Early Bird I Tuesday August 13th 2024

Dairy and meat processors grapple with soaring electricity prices, research highlights soil health impact on nutrient-dense food, and Rural Support Trust announces leadership change. 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! Dairy and meat processors grapple with soaring electricity prices New Zealand's largest dairy exporter, Fonterra, is sounding the alarm over rising wholesale electricity prices and gas market uncertainty, warning these factors are undermining the country's export competitiveness. In recent weeks, wholesale electricity prices have doubled, reaching over $900 per megawatt hour last Wednesday. This surge comes as New Zealand's hydro lake storage levels are significantly lower than usual for this time of year, prompting warnings of substantial increases in household energy bills. Anna Palairet, Fonterra's chief operating officer, expressed concern about the lack of resilience and cost-effectiveness in the energy sector. She emphasised that while energy remains available to process milk during the upcoming seasonal peak, the current situation is adding considerable costs to both the co-operative and its shareholders. Palairet stressed the need for longer-term solutions to ensure energy affordability, highlighting that dairy operations cannot simply pause due to high energy costs. The impact is also being felt in the meat processing sector. ANZCO Foods' chief executive, Peter Conley, reported that at current rates, the company's electricity costs are projected to double compared to last year. ANZCO is closely monitoring its electricity use and implementing various cost-saving measures while maintaining normal operations across all sites. However, not all meat processors are equally affected. Alliance, which operates seven plants nationwide, stated it's shielded from the rising energy costs due to long-term supply contracts. Research highlights soil health impact on nutrient-dense food A comprehensive review of over 260 research papers has unveiled significant connections between farming systems, soil quality, and food nutrient density. The study, conducted by Plant & Food Research and commissioned by Kete Ora Trust, aimed to assess conventional, biodynamic, and organic farming systems and their impacts on food quality and human health. The literature review suggests that soil health plays a crucial role in determining the quality of produce, including its nutritional composition. Findings indicate that biodynamic and organic management practices generally promote more soil life than conventional growing systems. Researchers found evidence suggesting a correlation between soil life and the transfer of nutrients from soil to crops. The report emphasises the importance of nutrient-dense foods, which deliver more essential elements for good health such as vitamins, minerals, complex carbohydrates, protein, and healthy fats. However, the study also identifies gaps in research, particularly regarding biodynamic growing practices and variability in organic growing practice data. It calls for more studies on identical crops across different systems, especially within New Zealand's unique agricultural context. Sam Weaver, Chair of Kete Ora Trust, welcomes these findings as the first phase of a broader study to understand the links between soil health and human health in New Zealand.  The trust is now seeking funding for the next phase of applied research. This upcoming work aims to provide crucial information for growers, consumers, policymakers, and the agricultural and health sectors.  Weaver believes New Zealand has an opportunity to lead globally in demonstrating the connection between soil health and human health.  Rural Support Trust announces leadership change The National Rural Support Trust is undergoing a leadership transition, with Neil Bateup stepping down as Chair on September 1st. Bateup, who has led the National Trust since its formation in 2017, has played a crucial role in guiding its growth and development. Michelle Ruddell, currently chairing the Northland Rural Support Trust, will take over as national Chair. Josh Dondertman, Chair of the Mid Canterbury Rural Support Trust, will assume the Deputy Chair position. Ruddell, a dairy farmer near Whangārei, expressed honour in succeeding Bateup. She highlighted his significant contributions to Rural Support, both locally in the Waikato Hauraki Coromandel Trust and at the national level. Ruddell aims to build upon Bateup's achievements and advance the National Trust's mission. Dondertman, who manages a dairy farming operation in Mid Canterbury, noted the increasing recognition of Rural Support Trusts within rural communities. He emphasised their unique role in providing direct, personal support to farmers and growers facing challenges. Bateup, while stepping down as national Chair, will continue as a trustee on the national trust and remain Chair of the Waikato Hauraki Coromandel Trust. He expressed confidence in the new leadership team and their ability to guide Rural Support towards a strong, sustainable future. Ruddell welcomed the retention of Bateup's experience and knowledge, expressing gratitude for his ongoing support. She and Dondertman are committed to ensuring Rural Support remains relevant, independent, and accessible in rural regions as they lead the organisation into its next chapter. Kiwi agritech firm expands to American cattle ranches New Zealand agritech company Halter has introduced its virtual fencing technology to the United States market.  Craig Piggott, Halter's founder and CEO, says the technology's benefits, long enjoyed by New Zealand and Australian farmers, are now available to US cattle ranchers where the company's American focus will be primarily on beef operations. The US market presents a substantial opportunity for Halter. As the world's second-largest beef market after Brazil, it offers an addressable market nearly 50% larger than New Zealand's. The US has about 20 million pasture-grazing cattle, five times the number in New Zealand. Halter is targeting pasture-based farms, which make up roughly 60% of all US cattle operations. The company aims to boost productivity and sustainability across US cattle pastures, which cover 263 million hectares, plus an additional 52 million hectares used for livestock feed production. Halter's technology is now operational on farms in California, Oregon, Colorado, Texas, and Louisiana. Piggott adds that while the US expansion is a major focus, New Zealand remains a priority market for Halter. The company's success in Tasmania is notable, with Halter's technology now used on 20% of the state's dairy cows, just 20 months after entering the market. The company currently manages 200,000 cattle across the US, New Zealand, and Australia. HortNZ expands leadership programme following industry challenges Horticulture New Zealand has revealed 19 individuals have been chosen for its 2024 leadership programme. This group represents a wide array of roles within the industry, from independent growers to those in corporate positions such as sales, marketing, export management, human resources, and logistics. The selected candidates bring diverse experiences to the programme. Their backgrounds include science, engineering, military service, agronomy, geology, rural banking, auditing, and even butchery before transitioning to horticulture. Nadine Tunley, chief executive of HortNZ, highlighted that all successful applicants have shown leadership qualities or potential, along with a readiness to take on responsibilities in grower or industry matters. The programme aims to nurture current and future leaders in the fruit and vegetable sector. These new scholars will join over three hundred alumni who have honed their leadership abilities through this highly regarded initiative. This year's intake is larger than usual, with 19 scholars instead of the typical twelve. This expansion was made possible through the Grower Relief Fund and generous donations following the North Island weather events of 2023. The increased capacity allows businesses affected by recent cyclones to participate, fostering a positive outlook after several challenging years. HortNZ has partnered with Rural Leaders, known for the Kellogg rural leadership programme, to deliver this renewed initiative. The curriculum has been updated to align with the current industry landscape and the food and fibre sector leadership framework, supported by the Food & Fibre Centre of Vocational Excellence. As the horticulture sector continues to evolve, this leadership programme stands as a crucial investment in developing the skills and knowledge needed to drive the industry forward. It reflects HortNZ's commitment to nurturing talent and ensuring a resilient future for New Zealand's horticulture industry. See omnystudio.com/listener for privacy information.