Lott, said the President still had concerns about the Bill that was currently before Congress. He said the President had made it clear that he understood a substantial amount of money would be needed, but he was very much concerned about the policy ­ that it would lead to more over-production and further problems for farmers in America. (ABC Rural News)

Trade Deadline in Danger

WTO Director-General, Mike Moore, has warned that arguments over key posts could prevent a new round of global trade negotiations, due to start next week, from finishing in 3 years as scheduled. Mr Moore issued his statement as envoys from developed and poorer countries appeared deadlocked over whether to appoint Mr Moore to oversee the start of the talks or give the job to an ambassador who would change every year. Delegations from the 144 WTO member countries are due to meet this week to set up a committee to steer the negotiations, agreed at a Ministerial conference in Doha, Qatar, last November. (The Dominion)

Feds Endorse Biosecurity Message

Federated Farmers' vice-president, Tom Lambie, has applauded Biosecurity Minister Jim Sutton's message that New Zealanders should not become complacent about the risk of an outbreak of foot and mouth disease in New Zealand. A major biosecurity breach, such as an outbreak of FMD, would have a devastating effect on the whole New Zealand economy, not just agricultural exports and tourism, Mr Lambie, said. Although New Zealand's biosecurity systems were among the best in the world, they were under growing pressure from increased trade and international travel, and all New Zealanders had an obligation to be vigilant about biosecurity. (Gisborne Herald)

No Trade-offs in Farm Bill Talks

Australia's Trade Minister, Mark Vaile, heads to Washington this weekend in an attempt to win last-minute changes to the US Farm Bill, which would see $170 billion in subsidies. Mr Vaile will argue for a reduction in the size of the subsidies when he meets US Agriculture Secretary, Ann Veneman. But he said he was not prepared to offer the US any trade concessions in return for changes to the Bill. It was not a matter of trading one thing off against another, it was a matter of moving toward a fairer trading system globally, he said. (ABC Rural News)

Trade Deficit Revised Down

New Zealand's November trade deficit, initially reported at $351 million, has been revised down by Statistics NZ to $341 million after export figures were reported. It gave a trade surplus of $875 million compared with the earlier provisional estimate based mainly on import figures of $862 million. (Otago Daily Times)

Meeting Postponed

A meeting of the world's five leading agricultural nations in Japan this weekend has been postponed. The Quint meeting was to be attended by Australia, New Zealand, the US, Canada, and the European Union. However, sickness has forced several delegates to pull out and the meeting will be held next month instead. (ABC Rural News)

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Livestock

Cattle Footrot Widespread

Veterinarians in much of the country except Southland are under pressure dealing with an epidemic of footrot in dairy cattle. The recent warm wet weather means that the bacterium which causes the disease, which is usually only prominent in sheep, is thriving, so much so that the company that supplies the hoof covers called Cowslips has sold out. Morrinsville vet, Scott McDougall, said that while normally only 3%-4% of a herd would be infected, up to 30% of cows have been going lame since late spring. (RNZ Rural Report)

MAF 'Swamped' with Welfare Submissions

MAF has been 'swamped' with submissions on the new proposed codes of welfare for pigs and poultry. MAF's national animal welfare adviser, Wayne Ricketts, said the response was not unexpected in view of the debate over intensive farming. There had been more than 680 written submissions and around 50,000 postcards from an SPCA campaign, plus another 10,000 from SAFE, on the pig farming code. On the broiler chicken industry, there were 170 written submissions, and around 1200 SAFE postcards. The National Animal Welfare Advisory Committee will consider the submissions before the final codes go to the Minister of Agriculture. (RNZ Rural Report)

Big Herds Growing

3600 dairy herds, 26% of the national total, have 300 or more cows. South Island herds average 354 cows against the North Island's average of 232. South Canterbury has the largest average herd size at 483 cows, with Hawke's Bay at 428 cows. (NZ Dairy Exporter)

Cloning Company Markets Dairy Bulls

In what is claimed to be a world first, 2 Holstein-Friesian dairy bulls have been cloned for commercial sale. The 5-month-old bulls were cloned from a sire named Donor, a bull owned by genetics company, RAB Australia, in a joint venture with Clone International (Australia). The bulls have a price tag of A$200,000 each, and RAB said Chinese buyers were already showing interest in them. The company's chief executive, Warwick Ashby, said they were targeting the Asian market because Australia was not ready for commercial clones. (ABC Rural News)

