Rural News 6 May 2014

Page 1

ANIMAL HEALTH

NEWS

Dutch scholarship for Massey student advances artificial insemination study. PAGE 39

Sheep and beef man stays loyal to the industry. PAGE 15

RURALNEWS

MANAGEMENT Running deer with sheep and cattle is the challenge laid down for Anawai managers.

PAGE 30

TO ALL FARMERS, FOR ALL FARMERS

MAY 6, 2014: ISSUE 560

www.ruralnews.co.nz

Less talk, more action SUD ES H K I SSU N sudeshk@ruralnews.co.nz

SHEEP AND beef farming leader James Parsons wants an end to the debate on structural reforms in the sector. Parsons, the newly elected chairman of Beef + Lamb New Zealand, says the matter “must come to a head and be sorted out one way or another”. Apart from grabbing news headlines, the negative focus is undermining confidence. Now the sector must move on and

reclaim its mojo, he says. “It would be great if the sheep and beef sector could sort out the structural debate one way or the other,” Parsons told Rural News. “If we agree on some structural reforms, that will be fantastic; if not, let’s just park it. But let’s not keep going like this for the next five years because that would be unhealthy.” Parsons, a Beef + Lamb director for five years, was elected chairman two months ago after the annual

meeting, replacing Mike Petersen. He wants the sector to stand tall again. “We should be proud to be sheep and beef farmers; we used to have that a few years ago, now its looked down on in pity by dairy farmers. There’s no need for that. “The sector has many great stories to tell: we have world class processors and world class farmers, and we’re the envy of most countries about how we farm. “Yes we have some challenges

we’re working on but they seem to be all we’re focused on. We have lost our mojo a bit.” If there’s a better structure the sector should grab it with both hands, Parsons says. However it is the role of farmer shareholders and processor owners to resolve. Beef + Lamb is happy to play a supporting role if analysis and information is needed. Sheep and beef farmers are watching helplessly as more productive farm TO PAGE 4

A POPULAR BOSS! Federated Farmers Whanganui provincial president Brian Doughty pictured with one of the 70 milking goats that he and wife Rae run on their farm, just north east of Whanganui. The couple has built up a nice little business combining the goats with a small herd of cows which they also run. The Doughtys are among a growing number of farmers who have developed their own branded product, The Lonely Goat, and are genuine ‘farmgate to consumer plate’ producers. More details about their unique farming operation on pages 34-35

Better prospects P ET ER BUR K E peterb@ruralnews.co.nz

GOOD NEWS on the economic front for sheep and beef farmers. Beef + Lamb New Zealand’s latest forecast predicts better prices and strong demand for sheepmeat and beef products from key markets. Its latest report says improved product prices are expected to drive average sheep and beef farm profit up by 35% on the drought-affected level of last season. It estimates farm profit before tax for the 201314 season will rise to an average of $113,700 per farm. BLNZ chief economist Andrew Burtt says total gross farm revenue is expected to increase 9.2% to $460,200, reflecting a 12% increase in sheep revenue. Total farm expenditure is estimated to be up 2.8%, to $346,500, on the back of increases in repairs and maintenance spending. Interest costs dropped by 2.6%, thanks to a slight decrease in farm debt and lower rates. “This season’s forecast average lamb price is $100 per head – up 18% on last year, and 2.5% higher than the average for the previous five seasons. Reduced lamb availability in New Zealand and Europe, combined with strong demand for lamb from Asia and the Middle East, is expected to support lamb prices,” says Burtt According to BLNZ, about 25.6 million lambs were tailed last spring TO PAGE 3

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