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Volume 02, No.4

January 30 ­ February 5, 2002

Agribusiness

Consumers Being Milked ­ Accusation

The Consumers Institute is threatening to seek the intervention of the Commerce Commission over continuing high prices for dairy products on the local market when export prices are falling rapidly. Export returns have fallen 18% below levels a year ago. Last year, milk powder was fetching US$2200/tonne, but is now down to US$1700/tonne. Institute chief executive, David Russell, said the fall in prices should flow through immediately to the Kiwi consumer. He said the Institute had been monitoring prices since the creation of Fonterra last October. All dairy products had gone up in price on the local market over the past months. This was a definite concern as, with NZ dairy prices linked to the international market, prices should be falling, not increasing, he said. (Evening Post)

Merino Wool Prices Up 20-30%

Merino wool prices rose 20%-30% on pre-Christmas levels at Thursday's South Island wool sale in Christchurch, buoyed by rising prices in Australia. More than 6000 bales of Merino wool were available, the last major Merino offering for the season. The jump triggered a startling 233¢ lift in the fine wools indicator to 1560¢/kg. Prices rose across all wool types at the sales in both Christchurch and Napier. At Napier, crossbred wools were up to 5% dearer, and lambswool was between 7% and 9% dearer. Otago Woolbrokers Committee chairman, Grant Edwards, said fears of a world shortage, given the clearance of the Australian wool stockpile and smaller volumes coming forward internationally, had caused the price rises. (Otago Daily Times)

Aus Wool at 10-year High

Australian wool prices continued at 10-year highs this week, with the Eastern Market Indicator closing at A944¢/kg clean, after strong bidding in Sydney and Melbourne pushed it to A$946¢/kg on the first day. In Fremantle, the Western Regional Indicator came back A20¢ to finish at A889¢/kg after rising A58¢ to A909¢/kg on the first day. The jump in the price of wool is forcing Australian textile manufacturers to consider blending wool with synthetics and cotton. Geelong Textiles, which supplies retail giant Fletcher Jones, is already beginning to factor in the 10-year peak in prices. Marketing manager, John Bennett, said that to keep costs down, they were considering blending woollen fabric with cheaper cotton and synthetic fibres. Retailers, particularly, were loath to pay any more, he said. (ABC Rural News)

Scarcity Means Higher Prices

Wool exporters are paying more for diminishing supplies this season, with predictions of a 10% fall in national production this year. Changing land use, from sheep to dairy cows, deer and forestry, along with drought in parts of the South Island, has resulted in an estimated 10% decline in wool production nationally and 8% in Otago-Southland. Canterbury and Marlborough wool volumes could be down as much as 25% this year because of last year's dry weather. Wool Exporters Council executive manager, Nick Nicholson, said exporters were beginning to doubt that the predicted sheep flock of 44 million was actually there. There was no doubt that the supply situation had had a dramatic impact for wool. The market was definitely in sellers' favour. (Otago Daily Times)

Aussie Woolgrowers Want 'In'

Australian woolgrowers are rushing to get their wool to auction or to lock it in on a healthy futures market. Hannah Plaskett, from Macquarie Wool Futures, said while there had been a remarkable jump in the number of contracts traded, some growers had opted to cancel in favour of the auction market. The January trade of A$4.6 million was up 146% on the year before. Normally, the 19-micron contract dominated the trade, she said. However, 55% of the market volume during January was done in the 21- and 22-micron contracts. Farmers were also rushing to get their wool onto the auction floor, with more than 82,000 bales already catalogued for next week's sales. (ABC Rural News)

Westland, Tatua Want Fair Price

Westland and Tatua dairy companies say their shares in the former NZ Dairy Board have been valued too cheaply in the process of setting up Fonterra. Both are seeking arbitration to redress the balance. Fonterra, which stands to lose out from any upward revaluation, is also seeking arbitration because it says the valuation is excessive. Tatua stands to get $26 million and Westland $84 million at the present valuation, but both companies say it is too low. Three arbitrators will decide the matter, one nominated by Tatua and Westland, and one by Fonterra; they will appoint the third. The arbitration is expected to begin around the end of next month and could take several months. (NZ Herald)

One More Shareholder

A tiny Southland dairy company, NZ Premier Dairy Co-op, has some 6500 shares worth around $21,500 in the former NZ Dairy Board. The owner, Bill Muller, who supplies Fonterra after a feta cheese export business failed, said he hoped to convert his shares to a stake in Fonterra. (NZ Herald)

