Early Bird I Friday November 29th 2024

Global dairy squeeze lifts New Zealand milk futures. wine sector transitions to new trade certification system, and LIC reaches major milestone. 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!   Global dairy squeeze lifts New Zealand milk futures Our dairy market is showing strong signs of recovery, with milk futures breaking the $10 per kilogram of milksolids barrier this week. The price surge is driven by a significant resurgence in demand, particularly from China. If current trends continue, dairy farmers could see their best margins in seven years. Fonterra has already responded by lifting its full-year milk price forecast to $9.50 per kilogram, narrowing its prediction range and signaling confidence in the market. Some banks are even more optimistic, forecasting prices as high as $9.75 per kilogram. The global dairy landscape is contributing to the positive outlook. European dairy production has been challenged by difficult weather conditions and a cattle disease outbreak, while the United States has seen only minimal increases in dairy production. Demand isn't just coming from China. Southeast Asia and the Middle East are also showing strong interest in dairy products. Supply constraints worldwide are further supporting prices. Domestically, New Zealand's dairy production remains robust. September data shows milk solids production up 5.2% compared to the same time last year.  The potential financial impact for farmers is significant. The difference between the estimated breakeven price and current futures suggests a margin of $1.85 per kilogram - the largest percentage margin in seven seasons at nearly 23%. Hawke's Bay housing plan threatens prime agricultural soils A proposed housing plan for Hawke's Bay is creating significant controversy, pitting urban development against agricultural preservation. The Heretaunga Plains, a 300 square kilometer stretch of fertile land, is at the center of a heated debate about future urban expansion.  Founder of Save The Plains Group Richard Gaddum argues that the proposed development would consume nearly 365 hectares of elite Class one, two, and three soils - some of the most productive farming land in the world. He's calling for a radical rethink of urban development strategies. Napier City councillor Neil Kirton has raised additional concerns about flood risks. He's particularly critical of a proposed 660-house development on Riverbend Road, a site that has flooded twice in three years and serves as a critical stormwater pathway. Despite these concerns, Napier Mayor Kirsten Wise remains confident the proposal will get the final green light.. The debate touches on broader issues of sustainable urban growth. With the region's population continuing to expand, local councils are struggling to balance housing needs with environmental and agricultural preservation. Gaddum is urging public engagement, with submissions on the Future Development Strategy closing on December 23rd.   Wine sector transitions to new trade certification system A major milestone in the wine sector this week, successfully transitioning to the new digital trade certification platform.  Previously, exports were certified through six different legacy systems that would have required substantial investment to maintain. The new integrated digital process provides a single, streamlined approach for exporters across multiple industries. The system offers immediate benefits, including new opportunities under the recent European Union Free Trade agreement that were previously unavailable. The rollout will happen in stages. While wine exports are now on the new system, certification for plant products and animal products, including dairy, will follow next year. Ministry for Primary Industries officials have worked closely with wine exporters to ensure a smooth transition, particularly as they approach the early harvest season.   Government moves to combat illegal timber imports The Government is taking significant steps to combat illegal timber trading by introducing a new legal harvest assurance system. Forestry Minister Todd McClay says the system will fundamentally transform New Zealand's timber trade by limiting the risk of importing illegally harvested timber and providing international markets with confidence in New Zealand's timber products. It comes on the back of increasing global market demand to verify proof of sustainable and legal timber sourcing.  The proposed legal harvest assurance system aims to create comprehensive protections. It will reduce risks associated with illegal timber harvesting, provide exporters with clearer pathways to meet global market requirements, and ensure imported timber meets stringent legal harvest standards. Public consultation is open until February 26th next year, with the system expected to be fully implemented by August 2027.   LIC reaches major milestone LIC has reached a milestone in dairy genetics, genotyping one million dairy animals since launching in 2008. LIC has revealed that calf number 301 on a Te Puke Farm is the milestone animal. The cooperative was the first dairy genetics supplier in New Zealand to use genomic technology, initially analyzing about 5,000 sires in the early stages. By 2015, they had expanded to genotyping 35,000 New Zealand dairy animals, primarily collecting data on cows. This research has allowed LIC's team to identify genes associated with breeding and milking performance, going beyond simple production metrics. The data helps create more accurate breeding evaluations for farmers. The technology is particularly important as the dairy industry focuses on sustainability. More efficient cows mean lower methane emissions per milksolid produced. By using genotype data to select calves, farmers can improve their herds' overall performance and environmental impact.  See omnystudio.com/listener for privacy information.