New Zealand Not Far Behind

NZ ag scientists have started work on cloning 10 copies of several top-performing dairy bulls. The most likely markets for the bulls, which are still 10 months away, were in Asia, particularly China, said Dave McCall, an executive of Celentis, the commercial arm of AgResearch. Celentis is a partner with Clone International in Australia in holding the rights to the technology that produced Dolly, the world's first cloned sheep. (Otago Daily Times)

Herd Size Has Doubled

The average dairy herd size in New Zealand is now double what it was 20 years ago. The average herd size in 1980/81 was 126 cows, and in 2000/01 it was 251. There are fewer herds; 13,892 herds in 2000/01, compared to 16,089 herds in 1980/81. The total cow population has grown from 2,027,096 in 1980/81, to 3,485,883 in 2000/01. Dairy farms are also bigger ­ 96ha compared to 63ha then. (NZ Dairy Exporter)

EID Option Next Year

Farmers will have the option of electronic identification (EID) of their livestock by the middle of next year, but it will not be mandatory. After a long delay, the Animal Health Board has released a discussion document outlining the technical specifications for EID for manufacturers. Board spokesman, Nick Hancox, said submissions would be received and reviewed in February-March, and when the specifications had been finalised, manufacturers could apply to the Board for approval. The Board sees the system as being a dual one with visual tags for some time, and meat companies will have to be able to deal with both types of identification. (Straight Furrow)

Application for Transgenic Cattle

AgResearch has lodged a wide-ranging application for permission to develop transgenic cattle that can produce human proteins of use to the pharmaceutical industry. The application has been framed in a way that may avoid political controversy over genetic engineering field trials by defining it as a 'development' project. The cattle would not be housed in a laboratory, but would be kept in 'secure' paddocks at a research centre. The Environmental Risk Management Authority decided to notify the application because of a high level of public interest. Submissions are open until 7 March. (Otago Daily Times)

Breeding Better Meat

Some Manawatu Romney breeders have joined forces to identify which of their rams produce the most valuable meat. The 6 farmers, with the help of Massey University researchers, are tracing each of their top ram's progeny to the killing chain and evaluating their meat. The aim is to enhance their Romney studs, which already focus on breeding fertility, milk production and survivability, by adding the ability to produce the best prime lambs. (The Dominion)

Blowflies No Longer a Pain in the Butt

The days of blowflies being a pain in the butt for wool producers may be over. An Adelaide-based company, Microbal Products, is conducting registration trials on a bacterium (Bacillus thuringensis) found in the fleece of sheep, which is toxic to the larvae of the sheep blowfly. The company's Professor Dudley Pinnock, former head of the entomology unit at Adelaide University, said the trials were looking positive. The researchers had adapted the bacterium and formulated it so that the farmer could apply it with conventional jetting equipment and did not have to alter any of his management practices. (ABC Rural News)

Shearer Breaks Lamb Record

Timaru shearer, Grant Black, has set a new world record by shearing 637 lambs in 8 hours at Mt Peel Station, beating the old record by 16. (Timaru Herald)

Good Prices for Angora and Boer Goats

Angora and Boer goats attracted good prices at the annual goat sale in Christchurch. The top price for the Angora offering was $900 for a 2-tooth buck; this was $200 up on last year's highest price. Other Angora bucks ranged from $300 to $575. The top pen of 4 mixed-age does sold for $160/head. The best of the Boer offering was a 4-tooth buck, which sold for $700, about $400 down on last year's top price. 2-tooth does sold for top prices of $380 and $350. (Southland Times)

Horticulture

Standards NZ to Thwart Cheats

Standards NZ will release a draft standard defining 'organic' food in May and a final definition is expected in December. The agency's organics committee chairman, Jim Kendall, said the organics industry was hard to police because growers were widely dispersed. Anyone could label their products organic to command higher prices, but those products could have been grown without any reference to organic principles whatsoever. Seagar Mason, chief executive of Bio-Gro, said that up to 15% of 'organic' produce in shops and 30% at markets and roadside stalls would not meet international certification standards. (NZ Herald)

