Early Bird I Tuesday June 25th 2024

Rural assistance payments increased for drought affected farmers and growers, new monthly record set for May exports, and kiwifruit growers on track for largest ever crop. 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! Rural assistance payments increased for drought affected farmers and growers The Coalition Government is increasing financial support for farmers and growers affected by drought in various parts of the country, to help cover essential living costs.  Social Development and Employment Minister Louise Upston announced that Rural Assistance Payments are now available in 38 districts experiencing dry conditions to assist eligible farmers and growers whose incomes have been adversely impacted.  Rural Communities Minister Mark Patterson urged struggling farmers and growers to reach out to their Rural Support Trust to discuss the range of available support and to get assistance with applying for a Rural Assistance Payment if needed.  These payments will be available until November 10, 2024, by which time farmer incomes are expected to improve. More information on Rural Assistance Payments and which regions can apply can be found at workandincome.govt.nz. New monthly record set for May exports A surge in wine and beef exports to the United States propelled New Zealand’s total exports beyond $7 billion in May, setting a new monthly record. This achievement also contributed to a trade surplus of $204 million, according to Stats NZ. The previous monthly export record was $6.95 billion, set in May 2023. Despite anticipating strong exports and a surplus, the actual figures surpassed expectations, according to Westpac senior economist Darren Gibbs. Total exports to the US increased by $255 million year-on-year, reaching $1 billion. While beef exports to China declined by 45%, they rose by 21% to the US. Over the year ending May 31, total exports to the US amounted to $8.8 billion, with imports from the US at $7.3 billion. Exports and imports were stronger than predicted, and exports were a notable positive factor in recent GDP data. GDP increased by 0.2% in the March 2024 quarter but decreased by 0.3% per capita. In the year ending May 31, beef exports to the US were valued at $1.7 billion, wine at $789 million, and sheep meat at $609 million. The US remains New Zealand's largest wine export market, followed by the UK at $448 million and Australia at $368 million. Gibbs attributed the latest export numbers to China to weak Chinese demand, increased Chinese self-sufficiency, and strong competition from Australian exporters. May is typically a peak month for exports, being the height of the fruit season and a strong period for meat, dairy, and vegetable exports. Kiwifruit growers on track for largest ever crop Kiwifruit marketer Zespri has announced that New Zealand’s leading horticulture export industry is poised to achieve its largest crop ever, with a goal of $4.5 billion in global sales for this season. The grower-owned company forecasts a record 197 million packed trays of fruit for the 2024-2025 season, reflecting improved yields. Per hectare orchard gate returns have increased from last season, with current midpoint forecasts exceeding last season’s final per hectare returns for all pools. Record-level returns per hectare are expected for both green and organic green fruit. However, indicative per tray returns have slightly decreased from last season’s record highs. Zespri posted $3.99 billion in global sales last season. Outgoing chief executive Dan Mathieson acknowledged some challenges this season but noted continued strong demand, with the industry’s efforts to consistently deliver high-quality fruit supporting robust sales in key markets. Zespri’s June indicative per tray forecast for green fruit is $7.50-8.50, compared to $7-8.50 in March. SunGold, Zespri’s global best-seller, is forecast to achieve $10-11.25 per tray, compared to $10-11.50 in March. MPI joins forces to combat fall armyworm The Ministry for Primary Industries (MPI) is helping to develop an integrated pest management approach to protect New Zealand’s maize and sweetcorn industries from the fall armyworm.  The fall armyworm, believed to have arrived in New Zealand from Australia following a cyclone in early 2022, poses a significant threat to the country’s maize and sweetcorn crops. After a year of battling the pest, MPI and its industry partners decided to shift focus from immediate response to long-term management. The invasive pest could potentially affect almost 73,000 hectares of maize, and 3,320 hectares of sweetcorn production. This initiative involves cooperation with the Foundation for Arable Research (FAR), Process Vegetables NZ, Vegetables NZ Inc, and growers to formulate management and mitigation strategies aimed at reducing production losses and enhancing industry resilience, according to Biosecurity New Zealand's deputy director-general Stuart Anderson. The project will focus on creating early warning tools for agronomists and growers to determine the optimal times for deploying intensive management strategies. This comprehensive approach, tailored to regional and climatic differences, will range from encouraging beneficial insects to using insecticides in more problematic areas, with careful timing being crucial. Over the next three years, the project will delve into understanding fall armyworm phenology and distribution, developing New Zealand-specific economic thresholds, and seeking long-term solutions that minimise reliance on agrichemicals while preserving soil health, water quality, and biodiversity.  Fined dished out to sharemilkers and farm owner responsible for careless accident WorkSafe has highlighted the dangers posed by a recent incident in the West Coast's Maruia Valley, where a motorbike rider was severely injured after striking bungy ropes strung across a public road. The ropes were set up by sharemilkers to relocate 800 cows over a 100km/h stretch of road in 2021. Due to a lack of signage, the rider did not see the ropes in time, resulting in a crash that caused him to be thrown off his bike, slide along the road, and hit a fence post. He sustained fractures to his right rib and a laceration to his right kidney, requiring hospitalisation. The sharemilkers, Te Koru Wai Limited, and the farm owner, Dairy Holdings Limited, have been charged by WorkSafe for failing to meet health and safety regulations. Te Koru Wai Limited was fined $220,000 and ordered to pay reparation of $13,200, while Dairy Holdings Limited faced a $211,700 fine and was ordered to pay $8,800 in reparation. Judge Jane Farish, during sentencing, emphasised that the hazard was extremely obvious and could have been easily mitigated. She noted that blocking a public road should trigger significant safety measures. WorkSafe’s national investigations manager, Casey Broad, says that working farms, like any other business, have a responsibility to ensure safe practices, and WorkSafe's role is to ensure these responsibilities are met and to hold businesses accountable if they fail. See omnystudio.com/listener for privacy information.