Kiwi scientists make breakthrough in methane-reducing pasture, Fonterra to close Waikato canning facility, and farmers positioned for Indonesian dairy boom.

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!

 

Kiwi scientists make breakthrough in methane-reducing pasture

AgResearch scientists have recorded an 11 percent reduction in methane emissions from sheep fed genetically modified High Metabolisable Energy ryegrass. The small-scale trial conducted in containment facilities showed the modified ryegrass, with almost double the lipid content of conventional varieties, significantly cut emissions when measured as a percentage of gross energy intake.

The HME ryegrass programme, developed with support from Grasslanz Technology, PGG Wrightson Seeds and DairyNZ, has been identified as a potential game-changer for Kiwi farmers. Scientists working on the programme believe unrestricted grazing could deliver even greater methane reductions, while also improving productivity through increased nutritional value.

In a separate programme, researchers are progressing High Condensed Tannin white clover towards its first animal feeding trial scheduled for 2026. Early research suggests this modified white clover could reduce methane emissions by 15 percent while improving animal health and production. The team is currently growing the modified clover in Australia to produce enough seed for comprehensive feeding trials.

Meanwhile, AgResearch has paused its application for outdoor trials of ryegrass containing gene-edited endophytes in New Zealand. The decision comes as researchers await clarity from the Gene Technology Bill currently before Parliament, which could provide new pathways for trialling these modified endophytes. The modified endophytes aim to provide better plant protection while eliminating harmful effects on livestock that cause heat stress and ryegrass staggers.

 

Fonterra to close Waikato canning facility

Fonterra will close its Hamilton packaging and canning facility at the end of July as the dairy cooperative continues to reshape its business toward higher-value products. The Canpac site, which currently employs about 120 people, processes less than one percent of Fonterra's total product volume at approximately 4,000 metric tonnes of powder annually.

Fonterra chief operating officer Anna Palairet says the decision reflects the dairy giant's strategic shift toward focusing on its strengths in ingredients and foodservice. Low product volumes through the Hamilton facility combined with increasing production complexities have created challenging economic conditions that no longer align with the cooperative's direction. The company will now begin consultation with affected staff, including exploring potential redeployment opportunities for workers before operations cease on July 31.

 

Farmers positioned for Indonesian dairy boom

Kiwi dairy farmers stand to gain significantly from Indonesia's ambitious school milk programme that will require more than double the country's current milk supply, with potential to soak up NZ milk powder and possibly restart live cattle exports.

The new Indonesian government has launched a nationwide Nutritious Meals Programme targeting 60 million schoolchildren daily by 2029, creating massive new demand in a market where New Zealand has already been gaining ground. RaboResearch estimates the programme will require over 2 billion litres of milk annually once fully implemented.

For New Zealand dairy farmers, the timing couldn't be better. Our market share of Indonesian milk powder imports has surged from just 11 percent in 2019 to a commanding 39 percent today. Fonterra's strategic investment in Indonesian processing facilities back in 2020 has positioned Kiwi farmers to capitalise on this growing market that already imports 2.5 billion litres annually on top of its 900 million litres of domestic production.

The potential benefits extend beyond just milk powder exports. Indonesia plans to dramatically increase its national dairy herd, which could provide a much-needed market for New Zealand's currently suspended live cattle export industry. Public consultation on repealing the 2023 export ban is already underway, with Indonesia representing a viable destination for our surplus dairy stock.

 

New report shows rural women struggle with healthcare access

Rural women are facing significantly greater barriers to accessing healthcare services compared to their urban counterparts, according to a new Ministry of Health review. The review examined abortion and contraceptive services following the 2020 legislative changes that decriminalised abortion and found that while overall access has improved across New Zealand, concerning gaps remain for rural communities.

The Ministry's review revealed that women in remote areas often face lengthy travel times to access surgical procedures and follow-up care, with 43 percent of women accessing surgical abortion services in 2024 having to travel outside their home district. This burden increases with socio-economic deprivation, creating a double disadvantage for rural women in lower-income brackets who face both distance and financial barriers to healthcare.

Sexual Wellbeing Aotearoa chief executive Jackie Edmond acknowledges progress has been made through telehealth services like the free 0800 DECIDE helpline, which provides remote counselling options. However, she emphasizes that in-person services remain essential, particularly for surgical procedures that cannot be delivered remotely. 

The Ministry highlighted the issue of limited provider options in rural areas, noting that some women may not feel comfortable approaching their primary care provider for certain services due to privacy concerns in smaller communities.

 

DairyNZ Farmers Forum returns to tackle dairy's future challenges

Registration is now open for DairyNZ's flagship Farmers Forum events, the industry's premier knowledge-sharing gatherings in Waikato, Canterbury and Southland.

The nationwide series kicks off at Hamilton's Claudelands Event Centre on May 27, before moving to Ashburton Events Centre on June 17 and concluding at Invercargill's Ascot Park Hotel on July 2nd. The forums bring together farmers and rural professionals to collectively tackle the sector's biggest challenges and opportunities in an increasingly complex global environment.

DairyNZ Chief Executive Campbell Parker says while ensuring a positive future for the sector is an industry-good responsibility, it requires farmer engagement and leadership. The events will deliver actionable insights into emerging economic trends, technological innovations and regulatory developments directly affecting farm businesses. A lineup of experts and innovative farmers will share knowledge and push boundaries at the forums.

Registration is free for levy-paying dairy farmers and their staff, with full programme details available on the DairyNZ website - follow the link in this episode's description: dairynz.co.nz/farmers-forum

 

And that is the final episode of the Early Bird series. You can still keep up with what's happening on and off the farm with CountryWide, New Zealand Dairy Exporter, and Life and Leisure magazines, websites and podcasts. 

Links are in this final episode's description:

CountryWide: https://country-wide.co.nz/

New Zealand Dairy Exporter: https://dairyexporter.co.nz/ 

Life & Leisure: https://ourwayoflife.co.nz/ 

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