Canterbury Farming, May 2020 by Canterbury Farming

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May 2020 Edition

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Reviewed: New research indicates that dairy cattle produce less emissions than previously calculated.

New research reveals less dairy emissions

DairyNZ has welcomed the news that New Zealand’s greenhouse gas inventory has been updated to reﬂect new science on nitrous oxide emissions, which show that dairy cows and other livestock produce less emissions than previously estimated.

❚ by Kent Caddick New Zealand’s Greenhouse Gas Inventory is the official annual estimate of all human-generated greenhouse gas emissions. The most recent inventory for the period from 1990 to 2018 incorporates new research on livestock emissions on different land gradients. AgResearch and Manaaki Whenua scientists have carried out research for over a decade on livestock emissions. Scientists found that on rolling and steep hill country land, ni-

trous oxide emissions from urine is lower, as a result of factors related to soil composition and topography. Emissions for dairy cattle on ﬂat land were also recalculated to be slightly lower as a result of their research. While the impact of the changes for 2017 is modest – with total dairy cattle emissions being 1.4 percent lower than previously estimated for that year, DairyNZ strategy and investment leader Dr David Burger said the research is important. “We now have more accurate estimations

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of livestock emissions on sloping land,” Burger said. “The current inventory calculations assume almost all dairy cattle are located on ﬂat land, but we know that cows are often grazed on rolling land, particularly when they are young or during winter. “Once we have more data on the proportion of dairy cattle on sloping pastures, we will have a more accurate understanding of emissions which may see dairy nitrous oxide emissions change further. TO PAGE 2

May 2020

CANTERBURY FARMING

FARMING NEWS

Farmers committed to protecting environment for future generations FROM PAGE 1 “As part of the Dairy Tomorrow strategy, dairy farmers have committed to protecting and nurturing the environment for future generations.” Burger said this commitment includes work to lead efforts to meet New Zealand’s climate change goals through identifying and implementing strategies to reduce or offset greenhouse gas emissions on dairy farms. “Under a 2019 partnership agreement between the government and primary sector organisations, all farmers will work to have

Farm Environment Plans by 2025 which set out how good farming practices will help to manage emissions.” Since 2017, the number of milking dairy cows in New Zealand has remained relatively stable (at 4.85 million in 2016-17 and 4.95 million in 2018-19). However, the Greenhouse Gas inventory does show that New Zealand’s emissions have increased by 24% since 1990, with agriculture emissions rising 17.1%. Environmental group Greenpeace is calling on the Government to use its multi-billion

dollar infrastructure and stimulus spending to help address climate change. “The Government’s focus is rightly on the Covid-19 crisis at the moment, but this report is a reminder that the climate crisis isn’t going away,” Greenpeace campaigner Gen Toop said. “Covid-19 has shown us that both people and governments can respond and adapt quickly in a time of crisis. It’s a reminder that we can make big leaps for our health and wellbeing if we choose to. “The Government needs to direct its mul-

ti-billion dollar infrastructure and stimulus funds towards regenerative farming and clean transformative infrastructure like renewable energy and electric transport. “We can reduce emissions at the same time as lifting living standards for all New Zealanders, creating thousands of good green jobs, and accelerating a just transition away from fossil fuels, industrial dairying and other polluting industries,” Toop said. For more information on the agResearch and Manaaki Whenua research visit agresearch.co.nz/news. Golden Bay Dolomite NZ’s most loved magnesium.

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FARMING NEWS

May 2020

Post Covid-19 growth requires investment Federated Farmers say an effective recovery from Covid-19 requires on the ground investment in projects that will bring immediate employment beneﬁts and lasting environmental beneﬁts.

❚ by Kent Caddick Federated Farmers wrote to the Government outlining a range of practical, on the ground initiatives which could provide employment and environmental benefits post Covid-19, and build on existing work. “We need efficient and effective investment which provides both immediate benefits but also lasting environmental outcomes,” Feds environment spokesperson Chris Allen said. “Our approach to improving the environment needs to recognise the importance of a robust and strong recovery from Covid-19, to mitigate the economic and social impacts. “The situation has changed significantly since regulatory proposals in respect to freshwater, biodiversity and climate change were released. Our responses to these challenges need to reﬂect this new reality.” However, Allen said that didn’t mean those in the primary industries sought to do nothing. “We’re already well committed to a path of ongoing environmental improvements. Farmers will continue with their own farm investment in environmental mitigation and enhancement, including investment in better practices, systems and infrastructure. “What’s needed now is investment that will deliver genuine win-wins, delivering better

Altered approach: Federated Farmers environment spokesperson Chris allen says regulatory proposals in respect of freshwater, biodiversity and climate change need to reﬂect a post Covid-19 reality.

environmental outcomes at low cost. “There are existing regulations in place for all of these issues. Our focus needs to be on adding to what is already underway in an effective and focused manner.” Allen said Federated Farmers told Ministers these ‘bang for buck’ measures should start with prioritising areas where we know there are urgent issues, whether they’re in rural or urban areas. “For example, funding to improve urban and commercial sewage discharges, rural and urban water supplies, and stock drinking water in rural areas will achieve environmental outcomes while providing stimulus to the economy,” he said. “Funding for native plantings and biodiversity work such as planting, pest control and fencing is an investment with immediate em-

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catchment groups is another action that will result in immediate benefit. “Developing and supporting a farmer led catchment group will cost in the vicinity of $100,000 per year. That’s a great return for a platform that promotes innovative, focused and practical solutions, and we’re already seeing improved environmental outcomes through farmer engagement in catchment groups.”

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ployment benefits and a long-term payoff for the environment. “With government support a lot more progress could happen now, providing additional work for those needing jobs.” He said the Taskforce Green model used following climatic adverse events may be a useful template to get the work done and train people in new skills at the same time. “Funding and support for existing and new

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May 2020

CANTERBURY FARMING

Damien O’Connor ❚ by Minister for Agriculture, Biosecurity, ❚ Food Safety and Rural Communities ❚

FARMING NEWS

Moving day gets the green light

I was pleased to announce recently that Moving Day will go ahead as planned this year, but with strict controls to help prevent the spread of Covid-19. This annual movement is a critical part of the dairy industry – an industry that contributes over $18 billion dollars a year in exports to our economy and provides jobs for around 46,000 people in our rural communities. It’s also an industry that will play a critical role in New Zealand’s economic recovery after Covid-19, so it was vital that Moving Day went ahead. Since the Alert Level 4 lockdown was announced, and dairy farming was deemed an essential service, the Government has been committed to finding a way to enable it to proceed. The Government has been working with sector leaders from organisations including DairyNZ, Fonterra, Federated Farmers and FMG to find solutions which work for those in the sector and protect the economy without jeopardising anyone’s health and safety. MPI then worked with the Ministry of Health and MBIE and found solutions that allow Moving Day to proceed under any alert level. Activities need to be restricted to just those that are absolutely necessary though,

and any movement around New Zealand must ensure people’s ‘bubbles’ are maintained. Industry groups will be providing further guidance and information to support those dairy farmers who are shifting this season. New Zealand farmers are no strangers to disease eradication programmes with strict movement controls. There were already really strong precautions in place around Moving Day as a result of the Mycoplasma bovis Programme. This gives me confidence that farmers will apply very careful behaviour to Moving Day. I want to thank all of those sector groups and famers across the countr y who have worked together and shared some really solid and innovative thinking about potential solutions which will allow these crucial farm movements to go ahead safely and efficiently.

The details: • Moving Day will go ahead as scheduled, under any alert level.

• Moving Day activities will be restricted to those absolutely necessary to enable the movement of people, and, where relevant, livestock, chattels and farm equipment. This is to make sure dairy farmers and workers have safe and suitable housing and protect the welfare of their animals. • If we are under Alert Level 4, the dairy sector should limit activities to only those that cannot be deferred. • Any movement around New Zealand must ensure people’s “bubbles” are maintained.

• Maintain up-to-date and accurate NAIT and other animal movement records. • Face-to-face contact should be limited and the potential spread of COVID-19 should be reduced using measures such as physical distancing and additional hygiene protocols. • The MPI primary sector risk assessment framework will be extended to primary sector businesses that are deemed nonessential services under current Alert level 4 protocols so they can commence operating immediately (and safely) at alert level 3.

