Sally Rae

Fonterra is renewing contracts for some of its organic dairy farmers, less than two years after slashing the number of supplier farmers throughout the North Island, but the news is not so good for Northland suppliers.

Though the widespread drought has caused milk production to plummet and resulted in a record sheep and beef kill, economists have signalled the net cost to the economy could be ''close to zero'' - thanks to global dairy price increases.

Organisers of a red meat industry meeting in Christchurch tomorrow are seeking a written mandate from farmers, including a possible commitment to a new entity.

Sheep meat exports surged in February and an ''extraordinary'' jump in shipments to China drove that growth.

Widespread drought means Landcorp is unlikely to report an operating profit for the full year, despite recording a $2.5 million profit for the half-year to December.

North Otago's Mitchell and Webster Group has been named supreme winner of the 2013 Otago Ballance farm environment awards.

Addressing challenges in the wool industry needs to start at the farm gate.

The newly formed Meat Industry Excellence Group says its initial focus is on gaining a national mandate from farmers for industry change.