Agsafe Weekly Rural Report

Finance:.   NZ dollar remained steady over the week but remains a very weak currency. The Brent Crude has stayed below $US90 over the week and is $US88.52 this morning up from last week

Wool:  The crossbred wool prices OK but the auction on 30th July saw an easing of prices from a month ago.

Beef, Sheep & Venison schedules: The meat schedules remain steady to slightly firmer across all categories. The international demand for red meat is very strong pushing the local prices higher.

Dairy Prices.  Dairy prices remain firm and the Pulse Auction is indicating a positive move in the coming g/DT.  WMP prices are up internationally and cheese prices are down.

The changes to the RMA are not clear & it appears as though there is still too much Iwi interference in the processes.  There are indications that the Wellington bureaucrats have had too much input & sideswiped Chris Bishop & Shane Jones who were eager to get the changes & took the advisors at their word without second opinions.   

Need Help. If at any time you just want to talk & need someone to talk to, just call - Male Support Services (Waikato) 0800-677-289,  or Rural Support Trust 0800-787-245.  Crisis TXT – HELP (4357).  A shared problem can be a problem solved!!

Jims Rant

Following on from last week the cost of power and the retailers profits have been in the news.  One of the power retailers posted a massive profit of over $600million and that is money out of our pockets, so where does it go.  The major power retailers are owned 51% by the government with the balance mostly held in various international funds!!! The power distribution company, Transpower, is wholly owned by the government and they make sure the power gets to the houses and the businesses. The line companies are separate from the retailers.  The retailers, and the distributor, all try and pretend they are commercial companies and charge accordingly.  Transpower does need to make a profit to maintain and develop its distribution infrastructure and the retailers also need to make modest profit to maintain and upgrade services but the real question is why do the profits have to be so large when they are screwing some major businesses out of business or to shift their manufacturing overseas and forcing some households to turn off heating.  We have seen the timber processors in the Central North Island and Northland close down and deals done with the Tiwai smelter and now with the proposed Data Centre in Southland.  Power charges seem to be at the whim of the retailers.  Many of you will have multiple supply points in the business and very few ever check them.  I have looked at 6 meters that are part of the Genesis retail network and I was surprised at the variation in daily charges and the corresponding unit rates.  If house 3, a staff house, below was on the same basis as house 4, the occupiers of house 3 would save +/-$150/month over the winter period and mine would have been down $24.  The employee has been questioning the power charges and comparing them against previous houses he has occupied and it appears as though his questioning was legitimate.   When the retailer sells you the Power Supply Plan, they always say it is the best available, but now I am skeptical.