CANTERBURY FARMING May 2020

FARMING NEWS

Industry calls for fair treatment in renewable energy targets The Meat Industry Association says New Zealand’s meat processing sector will need more time if it is to meet proposed targets for renewable energy.

❚ by Kent Caddick Chief Executive of the Meat Industry Association (MIA) Sirma Karapeeva said the vast cost of converting coal-fired boilers to alternative heating by the proposed deadline of 2030 would place huge pressure on an industry that is already facing significant headwinds. “If the proposals go ahead in their current form, the sector would not be able to absorb the estimated $80 million capital cost of converting to direct electric, heat pump or biomass options in such a short time frame,” Karapeeva said. The MIA outlined the challenges facing the sector in its submission on the Government’s discussion document on Accelerating Renewable Energy and Energy Efficiency. “Many of the proposals are inherently unfair, will potentially damage New Zealand’s largest manufacturing sector and be counterproductive to the Government’s own emis-

sion-reduction goals,” Karapeeva said. “While we support the Government’s ambition to reduce New Zealand’s emissions, any approach must be applied fairly. “Food processors with low-temperature boilers are being asked to stop using coal within 10 years while the rest of the economy gets 30 years to move from fossil fuels, and even then their carbon emissions can be offset. “Natural gas is not available in the South Island where there are a large number of processing operations. A total coal ban would incur very significant costs in the industry. “A phase-out of all low temperature coalfired boilers by 2030 would be extremely challenging and the rapid timeframe may prevent the adoption of the best long term solutions. “The purpose of the policy is to reduce emissions, rather than a complete ban. “In their current form, the proposals are an unnecessarily blunt instrument that may

Under pressure: Chief Executive of the Meat Industry Association Sirma Karapeeva says converting coal-fired boilers to alternative heating by the proposed 2030 deadline will place huge pressure on the industry.

have perverse consequences. Our recommendation is that the ban is on all coal-fired boilers where the emissions are not significantly reduced.” Karapeeva said in general the MIA supports policies to achieve gross reductions on CO2 emissions, but the policies should be

based on robust economic analysis. “Given that meat processors are being asked to phase down all low-temperature coal-fired boilers by 2030, and do more than other parts of the economy, then it would be only right that processors are treated fairly in making this challenging transition.”

Government must see sense on Freshwater reforms In a few short weeks, the world we live in has been irrevocably changed by the devastating impacts of the global pandemic.

Todd Muller ❚ by National Party Spokesperson for ❚ Agriculture, ❚ and ForestryBiosecurity, Food Safety ❚ Life as we knew it seems a distant memory as we go about our daily lives and adapt to what may be our ‘new normal’ – at least for the foreseeable future. A farmer put it to me that New Zealand is like a punch drunk prized fighter taking enormous blows to the body, and it remains to be seen whether we can stay standing. Treasury puts it more esoterically, unemployment heading for numbers not seen in generations. Common sense would tell you that now is not the time for heavy-handed and overzealous regulation that will put needless drag on our economy, yet the Government is still planning on implementing David Parker’s Essential Freshwater reforms in their current form. With a total cost estimated by independent economists of $80 billion over the next thirty years - or over $38,000 for every household in the country – it is the antithesis of everything else the Government is try-

ing to achieve as they look to borrow over $25 billion in a desperate attempt to jump start our sputtering economy. Implementing such a financially devastating policy made no sense when it was dropped on an unsuspecting rural sector in September and tips into policy lunacy when viewed through the lens of a post-Covid world. To continue with this policy in its current form would not only demonstrate a true disdain for our hardworking farmers, growers and rural communities, but an ideological blind spot that middle New Zealand has no appetite for in the current financial climate. I am not suggesting the sector gets a free pass on water quality improvement. The previous Government promulgated a NPS for Freshwater just three short years ago. That should continue to guide the local government sector’s response and the various plan changes already underway given time to bed in. Most Kiwis expect to see action on water, but we want to see balanced, fair, and sensible policies that are based on robust evidence and are anchored in community engagement and collaboration. One such alternative would be to ditch

the highly controversial DIN number of 1, which lacks any real scientific rigour and has a poor relationship with ecosystem health, in favour of an alternative approach such as strengthening our existing stand-

ards for nitrogen toxicity. This would lead to similar environmental outcomes but bring with it significantly less economic pain in terms of reductions in GDP and jobs.

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May 2020 CANTERBURY FARMING

andrew Wyllie ❚ with ❚ Forsyth Barr

RURAL PROFESSIONALS

Pandemic infects the global economy

Covid-19 has undoubtedly been the most dramatic “black swan” or unexpected shock since the 9/11 terrorist attack.

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The threat has rapidly shifted from an outbreak in China, where the principal economic concern was the impact of Chinese manufacturer shutdowns on the rest of the world, to a global pandemic. During March the shock to markets was compounded by the collapse in oil prices, with crude oil falling 67% to US$20/barrel. Governments around the world have responded. In many countries all but non-essential businesses have been closed. Most people were subject to ‘stay at home’ orders. The economic and financial landscape has seen a dramatic shift. Interest rates have plunged, and many global equity markets have entered a bear market (falling more than -20%). Policies to protect jobs and businesses have been enacted, but they still won’t prevent sizeable layoffs. The outlook for corporate earnings is highly uncertain. Many companies have suspended earnings guidance, with little clarity over the medium-term. In the days and weeks ahead, news reports will show extreme impacts on economies. Economic activity will fall sharply for at least the first two quarters of the year. Unemployment will soar to double digit levels.

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Policymakers have responded

Aggressive responses by central banks and governments around the world shored-up financial markets late in the quarter. Central banks have cut interest rates, provided liquidity to the banking system so banks can continue to lend to businesses, and have started (or continued) buying bonds to help stabilise credit markets. Governments have provided a range of support measures including wage subsidies to workers forced to stay at home, loans for banks to encourage financial support for businesses, mortgage holidays, and some tax relief. Looking forward, a number of governments are already planning to accelerate and expand investment in infrastructure as a key policy platform to help the economic recovery.

Companies will shore-up balance sheets A core role of financial markets is to provide capital to businesses when required. For many, now is one of those times. Many companies that will be healthy sustainable businesses over the longterm, are facing financial distress in the short-term. Some will seek to raise equity to help navigate through this period. This is appropriate. We have already seen equity raisings from Kathmandu in New Zealand, and Cochlear and NextDC in Australia. There will be more.

What should we watch for? The normal things that move markets don’t matter much at the moment. We already know COVID-19 is going to severely impact economies and

many companies. A global recession for the first half of the year is now priced into equity markets. The questions now for markets are how long it lasts, how much economic damage is done, and how sharp the recovery will be.

Stick to an investment plan At the time of writing (3 April 2020), market volatility is settling. The indiscriminate selling from earlier in March looks to have largely run its course. No one can tell you for certain whether the market bottom is behind us, or ahead of us. What we do know for sure however, is that a pandemic will ultimately pass. Today we’re in the 11th bear market (a 20% or greater decline in equity prices) since 1950. On each of these occasions the risk of remaining in the market seemed immense. On every occasion mankind and the economy has proved resilient. In times of crisis, the risk for an investor is inevitably that the pressure of a market downturn becomes too great. Some sell, crystallising the fall in asset prices, and in doing so exclude themselves from the recovery once the crisis is shown to be under control. Having and sticking to an investment plan with clear objectives is the best measure to counter this human instinct. This report covers three months ended March 31.

If you’re new to investing please see Forsyth Barr’s Introduction to Investing guide available at www.forsythbarr.co.nz/investing-with-us/new-to-investing or to discuss your investment options please contact andrew Wyllie, an authorised Financial adviser with Forsyth Barr in Christchurch. He can be contacted regarding portfolio management, fixed interest, or share investments on 0800 367 227 or andrew.wyllie@forsythbarr.co.nz. This column is general in nature and should not be regarded as personalised investment advice. Disclosure Statements are available for Forsyth Barr authorised Financial advisers on request and free of charge.

