NEWS Last year’s drought has become just a bad memory for some. PAGE 9
AGRIBUSINESS Dutch couple persevere with their horse ploughing dreams. PAGE 21
RURALNEWS
2014 OUTLOOK Ag leaders give positive forecasts for the year ahead.
PAGES 6-7
TO ALL FARMERS, FOR ALL FARMERS
JANUARY 21, 2014: ISSUE 553
www.ruralnews.co.nz
Meat on election agenda? P E TE R BU R K E peterb@ruralnews.co.nz
FORGET ALL the machinations around the political aspirations of Kim Dot Com, Colin Craig and John Banks; if the Meat Industry Excellence (MIE) group gets its way red meat sector reform will be the focus of this year’s general election. MIE chair John McCarthy says his
lobby group plans to make the red meat sector an election issue. “The industry is a key to the national interest and New Zealand is becoming too reliant on dairy,” he told Rural News. Time is running out for the red meat industry, he says. A 7% conversion rate to dairying in Southland and similar rates in Otago and Canterbury are being talked about. Dams in the Wairarapa and Hawke’s Bay could see a 12%
conversion rate. “We are becoming a one horse town,” McCarthy says. “We will approach Government to help save the red meat industry because we can’t have all our eggs in one basket. There is real risk that we are rushing headlong into this trading relationship with China and we rushing into having our economy dominated by dairying. “It’s Economics 101, it’s not going
to work. As a nation we have got the issue of the environmental footprint associated with dairying which doesn’t happen with sheep and beef.” McCarthy says the state of the red meat industry is getting bleaker. Habitual losses are made by 24% of farmers in the sector, propped up equity increases. These increases in land value are driven by dairy sector profitability. “A further 27% of sheep and beef farmers are in a precarious position, commonly making small profits and losses but lacking the financial ability to maintain a level of inputs to maximise and grow their business,” he says. “Of the remainder, take 25% that TO PAGE 3
BACK UP THE DAIRY BUS MASSEY UNIVERSITY ecologist, Dr Mike Joy says the brakes should be put on dairy industry. He told Rural News the industry has to accept it can’t keep expanding and intensifying as New Zealand’s freshwater bodies have already exceeded their assimilation levels. Joy says the Clean Streams Accord and people doing great work on farms are negated if at the same time the industry is expanding. There has been no net gain and the situation has deteriorated– despite the efforts by individuals. See pages 10-11 to read more about the man that has almost single-handedly taken on those seeking to expand the dairy industry.
Reputation curdled SUD ESH K I SSUN sudeshk@ruralnews.co.nz
FONTERRA’S HANDLING of the latest food safety scare will determine the impact on the co-op’s reputation. That’s the view of University of Auckland branding expert Dr Mike Lee. While a product recall is never a good look for any company, the cause of the contamination and how the recall is handled is important, he says. “Depending on the results of the inquiry and whether or not Fonterra was responsible directly for the E.coli and whether or not they are able to control/improve the problem will determine the impact on their reputation,” Lee told Rural News. The co-op’s brands business recalled 8,700 bottles of fresh cream last week after quality tests showed there may be the presence of E.coli in several batches. Lee says Fonterra did the right thing to “err on the side of caution” and recall four batches of Anchor and Pams cream. However, the recall will be another blot on Fonterra’s food safety credentials. “A company’s reputation is built up by a combination of everything they do, so this will certainly add to the palette,” he says. “I don’t think anyone involved in the industry has forgotten about the false botulism scare, and an
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