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Here are a selection of current stories from agridata.co.nz

“Super grass” aims to boost milk production

Researchers planning on launching a genetically-engineered “super-grass” by 2013 claim cows grazing on it will produce up to 20 percent more milk.

The GE ryegrass – being developed in Australia for NZ seed company PGG Wrightson – has potential to make a huge difference to agriculture, according to the chief executive of the Australia’s Molecular Plant Breeding Cooperative Research Centre (MPBCRC), Glenn Tong.

Existing dairy farming pasture-grasses are mainly perennial ryegrass and tall fescue, but the perennial ryegrass grows best in temperate areas that are becoming warmer with climate change reports Stuff. Mr Tong told the ABC that the technology works to increase the carbohydrates or energy molecules in the grass, and the fodder will also be more digestible than existing ryegrass so the sheep and cows can access those energy molecules more easily.

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interest.co.nz has a sister on-line publication agridata.co.nz which follows rural issues of interest to working farmers.

We are working to draw the two services closer together, and this project will be launched later in the year.

In the meantime, here is Agridata’s latest weekly review of farm-gate prices and price influencers.

Deer
The velvet market is in an awkward dilemma with Chinese demand unsatisfied for regrowth, spiker and manufacturing grades, but they show little interest in NZ’s heavier sticks.

To survive farmers have lifted stick weights substantially, and now a large portion of production is in the A and super grades.

Korea is the main market for these, and with recent demand flat, producers are having to be patient as the product is steadily sold, in a bid to maintain price, and build long term business.

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Commodity prices rose 7.9% to near record highs in February as most commodity prices rose in US dollar terms and the New Zealand dollar softened over the month, the ANZ Commodity Price Index found.

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interest.co.nz has a sister on-line publication agridata.co.nz which follows rural issues of interest to working farmers.

We are working to draw the two services closer together, and this project will be launched later in the year.

In the meantime, here is Agridata’s latest weekly review of farm-gate prices and price influencers.

Deer
As the autumn approaches many deer farmers will be looking for market signals to calculate the price of weaners. With most of these animals harvested for the spring chilled market, early venison price parameters are important in creating a sustainable value. Exporters’ early indications are for a spring schedule lower than last year, directly reflective of the strengthened euro, at about $8.25 per kg. And with a five year average fall in spring-to-summer schedules of about $1.44, this will give producers a feel of the market for budgeting purposes.

For sustainable long term weaner deer production, farmers should be developing relationships with finishers that share the highs and lows of venison prices in the spring. The focus should be on getting more, big animals early and on the ground in autumn, factors that skilled management can influence.
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Total farm sales in New Zealand slumped more than a third to 46 in the month of January from the same month a year ago, Real Estate Institute (REINZ) figures show. REINZ President Peter McDonald said it was “most alarming” that only 7 dairy farms were sold in the ‘prime’ month of January and he cited weak bank lending rather than a lack of demand from buyers. (Update 3 with Rabobank comments)

“There is confidence amongst buyers in the rural sector and a lot of interest in farms, but there appears to be a distinct lack of confidence from lenders,” he says.

Reserve Bank figures show bank lending to farms dropped NZ$315 million to NZ$46.916 billion between the end of September and the end of December. This was the first fall in agriculture lending in 9 years. See the interactive chart of agriculture lending growth here.

The Reserve Bank warned banks last year about lending too much to the farming sector and many of the rural banks have tightened their lending criteria in the last six months, partly because the banks are more exposed to farming debt and because of an international push for banks to hold more capital and be less leveraged. The Reserve Bank is also increasing the risk weightings that banks must use when they calculate their capital requirements, which effectively increases the cost of funds and is likely to discourage a repeat of the very strong lending growth seen through 2005 to 2008. This is the end result of the need internationally to de-leverage economies, including New Zealand’s.
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New Zealand posted a trade surplus of NZ$2 million in December, the first monthly surplus since May, after imports fell 18.6% in the month from a year ago and exports fell 11.3% from a year ago, Stats NZ data shows.

Exports for the December quarter fell 2.8% to NZ$9.2 billion from the September quarter, the fourth consecutive quarterly fall. Imports fell 3.2% in the quarter to NZ$9.4 billion, the fifth consecutive quarterly decline. This left a quarterly trade deficit of NZ$170 million or 1.8% of exports, which was the lowest deficit since the March quarter of 2009.

Dairy exports fell 10.1% by value in the quarter and 6.1% by volume, while imports of capital goods for investment by businesses fell 11.1% in the quarter as businesses bought less machinery and equipment.

Consumption imports fell 3.6% in the quarter, mostly in semi-durable and non-durable goods such as clothes, shoes, food and beverages. Passenger car imports rose 26.8%.

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