Early Bird I Monday May 20th 2024

Ripples felt industry-wide as Fonterra considers strategic shift, new scholarships aim to boost the countries rural health workforce, and Wairarapa farm takes out prestigious Ahuwhenua Trophy. 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! Ripples felt industry-wide as Fonterra considers strategic shift Fonterra’s plan to sell some or all of its most well-known brands has raised significant concerns among experts and stakeholders. Fonterra’s chief executive, Miles Hurrell, says the sale is intended to simplify operations and enable the company to concentrate on producing and selling dairy products to other companies, aimed to enhance Fonterra's role as a global business-to-business provider of dairy nutrition products.  Any potential sale, which would take 12 to 18 months and require shareholder approval, aims to focus on value over volume, according to Agriculture Minister Todd McClay. McClay suggests that the sale could open up new opportunities for innovation and partnerships, driving better returns for farmers. He emphasises that Fonterra’s high global reputation will likely attract interest from both local and international companies. Massey University marketing professor Bodo Lang argues that the move could have multiple drawbacks for the company and consumers alike.  By selling off brands, which include Anchor, Mainland and Kāpiti, Fonterra risks losing a crucial part of its identity and "face" in the market. Lang and other critics remain cautious about the potential negative impact on New Zealand consumers and the overall brand integrity of Fonterra’s well-known dairy products. Cloud hangs over future of sheep farming sector New Zealand’s sheep industry continues to weather a storm of uncertainty and dwindling profits, triggered by China's abrupt halt on sheepmeat imports.  While much attention has been directed towards the declining lamb prices, the mutton market hasn't escaped unscathed. Farmgate prices for mutton are currently lagging behind the five-year average for May by a significant $2.35/kg, dealing a heavy blow to sheep farmers nationwide. For years, China had been a lucrative market for New Zealand mutton, driving prices to unprecedented heights. However, in the past 11 months, the landscape has shifted dramatically, with average farmgate returns plummeting to levels not seen since 2017. Average export prices have hit a five-year low, despite efforts to diversify export markets. While there has been an uptick in shipments to the Middle East and United Kingdom, China remains the dominant player, accounting for a staggering 75% of New Zealand's mutton exports. Australia's burgeoning mutton production has further complicated matters, flooding export markets and driving down prices. Adding to the industry's woes is a concerning trend revealed by recent data from StatsNZ: a significant reduction in breeding ewe numbers across the country. This downward trajectory underscores the deepening crisis gripping the sheep sector, with low returns stifling demand and casting a shadow over the industry's future. New scholarships aim to boost the countries rural health workforce Rural Women New Zealand is now accepting applications for new scholarships designed to grow the rural health workforce.  The grants range from $2,500 to $5,000, and are part of a $90,000 funding pool provided by Health New Zealand/Te Whatu Ora. RWNZ National President Gill Naylor, says the scholarships are specifically designed for students whose study will benefit healthcare, including areas such as medicine, midwifery, nursing, and allied health. RWNZ has long advocated for government incentives to attract and retain health professionals in rural areas to improve equity of access to healthcare. This funding, now devolved to RWNZ, is seen as a significant step in that direction. Dr. Sarah Clarke, National Clinical Director of Primary and Community Care, recognises the unique challenges faced by rural health students, such as travel and studying away from family. And scholarships can help overcome some of those challenges. Applications for the scholarships close on July 1, with grants awarded in August.  More information on the scholarship criteria and application process is available on the RWNZ website Wairarapa farm takes out prestigious Ahuwhenua Trophy Wairarapa Moana ki Pouakani have emerged as the top winners at this year's Ahuwhenua Trophy awards, which celebrate excellence in Māori dairy farming.  The winners were announced by Māori Development Minister Tama Potaka at an awards celebration in Hamilton on Friday night, attended by Prime Minister Christopher Luxon and Finance Minister Nicola Willis. The prestigious Ahuwhenua Trophy, the highest honour in Māori farming, recognizes outstanding business performance in New Zealand's pastoral and horticultural sectors.  The Wairarapa Moana ki Pouakani farm exemplifies Māori dairy farming excellence by balancing economic benefits with kaitiakitanga—nurturing the land for future generations. Minister Potaka highlighted the significance of Māori farming to the national economy, Statistics NZ reports a substantial growth in Māori businesses in the primary sector, with total sales value increasing by $99 million, from September 2022 to September 2023. \ The event also celebrated the Whakatahea Māori Trust Board, the runners-up, and Ben Purua of Tainui, who won the Young Māori Farmer Award for 2024. New report spotlights food and fibre governance struggles AGMARDT's recent report on governance within New Zealand's food and fibre sector is pointing the spotlight on critical challenges and opportunities facing the industry.  One of the key takeaways is the need for strategic support at all levels of the governance journey, especially for emerging directors. Traditional training methods are deemed insufficient, with the report advocating for a more nuanced approach that includes practical experience. Lee-Ann Marsh, AGMARDT's General Manager, see’s the report as a call to action for stakeholders to collaborate in developing governance talent. Drawing insights from discussions with seasoned and emerging directors, as well as various stakeholders, the report underscores the importance of effective governance pathways from emerging directors to board chairs. A notable finding is the abundance of individuals entering governance roles contrasted with the challenge of nurturing the right talent.  The report also proposes immediate actions, including creating mentoring and coaching opportunities, formalising observer and associate roles, and refining governance training programs to include practical experiences.  AGMARDT invites discussions on potential collaborative funding applications aligned with the report's priorities, particularly to de-risk new initiatives or address gaps unattainable by individual organisations alone.  See omnystudio.com/listener for privacy information.