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Bessie Paterson LLB ❚ with ❚ Ronald W Angland & Son The time lapse between the Act’s passage into law and coming into force was to give those who have trusts time to review their trusts and for the trustees and settlors to familiarise themselves with the changes in the law relating to trusts. The new Act supersedes the Trustee Act 1956 and the Perpetuities Act 1964. Both acts are quite out of date and not altogether suitable to the 21st century. The Perpetuities Act protected against “remoteness of vesting” of a trust and was certainly a curly piece of legislation to interpret. It is hoped that the new Act will make trust law more accessible and clarify and simplify trust principles and the obligations of trustees. The main reason for the recommendation that everyone who has a trust should undertake a review of the trust is that much of the new law introduces new obligations and terminology which were not encompassed in the former legislation. Last year we looked brieﬂy at the new statutory obligations in respect to trustees and the rights of beneficiaries to information about the trust which

May 2020

Reviews of trusts

The Trusts Act 2019 was passed into law last year and comes into force at the end of January 2021.

must be provided to a beneficiary if they should ask. There are many more examples of new concepts to take on board. A review of a trust also gives the settlors and trustees an opportunity to see whether the trust deed is fit for its purpose and suitable for the obligations imposed by the new law. Some trustees who have been asked to be a trustee are reluctant to take an active role in the running and administration of the trust. Those days are over and all of the trustees must be involved in those matters and they must also keep proper accounts. So, if someone asks you to be a trustee of their trust, think about it carefully as it is no longer a privilege or compliment to be asked to be involved in someone else’s trust especially where there is conﬂict among headstrong family members. Over the years the language used in legal documents has changed considerably. Trust deeds and many Wills were some of the most difficult documents to read due to long convoluted sentences and paragraphs using archaic language which few could understand. Modern language should be clear

‘

If someone asks you to be a trustee of their trust, think about it carefully.

and easily understood by most of us. Some years ago it was the custom for older people to set up a trust to protect their assets being depleted in the event that they needed rest home care in their old age. A review of these trusts would be timely. When we are released from this enforced lockdown we recommend you give some thought to reviewing your Trust. This article has been prepared by Bessie Paterson, a Partner at Ronald W angland & Son, Lawyers, 2 Chapman Street, Leeston.

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May 2020

CANTERBURY FARMING

❚ with Rob Cope-Williams

Live exports During my 40 something years of reporting and commenting on things agricultural, there has been an emotive subject that has ﬂared and died on a regular cycle. Live sheep exports in the 1980s lead news bulletins days when I was working for Radio New Zealand as their rural chap in Timaru. We had the wharf staff refusing to load sheep and clashing with farmers in the Port as well as on the streets of Timaru. For the farmers who were suffering from years of drought the chance to ofﬂoad stock was a light at the end of a very dusty tunnel, for the other camp it was a case of saving the sheep from a death by a method that wasn’t humane The shipments did go ahead but the rumblings went on for a long time. Since then there has been a lot of stock leaving our shores on animal cruise ships heading, as I once wrote, to a life of sex and endless summers in countries such as Mexico and others in South America. Other breeding stock have settled into European countries as prized breeding stock with little fuss or bother, but every now and again there’s a shipment that catches the eyes of the animal rights people and again the media are called in to

make the general population aware of the cruelty that is imagined to be on board. A major export through Timaru a couple of years ago was subject to such a spotlight. I covered the story for my TV programme, obviously with a positive stance, and waited for the protestors to arrive and boycott the loading. I think there were several thousand sheep and some dairy cattle destined for Mexico. Two protestors showed up and were taken on board and shown the accommodation for the stock that ensured they had a constant supply of feed and water and lots of room to move around. If I remember rightly, the animal rights people were quoting an expected death rate well into double figures percent wise, the reality was less than one percent. I note that the latest shipment of cattle to China involving more than 8,300 animals the death rate was 0.04 percent. My point is that the general population only get to hear about the bad things and not the great things that our industry is doing.

❚ with John arts

Can my joints improve? (Part 1) I have been working with someone who has had problems with his knees. He had damaged one knee some time ago. In more recent times his ‘good’ knee had started to deteriorate from osteoarthritis. Eventually his ‘good’ knee became worse than the knee damaged in an accident. I contacted him this month and in his own words he thought the results were amazing. He has much less pain and is more mobile. He has come from a position where working was becoming increasingly difficult to now being more confident about the future. There are several lessons we can learn from this. The first is that our bodies have an extraordinary ability to heal. However, this healing is dependent on the smooth operation of the healing systems. In many cases healing is restricted because the body system that is designed to heal the damage is somehow faulty or has just stopped functioning. The outcome of this is always disease. In this case we made a number of changes. The first is to try and identify foods that either cause inﬂammation or in some way restrict healing. Two of the

most important groups of nutrients are fats, because they govern the inﬂammatory pathways and antioxidants because they protect our cells from damage. We can also cheat a bit. Actually we can cheat a lot. I see effective joint health supplements as the ultimate cheat. We can target very specific compounds that have a direct therapeutic function in the body. For example, with joints, we can add therapeutic levels of Chondroitin Sulphate to greatly impact the health and stability of cartilage. Adding significant amounts of Curcumin, the active ingredient in turmeric can reduce inﬂammation and swelling in the joint capsule. Next edition we continue this discussion and look at the second lesson we can learn. John arts (B.Soc.Sci, Dip Tch, adv.Dip.Nut.Med) is a nutritional medicine practitioner and founder of abundant Health Ltd. For questions or advice contact John on 0800 423559 or email john@ abundant.co.nz. Join his all new newsletter at www.abundant.co.nz.

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CANTERBURY FARMING

FARMING NEWS

May 2020

Nature is essential infrastructure Thank you for the collective efforts we’ve made together in the ﬁght against Covid-19. I realise for many farmers and growers it will be as busy a time as ever, keeping New Zealand and parts of the world fed while coping with lack of rain and ongoing drought.

Eugenie Sage ❚ by Party spokesperson ❚ Green ❚ for Primary Industries

For others, times will be challenging with changing export markets and restrictions on the way contractors and local businesses are able to operate. As our Covid-19 Alert Levels change and Government increases its focus on the economic response, the Green Party has put on the table proposals for substantial investment in more nature-based jobs to help re-start our economy and provide meaningful jobs in regions and rural communities. An economic response fit for the long term

challenges we face as a nation means investing in nature as New Zealand’s essential infrastructure. This will make sure generations now and in the future have healthy streams and rivers. It ensures native birds and wildlife are thriving, and wetlands and bush are regenerated. An investment of this scale would see a major increase in efforts to turn around water pollution through fencing and planting beside streams, restoring wetlands, and coastal margins; tackling wilding conifers and other plant and weed pests. Investing in nature-based jobs can see mean-

ingful jobs created more quickly than spending on big infrastructure like new motorways. Most of the funding will go directly to employing people – the tools needed for wetland restoration such as spades and seedlings are far cheaper than big excavators and asphalt. This investment creates thriving native forests and wetlands, assets that last centuries and suck carbon out of the atmosphere. It will avoid future pest control costs, better buffer coastal areas from sea level rise and provide corridors for birds to come back to neighbourhoods.

Primary sector key to pandemic recovery The world we thought we knew and understood has changed into something frightening and unpredictable at astonishing speed.

Jenny Hughey ❚ by Chair, ❚ Environment Canterbury Just two months ago, the coronavirus and Covid-19 were, for much of the world, still a looming threat. Now more than 100,000 people around the globe have died. In the past month, our own country has been battling against the virus, with most of us following the advice of experts and taking part in an unprecedented nationwide lockdown. This has had a massive impact on the way we live and work, on our families and friends, our communities, our businesses and our ability to socialise. So what have we at Environment Canterbury been doing during the level-four lockdown? As well as looking after our people and supporting them in working from home, we

have been carrying on providing essential services across the region, including flood response and flood protection work, remote air-quality and water quality monitoring, compliance monitoring, and Civil Defence-Emergency Management work. We have introduced more flexible rules around self-monitoring of consents during lockdown, appreciating it may be extremely difficult to achieve total compliance in some circumstances due to Covid-19 restrictions. The people of our region have dealt with crises in recent years and have learnt many lessons in how to respond to, and recover from, those. While the ‘resilient’ tag has become somewhat wearisome in the past decade, Cantabrians know that events like this do actually happen to us and not always to someone somewhere else. Most of us can remember

the despair and shock we felt after the 22 February 2011 earthquake and the horrific terrorist shootings at the Al Noor Mosque and the Linwood Islamic Centre on 15 March last year. New Zealand has been fortunate in having strong and decisive leadership from the Government, making it clear what we all must do at this time. Our isolation towards the bottom of the South Pacific has also been of huge benefit. The repercussions of this pandemic will not magically bypass New Zealand. But, compared with many other countries experiencing the most horrendous time, we will hopefully avoid the worst of it, with continued vigilance and caution. The Covid-19 crisis is going to affect the way Cantabrians live and work for years. But the changes that come out of this pandemic

are going to provide all sorts of opportunities to rethink what we do and set new priorities. While some may consider it more important to focus on the environment than the economy, and others vice versa, we need to have a strong economy to support effective environmental protection programmes. At this difficult time I’d like to acknowledge the farmers across Canterbury, the key role they are playing and that they will continue to play in what is likely to be a long, slow recovery. The pandemic has highlighted that the backbone of the Canterbury economy is our farming sector. During the next couple of years, given the huge hit tourism has sustained, it is largely going to be the primary sector which boosts the region economically. Please email me at Councillor.Hughey@ecan.govt.nz

VOTE FOR YOUR FUTURE All dairy farmers are urged to have their say in the milksolids levy vote now underway. DairyNZ represents all New Zealand dairy farmers. The levy is invested in practical on-farm tools, research, resources, support and advocacy to ensure farmers can respond to change and access opportunities.