Company's Debt Around $4 million

The liquidator of Cuttle and Isaacs, the collapsed Ashburton livestock company, believes its debt will be around the $4 million figure estimated by Federated Farmers. Warwick Ainger said he would probably not have a clear picture of the financial state of the company until next week. By then he would have a much better idea of how much the company owed and the assets that could be realised for distribution. He said that, among other investigations, he would look into the possibility of suing directors to make up any financial shortfall. (The Dominion)

Cedenco Joint Venture

A new joint venture to operate Cedenco Foods' Australian company would be positive for the parent company, managing director, Richard Lawrence, said. Subject to shareholder approval at a special meeting, 18 February, Cedenco has given approval for SK Foods to acquire the 50% interest in the Australian joint venture currently held by Cerebos Australia. (NZ Herald)

Allied Sells Meat Holding

Allied Farmers has sold its 51% stake in Te Kuiti Meat Processors for an undisclosed price above the book value. The deal will allow Allied to make a taxable bonus issue of one new share for each 2 shares, carrying a tax credit of 33¢/dollar. (The Dominion)

Less Wool for Sale

New Zealand's declining sheep population is reflected in the reduced volumes of wool sold in the 2000-01 season. WoolPro figures show that total shorn wool sales were down 8% on the previous season, to 152,541 tonnes, with auction sales down 4% and private selling down 12%. Auctions accounted for 44% of sales, up from 42% the previous season, and private sales accounted for 42% of sales, down from 44%. Slipe and sheepskin sales accounted for 14% of the season's production. (Christchurch Press)

$819 million for Wool

The total value of wool sold in the 2000-01 season was estimated at $819 million, of which $407 million was new season wool sold at auction and $287 million generated by private selling, WoolPro said. Slipe wool was valued at $122 million and sheepskin sales at $3 million. A total of 92,558 clean tonnes of wool was offered at auction, including 17 tonnes of re-offered wool. Passings for the season were about 10%. (Otago Daily Times)

Rangatira Buys Into Te Kairanga

Wellington-based investment company, Rangatira, has taken a 25% stake in Martinborough wine company, Te Kairanga Wines. Rangatira chief executive, Rick Christie, said the company had been searching for a wine industry investment for some time. Te Kairanga is the 2nd-biggest wine producer in the Martinborough region, and specialises in Pinot noir and Chardonnay. (Wairarapa Times-Age)

Golden Circle Buys Original Juice Co

In a multi-million dollar shake-up of the fresh juice industry, Australia's largest grower-owned fruit and vegetable processor, Golden Circle, has bought the Melbourne-based Original Juice Company. The deal, for an undisclosed sum, cuts competition in the fresh juice market from 3 players to only 2 ­ Berri Ltd and Golden Circle. As well as the Original Juice takeover, Golden Circle is to build a A$7 million processing plant in Griffith, New South Wales, initially to produce fresh juice, and possibly expanding into the vegetable market. (Sydney Morning Herald)

Heinz Wattie Heads To Court

Heinz Wattie will defend a multi-million dollar lawsuit in Auckland's High Court this week. Original Beef Bacon International is seeking $5 million from the Australasian company for breach of contract. Heinz Wattie terminated its contract with OBB, signed in 1995, after 5 months. (NZ Herald)

The Boom Shows in Hawke's Bay

Nearly one in 3 jobs advertised in Hawke's Bay this month has been created by the business expansion on the back of the rural recovery. Situations vacant advertisements since Christmas-New Year have been at record levels ­ up to a third higher than a year ago. About 70% of vacancies are for permanent work. Many of the positions have been created as business confidence grows, fed by the record export dollars earned in the horticultural and agricultural industries. The growth is not limited to businesses directly serving the rural sector, but covers a wide spectrum of employers. (Hawke's Bay Today)

AACo Exceeding Profit Forecast

One of the world's largest cattle companies, Australian Agricultural Company, said it expected to considerably exceed its forecast $21.5 million full-year profit on total sales of $90.28 million, as cattle prices had continued to strengthen in the 2nd quarter to 31 December. Australia's oldest rural enterprise, AACo was formed in 1824 by the British Parliament to cultivate the then wastelands of NSW. It has more than 400,000 cattle on 18 stations spanning 6.5 million hectares in Queensland and the Northern Territory, or about 0.9 per cent of Australia's land mass. (Sydney Morning Herald)

