Early Bird I Tuesday August 20th 2024

Farmers push back on claims of “Greenwashing” in dairy industry, organics sector weighs in on potential GMO rule changes, and Bay of Plenty hosts major horticultural event addressing sector challenges. 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! Farmers push back on claims of “Greenwashing” in dairy industry New Zealand's dairy community is rallying against recent criticism from Greenpeace regarding Fonterra's farming methods. The environmental group's allegations have drawn strong reactions from rural leaders, who argue the claims lack nuance and misrepresent the industry's efforts. Greenpeace spokesperson Sinéad Deighton-O'Flynn has criticised Fonterra's use of the term "regenerative farming" in its marketing, calling it dishonest. Greenpeace argues this is incompatible with Fonterra's status as a major climate and freshwater polluter, and criticises the industry's use of palm kernel as feed. Rural advocates challenge these allegations, arguing that Greenpeace's comparison of Fonterra to oil companies misrepresents the realities of modern dairy production. They contend that New Zealand's pasture-based dairy model already incorporates many regenerative principles, including minimal soil disturbance and diverse pasture species. Industry experts challenge Greenpeace's characterization of Fonterra as the country's largest climate and water contaminant. They argue this view fails to account for ongoing environmental initiatives and improvements in farm management techniques. The use of imported feed, including palm kernel, remains a contentious issue. However, dairy leaders argue that its use has decreased in recent years, with many farmers focusing on homegrown feed options. They stress that palm kernel is often a crucial tool for maintaining animal welfare during challenging weather conditions. Farmers also contest Greenpeace's call for an immediate end to synthetic nitrogen use. Agricultural scientists emphasise that responsible fertiliser application is essential for maintaining soil health and productive pastures, which in turn support carbon sequestration. While acknowledging that there's always room for improvement, dairy leaders urge for a more balanced dialogue. They call for collaborative approaches to addressing environmental challenges, rather than what they see as divisive rhetoric from Greenpeace. a2 Milk reports profit boost driven by strong Chinese market performance a2 Milk has reported an increase in its full-year profit, largely due to improvements in the Chinese market. The company's net profit rose to $167.6 million, up from $155.6 million in the previous year, while revenue increased to $1.67 billion from $1.59 billion. A2 Milk's performance was particularly strong in China, where it saw rising sales of infant milk formula despite a falling birth rate and challenging economic conditions. The company's infant formula sales in China grew by 4.6 percent, outperforming the overall market which declined by nearly 11 percent. However, the company faced challenges in other markets. Earnings in Australia and New Zealand declined, partly due to changes in distribution channels for products previously destined for China. The US market continued to see losses, although these were reduced through increased marketing efforts. The company's Mataura Valley Milk operation in Southland also remained unprofitable, though losses were reduced by 22 percent. Looking ahead, a2 Milk expects modest revenue growth and steady margins. The company, which has never paid a dividend, reported a strong cash position of $969 million. While this cash is primarily earmarked for supply chain improvements and growth funding, the board indicated it would consider potential capital returns to shareholders in the future. The company recently settled a dispute with its major infant formula maker, Synlait Milk, ending their exclusive manufacturing arrangement but committing a2 Milk to participate in Synlait's upcoming capital raising. Organics sector weighs in on potential GMO rule changes New Zealand's organic sector has responded to the government's announcement of a review of gene technology rules, emphasising the need for careful consideration and direct engagement. The sector, which has been involved in shaping discussions on this topic since the 1990s, views this as a critical moment for the country's agricultural future. Brendan Hoare, spokesperson for Organics Aotearoa New Zealand (OANZ), acknowledged the government's delivery on an election promise to change legislation. He highlighted the organic sector's deep involvement in bio-tech as well as natural sciences like biology and ecology, positioning it as a key stakeholder in these discussions. The organic industry in New Zealand, valued at around $1 billion and steadily growing, is part of a global market worth over NZ$245 billion annually. Hoare stressed the importance of New Zealand's current non-GMO status, which provides a significant point of difference for both organic and conventional products in global markets. A primary concern for the organic sector is maintaining the integrity of its value chain, which is built on principles of truth, trust, authenticity, and traceability. The exclusion of GMOs is a fundamental aspect of this proposition, and any changes to this status could pose significant risks to the industry. The sector is currently focused on engaging with the government on regulation details of the new Organic Products and Production Act. Hoare emphasised that GMOs are globally recognized as a non-permitted activity in organic production and should remain excluded  Bay of Plenty hosts major horticultural event addressing sector challenges New Zealand's horticulture industry is gearing up for a major gathering in Mount Maunganui this month. The annual Horticulture and Recognised Seasonal Employer (RSE) Conferences are joining forces, bringing together over 600 attendees from across the country's growing community. The event, running from August 28th to 30th at Mercury Baypark, aims to address critical matters affecting growers nationwide. Horticulture New Zealand (HortNZ), which represents more than 4,500 growers, is hosting the conference. The merged format combines two traditionally distinct events into a three-day program rich with content and expert commentary. Attendees can look forward to hearing from a diverse range of industry leaders and government officials. Key speakers include Nicola Grigg, Associate Minister of Agriculture for Horticulture, and Erica Stanford, Minister of Immigration. The lineup also features Rachel Depree from Zespri, discussing sustainability initiatives. Adding a unique perspective, adventurer and environmental scientist Tim Jarvis will deliver a keynote address. Industry heavyweights such as Gareth Edgecombe from T&G Global, Andrew Watene of KPMG Propagate, and Simon Limmer from Indevin are also slated to share their expertise. For growers facing ongoing challenges, this conference offers a timely opportunity to connect with peers and industry leaders. Attendees will explore solutions to current hurdles while looking ahead to future growth opportunities. The combined format reflects the interconnected nature of horticulture and seasonal employment issues, allowing for more comprehensive discussions. This approach aims to benefit growers by addressing multiple aspects of their operations in one centralised event. For those interested in attending or learning more about the conference program head to www.hortnz.co.nz MPI expands scholarship program to boost farm advisory support The Ministry for Primary Industries (MPI) in New Zealand is broadening its scholarship program for tertiary students as part of a strategy to enhance on-the-ground support for farmers and growers. This initiative aligns with the government's goal to double export value within a decade. Dr. John Roche, MPI's director of On Farm Support, says it’s important to have a skilled primary industry advisory sector in helping farmers adapt to change. The ministry is offering six scholarships totaling $30,000 for the 2025 academic year to students enrolled in relevant agriculture, horticulture, science, or viticulture degrees. Eligible applicants must be studying at Massey, Lincoln, Otago, or Waikato universities, or the Eastern Institute of Technology or Nelson Marlborough Institute of Technology, and have completed their first year of study. The program seeks students with a genuine interest in joining the agricultural and horticultural advisory sector. Applications for the MPI On Farm Support Science Scholarships will close at 5 pm on Monday September 16. Successful candidates will be chosen by an evaluation panel comprising representatives from across MPI. See omnystudio.com/listener for privacy information.