VOTE ONLINE OR BY POST BY 30 MAY

This is an important vote and every vote counts.

VOTING

IS NOW OPEN

17 APRIL - 30 MAY 2020

YOUR LEVY , YOUR FUTURE

Keep an eye out for your voting pack in the mail. For more information on where your levy goes, visit dairynz.co.nz/vote

YOUR LEVY, YOUR FUTURE

May 2020

CANTERBURY FARMING

May 2020

Grant Edmundson ❚ with Partner, Helmore Stewart, Rangiora ❚

Staff employment agreements post Covid-19 lockdown The Covid-19 pandemic has forced many employers to be nimble in dealing with their staff and employment related issues. As the country moves through various stages of lockdown and with contemporaneous government dispensations being provided in terms of financial support, many employers have battled to keep pace with the ﬂux of employment related issues, none more so than structural changes to the employment contracts with staff relating to leave, payment packages, and so on. Scaling and restructuring the business to meet reduced demand (particularly in respect of non-essential services and/or products) has forced businesses to move quickly with decisions often being made “on the ﬂy”. Currently, employers and employees have shown remarkable levels of co-operation, constructive engagement and a mutual appreciation that “we are all in this together”. However, as the various stages of lockdown are removed by Government, employers will be anxious to return to business as

‘

Changes to the employer/ employee relationship arising from the Covid-19 pandemic will be forgotten in the rush to get back into business.

quickly as possible and make up lost ground with their business.

During this phase, it is likely that the changes to the employer/employee relationship arising from the Covid-19 pandemic will be forgotten in the rush to get back into business. This may result in disputes occurring where there is a disagreement between the employer and the employee relative to variations to the employee’s Employment Agreement during the various lockdown phases. To avoid these pitfalls, it is essential that the employer prepare an accurate summary of statutory benefits, leave history and changes to remuneration which took place during the Covid-19 pandemic. The employer should then discuss this summary with the employee to ensure that both parties are in agreement with the variations that took place and to this extent, the employer should recommend the employee take independent legal advice, be provided with ample time to consider the summary

and if necessary, provide further documentation or information to ensure that the employee is in a position to confirm that the summary is accurate and comprehensive. This summary should then be incorporated into the employment agreement and counter-signed by both parties so that moving forward, there is no uncertainty or ambiguity in regards to the variations that took place in respect of the employment agreement. These housekeeping issues should be done for all staff members, irrespective of their status so that uniformity is achieved and so that no component of the workforce is treated differently. The employer should take all reasonable steps necessary to ensure that the history of the undertakings and responsibilities of both parties are accurately recorded to ensure the continued smooth operation of the business and to enhance employment relations.

May 2020

CANTERBURY FARMING

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Moving Day can hit the road Moving Day, or Moving Week as it will likely be, has been given the greenlight by the Government with a lowering of the national alert level surrounding the Covid-19 outbreak.

❚ by Kent Caddick Following the national Covid-19 lockdown, a Moving Day Working Group, which included DairyNZ, Federated Farmers, Fonterra and FMG, was formed to identify solutions for the safe movement of people, livestock, machinery and goods when the new dairy season begins on June 1, while still dealing with the coronavirus pandemic. The groups urged the Government to provide guidance for dairy farmers nationwide. “We are pleased the certainty we sought has been provided and dairy farmers now have reassurance they can move to new farms for the new dairy season in a way that also keeps them and the public as safe as possible,” DairyNZ chief executive, Dr Tim Mackle, said. “Now we have clarity, we will be supporting dairy farmers with the detail to ensure their moves are safe and undertaken within the guidelines, particularly staying within their ‘bubbles’. “Being able to move will reduce concerns around animal welfare, farmer wellbeing and

‘

annual movement is a critical part of the dairy industry. Damien O’Connor Agriculture Minister

economic impacts which had potential to arise from any delay to Moving Day,” Mackle said. Each year thousands of dairy farmers, sharemilkers, contract milkers and employees move to new farms to commence new employment, and contract milking or sharemilking contracts. Even without Covid-19 restrictions this is a huge logistical exercise, often spanning many days to get animals, gear and people relocated in a safe and secure manner. Federated Farmers national dairy chair,

Chris Lewis, said Moving Week is a key part of the life of the dairy sector. “This is how we enable people to progress their careers and their businesses. It might sound strange to our friends living in the city, that we all move our families and stock around at the same time, but it’s actually a tightly planned and executed operation. We are confident we will be able to do this in a way that maintains health and safety protocols,” Lewis said. “And it must happen now, because we are all linked in together to follow the seasonal nature of farming, Mother Nature waits for noone and in July we have new calves coming.” Agriculture Minister Damien O’Connor said the annual movement is a critical part of the dairy industry. “The industry contributes over $18 billion dollars a year in exports to our economy and provides jobs for around 46,000 people in our rural communities,” O’Connor said. “It’s also an industry that will play a critical role in New Zealand’s economic recovery after Covid-19, so it was vital that Moving Day went ahead.

“Since the Alert Level 4 lockdown was announced, and dairy farming was deemed an essential service, the Government has been committed to finding a way to enable it to proceed.” O’Connor said the Government had been working with industry leaders to find solutions which work for those in the sector and protect the economy without jeopardising anyone’s health and safety. “MPI then worked with the Ministry of Health and MBIE and found solutions that allow Moving Day to proceed under any alert level. “Activities need to be restricted to just those that are absolutely necessary though, and any movement around New Zealand must ensure people’s ‘bubbles’ are maintained.” Guidelines for farmers to ensure human safety and animal welfare needs are met will be available from DairyNZ and Federated Farmers. For more information, visit www.dairynz.co.nz/covid19 and www.federatedfarmers.org.nz.

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CANTERBURY FARMING

May 2020

Cows on the move for Gypsy Week Hundreds of cows will be on the move for the start of the new dairy season, also known as Gypsy Week or Moving Week.

Gypsy Week marks the changeover of the dairy seasons when farms change ownership and families move entire households, farm equipment and cattle to a new property. Cows can be moved around Gypsy Day or from May to July as they are moved on to winter feed. Care should be taken when driving on rural roads in Canterbury and the West Coast over winter as many cows will be moving between farms if it’s a short distance, or shifted in trucks if they need to travel further. Motorists also need to be patient. When approaching a mob of animals being moved on the road, motorists need to slow down and assess whether they can wait for the mob to reach their destination, or quietly move through the mob if it is safe to do so. Drivers should not sound the car’s horn as it may cause the animals to panic and behave unpredictably. Farmers who are droving their stock will need consent from the New Zealand Transport Agency to move cattle along State Highways, and council consent for roads with a 70kmh speed limit and other high volume roads. It is highly recommended that drovers wear high visibility garments to ensure they are clearly visible from 150metres. They should use ﬂashing lights and temporary warning signs. Gypsy Week tips for farmers: Plan ahead – choose the most direct route to move cattle and only cross or follow the road if it is necessary. Move stock in the day

Warning: Thousands of cows across Canterbury will be on the move for Gypsy Week.

time and avoid peak driving times. Keep the stock off well maintained verges. If you need consent from the council for the move, apply for one at least two working days in advance.

Be particularly cautious when moving stock on roads with bends. Signs or a pilot vehicle will be needed around the corner to warn motorists of the

stock ahead to avoid a crash. If moving machinery drive slowly and, if necessary, have a pilot vehicle to warn other drivers of the wide vehicle following.