Trade

Dairy Replaces Meat

Over the past decade, exports of dairy products have supplanted meat exports as New Zealand's biggest pastoral export earner. In 1991, meat earned 48% of our income from pastoral exports, dairy 35%, wool 14%, and other pastoral products 3%. Ten years later, dairy earned 55%, meat 38%, wool 6% and other products 1%. Dairy exports now earn more than all other pastoral exports combined. In monetary terms, last year (to 30 September) the pastoral sector earned a provisional $13.974 billion in export income. Dairy products earned $7.594 billion; the meat sector earned $5.302 billion, of which $4.355 billion came from meat, and $847 million from other animal products such as hides and skins, tallow, meat meal, etc. Wool earned $887 million, and livestock earned $190 million. (Meat NZ Annual Report)

Commodity Price Slide Halted

ANZ Bank said the sharp commodity price slide of the final quarter of 2001 was halted in January this year. Its world commodity price index increased 0.2% during the month. Dairy prices continued to slide, but other prices were holding up well, the bank said. Beef and lamb were expected to stay above the levels of recent years. Aluminium and wood pulp were also near the bottom of their cycles, and timber prices strengthened 5.7%. Dairy prices fell 5.2% in January; venison was down 15.5% in a typical seasonal adjustment after a record year; beef recorded its biggest gains, rising 7%; lamb recorded a small increase during the month. (NZ Herald)

World Trade Talks Inch Closer

The 144 member states of the WTO have inched closer to settling disputes delaying the formal launch of negotiations to free up global trade, including agriculture. The new round of trade talks failed to open on time last Monday because of divisions over procedural issues, including who should chair the key negotiating committee. However, senior officials believed agreement was near and that the current Director-General of the WTO, Mike Moore, would be the chairman. The officials said differences of view at this stage were not unusual and were capable of being resolved. (Otago Daily Times)

Small Step for Free Trade Deal

Australia's Minister for Trade, Mark Vaile, has wrapped up talks in Washington with a small step forward on a free trade agreement between the two countries. After a 2-hour meeting with US Trade Representative, Bob Zoellick, Mr Vaile emerged with a plan for trade officials from both countries to go away and start preparing studies on a free trade agreement. These studies will look at the best way to handle sensitive issues such as agriculture. Mr Vaile hopes this work will be completed in 2 months but it's still a long way from any commitment to start actual negotiations. (ABC Rural News)

Shortages Drive Up Beef Prices

Imported beef prices in the US during the first month of 2002 were firm, reflecting supply shortages from New Zealand and Australia rather than underlying demand, Meat NZ reports. A large volume of Australian beef was released from bonded warehouses and has now been absorbed into the market. Importers who had sold short have been bidding up prices for the limited supplies available directly from Australia and NZ. The USDA is due to release its cattle inventory report this month and is expected to confirm that 2001 was another year of herd liquidation ­ the 6th in succession. (Meat Matters)

NZ Member on Aus Panel

The Australian and New Zealand Governments have responded to the growing impact of globalisation by integrating the way they regulate trans-Tasman business. The Australian Government has created a place for a New Zealand member on its Takeovers Panel, the peer review body that resolves disputes during controversial takeover bids. It has wide powers and can determine whether the takeover circumstances are acceptable and fall within corporation law. The appointment of John C King, a senior partner in a New Zealand law firm, follows the appointment of an Australian, Denis Byrne, to the NZ Takeovers Panel in a reciprocal arrangement between Canberra and Wellington. (Sydney Morning Herald)

Big Trade Deficit for Australia

Australia's trade deficit ballooned in December for the 2nd month in a row as world-wide economic gloom smothered demand for Australian farm exports. Bureau of Statistics figures show that Australia's trade fell A$358 million further into the red in December as the stunning pace of export growth earlier in the year came to a shuddering halt. From a rapid growth of 20%, Australian exports have begun to shrink at an annual rate of 0.6%. Rural exports were slashed by 11.1% in the month, following an 8% fall in November. The biggest falls were wool, down 14%, and cereals down 8%. (Sydney Morning Herald)

Wool Exports Down

WoolPro reports that total NZ wool fibre exports in the 2000-01 season fell 3% to 165,485 tonnes. Scoured wool made up 72% of the total export volume. China was the main market, taking 29,431 tonnes of 24.5 to 31.4 micron wools, up 8% on 1999-2000 season. Exports to Britain, New Zealand's second largest market and main destination for strong crossbred fibre, increased by 11%. Other markets decreased by up to 29%. (Hawke's Bay Today)

