Federated Farmers: Focus on grain and seed

Internationally, the increasing cost of corn has prompted speculation about livestock farmers changing to wheat for feed. That would have to be a gradual change and, with low international stocks, Westpac believes underlying demand will remain strong. However, high prices may start limiting consumption growth.
Undoubtedly, PGG Wrightson's future is on the lips of most Grain and Seed farmers or more specifically, the future of its vital seeds business. While Federated Farmers would have preferred PGG Wrightson to stay local, Agria's takeover offer is now unconditional after clearance from the Overseas Investment Office. At least there will be a New Zealand connection, through Ngai Tahu Holdings' recently announced $15 million deal securing a 7.09 per cent stake in Agria Singapore. Certainly, this is a far better outcome than if Agrium had swooped on PGG Wrightson. This Canadian agricultural giant, which acquired Australia's AWB last year, got with it a 50 per cent stake in RD1. That was more than a beachhead. As it stands we face stiff competition from imports - something the Federation is watching closely on competition law and biosecurity grounds.
The energy in Grain & Seed will also be on show at our annual conference this month in Ashburton. The focus will be on giving grain and seed farmers inside knowledge on business and industry structures. This conference will be well worth your time, so put a ring around May 27-28 and either call 0800 327 646 or go to the Grain & Seed page at www.fedfarm.org.nz. While judging would have just started by the time you read this, the United Wheat Grower's Wheat Competition sums up the positive role Federated Farmers is looking for. Sponsored by the Ashburton Trading Society, this competition is about promoting and rewarding the growing of high quality bread, feed and biscuit wheat in New Zealand.