ISSN No.1172­9481

© Copyright 2002 Inventas Media Ltd

Volume 02, No.5

February 6 - 12, 2002

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| Agribusiness | | Trade | Livestock | Horticulture |

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

Agribusiness

National Foods Eyes Dairy Foods

National Foods, one of Australia's biggest food companies, with core activities in milk and fresh dairy foods, has applied to the NZ Commerce Commission for approval to buy NZ Dairy Foods, which is owned jointly by Fonterra and dairy farmer shareholders. Fonterra is required to sell its stake by 27 September. National Foods said its application should not be interpreted as a firm intention to buy ­ it was a precaution 'in case'. However, there is a possible snag to a purchase, as Fonterra is the biggest single shareholder in National Foods, with an 18.3% stake. A National Foods subsidiary already makes and markets yoghurts and dairy desserts in New Zealand, under the Yoplait brand, through a plant at Palmerston North. (NZ Herald)

Fine Wool Prices Down, Medium Up

Demand created a strong lift in prices for most wool types at NZ sales this week, WoolPro reports. Fine wool prices fell at Thursday's Napier and Christchurch sales, but medium micron offerings moved up sharply. Interest from Chinese buyers pushed up prices for halfbred fleece and longer lambswool. It has been reported from Australia that Chinese buyers have reappeared in auction rooms there, bidding aggressively to fill orders for shipments up to 3 months in advance. The strong wool indicator finished at 440¢, up 14¢ from 426¢ on January 31. The medium indicator was 724¢, up 71¢. The lambswool indicator was up 36¢ at 478¢, but the fine wool indicator dropped 133¢ to 1427¢. Of the 24,321 bales on offer, 38% was crossbred fleece. A low 5% was passed in because it did not reach growers' reserve prices. (Farmindex/ABC Rural News)

Growers Rush to Shear Sheep

Australian woolgrowers are rushing to shear sheep and get their wool into the auction room, as the market continues to defy gravity. At sales in Sydney and Melbourne this week, the Eastern Market Indicator rose another 15¢ to A960¢/kg, while at Fremantle the Western Indicator lifted 25¢ to A929¢/kg. The strong market is also a bonus for shearers, shed hands and wool classers. Sam Beechey, from the Australian Workers Union, said some woolgrowers were paying well above the Federal Award of A$1.78/sheep in the rush to get the wool off. There had been reports of shearers being paid up to $2.20/head, and farmers being glad to do it, he said. (ABC Rural News)

Labour Shortage Boosts Farm Pay Rates

Farm workers' wages have risen by up to 30% in the past year as the shortage of skilled staff starts to bite. Some workers are negotiating $10,000 annual wage rises and better employment conditions with employers desperate to attract skilled staff. Farming, once considered a career with few prospects, is suddenly back in favour, fuelled by renewed profitability and optimism. Federated Farmers policy manager, Gavin Forrest, said the dairy sector was now setting the benchmark for wages and conditions, because of the expansion of the industry, particularly in the South Island. (Otago Daily Times)

New Processor in the North

A new beef processor has entered the North Island's highly competitive meat processing and exporting business. Kiwi Beef Packers began operating just before Christmas after more than a year of planning, and had its first full week of processing in mid-January. KBP's chief buyer, Garth Scown, said the company had a 'toll gate' processing arrangement with the modernised Levin Meat Processors facility. The plant has full USDA certification. (Country-Wide)

Enza Wants to List on Exchange

Enza is looking again at changing its constitution so that it can list on the NZ Stock Exchange and have fully tradable shares. Enza's board tried to introduce the changes last year, but withdrew them because of strong opposition from grower-shareholders. With deregulation and the removal of its special export powers, Enza sees an even greater need to become a fully listed company, and it believes there will be enough shareholder support this time to support the move at the AGM in Nelson this week. Enza says the current restrictions on trading its shares are keeping their value down and limiting its ability to raise capital and compete in the market. (RNZ Rural Report)

Beef Herd Builds, But Prices Down

Meat and Livestock Australia is predicting that the buoyancy in the lamb and beef industries will continue, but there are a few clouds on the horizon for beef. MLA is forecasting production to hit record levels, with the national cattle herd likely to reach a near-record 31 million head. Live cattle exports are forecast to reach record levels, and demand in most overseas markets should increase. But the MLA's Dr Peter Barnard said prices would be down around 20% on the highs of last year, and the industry was facing potential problems in 2 of its biggest markets. The situation in Japan following the discovery of BSE in Japanese cattle was not good, and the US quota and constraints on Australian exports to that market over the next couple of years would not help. (ABC Rural News)

