Rural Contractors Urged to Renegotiate Contracts as Fuel Prices Surge
Rural contractors are getting guidance on how to deal with recent rising fuel prices.
Rural contractors will be able to play a role in the revamped agricultural plastic recycling scheme with new regulations due for Cabinet signoff before this year’s election.
Agrecovery chief executive Tony Wilson told February’s Rural Contractors NZ board meeting that there would be opportunities for its members to collect plastic waste from farmers, either through charging or as an add-on to their service.
“The plan is that the market will build competition.”
Currently farmers can buy a collection bin from commercial company Plasback and then pay $50 per liner bag for its removal of what is principally sileage wrap; farmers can also dispose of the bags themselves at approved sites for $30.
Last December, the Government announced the industry-led scheme which will bring the Agrecovery and Plasback programmes together into a single national system for all users of agrichemicals and farm plastics. Agrecovery, which is a not for profit, will manage the scheme.
This will cover key farm plastics including agrichemical containers and drums, bale wrap and silage film, small bags used for agricultural products and bulk woven polypropylene bags.
Wilson says the new regulations now being drafted propose to provide free plastic disposal for farmers at up to 120 sites around the country. Some would be permanent but others will be ‘event’ locations where farmers could take their plastics for a few weeks to a site run by an organisation such as a local Lions club.
The new scheme will be funded by a fee paid by producers on four waste streams – bale wrap and silage sheets, small plastic bags, large woven polypropylene bags and agrichemical containers.
No Rogue Players
Part of Agrecovery’s new responsibilities will be ensuring that there are no rogue players selling wrap without paying the fee.
Currently about 12,000 tonne of sileage wrap alone enters the NZ market. The fee will be about 50c for a bale of film or wrap.
Agrecovery chief executive Tony Wilson says currently Agrecovery and Plasback costs total around $8m a year which sees about half of annual agricultural plastic use recycled. The new scheme is estimated to bring in $12m with an aim over time of recycling 100% of plastic. The European Union is currently recycling 85% of its sileage wrap.
Most of the extra costs would involve the leasing of five or six trucks to move plastic from the 120 collection sites to two processing centres in Matamata and Christchurch.
These sites will wash, shred and bale plastic for offshore recycling. Only properly accredited and audited recyclers will be used to ensure no child labour exploitation and that environmental standards are maintained.
Wilson says Agrecovery and Plasback have worked on recycling plastic for 20 years and the new regulations would provide the framework to develop a fully integrated rural recycling scheme.
He says the focus remains on making life easier on farm. He agreed with questions from the RCNZ board that some farmers didn’t want to currently pay for plastic collection, and burning it was still allowed by some regional councils.
RCNZ CEO Andrew Olsen said councils had a role to play, as did the Government, in ending such practices, and his organisation wanted to help ensure plastic, including that provided to farmers by its members, could be recycled.
Āta Regenerative is bringing international expertise to New Zealand to help farmers respond to growing soil and water challenges, as environmental monitoring identifies declining ecosystem function and reduced water-holding capacity across farms.
Yili's New Zealand businesses have reported record profits following a major organisational and strategic transformation.
Owners and lessees of certain Hino Trucks New Zealand diesel vehicles have just 10 days remaining to register or opt out of a proposed $10.9 million class action settlement.
Silver Fern Farms has successfully produced and delivered 90 tonnes of premium chilled New Zealand lamb and beef to the United Arab Emirates via airfreight.
For the first three months of 2026, new tractor deliveries saw an increase over the previous two months, resulting in year-to-date deliveries climbing to 649 units - around 5% ahead of the same period in 2025.
QU Dongyu, director-general of the Food and Agriculture Organization of the United Nations (FAO), has issued a warning saying that global fertiliser scarcity caused by disruptions in the Strait of Hormuz will lead to lower yields and tightening food supplies into 2027.

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