Agribusiness buzz in brief

The mining and agribusiness billionaire family's investment group, Tattarang, spent $27 million to take part in a capital raising offer by NFW, which also attracted funds from BMW and fashion group Ralph Lauren.

US-based NFW's patented "zero plastic" (fake leather) materials are used by New Zealand's Allbirds footwear brand as well as clothing labels H&M and Alexander McQueen.

Tattarang's chief investment officer, John Hartman, has reportedly noted while RM Williams' core focus would always be leather boots, the NFW connection may allow future investment in a 100pc plant-based alternative boot to meet changing consumer preferences.

Tattarang paid almost $200 million to buy Adelaide-based RM Williams in October 2020 from the Louis Vuitton-backed private equity group L Catterton, and five per cent shareholder and Australian actor, Hugh Jackman.

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Rabobank is forecasting a modest global sugar surplus of 2.5 million tonnes in 2022-23 as production continues to recover from a slight supply deficit in 2020-21.

The agribusiness banker says, however, it also expects ongoing strength in sugar pricing, with high energy costs driving New York's ICE Number 11 market indicator to trade between US19.3 cents a pound and US20.1c/lb through 2022.

World raw sugar prices in April were more than 10 per cent up on March values.

RaboResearch's Australia and New Zealand general manager Stefan Vogel (pictured) said local production was likely to be slightly higher at 4.5m tonnes in 2022-23, with strong prices and adequate weather benefiting local sugar production.

However, headwinds for farmers included high fertiliser costs, a strengthened dollar and continued global export competition, especially from India.

Global production growth is primarily in Asia, particularly India, as well as Brazil and the EU, although Rabobank expected a 50pc fall in Ukrainian plantings.

It tipped a 0.8pc lift in global consumption in 2022-23.

After a two-year hiatus, Australasia's most prestigious annual baking prize, the LA Judge Award, returns from May 10 to May 12.

Established in 1967, the baking contest pits young apprentice bakers from Australia and New Zealand against each other over three days of friendly, but intense, competition

A gala dinner to celebrate the apprentices and award the LA Judge title will be, on 12 May in Sydney.

The event, named in honour of one-time Inverell, NSW, farmer turned baker, Les Judge, normally draws about 200 baking industry stakeholders.

AEGIC research and technical Services, Dr Ken Quail, said the award evening was a "fantastic opportunity for the Australasian baking industry to celebrate the wonderful young men and women who are the industry's future".

The event's sponsors include Puratos, Woolworths, Australian Bakels, Manildra Group, Lesaffre Asia Pacific, the National Baking Industry Association and Vanrooy.

Agribusiness Australia and Merricks Capital will host an Investment in Ag forum on May 5 at Sydney's Hilton Hotel offering industry experts' thoughts on farm sector markets, opportunities for the sector, funding opportunities and what lies ahead.

Speakers include Mericks head of private capital, Dan O'Donoghue; Elders head of agribusiness investment services, Mark Barber; FTI Consulting's agribusiness head, Ben Waters, and partner with investment firm ROC Partners, Frank Barillaro.

Themes discussed will range from the market maturity of large-scale agricultural assets, the increasing market liquidity and scale opportunities resulting in capital market segmentation, and improving alignment of capital providers with market segments, and better pricing of investment risks.

Victorian-based Cobram Estate Olives has relocated its former general manager for Australian and US olive oil production, Conor Churchin, to the US to be chief operations officer in America.

He takes responsibility for co-ordinating all US operations including farming, milling, bottling and logistics.

Cobram also recently appointed Trenton Gallagher as its US chief financial officer, replacing Michael Gonzales in the US who departed in March.

Mr Gallagher's previous senior finance roles in the US and Canada span the retail and wine sectors, including 10 years with Treasury Wine Estates' American operations.

In February the recently listed Cobram reported a $5.2 million loss in net profit after tax for the first half of 2021-22.

Australia's biggest olive oil business doubled its earnings to $4.8m, although total group sales for the half were down 3 per cent to $70.3m, largely because of a 20pc drop in US sales to $15.9m after problems with bulk Californian olive oil supplies from third-party millers.

The number of US dairy farm herds has fallen from more than 70,300 to just less than 30,000 in the past two decades.

However, total cow numbers in the US remain relatively steady with the national dairy herd growing to 9.45 million head in 2021 and total milk production also rising to 226 billion pounds.

According to the US Department of Agriculture, last year saw the loss of almost 1800 herds, or 6 per cent, although the decline was not as significant as the 9pc and 7pc falls in 2019 and 2020.

Average dairy herd size in the US was 316 head in 2021- up from about 130 19 years ago.

New Mexico has the biggest average milking herd at 2752 head, followed by Arizona, Colorado, and Texas.

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