Agsafe Weekly Rural Report

Finance: The NZ dollar was steady through the week and finishing at a level similar to last week. The economy outside of agriculture is struggling, the government is trying to talk-it up. Brent Crude is moving around below the $US70/barrel - currently $US61.38

Wool: The demand for wool is increasing, and prices are firming. There is strong demand from China and limited supply.

Beef, Sheep & Venison schedules: The meat schedules are steady with strong demand for red meat internationally. There is interest in using more of the 2 million bobby calves to grow the beef herd.

Dairy Prices. The g/DT eased again last week by 1.6%. It is not a major drop but the WMP fell 2.4% to $US3610/tonne which is of concern. Further drops at the next 2 auctions could force Fonterra to reconsider the FGMP for the season.



Many Fonterra suppliers are anticipating the sale of the brands they have spent decades developing. Many of the suppliers I have spoken with have ticked the YES box to sell, but they are not in favour of the sale. The money talks and the age of the farmers has a lot to do with the decision. To reduce debt or provide capital to the next generation is always attractive.
You can hear us live on the radio on Monday morning at 7.35 am with Brian Kelly on Country Sport Breakfast – Radio NZ Gold AM. 792 AM in the Waikato & 1332 AM in Auckland.

Jim’s Weekly Rant:

Drugs and alcohol continue to be a problem in the workplace and that includes farming. In simple terms there is no place for drug-fueled employees and/or alcohol impairment at work. The Drug Detection Agency (DDA) and other testing groups are vital. The health and safety of the affected employee and other work colleagues are at risk and depending on the effect of the drug or alcohol the animals can also be at risk of injury. Remember that the PCBU is responsible for all staff and an impaired employee that causes an accident or incident while under “your” watch exposes the PCBU (you) to possible legal action. Don’t be afraid to get your staff tested. It’s not just the common marijuana joints; it is the Methamphetamine and other imported drugs as well, they are drugs that often allow employees to work long hours and cope with stressful situations. The contracting employees are often considered high risk and no one is immune to the problem. As summer tries to arrive, the party times increase and the easy access to drugs becomes part of life for many. The NZ drug industry is no different to other countries as it continues unabated internationally. The business is worth billions of dollars worldwide and we are all amazed at innovative ways the smugglers move them around the world. The first real move against the international trafficking of drugs has begun under the Trump watch with drug running boats being blown out of the water in the Caribbean north of Venezuela, I hope you all saw the footage as it was spectacular and it will hopefully send a very strong message to the drug traders/runners. The USA has also imposed sanctions on Columbia as large volumes of the international drug trade comes from the northern part of South America. The Caribbean has been a hotbed of criminal activity for years and the pirate stories and the drug-running stories are all real with fast boats and desperate operators prepared to defend their cargo with guns to ensure the drugs are delivered safely to their destination. Trumps actions are decisive and effective and while they take place in international waters, there seems to be little room for international retaliation. But the real question is what can be done in a place like NZ? Decisive action seems to work and cleaning out the source of the problem leads to success. My simple message is to all employers is to be proactive, drug test staff and take action when and where necessary. Your decisive actions might just save someone’s life and send an important message to others. All employment agreements and health and safety policies have a zero-tolerance for drugs in the workplace.