Government’s methane review panel begins critical work on agricultural emissions, Synlait faces fresh uncertainty as it withdraws 2024 earnings guidance, and Zespri trials expert crowned 2024 Bay of Plenty Young Grower.

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Government’s methane review panel begins critical work on agricultural emissions

The secretariat of the Government's new methane science review panel has emphasised the importance of agricultural industry support in developing long-term solutions for agricultural emissions.

Chaired by Nicola Shadbolt, a farmer, academic, and former Fonterra director, the panel has begun its work, which Shadbolt describes as "critical and long overdue."

The secretariat acknowledges concerns within the farming sector about the fairness and appropriateness of the current 2050 methane target, set in 2019. These concerns include potential higher production costs and the risk of production moving offshore.

The panel will review the latest methane science to provide an independent, up-to-date evidence base about methane's warming impact. This work will complement the Climate Change Commission's review of 2030 targets and inform the Government's response to the Commission's advice.

Agriculture Minister Todd McClay states that the Government is committed to meeting climate change obligations without compromising New Zealand farms. He emphasises the need for fair and sustainable targets, noting that New Zealand farmers are among the world's most carbon-efficient food producers.

The five-member advisory panel includes experts from various universities and research institutions, bringing extensive domestic and international experience on climate change and biogenic methane.

Current legislated methane targets require a 10% reduction by 2030 and a 24 to 47% reduction by 2050, targets that have been opposed by farmer groups like Federated Farmers since their inception.

And the CountryWide Podcast looks deeper into this issue. Episode 28: How to make or break our future with emissions, find it where you get your podcasts.

Synlait faces fresh uncertainty as it withdraws 2024 earnings guidance

Canterbury-based Synlait is grappling with new challenges, just days after shareholders approved a crucial loan to keep the company afloat. The company has now withdrawn its earnings guidance for the 2024 financial year, citing unexpected complications.

Synlait attributes this decision to unforeseen timing differences between July and August for manufacturing and shipping, which have impacted its 2024 performance. Additionally, the company is facing higher costs related to its ongoing strategic review and deleveraging plan, due to extended timelines for these processes.

As a result, Synlait now expects its final underlying earnings to fall below the previously announced guidance, which was already at the lower end of a $45 million to $60 million range. This earlier guidance had excluded a non-cash adjustment of $17 million.

This development comes on the heels of a significant shareholder vote last week, where approval was granted for a $130 million loan from major shareholder Bright Dairy. This loan was critical in meeting a deadline to repay Synlait's debt, averting the possibility of voluntary administration.

Despite these setbacks, Synlait's board remains committed to resetting the company's balance sheet. Their goal is to return the company to a position where it can capitalise on growth potential in its core advanced nutrition and foodservice businesses. The first step in this process was completed Monday, with a $130 million payment made to Synlait's banks.

Synlait has assured stakeholders that it is still on track to meet minimum underlying earnings required for bank covenant purposes. However, this latest development underscores the ongoing challenges facing the company as it attempts to navigate financial difficulties and restructure its operations.

Government proposes cap on pine forests in Emissions Trading Scheme

The Coalition Government has unveiled plans to limit the amount of pine trees allowed in the Emissions Trading Scheme (ETS), aiming to protect farmland from excessive conversion to carbon forests. Climate Change Minister Simon Watts announced this policy as part of a comprehensive draft Emissions Reduction Plan.

The plan outlines a strategy to achieve the second emissions budget through a combination of gross emission reductions and net offsets, including forestry. However, the government recognizes the need to manage unintended consequences of the current system.

Planting permanent pine forests on inexpensive rural land has been a cost-effective method for reducing carbon emissions in New Zealand, often at a quarter of the cost of other reduction methods available to businesses. This has led to a significant increase in pine forests and ETS units.

While acknowledging exotic forestry as essential for achieving climate targets, the government proposes new rules to address concerns. The plan aims to introduce limits on new forests entering the ETS on productive farmland, without affecting existing forests already in the scheme.

The document also highlights potential environmental risks associated with extensive pine plantations and suggests additional regulations may be necessary. The government has committed to maintaining the validity of ETS units without expiration dates and avoiding differential pricing for forestry-derived units, addressing previous uncertainties that had impacted carbon market prices.

A review of the free allocation of units to emissions-intensive and trade-exposed firms is underway, as the current scheme hasn't been updated since 2010. Meanwhile, ETS unit prices have been rising, reaching almost $54 recently.

As the government moves forward with these proposals, they aim to balance climate objectives with the protection of productive farmland and the stability of the carbon market.

Rural GPs reject Health NZ's funding offer as 'disrespectful' and inadequate

Rural general practitioners in New Zealand have joined their urban counterparts in rejecting Health NZ's primary healthcare funding offer, describing it as "disrespectful" and insufficient. Rural Health Network chief executive Grant Davidson has criticised the proposed 4% increase in baseline funding, noting it falls short of Health NZ's own independent study recommendation of a 5.58% annual increase.

The funding gap is expected to be filled by practices raising patient co-payments, a move that Davidson warns will further burden rural residents already struggling with high living costs and healthcare access challenges. General practice owners estimate they need an increase of over 14% to ensure long-term financial viability.

Davidson highlighted that the offer disproportionately affects rural areas, where residents face healthcare professional shortages, greater distances to healthcare facilities, and difficulties with transportation and time off work for appointments. The proposal also fails to increase payments for managing patients with complex health needs or for regions with high Māori populations.

The funding offer appears to contradict the Government Policy Statement recently released by Health Minister Shane Reti and Mental Health Minister Matt Doocey. This statement emphasised improving health outcomes for groups with the highest needs, including rural communities, and focused on delivering health systems close to homes and retaining healthcare workers in geographically isolated areas.

Davidson argues that Health NZ's funding offer fails to fulfil the requirements set out in both the Government Policy Statement and the Pae Ora Healthy Future Act, which placed greater emphasis on general practice. He describes the offer as a "complete fail" on the part of Health NZ and its board in implementing these directives.

This situation underscores the ongoing challenges in funding and delivering adequate healthcare services to rural communities in New Zealand, highlighting the disconnect between policy objectives and funding realities.

Zespri trials expert crowned 2024 Bay of Plenty Young Grower

The Bay of Plenty horticulture industry has celebrated its rising talent as Lilah Rosenfeldt claimed the title of 2024 Young Grower. The 26-year-old trials specialist from Zespri International received the award at a gala dinner in Mount Maunganui, marking a high point in her career.

The event, now in its 17th year, drew attendance from key industry figures and local officials, including Associate Minister of Agriculture Nicola Grigg, who presented the award.

The competition challenged eight contestants with nine tasks, testing both practical and theoretical knowledge. 

Jack Canham secured the runner-up position, dominating in four of the ten task categories. Levi Horton rounded out the top three. 

Rosenfeldt's victory earned her a three-month car lease, a cash prize, and a spot in the National Young Grower of the Year finals this October.