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May 2020

CANTERBURY FARMING

SUPPLEMENTARY FEED

When there is enough pasture, pasture is enough In most pasture based farm systems supplementary feed should only be used to ﬁll feed deﬁcits so that cows maintain energy intake and production.

❚ Article supplied by DairyNZ

There is no advantage to replacing good quality pasture with an alternative feed source or ‘balancing pasture’, therefore, supplements should only be used to provide energy when there is insufficient pasture available. There is no evidence that supplementing pasture improves mating performance when there is sufficient pasture supply. If feeding supplements results in high grazing residuals, this is wasted feed and the reductions in future pasture growth and quality should be considered.

Optimal growth: When supplements are required they can help to optimise the area grazed each day, the rotation length, and the pasture residual.

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When supplements are required in a deficit situation they can help to optimise the area grazed each day, the rotation length, and the pasture residual. The profitability of feeding supplements varies depending on the situation. • The cost of the supplement. • Wastage in storage and method of feeding out. • The associated costs of supplementthese costs associated with feeding supplement can be 50% more than the cost of purchasing the feed, associated costs include capital, fuel/energy, labour, repairs and maintenance and depreciation. • The degree of pasture substitution, which governs the response rate to supplement. Supplement is more likely to be profitable where post grazing residuals are consistently under 1500kgDM/ha (78 clicks on RPM) without the supplement and do not exceed 1,500kgDM/ha with supplement. If feeding supplements results in high grazing residuals, this represents wasted feed. It will reduce the immediate profitability of feeding and

have ongoing effects through reductions in future pasture growth and quality which must be considered.

Autumn and winter supplement for BCS Feeding supplement in autumn to milking cows is of limited use for achieving calving body condition score (BCS) targets unless cows were to lose BCS if not supplemented (for example insufficient pasture). Cows selected for high milk production preferentially partition nutrients to milk production and not BCS gain. The fastest way to achieve BCS gains is to dry cows off. The timing of dry off depends on your system, BCS gain required and length of the dry period. If infrastructure exists to achieve high supplement utilisation when feeding dry cows during the winter, this can be a strategy to maximise lactation length while achieving BCS targets. The viability of this strategy depends on supplement cost (incl. associated cost), BCS gain required and time available for BCS gain.

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CANTERBURY FARMING

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May 2020 CANTERBURY FARMING

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CANTERBURY FARMING

May 2020

Telford facility gets an upgrade It’s been a busy time for Telford Campus under the leadership of Southern Institute of Technology (SIT), since they took over the operation of the South Otago rural training facility in 2019. supplied by ❚ Article ❚ Southern Institute of Technology There has been an instigation of essential projects to keep the campus up-to-date, running smoothly, and to successfully continue the delivery of quality education for all students whether locally on-campus, or from further afield using distance learning options. With the provision of $1.8 million from the Government last year, overall, SIT has invested more than $1.9 million and undertaken priority work such as deferred maintenance, IT infrastructure, and technology development. Further funding from the Government has allowed continued investment into the campus with ongoing infrastructure upgrades, ensuring Telford is capable of providing contemporary education to each new intake of students. Telford’s core rural programmes remain the same, with some useful additions to broaden the range of what’s on offer:

Diploma • Massey Diploma in Agriculture (Level 5) This Diploma gives 45 credits towards the Massey Bachelor of Agribusiness

Certiﬁcates • New Zealand Certificate in Animal Technology (Level 5) Rural Animal Technician

• Farming Systems and Equipment (Level 3) (Dairy, Sheep and Beef) • New Zealand Certificate in Apiculture • Sporthorse Care and Equipment (Level 3) • Certificate in Wool Technology For education and training in diverse, hands-on fields, both Apiculture and Wool Technology programmes have been revived. The Certificate in Wool Technology has been redeveloped to meet increasing demand. And with the recently enforced period of quarantine at home for most New Zealanders, there’s never been a more opportune time to consider distance learning options through Telford. Recent Certificate in Wool Technology graduate Olivia McCorkindale, commented on the tremendous amount of information she learnt about the wool industry during her studies. Distance learning was also no barrier to Olivia’s achievements, with the support of easily accessible tutors. “My tutor Laurie Boniface, as well as the Telford-based staff who ran my course, were outstanding. They were always willing to help no matter how big or small the query,” Olivia said. The future is bright for Telford with investment, new programmes and forward-thinking guidance. SIT’s positive, confident approach is expected to produce growth, reﬂected in both the diversity and uptake of programmes. Looking ahead, SIT is currently working on accreditation and hoping to offer the Bach-

elor of Applied Management (Agribusiness Management) at the Telford Campus. Whilst this work has currently been disrupted by Covid-19, keep an eye out for further developments. For those who see themselves as practical, enjoy a hands-on approach to learning and love the outdoors, a course at Telford

could be an ideal doorway leading to a wide range of career choices. For further information on any courses, please go to www.sit.ac.nz/Telford or phone 0800 835 367. Telford students are also eligible to apply for SIT’s innovative Zero Fees Scheme. For full details, please go to the SIT website.

Upgrade: The future is bright for Telford students with investment, new programmes and forwardthinking guidance adding to the South Otago rural training facility.

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May 2020

CANTERBURY FARMING

Taking advantage St Bede’s College of nature’s offering Where boarding is a tradition It’s often said that ‘a busy boarder is a happy boarder’.

❚ Article supplied by Garin College

At the heart of the beautiful Nelson and Tasman Bay region, Garin College’s hostels offer boarders a really great place to be busy. With our wonderful beaches, safe rivers, world class walking and cycle tracks, even the chance to get to a ski-field, once in a while, our region offers a range of sporting, recreational and co-curricular opportunities which are second to none. Our twin hostels, Mother Teresa and Francis Douglas House, are modern, vibrant, stimulating places offering students the chance to meet in a spirit of friendship and discovery. As the region’s only co-educational

Catholic secondary school, Garin College has a history and reputation of which it can be justifiably proud. Founded in 2002, we have grown steadily as a school sustained by Gospel values, living out our motto of ‘Faith and Wisdom’. Often recognised for strengths in music and the arts, Garin’s students also have an enviable track record of sporting achievements, as well as excellent academic results curriculum-wide. In this context, we hold our own with the best, but it’s a sense of ‘special character’, of learning occurring within a faith community, which makes Garin and its students really stand out. Our teaching is never dogmatic. Instead, we see our students as individual learners, discovering their God given potential for generosity, aroha, rangimarie, integrity and new life the Garin values.

Outdoors: Garin College boarders have the opportunity to explore some of the country’s great outdoors, including spending Waitangi Day at Lake Rotoiti.

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St Bede’s is a Catholic College for boys founded by the Society of Mary in 1911 and is the only Catholic boarding school for boys in the South Island. Catholic, Marist and Bedean principles and values form the basis of a holistic education at the College. We aim not to make the College great but to ensure every boy has the opportunity to be great, and we endeavour to develop young men of Catholic hearts and minds through the experiences the boys have in their time here at the College. St Bede’s is a college for all, a place where gospel values are practised to help form principled men; a learning environment where everyone achieves; a place that teachers want to come to because of the strength of the community; a place also, where boys can embrace spiritual, sporting, cultural and community activities, which all combined shape boys into men. That’s the priority and that is in our DNA. Boarding at St Bede’s College is a tradition that goes back to the 1920s. Our rich history and tradition provides an excellent foundation to embrace the challenges of the modern era and prepare our boys to be Catholic leaders wherever life takes them. Like many other organisations in

Christchurch, our campus has been broken and tested. The demolition of the Chapel seriously challenged us. It was the single most important building at St Bede’s College, and had symbolised the heart and soul of the College ever since the third Rector, Father Gilbert, converted it from the gymnasium in 1929. In the last two years, the College has completed a $16m building project; stage two of the Gymnasium, a new Food Technology and Art Block, a renovated Performing Arts Centre and significantly, the new Chapel of St Bede, which have greatly enhanced the campus facilities. Boarders at St Bede’s College benefit from these and other facilities on site, and a self-development programme involving a number of different activities where boys are given opportunities to learn a variety of skills, are offered in the evenings as well as study. Preference and non-preference applications are available and personalised tours of the Boarding School and the College can take place on request. We look forward to introducing you to the St Bede’s College boarding hostel.