Lamb Means New Zealand in the US

A survey in the US for the American Sheep Industry Assn showed that most consumers associated lamb with New Zealand, then America, followed by Australia. However, most lamb sold in the US comes from American producers, followed by Australia, with New Zealand third. Meat NZ North American manager, Andrew Burtt, said the level of awareness reflected the NZ meat industry's commitment to developing the marketing of NZ lamb in the USA, company promotions, and the country-of-origin promotion work of Meat NZ. (Meat NZ)

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Livestock

Dairy Beef Squeezing Prime Beef

NZ beef farmers' access to US beef markets may come under pressure because of the increased supply of non-prime grade beef from the NZ dairy industry, says Meat NZ beef market manager, Bill Joyce. It may temper the outlook for beef industry returns over the next few years. Meat NZ expected cheap manufacturing beef from dairy cattle to outstrip prime beef supply 'very shortly'. By 2003, cattle from the dairy industry were expected to account for around 65% of beef production, compared with just over 50% in 1995 when dairy conversions began to gather pace. (Meat Matters)

Northland Farmers Install Cameras

Northland farmers have been forced to install surveillance cameras and hire private investigators to combat stock rustling. In the latest case, 380 lambs were reported stolen from a Maori trust farm near Dargaville, while other farms have been vandalised and animals slaughtered. The trust valued the lambs at around $30,000, so it was a serious matter, the farm's ag adviser, Gavin Ussher, said. Northland Federated Farmers spokesman, Bill Guest, said the problem was bigger than the police could handle. Stock thefts had increased because of high prices, especially for cattle, and it was difficult to find the culprits. (NZ Herald)

NZ Jerseys in Second Century

New Zealand's commercial Jersey cow herd is the biggest for the breed in the world and the pedigree group is one of the global big 3 with the US and Denmark. The NZ Jersey Cattle Breeders Assn, now Jersey New Zealand, was formed in 1902 and Jerseys dominated the NZ dairy industry from 1902 to 1970, when Holstein-Friesians became the dominant breed. To mark its first 100 years, Jersey NZ is holding a centennial conference and sale of pedigree stock at Palmerston North, 21-23 May, and will be represented at the World Jersey Conference in Denmark in June. (NZ Dairy Exporter)

Romneys Still the Major Breed

Romneys remain New Zealand's major breed, at an estimated 28 million (58%), WoolPro figures show. Coopworths have declined from 13.5 million in 1984 to 4.9 million, and Perendales have dropped from 10.6 million to 3.1 million over the same time. Merinos have increased from 1.4 million to 3.3 million. (Christchurch Press)

North Island Beef Competition Now

The Northland Beef Council's annual carcass competition has been expanded this year to become the North Island Beef Evaluation, open to beef farmers anywhere in the North Island. There are 2 sections ­ one for British breeds, and one for European breeds, with 4 weight classes in each. Entries close on 23 March and the animals will be killed on 7 April at AFFCo's Moerewa plant or the Auckland Meat Processors' plant in Auckland. Along with the weight classes, there will be a taste and tenderness class for the first time. The results will be announced at the Beef Week dinner in Whangarei 10 May. (Meat Matters)

FMD Costs Britain Billions

The compensation cost of Britain's outbreak of foot and mouth disease has blown out to more than £2 billion, according to the UK Department for Environment, Food and Rural Affairs. The average compensation paid to farmers with livestock affected by FMD was £107,000, roughly A$220,000 (NZ$366,000). The biggest payout was £4 million to cattle breeder, Jim Goldie, whose pedigree Limousin herd was one of the finest in Britain. The total cost of cleaning and disinfection was £254 million. (ABC Rural News)

Animal Blood and Bone Banned

Meat NZ and MAF are emphasising that there has been a total ban on feeding ruminant blood and bone to cattle, sheep and deer since 2000. Farmers must sign a declaration that no stock has been fed any ruminant protein, including any residual ruminant blood and bone remaining on pasture. Meat NZ chief executive, Neil Taylor, strongly urged farmers not to use ruminant blood and bone fertiliser. There were plenty of other alternatives, including fish blood and bone. Fertiliser companies voluntarily withdrew blood and bone from sale early last year as a precaution against BSE, and have introduced new products to take its place as a slow-release nitrogenous fertiliser. (Meat Matters/Otago Daily Times)

Tougher Tb Controls

South Island farmers moving cattle and deer to and from the West Coast will face tougher Tb movement control restrictions from 2 March. The control area on the Coast does not change, but to control the spread of Tb in Nelson, Marlborough and Canterbury, movement control areas will be extended in many parts of the Tasman and Marlborough districts and also in the Hakataramea Valley and Upper Ahuriri Valley. Cattle and deer 90 days of age and older, moving off any farm within a movement control area, will require pre-movement Tb testing, apart from animals going direct to slaughter. (Greymouth Evening Star)