Weather Bad for Bees

Shortages of honey and rising prices are predicted as the wet summer impacts on the bee population. Commercial apiarists in Canterbury and the West Coast are reporting their worst season in decades. Short supplies, particularly of manuka honey, are expected to drive up prices and could affect the country's $11 million honey export industry. NZ Honey Producers Co-op marketing manager, Gavin Frankpitt, expects less bulk honey to be exported and less supplied for industrial uses locally. (Christchurch Press)

Zespri Staff Reluctant to Shift

Zespri International is moving its head office from Auckland to Tauranga, but not all staff want to shift to the provinces. Zespri has taken full-page advertisements seeking applications for 9 key jobs. Spokesman, Susan Robinson-Derus, said the positions were not new. The company was replacing people who, for various reasons, would not make the move. Further recruitment was likely as the change progressed and more people elected to remain in Auckland. She said a full complement of between 110 and 120 employees, "covering all key functions and competencies", would be based in Tauranga by late this year. (NZ Herald)

Botrytis Research Team

Crown research institute, Landcare Research, and biotechnology company, Genesis Research and Development Corp, are to research the genetics of botrytis, the mould fungus that causes rotting in grapes and berryfruit. The partners aim to target genetic information to control botrytis and hope that their research will also lead to other potential uses in controlling fungi in plant, animal and human health. (Hawke's Bay Today)

Growers Fear Phylloxera

Central Otago remains free of the grape vine killing disease, phylloxera, largely because of a region-wide voluntary protocol, but growers are concerned that it is not strong enough and want legislative controls put in place. Growers have co-operated in their own interests to keep out the disease, but they fear that people less aware could bring in infected stock or contaminated machinery. (Otago Daily Times)

Ban on Royal Jelly Imports

MAF has banned imports of unprocessed royal jelly after finding evidence of European foulbrood in a shipment from China in December. The bee secretion is commonly used in tonics and health foods. Processed capsules and products are not banned. New Zealand is free of European foulbrood, which is common in most other countries. The infected shipment was sent back to China. (NZ Herald)

Shortage of Pickers Looming

While packhouses in Hawke's Bay are on target to meet their labour requirements for the approaching pipfruit harvest, growers could be struggling to find enough pickers. The horticulture industry estimated that it needed 12,000 pickers and 3000-4000 packers to harvest and pack the region's export apples and peach and pear crops. With the picking of Royal Gala due to begin in 2-3 weeks, there could be fewer pickers available than last year, the president of Pipfruit New Zealand, Phil Allison, said. (Hawke's Bay Today)

Freak Hailstorms Wipes Out Crops

Hailstones hammered the life out of a commercial hydroponic lettuce crop in the Wairoa Valley of Western Bay of Plenty at the weekend. Neighbouring kiwifruit orchards had this year's export crop shredded and the new canes for next year's crop damaged beyond salvage. Hail also severely damaged crops in Mid and South Canterbury. Some farmers lost complete paddocks of ryegrass and wheat, and barley crops were reduced to silage. One grower lost 60% of his crop of blackcurrants. (Bay of Plenty Times/High Country Herald)

Nurseries Pool Resources

A consortium of fruit tree nurseries has linked with an international nursery group to develop and commercialise new fruit varieties. The NZ Fruit Tree Company was formed 3 years ago by Pattulo Nurseries, Hawke's Bay Nurseries, and 2 South Island nurseries to share the high cost of bringing new plant material into the country. The group is importing stone and pipfruit varieties for trial under NZ conditions and possible commercialisation. It has now linked up with the Associated International Group of Nurseries, which has members in the US, Argentina, Chile, Belgium, France, South Africa and Australia. (Hawke's Bay Today)

Soil, Land, Water, Arable

Tougher Rules on Foreign Ownership

In the biggest change to foreign investment rules for many years, New Zealand farms must now be advertised for sale to New Zealanders first. The land must remain on the open market for at least 20 working days before the Overseas Investment Commission can give approval for purchase by foreigners. The laws, which come into effect on Friday, 1 February, also require the Government to consider whether or not overseas farm sales will bring 'substantial and identifiable' benefits. The Commission said nothing in the legislation prevented the owner from selling farmland to an overseas person, but genuine efforts must be made to offer it for sale to New Zealanders. (The Dominion)