A Good Year for Meat

New Zealand's earnings from beef and lamb exports rose to $4.35 billion in the meat year to 30 September 2001 ­ a 23.8% or $838 million jump over the previous year, Meat NZ reported. The lift was largely the result of higher returns on exports to Europe, supported by higher prices in Asia and North America, and a competitive exchange rate. 90% of the country's lamb production and 80% of its beef was exported. The value of sheepmeat exports to Germany surged by 39%, with a similar rise in returns from France, aided by the foot-and-mouth disease outbreak in Britain. Export earnings from Britain were up 9%, but the volumes sold were down 6.6%. Lamb exports to the US were virtually the same as the previous year, but total earnings rose 19%. (Otago Daily Times)

Lamb Looks Good for Five Years

The lamb industry in Australia can look forward to 5 years of favourable returns, according to the latest Meat and Livestock Australia forecast. Global demand is up, world supply is down, and local lamb producers are set to respond by increasing production to record levels. Chief market analyst, Peter Weeks, said the news was all good ­ more lamb was likely to be sold domestically and to the US. The lift in lamb prices last year by some 50%-60% would encourage graziers to stick with lambs, and stay away from wool. He believed producers could look to favourable lamb prices right through the next 5 years, because of steadily rising demand and falling global supplies. (ABC Rural News)

Predictions Supported Here

Meat NZ's chief executive, Neil Taylor, expects the country's meat export industry to repeat last year's good performance again this year. It was not simply the weak exchange rate, he said, there was also strong market demand for NZ lamb. Sheep numbers were declining in Europe and the US, and New Zealand's product went into the top end of the market; it was unlikely to be affected by the uncertain global economic outlook. New Zealand now has strong markets in Europe, particularly in Germany and France, and is getting better returns from North American and Asian markets. Mexico and Canada both imported more NZ lamb last season, and China is emerging as an important market. (The Dominion)

Smaller Fonterra Board ­ Roadley

Fonterra's chairman, John Roadley is keen to cut the size of the mega dairy co-op's board, or at least to increase the number of independent directors. Mr Roadley said he believed a 13-member board was too big to be efficient. He favoured one of 10 or 11 members. If shareholders did not approve a reduction, then independent directors should be immediately increased to 4 from 3, and he would like to see some international experts appointed. The changes would require 75% shareholder support, which he acknowledged would be difficult to get. Having the skills to run the company was much more important than having numbers, so he wouldn't be pushing too hard, he said. (NZ Herald)

Meat NZ Has Surplus Of $749,000

Meat New Zealand has made a net surplus for the 2000/01 year of $749,000. This is ahead of the budgeted deficit of $3 million, chief executive, Neil Taylor said. There was an actual deficit for 1999/2000 of $4.9 million, which had been in line with the budgeted deficit for that year of $6.3 million. The Board reduced Meat NZ's operating expenditure and brought it into line with projected income over a 3-year time frame. Levy and interest income for the year was $700,000 below budget as a result of decreased interest rates and a decrease in the beef kill for the year compared with original forecasts. Promotional spending was less than budgeted as a result of some activities being postponed. (Farmindex)

Wool Services Boosts Profit

Christchurch-based wool scouring and export company, NZ Wool Services International, has announced a $1.429 million after-tax profit for the 6 months to 31 December, a 150% increase on the $564,000 profit in the previous corresponding period. The chairman, Pat Morrison, said the surplus included recovery of an unrealised foreign exchange loss and the benefit of more favourable terms of trade. In spite of a slower than normal start to the current half-year because of wet weather throughout the country, he was confident that the full-year performance would be a significant improvement on the previous year. (Christchurch Press)

Celentis Announces Top Executives

Stewart Washer has been appointed chief executive of Celentis, the commercial arm of AgResearch. He has a PhD in biotechnology and has had many years' experience in this sector, setting up a number of successful start-up biotech companies. Roy Savage, who has been appointed chief financial officer, was previously treasurer of Zespri International and before that held senior positions in the banking sector. Celentis was set up just over a year ago to commercialise AgResearch's science discoveries internationally and to identify new business opportunities. (Farmindex)

PC Rejects Drench Patent Appeal

The Privy Council has rejected an appeal by animal health company, Ancare, over a patent for a combination drench for sheep. Five law lords unanimously rejected Ancare's appeal against the findings of the High Court and Court of Appeal in New Zealand. In 1998, Justice Morris revoked a patent held by Ancare aimed at monopolising a combination drench to control tapeworms in sheep. The higher courts rejected Ancare's appeals against that decision. It was accepted that Ancare was the first to bring to the market an easy to use, effective drench incorporating tapeworm control, but that did not qualify as an invention. (The Dominion)

