NEWS
ANIMAL HEALTH
Low interest rates a thing of the past? PAGE 14
There is a growing interest in farming dairy sheep. PAGE 30
RURALNEWS TO ALL FARMERS, FOR ALL FARMERS
MARCH 1, 2016: ISSUE 602
MANAGEMENT Farmers need to change their attitude to fertiliser spreading on hill country.
PAGE 26
www.ruralnews.co.nz
Cows out; sheep in! PETER BURKE peterb@ruralnews.co.nz
IN A move that illustrates the current parlous state of the dairy industry, the country’s biggest farmer is pulling out of dairy and moving into sheep milking. As part of its shift away from dairying, Landcorp’s arrangement to develop further dairy farms in the Central North Island for a private investor, Wairakei Pastoral, is being reviewed.
The state-owned farmer’s strategy will be revealed in the coming weeks, chief executive Steven Carden told Rural News. “What this is going to show – in general terms – is to slow down the amount of dairy development we are looking to do nationally. We have finished the dairy development work in Canterbury and we may do a small amount of dairy development work in a couple of discreet areas – only where the economic
and environmental hurdles can be overcome,” he says. Carden hints that the four Wairakei Pastoral dairy farms coming on line may not go ahead in quite the way originally envisaged. The move away from dairying – a strategy which Carden says is supported by the Government – is aimed at improving cash flow and reducing exposure to the very highs and very lows of the global milk price. He says
this exposure puts real pressure on Landcorp’s bottom line and is not conducive to long term investment. “We want to get away from that.” Sheep milking is one of several new initiatives and Landcorp wants to position itself as a producer of high-earning, value-added products. Its new sheep milking operation, near Taupo, has attracted both local and international attention. TO PAGE 5
BANKS ON THE BRINK? IT DEPENDS how bad it gets before banks take drastic action against deeply indebted dairy farmers. That’s the view of Dr David Tripe – senior lecturer in banking studies at Massey University – who says banks are probably developing a set of scenarios to set a policy for what actions they may take in the future as debt in the dairy industry continues to rise. Tripe believes if somebody is in negative equity and negative debt servicing the banks might have some procedure for selling up – depending on how much cash they could recover by doing this. He says if a bank sells someone up; the chances TO PAGE 3
IN THEY GO! Gordon Lucas, with mate Peter, in action during the Class 2, short head competition at the Waiau Collie Club dog trails, last month. Lucas was one of more than 120 competitors and dogs – from all over Canterbury – who battled it out in the four classes – long head, short head, straight hunt and zigzag hunt – over two days near Waiau, in North Canterbury, during February. The Waiau Collie Club was holding its 88th annual sheep dog trials and also hosting the Farmlands Canterbury Centre Championship for the first time in a number of years. - PHOTO RICHARD COSGROVE. More photos and a report on the event pages 12-13.
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