Early Bird Rural News with Richard BaddileyEarly Bird Rural News with Richard Baddiley

Early Bird I Tuesday July 16th 2024

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Early Bird Rural News with Richard Baddiley

Are you short on time to digest all of of New Zealand's rural news? Well we are about to change your life!  Hosted by award-winning newsreader, Richa 
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Leading soil expert calls for shake-up in our fertiliser industry, EPA approves new weapon against invasive Chilean Needle Grass, and new campaign tackles rising Leptospirosis cases in rural New Zealand.

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!

Leading soil expert calls for shake-up in our fertiliser industry

Renowned soil fertility expert Dr Gordon Rajendram is calling for urgent changes in New Zealand's fertiliser industry. He argues that a lack of competition has led to high prices, limited innovation, and outdated products.

Dr Rajendram points out that the market is dominated by a few key players, resulting in restricted choices and consistently high costs for farmers. He notes that many companies are still selling products unchanged since the 1950s.

Current fertiliser prices remain above pre-COVID levels, with super phosphate at around $425 per tonne and urea at $795 per tonne. These high costs are pushing farmers to seek alternatives and question the environmental impact of traditional fertilisers.

Dr Rajendram draws a comparison with the dairy industry, where competition has driven advancements in product quality and efficiency. He argues that the fertiliser sector could benefit from a similar approach.

The soil specialist emphasises the urgent need for industry transformation to avoid becoming obsolete. He believes that increased competition would lead to better products, fairer prices, and ultimately strengthen New Zealand's vital agricultural sector.

As farmers grapple with economic and environmental challenges, Dr Rajendram's call for innovation in the fertiliser industry underscores the need for sustainable and cost-effective solutions in New Zealand agriculture.

EPA approves new weapon against invasive Chilean Needle Grass

The Environmental Protection Authority has given the green light to release a rust fungus as a biocontrol agent against Chilean needle grass, an aggressive weed threatening our agricultural sector.

This invasive plant, first identified in the 1920s, poses significant risks to livestock welfare and farm productivity. Its seeds can cause severe harm to animals, including blindness, while dense growth reduces pasture quality and grazing areas.

Dr. Chris Hill from the EPA explains that the approved fungus, Uromyces pencanus, specifically targets Chilean needle grass. It's expected to slow the weed's spread by attacking its foliage and reducing growth and seed production.

The decision follows a thorough evaluation process, including public consultation and engagement with mana whenua. Testing indicates minimal risk to native plants, animals, or human health.

Current management methods for Chilean needle grass, such as destocking or herbicide use, are often challenging and expensive for farmers. If left unchecked, the weed could potentially cost the sector up to $1.16 billion in lost production.

The grass is well-established in regions including Hawke's Bay, Marlborough, Auckland, and Canterbury. This new biocontrol approach offers hope for more effective and sustainable management of the weed.

This approval aligns with recent EPA decisions allowing biocontrol agents for other invasive plants, reflecting a growing trend towards ecological solutions in pest management.

As this innovative control method rolls out, it represents a significant step in protecting New Zealand's agricultural lands and livestock from this costly and harmful invasive species.

New campaign tackles rising Leptospirosis cases in rural New Zealand.

Rural Women New Zealand has partnered with Massey University to raise awareness and funds for combating leptospirosis, a serious health concern in rural areas. This initiative comes as cases of the disease are increasing, particularly in flood-affected regions.

RWNZ National President Gill Naylor says that New Zealand has one of the highest rates of leptospirosis among countries with temperate climates. The organisation has committed to making this their national project until June 2025, mobilising members across the country.

Professor Jackie Benschop from Massey University reports that last year saw 170 notified cases, predominantly in rural areas. However, she warns this number likely underrepresents the true scale of the problem, as many cases go undiagnosed due to similarities with other illnesses like COVID-19 or flu.

Benschop emphasises the importance of prevention through good farm management practices. These include vaccinating livestock, maintaining hygiene, wearing protective equipment, controlling effluent and waterways, and educating staff and visitors about the risks.

The campaign also stresses the need for early medical intervention. Rural residents feeling unwell are urged to seek help promptly, mentioning leptospirosis as a possible cause to their doctor and requesting testing.

Funds raised through this national project will support further research at Massey University, aiming to enhance understanding of leptospirosis in humans, animals, and the environment. The ultimate goal is to reduce the disease's impact on rural communities.

For more information on this important rural health initiative, visit the Rural Women New Zealand website.

Allied Farmers shareholders approve measures to protect tax losses

Allied Farmers' shareholders have overwhelmingly approved constitutional changes designed to maintain shareholder continuity and protect the company's significant tax losses. The vote saw 99.79% in favour, representing over 15 million shares.

These changes limit the issue, acquisition, and redemption of shares. The company must now refuse to register transfers that would exceed a 5% ownership threshold and automatically suspend voting rights for shares above this limit.

Exemptions exist for managing director Richard Milsom, owning 15.8%, and WAF Ltd with 19.99%, considered a friendly substantial shareholder. The move aims to preserve Allied Farmers' unused tax losses of approximately $186 million, which far exceed its $23 million market capitalization.

Managing Director Richard Milsom stated the company is exploring ways to utilise this valuable tax asset, emphasising the urgency for shareholder benefit. The practical outcome prevents shareholders under 5% from exceeding this threshold, while Milsom and WAF cannot increase their holdings.

Allied Farmers' current activities include a 67% stake in NZ Farmers Livestock agency and full ownership of NZ Rural Land Management, generating annual earnings of $3-4 million. The company has informed shareholders it won't pay imputed dividends while using tax losses, believing that retaining and redeploying earnings is in shareholders' best interests for the short term.

This strategic move highlights the company's efforts to maximise value from its tax position while navigating the complexities of shareholder management in a listed entity with a diverse ownership base.

Otago Boys' High School duo clinches Junior Young Farmers title

Two students from Otago Boys' High School in Dunedin have claimed the prestigious FMG Junior Young Farmers of the Year title. 18 year old Shamus Young, and 17 year old Hayden Drummond, emerged victorious at the grand final held in Hamilton over the weekend.

The duo impressed judges with their quick thinking, practical skills, and extensive farming knowledge as they tackled a series of challenging tasks. Their performance stood out among 13 other teams from schools across New Zealand.

Young and Drummond excelled in various aspects of the competition, winning both the farmlet and face-off challenges. They also dominated the quickfire quiz rounds and practical farming race, drawing on their backgrounds as fourth-generation farmers.

Both young men expressed pride in representing their region and school on the national stage highlighting the strength of agricultural education and the future of farming in Otago.

As the country continues to rely on its agricultural sector, competitions like this play a crucial role in identifying and encouraging the next generation of farming leaders.



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