Abattoir's Closure a Blow

The closing of the Oxford, Canterbury, abattoir at the weekend after operating for just over a year following a $200,000 upgrade, has disturbed the local community and brought into question the viability of small abattoirs. The owners blame 'cut-throat' competition from the bigger meat processors, and high MAF compliance costs, including the necessity for a full-time meat inspector on the premises. Six full-time staff have been laid off. (Christchurch Press)

Barton Chairs Goodman Fielder

Australasian food giant, Goodman Fielder, has appointed James Hardie Industries managing director, Keith Barton, as chairman of its board. Dr Barton was also chairman and chief executive officer of CSR America and is a director of several Australian companies. New Zealand's Sir Dryden Spring has been acting chairman. (NZ Herald)

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Trade

Bush Allocates $73.5b for Farm Bill

President George W Bush has allocated US$73.5 billion for the farm sector in his latest Budget. The amount is almost exactly that asked for by the Budget committees of the US House of Representatives and the Senate in their planning for a new Farm Bill. President Bush is asking the Congress to provide about 75% more in farm spending over the next 10 years, despite repeated calls by Australia and others to reign in subsidies. The US Secretary for Agriculture, Ann Veneman, said the Budget specifically provided for an additional US$73.5 billion over 10 years, to meet the Administration's commitment to a generous Farm Bill based on sound policy. (ABC Rural News)

G-7 Positive on Global Economy

The outlook for a global economic recovery had improved since October, Finance Ministers and central bankers from the Group of Seven (G-7) nations said after a 2-day meeting near Ottawa. They pledged to take steps to make sure growth did not falter. Since their last meeting, prospects had generally strengthened for resumed expansion in G-7 economies, although risks remained, they said. The G-7 countries are Canada, France, Germany, Italy, Japan, Britain and the US. (Sydney Morning Herald)

Apple Review Will Continue

Australian authorities said they would press on with the scientific review of New Zealand's bid to have its apples exported to Australia. The key scientist on the risk analysis panel, Dr Mike Kinsella, from Victoria's Department of Natural Resources, died recently. (NZ Herald)

Aus Rural Sector Losing Confidence

The latest National Australia Bank survey of agribusiness shows confidence has fallen, with many companies reporting slowing demand for exports. But overall, agriculture was still more buoyant than the business sector. The fall in global demand and low commodity prices had hit the cotton industry the most, with the beef industry and wine makers losing confidence in the second half of the survey. (ABC Rural News)

World's Biggest Container Ship

The world's biggest refrigerated container ship, the Remuera, has arrived at Auckland. It is also the biggest container ship of any kind to visit New Zealand. The vessel can carry 4100 shipping containers, with the capacity to refrigerate 1300 of them. The Albatross-class ship is one of 7 that P&O Nedlloyd will use to carry NZ meat, dairy foods, ice cream, tulip bulbs and other perishable goods to markets in North America and Europe. (NZ Herald)

US Moves to Cap Farm Subsidies

The US Senate has moved to limit the amount of subsidies available to individual farmers, as it puts the finishing touches to a new Farm Bill. Senators voted for a cap of US$275,000 per farm, a move which has angered politicians in the Southern states. Southerners called it 'war', and 'a poison pill', arguing that large did not mean rich when it came to cotton and rice farms, which had much higher input costs than mid-western corn and soybean farms. Major US newspapers have run stories about a handful of farmers in each state getting huge payments. The issue has resonated with many lawmakers, while major farm groups oppose the limits. (ABC Rural News)

GM Foods Safe, Says ANZFA

Australasia's food safety watchdog, the Australia New Zealand Food Authority, has backed genetically modified foods, saying they are as good as their natural counterparts and free of danger. Countless studies had shown that GM foods were safe and free of allergens, the acting managing director, Greg Roche, said. The Authority's backing came as the Royal Society of Great Britain released its own study that found there was no scientific evidence to support claims that GM foods posed a health risk to consumers. Mr Roche said ANZFA had received 23 applications for GM food, of which 12 had been approved, 4 were awaiting Ministerial approval, 5 were out for public consultation, and 2 had been withdrawn. (The Australian)

