Early Bird I Tuesday July 9th 2024

Dairy giants future lays with this weeks Synlait shareholder vote, Gisborne farmers face land use shakeup, and Beef + Lamb NZ hits the road looking for farmers’ voices. 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 giants future lays with this weeks Synlait shareholder vote South Island dairy company Synlait Milk faces a critical moment as it heads into a crucial vote this Thursday. The outcome will determine the firm's future and its ability to continue operations. At the heart of the matter is a $130 million loan offered by Synlait's largest shareholder, China's Bright Dairy. This funding is essential for Synlait to repay bank loans due on July 15th. While Bright Dairy cannot vote, the loan's approval hinges on other shareholders, notably A2 Milk, which owns about 20% of Synlait. A2 Milk has not disclosed its voting intentions. Synlait chairperson George Adams emphasised that the company's fate lies with institutional and retail investors, who collectively own 41% of shares. He reports that initial feedback from these investors has been encouraging. Adams urges all shareholders to cast their votes, stating that if the loan is not approved, Synlait will have limited options. The board would need to discuss alternatives, which may include voluntary administration if the company becomes unable to meet its financial obligations. The deadline for proxy votes is this afternoon, with the special shareholders meeting scheduled for Thursday afternoon.  New report forecasts New Zealand's milk growth slowing to a trickle New Zealand's dairy industry faces moderate growth in the coming decade, according to the latest OECD-FAO Agricultural Outlook. The report indicates our milk production will likely increase by just half a percent annually over the next ten years. This limited expansion stems from land and environmental constraints. While New Zealand accounts for only 2.5% of global milk output, we remain the world's most export-oriented dairy nation. After two decades of strong growth, our milk production has levelled off and is expected to continue this trend. The outlook maintains that New Zealand, along with the European Union and United States, will continue to dominate global dairy exports, collectively accounting for nearly 70% of the market. Our nation leads in butter and whole milk powder exports, while the EU excels in cheese, and the US has taken the lead in skim milk powder. Globally, milk production is forecast to grow at 1.6% annually, outpacing many other agricultural commodities. India is set to retain its position as the world's largest milk producer, with China remaining the top importer of dairy products. The report highlights challenges facing major dairy exporters, including economic and environmental hurdles. While plant-based alternatives are gaining ground in certain regions, their long-term impact on dairy demand remains uncertain. Environmental legislation could significantly influence dairy production's future, potentially leading to innovative solutions that enhance the sector's long-term competitiveness. The outlook also notes that India's potential integration into the global dairy market could have far-reaching effects. Climate change and extreme weather events pose additional threats to milk production in affected countries. However, the report suggests that efficiency gains in countries with large cattle populations could help mitigate global greenhouse gas emissions from the dairy sector. As the industry evolves, New Zealand's dairy farmers and processors must navigate these challenges while maintaining our strong position in the global market. Gisborne farmers face land use shakeup Gisborne farmers face potential changes to their operations as the region's council unveils new land adaptation plans. These initiatives aim to address erosion risks across Tairāwhiti, with significant implications for agricultural practices. The council's 'Overlay 3B' classification targets the most erosion-prone areas in the region. This new approach may require some farmers to transition their land into permanent vegetation cover, marking a notable shift in land use. Council chief executive Nedine Thatcher Swann explains that advanced technology has been used to identify high-risk areas for landslides and their impact on waterways. This data-driven approach could reshape farming landscapes across Gisborne. While the Eastland Wood Council views the new mapping favourably, the impact on individual farmers remains a key concern. The council anticipates significant changes in land management practices, which could affect agricultural operations. Notably, Federated Farmers was unable to comment at the time of the report, highlighting the ongoing uncertainty surrounding these changes for the farming community. The council plans to investigate the economic, social, and cultural impacts of these rule changes. This assessment will be crucial for understanding how farmers' livelihoods may be affected. As the initiative moves forward, the council intends to engage with landowners and communities. This consultation will be vital for farmers looking to understand and adapt to potential new restrictions on their land use. These developments signal a significant shift in Gisborne's approach to land management. Farmers in the region now face the challenge of balancing environmental concerns with their agricultural practices, as the full extent of these changes unfolds Deer Industry Targets US retailers Deer Industry New Zealand, known as DINZ, has launched an ambitious retail initiative in North America. This North American Retail Accelerator aims to boost demand for New Zealand venison through retail channels. The initiative, which began on July 1st, is expected to yield an initial return of $20 million, a 4-to-1 return on investment. The Ministry for Primary Industries has agreed to contribute one-third of a $4.9 million investment, with venison exporters and DINZ covering the remainder. Rhys Griffiths, interim CEO of DINZ, said by establishing a strong market in North America, DINZ is diversifying it’s export base and ensuring long-term growth for farmers. The initiative allows New Zealand producers to connect more directly with consumers through retail outlets, reducing reliance on the food service sector. It also offers a chance to showcase our sustainable farming methods and raise awareness about New Zealand grass-fed venison. Virginia Connell, DINZ assistant markets manager, expressed enthusiasm about highlighting the 'New Zealandness' of venison in North America. She noted that while the focus is on retail, the project will likely increase awareness across all sectors as knowledge about New Zealand venison grows. This collaborative effort involves all five major venison processing companies in New Zealand: Alliance Group, Silver Fern Farms, First Light Foods, Duncan, and Mountain River Venison. A project steering committee, chaired by Scott Champion, will oversee the initiative. The committee includes Mark O'Connor representing venison exporters, Paddy Boyd as farmer representative, and members from DINZ and MPI. As the project unfolds, it holds promise for enhancing New Zealand's reputation in sustainable agriculture and securing a stronger foothold in the North American market. Beef + Lamb NZ hits the road looking for farmers’ voices Beef + Lamb New Zealand is launching a nationwide tour to engage with farmers and gather input on the industry's future. This initiative, running from July 29th to September 5th, will cover about 30 locations across the country. BLNZ chair Kate Acland highlights the importance of these informal sessions, stating they offer farmers a chance to gain insights and contribute to key policy discussions. Responding to previous feedback, this year's roadshow aims to provide more structured information while still allowing farmers to voice their concerns. Local farmer directors and senior BLNZ staff will outline the organisation's renewed focus on enhancing farm productivity and profitability. They'll also present current thinking on crucial policy issues such as freshwater management and climate change, seeking farmers' opinions to refine their approach. Acland emphasises that these meetings are part of BLNZ's commitment to ensuring farmers' voices are heard in their advocacy efforts. The sessions will delve into ongoing government policy changes, offering farmers an opportunity to shape BLNZ's stance on these matters. This tour underscores the vital role of farmer input in guiding the direction of New Zealand's beef and lamb industry. As the agricultural sector faces evolving challenges, these discussions aim to forge a path forward that aligns with both environmental concerns and farmers' needs. Farmers interested in attending can find more details about dates and locations on the Beef + Lamb New Zealand website. See omnystudio.com/listener for privacy information.