Higher Prices, Lower Yields

Grain prices are up on average by $80-$100 a tonne, but farmers won't necessarily be reaping the benefits, as yields and grain quality are expected to be down because of the rain. Manawatu-Rangitikei Federated Farmers grains section chairman, Hew Dalrymple, said all grains have had a substantial price lift, but he expected crops to have lower than usual yields, and quality might also be a problem. (Manawatu Evening Standard)

Signs Bring Warning of Drought

NZ farmers should start taking into account the possibility of a rejuvenated El Nino weather pattern triggering another drought next spring and summer, NIWA senior climate scientist, Jim Salinger, said. International computer models which predict global weather patterns were starting to indicate a renewed El Nino arising over the next 3-6 months. The last El Nino event, in 1997-98, had cost NZ farmers hundreds of millions of dollars. Farmers would be advised to watch developments over the next 2 months very carefully, he said. (Otago Daily Times)

Sustainable Farming Trial

AgResearch is conducting a 3-year trial into grasses for sustainable farming on a Blackstone Hill, Central Otago, property. AgResearch Alexandra manager, Dr Barry Wills, said 2 species of plants were being tested ­ wheat grass and hairy dorynicium, which both grew well in dry conditions. Both plants had grown well on the hilltop site in the wet spring and summer so far, he said. (Oamaru Mail)

Quality Assurance Schemes Combined

Two of the most important quality assurance schemes affecting fertiliser management, Fertmark and Spreadmark, have been brought together under one body, the Fertiliser Quality Council, which operates under the auspices of Federated Farmers. Fertmark covers the nutrient content of fertiliser, and ensures that marketing claims are true and factual. Spreadmark covers the training and certification of those that spread fertiliser, and the certification of the equipment they use. (Fertiliser Matters)

Port's Farms Up for Tender

Port Gisborne has put its 2 farms at Tauwhareparae up for tender. Tenders close on 28 March, with a decision due by mid-April and settlement by 30 June. (Gisborne Herald)

Website for Deer Farmers

With assistance from the Government's Sustainable Farming Fund, a website is being set up for deer farmers. It will contain an electronic library of scientific and technical articles, accessible to members of the NZ Deer Farmers Assn. The site is expected to be ready in May. (Christchurch Press)

Industry

Storm of Speculation

A storm of speculation in the New Zealand media has followed from the unexpected resignation of one of Fonterra's directors, Mike Smith, last week [AgBrief 02-2]. Various scenarios have been promoted, but the company and its chairman, John Roadley, have said little. It was reported that Fonterra's Shareholders' Council had called an emergency meeting in Auckland for this week. However, it has since been reported in the NZ Herald that the council's chairman, John Wilson, said the councillors would not be meeting this week at all. Mr Wilson said he had "a degree of comfort" over the company's governance, which a council meeting now could not improve. One would be held after directors met for a 2-day governance workshop in February. (AgBrief)

Combined Lobby for Deer Industry

Deer farmers and velvet and venison processors are to combine to form one industry body, Deer Industry New Zealand. 91% of the deer farmers who voted in a referendum late last year supported the unification of the NZ Deer Farmers Assn and the Game Industry Board to form DINZ. 1029 (25%) of the country's 4200 deer farmers voted in the referendum. Venison and velvet processors were also polled, with similar levels of support for the new entity. Farmers and processors will fund the new body 50:50 through a compulsory levy. The board of DINZ will be evenly split between producer and processor representatives, with 4 board members each and a Government appointee. (Rural News)

Sharemilkers Law Needs Review

The chairman of the National Sharemilkers Assn, Conal Buchanan, agrees with the need to review some parts of the legislation controlling sharemilking contracts, but it does not need a major overhaul. The Government has accepted a recommendation from Parliament's Regulations Review Select Committee, to review aspects of the Sharemilkers Agreements Act. The committee heard complaints relating to a new order covering sharemilking agreements that took effect last year. Mr Buchanan said one of the gaps is the lack of a guideline for renegotiating the agreement between sharemilkers and farmer employers. (RNZ Rural Report)