Turkish Agriculture Minister To Visit

Turkey's Minister of Agriculture and Rural Affairs, Husnu Yusuf Gokalp, has arrived in New Zealand for a week-long visit. Dr Gokalp, his wife, and delegation will spend time in Christchurch, Wellington, Hamilton and Auckland looking at a range of activities, focussing on Dr Gokalp's interest in pastoral farming and animal husbandry. The delegation will also lay a wreath at the Ataturk Memorial in Wellington. (NZ Herald)

Ag Trade Envoy Job Open

Malcolm Bailey's contract with the Ministry of Foreign Affairs and Trade as Special Agricultural Envoy ended in December. The Ministry is going through a re-appointment process for the position, which is contestable. This is expected to take another month. Mr Bailey is a director of the Fonterra Shareholders Council and a former president of Federated Farmers. (The Dominion)

National Export Conference

The first national export conference organised by Trade NZ will be held in Auckland, 8-9 May. It is targeted at exporters and others involved in international trade and will have a practical focus on the business of exporting. The Trade NZ Export Awards dinner will be held in conjunction with the conference. (Trademark)

Livestock

Survival Strategy for Breed Society

NZ Holstein-Friesian delegates will have the future of their association in their hands at their annual conference in Hastings, 18-20 June. They will vote on survival strategies developed since the 2001 AGM, which received a 'wake-up' call from a Hamilton consultant urging the association to 'reinvent or become a hobby club'. Assn chief executive, Ron Guest, said it was refocusing to attract new members. It must be relevant to changing times, adding value to the businesses of members. The association is looking at large herds of 350 or more, operated as business investments by corporate or individual owners with expertise unrelated to farming and herd management. It also wants to target the owner-farmed 200-cow herd. (NZ Dairy Exporter)

Ewe Hogget Competition

Entries are being sought for the national ewe hogget competition sponsored by the National Bank in conjunction with the Royal Agricultural Society. The competition identifies the best-performing ewe hoggets flocks in New Zealand and selects flock replacements that are likely to be most productive in their lifetimes. Entry forms are available from A&P Assns and entries close on 28 February. (Ashburton Guardian)

Super Sheep Planned

The backers of a $75 million project to create super sheep that will produce superior meat, wool and lambing percentages, are confident that the project will not be snagged by the Government's rules on genetic modification. Meat NZ research and development general manager, Neil Clarke, said the initial research on understanding the genes in sheep would be done under confinement in laboratories, so a ban on field trials was not a factor in the next 2 years. The Meat NZ, Wool Board and AgResearch joint venture research company, Ovita, aims to boost meat exports by millions of dollar a year through developing and commercialising sheep genetics. Ovita expects to be working to a $15 million budget by early next year, and its shareholders plan to spend about $75 million over the next 5 years. (The Dominion)

Aid to Facial Eczema Detection

A Dunedin company, Fecpak International, plans to release an add-on to its faecal egg counting kits, which will allow farmers to monitor facial eczema spore counts. Managing director, Greg Mirams, said AgResearch had discovered that FE spores pass intact into faeces. By regularly reading the number of FE spores in livestock faeces, farmers could track the risk of the disease and act before animals started showing chronic symptoms. The kit will be available next month, and the company was looking to markets in other countries subject to facial eczema, such as Australia and South Africa. (Otago Daily Times)

Sheep Make Way for Cows

Southland lost 1.8 million sheep during the past 10 years, making way for radical increases in dairy, beef and deer herds. Meat and Wool Economic Service figures show that dairy cow numbers in Southland increased 6-fold during the past decade from 44,000 in 1991 to 277,000. Beef cattle increased from 181,000 to 227,000, and deer numbers rose from 150,000 to 421,000. In 1991 there were 8.5 million sheep in Southland; today, the service estimates there are 6.7 million. (Southland Times)

More Boer Meat Goats Needed

A major Western Australia livestock exporter is urging more Australian farmers to breed Boer meat goats to fill increasing demand. Livestock Shipping Services has exported 12,000 feral goats this season, but only 1000 Boer goats, which are bred specially for the meat market. Manager, Peter Carpenter, said overseas markets preferred the meat goat. Feral goats were difficult to handle, and also did not have the meaty carcass of the Boer and Boer-cross. (ABC Rural News)

Horticulture

Varroa Logs-on

Varroa bee mite has entered the Wellington region via a hollow log from Northland. A consignment of native timber was trucked to a sawmill at Judgeford, north of Wellington, in January, and only a chance conversation with a local beekeeper nearly 2 weeks later alerted authorities to the presence of a swarm of bees from the mite-infested Far North. The wild bees were in a hollow log, and Upper Hutt beekeeper, Eyvind Pedersen, was told about them at the nearby Porirua market. He alerted the Wellington Beekeepers Assn, who contacted MAF, who went to the sawmill within the hour. The hive was destroyed and movement controls have been placed on all managed hives within a 5km radius, and all local hives are being treated against the mite. (Evening Post)

