Early Bird I Wednesday May 15th 2024

Shareholders spooked as Synlait shares drop sixty eight percent, hopes a new chief executive will turn Waikato Dairy Goat Co-op’s fortunes around, and animal reproduction scientist Jock Allison dies at 80.  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! 1. Shareholders spooked as Synlait shares drop sixty either percent Troubled milk processor Synlait, has experienced a significant decline in its share price, dropping to 46 cents/share and reducing the company's market value to $100 million on the New Zealand Stock Exchange.  This decline is stark compared to the share price of $3.23 a share two years ago and an all-time high of $13/share in August 2018, reflecting a 68% loss in share value over the past year. According to senior analyst equities at Forsyth Barr, Matt Montgomerie, the falling share price reflects investor concerns about Synlait Milk's ability to achieve desired asset sales, particularly in relation to the North Island assets.  Montgomerie says there are doubts about the company's capacity to repay substantial debts, including $130 million of bank debt due in July and $180 million of retail bonds due in December. Montgomerie suggests that Synlait urgently needs to finalise asset sales, including its new processing plant at Pokeno and a blending and canning facility in Auckland, to restore investor confidence and halt the share price decline.  The deflated share price potentially makes Synlait a target for takeover, although Montgomerie believes a comprehensive takeover of Synlait Milk by a single entity is unlikely.  Synlait has witnessed board and management changes, including the departure of co-founder John Penno from the board after 25 years of leadership The company's management team also underwent reshuffling, with the CFO assuming a new role as chief commercial officer and a new acting CFO appointed. 2. Exporters left in limbo waiting for government decision over live exports The live cattle export industry in New Zealand is currently in a state of uncertainty, awaiting a decision from the Coalition Government regarding the reinstatement of exports after a year-long ban.  Brian Pearson, General Manager of BeefGen, believes that because the decision to lift the ban is politically sensitive it may take several more months.  This uncertainty has led to significant concerns among Chinese customers and New Zealand farmers, affecting their decisions regarding bull selection for mating later in the year. The ban on live exports was influenced by the tragic sinking of the Gulf Livestock 1 in 2020, resulting in the loss of crew members and cattle. Although the incident prompted a review of the live export industry, Pearson believes that significant progress was being made in improving animal welfare standards prior to the ban. The debate around live exports involves considerations of animal welfare, economic impacts, and New Zealand's international reputation in agricultural trade. The outcome will have implications for both the agricultural sector and broader public opinion regarding ethical trade practices. Overall, the future of live cattle exports in New Zealand remains uncertain pending government decisions and ongoing discussions about animal welfare standards and industry regulations. 3. Hopes a new chief executive will turn Waikato Dairy Goat Co-op’s fortunes around Waikato-based Dairy Goat Co-operative (DGC) is undergoing leadership changes as part of its efforts to address financial challenges. A new chief executive, Alastair Hulbert, is set to start next week, replacing the departed CEO David Hemara. Additionally, Campbell Storey, the co-op's chair, will step down from his position at DGC's annual meeting in September. DGC has faced financial difficulties, with reports indicating the need for a cash injection to ensure its viability. Earlier this year, there was discontent among farmer shareholders after DGC requested milk suppliers to reduce their supply by one-third for the upcoming season. The co-op expects shareholders to reduce supply to around two-thirds of the normal level, reflecting changing demand dynamics in various markets impacted by factors such as declining birth rates, shifts in sales channels during Covid, and changing consumer preferences in China. 4. Work exchange programme launched for young Kiwi and Irish farmers New Zealand Dairy Careers (NZDC) and Farm Relief Services (FRS) have partnered to launch a work exchange scheme for young dairy farmers aged 18-30 from New Zealand and Ireland.  The initiative offers participants a unique opportunity to gain international experience in dairy farming, spending 12 months working alongside experienced Irish dairy farmers in Ireland, where they will learn about Irish farming practices and techniques.  Similarly, Irish participants have the chance to immerse themselves in New Zealand's dynamic dairy industry for a year. The NZDC-FRS Work Exchange Programme includes paid job placements on dairy farms in Ireland for young New Zealanders, and Irish citizens who have used their New Zealand Working Holiday Visa allocation can also apply for the scheme.  Applications are open to Irish and New Zealand citizens aged 18 to 30 with at least 12 months of practical farming experience. Interested candidates can find more details on eligibility criteria and application procedures on the NZDC and FRS websites. 5. Animal reproduction scientist Jock Allison dies at 80  Distinguished scientist Jock Allison, known for his significant contributions to improving New Zealand's sheep reproductive rates, has passed away at the age of 80.  Allison had a remarkable career spanning various roles in animal reproduction, research, and biotechnology. He began his career as an animal reproduction scientist and played a pivotal role in importing exotic sheep breeds into New Zealand through his company LambXL, including breeds like Texel, Fin, Oxford Down, East Friesian and Beltex, among others .Allison's contributions were widely recognized by the agricultural community, receiving the Sir Arthur Ward Award from the New Zealand Society of Animal Production in 2000 and was appointed an Officer of the New Zealand Order of Merit for his services to agriculture. In 2003, he was honored with the Bledisloe Medal for his distinguished contributions to New Zealand's land-based industries. Allison's research focused on improving sheep reproductive rates, challenging industry norms and demonstrating that one ram could effectively service a larger number of ewes without compromising conception rates.  Beyond his scientific pursuits, Allison was actively engaged in the climate change debate, advocating against the notion of a climate emergency. Jock Allison is survived by his wife Hilary and two daughters.  See omnystudio.com/listener for privacy information.