No More Funding from Wool Board

The Wool Board has finished with providing funding for grower groups seeking alternatives for the wool industry. Board chairman, Bruce Munro, said everything possible had been done to allow producers to form a GrowerCo-style entity, but they had shown they were just not committed to it. Now the focus would be on disestablishment of the Board by 2003. He said the Board set aside some $500,000 for the planning and promotion of GrowerCo, although the final figure had yet to be tallied. (Straight Furrow)

Burger King Wants Tougher Rules

Hamburger giant, Burger King, has asked the US Department of Agriculture to propose stricter meat industry guidelines to ensure humane treatment of livestock. However, the executive director of the NZ Meat Industry Assn, Brian Lynch, sees no problems for the local meat industry. He said this country's animal welfare and meat processing systems have already passed muster with Burger King ­ the biggest single user of NZ beef exports. They sent a team to New Zealand in the middle of last year, which carried out an intensive survey of processing practices and aspects of animal welfare. Burger King's managers said they were impressed and very comfortable with what was being done here. However, he warned that Burger King's action reflected a growing international concern for animal welfare, and New Zealand could not afford to be complacent. (RNZ Rural Report)

Meat Hygiene Meeting

A meeting to discuss an international code of practice for fresh meat hygiene will be held in New Zealand in February. It will be the first time the Codex committee on meat and poultry hygiene has met since 1993. Senior policy analyst for MAF, Cherie Flynn, said the draft proposal condensed about 6 individual codes, including those dealing with fresh meat, game and poultry, into a single code. Flynn said that if the code were adopted it would have little impact on NZ farmers and processors because the controls were already in place here. About 150 specialists from 30-40 countries would be attending. (Rural News)

Turbulence for Ag Aviation

The agricultural aviation industry is facing turbulence in the aftermath of the 11 September terrorist attacks. Insurance premium rises of 120% are common and many operators are becoming increasingly concerned about the viability of their businesses. Even though the accident rate for the industry has come down 25% over the past 5 years, claim costs have increased significantly, said Agricultural Aviation Industry president, John Sinclair. Rising insurance costs were also affecting sustainability in terms of pilot training. Operators who trained new pilots or employed low-time pilots faced substantial increases in premiums. (Straight Furrow)

Automated Shearing on Its Way

An Australian company is bringing a self-contained mobile automated shearing system to New Zealand next year and hopes to become an established part of the shearing industry. Australian Wool Innovation's chief executive, Col Dorber, said ShearExpress would not replace shearers ­ there would always be a place for efficient shearers. The cost per sheep shorn would be about the same, but the system allowed for fast, efficient and clean clip removal, and eliminated the need for a lot of on-farm shearing infrastructure. The technology had been patented worldwide and the company hoped to have the equipment available for sale by 2004. It was spending $8.47 million on development. (Farm Equipment News)

NZMP Base in Hamilton

NZ Milk Products, Fonterra's global ingredients business, will have its headquarters in Anchor House, the former head office building of NZ Dairy Group in London Street, Hamilton. NZMP's extensive computer data centre will be consolidated at London Street from the current 3 data centres in Wellington, Hamilton and Hawera. Fonterra's new rural supplies business, Rural Supply Co, will also have its headquarters in the building. RSC brings together the 27 Anchormart stores and the Internet sales business RD1.com, formerly operated by NZ Dairy Group, and the 22 Town and Country Agri Centres formerly operated by Kiwi Co-op Dairies. (NZ Dairy Exporter)

Fonterra Revamps Dairy Farmer Contest

Fonterra has revamped the former Kiwi Co-op Dairies Farmer of the Year contest to create the country's biggest farming competition, with $300,000 worth of prizes. Kiwi restructured its contest last year to run nationally for the first time. This year the contest will still be sponsored by WestpacTrust, but will be known as the NZMP Farmer of the Year competition and will be based on 8 regions. (Otago Daily Times)

Event Attracts Exhibitors

More than 300 exhibitors have so far registered for next month's Southern Field Days, near Gore. A spokesman, Deborah Wood, said the Waimumu site was a third larger than in 2000, the last time the field days were held in Southland. The field days are being held on 27-28 February. (Otago Daily Times)