Enza Regaining Growers' Trust

Enza is having no trouble procuring pipfruit for export, despite its dispute with growers over foreign exchange debt. Predictions that distrust between growers and Enza would prompt growers to turn to other exporters appear to have not been borne out. Pipfruit Growers NZ chairman, Phil Alison, said Enza was now in a very good strategic position and was receiving a lot of support. Hawke's Bay Pipfruit forum chairman, Paul Paynter, said he was not surprised that Enza was doing better than he thought it would. It was a very good organisation and had had 50 years' experience. He believed some other exporters were not doing as well and they would like. Enza's managing director, Michael Dossor, said the company was very happy with the level of support it was receiving. (Rural News)

Rosy Future for New Apple

A bright red apple with all the eating qualities of Royal Gala has been given the green light for commercial plantings. The yet-to-be-named apple will be ready for sale at least two weeks before Royal Galas are picked, giving growers an opportunity for premium prices. It was discovered 10 years ago by a Hastings orchardist, who noticed a twig with bright red apples on it at the top of one of his Royal Gala trees. Final commercial protection is being arranged. Several thousand trees are ready for planting in New Zealand, and plant material has been sent to key growing countries, including South Africa, where its timing will complement New Zealand production and marketing. (Hawke's Bay Today)

'New World' Wines Challenge France

French wines have lost some of their global prowess over the past 10 years as so-called 'New World' rivals swallow market share in key consuming countries. A survey by Bordeaux's Professional Wine Body (CIVB) shows French wines are still the tipple of choice in Europe, but now account for 66% of sales compared to 71% a decade ago. Bordeaux, among the finest of French wines, fared better in some countries, but it too has lost out to aggressively marketed newcomers like Australia, the US and Chile. Bordeaux has lost half its share in Britain, a key market where New World wines have doubled their share and now account for almost 40% of wine sales. In the US, New World wines took almost a third of market share, while key exporters, Italy and France, each shed 6 percentage points. (NZ Herald)

Major Outbreak of Fruit Fly in Victoria

Victoria has begun its largest baiting program for Queensland fruit fly, after the state's biggest outbreak in 6 years. Four towns in the north-east of the state have confirmed findings of flies and larvae. Fire crews have been called in to assist with the baiting program in backyards across the region. Graeme Joyce, from the Department of Natural Resources, said the outbreak was a serious threat to Victoria's fruit growing regions. (ABC Rural News)

Landfill Threat to Wine Plan

North Canterbury businessman, Peter Yewdall, is threatening to axe a $40 million/year wine-making venture if a regional landfill is built at Kate Valley, near Waipara, Canterbury. Mr Yewdall, who spent $7 million buying 240ha in the Waipara area and irrigating it, said he would be forced to quit the venture and New Zealand if the landfill went ahead. Such landfills were banned in Europe because they polluted the environment, and his European markets had told him they would not buy any wine from his project if there was a regional landfill in the valley. Canterbury's local authorities approved the landfill site this week, and the developer can now apply for resource consent. (Christchurch Press)

Roller-coaster Ride for Avocados

Avocado growers, nearing the end of their season, have been on a roller-coaster ride, with prices ranging from $5 to $30/tray. Avocado Industry Council chief executive, Jonathon Cutting, said the market was as good as ever now, with growers getting $30/tray from Australia, but the season had been an 'absolute roller-coaster'. The first fruit of the season sold well in the US, but prices crashed after the 11 September terrorist attacks and took several weeks to recover. The season is 85% completed, and when it ends in April, avocado export revenue is forecast to be about $36 million-$40 million. Local market earnings are expected to be about $11.4 million. (Bay of Plenty Times)

Phylloxera Reaches Central Otago

The grapevine pest, phylloxera, has finally invaded vineyards in Central Otago. The aphid pest is well known to the grape-growing areas of the world and is already established in vineyards in Gisborne, Hawke's Bay and Marlborough. Local growers were philosophical about the discovery, believing it had been only a matter of time before the pest appeared. Treatment has begun, but vineyards face the prospect of replacing their current vines with new ones on phylloxera-resistant stock over a period of years. (Otago Daily Times)

