Early Bird I Thursday June 20th 2024

Latest rural confidence survey shows farmers back themselves but not the economy, butter hits 5 year high at the latest Global Dairy Trade auction, and New Zealand Arable Awards introduce Hall of Fame. 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! Latest rural confidence survey shows farmers back themselves but not the economy Farmers are now more pessimistic about the broader agricultural economy despite improved confidence in the performance of their own operations, according to the latest Rabobank Rural Confidence Survey.  The survey, conducted earlier this month, revealed that after rising in the previous two quarters, farmer confidence in the broader agri economy fell to a net reading of -25 percent from -16 percent. Conversely, farmers’ expectations for their own business performance improved, with the net reading climbing to -1 percent from -9 percent. Rabobank CEO Todd Charteris described the latest survey results as a "mixed bag." He noted that while overall confidence in the agri economy had dipped, there was a notable rise in farmers’ optimism about their own business prospects across all sectors. Sheep and beef farmers, despite remaining the most pessimistic about their business performance, recorded the largest increase in confidence. The survey identified higher input prices of 56 percent, lower commodity prices at 40 percent, and rising interest rates of 37 percent as the major concerns for farmers with a negative outlook on the agri economy. On the other hand, rising commodity prices, government policies, and increasing demand were the top reasons for optimism among those expecting conditions to improve. There was a slight improvement in the number of farmers self-assessing their operations as viable. The percentage of farmers considering their business unviable decreased from nine percent last quarter to seven percent. Investment intentions also rose marginally, though they remained at net negative levels overall. Butter hits 5 year high at the latest Global Dairy Trade auction Prices have eased slightly in the latest Global Dairy Trade auction, with an overall drop of 0.5 per cent. This is the second event of the season, following a 1.7 percent increase two weeks ago. It also marks the first decline in the index since March, despite nine out of 12 auctions this year showing increased prices. Whole milk powder, which significantly impacts Fonterra’s farmgate milk price, slipped by 2.5 per cent. skim milk powder, Fonterra’s second-most important reference product, experienced a slight increase of 0.7 per cent, while lactose saw a rise of 1.9 per cent. Cheddar prices dipped by 1 per cent, and anhydrous milk fat decreased by 1.2, marking its first decline in ten months. However, butter experienced the largest percentage increase, jumping 6.2 per cent, the highest price in five years. Major dairy export quota review the first in almost two decades Fonterra was the only New Zealand dairy exporter favouring the current system for dairy export quota eligibility during a major review of the outdated system, as revealed by Ministry for Primary Industry (MPI) documents released under the Official Information Act.  These documents, briefings to Agriculture Minister Todd McClay, indicated the review found that export quota was underutilised and that the existing system limited the ability of a more diverse range of New Zealand dairy businesses to enter quota markets and expand their export base. The quota system administers the allocation of export quotas for the US, UK, EU, Japan, and the Dominican Republic, allowing specified quantities of dairy products to benefit from advantageous tariff rates in these markets. The review, the first in 17 years, found 10 New Zealand dairy processors qualified for a share of the quota, but only half typically applied each year. Many other businesses exporting dairy products were ineligible because they did not collect milk from farmers. Non-bovine dairy product exporters were also excluded from quota eligibility, despite some trade agreements permitting these products under quota. The review also recommended three major changes to improve the allocation system. These included changing the basis of allocation from milk solids volume collected to export history, introducing a regulation to reserve portions of quota for otherwise ineligible exporters or those eligible for small volumes, and providing access to non-cow dairy exporters, such as goat and sheep milk producers, on the same terms as cow dairy exporters. MPI stated that McClay had agreed to advance work on these changes, although Cabinet has yet to consider any proposals or make related decisions. If Cabinet approves, the changes could be in place by next year for 2026 allocations. MPI papers show that the recommended changes would decrease some exporters’ entitlements from the status quo. However, the benefits of widening eligibility were considered to outweigh these costs. Quota trading among exporters would still be permitted, but without restrictions on participants. New Zealand Arable Awards introduce Hall of Fame The New Zealand arable industry is preparing to celebrate its innovators and heroes by rewarding excellence at its annual NZ Arable Awards, an event created by the industry for the industry. Organised collaboratively by Federated Farmers, the Foundation for Arable Research , United Wheatgrowers , and the Grain and Seed Trade Association , the awards recognize, celebrate, and reward excellence within the sector.  The arable industry generates $1 billion in farmgate sales annually, with the seed sector alone increasing its volume by more than 40% over the past five years, reaching over 85,000 tonnes.  A total of seven industry champions will be recognized, including the Arable Farmer of the Year, Maize Farmer of the Year, Seed Grower of the Year, and Grain Grower of the Year. Additional categories include the innovation award, which recognizes individuals or teams whose research, technology, product development, or marketing has added value to the industry, and the positive environmental impact award, which honours an arable farmer who has addressed environmental concerns within their business. This year’s awards will introduce the industry’s Hall of Fame, which will honour individuals who have made significant contributions to the arable industry.  The finalists will be announced next month, with the awards dinner scheduled to take place in Christchurch on August 15. Hort NZ offers scholarships for its leadership programme Horticulture New Zealand is inviting growers and their employees to apply for the 2024 Horticulture New Zealand Leadership Programme Scholarships. The programme is tailored for both emerging and current leaders across all age groups in the fruit and vegetable industry.  The objective of the programme is to develop a strong pool of high-performing leaders equipped to navigate the complex and unpredictable operating environment of the horticulture industry. It primarily targets growers, their employees, or individuals from organisations closely related to growing. The programme involves two residential courses. The first course will take place during August in Auckland, and the second course in Wellington in October. HortNZ is offering 12 scholarships that cover all course fees and accommodation costs, with scholars only needing to cover their travel expenses. Additionally, up to six non-scholar positions are available on the programme. Applications close on July 5th, for more details head to hortnz.co.nz  See omnystudio.com/listener for privacy information.