OPINION
ANIMAL HEALTH
NEWS
The cartoonist who gave rural NZ an identity. PAGE 21
More testing and survelliance due after TB find. PAGE 30
Government funding for proposed irrigation scheme. PAGE 14
TO ALL FARMERS, FOR ALL FARMERS MARCH 21, 2017: ISSUE 626
www.ruralnews.co.nz
Share up or miss out! SUDESH KISSUN sudeshk@ruralnews.co.nz
SILVER FERN Farms (SFF) is urging its non-shared farmer suppliers to become shareholders. SFF chairman Rob Hewett says if suppliers want priority in killing space and contracts, dividends and financial rewards, they must ‘share up’. Hewett told the recent NZ Co-ops business leaders forum that “a large chunk” of animals come from nonshared suppliers. He says the co-op wants “deep, longstanding relationships built on trust and linked to market” with its suppliers. SFF shareholders get priority for killing space, contracts, advice, events and market tours. However, Hewett points out that non-shared supply adds value to the company too. “But we want to prioritise shareholder farmer suppliers ahead of others. “If you are shareholder supplier and you’ve got animals and there’s a nonshared supplier with the same number of animals, we will give priority to the shareholder. “If you want dividends, access to financial rewards, access to priority programmes in space and contracts, you need to share up. You don’t have to share up, but remember you won’t be given priority treatment, all things being equal.” Meanwhile, Hewett has defended the co-op’s decision to take on a 50% investor. He says SFF is now in a better position to pay a dividend to sharehold-
business, and believe me we tried to raise capital from the shareholders.” According to Beef + Lamb NZ, the annual return on total farm capital is 1%. Hewett says this hindered capital raising among farmer shareholders; poor returns are also discouraging new entrants to the industry. “Every time I go into a room to talk to my shareholders [I see] they are getting greyer and greyer and greyer; the average age of sheep farmers is 58 and getting older.” So the SFF board and management
ers, after its deal with Chinese company Shanghai Maling, which poured $261million into the co-op in exchange for a 50% stake. “With our new capital structure we will be able to pay dividends now,” he adds. Hewett says SFF went looking for outside capital after its shareholders failed to cough up. He says in 2012 the co-op went to shareholders to raise capital, getting only $22 million of the $100m required. “We needed more capital for the
embarked on a three-year global search and Shanghai Maling “came to the top of the pile”. Hewett says he is still asked if SFF remains a co-op after the Shanghai Maling deal. “We are constitutionally enshrined to remain a co-op; our co-op owns 50% of the operating company.” Farmers own 100% of SFF Co-op Ltd, which in turn owns 50% of SFF Limited, the processing arm with Shanghai Maling owning the other 50% stake.
Flood damage THE GOVERNMENT is looking into claims by flood-stricken farmers that floating logs were responsible for causing major damage. After a meeting with about 60 farmers in Kawakawa Bay [South Auckland] last week, Primary Industries Minister Nathan Guy said the general feeling was that logging was “a general issue”. “There are some logging issues where slush has come down hill and come down into local streams and drains,” he told Rural News. “That’s a concern and I have asked my officials to work closely with the forestry company and the council.” Guy says water reticulation, fences and slips were the main casualties of the floods that affected the Coromandel and Franklin districts. “The damage here is significant and the recovery phase will be a challenge for some badly affected farms,” says Guy, who visited a storm-damaged farm belonging to Deputy Auckland Mayor Bill Cashmore at Kawakawa Bay. Continued on page 5
CONCERNS IGNORED PAM TIPA pamelat@ruralnews.co.nz
THE WAIKATO Regional Council is forging ahead with the regulatory process on Healthy Rivers/Wai Ora: Proposed Waikato Regional Plan Change 1 after a Horticulture NZ-led court action failed. The regional council had received at least 1000 submissions to plan change 1 by the closing day of March 8. Horticulture New Zealand (HortNZ) and five other primary industry groups were not successful in an action in the High Court in Auckland to stop the plan change process. They wanted the process put on hold until the hearing of a judicial review application later in the year. HortNZ and other groups applied before Christmas 2016 for a judicial review of the process as they want the plan change paused until an area of north Waikato is re-integrated into the process following consultation with Hauraki iwi. The regional council has taken part of the area out of the submission process until iwi consultation is completed. HortNZ’s application is still due to be heard in June, but the recent court action was not successful in putting the process on hold until then. The council also decided not to extend the deadline, despite requests for an extension, and stuck to the deadline of March 8.
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