ANIMAL HEALTH
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NEWS
Oral-free rams sell well at annual stud ram sale. PAGE 22
Axial Flow combines updated for 2020. PAGE 25
Dairy leader’s award richly deserved. PAGE 9
TO ALL FARMERS, FOR ALL FARMERS JANUARY 14, 2020: ISSUE 692
www.ruralnews.co.nz
Ag outlook positive PETER BURKE peterb@ruralnews.co.nz
THE LATEST MPI report on the state of NZ agriculture points to another good year ahead – with export revenue from the sector expected to rise by 3.3% in the year ending June 2020. In dollar terms, this means that the primary sector’s export revenue will total $47.9 billion. The rise in revenue, the report says, is due to an 8.4% increase in dairy revenue – meaning the sector will earn $19.6 billion dollars. Meat and wool will reach $10.4 billion – up 2.5%. Horticulture will increase by 4.7% to reach a total of $6.4 billion. Export earnings from arable will be up slightly – as will revenue from ‘other’ primary exports, which includes processed foods and dairy blends. However, forestry exports are forecast to fall by 12.8%. MPI says a lot of these gains can be attributed to rising global commodity prices and the weak NZ dollar. The report says that while there is uncertainty in the farming sector, there are indications that confidence is returning. In terms of the meat sector, the report notes the impact of African Swine Fever (ASF) in China has changed the face of global protein trade. With an estimated 40% of China’s pig population lost to ASF; that country has turned to NZ to make up this protein deficit. The report notes that NZ meat exports to China have risen from 20.8%
in 2017 to the present 39.9%. There is now demand in China for our prime cuts and also manufacturing beef, which has created competition with the traditional USA market. While the outlook for meat is positive, there is more bad news for wool with the value of its exports forecast to reach a record low of $490 million. Once again the horticulture star shines brightly with total exports up by
4.7%. Kiwifruit leads the way followed by wine along with apples and pears. It is perhaps important to note that while the statistics combine apple and pears, in actual fact pears just make up a small portion of total exports. Agriculture Minister Damien O’Connor says the results show an outstanding performance on the part of the primary sector. He says despite the decline in cow
and sheep numbers the outlook is very positive. He says the ongoing growth in the horticultural sector is another positive. He says considering the uncertainty the sector is facing at home – with weather events, changes in government policy and on the geopolitical front with trade issues – NZ farmers have done a great job. • Debt warning pg 7
Keeping up with the Jones’s THE MAN behind New Zealand’s newest agricultural training venture is a local farmer and entrepreneur – with a proven track record in the sector. Matt Jones launched Agri Training Ltd, based at the former Winchmore Research Station, near Ashburton, where an official opening was held just before Christmas. The facility will initially offer a two-year Diploma in Agriculture and an 18-month Diploma in Agricultural Business Management under City and Guilds accreditation. For Jones, it is the latest venture in a portfolio of recruitment and training companies covering agriculture and construction – with a reach as far as London. – See the fully story page 10
FONTERRA PIONEER EXPECTS MUCH BETTER ONE OF the architects of Fonterra says he’s very disappointed with the co-op’s performance over the years. Tirau farmer, Tony Wilding says farmers expected better when they formed the co-op in 2001. “It’s not the performance we had in mind when we formed Fonterra,” he told Rural News. Wilding received a New Zealand Order of Merit in the New Year’s honours list for his contribution to the dairy sector and community. He was part of the negotiation team that merged Kiwi Cooperative Dairies and New Zealand Dairy Group, with the New Zealand Dairy Board to form Fonterra. With the negotiations tying up then NZDG chairman Henry van der Heyden and his deputy John Roadley for months, Wilding stepped up to serve as NZDG’s acting deputy chair. Despite his criticism Wilding fully supports Fonterra, pointing out he’s happy with the shift in strategy. Wilding is also happy that “the days of hiring high-flying overseas CEO” are over. He fully supports the appointment of New Zealander Miles Hurrell as chief executive last year. “There is nothing wrong with us, Kiwis”. • See ‘Dairy leader’s award richly deserved’ – page 9
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