Fonterra to cut up to 100 jobs in Hamilton, Pest to Plate: Hawke’s Bay tackle feral deer with butchery classes, and AI-powered weed zapper impresses agriculture industry.

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!

Fonterra to cut up to 100 jobs in Hamilton

The country's largest dairy co-operative, Fonterra, is set to eliminate up to 100 jobs at its Hamilton headquarters as part of a cost-saving initiative. The move, which includes outsourcing work overseas, has raised concerns among employees and farmers alike.

The cuts, described as "brutal" by affected staff, will primarily impact the finance and accounting team. Many long-serving employees are among those affected. According to anonymous sources, the jobs will be outsourced to Accenture, a global accounting firm, in India.

Incoming Chief Financial Officer Andrew Murray stated that Fonterra has been reviewing its operating model to enhance returns for farmer shareholders. The changes include "co-sourcing" work with an existing partner in Bangalore and Manila.

The announcement has sparked mixed reactions within the farming community. Matthew Zonderop, Waikato sharemilker and provincial dairy chair for Federated Farmers, expressed strong opposition to outsourcing jobs overseas, emphasising the importance of keeping money within New Zealand.

John Stevenson, chair of the Fonterra co-operative council, acknowledged the difficult balance between making returns for farmers and valuing employees. He noted that farmers have challenged Fonterra to increase efficiency and deliver higher returns on invested capital.

The proposed changes are part of what Fonterra calls the "future of finance" programme, which is expected to bring widespread changes across the company's financial operations globally. The current focus is on the Hamilton office, but employees suggest this is just the beginning of a larger restructuring effort.

Fonterra has stated that they will inform employees about the changes first as they go through the consultation process. Final decisions on individual redundancies are expected to be made on August 12.

AgResearch scientist pitches groundbreaking facial eczema treatment

A young AgResearch scientist has gained international recognition for her work on a novel treatment for facial eczema, a disease that costs New Zealand's animal production sector $330 million annually.

Dr Tanushree Gupta, the sole New Zealander to win an award in the Australasia-based AgriFutures growAG 2024 catalyst program, has developed an antifungal product targeting facial eczema-causing fungal spores.

Facial eczema continues to affect many farms in the upper North Island and is spreading southward due to climate change. The disease is challenging to manage, with its presence heavily dependent on specific climatic conditions.

Current treatments for facial eczema are either highly toxic chemical sprays that damage the soil environment or zinc dosing for livestock, which is itself a toxin requiring careful administration.

Dr Gupta's innovative approach involves a naturally occurring, non-toxic, and sustainable solution. While details remain confidential, she confirms the treatment comes from a previously unstudied but naturally available source that is already recognized as safe and part of the ecosystem.

Dr Gupta envisions the product being developed into a spray that can be applied directly to paddocks or through irrigation systems, moving away from treating animals in response to the fungi's presence.

Dr Gupta's discovery stems from her curiosity about potential solutions in everyday environments, combined with her background in dairy hygiene and microbiology. Her work has included advanced diagnostics using CRISPR-based techniques to detect bacteria on farms and in food.

The award has secured Dr Gupta a place to pitch her research to potential investors, bringing her closer to providing farmers with a commercial, viable solution to this long-standing agricultural challenge.

Kiwifruit growers navigate rising costs amid record harvest

New Zealand's kiwifruit industry is experiencing a mix of challenges and achievements, with growers reporting financial strain despite a record harvest. The sector produced more than 197 million trays this season, yet many orchardists are grappling with increasing costs and delayed returns.

Rob Thode, a Pāpāmoa kiwifruit grower, highlighted the industry's cost inflation. He notes that labour rates have more than doubled in the last decade, rising from $16.50 to $35 an hour. Meanwhile, returns for Hayward green kiwifruit remain stagnant at around $8 per tray, the same as ten years ago.

The payment structure adds to growers' financial challenges. Earnings are often distributed over extended periods, with some orchardists waiting up to 14 months for full payment. This delayed cash flow can create difficulties in covering immediate expenses.

On-orchard costs vary widely, ranging from $50,000 to $110,000 per hectare for gold kiwifruit. Additional charges for packing and cool storage can add another $42,000 per hectare, based on average yields.

Mark Mayston, chairman of New Zealand Kiwifruit Growers Inc, acknowledges that many growers have been suffering financially. He emphasises the need for strong returns after two seasons of poor yields and escalating costs. While initial forecasts from this year's bumper crop look promising, the final outcome remains uncertain.

Despite these hurdles, there are positive indicators. Zespri reports that consumer demand remains strong, and pricing has been favourable. Green kiwifruit returns have seen a substantial increase, rising from $5.78 per tray in the 2022/23 season to $9.55 in 2023/24.

Pest to Plate: Hawke’s Bay tackle feral deer with butchery classes

An innovative approach to managing feral deer in Hawke's Bay has gained unexpected popularity. The Between Two Rivers water catchment group is running butchery classes to teach farmers how to make the most of culled deer meat.

These workshops, held between the Ngaruroro and Tūtaekurī rivers, are addressing a growing environmental concern. Feral deer, which damage native forests and compete with livestock for pasture, have no natural predators in New Zealand.

The group has engaged contractors to cull deer herds near two trial farms close to the Kaweka Forest Park. The retrieved carcasses are then used in butchery workshops, teaching farmers how to process the meat.

Mark Liefting of Parkvale Butchery in Hastings hosted the first workshop, with another session already fully booked for next month. The overwhelming interest has resulted in a lengthy waitlist, highlighting the need for such a program.

The initiative, funded by the Ministry for Primary Industries, not only addresses an environmental issue but also provides valuable skills and resources to the community. Its success may lead to the continuation and expansion of the service in the future.

AI-powered weed zapper impresses agriculture industry

A groundbreaking technology using Artificial Intelligence to identify and eliminate weeds with lasers has caught the eyes of industry leaders following successful trials.

The Map and Zap® system, developed by AgResearch scientists and engineers under Dr Kioumars Ghamkhar's leadership, recently underwent a demonstration at a Canterbury vineyard. This innovative approach aims to reduce chemical use in agriculture over time, rather than entirely replacing it.

The system's AI can differentiate between weed species, targeting only unwanted plants. Once identified, it guides a laser to eliminate the weed. Designed for versatility, the unit can be attached to tractors or robots, making it suitable for various agricultural settings including vineyards, orchards, vegetable fields, and pastures.

Heath Stafford, a wine industry business adviser who witnessed the demonstration, emphasised the need for an integrated approach to weed management. He sees technologies like this as crucial in filling gaps in current methods.

Eitan Dan, Australasia's Managing Director for agritech firm CropX, praised the system as an example of precision agriculture. He sees its potential for addressing specific issues without causing collateral damage to surrounding areas.

AgResearch is now seeking investors to bring this technology to both domestic and international markets.