DAIRY

CANTERBURY FARMING May 2020

Dairy farmers have until end of May to cast milksolids levy vote Dairy farmers are being encouraged to have their say in the milksolids levy vote 2020, which is open for voting until 30 May.

❚ by Kent Caddick It is a one-in-six year vote for industry organisation, DairyNZ. DairyNZ chair Jim van der Poel said the milksolids levy funds industry good activities through DairyNZ which delivers dairy sector research, development, advocacy and expertise. “The milksolids levy has been part of New Zealand dairy farming for 17 years. Its roots are in funding work that enables farmers to continue thriving in an ever-changing world. With the challenges of COVID-19, the changing nature of farming has never been more real,” Van der Poel said. “I encourage farmers to vote and ensure their dairy farm neighbours and friends have their say too. DairyNZ is a farmer-owned organisation – it’s important we receive their vote to continue supporting our farmers through science, research and advocacy.” All levy payers – farm owners, sharemilkers and leaseholders – can place a simple ‘yes’ or ‘no’ vote until 5pm, 30 May. The current levy order expires in November and is required by Government legislation, through the Commodity Levies Act 1990. Levy paying farmers contribute 3.6c per kilogram of milksolids (kgMS) produced. “DairyNZ represents dairy farmers and helps deliver a better future for them and all New Zealanders, through a thriving dairy sector,” Van der Poel said. “If there is a yes vote, farmers will continue to receive all the benefits of DairyNZ and we will continue to support the delivery

of the Dairy Tomorrow strategy, which is the sector’s blueprint for the future. “I believe in an organisation that exists to work exclusively for dairy farmers. Not many sectors have an industry-good organisation like ours. DairyNZ has helped us achieve real success as a sector and it’s a real strength for our future.” Dairy Tomorrow guides DairyNZ’s investments and was developed by partners representing the dairy sector – DairyNZ, Dairy Women’s Network, Federated Farmers and Dairy Companies Association of New Zealand. Through the milksolids levy, DairyNZ invests in farm systems, research and development, environmental protection, animal care, biosecurity, building great dairy workplaces, industry sponsorships and supporting vibrant communities. DairyNZ’s investment in TBfree’s national bovine tuberculosis (TB) control programme is the single largest investment from the milksolids levy. The milksolids levy vote is open until May 30. Voting packs have been posted to all eligible levy paying dairy farmers, including sharemilkers and dairy farm leaseholders, who produce milk from cows and supplied a dairy processor in the 2019/20 season. Farmers can vote via www.dairynz.co.nz or post until May 30. With some uncertainty around mail delivery during Covid-19, farmers are encouraged to vote early. For more information, visit dairynz.co.nz/vote or call DairyNZ ph 0800 4 324 7969.

May 2020

CANTERBURY FARMING

DAIRY

Trimming an injured claw

A farmer once commented he didn’t want to get his cows’ feet trimmed in wet weather as opening up a wound would create more problems. This is an interesting comment, and I can appreciate his train of thought. Opening a wound exposes it to bacteria which would increase the risk of infection, especially in wet conditions. But even though an exposed corium is

running the risk of getting infected, not opening a wound would increase that risk even further. A lame hoof that has a hole needs to be treated. The principle is that the corium needs to be exposed and the weight taken off the damaged claw, that is the key of good hoof trimming. If the wound is not opened up properly, it doesn’t mean that the bacteria are not at the corium. If anything, the bacteria are trapped in the wound and are more likely to go through the corium creating an infection. Opening it up and letting the air get to it will take a lot of the infection pressure away and allow the wound to heal up much faster. Using a bandage is not advisable as often the bandage is not taken off in good

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time. When the bandage is eventually removed, you can smell a rotting. That smell should be a strong indication that it is not helpful to use bandages. However, letting the air get to the wound is not enough. The weight needs to be taken off the wound. This sounds very logical, however very few people actually know how to accomplish this through trimming. This is where most people turn to the claw block as a fix. There is nothing wrong with using claw blocks. In many cases using a block is crucial to the healing of the cow, but if the claw is not trimmed properly it will still have a negative effect. The claw blocks can also sometimes come off prematurely. If the claw is not trimmed properly, the wounded claw is going to carry too much weight again. So, how do you trim a cow properly? The principle is the same as putting a claw block on the healthy claw, but instead of making the healthy claw higher, you need to make the lame claw lower.

You can do this by lowering the sole of the damaged claw on the back two thirds of the hoof (leaving the toe alone). Lowering this area can sometimes create as much height difference as using a block. Another advantage is that it is easier to see if the under-run has been eliminated properly and it is much less likely for a hard ridge in the hoof to pinch the wound. This sounds reasonably easy, but many people fail to do this accurately. Often, someone can explain to me the principles of proper trimming, but this doesn’t always translate to correctly applied knowledge in the trimming process. Hoof trimming is a much more specialised job than most people realise, and it takes practice and good instruction to become skilled in it. If you are keen to get better at trimming or want to gain a better understanding of hoofcare, why not contact us and book yourself in on one of our hoof trimming courses. I can guarantee you that it will be worth your while. Dairy Hoofcare Institute (DHI) 03 662 8015

CANTERBURY FARMING

DAIRY

May 2020

Why take the risk? ❚ with Peter Burton

Hands up if you’ve recently read the health warnings on a bag of magnesium oxide. It’s widely used for dusting of pastures to help prevent calcium/magnesium related metabolic disorders.

From now until October the sight of quad bikes with small spreaders whizzing around paddocks in front of white clouds is common. I know that either the warning on the bags hasn’t been read or has been ignored because most of the drivers are not wearing a face mask and protective clothing. And there are other reasons for thinking carefully before purchasing magnesium oxide, and one of those is where it comes from. Can we be certain that the analysis is accurate, and there ares not traces of other stuff in the product that could over time be harmful? That question is relevant when there’s a New Zealand product that is so safe you can eat it. It’s sold as a health supplement and it would be near impossible to overdose on it. It’s Golden Bay dolomite and it is way more ef fective at preventing calcium and magnesium related metabolic disorders in lactating animals prior to and after calving. It’s only necessary to apply it once, typically in autumn, and the recommended application rate is 200kg/ha for intensive dairy, however it may be applied at any time of the year. Applying at a heavier rate will not improve animal health, although there may be

soil health benefits, and that’s a different discussion. One of the common objections is that dolomite is less soluble than MgO with the inference that it takes longer to work. That’s not our experience in thirty years of providing it for farmer clients. Where there’s been an SOS due to cows going down and not responding rapidly to treatment an application of dolomite at 200kg has alleviated most of the issues within a fortnight. For even more immediate effect it can be placed in a bin, by itself, somewhere animals have access to and are able help themselves, and they will if they are short of magnesium. There’s a misconception that because it also contains calcium that it can’t be used close to calving. Dolomite applied to pasture at 200kg/ha can do no harm to animals unless they are already receiving excess magnesium directly, which is easily remedied. Dolomite, technically a marble, and therefore extremely hard, is finely ground to ensure excellent bio-availability, with the added advantage that what is not ingested by animals remains in the soil. Long term soil testing of farms receiving 23kg/ha of magnesium (200kg of dolomite) shows a steady rise in plant available magnesium over time.

I’ve yet to see a long-term increase in soil magnesium levels as a result of the application of highly soluble magnesium oxide. We don’t fully understand how it works as effectively as it does, nor have I found any explanation that does, however that doesn’t alter the fact that it is the most effective solution to metabolic disorders at calving. Experience over many years indicates that the annual maintenance magnesium input for intensive dairy properties is around 20kg/ha, with properties receiving 23kg/ha having a steady increase in soil test numbers. Dolomite has a range of other benefits due to it being originally a seabed deposit. The Golden Bay deposit, the only one in the country, has been compacted due to land movement over time and is mined in the most environmentally friendly manner incorporating the planting of thousands of native trees and shrubs. Due to the weathering effect primarily of rain, soil steadily loses mineral content and that impacts on the food produced, lowering our own immunity and increasing the likelihood of contracting exotic diseases. A single application of dolomite each year replaces many of the lost minerals, strengthening our own health and resilience, from the ground up. For more information call Peter on 0800 436 566

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CANTERBURY FARMING

May 2020

FORESTRY & LOGGING

Forestry sector gets green light to return to work There’s been praise for the forestry sector which has been badly affected by the Covid-19 lockdown.

