Government launches review of migrant worker visa scheme for dairy sector, scientists aim to unlock pasture quality data from space, and low dam levels raise concern for Tasman food producers.

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Government launches review of migrant worker visa scheme for dairy sector

The government has initiated a review of the Accredited Employer Work Visa scheme, aiming to ensure fair treatment for compliant dairy farmer employers. Immigration Minister Erica Stanford announced temporary adjustments to the job-check criteria for dairy farm workers ahead of the calving season.

These changes come in response to recent challenges, including high net migration, reduced demand for low-skilled workers, and increased migrant exploitation. The minister acknowledged that urgent earlier adjustments didn't account for regional variations, leading to difficulties for dairy farmers in recruiting or renewing visas for staff.

The review will examine removing the median wage threshold and consider streamlining assessments. It will also evaluate the potential for region and sector-specific settings. Stanford emphasised the need to balance the scheme so that law-abiding employers can hire migrant workers when genuine shortages exist.

For now, dairy cattle farm employers only need to advertise roles for 14 days instead of 21. This change applies to applications submitted before mid-July. Additionally, Immigration New Zealand is prioritising the processing of dairy worker applications until August 1st.

These temporary measures aim to shorten the recruitment process, allowing employers to hire and train workers in time for the critical calving season. The government is also collaborating with Federated Farmers to create a user-friendly guide for primary sector employers navigating the visa process.

Stanford highlighted the delicate balance needed in migrant worker regulations. While acknowledging the importance of allowing workers to gain necessary skills, she noted the ethical concerns of allowing temporary workers to become too settled without a clear path to residency.

The minister and officials are engaging with primary sector stakeholders to address concerns and refine the visa scheme to create a more effective and fair system for both employers and migrant workers in the dairy industry.

Scientists aim to unlock pasture quality data from space

New Zealand scientists are pushing the boundaries of satellite technology to help farmers make more informed decisions about their pastures. While satellite imaging currently allows farmers to assess pasture quantity, a new study aims to determine if it can also reveal nutritional quality.

Lincoln Agritech and AgResearch have joined forces on this project, funded by the Ministry of Business, Innovation and Employment's Space Agency. The six-month feasibility study seeks to develop methods for analysing pasture nutrition from space.

Armin Werner, group manager at Lincoln Agritech, explains that current satellite technology can only measure pasture volume, not its nutritional value. He notes that greener pastures don't necessarily mean higher quality feed for livestock.

The research team plans to combine existing plant models with satellite data to identify indicators of nutritional value. This approach differs from standard reflectance measurements, focusing instead on the internal processes of plants.

If successful, this technology could provide farmers with a practical tool to assess pasture quality across their entire farm without the need for laboratory testing. However, Werner cautions that the project is still in its early stages and will require further research to develop into a usable farm management tool.

This initiative is part of a broader program involving collaboration between New Zealand researchers and NASA. The Space Agency has funded twelve projects in total, each receiving up to $75,000 for a six-month study period.

While this particular project focuses on agriculture, other funded studies explore diverse areas such as forest mapping, atmospheric research, and climate risk assessment.

Spring Sheep gains retail access for infant formula in China

Spring Sheep Milk Company has achieved a significant milestone, receiving approval to sell its Chinese-label infant formula range in retail outlets across China. This authorization, granted by China's market regulator, allows the company to distribute its sheep milk-based infant formula, follow-on formula, and toddler milk drink in the world's largest infant formula market.

Nick Hammond, Chief Executive of Spring Sheep, describes this development as a game-changer for both the company and the sheep milking industry. The approval enables Spring Sheep to move beyond online sales and into high-end specialist baby product stores, targeting premium consumers in affluent regions.

The Chinese infant formula market, valued at US$17 billion, has stabilised following a period of declining birth rates. Spring Sheep aims to capitalise on growing demand for sheep and goat milk formulas, as well as premium infant nutrition products.

Partnering with Neptunus Foods, a subsidiary of a major Chinese pharmaceutical group, Spring Sheep plans to establish a strong retail presence while maintaining its online channels. The company has already built a significant online following, ranking second in its category behind the world's largest goat-milk company.

This breakthrough is expected to boost sales, enhance brand recognition, and strengthen Spring Sheep's market presence in China. It also represents a major opportunity for the company's farmer-suppliers in New Zealand, who have been anticipating this development for years.

The approval process, which took several years to complete, allows Spring Sheep to join other successful New Zealand dairy companies in tapping into the lucrative Chinese market. 

Low dam levels raise concern for Tasman food producers

Tasman District Council is cautioning food producers to ready themselves for potential water restrictions in the coming season, despite the recent lifting of constraints. The warning comes as smaller dams in the region remain at low levels.

Kim Drummond, Tasman's Dry Weather Task Force Convenor, reports that the Wai-iti Dam near Wakefield is only 18% full, while the Cobb Dam in Kahurangi National Park holds just over 10% capacity. There's a genuine risk the Wai-iti Dam may not fill by the start of the irrigation season in October.

Recent rainfall has eased immediate concerns about groundwater levels across the district. However, Drummond notes that winter rainfall may not suffice to sustain the region through next summer. He emphasises that certain areas might struggle to secure necessary water if drought conditions persist.

The 2023/24 season saw unprecedented water rationing measures in some areas, including Stage Four restrictions in the Moutere Eastern Groundwater Zone. While the Waimea Dam offers protection for the greater Richmond area, those relying on their own water supplies face the greatest challenge if another dry summer occurs.

Drummond advises rural users to consider carefully how they ration available water. He also notes that infrastructure suppliers, bound by resource consent conditions, must plan for reduced water availability.

LIC announces dividend despite challenging year for dairy sector

Livestock Improvement Corporation has unveiled its financial results for the 2023/24 year, declaring a dividend of 5.84 cents per share. This announcement comes amid challenging conditions for New Zealand's dairy industry.

Board Chairman Corrigan Sowman highlighted the difficulties faced by the co-operative, including a lower milk price environment, reduced activity affecting bull valuations, ongoing inflation, tax changes, and a semen quality issue that resulted in over $2 million in credits to farmers.

Despite these challenges, LIC managed to deliver a positive result to its farmer shareholders for the seventh consecutive year. The co-operative saw a 3.3% reduction in revenue, reflecting the broader impact of lower milk prices across New Zealand.

LIC maintained its commitment to research and development, increasing investment by 14.2% to $21.2 million. Key initiatives include a methane research trial and a heat tolerance research program, aimed at enhancing the industry's future resilience.

The co-operative projects underlying earnings for 2024/25 to range between $16-22 million, assuming no significant events or milk price changes occur.