Early Bird I Wednesday August 28th 2024

Fonterra climbs up the Global Dairy Rankings as the co-op cuts dozens of jobs in Hamilton, methane cutting technology advances with major investment, and Canterbury hemp company forced to dump tonnes of potential animal feed. 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! Fonterra climbs up the Global Dairy Rankings as the co-op cuts dozens of jobs in Hamilton The latest Global Dairy Top 20 report from RaboResearch reveals a year of modest growth and strategic shifts in the dairy sector. The world's leading dairy companies saw a slight 0.3 percent increase in combined turnover, a significant slowdown from last year's 8.1 percent growth. French dairy giant Lactalis maintained its top position for the third consecutive year, becoming the first company to surpass $30 billion in annual dairy-related revenue. Nestlé secured the second spot, while Dairy Farmers of America dropped to third place, largely due to weaker milk prices. The report highlights how lower commodity prices in 2023 have dampened revenue growth across the industry. This trend particularly affected European cooperatives, with seven companies worldwide reporting lower revenues in their local currencies. Fonterra climbed three places this year to reach sixth position. However, the report suggests this jump may be partly due to Fonterra's financial year-end falling on July 31, 2023, capturing higher commodity prices from late 2022. The report also reveals that Fonterra may struggle to maintain this ranking in future years. This is due to the cooperative's strategic shift towards focusing on its core business, which could potentially reduce future revenues. Despite the challenging market conditions, many companies managed to report stronger profits and margins compared to the previous year. This suggests that dairy firms are adapting their strategies to navigate the evolving market landscape. Fonterra cuts 80 finance jobs in Hamilton Meanwhile Fonterra has confirmed it will cut 80 finance jobs from its Hamilton office as part of a restructuring effort. The roles, many of which are currently vacant, will be disestablished from the London Street office in Hamilton's CBD. Chief Financial Officer Andrew Murray stated that the work will be outsourced to Accenture, Fonterra's existing accounting partner with offices in the Philippines and India. Murray acknowledged the impact on staff and mentioned that support would be provided to help affected employees transition into newly created roles within Fonterra's service hub. The decision comes after a consultation process that began in late July, with staff reportedly informed of the outcome last Friday. According to an affected employee, the changes are set to be completed by the year's end, with impacted staff expected to train their overseas replacements starting next week. Fonterra maintains that they have engaged with farmer shareholders throughout the process and recognize their role as a major employer in New Zealand communities. The company insists that such decisions are not taken lightly. Methane cutting technology advances with major investment AgriZeroNZ has injected an additional $4 million into Ruminant BioTech. This investment aims to hasten the development of a methane-inhibiting bolus tailored for our unique pastoral farming methods. The innovative device, a slow-release biodegradable unit, remains in the animal's rumen for up to half a year. It continuously delivers a controlled amount of methane inhibitor, tackling one of agriculture's most challenging environmental issues. Recent cattle trials yielded remarkable outcomes. A lone treatment resulted in a 75% daily methane reduction, maintained over 100 days. These results show the technology's potential to transform emission management on Kiwi farms. Wayne McNee, AgriZeroNZ's chief executive, expresses enthusiasm about increasing their stake in the Kiwi-owned venture. This follows an initial $1.8 million investment made last year. McNee highlights the importance of developing solutions that align with New Zealand's farming practices. The team at Ruminant BioTech is currently collaborating with the Ministry for Primary Industries to secure full product registration. This crucial step will allow the bolus to be utilised on farms nationwide. Tom Breen, CEO of Ruminant BioTech, outlines ambitious plans. The company aims to treat over 30 million cattle annually by 2030, with projections to reach 100 million within a decade. The additional funding will accelerate product and market development, including the construction of New Zealand's first manufacturing facility. McNee emphasised the bolus's potential as a game-changing tool that offers farmers a way to reduce emissions without altering their current farming methods. The low-maintenance nature of the bolus makes it particularly attractive for beef farmers who have less frequent animal interactions. Kiwi students take on global competition with innovative cattle disease detector Meanwhile a team of eight third-year Biochemistry students from the University of Canterbury (UC) is set to represent New Zealand at the world's largest synthetic biology competition in Paris this October. The group, known as UCiGEM, will showcase their innovative concept for rapidly detecting Johne's disease, a costly and common infection in cattle. Johne's disease, a chronic and contagious bacterial infection, currently costs New Zealand's dairy industry up to $88 million annually in lost production. The students' proposed device, named LuMOO, aims to revolutionise the detection process, potentially providing results within minutes instead of the current two-week wait time for laboratory tests. Team member Amy Dellow explained that their method uses an engineered protein that produces light to detect the pathogen causing Johne's disease. The presence of light indicates a negative result, while its absence signals infection. This approach could offer a faster and more cost-effective alternative to existing tests, making it more accessible for farmers. Research suggests that over half of all dairy herds in New Zealand have experienced cases of Johne's disease. The team has engaged with local farmers to gain insights into the disease's impact on livestock and farm operations. The UCiGEM team is currently testing their concept and hopes to have results confirming the device's effectiveness before they depart for France. As part of their preparation, the students have also been visiting local schools to discuss biochemistry and science careers, promoting STEM education in their community. Canterbury hemp company forced to dump tonnes of potential animal feed And Christchurch-based hemp company, The Brothers Green, is raising concerns about the waste of potentially valuable animal feed due to current regulations. The company is being forced to dump tonnes of nutritious hemp meal, a byproduct of their hemp processing operations, which could be utilised as animal feed. Managing director Bradley Lake is frustrated with the situation, noting that the company is discarding about 60% of their hemp meal byproduct. This nutrient-rich material, similar to other animal feeds used across the country, is currently heading to landfill instead of potentially benefiting livestock or companion animals. Lake emphasised the nutritional value of the hemp meal, citing its high protein content and richness in minerals like magnesium and zinc. He suggested that the byproduct could be particularly useful for feeding cats, dogs, and chickens, as well as potentially reducing reliance on imported grains and palm kernel for livestock feed. However, Associate Minister for Agriculture (Animal Welfare) Andrew Hoggard explained that using hemp or hemp-derived substances as animal feed requires approval under the Agricultural Compounds and Veterinary Medicines Act. To date, no companies, including The Brothers Green, have applied for such approval. The primary concerns surrounding hemp byproducts in animal feed stem from the presence of small amounts of THC and CBD, which are controlled substances in New Zealand. These compounds pose potential risks to food safety, animal welfare, and could impact New Zealand's trade in animal products. Lake acknowledged the need for more research but argued that the byproduct could be used for companion animals or those not destined for export markets. He also highlighted the struggling state of the hemp industry, once projected to be a billion-dollar sector, now hampered by legislative restrictions. Minister Hoggard indicated openness to considering regulatory changes if presented with compelling new evidence. He noted that the Ministry for Regulation is currently conducting a review of the approval process for agricultural and horticultural products, seeking submissions to assess the balance between product access and risk management. See omnystudio.com/listener for privacy information.