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Review calls for urgent action on livestock emissions. PAGE 8
A chariot that will attract many.
Solar halves farm’s power bill. PAGE 38
PAGE 42
TO ALL FARMERS, FOR ALL FARMERS MARCH 5, 2019: ISSUE 671
www.ruralnews.co.nz
Sweet and sour SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA’S MILK price review last week was a mixed bag, says Federated Farmers vice president Andrew Hoggard. Most farmers will be happy with the 30c lift in the milk payout range but worried to see the dividend range dip by 10c. Hoggard says for most farmers the milk price “is the main thing that matters”. “The milk price is sweet; no complaints there,” he told Rural News. “But when farmers delve deeper and realise their return on investment is down, there will be some cause for concern.” Hoggard remains hopeful Fonterra’s portfolio review will help bolster returns from its branded business. The co-op will update farmers on the review when announcing its interim results on March 20.
Fonterra last week lifted its 201819 milk forecast price to $6.30-$6.60/ kgMS, up from the $6.00-$6.30 range announced in December; forecast earnings were revised down to 15-25 cents per share, from 25-35c/share. Chairman John Monaghan says the improved milk price forecast reflects the increases in global milk prices over the last quarter. “Since our last milk price update in December, global demand has strengthened,” he says. This is driven mostly by stronger demand from Asia, including Greater
China. The European Union’s (EU) intervention stocks of skim milk powder (SMP) have also now been cleared for the season and, as a result, Fonterra expects demand for SMP to be strong. The co-op will not pay an interim dividend; any full year dividend can only be paid at the end of the financial year and will depend on the coop’s full year earnings and balance sheet position. Monaghan says although the milk price is strong the co-op’s earnings performance is not satisfactory and
it needs to deliver farmers and unit holders a respectable return on their investment. The board is making progress on a full review of the strategy which includes a review of the dividend policy, he says. “We are taking a close look at our business with our portfolio review, where we can win in the world, and the products and markets where we have a real competitive advantage. We need a fundamental change in direction if we are to deliver on our full potential. We TO PAGE 4
Best of the best Agriculture Minister Damien O’Connor congratulates Eugene and Pania King, owner/operators of Kiriroa Station, Gisborne and one of three finalists in this year’s Ahuwhenua Trophy competition for excellence in Māori Farming Award announced at Parliament last month. See more on the event and profiles on all the finalists pages 36-37. PHOTO BY ALPHAPIX.NZ
DRYING OUT PETER BURKE peterb@ruralnews.co.nz
REPORTS FROM many regions say the green grass seen on farms in January has now turned brown. Certainly this is so on the east coast of both the North and South Islands. In Waikato, the farm consultancy company AgFirst says things are looking dry on farm. Steven Howarth told Rural News they had a good spring and summer with plenty of feed. But this has burnt off and the promised rain that fell a week ago wasn’t the quantity they were looking for. “The conditions have created some challenges for farmers with some struggling to get space at processing plants to get their stock killed,” he says. Howarth says lamb performance has also been variable: good growth rates for some while others struggle with the dry conditions. Beef cattle have had a good summer, says Agfirst, but now the challenge is getting stock killed after farmers held them back to put on extra weight. With rain and warm temperatures, the warning is out to farmers to monitor spore counts as there is a risk of facial eczema in some regions, notably the King Country. “But countering that some cold spells have reduced the risk,” Howarth says. Apart from this, Howarth says relatively good livestock prices have helped keep up morale onfarm.
NO MILK.
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We’re here for the good of the country. FMG0550RNFPS_NM