Early Bird I Thursday August 29th 2024

US remains top buyer of Kiwi red meat for fourth straight month, Fonterra invests $75 million in South Island protein hub, and trade hurdles cleared for deer exports to China. 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! US remains top buyer of Kiwi red meat for fourth straight month New Zealand's red meat industry continues to show resilience in the face of changing global markets, according to the latest analysis from the Meat Industry Association.  The United States has emerged as the leading destination for New Zealand red meat, holding the top spot for the fourth consecutive month. This consistent demand from the US market has helped offset weakening Chinese demand, demonstrating the value of market diversification. Overall, July saw total red meat exports reach $773 million, a minor dip of two percent compared to the same month last year. While this slight decrease might raise eyebrows, a closer look at the numbers tells a more nuanced story. Exports to the US jumped by 11 percent to $248 million, showcasing the strength of this key relationship. The United Kingdom also showed significant growth, with exports surging by 72 percent to $49 million. Canada and Japan likewise increased their appetite for Kiwi meat, with rises of 33 percent and 24 percent respectively. China, while remaining the second-largest market, experienced a 37 percent decline to $153 million. However, growth in other markets, including the Netherlands, Germany, Australia, and Korea, helped cushion this impact. Sirma Karapeeva, chief executive of the Meat Industry Association, highlighted the industry's ability to adapt to changing market conditions. She noted that the volume and value of sheepmeat exports actually increased compared to last July, with the US market holding steady and significant growth in the UK and EU markets. In the beef sector, while overall export volumes dipped, the value of beef exports to the US increased by six percent to $165 million, despite a similar drop in volume. This suggests that demand for quality New Zealand beef remains strong in the American market. Sheepmeat exports saw an eight percent increase in volume to 25,977 tonnes, with value up five percent to $256 million. The UK market was particularly strong, with volume up 92 percent and value increasing by 95 percent to $40 million. The industry also saw growth in fifth quarter exports, which rose by seven percent to $160 million. Notably, products for the pharmaceutical sector surged by 128 percent to $33 million, highlighting an often-overlooked value stream for New Zealand's livestock industry. Synlait faces challenge over recapitalisation strategy Synlait Milk finds itself at the centre of a heated debate over its recapitalisation plan. The dairy and infant formula manufacturer, grappling with high levels of debt, now faces a complaint from its co-founder and former leader, John Penno. Penno, who holds a 2.3% stake in Synlait, has raised concerns with NZ RegCo and the Takeovers Panel regarding the voting rights of major shareholders in the upcoming recapitalisation decision. He argues that under current rules, Bright Dairy and a2 Milk should not have voting power on the resolutions. The recapitalisation plan, set for a vote on September 18, would see Bright Dairy's ownership climb from 39% to 65.25%, while a2 Milk would maintain its current 19.8% stake. This arrangement would leave these two entities controlling about 85% of Synlait's voting capital, significantly diluting the influence of retail shareholders. Synlait, however, stands firm on its position. The company maintains that it has adhered to all relevant regulations and intends to challenge the complaint before the shareholder meeting. Adding to the controversy, the New Zealand Shareholders' Association has voiced strong criticism of the plan. NZSA Chief Executive Oliver Mander described it as a 'dead rat' for minority shareholders, effectively signalling the end of Synlait as a viable investment , Fonterra invests $75 million in South Island protein hub Fonterra has announced a major investment in its South Island operations. The dairy giant plans to expand its Studholme site, creating a hub for high-value proteins with a $75 million upgrade. Fonterra CEO Miles Hurrell says this move aligns with the co-operative's strategy to increase returns to farmers through its world-leading Ingredients division. The expansion will allow Fonterra to boost production of advanced dairy proteins, tapping into a rapidly growing global market. Richard Allen, Fonterra's President of Global Markets Ingredients, highlighted the significant potential in this sector. He says that the global high-protein dairy category is expected to grow by nearly $10 billion over the next four years, with an annual growth rate of 7%. Construction at Studholme is set to kick off next month, with the first products expected to roll off the line in 2026. While focusing on advanced proteins, the site will continue its crucial role in milk processing for South Island dairy farmers. In line with Fonterra's sustainability goals, the project will support the conversion of Studholme's existing coal boiler to a coal-free alternative. This aligns with the co-operative's commitment to exit coal use by 2037, demonstrating a balance between economic growth and environmental responsibility. Trade hurdles cleared for deer exports to China New Zealand's deer farming industry is celebrating a major breakthrough in international trade. An agreement has been reached on new regulations that will restore market access for Kiwi frozen deer velvet exports to China, a development that holds significant promise for the sector's future. Rhys Griffiths, Chief Executive of Deer Industry NZ (DINZ), hailed the agreement as a demonstration of "good-faith intention amongst the regulators" on both sides. This diplomatic success comes after months of negotiations following China's announcement of rule changes for imported velvet used in traditional Chinese medicine last October. The Ministry for Primary Industries (MPI) is now in the process of drafting separate lists of premises and developing health certificates for both frozen and dried velvet. These documents will require China's approval before implementation. Once finalised, the Overseas Market Access Requirements for China will be updated, allowing the use of these new certificates. For deer farmers across New Zealand, this news brings a sigh of relief and a surge of optimism. Trade in frozen velvet is expected to resume for the 2024-2025 season, opening up valuable opportunities in one of the world's largest markets for deer velvet products. It's important to note that since May 1 this year, China has only permitted the import of dried velvet as a traditional Chinese medicine ingredient. The new agreement addresses this challenge by providing a clear pathway for frozen velvet exports to resume. For more on the deer industry and its future, listen to The Country-Wide Podcast Episode 22 available wherever you get your podcasts, or simply click below. https://country-wide.co.nz/episode-22-exciting-times-ahead-for-the-deer-industry/ Hari Hari herds TB-free after four-year battle In a major win for New Zealand's agricultural sector, the West Coast settlement of Hari Hari has achieved TB-free status for its cattle herds after a challenging four-year struggle. This achievement marks a significant milestone in the national TBfree plan and offers hope to other farming communities grappling with the disease. The recent outbreak affected 17 herds, representing a quarter of all cattle in the Hari Hari region. OSPRI Chief Executive Sam McIvor hailed the achievement as a testament to the community's dedication and the effectiveness of coordinated disease control efforts. McIvor emphasised the systematic approach and teamwork required to overcome TB. He noted that OSPRI worked closely with the local community and partner agencies to design and implement a tailored disease control plan for the Hari Hari area. The eradication effort involved a multi-faceted strategy. Regular herd testing formed the cornerstone of the control efforts. Additionally, an extensive wildlife management program targeted wild animals in both farmland and surrounding native areas. This comprehensive approach utilised ground and aerial control methods to reduce wildlife numbers effectively. While celebrating this victory, OSPRI remains vigilant. Surveillance data indicates potential infection remnants in the Upper Whanganui area. To address this, another round of aerial treatment is planned, alongside ongoing efforts to maintain low wildlife numbers across the entire region. McIvor cautioned against complacency, noting the resilient nature of TB. He stressed the need for continued vigilance and ongoing disease control work in the coming years. This will include regular monitoring and testing of both cattle and wildlife for any signs of TB resurgence. The Hari Hari success story contributes to a national trend of declining TB cases. With this latest achievement, the total number of TB-infected herds across New Zealand has dropped to just 12, the lowest on record. This stands in stark contrast to the estimated 1,700 infected herds in 1995.     See omnystudio.com/listener for privacy information.