Gene Technology Bill clears its first hurdle in parliament, prices dip at the final Global Dairy trade Auction of the year, and Alliance Group signals return to profitability.

Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather!

Gene Technology Bill clears its first hurdle in parliament

New Zealand is one step closer to modernizing its approach to gene technology, with the Gene Technology Bill passing its first parliamentary reading.

The legislation will end New Zealand's near 30-year prohibition on gene technology research outside laboratory settings, marking a significant update to scientific research regulations.

Science, Innovation and Technology Minister Judith Collins outlined clear potential benefits for the agricultural sector, highlighting opportunities for farmers through developments like disease-resistant and drought-tolerant grasses. These technological advances could provide tools to help meet agricultural emissions targets and potentially increase productivity across New Zealand's primary industries.

The bill, structured similarly to Australia's Gene Technology Act 2000, will establish a dedicated regulator to manage potential risks to human health and environmental safety. The Environmental Protection Authority will oversee this new regulatory regime, with full operational status expected by the end of 2025.

Current restrictive rules have made research outside laboratory environments challenging, effectively limiting New Zealand's scientific and agricultural innovation. The new legislation aims to align the country's approach with global best practices in gene technology research.

A comprehensive six-month select committee process will soon commence, providing New Zealanders an opportunity to contribute input and feedback on the proposed legislation.

The regulatory framework will provide a structured approach to gene technology research, balancing scientific innovation with rigorous safety considerations for human health and environmental protection.

For a deeper dive into the changes to gene editing, listen to episodes 47 and 48 of the Dairy Exporter Podcast. Links are in this episode's description.

https://omny.fm/shows/the-dairy-exporter-podcast/episode-47-gene-editing-cows-for-disease-resistanc

https://omny.fm/shows/the-dairy-exporter-podcast/episode-48-how-will-genetic-technologies-be-regula

Immigration changes offer relief for farming workforce

New immigration regulations announced by Immigration Minister Erica Stanford promise significant relief for New Zealand's agricultural sector, with Federated Farmers welcoming changes designed to address critical staffing shortages.

The new Accredited Employer Work Visa (AEWV) requirements, set to take effect in March next year, introduce multiple provisions directly addressing farmers' workforce challenges. Key modifications include reducing minimum experience requirements for migrant workers and extending visa durations to provide greater stability for agricultural employers.

Federated Farmers immigration spokesperson Richard McIntyre emphasized the transformative potential of these changes. The reforms directly respond to years of intense pressure on farmers struggling to recruit and retain essential staff during critical agricultural periods like calving and lambing seasons.

Notable changes include extending visa durations for lower-skilled roles from two to three years, eliminating the need for multiple visa applications. This modification will potentially save farmers thousands of dollars in administrative costs and reduce uncertainty for both employers and employees.

The revised regulations also adjust income thresholds and introduce more flexible workforce recruitment mechanisms. Employers will now use a declaration-based model when advertising roles, streamlining the process of demonstrating efforts to recruit local workers.

Minister Stanford highlighted the government's commitment to creating a more responsive immigration system. The changes aim to balance economic needs with responsible migration management, providing targeted solutions for sectors experiencing acute workforce challenges.

Looking ahead, the government plans to implement two new seasonal visas in late 2025, further refining immigration approaches for primary industries. Immigration New Zealand will also redesign the Job Check process to expedite approvals for low-risk employers.

Prices dip at the final Global Dairy trade Auction of the year

The final Global Dairy Trade auction of 2024 has closed with a modest 2.8% overall price decrease, marking a shift after several months of positive momentum.

Whole milk powder, critically important for Fonterra's farmgate milk price, experienced a 2.9% drop. Skim milk powder saw an identical decline, while other key products showed varied movements. Cheddar edged down marginally by 0.2%, butter slipped 0.6%, and anhydrous milk fat recorded the largest decrease at 3.8%.

Notably, lactose bucked the downward trend with a slight 0.5% increase. Mozzarella prices dropped 1.8%, and butter milk powder was not available in this auction.

Despite the current price softening, Fonterra remains optimistic. The cooperative recently updated its farmgate milk price forecast for the 2024/25 season to between $9.50 and $10.50 per kilogram of milk solids, with a midpoint of $10.00.

This represents a significant improvement from the final farmgate milk price of $7.83 per kilogram of milk solids for the 2023-2024 season. The forecast follows an earlier projection in November that ranged from $9.00 to $10.00 per kilogram of milk solids.

This latest result breaks a streak of price increases that saw gains of 4.8% in early November, a 1.9% climb in mid-November, and a 1.2% lift at the start of December. 

The next Global Dairy Trade auction is scheduled for January 7.

Alliance Group signals return to profitability

Meat processor Alliance Group is signaling a strong comeback after two challenging years, with leadership promising a return to profitability and outlining significant operational changes.

At the company's annual meeting in Gore yesterday, chair Mark Wynne detailed a comprehensive reset designed to strengthen the cooperative's position in a volatile global red meat market. The strategy includes reducing processing capacity, cutting costs, and investing in cutting-edge technology like an Enterprise Resource Planning system.

Chief Executive Willie Wiese highlighted key developments that could benefit farmer-shareholders. The company has rolled out an advanced Meat Eating Quality programme using artificial intelligence to provide real-time insights into livestock quality. This technology helps farmers make more informed decisions about their herds while ensuring high-quality meat production.

Market diversification has been another critical focus. Alliance Group has been reducing its reliance on China while maintaining strong market partnerships. Wiese noted encouraging trends in global meat markets, with global beef showing solid price growth driven by drought conditions in the United States. Lamb markets, the company's largest product category, appear to be recovering after a prolonged downturn.

The cooperative has also paused processing livestock deductions and new share issuances, with the board committed to remaining 100% farmer-owned. An external capital raise process is underway, led by Craigs Investment Partners, with initial signals showing promising offshore and onshore interest.

Two new directors, Matt Iremonger and Gray Baldwin, were elected to the board, bringing fresh perspectives to the organization's leadership.

Careful monitoring continues after egg farm virus discovery

Extensive testing continues this week to confirm containment of a highly pathogenic avian influenza (HPAI) outbreak at a single Otago egg farm, with Ministry for Primary Industries (MPI) officials expressing cautious optimism about limiting the virus's spread.

The H7N6 strain was initially discovered at Mainland Poultry's Hillgrove farm near Moeraki in late November, triggering an immediate and comprehensive biosecurity response. The farm's entire flock of 200,000 birds was culled across four sheds, with thorough cleaning and disinfection processes now underway.

MPI's chief veterinary officer Dr. Mary van Andel reported ongoing surveillance and testing, noting no signs of the virus beyond the original site. Egg Producers' Federation executive director Michael Brooks described the situation as potentially a "one-off incident," highlighting negative test results from connected farms.

The outbreak arrives against a backdrop of heightened industry preparedness for the potentially more severe H5N1 strain circulating globally. Brooks acknowledged the incident as a critical learning opportunity for the sector, potentially improving future response strategies.