Early Bird I Wednesday September 4th 2024

Farmers get breathing room as the government reconsiders water rules, multi-million dollar farm debt leads to Waitonui Group liquidation, and NZ Young Farmers and Contiki team up to celebrate rural volunteers. 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! Farmers get breathing room as the government reconsiders water rules The government has called a temporary halt to the freshwater farm plan rollout, a move likely to bring relief to many in the agricultural community. This decision addresses widespread concerns about the current system's cost and practicality for everyday farm operations. Associate Environment Minister Andrew Hoggard outlined the administration's commitment to enhancing the cost-effectiveness and workability of these plans for farmers. While acknowledging the importance of managing freshwater risks, Hoggard made clear that the existing approach requires significant improvement. This pause allows time for the government to consider vital changes to the freshwater farm plan system. To enable this delay, the administration will introduce minor amendments to the Resource Management Act. Once these changes take effect, farmers can take a breath, knowing they won't need to rush to get their plans certified. Hoggard offered reassurance to the farming community that their ongoing environmental efforts won't go to waste. The government aims to recognize the good work many farmers are already doing, encouraging continued progress while changes are under consideration. It's worth noting that several regions have already begun implementing freshwater farm plans in certain areas, including Waikato, Southland, the West Coast, Otago, and Manawatū-Whanganui.  Agriculture Minister Todd McClay underscored the government's commitment to easing the regulatory load on farmers. He highlighted recent swift action to improve resource management laws, with the ultimate goal of reducing costs and allowing farmers to concentrate on sustainable, high-quality food production. Environment Minister Penny Simmonds emphasised the need for a robust system that maintains environmental standards while offering a credible alternative to local rules and consents where appropriate. This balance aims to ensure both councils and communities have confidence in the effectiveness of these plans. Multi-million dollar farm debt leads to Waitonui Group liquidation A multimillion dollar dairy farming operation that spanned the North and South Islands has collapsed. Waitonui Group, which managed extensive dairy enterprises, grazing around 5,000 cattle on more than 2,000 hectares, now faces debts exceeding $36 million to its bank alone. The High Court ordered the liquidation on August 12, following an application from Inland Revenue. This action came after the group had already entered receivership due to breaches of its banking facilities and a farm debt mediation agreement from October 2022. Financial challenges for Waitonui Group stemmed from several factors. These included significant farm cost inflation and a lack of investment in farm infrastructure, which negatively impacted productivity. A looming $7 million balloon payment due in May added to the mounting pressure. The collapse has led to the sale of at least two large farm holdings. The 550-hectare Burnside Dairy Farm and the 598-hectare Enfield farm, both located in North Otago, have changed hands in recent months. The receivers have been working with farm management staff and contract milkers to keep the farms operational. This aims to maintain the value of the assets and ensure the welfare of the livestock. NZ Merino looks to Asia for growth after tough financial year NZ Merino Company has weathered a challenging year, recording a $3.2 million loss. The Christchurch-based wool marketer saw a decrease in total bales sold, with fine wool taking the hardest hit. Despite these difficulties, the company managed to slightly increase its strong wool sales, demonstrating adaptability in a tough market. CEO Angus Street likens the current market situation to a car suddenly braking on a highway, illustrating the abrupt nature of the downturn. This analogy resonates with many in the farming community who have experienced the rapid shift in demand. While the overall picture may seem gloomy, there are glimmers of hope on the horizon. NZ Merino has unveiled a new strategy called EpicFibre, aimed at reclaiming its position as the world's leading wool supplier. This move signals a return to core values and a renewed focus on long-term stability. The company sees promising growth in Asian markets, particularly Japan and China. These emerging opportunities could offer a welcome reprieve for our wool growers who have been grappling with challenging conditions. However, hurdles remain in European and luxury markets, where consumer behaviour and price sensitivity continue to create obstacles. Despite this, green shoots of demand are emerging in active outdoor, athleisure, and furnishing segments. NZ Merino is actively working to increase volumes in these markets, collaborating with both existing and new customers. This proactive approach aims to create more avenues for our farmers' high-quality wool products.  While the company won't be paying a dividend this year, its improved cash flow has allowed for some debt reduction.  And for more on the struggles and challenges ahead for Merino wool, check out The Country-Wide Podcast Episode 33. More details in the description below. https://country-wide.co.nz/episode-33-how-will-merino-survive-the-cost-of-living-crisis/ NZ Young Farmers and Contiki team up to celebrate rural volunteers A new campaign is set to shine a light on the unsung heroes of our rural communities. NZ Young Farmers has partnered with travel company Contiki to launch the Contiki Local Legend campaign, celebrating young farmers who go above and beyond for their communities. Running throughout September, the initiative aims to recognize and reward the extraordinary contributions of Young Farmers members. The prize is a life-changing Contiki travel voucher worth $5,000. Lynda Coppersmith, Chief Executive of NZ Young Farmers says that members are the backbone of rural communities across the country, and this campaign offers a unique opportunity to showcase their invaluable contributions. The campaign is open to all NZ Young Farmers members, whether they're involved in their local Young Farmers Club or broader community efforts. These young leaders are driving positive change and fostering strong, vibrant rural communities across New Zealand. Nominations are now open and will close on September 30th. Anyone who knows a deserving Young Farmers member is encouraged to submit a nomination online, sharing the inspiring stories of these remarkable individuals. From the nominations, ten finalists will be shortlisted based on their contributions and community impact. Contiki will then select the ultimate winner, to be announced in October. Louise Levesque, General Manager of Marketing and Brands New Zealand for Contiki, expressed the company's honour in partnering with NZ Young Farmers. She emphasised Contiki's recognition of the vital role young leaders play in strengthening rural communities. To nominate a Contiki Local Legend or learn more about the campaign, visit the NZ Young Farmers website. Finalists revealed for 2024 Beef + Lamb New Zealand Awards Beef + Lamb New Zealand (B+LNZ) has announced the finalists for the 2024 Beef + Lamb New Zealand Awards, following an extensive judging process. The awards celebrate the people, innovation, technologies, and farming systems that contribute to New Zealand’s world-leading red meat industry. B+LNZ General Manager for Insights and Communication, Rowena Hume, expressed her satisfaction with both the number and the quality of entries across the eight categories. The high calibre of participants highlighted the depth of talent and forward-thinking approaches within the red meat sector. Despite the tough competition, all finalists are recognised for their positive contributions to the sheep, beef, and dairy beef industries. According to Hume, the judging panel, composed of farmers and industry professionals, had a challenging task, but the finalists’ work stands out as a testament to the strength and innovation within the sector. She noted that given the difficulties faced by farmers this year, it’s more important than ever to celebrate success within the industry. The winners will be revealed at the Awards dinner, scheduled for 10th of October at the Claudelands Event Centre in Hamilton. See omnystudio.com/listener for privacy information.