Thursday, April 25, 2024

Fifteen reasons to be positive

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The summer break is a great time to feel grateful. The best part is having family and friends around. And after putting in the hard yards last year and getting ready to do it again, it’s a wonderful chance to kick back, at least briefly, and appreciate the things that you’ve been too busy to pay attention to recently.
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New Zealanders get that dairying’s important.
That wasn’t always the case. Arguments about over-reliance on dairying will continue, but the contribution the industry makes to the national economy isn’t up for debate.
The dollar’s lower than it has been.
Politicians and economists tell us a strong dollar should be welcomed as the sign of a strong economy, but it has slipped below the radar as a good investment option. Who says you can’t have it both ways for a little while?
Russia’s still buying NZ dairy products.
Trade relationships are all about being there for the long term, and although Russia’s ban on many of our competitors’ products has driven down everyone’s prices, the trading future between the two countries looks good.
Speaking of trade, the NZ-China relationship has moved to a new level.
The official opening of the Bank of China’s first branch in NZ in November was a sign that there’s a maturity to how the two countries deal with each other that goes way beyond what was envisaged when the free-trade agreement was signed in 2008. Who knows where things can go from here? And who knows what the recently signed deal with South Korea will yield?
Dairy factories continue to open or be extended.
More competition and more capacity is good for a vibrant industry on the move. Fonterra chairman John Wilson has warned that with tighter cashflows, no matter what the weather delivers there will be more traditional farm management with less supplements fed and higher culling rates. Would a correction in the milkflow growth of recent years be a bad thing? A lower payout means every drop of milk is important but for some farmers it might be an opportunity to refocus and step off a treadmill they don’t realise they’re on.
DairyNZ research results about cow housing cost benefits can only be welcome.
The jury has been out on many aspects of this change with different regions producing different results. Competing companies have talked up their particular solution to high nitrate leaching levels, low production, and less than optimal cow condition. Putting figures around the equation gives farmers a better steer about what’s right for their situation. There’s more research to be conducted on aspects which haven’t yet been studied such as heat stress effects, which will enable farmers to see their levies really paying practical dividends.
Agricultural training has had a shake-up.
It’s to be hoped farmers will actually get what they want when it comes to young staff coming to work on their properties. Opportunities have never been greater, especially when you consider the number of youngsters encouraged to study other subjects where employment prospects are very thin on the ground.
Sheep and beef returns are on the up.
It’s been lonely for dairying while it’s been the sector making the best returns. There are many arguments against monocultures and one of NZ’s huge advantages is the different livestock and crops it can grow. Never write off one of them when they’re down.
Maybe the meat processing industry will at last follow Fonterra?
Possibly.
Richie McCaw.
How many countries have the captain of their most recognised sporting
team as the brand ambassador for their largest company? McCaw’s as nice a person as you could meet extolling the benefits of Fonterra’s Milk in Schools Programme and posing for endless selfies with schoolchildren or their swooning mothers.
The organic sector has its tail up.
Times have been tough when organic milk’s been by turns much wanted then not required by processors. But market demand doesn’t lie and NZ has some pretty big pluses when it comes to the story it can tell.
But it’s only milk with chocolate added…
I had a taste of Lewis Road Creamery’s chocolate milk recently, secured by a friend and slipped my way in a very secretive manner. It’s milk, it’s chocolate, it’s giving young consumers a whole new reason to buy something we older consumers have always known is good for you.
Auckland’s loss is rural areas’ gain.
Housing affordability anywhere outside Auckland, and steady improvements in internet services, mean the old barriers are breaking down. This is good news for a town near you.
Technology.
It’s taking dairying to a new level when it comes to collecting, storing and comparing data. It’s also making life easier in many ways.
Tall poppies are flourishing, not being felled.

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