Early Bird I Wednesday May 22nd 2024

Beef and Lamb New Zealand refute baseless claims against Kiwi lamb sold in Britain, farmers see the benefit of Fonterra’s potential divestment and new project takes aim at reducing methane levels in effluent ponds. 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! Beef and Lamb New Zealand refute baseless claims against Kiwi lamb sold in Britain Beef and Lamb New Zealand has strongly refuted claims made by the UK's National Farmers Union (NFU) suggesting that New Zealand lamb is produced to lower standards compared to British lamb.  This dispute arose following the announcement that supermarket chain Morrisons would begin selling New Zealand lamb in 39 of its stores, a decision NFU livestock board chairperson David Barton criticised. Barton also claimed that New Zealand lamb might be produced to potentially lower standards. In response, Kate Acland, chairperson of Beef and Lamb New Zealand, robustly denies these allegations, and clarified that comparisons made in the Animal Health Development Board report were not valid as they did not consider the different farming practices between the two countries, such as the use of barns in the UK versus open pastures in New Zealand. Acland emphasised that the RSPCA had recognized New Zealand for having superior farm animal welfare standards compared to the UK. She explained that the lower cost of New Zealand lamb was due to the country's efficient farming practices, favourable climate, and advanced sheep genetics, not lower production standards. She also pointed out the complementary seasons between the UK and New Zealand, which allow for a steady supply of lamb year-round, benefiting both consumers and farmers in both countries by stabilising the market and supporting price levels.   Farmers see the benefit of Fonterra’s potential divestment Fonterra's proposed divestment of its Australian and consumer businesses has garnered positive reactions from its farmer-shareholders, who stand to benefit from a significant capital return of up to $2 per share.  The plan involves selling up to 17 plants in Australia, New Zealand, and Southeast Asia, along with all consumer brands, such as Anchor, Mainland, Anlene, and Anmum. Arie Dekker, head of research at Jarden, says that the core business of New Zealand milk collection and processing, combined with NZMP ingredient sales, should remain robust, generating close to $1 billion in earnings annually, with a net profit of around $580 million and earnings per share of 36 cents. Fonterra's balance sheet is already strong, and analysts like Dekker believe that the company’s management will avoid reckless investment post-divestment. The focus will likely remain on enhancing the core business of New Zealand milk. New project takes aim at reducing methane levels in effluent ponds A new project spearheaded by Lincoln University and Ravensdown marks a significant advancement towards equipping farmers with an affordable solution to mitigate methane emissions from effluent storage ponds.  Effluent ponds represent the second-largest source of on-farm methane emissions in the dairy sector. Early research results have been promising, showing that treating effluent with iron sulphate can reduce methane emissions by over 90 percent. Professor Hong Di notes that, besides lowering emissions, the EcoPond system can also help reduce freshwater contamination from phosphate and E. coli bacteria. Although the EcoPond system is not yet commercially available, the project will build on previous small-scale trials. Researchers will collaborate with farmers to refine the technology and work with Ravensdown to develop a commercial, cost-effective version that farmers can use.  The technology will also be tested in various seasons to evaluate its year-round benefits.  The Ministry for Primary Industries is co-investing $2.9 million in the project through the Centre for Climate Action on Agricultural Emissions, with additional support from Ravensdown.   SFF fund projected growth to aid dairy sector The Sustainable Food and Fibre Futures (SFF Futures) fund, is projected to generate significant economic benefits, estimated at $1.1 billion over the next decade and rising to $4.3 billion after 30 years.  Administered by the Ministry for Primary Industries (MPI), the SFF Futures fund has committed $270 million to 260 projects since 2019, aimed at addressing challenges and fostering innovation in New Zealand’s food and fibre sector. These projects are co-funded by the private sector, with total investments expected to exceed $600 million by 2031. The average project length is five years, and about 10% of projects have been completed to date. The full impacts of these investments will become apparent only after the projects are fully realised, as the report highlights that the current assessment focuses on potential future benefits rather than immediate results. The dairy sector is anticipated to gain the largest share of benefits at around 35%, reflecting the emphasis on environmental improvements such as fertiliser efficiency and greenhouse gas reduction. Sheep and beef farming are expected to receive 21% of the benefits, driven by investments in solutions to improve wool production profitability, while horticulture is set to gain 16%. Increasing productivity is the primary goal, accounting for 39% of the benefits, followed by reducing greenhouse gas emissions at 19%.    No concern for staffing during calf processing And it's business as usual for the country’s meat processors as they prepare for another busy season of processing non-replacement calves, with spring calving set to begin in July.  Richard McColl, Meat Industry Association manager of industrial operations and innovation, says that companies are actively engaging with their suppliers to secure commitments for the upcoming season, and he anticipates a season similar to last year in terms of numbers, capacity, and production. McColl says that staffing issues, which posed significant challenges early in the post-COVID period, have largely stabilised over the past 12 months.  Meat companies are also focused on improving their processes based on experiences from the past two seasons, aiming to enhance the collection process for farmers. Despite the potential for an increase in the number of calves needing processing, McColl sees no issues arising from this prospect.  In April, LIC and DairyNZ released data indicating that dairy farmers have achieved the highest six-week in-calf rate and the lowest not-in-calf rate on record.  The average six-week in-calf rate for the 2023-24 season stands at 69.3%, up from 66.6% last season, while the not-in-calf rate has decreased to 15%. McColl does not foresee any issues with increased numbers, indicating confidence in the industry’s capacity to handle the upcoming season effectively. See omnystudio.com/listener for privacy information.