Forestry

CHH Not Out of the Woods

Carter Holt Harvey was not out of the woods, despite boosting its annual result with a net $25 million profit for the December quarter. The quarterly profit for the country's 2nd-biggest listed company was at the upper end of analysts' forecasts, which ranged from $9 million to $26 million. The company did not expect the economic environment to improve substantially in the first half of 2002. (Otago Daily Times)

December Quarter a Good One

Carter Holt Harvey chief executive, Chris Liddell, said trading conditions had been extremely challenging, due to cyclical lows during the year, but had finished strongly. Each of the business groups reported their best earnings for the year in the December quarter. Forests achieved record export log sales and an improvement in prices; pulp, paper and tissue also lifted earnings despite key markets at cyclical lows; the NZ and Australian packaging businesses also showed an improvement in earnings. The Kinleith mill was back in full production after its maintenance shutdown, and in November the Carters building supplies chain recorded its best monthly earnings in 6 years. (NZ Herald)

Nine Months' Figures

Carter Holt Harvey's profit for the 9 months to 31 December was $6 million, compared with $218 million last year. The company, 51%-owned by International Paper, changed its balance date to 31 December, resulting in the 9-month 'annual'

result. Net 9-month sales were a record $3.154 billion, compared with $2.854 billion in the corresponding period. The results included restructuring costs of $37 million from the mothballing of the Mataura paper mill and the Mt Burr sawmill. (The Independent)

Building Boom in NZ

A booming farming sector and more people arriving in New Zealand than are leaving have created a boom in the building industry. Statistics NZ figures show that the value of residential building consents issued in December rose to $306 million, compared with $206 million in December 2000, and last November was even bigger. Master Builders Federation chief executive, Chris Preston, said the trend of the past 3-4 months was expected to continue. Forward orders for the construction of new homes in provincial areas were strong, and also in the major centres of Wellington, Auckland and Christchurch. (The Dominion)

Carters Outgrows NZ Nest

Carter Holt Harvey is increasingly looking across the Tasman as it strives for better profits from its yearly sales of $3.15 billion. The 2nd-biggest company on the NZ Stock Exchange has revealed that it is discussing a full compliance listing on the Australian Stock Exchange. After its recent acquisitions across the Tasman, Carter Holt now has assets worth $2.2 billion in Australia, employs just under 4000 people and has two chief operating officers based in Melbourne; it also sells the biggest proportion of its products there. However, company chief executive, Chris Liddell, stressed that Carter Holt was not planning to move its corporate office to Australia or change the status of its listing on the NZSE. Carter Holt had heritage in New Zealand and would be staying here, he said. (NZ Herald)

Export Award to Rayonier

Growing annual exports of medium density fibreboard from zero to $80 million in 5 years in the face of challenging market conditions has won Southland company, Rayonier MDF NZ, a Trade New Zealand Export Award. Employing 101 people at its Mataura facility, Rayonier manufactures medium density fibreboard (MDF) for export around the world. It is in the process of launching 2 world-leading MDF products ­ one an ultra lightweight MDF for furniture and solid doors; the second a board where one of the faces can be completely removed (as in highly decorative furniture manufacture) with the board remaining stable. (Southland Times)

First Round of Spraying Over

The first round of spraying against the painted apple moth in West Auckland has been completed after several delays because of bad weather and mechanical problems. The second round of spraying will begin in a few weeks. (NZ Herald)

Roads Cannot Cope

Nelson's roads and infrastructure would not cope with the predicted 'wall of wood' that was to come out of the region, and Transit New Zealand was turning a blind eye to the problem, said Tasman regional Mayor, John Hurley. The predicted timber cut from the district was due to double by 2005, and the infrastructural assets needed to be initiated now. Logging trucks paid more than $600/day in road tax, and all of it was being spent on Auckland, he said. (Nelson Mail)

CHH to Repay US Bonds

Carter Holt Harvey has announced that it will repay with cash and short-term debt $150 million in outstanding 7-year American bonds which matured in mid-April. (The Dominion)

Sawmill Opened

A $2 million sawmill that has created 21 jobs in the small Otago town of Naseby was officially opened this week. The Central Otago Lumber mill is already supplying timber framing for the booming Central Otago building industry. It is a specialist small-log mill and its output is expected to be about 20,000m³/year. (Otago Daily Times)

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