❚ by Kent Caddick

“With forestry being among the first industries affected by the fallout from the Covid-19 With the drop of the pandemic response to pandemic, it’s great that businesses across Alert Level 3 forestry operations around the the supply chain are ready and waiting to get back up and running,” Jones said. country have begun to return to work. “When a sector as big as forestry, which Forestry Minister Shane Jones said he was delighted at the news as it includes har- employs 30,000 people across the supply vesting which employs around 7500 people. chain nationwide, grinds to a halt, the knockon effects are huge. “The resumption of work at level 3, with strict safety and social distancing protocols in place, is very welcome news.” Jones said he acknowledged the forestry sector’s support for measures the Government took in response to the pandemic.” “Our approach now must be pragmatic and recognise that worker health and safety is paramount.” Some forestry businessDo you have a stand of trees? es continued under Alert Level 4 to process wood Would you like these removed? for essential goods such as We can offer you competitive rates and wood for pallets and fuel, cash in return! and pulp and paper for products such as food and mediPHONE KENT ON cine packaging. Jones said a phased re021 325 661 SUPPLIES LIMITED start for the industry had 21 Manion Road, Rolleston been under way since April www.macrocarpasupplies.co.nz 14, with additional business-

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es across the forestry supply chain restarting operations to ensure those essential supplies were available. “I’m proud that the forestry and wood-processing sectors have been able to continue to supply essential products like firewood and shipping pallets during this uncertain time. “These wood products are vital, whether they’re used to keep our homes warm or to move food around the country.” He said the Government was committed to supporting all parts of the forestry sector to restart, and ensuring the industry remains financially supported in the meantime. “We’ve kept an eye on the essential services supply chain and adjusted it as needed, while supporting forestry and wood-process-

ing sector businesses with wage subsidies.” Forestry sector businesses that can operate at Alert Level 3 include: • Forestry management including aerial spraying, weed and pest management • Nursery operations, planting and seed collection • Log harvesting and haulage • Log sales • Wood processing Jones said the uptake of the Government’s Covid-19 wage subsidy had been very high among forestry businesses. “Nearly 90% of respondents in a Te Uru Rakau forestry sector survey undertaken on March 31 reported they were either receiving or had applied for the subsidy. This covers 4467 fulltime and 75 part-time employees.”

FORESTRY & LOGGING

allan Laurie MNZIF ❚ with Laurie Forestry Ltd ❚

CANTERBURY FARMING

May 2020

China critical to recovery for forest owners

It has occupied my mind for some time how to start a report when we have the mix of market and challenges as we do at present. As a start point, let me first state the below is a recital of what is known on the April 22, 2020. To those who might unkindly suggest a prediction I have made of what will happen in the next few weeks was way off the mark, I would kindly suggest that is entirely possible. Of the recent past and that which lies ahead, I can say the predominant feature is the only certainty we have is uncertainty. Everything else is a truth or a lie. And then of course I used to be indecisive, but now I am not too sure. As at April 22 all forestry companies are preparing for a Level 3 return to work. Our guidance has been a thoroughly comprehensive, industry driven protocol with the one objective – to keep our people safe. This of course refers to Covid-19 safe. To have been part of this industry driven collective that has resulted in wide acceptance by regulators, MPI and wider industry has been a great positive. All eyes are looking toward that wonderful cash cow we call China, who despite the well off-bean and ill directed protestations of Shane Jones, are poised to take that healthy portion of logs not required by domestic processors. To this end, China becomes critical to

the strategy of ensuring best value recovery for forest owners, erstwhile ensuring the NZ$70million of logs estimated to be sitting on the forest ﬂoor, on skid sites and on ports, can be quickly turned in to some very badly needed cash. A quick ring around local sawmills suggests an air of optimism with their customers generally commenting they are comfortable their construction activities have not gone away. Orders are thus far slow but pretty much as expected. There is no question there is downward pressure on log price, but in the face of a significant lift in export prices, any drops are unlikely to stick. In China, all eyes are on daily consumption of softwood logs across the eastern seaboard. As a comparative, in April last year daily usage rates were chugging along at 90,000+ m3. When China when back to work late March this year, daily consumption ramped quite quickly to 85,000 m3 per day and we felt we were at piece with the world. This early surge has since proven to be a restocking after lockdown recovery, and by 22nd April, daily consumption has dropped to 50,000m3. Meanwhile, overall inventory

has gone from close to 8mil m3 to 5.4mil and dropping quickly without NZ Log deliveries. Inventory needs to be well under 3 mil to restore confidence and it will likely get there before the NZ supply tap can get turned on again. Importantly, and despite some outwardly positive signs, the China market is not looking in good shape. No major NZ suppliers have been able to fix May sales and all buyers sit on their hands waiting for the other to settle a price. Expectations are this should start to happen late this week early next with China traders reportedly much more positive now Kiwi loggers will be returning to work. Meanwhile shipping companies are refusing to make fixtures until new NZ/China freight rate levels are found with dropping bunker costs and zero demand until next week means everyone sits on their hands in that space also. A further shiver down the spine is unfolding in China with domestic log wholesale prices falling RMB70 per JAS last week, about US$8 in CFR terms. Our biggest current competitor, European Spruce, fell RMB100 per JAS. These drops are a function of a domes-

tic construction sector basically putting the big white gloved supply hand up suggesting usage demand has plateaued, at least for the moment. On a positive note lumber prices have remained stable which should see a return to some margin for traders, not something they have been used to lately. On a negative note, Chinese factories with a European and US customer base for Veener, componentry, mouldings and figure joint timber have a completely empty order book and company collapse and liquidation has become common. For NZ forest growers, the immediate future is looking good. Export log prices at the wharf gate NZ in May should lift well over NZ$30 per cubic metre above March prices across most ports. But, you will likely have picked there is a high likelihood there could be some challenges ahead. Do not let this current glitch deter you people, as always please remember the thoroughly important message, “ It remains, as always, fundamentally important, the only way forward for climate, country and the planet is to get out there and plant more trees”.

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May 2020

CANTERBURY FARMING

WATER & IRRIGATION

Not business as usual – make a plan and have something to work towards I think we are all deﬁnitely sick of talking about Coronavirus, Covid-19, corona, the bug, quarantine time, lockdown, home detention… just to name a few of the nicknames associated with this weird situation we have found ourselves in.

Elizabeth Soal ❚ by ❚ CEO IrrigationNZ However, just in case the issues surrounding it haven’t been in your face enough, I’m here to talk about it some more. The COVID-19 pandemic has had a significant impact on people worldwide and us here in New Zealand. Our lives have been changed x 100mm very 128mm quickly and in fact I think it may well

change the way we do things forever. The extensive media coverage of it means there is no way of escaping it and results in constant stress and anxiety. Although, there is a need to stay up to date with what is going on and I guess what else do we have to talk about? The primary sector and our agriculture industry have received some great recognition during this time, as being the providers of food and fibre for our country. We are very

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lucky to be in a position where we are able to feed our country. Irrigation is a huge part of this as it allows us to grow and produce to meet quality standards and high demand. Agriculture has been classified as an essential service during lockdown, and so must operate under strict health and safety rules. Although to a certain extent it is still business as usual for farmers - the cows are still getting milked, the sheep still need shifted and irrigators still need to be on where it is dry – the lockdown and slowing of the economy is taking its toll on our industry too. Due to the hospitality industry being shut down it has been difficult for potato growers to find buyers because of less consumption, with many green grocers being shut it has resulted in fruit and vegetable growers contracted to them finding it difficult to sell their product. No stock sales and huge uncertainty around meat prices has resulted in difficulty selling and moving animals, many people have had to hold onto their calves and lambs simply due to their being no buyers. Our lives are filled with ups and downs, we can’t be winning all the time, and we can’t be losing all the time either. This is the same for our sectors – some are going to be worse-hit than others following COVID-19. Although in what is a dark time for us and our lives it never ceases to amaze me how human nature can turn a negative into a positive. Lockdown has shown us how resilient and positive we really can be. The other day I saw a farmer who had

managed to kick a rugby ball through the hole in the top of his silo, the determination and persistence to do this would have been no mean feat. It’s these small achievements and moments of self-satisfaction that can make us feel valued and see the light at the end of the tunnel. Even though now is a difficult time to be optimistic I believe it is a great time to set some goals. We don’t know what the next six months hold, even the next six weeks, but we can still set goals and have something to work towards and something to look forward to. Picture yourself a year from now and ask yourself what you would like to achieve. Whether that be your business, personal, or something as small as being able to kick a ball into your rubbish bin!. I’m setting myself a few achievable goals – both work and personal – and writing them done at the start of each week to hold myself accountable. Having something to work towards that’s within our control can help make uncertain times feel a bit more certain. Make your goals adaptable so they can change with whatever curve balls we get thrown in the near future. Sounds cheesy – but I think it’s a small way we can help ourselves and those around us get through and achieve great things. What do you enjoy doing? What helps you feel calm? Incorporate these in your goals too. When we get and give support we build our strength and create stronger families and communities.

