Early Bird I Thursday June 27th 2024

2023 the most expensive season for dairy farmers in a decade, petition to keep live animal exports banned makes its way to parliament and could beef offal make Brussel sprouts tasty? 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! 2023 the most expensive season for dairy farmers in a decade The 2022-2023 season was the most expensive in a decade for dairy farmers, according to the DairyNZ Economic Survey. The survey shows how dairy farmers have been grappling with inflation, which has led to significant changes in their expense structures and the overall impact on their businesses. DairyNZ head of economics, Mark Storey, noted that the combination of a lower milk price and increased on-farm costs compared to the previous season resulted in a decrease in operating profit to $2.57/kg MS, down from $3.46/kg in 2021-2022. For owner-operators, operating expenses rose by about 5% in the 2022/23 season, reaching $6.67/kg, the highest in the past ten seasons. Feed remains the largest cost, accounting for around 30% of total farm expenses, followed by labour at 19% and maintenance at 18.7%. Feed costs have been the largest operating expense on dairy farms since the 2007-2008 season. The milksolid payout for the 2022-2023 season was above average at $8.68/kg MS. Although lower than the previous season, it was still a relatively high payout, which helped farmers manage these record-high operating expenses.” Sharemilkers also faced an increase in operating expenses, which rose to $3.76/kg MS. Additionally, the average milksolids payout decreased to $4.14/kg MS. Despite these economic challenges, sharemilkers managed to maintain profitability and positive returns. Heading into the new season, Storey advised that farms continue to operate with caution in the tight economic environment, emphasising the importance of managing costs and budgets effectively. East Coast farmers count the cost of more storm damage Federated Farmers Gisborne/Wairoa president Charlie Reynolds is calling for emotional support for farmers after the region was hit by rain, wind, and flooding this week. Just a year and a half after Cyclone Gabrielle, this storm has become an emotional "trigger point" for many farmers and growers in the area. Reynolds reported that some farms, which had recently finished replacing fences along waterways, have seen their efforts washed away again. This repeated damage has left farmers wondering how to manage financially after borrowing money for repairs. The full impact of the storm will not be known for at least three or four days due to impassable roads. The region is also dealing with the emotional toll of the recent deaths of three fishermen who went missing on Monday.  Reynolds stressed the importance of emotional support, noting that knowing people and friends are there for each other is crucial.  Calls for farmers to communicate their needs with maize growers Two years of volatility in the maize market have led growers to call for earlier signals from the dairy industry to help gauge supply and demand, thereby stabilising prices. Ivan Lawrie, General Manager of Business Operations at the Foundation for Arable Research, says that knowing the amount of maize silage needed each season would allow maize growers to better plan their planting programs. The past two years have seen unprecedented price and demand fluctuations, largely due to the war in Ukraine in early 2022, which caused international grain prices to spike. In New Zealand, this led to market highs that quickly turned downward as maize growers tried to capitalise on soaring prices just as dairy market demand for silage decreased and international prices fell. When dairy farmers do not purchase maize for silage, it is processed into grain by the growers, leading to an oversupply of maize grain in the North Island. This oversupply has been exacerbated by a lack of storage facilities. Data from NZX Grain and Feed Insight shows that maize grain prices fluctuated significantly, peaking at $750 per tonne in the North Island in October 2022 and dropping to $360 per tonne in May 2023. While New Zealand’s local grain prices are somewhat insulated from international trends due to the country's isolation, local dairy payout prices closely correlate with all grain prices in NZ because of demand. However, the availability of cheap imported grain can drive prices down, particularly for maize grain, where the poultry industry has significant market influence. The feed market in New Zealand is predominantly dairy-focused, with 60% to 80% of the maize grain crop sold into dairy channels.  Dairy accounts for about 68% of total imported feed, mostly palm kernel, while poultry accounts for about 12% of total imports but 48% of grain imports. Milling makes up 7% of imports but 33% of grain imports. Petition to keep live animal exports banned makes its way to parliament A petition signed by over 57,000 people urging the Government to maintain its ban on live animal exports has been presented to Parliament. The Labour Government had introduced this ban in April of the previous year, but the current Government has expressed an intention to restart live animal exports under “gold standard” rules to ensure animal welfare and safety. The petition was accepted by former agriculture minister Damien O’Connor, who originally implemented the ban. O’Connor criticised the Government's stance, describing it as "stupid" and highlighted that live exports only constituted a small portion of total exports. He noted that other countries have since followed New Zealand's lead in banning live exports. Dr. John Hellström, former chief veterinary officer at the Ministry of Agriculture and Fisheries, lodged the petition. He expressed concern over the conditions on the transport boats and the welfare of the livestock at their destinations. He pointed out the large size of the boats, which could hold between 20,000 to 120,000 cows, leading to cramped conditions with little room for the animals to move. Hellström doubted that most farmers were aware of the conditions their animals would face, believing that farmers assume their livestock are well-treated during transit and upon arrival. The SPCA supports the live export ban, with its chief scientific officer, Dr. Arnja Dale, condemning the conditions on export boats as unacceptable. Labour’s animal welfare spokesperson Rachel Boyack announced that the party would reverse any changes to the ban if re-elected.  Associate Agriculture Minister Andrew Hoggard has stated his goal to implement changes to the ban by next year. Could beef offal make brussel sprouts tasty? Brussel sprouts, often avoided by parents to ensure peaceful family dinners, may soon become more appealing thanks to the innovative work of AgResearch scientists. Led by Dr. Raise Ahmad, the researchers are collaborating with the Australian Meat Processor Corporation to extract a flavour peptide from beef offal. This peptide could potentially add value to a low-value waste stream and serve as a healthy flavour enhancer. The peptide, known as “kokumi,” is being hailed as nature’s taste enhancer. It can enhance sweet, salty, and umami flavours while transforming the bitter profile of Brussels sprouts into an appealing caramel-like taste. Kokumi flavour peptides are small protein fragments that bind to calcium-sensing receptors on the tongue, creating sensations of mouth fullness, continuity, and aftertaste. Given the abundant supply of waste offal in New Zealand’s processing stream, and the minimal food safety risks associated with natural kokumi peptides, commercialization looks promising.    See omnystudio.com/listener for privacy information.