Organic Price Rise Needed

Organic kiwifruit growers were not getting the prices they needed to keep the category viable, according to Leo Whittle, chairman of the Certified Organic Kiwifruit Assn. Organic orchards usually produced fewer, smaller fruit ­ about 6000 trays/ha, compared with 8000 trays/ha from a conventional orchard. Whether organic growers continued with the line would be up to individuals, he said. Most organic orchardists entered the category because they were convinced it was a better way to farm, but if it was not going to feed their families they might turn to other crops and methods. (Bay of Plenty Times)

40 Years of Nelson Apple Processing

Forty years of apple processing in the Nelson region is to be celebrated by Enza next week. The former Apple and Pear Marketing Board factory was opened in February 1962 and the first shipment of apple pulp processed there was exported in the following month. Fresh Up fruit juice was launched in May of that year and the factory expanded throughout the 1960s and 70s. The new brands, Just Juice, Appletise and McCoy were introduced in the 1980s and further processing plants were set up in Auckland and Hastings. The business was restructured to become Frucor in 1996, with Frucor Beverages being sold in 1998. The Nelson plant now processes apples into sliced and diced products, and makes a range of apple juices. (Farmindex)

Soil, Land, Water, Arable

Huge Rewards from Irrigation

Farmers have promised to boost the Canterbury economy by more than $1 billion/year, creating up to 12,000 jobs, under schemes to irrigate 192,000ha of the mid-Canterbury plains. The projections were released by Central Plains Water - a committee of farmers' representatives and Christchurch City and Selwyn District councillors. The committee has recommended the councils support a $235 million scheme to irrigate 84,000ha of land west of Christchurch between the Waimakariri and Rakaia Rivers, despite concerns from environmental groups. Results from an investigation into the Ashburton Community Water Trust's proposal to irrigate 108,000ha of land near Ashburton, are expected within a few months. The combined schemes could see an annual regional economic benefit to the whole of Canterbury of between $1.1 billion and 1.7 billion, with the creation of between 6000 and 12,000 new jobs. (Ashburton Guardian)

Farmers and Business in Alliance

Federated Farmers and Business NZ have joined forces to oppose new legislation due this year that will impose new environmental taxes and give increased financial powers to local authorities. The federation opposes ratification of the Kyoto Protocol because of what it says are a lack of research and hard facts behind the carbon taxes most farmers would have to pay. Federation vice-president, Tom Lambie, said farmers were working with Business NZ to convince the Government that more transparency and accountability were needed in the rating system. (The Dominion)

Nightmare Harvesting

Many arable farmers on the Canterbury Plains have found harvesting particularly difficult this season. After heavy rain battered crops, overcast conditions made harvesting a nightmare. On most days recently, heading has been delayed until mid-afternoon. For some crops it has been a salvage operation, with peas particularly badly affected. Barley has been an exception. Rakaia farmer, Edward Oakley, of Rakaia, said barley had been reasonably good to harvest because it was very ripe, although it was 'slow going' because much of the crop was broken down quite badly. (Christchurch Press)

Grainco, Elders, Wesfarmers Merge Seeds

A merger of 3 seed businesses has created Australia's largest broadacre and pasture seed company. Grainco Australia merged its seed business - which has a strong presence in Queensland and northern New South Wales - with the Elders-owned Paramount Seeds, which holds a share of the Western and South Australian markets. Grainco and Elders then bought Wesfarmer Landmark's seed division, SGB, which operates mostly in southern New South Wales and Victoria. Grainco chief executive, Dave Woodall, said it would take 2-3 months for the new company, Plant Tech, to begin operating out of Grainco's Melbourne offices. (ABC Rural News)

Dairying Still Expanding

Land continues to be converted to dairying in the South, despite the increasing cost of joining Fonterra. The company currently has 30 applications for new supply from Southland, 12 in Otago, 6 in Canterbury, and 3 in the North Island. This is fewer than last year, but is in line with expectations, the company said. New conversions will be paying an entry cost of just under $5/kg of milk solids, including peak notes. (Rural News)

More Farmers Fined

After complaints from other farmers, the Wellington Regional Council has prosecuted 2 South Wairarapa dairy farmers in the Environment Court for dumping cowshed effluent into streams. Graeme Charles Warren, of Dyerville, near Martinborough, was fined $5000 plus $465 costs. John Richard Nicholls, of Kaiwaiwai, was fined $4000 plus $1797 costs. (Wairarapa Times-Age)

Industry

Governance Issues 'Sorted'