Medal for Blowfly Research

Max Scott, a senior lecturer in genetics at Massey University, has been awarded a molecular biology medal for his research into genetically engineering Australian blowflies. He has developed GE all-male populations of the Australian sheep blowfly that would be ideal for sterile release programmes to combat the pest. (Gisborne Herald)

Horticulture

Get Tough With Kiwifruit 'Cowboys'

Trans-Tasman kiwifruit exporters and growers are looking to the Horticulture Exports Authority for help to bring more discipline into the trade with Australia, the only offshore market not controlled by Zespri. The Australian market has suffered from a lack of standards for fruit size and quality, and has also been the focus of investigations into the re-exporting of fruit into Zespri's markets, often at discounted prices. Late last year, Zespri chief executive, Tony Marks, said re-exporting was becoming more widespread, affecting the company's sales in South-east and Northern Asia, as well as undermining NZ growers' incomes. The chairman of Kiwifruit Exporters to Australia, Warren Young, said the objective of bringing the trans-Tasman trade under the HEA was to build a more disciplined approach to exporting and to rebuild value. (Horticulture News)

Only Bio-Gro for Zespri

Zespri International has advised growers that it will accept only Bio-Gro certified kiwifruit for sale as organic this year. This means that growers with Certenz certification will have to wait until 2003 at least before Zespri will consider adding their fruit to its organic range. Zespri said its decision was based on market demand. Access rights for organic fruit into Europe could be 'delicate and demanding', and the Certenz mark was unknown on the Continent. Only 3-4 growers would be affected, product development manager, Stuart Abbott, said. (Horticulture News)

First Season for 12-month Supply

December marked the beginning of Zespri's first season of continuous supply, with Italian-grown Zespri Green, Gold and Organic kiwifruit appearing on some European supermarket shelves. Volumes were relatively small ­ 100,000 tray equivalents of Green and Organic, and 4000 trays of Gold ­ as Zespri worked with suppliers to meet the brand standards. Zespri International reports that top quality product is hard to secure and prices have increased significantly. Containers of fruit have also been sent to the USA, South Africa and other markets, but resistance to the very high prices has limited trade acceptance. (Kiwiflier)

Maoris to Set Up Organic Certifier

A group of Maori organic growers plans to develop its own certification for indigenous organic food. At a hui near Wanganui, it launched a national body, Te Waka Kai Ora Inc. The chairman, Percy Tipene, said it would become the indigenous verifying authority for Hua Maori (natural produce) and Hua Parakore Maori (unadulterated natural produce), working alongside the existing certification bodies Bio-Gro, Certenz and Demeter. (Wanganui Chronicle)

New Rules for Organic Wine

New standards are being developed for organic viticulture. Bio-Gro, Winegrowers, the Wine Institute and certified organic wine growers are revising the Bio-Gro module and developing a viticulture and winemaking standard designed specifically to assist the transition from conventional to certified organic production. (Horticulture News)

Polytech Revives Hort Course

Bay of Plenty Polytechnic is reviving its course for the National Certificate in Horticulture, starting in March. Economic development group, Priority One Western Bay of Plenty, has collaborated with major horticulture industry groups, including Zespri, the Fruitgrowers Federation, NZ Kiwifruit Growers and WINZ, to re-establish the course, which the polytechnic dropped in 1992. (Bay of Plenty Times)

French Company Wants NZ Wine

A leading French wine company plans to import wine from a Hawke's Bay producer. Winemaker, Alan Limmer, said the Chapoutier company would distribute his Stonecroft wines in Europe. Chapoutier is one of the top wine companies in the Rhone wine region, noted for syrah (shiraz) wines. Dr Limmer was a pioneer of the syrah in New Zealand and is gratified that one of the world's top producers of the variety wants to import his wine. The first shipment will leave for France next month. (Hawke's Bay Today)

Kiwifruit On-line

Zespri is setting up a dedicated website >www.zespri-grower.com< containing the latest information on growing the best kiwifruit, orchard management, industry news, weather reports, Zespri events, insurance, payments, and a lot more. Because much of the information is commercially sensitive, all growers will have to register on-line for access to the site. Launch date is provisionally late March. (Kiwiflier)

