Early Bird I Friday September 6th 2024

Synlait signals confidence with higher milk price outlook, Alliance Group inks deals to elevate New Zealand meat in Asian markets, and HortNZ calls for recognition in governments emissions plan. 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! Synlait signals confidence with higher milk price outlook Dairy farmers can look forward to a more lucrative season ahead as Synlait announces an increase in its forecast milk price for 2024/2025. The company has raised its outlook to $8.60 per kilogram of milk solids, up from the earlier projection of $8.00. This upward revision comes as welcome news for the dairy sector, although Synlait maintains a cautious stance. The company acknowledges the volatility of global dairy commodity markets, especially at the season's outset, and continues to take a measured approach in its forecasting. Retaining its milk supply remains a top priority for Synlait. To ensure its on-farm offering stays attractive to farmer suppliers, the company has committed to delivering a competitive milk price. Additionally, Synlait has enhanced its advanced rate profile for the 2024/2025 season. Looking at the current season, Synlait will confirm its final milk price for 2023/2024 when it releases its full-year results on the 30th of September. This announcement will provide closure on the current season and set the stage for the year ahead. Alliance Group inks deals to elevate New Zealand meat in Asian markets Alliance Group has taken major steps to grow its presence in South-East Asia. The company recently signed two key agreements in South Korea and Malaysia, witnessed by Prime Minister Christopher Luxon during his trade mission to the region. These Memorandums of Understanding (MoUs) with South Korean distributor Daesang Corporation and Malaysian company Fatric aim to expand Alliance's premium red meat offerings in both countries. In South Korea, Daesang will champion Alliance's award-winning Lumina Lamb, educating customers and consumers about New Zealand lamb. The agreement aligns with the Free Trade Agreement between the two nations, which now allows tariff-free sheepmeat exports to South Korea. Alliance's partnership with Fatric in Malaysia builds on a 30-year relationship. It focuses on growing the company's premium lamb and mutton program, leveraging Alliance's Pukeuri processing plant in Oamaru - one of only five New Zealand lamb plants licensed to supply Malaysia. Willie Wiese, Alliance Group's chief executive, sees significant opportunities in both markets. He noted the potential to increase awareness of Lumina Lamb and other premium products in South Korea, aiming to create more value for farmer-shareholders. In Malaysia, Alliance and Fatric plan to collaborate on innovation, developing value-added food solutions, retail-ready products, and ready-to-eat options tailored to Malaysian consumers. Wiese highlighted Malaysia's rapid economic growth and urbanization as key factors driving increased demand for premium sheepmeat. Fatric's extensive distribution network across West Malaysia, including wholesale, retail, and e-commerce channels, positions Alliance well to promote its premium Pure South, Silere Alpine Origin Merino, and Pure South Handpicked brands. The agreements were showcased during Prime Minister Luxon's official trade delegation, which aimed to strengthen trade ties and highlight New Zealand's reputation for high-quality, safe, and nutritious food and beverages. Government vows to eradicate foot and mouth disease if detected Our government has reaffirmed its dedication to rapidly eliminate any occurrence of foot and mouth disease within the country. This commitment comes in light of a recent economic impact analysis that highlights the devastating consequences an outbreak could have on the nation's agricultural sector. Biosecurity Minister Andrew Hoggard revealed that an incursion of the disease would lead to an immediate halt in most animal product exports. The potential ongoing reduction in export values could reach approximately $14.3 billion annually, according to the analysis conducted by the New Zealand Institute of Economic Research. The government has endorsed a strategy of urgent eradication, which may include vaccination if deemed necessary. This decision follows the Ministry for Primary Industries' presentation of three management options to Cabinet. The chosen 'stamping out' approach, with or without emergency vaccination, emerged as the most effective strategy. Using emergency vaccination would take about 10 months, incur around $1.9 billion in operating costs and compensation, and result in a one-time $8.4 billion economic hit due to lost trade. Alternatively, eradication without vaccination would extend to 15 months, cost $2.98 billion, and lead to a $15.3 billion trade loss. In contrast, living with the disease would inflict an ongoing yearly economic toll of $14.3 billion. Minister Hoggard emphasised the importance of maintaining strong border controls and resilient biosecurity systems as the initial line of defence. He stated that the government remains committed to these measures to minimise the risk of disease introduction. The release of the economic analysis report and the Cabinet Paper on the initial strategic response aims to increase awareness among New Zealanders about the serious impacts of foot and mouth disease. It also underscores the critical nature of the country's mitigation strategies. HortNZ calls for recognition in governments emissions plan Horticulture New Zealand (HortNZ) is making a strong case for the inclusion of the horticulture sector in the government's second Emissions Reduction Plan. This call comes as the current plan, outlining actions to reduce emissions between 2026 and 2030, makes no mention of horticulture, fruits, or vegetables. Michelle Sands, acting chief executive of HortNZ, expressed concern over this omission, highlighting the sector's crucial role in meeting emissions reduction targets. She argues that supporting land-use change to horticulture should be a key solution in New Zealand's climate strategy. The horticulture sector's credentials are impressive. It contributes $7.48 billion in value across domestic and export markets while using less than 0.1% of New Zealand's land area and accounting for only 1.1% of the country's greenhouse gas emissions. These figures underscore the sector's efficiency and low environmental impact. HortNZ is advocating for several key inclusions in the new Emissions Reduction Plan. They're calling for clear policy direction supporting the transition of 14,000 hectares to horticulture, as recommended by the Climate Change Commission. The organisation also wants recognition of diversification into horticulture as a key policy and elevation of 'enabling the supply of fresh fruits and vegetables' to a matter of national importance under resource management legislation. HortNZ is pushing for the establishment of a national framework for commercial vegetable production to address challenges posed by regional regulations. With the recent disestablishment of the Government Investment in Decarbonising Industry Fund, they're also calling for a new fund to reinvest Emissions Trading Scheme proceeds into greenhouse decarbonisation. In a bold move, the organisation is urging the government to commit to doubling the horticulture sector's value by 2035 as part of its emissions reduction strategy. This aligns with the goals of the Aotearoa Horticulture Action Plan, a strategy co-owned by government, industry, science, and Māori. Craigmore expands apple empire with new orchards in Hawke's Bay and Gisborne New Zealand's apple industry is set for a growth in production as Craigmore Sustainables expands its horticulture holdings. The company has acquired two apple orchards, adding over 110 hectares to its canopy area. The newly acquired properties, Ngaruroro orchard in Hawke's Bay's Twyford region and Patutahi orchard in Gisborne, are located in top-tier apple-growing areas.  Craigmore aims to enhance the Ngaruroro orchard, which was earlier owned by Kiwi Crunch. The company plans to introduce premium apple varieties and update the orchard structures. This winter, redevelopment will commence on more than 21 hectares of the property. At Patutahi, previously under Judco ownership, Craigmore will develop 16 hectares. The company intends to plant premium apple varieties in winter next year. These initiatives are expected to increase not only the orchards' yield, but also the value per tray of apples produced. These acquisitions mark Craigmore's initial investments on account of a European institutional investor. The company will oversee governance and management for the client. Craigmore already manages 290 hectares of apple orchards across Hawke's Bay and Gisborne. This includes a recently developed 180-hectare orchard near Ongaonga. This expansion underscores the positive outlook for New Zealand's apple industry, with increased production and focus on premium varieties likely to enhance the sector's global competitiveness. See omnystudio.com/listener for privacy information.