FEDERATED FARMERS GRAIN & SEED CHAIRPERSON, IAN MORTEN

At this year's Grain and Seed conference/AGM in Ashburton, the topics of promotion and marketing of New Zealand produce were a strong theme. Energetic discussions were also held on the woes of the New Zealand grain markets and the promotion and marketing of grains, which were followed by John Hartnell's ‘tongue in cheek' address.
From these discussions a major question arose; would you be prepared to make a voluntary payment into a marketing fund of around $1 per tonne to help promote the benefits of using New Zealand grown grain? This led me to ask the following questions.
Would you be prepared to:

• Put in 100 percent to try and gain back some of the market share that has slipped into the imported grain stable?
• Challenge the use and value of palm kernel as a stand-alone feed?
• Challenge our millers to use New Zealand wheat?
• Challenge our freight companies and ports to get the pricing right so we can compete?
• Be prepared to highlight the biosecurity risks that some of these imports bring to New Zealand?
• Look at and highlight the grower support that other countries provide for their growers?
• Be prepared to front up to the New Zealand public about growing practices, sustainability plans and quality?
• Trade on the fact that grain is New Zealand grown?
• Promote providence by proving to the New Zealand public that New Zealand grain is the best available product and that all grain users should only use the best?
• Be proud to be a producer of good, wholesome grain and to get out there and promote it?
• Go out and win the hearts of the New Zealand consumers?

As a farmer, you not only put your money, but also your time into growing a high quality crop and over the last few years that effort has not been rewarded at the time of sale. Think of the repair bill from fixing the tractor or a piece of broken machinery, did that expense bring in more income? You probably paid it with out a thought. What if you invested in something positive, something that may bring in an increased return?
Why am I writing this you might ask? Well, I have watched our grain industry struggle to capitalise on good grain prices and be screwed when prices are weak and I believe there has to be a better way. But no one is going to do this for us, we have to get out there and help ourselves. I believe we have a good story to tell and we should front a campaign with our own ‘real' people.

Was the discussion at the Grains Conference just another lot of hot air or are you seriously interested in trying to do something about it? I am calling out for feedback to all these questions and the discussions held at the Grains Conference.

To let us know what you think, ring you local grains chairman, myself or Carly Sluys, your policy advisor You can find all our details by clicking here. By collecting your feedback, we will be able to determine whether it is worth trying to bring about change and whether we can work towards making grain markets work better for the growers.

Ian Morton
Grain & Seed Chairman
027 436 1644, or click here to email

Overnight market news, Malcolm Barthlomaues, Callum Commodity

• Wheat fell 10 USc/bu overnight after opening lower, this early weakness came from a higher US dollar, which got caught in the sell-off in US shares.
• Export inspections came in at 13.9 million bushels, down from 15.02 million bushels, which was in line with expectations.
• Corn was down 6 USc/bu in conjunction with a stronger US dollar, lower share prices and crude oil prices.
• Cooler weather and improved growing conditions continue to add to yield potential in the US.
• Soybeans fell 27 USc/bu against the weaker economic outlook and negative moves in most other markets.
• India saw improved monsoon rains over the weekend.
• Canola got caught in the same downdraft as the other grains.
• The weather in Canada has been more favourable, with few frost reports over the weekend. Frost is back in some forecasts for later this week however.
  (Sources: Dow Jones, AgricultureOnline, Future Source, Bloomberg)

Commodity outlook, Doug Steel, Senior Westpac Economist

International grain production is projected to fall around 4 percent in 2009/10, including a 5 percent drop in wheat production. But supply is similar to 2008/09 with high carry-over stocks. High carry-over stocks are also a feature of the domestic wheat market. This is likely to keep downward pressure on feed wheat prices over coming months. Reduced autumn plantings will help restore the demand/supply balance in time.

South Canterbury, Michael Tayler

The market has been very quiet recently but prices further north are reaching $310 for feed wheat and $290 for feed barley. These are slightly down on last month's prices and are only at breakeven levels.

Southland, John Gardyne

Contract oats are moving into sale, but there has been no movement on barley and wheat. Calving is just starting and temperatures have been much colder than average (so much for global warming). If it is a slow spring, there will be a good demand for feed grain, but farmers do need to watch out for bad debts.

The following anecdotal prices have been collected from our Grain & Seed Chairmen around New Zealand. 

Grain Pricing and Import Statistics, David Clark, Mid-Canterbury

Over the last three quarters, I have commented on the Grain Import Statistics that are compiled by Statistics New Zealand These are based on the declarations made to New Zealand Customs by the importers of grain into New Zealand. Below are the import statistics for the April-June '09 quarter.

New Zealand has imported 163,346 tonne of Australian grain at a total declared cost of $85.7 million this year. No wonder New Zealand has a trade deficit the size it does.

Please note: These statistics are in raw format and provided in order for you to consider them in relation to your own business and not to the values you are being offered for your grain. That is entirely between you as a farmer and the merchant who markets your produce and provides your market information. If you wish to receive a full copy of the spreadsheet, please contact me by clicking here.

Agricultural vehicles guide

The rules and regulations surrounding the operation of agricultural vehicles on road can be complex. To make things easier, Federated Farmers along with others have been involved in the production of an agricultural vehicles guide. Federated Farmers have this guide for sale for $20. However, Federated Farmers members can purchase the guide for only $10. The guide is perfect to keep in the shed or glove box and contains practical and useful information to help keep you safe and compliant, when driving a tractor, combine harvester or other piece of agricultural machinery. To purchase the guide, please click here, or phone 0800 FARMING (327 646).

Learn the basics

With the Open Polytechnic's Certificate in Environment and Sustainability, you can learn the basic environmental concepts of ecology and sustainable environmental management. For more information, please click here or call 0508 650 200. Remember, Federated Farmers members get a 20 percent discount. Click here to download an enrolment form.

Agribiz

For the latest market update from Westpac's economics team including the outlook for dairy, beef and lamb, please click here.

Rural Press

Looking to advertise to rural New Zealand? Well look no further. NZ Rural Press is the country's largest agricultural publisher, with well-known and respected titles including Straight Furrow, The Dairyman, AgTrader and NZ Lifestyle Farmer. We offer all Federated Farmers members a 10 percent discount on their advertisements. Please call 0800 55 55 44 now to place your advertisement or click here to visit the Rural Press website.

More members' benefits and offers

To view special discounts exclusive to Federated Farmers members, please call 0800 327 646 or click here to log onto our members only area.

Employment contracts and agreements

The Federation's online shop stocks a range of contracts to assist with your farm business.  Remember, it's a legal requirement to have an employment contract for EVERY employee so if you don't have a current employment agreement, then order one now by calling 0800 FARMING or  click here. Employment contracts and agreements are available in both electronic and hard copy formats for your convenience.

Contracts, agreements and leases

These include land, stock, contractor sales and purchase, agreement to grow, log books, access pads and Over Dimension Certificates. Contracts, agreements and leases are available in both electronic and hard copy formats for your convenience. To purchase, call 0800 FARMING or click here.

Recommend new members

Federated Farmers would like to extend a special offer to those who introduce new members. Call us on 0800 FARMING (327 646) and we'll sign them up and send you a $50 petrol voucher as well as take $50 off their membership. Click here to find out about all the benefits of becoming a Federated Farmers member.

If you have any questions or comments about matters raised in this newsletter, please don't hesitate to contact one of the Federated Farmers Grain & Seed team. After all, that's what they are there for! You can see the full list of contacts by clicking here.