MANAGEMENT Ngai Tahu Farming sets the standards high. PAGE 31
ANIMAL HEALTH Stud insures against sudden death of sheep. PAGE 36
RURALNEWS
BLNZ AGM Chairman warns against infighting and creating divisions.
PAGE 17
TO ALL FARMERS, FOR ALL FARMERS
APRIL 5, 2016: ISSUE 604
www.ruralnews.co.nz
Messages confusing PETER BURKE peterb@ruralnews.co.nz
CONFLICTING MESSAGES from Fonterra and market analysts is causing grief to dairy farmers. That’s the view of Labour’s primary industries spokesman Damien O’Connor who says that, on one day alone, Fonterra chair John Wilson was saying the market should pick up at the end of the year, while HSBC analysts were saying there is no chance this is likely to happen. O’Connor says farmers who want to make better long term decisions are getting messages that are most alarming because they need a clear steer. “While of course it is hard to predict the medium term market situa-
tion, the analysts and the farmers who own the company pretty much need to be on the same page when it comes to advice, and that is not happening,” he told Rural News. “Fonterra hasn’t helped with its poor communications to farmers and the wider public. I have seen statements that are hopeful rather than helpful and I think farmers are getting a little tired of that and are seeing through it.”
O’Connor says Fonterra has to speak out of both sides of its mouth given that it’s talking to investors and unit holders on the one hand and to farmer suppliers on the other. He believes farmers need to take a very conservative strategy in their businesses. Farmers who have already wound back their costs should continue to do so and others who haven’t should do so immediately.
“I [favour] the long term projections by economist Peter Fraser that a $5.00 payout is the norm, plus or a minus a dollar. This means in a good year a $6.00 payout and in a bad year $4.00 and this is probably the paradigm farmers should be working in.” O’Connor believes the dairy industry is in for a major restructure and says there are indications that land prices will fall 20-40%.
THIRSTY WORK!
PAM TIPA pamelat@ruralnews.co.nz
MEAT INDUSTRY Excellence (MIE) chairman Dave McGaveston has dismissed as “naïve” the Beef + Lamb NZ board argument that further funding of MIE is futile. MIE won’t give up on its campaign for consolidation, he says, despite two proposals to BLNZ being dumped by the farmer vote. A remit for more funding for MIE was opposed by 75% of the vote and another to replace the two processor company representatives on the BLNZ board with MIE representatives was opposed by 76%. McGaveston told Rural News the results weren’t a surprise because farmers have switched off from engagement with BLNZ and “a lot of farmers didn’t even open their BLNZ envelope”. “They are going broke while BLNZ is still focused inside the farmgate.” McGaveston says BLNZ’s argument that meat companies are not interested in reform and therefore funding MIE is worthless does not hold water. “Why would the processing companies lead reform?” he asks. “There is no way, because it means that some of them will lose their positions. Everyone is in patch protection including BLNZ. “Sitting back waiting for the processors to initiate reform is not going to happen – it’s just a dream.” TO PAGE 3
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A FFER P AV R AIL IL AB O LE F N OR LY
The inaugural Farmstrong Fit 4 Farming national cycle tour is now travelling the length of the country to promote the need for farmers to look after their physical and mental health. Rural News caught up with the peloton on the most ambitious part of the cycle tour – Molesworth Station – last week. Twenty riders have cycled from Ngatea to Invercargill from March 18 to April 2 and have contributed towards the overall Farmstrong Challenge goal of 4 million km cycled by July 2016. The Fit 4 Farming Cycle Tour is the brainchild of former farmer Ian Handcock and his charity Fit 4 Farming. PHOTO: RICHARD COSGROVE. More on p 14
MIE WON’T BUDGE
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