Winston's crusade
OPINION: A short-term sugar hit. That's what NZ First leader Winston Peters is calling the proposed sale of Fonterra's consumer and associated businesses.
Tararua District Council is pledging to keep any rate rise in the coming year to below 2% as the downturn in the dairy industry hits.
Mayor Roly Ellis says dairying is a major component of the local economy and he's seeing the start of problems arising from the dairy downturn.
Tararua District includes four major rural towns: Dannevirke in the north; and Woodville, Pahiatua and Eketahuna in the south. Fonterra has a big factory at Pahiatua.
The district also has other farming-related businesses in its towns, including agricultural machinery production.
Ellis says the region has about 350 dairy farms, and their cashflow -- and that of the businesses that service them – is a big chunk of the money that circulates in Tararua. But the downturn has changed this.
"Dairy farmers aren't spending huge amounts in shops or the agricultural service businesses. I walk the towns about every three months to find out what's going on and talk to the shopkeepers and agri service businesses," he told Rural News.
"I have been a farmer myself and was a rural drought coordinator here in 2007-2010. I am a trustee to a big farming enterprise and so keep my ear to the ground."
Ellis says he has not so far heard of any dairy farmers forced to sell up, but he and the council are keeping a close watch on what's happening, hence the cap on rates.
What worries Ellis most is the predicament facing sharemilkers, especially lower order ones. They are vulnerable and subject to some of the problems now starting to show up.
"What has happened all over the world -- I have seen this in Britain where I farmed -- is that you go through highs and lows, and during the highs everyone gets wonderful ideas.
"In fact, the dairy farmers haven't had a check like this for years and years and they have suddenly realised they now have to become more efficient. Efficiencies are going to come in, I am absolutely sure of that. People who have been spending liberally until now are suddenly facing this check in what they can do."
Ellis says this has happened in the sheep and beef sector and farmers now better understand where the dollar has to be spent. He's been through this and admits it hurts like hell, but farmers go on to look at different ways of running their businesses.
Ellis says his council is monitoring the dairy downturn.
A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.
Fewer bobby calves are heading to the works this season, as more dairy farmers recognise the value of rearing calves for beef.
The key to a dairy system that generates high profit with a low emissions intensity is using low footprint feed, says Fonterra program manager on-farm excellence, Louise Cook.
Rural retailer Farmlands has reported a return to profitability, something the co-operative says shows clear progress in the second year of its five-year strategy.
According to a new report, the Safer Rides initiative, which offered farmers heavily discounted crush protection devices (CPDs) for quad bikes, has made a significant impact in raising awareness and action around farm vehicle safety.
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