Early Bird I Tuesday June 4th 2024

Rural sector acknowledged in King's Birthday honours, Synlait reveals a majority of its suppliers want out, and entries open for Beef and Lamb New Zealand awards.  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 sector acknowledged in King's Birthday honours The King's Birthday Honours for 2024 have recognized the contributions of New Zealand's rural community, celebrating individuals from various sectors, including dairy, apiculture, and thoroughbred racing.  Among the recipients this year, Vincent Ashworth, awarded the Companion of The New Zealand Order of Merit, has significantly contributed to agriculture both in New Zealand and internationally. As a senior agriculturalist with the World Bank, he played a pivotal role in improving farming practices in challenging environments across over 30 developing countries. His extensive contributions have also been acknowledged through multiple publications and accolades from Lincoln University. Gordon Glentworth, has been honoured as an Officer of The New Zealand Order of Merit, and has served the livestock and dairy industries for over 35 years, particularly in artificial breeding and genetics. He has significantly influenced breeding agreements, especially for the Ayrshire breed, ensuring its survival and prosperity. Jamie McKay was recognized for his services to broadcasting and the rural community, making significant contributions as a broadcaster in supporting and promoting rural issues. Murray King, also awarded the Member of The New Zealand Order of Merit, has contributed significantly to the dairy industry, especially in the Nelson/Tasman district. His efforts include supporting industry-led initiatives and responding to the Mycoplasma Bovis outbreak.  Sam Lewis, recognized as a Member of The New Zealand Order of Merit, has been involved in farming and various community organisations in the Waikato/King Country since the 1970s. His work includes significant contributions during economic reforms in the 1980s and 1990s.  Allen McCaw, another recipient of the Member of The New Zealand Order of Merit, has significantly contributed to the apiculture industry over 48 years, supporting and promoting New Zealand honey, including the mānuka honey industry. Peter McNeur has been awarded The King’s Service Medal, he has been a key member of the National Executive of the Rural Education and Activities Programme (Reap) and was director of Reap Wairarapa from 1992 to 2023, organising numerous community initiatives.  Fay Taylor, also honoured with The King’s Service Medal, has served the community through Rural Women New Zealand for 66 years, significantly contributing to fundraising for various women’s projects at local, national, and international levels. These honourees exemplify the rich and varied contributions of New Zealand's rural sector, highlighting their impact on both local communities and the global stage. Synlait reveals a majority of its suppliers want out Struggling dairy processor Synlait has confirmed that a significant majority of its farmer suppliers are seeking to leave. In a market announcement to the Australian Securities Exchange (ASX) on Monday morning, Synlait acknowledged the anticipated exodus due to its current performance.  Currently, Synlait's margins are under pressure from various factors, leading it to secure a NZ$130 million loan from its 39% shareholder, Bright Dairy. This loan will be used to repay lenders when the next major loan repayments are due in mid-July.  Amid these financial struggles, Synlait announced that its current season payout is likely to be $7.80 per kgMS, with a forecast of $8.00 per kgMS for the next season. It claims that the average incentive payment to farmer-suppliers is $0.28 per kgMS on top of the base payout levels, and expects next year’s incentives to be similar. Synlait says a significant majority of the company's farmer supplier base have submitted cessation notices.  The notices will not take effect until the 2026 financial year, providing the company some time to attempt to persuade suppliers to withdraw their notices. FENZ levy costs could increase for the rural sector A government proposal to remove the exemption status of forestry and some farm infrastructure from the fire and emergency insurance levy is causing concern among sector leaders, who fear it could lead to no or under-insurance. Insurers are already facing a 12.8% increase in the levy starting July 1, with further increases possible from 2026 if a Department of Internal Affairs proposal for an 11c per $100 insured levy on non-residential property is accepted. Assets that would lose their exempt status include forestry, livestock, crops, silage, hay, hazardous substances, transport infrastructure such as roads and bridges, poles, quarries, retaining walls, fences and walls, water tanks, towers and septic tanks, water reticulation pipes, electrical supply, and telecommunications cabling. A Fire and Emergency NZ (FENZ) spokesperson explained that the 12.8% increase, approved by the previous government, was the first since FENZ was established in 2017 and was intended to support the “fair pay” of firefighters.  Toby Williams, a board member of Federated Farmers, criticised FENZ for treating levy payers as an endless source of funds and urged the organisation to seek efficiencies instead. The NZ Forest Owners Association (NZFOA) also opposed the proposed levy changes and exemptions from 2026, arguing that they could not be justified. They insisted that the levy should be calculated based on the proportion of incidents attended by FENZ. The NZFOA expressed concerns that rural policyholders are unfairly burdened with readiness and overhead costs based on response costs.  Final decisions on changes for 2026-2029 will be made by the government later this year. Muted farm sales across the country Farm sales in New Zealand remain subdued, with 235 farms selling nationwide over the three months to the end of April, according to the latest rural sales figures from the Real Estate Institute of New Zealand (REINZ).  This represents a 7.8% decrease compared to the same period last year and a 49% drop compared to the same period in 2022. The national trend shows a regular seasonal pattern of sales, but with an overall steady decline. Farm prices also softened, with the REINZ All Farm Price Index—adjusted for differences in farm size, type, and location—declining by 13.1% in the three months to April compared to the same period last year.  Similarly, the REINZ Dairy Farm Price Index, which adjusts for differences in the mix of dairy farms sold by size and location, decreased by 10.8% over the same period year-on-year. Shane O'Brien, REINZ rural spokesman, attributed the decline in farm sales to elevated interest rates and unfavourable farm product prices, leading to a general downturn across multiple sectors.  Entries open for Beef and Lamb New Zealand awards Entries have opened for the 2024 Beef + Lamb New Zealand (B+LNZ) Awards, offering those within the sheep and beef industry a chance to highlight their local heroes.  B+LNZ chief executive Sam McIvor is encouraging nominations for individuals, innovations, or technologies that contribute to making New Zealand’s red meat sector world-leading. McIvor also emphasised the importance of recognizing farm staff, teachers, mentors, scientists, community leaders, breeders, technology developers, sector champions, marketers, and those supporting farmer health and well-being.  There are eight categories in the Awards, divided equally between people-focused and industry-focused awards.  Entries will close at the end of July, with judging set for August.  CountryWide Media are proud media partners of the Beef + Lamb Awards and we will have both a special podcast episode on the 2023 finalists on The Country-Wide Podcast soon as well as a special feature in the CountryWide Summer magazine that will profile the winners. Head to country-wide.co.nz to subscribe to the podcast, email newsletter and of course our premium quarterly magazine.  See omnystudio.com/listener for privacy information.