plough partners
better biology
John and Lynda Guy, Hamilton, are both passionate about ploughing. page 38
About 45,000ha is being farmed on soil-first principles, a Far North field day hears. pages 26-27
Rural NEWS to all farmers, for all farmers
February 21, 2012: Issue 509
IT’S OFFICIAL: sheep and beef farming are in the black big-time, but lamb numbers will be fewer than forecast. Beef & Lamb NZ Economic Service’s mid-season update estimates $133,800 average profit for sheep and beef farms – up 17.6% on last year, the highest in 10 years. Director Rob Davison told Rural News that in 2007/08 some farms made only $10,000. “For five years we’ve had an awful
run of profits. In 2007/08 our farm profits had slumped and in some regions to negative. International prices were [then] soft and we had a strong exchange rate. This year the exchange rate is much the same but international prices have outstripped it.” The profit rise is massive in Taranaki/ Manawatu – 50% on last year. And a 42% increase is forecast for Marlborough and Canterbury. This points to a better season than 2010/11, a disaster in these regions. Other regions are expected to get modest rises.
Despite sliding schedules Davison says one positive message is that exports receipts are going to hold. “We’ve got a tweak up in volume going out and a tweak coming down as a result of a stronger exchange rate. Though prices are softening a bit, they’re still good compared with two years ago.” The report shows sheep numbers down by 4.3% to 31.15 million. Davison says this a bigger drop than they predicted, a drag on the number of lambs available this season for slaughter. “This
will be down 4.1% from earlier estimates to 19.7 million.” Lamb prices at the farmgate are estimated to be $115 per head, slightly down (2.2%) on last year’s record high of $117.64. Davison says he expects export prices to be good though the stronger NZ$ vs the euro and the pound could soften the price outlook. This year Davison expects a huge fall in mutton exports – down 30% or 31,000 tonnes on last year’s record kill. “We had an enormous sheep slaughter last year underpinned by high prices for mutton. This year we don’t see the sheep flock declining; it may increase slightly by June.” This is backed up by news of a 4.8% rise in hoggets being retained, indicating the national flock is rebuilding. While a decline in wool production reflects the drop in sheep numbers, this has been offset by good pasture conditions. Wool production is expected to be down by only 2.1% on last year. The report predicts beef exports will rise 4.5% and farmgate prices to remain similar to last year. But the strength of the NZ$ against the US$ carries a threat of lower prices.
You don’t have to be a techie to use modern dairy technology, Manawatu dairy farmer Laura Barr told Feds Dairy Council’s pre-meeting tour. More on page 6
When you’ve grown up on the land, you don’t scare easily. Risk is part and parcel of any rural business. And unlike some big city insurers, we don’t do everything we can to avoid it. We stare it in the face, assess it, and provide the advice to put you in control.
Ask around about us, call for some advice on 0800 366 466.
That’s what works out here. FMG 0034
Growers leader Neil Trebilco takes the middle road ahead of crisis meeting.
page 12
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Sheep, beef profit up p e t e r bu r k e
kiwifruit meeting
Crafar crunch this week WEDNESDAY THIS week is looming as crunch day for the sale of the Crafar farms to the Chinese company Shangahi Pengxin. In the wake of last week’s High Court judgment, Landcorp chief executive Chris Kelly told Rural News the receiver KordaMentha had set this as the deadline after which “all bets are off.” Landcorp has signed an agreement that will see them effectively employed as sharemilkers for Pengxin and manage the 16 farms if the deal goes ahead. Kelly says he was “surprised” at Justice Miller’s judgment and says it now comes down to a call on whether Landcorp or any other New Zealand purchasers of the farms would be the better managers of the farms. Landcorp has been asked by Pengxin to provide extra information to the Overseas Investment Office (OIO) for use by them in making a further recommendation to the Government which will then decide. One group pleased with the decision is the Michael Fay-led consortium. A spokesman, Alan McDonald, says it had always been their position that the original decision wasn’t in the best interest of New Zealand and that it didn’t bring any economic benefits. “We’re to page 3