The chairman of Dairy Farmers of New Zealand and a member of the Fonterra Shareholders Council, Charlie Pedersen, is satisfied that Fonterra's board is sorting out the governance issues that caused board director, Mike Smith, to resign. After a council meeting on Monday (11/2), Mr Pedersen said he was satisfied that Fonterra's chairman, John Roadley, and board members were getting to grips with the governance issues. The fact that the board had held a 2-day workshop on governance last week indicated that Mr Smith's resignation had brought what may have been an issue in the background to the forefront, and meant that it had been dealt with much more quickly. (RNZ Rural Report)

Labour Shortage Biggest Problem

The availability of labour is the most important issue facing the NZ dairy industry over the next 10 years, according to a planning forecast by Dexcel. A declining number of school leavers and tertiary graduates will make meeting the projected rise in demand for dairy industry workers ­ 10,000 over 10 years ­ difficult. There has been a marked reduction in tertiary students studying agriculture-related subjects at universities and polytechnics over the past decade. An expected decrease in the number of primary school-age children will further reduce the future available workforce. (NZ Dairy Exporter)

ANZCo Makes Final Payment to MNZ

Meat NZ's last link with its former commercial investments has ended with the last one, ANZCo Foods, paying the last instalment of a $19 million loan negotiated in 1995. The Board sold its shareholding in Asian New Zealand Meat Company Ltd (ANZCo) to a consortium of investors led by Graeme Harrison, who had founded the company on the board's behalf in 1984. In a $36.5 million settlement, ANZCo Foods paid an initial $17.5 million to the Board, with a further $19 million plus interest paid in instalments in subsequent years, a total of over $40 million. Neil Taylor, Meat NZ chief executive, said the ANZCo investment had contributed significantly to the Board's reserves. (Farmindex)

Maoris Want Dairy Deal

Taranaki West Coast Maori dairy lease landowners say they are disadvantaged by the formation of Fonterra. The PKW Incorporation owns 250 dairy farms totalling about 14,000ha, some of which are still on perpetual lease. When PKW resumes control of the land still on lease it will have to purchase Fonterra shares for the right to supply milk if it wants to remain in dairying. Although the Crown has no obligations to assist the claimants into the dairy industry, the Waitangi Tribunal has recommended that it assist by guaranteeing loans to purchase shares. If Fonterra shares for all resumed farms were purchased now, it would require around $40 million in borrowings, the Tribunal said. (Rural News)

Possible Link Between Milk And Diabetes

Researchers at Sydney's Westmead Children's Hospital suggest the Australian dairy industry may want to get involved in a project looking into the development of diabetes. Some research had shown that children with the diabetes gene may develop the disease if they are fed cows milk protein in their first 6 months. Senior physician, Dr Neville Howard, said that did not mean that young children should not be given milk ­ milk was important for a child's physical wellbeing. He suggested that the dairy industry might respond by modifying the proteins in milk through processing. The New Zealand dairy industry was supporting such research and how cows milk might be protected from this association. There was room for the Australian industry to take an interest and get involved. (ABC Rural News)

Enzyme Technology Lead

Researchers at Auckland University's engineering school say they have pioneered an enzyme technology that can efficiently produce milk products that counter lactose intolerance. Lactose intolerance is the world's commonest genetic 'disorder' and the greatest global barrier to a large expansion of the market for NZ dairy products. More than 70% of the world's population cannot digest large amounts of lactose, the main sugar in cows' milk. The researchers, led by Professor Xiao Dong Chen and doctoral student, Quinn Zhou, have invented a cost-effective system for running milk over an enzyme that will reduce the lactose content of the milk. (NZ Herald)

Trans Tasman Farm Leaders' Meeting

Federated Farmers' national board will have a return meeting with the Australian National Farmers Federation (NFF) in Brisbane, 25 February - 2 March. It will be the first time the Federation and the NFF have met in Australia. The aim of the meeting is to foster relations and exchange experiences on issues that are impacting on agriculture on both sides of the Tasman, Federated Farmers chief executive, Tony St Clair, said. They include the US Free Trade Agreement, the Cairns Group and WTO activities since the Doha meeting, biosecurity, the Kyoto Protocol, environmental issues, genetic modification, and organisation. (Ashburton Guardian)

Concern for Watersiders' Health

The watersiders' union is developing guidelines to protect workers' health because of concerns about the safety of chemicals used to fumigate ships. NZ Waterfront Workers Union general secretary, Trevor Hanson, said there was concern for the safety of workers exposed to methyl bromide, the chemical used by MAF to fumigate ships against insect pests. In a recent case in Nelson, 5 union members entered a fumigation shed after verbal assurances that it was safe. All 5 were subsequently hospitalised, and while 4 recovered quickly, one was off work for more than a year. (Western Leader)

