Early Bird I Tuesday June 18th 2024

Fed Farmers to push government on stock agent regulation, Oceania Dairy post multimillion dollar loss, and Deer Industry New Zealand to appoint a new chair. 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! Fed Farmers to push government on stock agent regulation Federated Farmers intends to revisit its goal of having stock agents fully regulated similarly to real estate agents. National meat and wool chairperson Toby Williams highlighted that the previous government had been unresponsive, but they plan to push the issue with the current ministers to gain traction. Last month, the Alliance Group appealed to its farmer shareholders for financial support after incurring a $97.9 million loss due to a global downturn in red meat markets, following a $117.2 million profit the previous year. Alliance Group chairperson Mark Wynne acknowledged the financial strain on farmers, noting the unfortunate timing of the appeal. Unnamed sources indicated that Alliance should reconsider its stock procurement methods from agents instead of seeking capital from farmers. Allegations surfaced that certain agents might be profiting significantly by selling stock at higher prices, which prompted concerns among farmers about preferential treatment by Alliance. Smaller processing plants were said to treat all suppliers equally, sometimes purchasing from saleyards to meet contract needs. Despite a voluntary code for regulating stock agents, Federated Farmers seeks more stringent regulations to ensure accountability and deter “dodgy” agents.  Mandatory regulation could ease farmer concerns, but there are complexities, such as whether private sales between farmers would require registration as agents. Changes to the agri-chemical approval process could happen within a year Primary sector leaders are celebrating news from ACT leader David Seymour regarding significant changes in New Zealand’s approval processes for agri-chemicals, which could be implemented within a year. As Minister for Regulation, Seymour has shifted his focus to the Agricultural Compounds and Veterinary Medicines (ACVM) Act. He announced a review that will also include the Hazardous Substances and New Organisms (HSNO) Act, overseen by the Environmental Protection Authority (EPA). Seymour says New Zealand farmers are struggling to access products available overseas due to stringent regulations. They face issues obtaining discontinued products and new products that haven't been approved domestically.  An independent report from Sapere earlier this year underscored how New Zealand is lagging behind other countries in crop and animal treatment technologies. Currently, it takes over three years to approve a new product, compared to 400 days in 2013, including more than 330 days in a "pre-application" queue. In 2021-23, eight applications for new products took 1,048 days, compared to 14 applications taking 402 days in 2014. Dr. Liz Shackleton, CEO of Animal & Plant Health NZ, stated that the association's members have innovative products awaiting approval that could address significant agricultural challenges, including climate change response and biosecurity incursions. Michele Sands, Hort NZ’s manager for strategy and policy, pointed out that the EPA backlog is significant and hinders NZ growers' efforts to reduce agrichemical use. She stressed that regulatory complexities and the EPA backlog are preventing access to more environmentally friendly and sustainable products. Seymour stated that once terms of reference are compiled and approved by the cabinet, which may take six months, rule changes could follow within another six months.  The review will be led by Associate Minister for Agriculture Andrew Hoggard and Environment Minister Penny Simmonds. Oceania Dairy post multimillion dollar loss Chinese-owned Oceania Dairy, based in South Canterbury, reported a $19 million loss for the year ending December 2023. This is a significant increase from the $3.9 million loss recorded the previous year. The company's total revenue for 2023 was $376 million, down from $440 million in the previous year. Oceania Dairy is wholly owned by Inner Mongolia Yili International Company Ltd, Asia’s largest dairy producer. Revenue from customers within the Yili Group dropped to $240.29 million from $371 million, while revenue from external customers increased from $32 million to $56 million. Other revenue sources, including milk sales, also saw an increase from $37.1 million to $79.1 million. Yili opened its $236 million Oceania Dairy factory in Morven in 2016 and acquired Westland Milk Products in Hokitika in 2019. Deer Industry New Zealand to appoint a new chair Deer Industry New Zealand (DINZ) is set to appoint a new Chair following a selection and appointment process conducted by the New Zealand Deer Farmers Association (NZDFA).  The DINZ Board comprises eight members, with four appointed by producers through the NZDFA Selection and Appointment Panel (NZDFA SAP) and four by processor/exporters. The NZDFA SAP announced that Dr. Mandy Bell, the current DINZ Chair, will not be reappointed as a director on the DINZ Board. Dr. Bell will continue as Chair until the end of June, after which a new Chair will be announced. Dr. Bell has been a deer farmer for over 30 years, and has served as a DINZ director since 2021. Gerard Hickey, Deputy Chair of DINZ and exporter-representative praised Dr. Bell for her dedication and hard work in advancing the sector's interests and supporting DINZ's transition to better support the deer industry in New Zealand. He acknowledged her significant contributions during the organisational changes and the development of a new industry strategy. While she will return to her commercial interests, Dr. Bell emphasised that her long-standing association with the deer industry will continue as others take up the governance role for DINZ. Scientific research operations wrap up after a decade of work The National Science Challenge High-Value Nutrition (HVN) Ko Ngā Kai Whai Painga is concluding its operations after a decade of funding scientific research in the food and beverage sector. HVN has played a crucial role in increasing export revenue by validating the health benefits of food products and supporting businesses in competitive markets. HVN's impact is highlighted through its partnerships with companies such as Sanford’s Greenshell™ mussels, Torere Macadamias, and Zespri kiwifruit. Over its 10-year span, HVN has collaborated with 60 businesses on research involving 137 products and has supported the creation of four approved patents.  The closure of HVN is seen as a significant loss to the sector with the initiative instrumental in providing New Zealand producers with funding and support for scientific research and validation of nutritional benefits.  HVN is appealing for a lifeline of $5 million annually over the next decade to sustain its research and development activities. This funding would allow HVN to continue coordinating collaborative science projects across 18 institutions, including foundation partners like the University of Auckland, Massey University, the University of Otago, AgResearch, and Plant and Food Research.  Continued investment is deemed essential to maintain New Zealand’s competitive edge in the global food and beverage market and to drive GDP growth. See omnystudio.com/listener for privacy information.