Truffles Naturalised

Truffles, the high-priced fungi for which gourmets pay very high prices, appear to have become naturalised in parts of New Zealand. An Invercargill couple have been digging white truffles out of their garden, and the fungi seem to have become established in other parts of Southland. Marlborough restaurant director, Michael Jemison, said he had recently found 50 truffles growing freely in Southland and they had also been found growing naturally near Lumsden. (NZ Herald)

Produce IT Sharing

Fruit and vegetable industry executives have set up an association to share information technology in the produce sector. The Produce Industry Information Technology Standards Assn includes representative of Enza, Zespri, AgriQuality, MAF, Turners and Growers, and software developers. (The Dominion)

Soil, Land, Water, Arable

Farmers Oppose Kyoto Ratification

Well over 90% of farmers think the Government should not ratify the Kyoto Protocol on global warming until further research has been done. In a Federated Farmers survey of 17,000 farmers, 96.2% opposed the Government signing the protocol until the level of New Zealand's agricultural contribution to climate change was known. 96.8% wanted a strategy to meet obligations to be completed before ratification. 96.4% wanted key trading partners to sign first. Federation president, Alistair Polson, said the overwhelming response of farmers clearly showed there were grave concerns in the farming community about the Government's seemingly premature intention to ratify the Kyoto Protocol. More time should be spent creating the best plan to meet obligations and it should not be rushed, he said. (Otago Daily Times)

Poukawa Closing

AgResearch is closing its main Hawke's Bay research centre, Poukawa, near Hastings. Staff, and the work they do, will be transferred to other AgResearch centres around the country. AgResearch general manager for science, Warren Parker, said the change should be completed by June 2003. It would enable AgResearch to "better service the long-term viability of farming and needs of the wider rural sector". Locals believe it will gut pastoral science work in Hawke's Bay. Poukawa normally has 9 permanent staff with expertise in soil fertility, pasture agronomy and animal production. (Hawke's Bay Today)

MAF Ends RHD Investigation

MAF has ended its search for the original importers of rabbit haemorrhagic disease (RHD). Enforcement unit manager, Jockey Jensen, said MAF had been unable to determine who had imported the rabbit killing disease in 1997 or how they did it. The time limit for laying charges had lapsed, prompting the decision to end the investigation. Mr Jensen said he still hoped someone would reveal how they smuggled the virus through New Zealand's biosecurity borders so that MAF could ensure that loophole was closed. RHD continues to help keep Otago's rabbit problem under control, although a just-released study reveals the importance of follow-up control work. (Otago Daily Times)

Irrigation Scheme Rivalry on Hold

Two of the 3 irrigation companies targeting the same water from the Waitaki River appear have put their rivalry on hold in the bid to tap drought-prone North Otago's limited resources. A resource consents hearing at Oamaru on 11-12 February is expected to show the extent of their compromise, when the Downlands Water Company seeks 7 consents from the Otago Regional Council and Environment Canterbury. Downlands' chairman, Jock Webster, said that while the consent applications to be heard next month were in Downlands' name, the company was now happy for any water rights gained to go towards the best irrigation scheme, as determined by Irrigation North Otago - an umbrella committee uniting Downlands and former rival, Gravity Irrigation Ltd. (Otago Daily Times)

Australia Warned ­ El Nino's Coming

Australia should be on the lookout for signs of an El Nino weather event, according to the US National Oceanic and Atmospheric Administration. NOAA said ocean temperatures were warming in the tropical Pacific, indicating an El Nino could begin in the next couple of months. NOAA research meteorologist, Vernon Kousky, said it was too early to predict the severity of the coming weather event. (ABC Rural News) [The US warning echoes one issued to NZ farmers by NIWA climatologist, Jim Salinger. See AgBrief 02-3]

Perfect Conditions for Rabbits

Breeding conditions this summer are perfect for rabbits. One of the driest springs and early summers on record was followed by weeks of wet weather, transforming the normally brown, burnt Central Otago hills into a lush green feast for the pest. Some farmers said it was the best rabbit breeding season they could remember, allowing the population, subdued by rabbit haemorrhagic disease, to boom. Farmers report signs that a new wave of RHD may be sweeping through the population but, given the large increase in numbers, the Otago Regional Council is urging farmers to carry out secondary controls on the survivors. (Otago Daily Times)

Farms Fined for Spillages

Two central North Island dairy farms have been fined almost $20,000 after cowshed effluent spilled into nearby streams. Taupo farm company, Valley View, was fined $3250 on each of 4 charges, and farm manager, David Barham, $2000. Reporoa farmers, Graham and Keith Thomas, were fined a total of $4500 on 2 charges. (Rotorua Daily Post)

