Early Bird I Thursday May 30th 2024

Fonterra reveals its new season farmgate milk price forecast, the United States overtake China as our biggest red meat market, and compliance rates up across Otago’s dairy farms. 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 its new season farmgate milk price forecast Fonterra has announced its opening 2024/25 season farmgate milk price forecast, ranging from $7.25 to $8.75 per kilogram of milk solids, with a midpoint of $8.00 per kg. The co-operative has reported a net profit after tax of $973 million, a 27 percent decrease from the same period last year, which had included the performance of Soprole and net gains from divestments. However, the profit from continuing operations was $1,013 billion, up 2 percent, equating to 61 cents per share. Chief Executive Miles Hurrell attributed the strong performance to robust earnings across all three of Fonterra's product channels. Notably, the food service and consumer channels showed significant improvement in the third quarter compared to the previous year. Consequently, Fonterra has raised its forecast for FY24 continuing operations' earnings range to 60-70 cents per share, up from 50-65 cents per share. Miles Hurrell says that while global dairy prices have increased in recent months, the balance between milk supply and demand remains delicate. He pointed out that China's import volumes have yet to return to historic levels.  For the current season, Fonterra has maintained the farmgate milk price midpoint at $7.80 per kgMS. The United States overtake China as our biggest red meat market New figures from The Meat Industry Association of New Zealand reveal that Chinese demand for red meat has weakened, but strong demand from North America is balancing the shortfall.  In April, North America overtook China as New Zealand's largest export market for red meat.  New Zealand exported red meat worth $922 million during the month, a 4% decline from the previous year. Exports to China decreased significantly as Chinese importers continue to use their frozen inventories built up during the COVID-19 pandemic. Exports to the United States rose, making it the largest market for the month, with a substantial increase also seen in exports to Canada. This rise is partly due to declining livestock numbers in both the US and Canada following widespread drought.  In April, the UK and Japan saw significant increases in red meat exports. However, exports to the Netherlands, Germany, and Belgium decreased, mainly due to a drop in sheep meat exports from last year's high levels. Total sheepmeat exports slightly declined in volume and value. Exports to China fell significantly, while exports to the UK and the US increased.  Beef exports remained stable with the U.S the largest market. Exports to China decreased, while exports to Japan surged, likely driven by increased tourism and demand in the food service sector. Exports to Canada also rose substantially. By-product exports saw a slight decline overall. However, there was a notable increase in tallow exports to Singapore.  Compliance rates up across Otago’s dairy farms. Otago dairy farmers are being commended for their improved compliance with effluent storage and discharge regulations compared to the previous year.  Tami Sargeant, Otago Regional Council’s Manager Compliance, has underscored the positive outcomes achieved by farmers alongside the efforts of ORC’s dairy team. The compliance inspections primarily focused on effluent management, including storage and discharge, as well as monitoring compliance with rules related to landfills, silage, offal pits, and permitted water takes. Over the past ten months, the number of dairy farm inspections increased by 28.7%, rising from 317 to 408. Full compliance with the rules improved from 61% last year to 66% this year. Additionally, the rate of "significant non-compliance" decreased from 3% to 2%. Tami Sargeant says the dairy project monitors compliance with animal effluent systems and discharges, as well as farm waste streams, such as their offal pits and farm landfills, plus their permitted water takes,”  Sergeant says it's important to engage with farmers to raise awareness about the requirements for animal effluent storage and discharge consents and to clarify when such consents might be necessary. New initiatives launched to benefit agricultural sector ASB and Pāmu have partnered to launch the Sustainable Progress Initiatives programme, aimed at accelerating socially and environmentally beneficial projects within New Zealand’s agricultural sector.  This collaboration includes a new apprenticeship scheme to attract young Kiwis to farming careers, a Methane Reduction Through Genetics programme to breed more methane-efficient livestock, and the promotion of smart agri-data tools for informed decision-making. The initiative leverages Pāmu’s scale, capability, and on-farm experience to achieve better sustainability outcomes, meet consumer expectations, and invest in the future of agriculture through the Pāmu Apprenticeship Scheme. The Pāmu Apprenticeship Scheme seeks to create career pathways into farming by building foundational skills. Apprentices will gain paid work experience on dairy and livestock farms starting in January 2025, with applications opening in July. The Methane Reduction Through Genetics project aims to identify livestock that emit less methane and convert feed more efficiently. A new testing facility at a Pāmu farm in Taupō will enhance selection criteria for beef and help identify specific genes that reduce methane emissions.  This facility will also be available to industry partners for ongoing methane reduction and feed efficiency research. Applications open for agri-banking graduate programme Applications for the 2025 Rabobank New Zealand Graduate Programme are now open.  The 18-month programme offers university graduates with an interest in agri banking the chance to start their careers with New Zealand’s only specialist food and agribusiness bank. Rabobank will select six graduates from across the country to join its Country Banking division, where they will receive experience and career development support.  Rabobank New Zealand’s general manager for Country Banking, Bruce Weir, says since the programme launched in 2021, more than 35 graduates have been employed. The successful candidates will rotate through three six-month stints with different Rabobank teams across New Zealand. They will receive ongoing support from mentors and a dedicated buddy who started as a graduate themselves.  With strong demand expected, recent graduates or those eligible to graduate by February 2025 are encouraged to apply before June 19, more details can be found on Rabobanks website. See omnystudio.com/listener for privacy information.