High wire worries
compact baler
The AAA says feeder wires across gullies should be banned. page 12
A one-man baler-wrapper for small paddocks with tight access. page 41
Rural NEWS
stag sales Averages are up as buyers chase top genetics.
page 10
to all farmers, for all farmers
january 24, 2012: Issue 507
www.ruralnews.co.nz
Euro zone crisis fears overplayed? p e t e r bu r k e
NEGATIVE TALK about economic problems in Europe affecting New Zealand could become a self-fulfilling prophecy, warns Beef + Lamb New Zealand chairman Mike Petersen. Some people seem to want to talk down the price of our lamb, especially in the UK, but the reality is there is no surplus of quality food in the world today. “There’s definitely been pressure in the market to the higher prices being asked, but at the end of the day it appears stocks have cleared as well as expected.” Retailer discounting has helped. “The result is the sales have been quite solid rather than spectacular, throughout the Christmas season.” Petersen says he’s not worried about the discounting strategy because retailers do it all the time for a variety of reasons to get customers
into stores. They know they attract customers who will buy other goods as well. “I think the margins on lamb have been pretty high for the retailers and now they are having to trim these. This will benefit the New Zealand farmer and to be honest I think that’s a good thing. I have never heard an importer yet tell me they have been buying lamb too cheaply.”
In 2011 New Zealand filled only 85% of its quota to Europe but if people in Europe and the UK aren’t prepared to pay the price to ensure viable farming in NZ, then we have to sell elsewhere, says Petersen. Silver Fern Farms chief executive Keith Cooper says the Euro zone crisis is all about ‘currency’ and New Zealand dollar appreciation against all our major trading partners’ currencies. That will
have some impact on farm-gate prices. “The key point is over the last three years since we’ve had this global scene on our hands prices for all New Zealand lamb, beef and venison products have increased and that’s probably due to decreased production. “I don’t see any of that changing. The world is still searching for protein. The demand continues to increase and supply continues to languish.”
Bumper yields of barley and grass seed are on the cards in Canterbury, but elsewhere the picture’s not so bright. Harvest wrap p46
When it comes to insurance, one size doesn’t fit all. Every property, business, or family is unique – with a unique set of risks. Which is why we don’t give you pre-packaged insurance policies. It’s just one of the things that makes us different.
Ask around about us, call for some advice on 0800 366 466.
That’s what works out here. FMG 0030
Look at Asia says KPMG pa m t i pa
EXPORTERS SHOULD turn more to Asia as Europe faces increased risk of widespread recession, says Ian Proudfoot, KPMG’s head of agribusiness. High-value exports to Europe such as specialist dairy products, prime lamb cuts and wine are likely to be hit after Standards & Poor’s downgrade at the weekend of nine Euro zone countries, he warns. In contrast, New Zealand’s exports to Asia are general commodities and we need to look at how to get better value out of them, as money gets tight in Europe. “What we haven’t seen in Europe yet are the austerity measures that will be necessary. Britain has started, but a number of other countries need to go there in a big way. “If France defaults then the whole thing gets pretty difficult. If it doesn’t deteriorate from where it is at the moment, and the US economy seems to be getting a bit of growth, then things should pick up. If we get a full-blown recession in Europe then I think we are in a difficult position as a global economy.” With higher cost of debt, the French Government faces increased challenges to refinance to page 3