Early Bird I Thursday August 8th 2024

Fonterra’s key products see contrasting fortunes in latest dairy auction, scientists rally behind government’s agricultural review, and dairy community shocked by sudden death of industry stalwart. 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’s key products see contrasting fortunes in latest dairy auction The latest Global Dairy Trade (GDT) auction has shown a modest improvement, with overall prices rising 0.5% across the board. This marks the second consecutive increase following a significant 6.9% drop in early July, offering a glimmer of hope for dairy farmers grappling with market volatility. Whole milk powder, which has the most significant impact on Fonterra's farmgate milk price, rebounded with a 2.4% increase. This recovery is welcome news after the 1.6% fall in the previous auction. However, skim milk powder, Fonterra's second-biggest reference product, continued its downward trend, falling 2.7%. Other dairy products showed mixed results. Cheddar saw a 1.3% increase, while anhydrous milk fat rose 1.2%. Butter milk powder increased by 3.4%, but butter took a hit, dropping 2.4%. Mozzarella and lactose were the standout performers of the auction. Mozzarella prices leaped by an impressive 8.4%, while lactose surged by a remarkable 16.1%. Fonterra's farmgate milk price forecast for the 2024-2025 season remains unchanged, with a range of $7.25 to $8.75 per kilogram of milk solids and a midpoint of $8. The co-operative has also narrowed its 2023-2024 season forecast to between $7.70 and $7.90 per kilogram of milk solids, maintaining the midpoint at $7.80. Scientists rally behind government’s agricultural review New Zealand's scientific community is voicing strong approval for the government's decision to review the country's agricultural and horticultural product approval system. The announcement, made last week, aims to address long-standing concerns about delays and complexity in the current regulatory framework. University of Auckland's associate professor Melanie Kah welcomed the initiative, describing the current regulatory framework as outdated. She advocates for a more holistic approach to risk evaluation, suggesting that human and environmental health should be considered together rather than as isolated factors. AgResearch chief scientist Dr Axel Heiser views the review as a chance to leverage technological advancements for improved risk management. He emphasised that timely access to effective, safe solutions is vital for farmers and growers to meet evolving market demands. Adding to the chorus of approval, Plant and Food Research chief scientist Dr Richard Newcomb highlighted the review's relevance to ongoing industry trends. He pointed out that new organic alternatives not only offer more sustainable solutions but are becoming increasingly necessary as chemical residue limits on products affect market access for New Zealand goods. Newcomb also drew attention to international developments, such as Europe's Green Deal, which aims to halve chemical pesticide use in the European Union. This global shift is driving the creation of organic solutions overseas, which will need to be efficiently imported and registered in New Zealand. The comprehensive evaluation, led by the Ministry for Regulation with input from other relevant government departments, is set to conclude with a report by the end of the year. Dairy sector labour crunch Intensifies as visa delays persist Immigration New Zealand has defended its position on farm worker visas, emphasising its commitment to addressing labour shortages in the rural sector. This comes in response to recent criticism from farming organisations about the challenges of recruiting overseas workers. A spokesperson for Immigration New Zealand stated that they are acutely aware of the staffing pressures faced by dairy farmers, particularly during calving season. They highlighted recent adjustments made to visa requirements as evidence of their responsiveness to industry needs. The agency pointed out that they have temporarily eased certain criteria for dairy farm worker visas. These changes include waiving the minimum skills threshold, relevant prior experience, and English language requirements for some applicants already in New Zealand. Immigration New Zealand stressed that these measures are designed to help get workers onto farms more quickly, addressing immediate labour shortages. They emphasised that this flexibility applies to applicants for Dairy Cattle Farm Worker roles who were in the country on August 2nd, 2024, and applied for an Accredited Employer Work Visa between April 7th and August 2nd. Furthermore, the agency has extended priority processing for dairy farm worker and dairy farmer visa applications until September 1st. This extension aims to cover the majority of the South Island calving season. While acknowledging that these are short-term solutions, Immigration New Zealand says that they are actively working on longer-term strategies to address ongoing labour needs in the agricultural sector. Immigration New Zealand also encourages farmers to continue providing feedback on their experiences with the visa process, stating that this input is crucial for shaping future policies that benefit the rural sector. Dairy giant forced to retain coal power amid national energy shortfall New Zealand is facing an energy crisis that it has "sleepwalked" into, according to Laurie Margrain, chairman of Open Country Dairy, the country's second-largest dairy exporter. Margrain warns that this crisis is not a future threat but a present reality, with significant implications for the nation's $26 billion dairy export industry. The severity of the situation is exemplified by Open Country's recent decision to incorporate standby coal-fired boilers into its new, state-of-the-art cheese factory in Southland. Despite the company's commitment to phase out coal use by the end of 2025, the "certain" risk of insufficient electricity generation has forced this compromise. Margrain has expressed frustration at the broader issue of national energy infrastructure failing to keep pace with industry efforts to reduce emissions. He is calling for urgent action to address New Zealand's energy challenges, stating that the country needs to move beyond discussion and implement solutions immediately. He argues that while companies are doing their part to reduce emissions, national infrastructure must keep pace to support these efforts. As the sector strives to reduce its carbon footprint, it finds itself constrained by broader infrastructure limitations, highlighting the need for a coordinated approach to energy policy and industrial development. Dairy community shocked by sudden death of industry stalwart Tributes are flowing after the death of respected Morrinsville farmer Jeff Bolstad, who died tragically while milking cows on his farm. The New Zealand Dairy Industry Awards (NZDIA) has released a statement acknowledging Bolstad's significant contributions and expressing condolences to his family. Bolstad was known as a passionate advocate for the dairy industry and a dedicated supporter of the NZDIA. His unexpected passing has sent shockwaves through the farming community, with many remembering him as a mentor and guide to up-and-coming farmers. In 2021, Bolstad received the inaugural Lifetime Contribution to NZDIA Award, recognizing his years of service to the industry.  Beyond his work with the NZDIA, Bolstad was actively involved in Federated Farmers and various community projects. He was known for his ability to form strong relationships and his willingness to offer guidance to others in the industry. The NZDIA praised Bolstad's humility and his preference to work behind the scenes, using his strengths to encourage and support others. They described him as "one of a kind" whose loss will be deeply felt throughout the industry. Worksafe is currently investigating the accident. See omnystudio.com/listener for privacy information.