Early Bird I Thursday September 5th 2024

A mixed bag of results at the latest Global Dairy Trade auction, farmers welcome ‘common sense’ pause on freshwater plans, and Southland’s economy gets dairy boost with Fonterra’s major investment. 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! A mixed bag of results at the latest Global Dairy Trade auction The latest Global Dairy Trade auction has delivered a mixed bag of results for New Zealand's dairy sector. Overall prices saw a slight dip of 0.4%, following a significant 5.5% increase two weeks ago. Whole milk powder, the product with the greatest impact on Fonterra's farmgate milk price, decreased by 2.5% after a substantial 7.2% rise in the previous auction. However, it's not all downward movement. Skim milk powder, Fonterra's second most important reference product, saw an increase of 4.5%. Other products showing positive trends include Butter milk powder, up 8.4%, Mozzarella rose 7%, Cheddar had a modest 0.9% rise and Anhydrous milk fat was up 0.7%. On the downside, butter fell 0.9% while lactose saw the largest decrease, dropping 8.9%. Government slashes red tape to empower local farming decisions The Government has unveiled a series of major policy changes aimed at reducing regulatory burdens on the farming and primary sectors. Agriculture Minister Todd McClay says these reforms will "get Wellington out of farming" and empower local decision-making. At the heart of these changes is a comprehensive review of national-level policies affecting the primary sector. This forms part of the government's broader Resource Management Act reforms, with a second RMA Amendment Bill in the works. Key areas targeted for change include freshwater management, indigenous biodiversity, commercial forestry, marine aquaculture, and quarrying. The government aims to create a more balanced approach for all water users, clarify drinking water standards, and adjust indigenous biodiversity policies to protect unique environments without unduly restricting land use. For our farming community, one of the most significant announcements is the pause on the rollout of freshwater farm plans. The government intends to improve this system, making it more cost-effective and practical for farmers. Commercial forestry regulations will see a rollback of increased council discretion for afforestation, while the aquaculture industry can expect changes to support innovation and growth potential for marine farms. The reforms also aim to make quarrying materials more readily available, supporting infrastructure projects crucial to our rural communities. Minister McClay says that these changes are designed to slash red tape and remove one-size-fits-all regulations that have weighed down the primary sector. The government is seeking feedback from sector groups to ensure the changes are fit for purpose. This package of reforms is part of a broader effort to modernise the resource management system. The government expects to introduce the second RMA Amendment Bill in December, with the aim of passing it into law by mid-2025. The ultimate goal of these sweeping changes is ambitious: to double the value of all exports, including food and fibre products, within the next decade. Farmers welcome ‘common sense’ pause on freshwater plans Federated Farmers has thrown its support behind the government's decision to pause the rollout of freshwater farm plans, calling it a practical and pragmatic move that will bring relief to farmers across the country. Colin Hurst, Federated Farmers' freshwater spokesperson, says the pause allows time to address significant issues with the current system. Hurst says farmers have been living with uncertainty for the past year, and this decision brings some much-needed clarity. The organisation backs the use of farm plans as a flexible and affordable alternative to national rules or resource consents. However, Hurst stresses that these plans must be practical, cost-effective, and user-friendly to truly benefit farmers and the environment. Criticism of the previous government's approach is sharp. Hurst describes it as a "bureaucratic birds' nest" that took a good concept with widespread support and made it "completely unworkable and unaffordable." A major concern was the potential cost to farmers, with some facing bills running into five figures for new plans. This was particularly frustrating for the more than 10,000 farmers who already have plans through milk processors, meat processors, or regional councils - none of which would have been recognized under the current regulations. The rollout timeline has also been a source of stress. Thousands of farmers in Southland and Waikato were expected to have certified plans by February 2025, despite a lack of certifiers until recently. Federated Farmers reports that after a year under the new rules, only one farmer in the entire country has received an approved certified freshwater farm plan. This development underscores the importance of practical, on-the-ground knowledge in crafting environmental policies that work for both farmers and our waterways. It's a reminder that effective environmental stewardship often starts with those closest to the land. Government funding aims to grow female representation in horticultural leadership The government has announced a significant investment to empower women in the horticulture industry. A $300,000 funding package, spread over three years, will support the United Fresh Women in Horticulture initiative, aiming to enhance networking and career progression for women in the sector. Associate Minister of Agriculture and Minister for Women, Nicola Grigg highlighted that while women make up about half of the horticulture workforce, they occupy only 20 percent of leadership roles. This initiative seeks to address this imbalance and close the resulting gender pay gap. The Women in Horticulture program will offer workshops and professional development sessions, enabling women to upskill and reach their full potential within the industry. It's designed not only to benefit individual women but also to influence industry attitudes positively, encouraging the retention and recognition of women in horticulture. Minister Grigg emphasised the government's commitment to growing the economy and supporting primary industries. This initiative aligns with that goal while also aiming to make New Zealand a world leader in gender equity within the horticultural sector. For women working in horticulture, this funding presents a valuable opportunity for career advancement. The program will provide tools and resources to help women overcome barriers to leadership positions and achieve greater representation at decision-making levels. Southland’s economy gets dairy boost with Fonterra’s major investment Fonterra has announced a significant $150 million expansion of its Edendale plant in Southland. This move is set to create 70 new jobs and further strengthen the region's already robust economy. The expansion will see the construction of a new UHT cream plant at the Edendale site. Fonterra's Chief Executive, Miles Hurrell, shared this news while on a senior New Zealand business delegation with Prime Minister Christopher Luxon in Malaysia. This investment aligns with Fonterra's strategy to grow value by expanding its foodservice business in Asia and increasing production capacity for high-value products. Hurrell notes that global demand for UHT cream is expected to rise by more than 4% year-on-year between 2023 and 2032. The new plant will initially create over 50 million litres of UHT processing capacity, with potential to grow beyond 100 million litres by 2030. This expansion follows a recent announcement of growth at Fonterra's Studholme site, underlining the co-operative's commitment to its ingredients and foodservice channels. Anna Palairet, Fonterra's Chief Operating Officer says that ongoing decarbonisation work and a good supply of high-quality cream in the region make it an ideal location for expansion. Construction is scheduled to start early next year, creating additional employment opportunities during the building phase. The first product is expected to come off the line in August 2026. See omnystudio.com/listener for privacy information.