Dairy giants future lays with this weeks Synlait shareholder vote, Gisborne farmers face land use shakeup, and Beef + Lamb NZ hits the road looking for farmers’ voices. Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather! Dairy giants future lays with this weeks Synlait shareholder vote South Island dairy company Synlait Milk faces a critical moment as it heads into a crucial vote this Thursday. The outcome will determine the firm's future and its ability to continue operations. At the heart of the matter is a $130 million loan offered by Synlait's largest shareholder, China's Bright Dairy. This funding is essential for Synlait to repay bank loans due on July 15th. While Bright Dairy cannot vote, the loan's approval hinges on other shareholders, notably A2 Milk, which owns about 20% of Synlait. A2 Milk has not disclosed its voting intentions. Synlait chairperson George Adams emphasised that the company's fate lies with institutional and retail investors, who collectively own 41% of shares. He reports that initial feedback from these investors has been encouraging. Adams urges all shareholders to cast their votes, stating that if the loan is not approved, Synlait will have limited options. The board would need to discuss alternatives, which may include voluntary administration if the company becomes unable to meet its financial obligations. The deadline for proxy votes is this afternoon, with the special shareholders meeting scheduled for Thursday afternoon. New report forecasts New Zealand's milk growth slowing to a trickle New Zealand's dairy industry faces moderate growth in the coming decade, according to the latest OECD-FAO Agricultural Outlook. The report indicates our milk production will likely increase by just half a percent annually over the next ten years. This limited expansion stems from land and environmental constraints. While New Zealand accounts for only 2.5% of global milk output, we remain the world's most export-oriented dairy nation. After two decades of strong growth, our milk production has levelled off and is expected to continue this trend. The outlook maintains that New Zealand, along with the European Union and United States, will continue to dominate global dairy exports, collectively accounting for nearly 70% of the market. Our nation leads in butter and whole milk powder exports, while the EU excels in cheese, and the US has taken the lead in skim milk powder. Globally, milk production is forecast to grow at 1.6% annually, outpacing many other agricultural commodities. India is set to retain its position as the world's largest milk producer, with China remaining the top importer of dairy products. The report highlights challenges facing major dairy exporters, including economic and environmental hurdles. While plant-based alternatives are gaining ground in certain regions, their long-term impact on dairy demand remains uncertain. Environmental legislation could significantly influence dairy production's future, potentially leading to innovative solutions that enhance the sector's long-term competitiveness. The outlook also notes that India's potential integration into the global dairy market could have far-reaching effects. Climate change and extreme weather events pose additional threats to milk production in affected countries. However, the report suggests that efficiency gains in countries with large cattle populations could help mitigate global greenhouse gas emissions from the dairy sector. As the industry evolves, New Zealand's dairy farmers and processors must navigate these challenges while maintaining our strong position in the global market. Gisborne farmers face land use shakeup Gisborne farmers face potential changes to their operations as the region's council unveils new land adaptation plans. These initiatives aim to address erosion risks across Tairāwhiti, with significant implications for agricultural practices. The council's 'Overlay 3B' classification targets the most erosion-prone areas in the region. This new approach may require some farmers to transition their land into permanent vegetation cover, marking a notable shift in land use. Council chief executive Nedine Thatcher Swann explains that advanced technology has been used to identify high-risk areas for landslides and their impact on waterways. This data-driven approach could reshape farming landscapes across Gisborne. While the Eastland Wood Council views the new mapping favourably, the impact on individual farmers remains a key concern. The council anticipates significant changes in land management practices, which could affect agricultural operations. Notably, Federated Farmers was unable to comment at the time of the report, highlighting the ongoing uncertainty surrounding these changes for the farming community. The council plans to investigate the economic,...
