Early Bird I Monday August 26th 2024

Fonterra reveals an improved milk price and earnings forecast, Pamu’s losses more than double amid market challenges, and Canterbury butcher carves her way to national victory. 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! Fonterra reveals an improved milk price and earnings forecast Fonterra has delivered a triple dose of good news for dairy farmers, announcing an increase in its forecast milk price, an improved advance rate schedule, and strong earnings expectations for the current financial year. The dairy giant has raised the midpoint of its 2024/25 season forecast farmgate milk price by 50 cents to $8.50 per kilogram of milk solids. The new forecast range now stands at $7.75 to $9.25 per kgMS, up from the previous $7.25 to $8.75 range. Fonterra CEO Miles Hurrell attributes this upward revision to recent improvements in Global Dairy Trade prices. He says that while it's still early in the season with a relatively small proportion of sales contracted, the company is maintaining a wide forecast range to account for market uncertainties. In a move to enhance on-farm cash flow, Fonterra has announced an uplift in its Advance Rate payment schedule. This adjustment will see farmers receive 10% more of the forecast Farmgate Milk Price from December, paid in January, compared to previous seasons. Hurrell credits the co-operative's strong balance sheet for enabling these enhancements over the last two seasons. Adding to the positive outlook, Fonterra expects its earnings from continuing operations for the 2023/24 financial year to reach the top end of the previously announced range of 60 to 70 cents per share. This performance puts the co-op on track for a strong full-year dividend,  Pamu’s losses more than double amid market challenges New Zealand's largest pastoral farmer, Pamu, has reported a net loss after tax of $26 million for the year ending June 30. This marks a wider loss compared to the $9 million deficit recorded in the previous year. The state-owned enterprise, also known as Landcorp,  manages 112 dairy, deer and sheep farms across more than 360,000 hectares of farmland nationwide, and attributes this downturn to several key factors affecting the agricultural sector. Softening sheep and cattle prices have taken a toll on Pamu's bottom line, mirroring challenges faced by farmers nationwide. High interest costs have further eroded profitability, while a decrease in farm and building valuations has added to the financial pressure. A significant swing in milk futures contributed to the wider loss. Last year, Pamu enjoyed a $20 million gain from milk futures, whereas this year saw a $1 million loss, underscoring the volatility in dairy markets. The company's farm portfolio underwent a review, resulting in a $141 million reduction in property values. This adjustment led to a $4 million hit within the net loss after tax, compared to no such impact in 2023. Despite these challenges, Pamu CEO Mark Leslie remains optimistic about the company's role in New Zealand's agricultural future. He emphasised Pamu's potential to contribute significantly to doubling the value of New Zealand exports over the next decade. On a positive note, Pamu reported improved productivity across several key areas. The dairy six-week in-calf rate increased from 65% to 68%, while total milk production rose by 3.6% to 14.2 million kilograms of milk solids. Lambing percentages also saw a modest increase, and total red meat production was up by 4%. Tairāwhiti farmers urged to attend crucial land management workshop Tairāwhiti/Gisborne farmers are being called to attend a vital workshop this week, focusing on the future of land management in the region. The event, titled "Land management for the future of farming in Tairāwhiti," will take place at the Ngatapa clubrooms in Patutahi on Tuesday starting at 5pm. Organizer Kerry Worsnop emphasises the workshop's importance, describing it as essential for the region's farmers. The event aims to bridge the information gap between pastoral farmers and the council's post-cyclone research and planning. Attendees will gain insights into the council's work since the recent cyclones, including post-disaster mapping of vulnerable land and erosion trends. The workshop will also provide guidance on understanding farm-level mapping, a crucial tool for future land management decisions. Worsnop highlights that pastoral farming has had limited engagement with this work so far, despite its significance in shaping the council's approach to future land management in the region. The workshop offers a valuable opportunity for farmers to engage with this research and contribute to regional land use discussions moving forward. The event will feature discussions on how the farming community can address challenges, identify opportunities, and chart a path forward in light of recent environmental events.  Kiwi growers on high alert as Tomato virus threat prompts import ban Biosecurity New Zealand has implemented a temporary ban on all Australian tomato imports, taking swift action to protect local growers from a potential virus threat. The suspension comes in response to the detection of tomato brown rugose fruit virus in South Australia and will undergo a review later this week. This precautionary measure expands on the initial pause of some Australian exports announced last week. Previously, tomatoes from Queensland, where the virus hasn't been detected, were still allowed entry. However, Biosecurity NZ has now decided to halt all imports to ensure comprehensive protection. Tomato Brown Rugose Fruit Virus affects tomatoes, capsicums, and chillies. While it poses no risk to human health, it can significantly impact crop market value by causing spotting, discolouration, and deformities in fruit. Stuart Anderson, Deputy Director-General of Biosecurity New Zealand, emphasizes the need for extra caution while Australian authorities conduct tracing work around the two affected properties in South Australia. He assures that there's currently no evidence of the virus reaching New Zealand, citing routine and robust checks already in place to monitor for such threats. Despite the fact that New Zealand's imported tomatoes typically come from Queensland, Biosecurity NZ is taking no chances. The ban also aims to prevent potential spread through contaminated seeds, highlighting the comprehensive approach to this biosecurity challenge. The situation has raised significant concerns among local growers, particularly those in the greenhouse tomato and capsicum industry. Industry leaders warn that if the virus were to reach New Zealand, it could have severe consequences, potentially causing crop losses of up to 80 percent due to its highly contagious nature. Tomatoes NZ is actively engaging with government officials and industry representatives to strengthen protective measures. They stress that preventing the virus from entering the country is the primary line of defence for New Zealand's horticultural sector. As the situation continues to evolve, Biosecurity New Zealand maintains close collaboration with Australian authorities and local industry stakeholders. They remain poised to adjust measures as needed to safeguard New Zealand's valuable crop production. Kiwi growers are advised to maintain stringent hygiene protocols as a secondary defence against potential virus introduction.  Canterbury butcher carves her way to national victory A Canterbury butcher has risen to the top of her field, claiming the title of Young Butcher of the Year at the National Butchery Awards in Auckland. Sam Weller, from New World Ravenswood in Christchurch, achieved her eight-year goal in a display of skill and determination. The competition challenged competitors to showcase their expertise in a two-hour cutting test. Contestants had to transform a variety of meats, including beef short loin, whole pork leg, lamb shoulder, poultry, and a mystery cut of lamb double saddle, into a display of value-added products. In the Butcher Apprentice category, Anton Rameka from New World Regent in Whangarei claimed top honours. Rameka's win came on his fourth attempt at the competition, demonstrating the value of persistence in the trade. The apprentice competition included a cutting test, multiple-choice exam, and an interview with the judges. Apprentice head judge Peter Farrelly noted the high overall standard of the competition, praising Rameka's impressive technical understanding and thorough approach to his work. Both Weller and Rameka have secured more than just trophies with their wins. They've each earned an all-expenses-paid trip to Paris for the upcoming World Butchers Challenge, where they'll have the opportunity to showcase their skills on an international stage. 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