Early Bird I Friday July 5th 2024

Big victory for wool, and sheep farmers, tariff removals a win for wood processing and manufacturing industry, and free online courses help educate hunters. Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather! Big victory for wool, and sheep farmers Wool has been recognized as an 'environmental good' under the Agreement on Climate Change, Trade, and Sustainability, an innovative agreement aimed at eliminating tariffs in several countries. This recognition marks a significant win for New Zealand sheep farmers and aligns with a broader trend in global trade agreements towards sustainability. This agreement will remove tariffs on numerous products that promote sustainability and environmental benefits, including wool. Frances Duignan, B+LNZ’s International Trade Senior Manager, has highlighted the organisation's support for New Zealand Government officials throughout the negotiations, which began in 2019.  Duignan hopes this classification will enhance the broader recognition of wool as a sustainable product. While B+LNZ’s levy-funded activity does not directly include wool, the market outlook for wool is crucial to sheep farmers, so these positive changes are welcomed. The ACCTS also includes a framework to eliminate fossil fuel subsidies, which will help level the playing field for New Zealand farmers competing with countries that benefit from such subsidies. It establishes principles-based guidelines for voluntary eco-labeling programs, ensuring eco-labels provide meaningful information to consumers without becoming trade barriers. As global markets increasingly seek to verify product sustainability claims, these guidelines will be pivotal for New Zealand's sheep and beef exports. Confidence returns to sheep milk sector Meanwhile confidence is returning to the budding sheep milk industry as major players Maui Milk and Spring Sheep commence the new production season with previous high inventory levels now depleted. Spring Sheep, supported by Pamū, is experiencing a resurgence in growth opportunities after two challenging years that hindered farm expansion plans. Maui Milk is similarly optimistic about the milking season, having begun lambing on its Central Plateau farm two weeks ago. This positive outlook follows a tumultuous period in March when the company abruptly instructed suppliers to cease milking due to an uncertain future. However, CEO Greg Hamill reports that 90% of this season's production is already pre-sold, with China remaining the primary market despite past turbulence. One of the issues Maui Milk faced last season was the decline of the informal selling channel, Daigou, which nearly halted during the Covid pandemic. While Daigou remains part of their sales strategy, the company is also expanding through other channels, including e-commerce, in-store sales, and their food group subsidiary in China. Efforts are also focused on diversifying products, particularly targeting nutritional opportunities for the elderly. This season, ten farmers will supply milk, down from fourteen last year, but with a similar forecast volume from 11,000 ewes starting at the end of the month. Spring Sheep, with 15 suppliers milking 15,500 ewes, is forecasted to produce around 25,000 lambs. CEO Nick Hammond states that the company is cautiously balancing supply and demand and will not take on new farmers this season, although the future looks promising as they diversify into new markets. Notably, there are significant opportunities in the Chinese pet nutrition market. Spring Sheep has partnered with a prominent Chinese pet brand to create advanced nutritional products for cats and kittens, a growing market segment as pet ownership in China increases.  The sheep milk industry appears poised for a strong recovery and expansion, driven by innovative market strategies and a renewed sense of optimism among key players. Nestle continues work with Fonterra to reduce on-farm emission Businesses are still feeling the pressure despite the government delaying the pricing of agriculture emissions until at least 2030. Jennifer Chappell, the country manager and chief executive of Nestlé New Zealand, highlighted this during a panel discussion at the Primary Industries NZ Summit. Nestlé has committed to reducing its emissions by 50% by 2030 and achieving net-zero emissions by 2050. Dairy is the single biggest ingredient that Nestlé purchases, accounting for 21% of its Scope 3 or "on farm" emissions. Chappell emphasised that achieving net zero is crucial for safeguarding the future, which is why Nestlé is committed to working closely with Fonterra, its suppliers, and farmers. Fonterra is aiming for a 30% reduction in on-farm emissions by 2030. Since 86% of Fonterra’s emissions come from on-farm activities, the goal is to reduce emissions intensity by a tonne of fat and protein corrected milk (FPCM) collected by Fonterra. This target responds to customer demands and is also driven by commercial factors like insurance and global regulations. Historically, farmers have been asked to focus on providing a good price point, meeting safety obligations, and producing nutritious food. Now, they are being asked to meet new environmental standards that consumers may not directly demand.  Nestlé has established trial farms worldwide to test different approaches and scale up what works, and it is now in the second year of a trial farm with Fonterra in New Zealand. Tariff removals a win for wood processing and manufacturing industry The removal of tariffs for 41 wood products under the 'Agreement on Climate Change, Trade and Sustainability' is a significant boost for New Zealand’s wood processing and manufacturing industry. Mark Ross, Chief Executive of the Wood Processing and Manufacturers Association, believes this new trade agreement will not only bring commercial benefits to New Zealand but also send a strong environmental message to trading partners. As more countries join the collective formed by New Zealand, Switzerland, Costa Rica, and Iceland, the potential commercial benefits for New Zealand's wood products industry are substantial. Ross highlights that wood offers multiple benefits to the country, and the government's support in removing trade barriers and implementing new agreements is a positive step. Export growth, facilitated by this agreement, will help fund the wood processing industry. The production of value-added wood products will encourage greater onshore processing of logs, create more employment opportunities in regional areas, and increase New Zealand's global contribution to embodied carbon storage. The ACCTS also supports the renewable energy sector by establishing rules to prevent harmful fossil fuel subsidies and setting guidelines for eco-labelling. Over 300 environmental goods, including wind and hydraulic turbines, electric vehicles, wool fibre, recycled paper, and wood products, will see tariff elimination upon the agreement's entry into force. This will make such products more competitive, thereby incentivizing their use and investment in related technologies, offering a more environmentally friendly alternative to carbon-intensive construction materials like steel and concrete. Free online courses a shot in the arm for new hunters  The New Zealand Game Animal Council (GAC) has launched an online training course focusing on the basics of pig hunting. This course is part of the Better Hunting platform, made possible by the expertise and contributions of New Zealand Pig Hunting Association members. It covers key topics for pig hunters, including ethics, animal welfare, dog training, working with landholders, personal safety, firearms selection, and responsibilities and obligations. GAC’s General Manager, Tim Gale, says the course is designed to support newcomers to pig hunting in undertaking the activity safely and ethically. The program offers a learning pathway for individuals who have recently obtained their firearms licence and wish to enhance their knowledge of safe and successful hunting.  It is the only resource of its kind for pig hunting best practices in the country, providing free e-learning for New Zealand’s unique and valued pig hunting sector.  In addition to the pig hunting course, the Better Hunting platform offers other free courses, including "Hunting Essentials," which covers New Zealand-specific outdoor and hunter safety and skills, and "Firearms Essentials," which focuses on safe and successful firearms use, including maintenance, sighting in, storage, transport, and technique.  More information and access to these courses are available at www.betterhunting.nz. See omnystudio.com/listener for privacy information.