Early Bird I Tuesday September 10th 2024

Synlait stops milk processing at its Pokeno site, government backs rural health force with student scholarships, and tragic weekend puts spotlight back on farm quad bike safety. 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! Synlait stops milk processing at its Pokeno site Synlait has announced it will keep its Pokeno milk plant in Waikato but cease milk processing operations there.  The $280 million Pokeno facility will now focus solely on producing advanced nutrition products that don't require raw milk. Synlait's 54 Waikato farmer suppliers will have their milk collected and processed by Open Country Dairy instead. The company has completed a strategic review of its North Island assets as part of its business recovery plan. Chief executive Grant Watson says the review has provided a pathway to profitability for their North Island operations. The company found that switching between plant-based proteins and dairy processing was hindering operational efficiency at Pokeno. Synlait's main dairy operations will remain centered at its Dunsandel facility in Canterbury. While the company isn't actively seeking a buyer for Pokeno, it may consider a sale if a compelling offer is made. This decision comes as Synlait works to pay down debt and improve its financial performance. The company assures that it will meet all contractual obligations to its North Island farmers, including incentive payments. Synlait's capital raise plan faces scrutiny as shareholders prepare to vote Meanwhile, Synlait’s proposed capital raise is under intense scrutiny as the New Zealand Shareholders Association (NZSA) remains undecided on whether to support it. The plan, described as a "dead rat" for minority shareholders, is deemed critical by the company for its future. Recent developments have added complexity to the situation. Market regulators rejected a complaint by John Penno, which argued that Bright Dairy and The a2 Milk Company shouldn't be allowed to vote on each other's placements. Shareholders will gather next week to vote on the proposed placements. If approved, Bright Dairy would take a controlling stake with a $185 million investment, while a2 Milk would maintain its 19.8% stake. Minority shareholders would see their stake diluted to 14%. The NZSA is pushing for Bright to commit to selling down 15% of its stake within three years, aiming to restore minority shareholder interest. However, without this commitment, the association is finding it difficult to decide on its stance. Synlait has warned it may cease trading if the plan fails, citing $180 million in bonds due in December. The company has also raised its forecast milk price to $8.60 per kilogram of milk solids, slightly above Fonterra's midpoint. Concerns remain about potential insolvency and its impact on milk collection. Agriculture Minister Todd McClay is monitoring the situation but hasn't sought official advice yet. Government backs rural health force with student scholarships In a move to bolster the rural health workforce, 27 healthcare students have been awarded scholarships, as announced by Associate Health Minister Matt Doocey. This initiative aims to improve healthcare access for the one in five New Zealanders living in rural communities. Rural Women New Zealand is distributing scholarships ranging from $2,500 to $5,000 to students from rural backgrounds pursuing various healthcare specialties. These include Medicine, Nursing, Midwifery, Physiotherapy, Pharmacy, Māori Nursing, and Applied Counselling. The scholarships, funded through a $90,000 investment from Health New Zealand | Te Whatu Ora, are part of the government's strategy to address key healthcare issues in rural areas. Minister Doocey emphasised that increasing and retaining the health workforce is a priority for improving health outcomes across New Zealand. This initiative recognizes the unique challenges faced by rural communities in accessing healthcare services. By supporting students from rural backgrounds, the government hopes to encourage them to return to these areas after completing their studies, thereby strengthening the rural health workforce. This program represents a step towards the government's commitment to ensuring all New Zealanders have timely access to quality healthcare, regardless of their location. Kiwi wool innovation breathes new life into global air purifier market New Zealand wool technology has achieved a major milestone as local company Lanaco announces a groundbreaking partnership with Blueair, a leading air purifier manufacturer owned by Unilever. This collaboration marks a significant advancement in the commercialization of Lanaco's Ecostatic wool filters and introduces a sustainable alternative to the synthetic filters dominating the global air purifier market. Lanaco's innovative wool filters have already made waves internationally, from NASA space missions to protecting New Zealand Olympians from COVID-19. Now, through this partnership with Blueair, which operates in 60 countries, these wool filters are set to revolutionise air purification in homes worldwide. Nick Davenport, Lanaco's founder and chief executive, hails this partnership as a transformative moment for the global air filtration market. He says that Lanaco's wool-based filter media offers superior performance and sustainability credentials, aligning perfectly with Blueair's commitment to innovation and environmental responsibility. The technology behind these filters is supported by the Ovis Global Astino sheep breeding programme, which focuses on producing wool with superior filtration properties. This initiative presents a significant long-term growth opportunity for New Zealand's farming sector, potentially benefiting thousands of tonnes of locally produced wool. Blueair CEO Andy Lu describes the partnership as a milestone not just for his company, but for the entire air purification industry. The introduction of woollen, biodegradable filters represents a major shift towards more sustainable air purification solutions. For New Zealand's wool farmers, this development could signal a new era of demand for their product. The global filter media market, valued at over US$8 billion, offers substantial opportunities for high-quality New Zealand wool. Lanaco is already working on several other high-volume market opportunities, suggesting a bright future for this innovative use of wool. Tragic weekend puts spotlight back on farm quad bike safety The rural community is grappling with the harsh reality of quad bike dangers following two tragic incidents over the weekend. In the Hauraki District, emergency crews rushed to a Kaihere farm on Saturday afternoon, responding to a quad bike rollover. Despite the swift arrival of an Auckland Westpac Rescue Helicopter team, a young life was lost.  The following day authorities were called to a property on Springbank Road in Canterbury, shortly after 5:30 PM.. Upon arrival, they discovered one person had died at the scene. These incidents have prompted renewed calls for heightened awareness and caution when operating quad bikes on rural properties. WorkSafe New Zealand reports that last year saw one confirmed quad bike-related fatality, a number that has already been exceeded in 2024. Rural safety advocates are urging farmers and their families to revisit their quad bike usage guidelines. They stress the importance of proper training, wearing protective gear, and assessing terrain conditions before riding. Authorities are conducting thorough investigations into both incidents. The Serious Crash Unit has examined the scenes, and the cases will be referred to the Coroner for further inquiry. See omnystudio.com/listener for privacy information.