Conrad Smith: Farming and sport share similar demands
The challenges of high-performance sport and farming are not as dissimilar as they may first appear.
State farmer Landcorp says it has a strategy to lift its profitability and return to shareholders.
Landcorp chief executive Steven Carden says it is increasingly shifting away from commodity supply to premium niche products.
"Essentially we want to capture the value in how we farm and what we produce and we're diversifying to make the best use of our capital, land and expertise," he told Rural News.
"This involves continually reshaping our business and investing in various parts of it, from current farms and operations through to new enterprises like the Spring Sheep milk joint venture.
"We regularly update our shareholding ministers on our strategy and plans."
His comments were in response to the Government saying the SOE will not get any new capital to spend on its farms — part of a more rigorous process for new investment.
Finance Minister Bill English told the DairyNZ Farmers Forum in Hamilton that Landcorp, a poor investment, was facing the same problem as other dairy farmers – low milk payout.
"It is dealing with a significant drop in earnings against a base of debt which will be a stretch to manage," English told 800 farmers.
"It's a low returning investment; we have a billion dollars tied up in that organisation and it pays taxpayers very little, in some years nothing, so it's a poor investment."
Landcorp is bracing for an $8-$12 million loss this year, largely reflecting recent downward revisions to forecast milk payments. Despite the loss the Government is committed to retaining Landcorp, part of its $270 billion balance sheet.
English says in the past the Government was under-equipped to understand the risks, but now has a "corporate treasurer" set of disciplines across the whole balance sheet.
"We now have a much more testing process for new investment, so Landcorp, for instance, will not get new capital.
"They wouldn't be able to put a proposal to meet our hurdle rate... there aren't too many SOEs that can; it's all getting tighter.
"From here on Landcorp will be managed in normal farming style — what you are used to."
A Chinese business leader says Chinese investors are unfairly viewed as potential security risks in New Zealand.
In the first of two articles focusing on electrification in New Zealand, Leo Argent talks with Mike Casey, operator of the 100% electric-operated Electric Cherries orchard and founder of advocacy group Rewiring Aotearoa.
A Foundation for Arable Research initiative which took a closer look at the efficiency of a key piece of machinery for arable farmers - their combine harvesters - has been recognised at the Primary Industry NZ Awards.
Prime Minister Christopher Luxon has reiterated New Zealand’s ‘China And’ policy, adding that it wasn’t about choosing one market over another but creating more options for exporters.
A long running trade dispute between New Zealand and Canada over dairy access has been resolved.
New Zealand Police is urging rural property owners to remain vigilant and ensure their property is secure.
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