Early Bird I Thursday July 11th 2024

Decision day is here for Synlait shareholders, Climate Minister charts course for New Zealands’ green future and Lincoln University unveils groundbreaking energy farm project. 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! Decision day is here for Synlait shareholders Synlait Milk faces a critical juncture as shareholders prepare for a pivotal vote today in Dunsandel, Canterbury. The meeting will determine whether the dairy processor can accept a $130 million lifeline from its major shareholder, China's Bright Dairy. Chairman George Adams describes the situation as a 'vote or die wondering' moment for shareholders. The loan is crucial for Synlait to meet a $130 million payment due to its banks on Monday. Bright Dairy, holding a 39.01% stake, cannot vote on the resolution. The company's second-largest shareholder, a2 Milk with a 19.8% stake, has yet to reveal its voting intentions. Adams encourages all shareholders to participate, noting that even if a2 Milk opposes the proposal, other minority shareholders could still approve it. He warns that a failed vote would place directors in a precarious position, potentially leading to voluntary administration. The New Zealand Shareholders Association has announced its intention to vote in favour of the loan, viewing it as essential for the company's survival. Synlait is also working on a capital raise to address its strained balance sheet. The company's main challenge stems from its underutilised $400 million nutrition facility in Pōkeno. Synlait's shares have plummeted 84.3% over the past year, trading at 25.5 cents. The vote represents a critical moment for the company's future and its stakeholders. Climate Minister charts course for New Zealands’ green future Climate Change Minister Simon Watts has unveiled the Government's new climate strategy at an event in Auckland. The three-page document outlines five core pillars aimed at reducing the impacts of climate change and preparing for its future effects. The strategy focuses on resilient infrastructure, credible climate transition markets, abundant clean energy, world-leading climate innovation, and nature-based solutions. While the document sets aspirational goals, it lacks specific details on implementation. Watts announced that consultation on the Emissions Reduction Plan for 2026 to 2030 will begin within the next two weeks. This plan will detail policy proposals across various sectors, including energy, transport, agriculture, and waste. The climate announcement follows recent changes to fuel efficiency standards, which have been relaxed after industry lobbying. Watts defended this move, stating it aligns New Zealand with Australian standards and will have a minimal impact on overall emissions. Watts has also emphasised the opportunities presented by climate change. He highlighted New Zealand's potential in clean tech and agritech sectors, particularly in developing solutions for water transportation and livestock emissions reduction. Watts framed climate change not just as a challenge, but as an opportunity for New Zealand to leverage its strengths in innovation and technology. He stressed the potential for exporting low-emission technologies to help other economies transition to a low-carbon future. As the Government sets out its climate strategy, the focus now turns to the upcoming Emissions Reduction Plan and how these ambitious goals will be translated into actionable policies. Federated Farmers challenge current water regulations Federated Farmers is urging a pause in the implementation of freshwater regulations by regional councils until the government introduces its new policy. This call comes as part of their submission on the Resource Manager Amendment Bill. The federation argues that some councils, such as Otago, are implementing policies based on the previous government's approach, despite the current administration's intention to replace the National Policy Statement for Freshwater Management. In their submission, Federated Farmers requests the exclusion of the water quality standard, Te Mana o te Wai, and the current hierarchy of obligations from resource consent applications. They contend that the current process lacks balance between environmental, economic, social, and cultural values. They are also seeking removal of low slope map legislation controlling grazing access for livestock and calling for the repeal of winter grazing regulations. They suggest farm plans as a more effective approach to managing these issues. Additionally, Federated Farmers is requesting a three-year suspension of the requirement for councils to identify significant natural areas. They argue that this policy has led to overly broad restrictions on land use and development in some regions. Fed Farmers maintains that continuing to develop plans under the current framework wastes ratepayer money and creates uncertainty for rural communities. Their submission highlights the ongoing debate over New Zealand's freshwater management policies and their impact on the agricultural sector. Lincoln University unveils groundbreaking energy farm project Lincoln University has unveiled an ambitious energy and agriculture initiative, aiming to revolutionise land use. The university intends to create a four-hectare energy farm, merging high-value horticulture with commercial-scale renewable energy generation. Contingent on regulatory approval, the Energy Farm will occupy university-owned land near the main Lincoln University grounds. This innovative endeavour will host a wide array of experiments and crop trials, developing cutting-edge practices that could be adopted worldwide. The energy farm will feature roughly 2,800 advanced solar panels, generating about 2.3 gigawatt-hours of clean energy annually. These dual-sided panels will use an east-west tracking system, allowing for crop cultivation both alongside and underneath the structures. While exact crop choices are yet to be determined, the university is considering options such as blueberries or other high-value berry varieties. This approach moves beyond traditional livestock grazing often seen at solar installations, which mainly manages vegetation growth. A smaller, dedicated research array will also be constructed, offering complete manual control for testing various configurations and technologies. Vice-Chancellor Grant Edwards highlighted the project's significance, stating it will demonstrate multi-use methodologies for productive land while advancing agricultural innovation. The university aims to lead the transition towards a more sustainable future in the land-based sector. To realise this vision, Lincoln University is collaborating with Solar Bay, a leading renewable energy provider in the region. Upon completion in mid-2025, the energy farm will boost the university's total power generation to cover 18% of the Lincoln grounds' annual electricity needs. The university plans to utilise most of the generated energy on-site, with intentions to donate excess power to nearby communities during low-demand periods. Rain brings relief to North Otago farmers North Otago farmers are welcoming recent rainfall after enduring a challenging dry period. The region, which had been grappling with drought-like conditions, has seen a dramatic turnaround in June. Otto Dogterom, North Otago's Federated Farmers leader, says that the outlook has improved considerably. After receiving up to 168% of normal June rainfall, farmers are now more optimistic about their immediate future and upcoming growth. The area had been struggling with a very dry autumn, with Oamaru receiving only 55% of its normal rainfall from March to May. This led to significant soil moisture deficits, prompting many farmers to reduce their livestock numbers and allocate resources to winter feed. However, June brought unexpected relief. Chris Brandolino from Niwa's National Climate Centre reports that Oamaru received 72mm of rain in June, far exceeding the norm. Other areas in North Otago also saw above-average rainfall. While July may see lower rainfall initially, there's potential for more heavy rain later in the month. Niwa's three-month outlook indicates that North Otago is likely to experience near-normal rainfall moving forward. Despite the recent rainfall, Brandolino cautions that farmers aren't entirely out of difficulty yet. He likens the situation to a business recovering from a long period of deficit, emphasising the need for continued above-normal conditions to fully overcome the earlier dryness. See omnystudio.com/listener for privacy information.