Early Bird I Tuesday May 28th 2024

Fed Farmers and MP’s ticked off at lack of time for select committee submissions, MPI closely tracking avian bird flu, and AgResearch to test the waters around gene editing at Fieldays. 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 and MP’s ticked off at lack of time for select committee submissions MP’s and Federated Farmers have been left frustrated at the lack of time to present a case for an inquiry into rural banking at a primary production select committee hearing. Sharemilker Richard McIntyre, representing Federated Farmers, barely had time to argue for an inquiry into rural banking before committee chairperson Anderson Miles had to cut him off. McIntyre was not alone in drawing MPs’ attention to the reduction in bank lending to farmers, which Federated Farmers said had dropped by $5 billion, or 12%, since 2019. Banking has become the number one concern for farmers, with only 51% expressing satisfaction with their bank, down from 80% five years ago.  An increasing number of farmers felt they were under undue pressure from their banks, with one in four reporting this today compared to one in 20 in 2015. Only one in five farmers felt supported by their banks. Federated Farmers presented a report to MPs claiming that many rural bankers have left the industry because they could not, in good conscience, participate in activities that placed their clients under needless financial and mental hardship.  The withdrawal of capital from rural New Zealand has significant implications. Younger farmers struggle to obtain loans to buy land, and older farmers with equity face difficulties in securing small loans.  Consequently, many farmers are selling their farms and leaving the sector, threatening GDP growth and the goal of doubling agricultural exports over the next decade. The push for an inquiry reflects the urgency to address the banking issues that threaten the sustainability and growth of New Zealand's agricultural sector. For more, listen to Dairy Exporter episode 15 featuring Scott Wishart from NZAB talking about where rural banking pressures lie. MPI closely tracking avian bird flu With bird flu recently detected in Australia and Antarctica, the Ministry for Primary Industries (MPI) is closely monitoring the situation, which they believe is inevitable despite never having been detected in New Zealand. The concern is heightened by recent mammal-to-mammal infections of the H5N1 strain in US herds and the second case of cow-to-human transmission announced by the American CDC. In Australia, the H7N3 strain was found on an egg farm in Victoria West, and a child returning from India brought the H5N1 strain to Victoria.  Te Niwha's chief science advisor, Nigel French has relayed the importance of preparedness for bird flu in New Zealand, highlighting the need for a coordinated multi-agency approach due to its potential impact on wildlife, domestic animals, and humans. The US cases involved dairy workers exposed to infected cows, who developed conjunctivitis, with the virus appearing to have evolved from birds to cows and then cow-to-cow transmission.  Although the risk to humans remains low, infected cows increase human exposure and provide a chance for the virus to evolve. However, pasteurisation effectively limits the virus in milk products. Federated Farmers dairy chair Richard McIntyre advised farmers to avoid drinking milk straight from the vat and says the group is working with government science advisers to monitor bird flu, with greater concern for its potential impact on native bird species than dairy herds. MPI has been preparing for avian influenza since the early 2000s, collaborating with the Ministry of Health and the Department of Conservation, with Biosecurity New Zealand leading the response if bird flu is detected. Surveillance of migratory wild birds and shorebirds is in place, and testing is ongoing in New Zealand's sub-Antarctic islands and at Scott Base.  The public is urged to report sick or dead birds to the Exotic Pest and Disease hotline.  Fonterra fills the gap vacated by Japanese dairy farmers As Japanese farmers abandon the industry, Fonterra's Japanese branch is filling the gap.  Japan is New Zealand's fourth-largest trading partner and imports about 130,000 tonnes of dairy products from Fonterra annually.  The number of Japanese dairy farms has dropped drastically from over 400,000 in the 1960s to just 12,600 today, with an average farmer age of 65.  Profitability is difficult and the lack of young farmers and high feed prices are significant challenges. Fonterra's head of sales for Japan, Kenichi Hada, sees an opportunity for New Zealand, advocating for increased imports to offset Japan's decreasing milk production.  Fonterra exports mainly cheese, butter, and whey powder for protein products to Japan, with steady demand reflecting their strategic focus on dairy ingredients. AgResearch to test the waters around gene editing at Fieldays. AgResearch scientists will showcase genetic technologies and gather public opinions on their use at the upcoming National Fieldays.  Genetic modification and gene editing  have long been debated, and there are recent calls to relax regulations in New Zealand. The coalition government plans to introduce legislation to this effect later this year. In farming and food production, genetic modification and gene editing research in New Zealand has mostly been confined to labs due to current regulations. The focus has been on developing enhanced pasture for improved productivity, animal health, and environmental benefits. AgResearch chief scientist Axel Heiser sees National Fieldays as an opportunity to engage directly with farmers and visitors about these technologies. AgResearch will conduct an informal poll and value personal conversations with visitors to gauge their thoughts. AgResearch's work with commercial partners includes modifying ryegrass and clover by introducing genes from other plants.  High metabolisable energy ryegrass could reduce livestock methane emissions by over 10%, while high-condensed tannins white clover is expected to decrease livestock bloat, which can cause serious harm or death. This year, AgResearch will share a stand at Fieldays with Manaaki Whenua – Landcare Research.  The stand will also feature research on deferred grazing and its benefits for livestock farmers, with interactive elements for visitors. Look out for Dairy Exporter Spring issue out end of June with a deep dive special report by Anne Lee on Gene Editing with exclusive national research insights of the sentiment towards GE from both the public and farmers. Subscribe today for $59 to ensure you get your copy! Breakthrough in Wool-based pigments Wool researchers have made a significant technical breakthrough, bringing them closer to commercialising new wool-sourced pigments.  The initiative, led by the Wool Research Organisation of New Zealand and its subsidiary Wool Source, aims to find new markets for wool in non-traditional areas. Pigments, used to apply color to various materials, typically rely on synthetic compounds. However, pigments derived from strong wool are biodegradable and renewable, presenting a sustainable alternative.  Wool Source is driving the commercialization of these pigments, which have generated significant international interest due to their environmental benefits. CEO Tom Hooper says the recent breakthrough has significantly improved the product's potential,  successfully meeting challenging requirements to shrink particle size and enhance colour intensity, achieving a world-first for bio-based materials. The innovation represents a new use for wool, and Wool Source is optimistic about its commercial potential.  The ultimate goal is to create new demand for wool, helping to address price challenges in the industry.  See omnystudio.com/listener for privacy information.