Industry

Hint, Hint

The Minister of Agriculture, Jim Sutton, has said he would welcome any move for the NZ Meat Board (Meat NZ) and the Meat Industry Assn to merge. But he said he was not 'twisting any arms' ­ just trying to 'exercise a little light-handed leadership'. The benefits would be a coherent approach to industry leadership and policy so that the industry spoke with one voice to the Government and the public, and there would be some administrative cost savings. Mr Sutton said both organisations probably had their doubts about the move. The Meat Board was preoccupied with the Wool Board reforms and their mutual research and development interests, and the MIA was likely to be put off by producer board politics. But he thought that eventually they would 'get together'. (The Dominion)

Not Averse

Meat NZ, the Meat Industry Assn, and Federated Farmers appear to be not averse to the idea of a merged meat industry representative body, in line with the thinking of the Minister of Agriculture, Jim Sutton. MIA executive director, Brian Lynch, said meat companies would welcome the opportunity to at least examine the merits of moving closer together. There would be big cost savings and a more cohesive approach to marketing. Quota management might be a sticking point. Meat NZ chairman, Jeff Grant, said the Board had discussed Mr Sutton's views on a merger and felt very favourable about looking at it, and had already decided to consult farmers and the industry on what would be the best 'industry-good' structure for it. Federated Farmers meat and fibre chairman, Murray Taggart, said the federation was 'very relaxed' about a merged organisation taking over meat marketing. (The Dominion)

Farmers' Confidence Down

NZ farmers' confidence has dropped to its lowest level in 2 years as earnings expectations decline, according to an AC Nielsen/Rabobank survey. The December survey found that just 8% of the 1000 farmers questioned expected agricultural performance to improve in the coming year, compared with 21% in November and 42% at the same time a year ago. 59% anticipated no change in conditions, while the number expecting a deterioration had more than doubled to 32% from 14%. Dairy farmers showed the biggest decline in optimism, although pessimism had spread across all sectors, Rabobank said. (Otago Daily Times)

Major Dairy Research Centre

New Zealand's largest on-farm commercial dairy research unit, the 350ha WestpacTrust Whareroa Research Centre, near Hawera, is scheduled to launch into full-scale research and production this year. The centre, a joint venture of Fonterra's NZMP, the Taranaki Agricultural Research Station Trust, and Dexcel, has secured on-going sponsorship and multi-million dollar research contracts. The official launching is on 3 March. It is the only dairy research farm fully owned by Fonterra and will eventually milk 1200 cows. (NZ Dairy Exporter)

Bonlac Stirs Interest

The NZ roadshow by Melbourne-based dairy company, Bonlac, promoting dairy farming in Australia, has attracted a lot more interest than it expected. The company's presentation has now been made through all of the North Island's dairying regions, with attendances ranging from 25 to 65. The company's NZ spokesman, Graeme Milne, said the presentation had been organised in response to the many requests Bonlac had received from NZ farmers wanting information about dairy farming in Australia. Australia was a big country, and if NZ farmers were going to move there, they needed to know what they were doing. (NZ Herald)

Another Cost on Business

The Government's proposals to increase the payment for work on statutory holidays would impose an extra burden on businesses that work 7 days-a-week, Business NZ executive director, Anne Knowles, said. It would mean employers would have to pay time-and-a-half for each statutory holiday worked, as well as providing for a paid day off in lieu. It would load considerable extra costs onto all enterprises operating 7 days-a-week, such as the hospitality sector, farmers, some retailers, and the residential care industry. (NZ Herald)

Napier Major Wool Centre

Napier remains the country's major wool selling centre, with a turnover of 24,145 tonnes, 29% of auction sales in 2000-01. It was followed by Dunedin, with almost 19,000 tonnes (23%) and Invercargill with 17,679 tonnes (21%). Auckland was the main centre for private selling, with sales of 19,393 tonnes clean, 26% of the 74,426 tonnes sold privately. (Hawke's Bay Today)

Sutton Welcomes Food Agency

The Minister of Agriculture, Jim Sutton, has welcomed the decision to merge the food safety and assurance responsibilities of the Ministry of Health and Ministry of Agriculture and Forestry into a semi-autonomous agency within MAF. He also welcomed the appointment of Health Minister, Annette King, as Food Minister-designate. Food safety was a vitally important issue all around the world, he said, and was critical for New Zealand, a country heavily reliant on food exports. (Gisborne Herald)

