Team effort behind new ryegrass cultivar to future-proof pastoral farming
It takes a team approach to produce a new cultivar of ryegrass, match-fit to meet the future challenges of pastoral farming.
Despite PGG Wrightson's half-year earnings being down on last year's record – the rural services company still posted its second-best result in nearly a decade.
Operating earnings were $30.93 million for the six months ended December 31 2015, down from $33.64m a year earlier. After-tax profit was $16.06m, compared to $19.7m for 2014.
PGG Wrightson (PGW) managing director Mark Dewdney says it's a very strong result in challenging trading conditions. Dewdney says low dairy prices and the threat of an El Nino drought had led to more conservative spending by the farmer customers.
Total revenues fell by 5% to $623m.
Gains in some divisions were offset by weaker trading in others. The retail business lifted Ebitda to $24.8m from $24.3m on slightly lower revenues. Horticulture and the performance of the Fruitfed business were particularly strong in the first half, Dewdney added
Livestock Ebitda was $2.6m, compared to $3.35m a year earlier – with the company blaming the decrease on no live cattle exports during the period. Domestically, cattle and sheep tallies were higher, but sheep prices were lower and dairy volumes were lower.
"The net effect was neutral, with earnings from domestic livestock overall in line with the prior period."
PGW says a wet spring in South America had hurt its seed and grain earnings where earnings fell to $11.7m from $13.5m. However, the New Zealand seed business was strong with farmer demand for forage and crop seeds – notably brassica and fodder beet for winter feed. Demand for summer feed such as chicory was also growing.
The company has stuck with its earlier guidance of full-year profit in the $61m to $67m range, but Dewdney warns that market conditions may push the final figure to the lower end of this range.
He says the sheep and dairy sector sentiment has deteriorated over the last three months, but confidence remained strong in horticulture. The second half of the year was typically the biggest for livestock trade.
However, Dewdney says higher processing figures in the first half – because of hot, dry conditions in many areas and the expectations for an El Nino weather pattern – are likely to produce lower trading volumes this financial year.
Newly elected Federated Farmers meat and wool group chair Richard Dawkins says he will continue the great work done his predecessor Toby Williams.
Hosted by ginger dynamo Te Radar, the Fieldays Innovation Award Winners Event put the spotlight on the agricultural industry's most promising ideas.
According to DairyNZ's latest Econ Tracker update, there has been a rise in the forecast breakeven milk price for the 2025/26 season.
Despite the rain and a liberal coating of mud, engines roared, and the 50th Fieldays Tractor Pull Competition drew crowds of spectators across the four days of the annual event.
Nationwide rural wellbeing programme, Farmstrong recently celebrated its tenth birthday at Fieldays with an event attended by ambassador Sam Whitelock, Farmers Mutual Group (FMG), Farmstrong partners, and government Ministers.
Six industry organisations, including DairyNZ and the Dairy Companies Association (DCANZ) have signed an agreement with the Ministry for Primary Industries (MPI) to prepare the country for a potential foot and mouth outbreak.
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