Four Seek Board Seat

Four people are seeking the vacant Central South Island seat on the Meat Board ­ Lindsay Malcolm, Enfield, North Otago; Colin Gibson, Airedale, North Otago; Garth Hurst, Burkes Pass, South Canterbury; and Herstall Ulrich, Cave, South Canterbury. The seat has become vacant with the retirement of the Board's chairman, John Acland. (Otago Daily Times)

Forestry

Carter Holt Staying at Home

Carter Holt Harvey has no plans to return to Otago and Southland after last year's southern foray cost it dearly in bottom-line profits. Last year, Carter Holt's aggressive bidding in Otago/Southland drove log prices up by as much as 20% as the company attempted to supply what appeared to be a buoyant Korean market. The fall in Korean prices and the impact of the 11 September terrorist attacks on other strengthening markets had contributed greatly to the company's fall in net profit - $212 million down for the 9 months to 31 December. Chief operations manager, Devon McLean, said that for the year ahead, the company was focussing on its own forest estates and on 'building from the basics'. (Otago Daily Times)

Opposition to Port Expansion

Significant opposition is being voiced against a proposed expansion of Port Gisborne to handle a massive log trade. Building a port operation almost completely reliant on raw logs had the potential to use a lot of ratepayers' cash while causing damage to the city it serviced and doing little to boost industrial development in the region and create more jobs, opponents said. Businessman and former port company director, Bill Thorpe, echoed the views of others, saying that Gisborne would be better off encouraging added-value forestry processing, optimising use of the present port facilities, and expanding the port if it was needed to manage added-value products. (Gisborne Herald)

Wage Top-up for Learners

Up to 200 new forestry workers on the East Coast will benefit from a pilot scheme launched this week that will top up their wages while they are learning their trade. Juken Nissho's East Coast manager, Sheldon Drummond, said the scheme would help to move people from the unemployment benefit into meaningful work, but close co-operation between the East Coast Forest Industry Group and Work and Income NZ would be essential for the project's success. (Gisborne Herald)

Nuhaka Harvesting Again

Nuhaka Farm Forestry Fund would begin harvesting again and would resume distribution to unit-holders later this month, the administrators, Perpetual Trust, said. Sales for the next 3 months had been arranged on a stumpage basis and the successful tenderer was expected to start logging soon. Nuhaka deferred harvesting in May when its Gisborne forest was devalued. (NZ Herald)

CHH Looks to US

Carter Holt Harvey believes an alliance with California-based SierraPine will open up the North American market for its medium density fibreboard products. SierraPine, one of the biggest composite panel manufacturers in North America, will be Carter Holt's exclusive agent. (The Dominion)

Islanders Pin Hopes on Macrocarpa

Chatham Islanders are hoping that macrocarpa timber will give the island's economy a boost. Just over 100ha of young macrocarpa trees are in the ground, many in joint ventures between farmers and Chatham Islands Forestry Ltd, a wholly-owned subsidiary of the Chatham Islands Enterprise Trust. Trust chief executive, Joseph Thomas, said macrocarpa had been targeted as a niche-market, low-volume high-value product. (Country-Wide)

20,000-tonne Unload

20,000 tonnes of logs may have to be unloaded from the log carrier, Jody F Millennium, which is aground just outside Port Gisborne. The ship became embedded on a sandbar as it left port on Wednesday in high seas and strong winds. Salvage experts are considering 3 options: lifting the logs off with helicopters; dropping bundles of them into the sea and floating them to shore; or bringing in heavy barges on which to offload. (Gisborne Herald)

Craigpine Doubles Capacity

Southland's Craigpine Timber has virtually completed a $15 million expansion that will nearly double its production capacity to take advantage of export demand. Marketing manager, Bill Giller, said about 90% of the Winton plant's output is destined for export to Asia, the US and Australia. The upgrade has taken nearly a year to complete and will create an extra 25 jobs. (Southland Times)

New Skills Vital

A critical challenge faces the East Coast forestry industry in the near future ­ finding the educated young people it needs to realise its potential. Juken Nissho district manager, Sheldon Drummond, said the industry was moving into a new phase where technological skills were in demand. The industry had to get away from an image of people with axes and chainsaws working on steep hillsides. It must attract a new generation of workers with ability in subjects such as mathematics and science. Motivated achievers who joined the industry would find diverse and progressive careers, he said. (Gisborne Herald)

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