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Best of 2023 Vol 22 No 1, January 15, 2024
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Exports hit by new blow to shipping Neal Wallace
MARKETS
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Exports
OME New Zealand dairy exports are taking nearly three weeks longer to reach international markets as they are diverted to avoid military tensions in the Red Sea and delays traversing the Panama Canal due to drought. Santiago Aon, Fonterra’s director of global supply chain, said carriers are diverting around the Cape of Good Hope to avoid conflict in the Red Sea, which increases transit times for the cooperative’s cargo by 14-17 days.
It is very likely these changes will result in congestion and delays for some time. Santiago Aon Fonterra “It is very likely these changes will result in congestion and delays for some time and detail of those impacts will become clearer over the next few weeks,” Aon said. Dairy and meat sectors said they have not had significant delays traversing the Panama Canal, where drought has created capacity restrictions that are delaying some vessels by up to a week.
Aon described global shipping as fluid and changing daily, but said Fonterra is working with key partners to prioritise and manage its orders. Meat companies targeting the lucrative United Kingdom Easter trade are concerned that any shipping delays could impact lead-in times, the Meat Industry Association said. “Red meat processors are watching developments in the Middle East closely, particularly in regard to the potential impact on chilled beef and lamb exports, but at this stage we haven’t received reports of any significant delays to major markets,” association chief executive Sirma Karapeeva said. Attacks by Houthi rebels on cargo ships passing through the Red Sea and the drought afflicting the Panama Canal have disrupted global shipping. Houthi rebels, who control much of Yemen, are using drones and firing missiles at cargo ships passing through the Red Sea in a show of support for the Hamas terrorist group in its war with Israel. An international naval flotilla is protecting shipping, but there are reports that the number of container ships transiting the Red Sea in the first week of January is down 90% compared to the same time a year earlier, an indication carriers are avoiding the region. Continued page 3
So far summer’s a breeze – for some While some farmers are labelling summer conditions the best in years, Mid Canterbury crop farmer Eric Watson is hoping for some settled weather over coming weeks as he begins harvesting. ‘It’s been an unusual season. August and September were warm, once the rain dried up, but we haven’t really had the weather predicted for an El Ninō. We’ve had the cold southerlies and a lot of cloudy days so the sun will be good now.’ Watson is busy with the harvester, but also ‘flat out irrigating’ wheat crops and late Timothy and ryegrasses. Photo: Annette Scott
NEWS 4
Right royal nod for Wellington beekeeper At first Frank Lindsay feared that word of his appearance on the New Year Honours list, recognising more than 50 years of service to the apiculture industry, was a prank. Photo: James Withington
PEOPLE 18 Prices at early season breeding ewe fairs instil new confidence in the sector.
2024 is shaping up to be as turbulent as last year for farmers, says Daniel Eb.
Milk-sourced probiotics could hold key to improving people’s mental health.
MARKETS 5
OPINION 17
TECHNOLOGY 19