Export Meat Production

In the 16 weeks of the 2001-02 season to 19 January, the number of lambs slaughtered for export was 6,088,773 down 14.4% compared with the same period last season; hogget production was down 33.4% at 5008; mutton was up 4.1% at 2,008,665. The number of steers slaughtered for export was down 27% at 119,383; heifers slaughtered were down 2.4% at 43,725; cows slaughtered were down 7.5% at 100,980 and bulls were down 5.8% at 196,840. Total beef slaughterings for export were down 12.4% at 460,928. Bobby veal production was up 57.9% at 147,923, and goat slaughterings were up 8.6% at 15,988. (Meat Matters)

Mediation Stalled

Mediation between the Meatworkers Union and PPCS over pay increases and bonuses for Burnside and Mossburn workers has stalled. Union secretary, Gary Davis, said that after 4 hours of mediation on Monday and a second short meeting on Tuesday, PPCS negotiators had made no offers over the wage and bonus claims of the 100 venison workers. The mediation followed 3 days of strike action last week by about 40 Mossburn and 100 Burnside workers. (Otago Daily Times)

120th Birthday

The 120th anniversary of the departure of the first shipment of frozen meat from New Zealand to Britain will be marked at the farm that provided the lamb carcasses ­ Totara Estate, Oamaru ­ 15 February. The Dunedin sailed for London from Port Chalmers on that day in 1882 ­ an event hailed as the birth of New Zealand's economic abundance. (The Dominion)

Forestry

Carter Holt Cautious About Australia

Carter Holt Harvey says that while it will continue to seek new investments in Australia, in the short term it will focus on adding capacity to existing assets for growth. Chief executive, Chris Liddell, said at a briefing in Sydney that he expected the next year to be a relatively quiet period for acquisitions. There were opportunities for acquisition and for expanding existing businesses in Australia. One sector where there was potential to buy assets was in wood products. The company was working to a long-term strategy. Carter Holt's Australian assets total about A$1.8 billion (NZ$2.21 billion) ­ around 30% of its asset base. (Sydney Morning Herald)

NZ Building Industry In for a Boom

The NZ building and construction industry is set for 4 years of solid growth, due to an improving economy, more tourists and more residents, according to a survey by Australia's BIS Shrapnel. The industry, led by the residential sector, could see a boom in 2004-5. BIS forecast growth in the value of authorised building to average 7%/year over the 3 years to March 2005. Senior consultant, Adeline Wong, said she expected the annual value of authorised building to average $6.6 billion over the 3 years to 2005; the 1999-2000 peak was $6.4 billion. Keys to a sustained recovery in the residential building sector over the next 3 years were the current low housing-loan interest rates and net migration gains in 2001-02. (Otago Daily Times)

Aussie Building Bubble 'Deflating'

Australia's building boom is clearly over, economists say, after the latest figures on building approvals showed the second large decline in 2 months. The Australian Bureau of Statistics reported that building approvals fell 7.3% in December, after a 9.1% drop in November. For the year, approvals were up 29.7%. In December, both private house and medium density building were down sharply, and by the middle of this year the economic impetus from housing was going to dissipate, economic analyst, Simon Doyle, said. The housing bubble was deflating, rather than bursting, he said. (Sydney Morning Herald)

Fletcher Forests Unfazed

Fletcher Forests says it is 'comfortable' with the drawn-out sale of the Central North Island Forests Partnership. The sale was originally expected to take 6-9 months, but has dragged on for nearly a year. Fletcher Forests continues to manage the 180,000ha forest estate. Chief executive, Terry McFadgen, said the asset was 'paying its way' and the company was more concerned that the process was handled correctly than with any timing issues. He declined to comment on reports that the delay was due to bids being too low to cover CNI's debt. (NZ Herald)

Drug Action Plan

A drug action plan that was aimed at a dramatic reduction in the abuse of drugs and alcohol in the forestry industry had now been finalised, said the chairman of the East Coast Forest Industry Group, Julian Kohn. Last year the group formally recognised that there was an issue with substance abuse in the industry. The key to the programme was the setting up of a comprehensive support network for abusers to provide them with ongoing counselling and training. The industry felt it had a responsibility to act in a proactive manner to tackle the problem head on, he said. (Gisborne Herald)

Form Work for Taiwan

Carter Holt Harvey's laminated veneer lumber plant, Futurebuild, at Marsden Point, has won contracts to supply about $2 million worth of form works (modular framing systems) for major concrete structures in Taiwan. The form works, the moulds into which the concrete is poured, are for a new high-speed railway between Taipei and Taichung. (Northern Advocate)

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