Ravensdown claim backdown over PKE but haven't gone far enough

Today the PR spinners were busy again, convincing arable farmers that Ravensdown are pulling out of the South Island animal nutrition market due to continuing 'negative' feedback. However, they claim this was in the face of 'overwhelming support'. Which was it then? - negative feedback or overwhelming support? Farmgirl is confused.

But besides this point there is another. The South Island market was small and the meetings where Ravensdown claimed support were about selling PKE into the North Island. It is still many arable farmers contention that Ravensdown should not be importing PKE into any of New Zealand. The North Island market is still undercutting arable suppliers. Therefore the backdown today from Ravensdown is nothing but a PR ploy and is not worth the paper it is written on.

For goodness sakes, if you can understand how damaging this has been, boys, to your reputation as the small concession today recognises, then surely you can extend the hand further and stop bringing in PKE altogether.

Questions still need to be answered as well...if they are promoting a 50/50 percent blend of PKE and barley why is it that they have only taken 6500 tonnes of barley. If you do the maths they sold 50 000 tonnes of the mix last year - doesn't look as though that barley made up 50% does it?

Feds to the rescue

And the handshake of the week goes to Ian Morten, the Federated Farmers Grain and Seed Chairperson for his and the Feds concerted and continued effort to squash PKE imports.

Farmgirl has already voiced her opinions on PKE and how it continues to undermine arable farmers' bottom lines, as well as present a significant risk to all of our industries.

Ian's call this week to report any foreign matter in PKE reminds us all of how ridiculous the entire situation is. The Feds have received 'anecdotal evidence' of insects, soil etc being present in the mix, although MAFBNZ claim there hasn't been any substantial risks so far...

Why are we waiting at the bottom of the cliff with our arms wide open rather than blocking the fall?

It seems simple. PKE presents a risk - get rid of it and support our local cockies instead of their overseas counterparts.

Farmgirl back online

Farmgirl is now back online after a maternity break and has plenty to write about. Much has been happening in between, including some interesting new developments with PKE, Ravensdown's annual report and of course our rock star PM making the rounds in America, still looking like the nerdy boy at primary school who just topped the spelling bee!

Be sure to keep the discussion and comments coming.

Tah tah tah tah...and the Smooth Operator of the Week Award must go to....Ravensdown CEO Rodney Green

Hark the herald angels sing...no it's not a Christmas angel...it's Rodders in all his preened public relations finery in Ashburton this morning keen to unsoap his mouth from the recent gaffes he made in the media when he ignored the existence of the New Zealand arable industry and it's importance to the Ravensdown coffers. (see post further down)

Alas Farmgirl hears there was no mention of that...he'd cleaned up his act and polished his lingo to perfection particularly when it came to the point of the meeting - why Ravensdown continues to be in the PKE market when it disadvantages the arable shareholders he hadn't realised existed until lately.

Ravensdown imported 90 000 tonnes of PKE this year and have sold around 50 000 and apparently on this basis cropping clients should be relishing the opportunity to add a meagre 5500 tonnes to the mix.

5500 tonnes? In arable lingo that's about five small farms that might benefit from the market but hey Mr Green and his cohorts reckon this could be a fantastic opportunity for us poor dumb cereal farmers. Apparently in this recession Ravensdown alone will convince the cash strapped North Island dairy farmers of the poor nutritional content of PKE when they sell it to them and then these same dairy farmers will come back, singing hallelujah you were right Rodney, and purchase bucket loads of the PKE barley mix while we celebrate by emptying our silos down here.

Yeah right!

And then of course Farmgirl understands there were the veiled threats that the Australian Barley Board (ABB) who has recently purchased plant in Hornby would get in on the act and might not put New Zealand barley in their mix. We should fear the Australians and trust Ravensdown was the message. But hold on...up until last week Rodney said it was the Australians that were adding a third commodity group to the Ravensdown market in arable farming, so who should we fear here?

In reality Ravensdown is all PR fluff. Nothing has changed. If the PKE barley market is a goer what's to stop RD1 getting on board anyway? The fact that they're not doing the same thing proves that there is room for doubt as to whether dairy farmers will really buy the more expensive supplement.

Yet again Ravensdown have misjudged the feeling in the arable sector. They should not be in the PKE market at all and no amount of wing preening by Rodney Green will change that.

Ravensdown and a whole can of whooey

The latest PR offering from Ravensdown on its palm kernel business was nothing more than a slippery backslide designed to do nothing more than calm the angry hordes of arable farmers who make up a substantial percentage of Ravensdown's fertiliser profits.

Talk about biting the hand that feeds you. First they try to make a buck at the expense of cropping farmers by importing palm kernel to dairy farmers, when those very same farmers might have purchased wheat from their New Zealand neighbours, and now they have fobbed the protests aside by claiming that they are the arable industry's saviour, charging in on a white horse.

Their PR doctors should be given a pay rise (the palm kernel profits could be the trick) for their claim that by adding a small amount of grain to PKE this season they have created a 'new' domestic grain market for farmers.

Very few wheat farmers sell their grain for the purpose of Ravensdown's diffusive business plans and two major points have been missed in the process.

Ravensdown is a farmer's co-operative - not a dairy farmer co-operative, not a sheep farmer or arable farmer co-operative, but a united farmer's co-operative and as such any move by the directors to go into a business which seriously disadvantages one group of farmers like the palm kernel imports does should be vetoed.

These board sitters should be sacked if they can't even stick to the core principles of a co-operative and arable farmers should vote with their feet and buy from the opposition until such time as Ravensdown sees fit to even up the playing field again.

Imagine the outrage from dairy farmers if Ravensdown went into importing milk powder to those beef farmers breeding bobby calves. It is the same thing.

They are a fertiliser co-operative and these decisions serve to drive a wedge right through their community of shareholders. Many were unhappy about the decision to stray from their core business of fertiliser when they decided to go into agri-chemicals and many more may be unhappy if this foray into palm kernel imports proves marginal on the bank sheet as some suspect it might.

If Ballance were smart they would move in for the kill. There has never been a more opportune time.