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CANTERBURY FARMING

WATER & IRRIGATION

May 2020

Blasts from the past ❚ with Dr Tony Davoren

For some (maybe many) Covid-19 and the lockdown has had some popular pastimes – like cleaning out old ﬁles.

• The 50 clients blossomed in Canterbury to 200I for one have stored out boxes and boxes of old files 300 by the mid-90s and we entered the world of that have been in the garage since just before I went to employing staff the cricket world cup last year, one of those rainy-day The wage books I found reminded me of those staff jobs that inevitably got put off time and again. “Please sort out those boxes in the garage so we can (mostly Lincoln AgSc students) who were employed for park the cars” and “this is a good time to do it”. So be the monitoring and the fun we had. And one wonders where they and people like Kathy are these days? it and a trip down memory lane eventuated. What Covid-19 hasn’t changed is the need for rainThe clean-up took several days and in some of those boxes there were recurring blasts from the past. I’m not fall – not just here in parts of Canterbury but in Hawkes really a hoarder, but I kept coming across newspaper Bay, parts of the Manawatu, Waikato and Northland cuttings from various agricultural newspapers that took (which are all still exceptionally dry). The worry now is that it is nearly May and the opporme back to the beginning in the early 1980s. One from quite early in the piece by Kathy Davis tunity for response to rainfall is pretty much lost – evecaught my eye and has been read several times over rywhere. At best rainfall will recharge the soil profile and hopefully the groundwater reserves for next season. the past week or so with a degree or two of nostalgia: • The decision to leave Water and Soil Division, Ministry of Works and Development and the stability and salary to dive into a business I wasn’t entirely sure would take off; Memory lane: One from quite early in the piece by • The brave clients like Murray Stephens (and Kathy Davis has been read several times over the many others) who could see that getting precise past week or so with a degree or two of nostalgia measurement of soil moisture could help their farming operations – maybe even make them more profitable; and • The learning curve I embarked on – while I knew a fair bit about measuring and interpreting soil moisture, I really only had a peripheral knowledge of the agronomic implications. Thanks to those patient clients we developed some interesting and successful approaches to irrigating a range of crops – it was a collaborative approach. I’m sure you will agree some of the messages in BEST POND Kathy’s article haven’t really changed: • Precise measurements are key to objective AND WATER irrigation management decisions COURSE • Expert interpretation of the data doesn’t go SOLUTIONS amiss • Every crop has different demand • The measurements improve the understanding of the client’s soils Effluent Pond Liners liquid • There are tangible returns containment Pond Liners • Others have changed: Tank Liners - Effluent and Water • The photographs would be in colour now Canals and Water Course • The little Viva hatchback has long since Decorative Pond Liners been consigned to the scrap yard (some might remember, it preceded the Brumby PHONE DAVID ON 03 344 1593 utes) WWW. LIQUIDCONTAINMENT.CO.NZ • There is not much hair remaining and not INFO@LIQUIDCONTAINMENT.CO.NZ that colour

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CANTERBURY FARMING

LIVESTOCK

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Prior to about 26 March this year, 1pm and 4pm never featured as important to me, but since then and for at least the first two weeks of lockdown, it became almost a ritual to watch and listen intently to the daily updates as to where new infection was being reported, how recoveries were tracking, if there were fatalities, and how well or otherwise New Zealand was managing the pandemic. I doubt that anyone regardless of political persuasion could challenge the deliveries by the PM and others who faced the cameras and the group of ‘socially distanced’ reporters afterwards. Our thoughts are with all of the families of those New Zealanders who have sadly passed away with Covid-19. The wool industry in New Zealand basically came to a complete halt at close of business on 25 March due to Alert Level 4, as shearing contractors closed down, broker’s wool stores closed, wool auctions ceased, wool dump stores

closed, wool scours closed, and wool exporters faced shipping delays for a variety of reasons. Wool movements from farm and beyond were not deemed as essential, therefore to all intent and purpose the industry was in lock-down. Although some shearing contractors could apply to work as essential for animal health reasons, safe practices including distancing between people meant that any shearing which did take place was a slow process. Across the Tasman however, wool brokers and exporters continued to gather for wool auctions, albeit further apart inside the auction rooms than previously, as there appeared to remain at least some demand for Australian wool types. Throughout the remainder of March and up until the time of writing on 23 April, wool auction sales were conducted in Sydney, Melbourne and Fremantle, resulting in reasonable clearances

of smaller, than originally anticipated, quantity offerings, but with a definite weakening tone day by day. A few on-line trial but open-cry auctions were also conducted in Australia resulting in positive feedback from all parties, although obviously at a slower pace than the traditional auctions. Main buyers attending all auctions in Australia over the past few weeks, almost entirely represented Chinese buying interests. South Africa also held a trial on-line auction in late April which was also heralded as a success. During the Alert Level 4 lockdown period in New Zealand, all industry participants held meetings online and via telephone to discuss the way forward, how to best manage wool ﬂows, and when to resume auction sales. At time of writing it had been decided to tentatively schedule a North Island auction for 14 May in Napier followed the South Island on 21 May in Christchurch. Logistically and to adhere to compliance issues around Alert Level 3, brokers were busy identifying suitable locations allowing for the correct distancing between auction attendees as well as understanding travel restrictions. With obvious demand challenges ahead, future wool market pricing is impossible to predict however, and in my view, and provided exporters have sufficient orders, wool growers of all micron categories should be prepared to meet the market rather than attempt to control pricing. Nobody in the wool industry has experience in such a situation where so many manufacturers and retailers in key areas around the globe are closed and may be for some time. That’s my view.

CANTERBURY FARMING

LIVESTOCK

May 2020

Food producers in the spotlight What an extraordinary year it has been with a virus that began in China wracking havoc on a global scale.

Nicky Hyslop ❚ by Director Beef + Lamb New Zealand ❚ It has been humbling to see nations going into lockdown to try and protect their most vulnerable, but also incredibly sad to see the devastation Covid-19 has caused in countries such as Italy, Spain, France, the UK and the USA. Out of the chaos we have seen great leadership, community spirit and creativity as people have found new and innovative ways to work, communicate and come together in the virtual world. It has also taught us that our needs are very simple-our wants are a different story. Fundamentally we all need to eat and it appears the public has renewed appreciation of food and our food supply chains. We are so fortunate that our farmers, transport operators, process workers and supermarket staff have all been prepared to carry on working through the lockdown. Farmers don’t have a choice – stock still need feeding and crops harvesting – but those other industries do and we are grateful for all of those individuals who have been prepared to work

through this challenging time. Together we have managed to keep food on our nation’s table and generate export earnings while the rest of the economy grinds to a halt. This crisis has certainly highlighted the vulnerabilities of industries such as tourism and forestry and the security offered by our grass-roots farming industry. New Zealand is going to have to rely on our primary sector even more heavily as it recovers from this pandemic, but it is not going to be easy. While China is opening up for business our other markets will falter, particularly those with an emphasis on supplying the food ser-

vice industry. I suspect people won’t be ﬂocking to restaurants for a while yet. I would like to think the government will take this opportunity to pause and consider the impact its proposed environmental policies will have on the primary sector. Over the past year these policies have come at us with speed and the scale of the proposed changes are out of kilter with agriculture’s environmental footprint. We absolutely all have to continually strive to protect and enhance our natural resources. The agricultural sector has learnt a lot about environmental protection over the years and I am always heartened to see the investment farmers are prepared to make in

planting trees, fencing off waterways and adjusting their farm management systems. Farmers do it because they want to and because they take pride in their farm environments and biodiversity. They don’t invest in environmental protection because of any regulatory framework – it’s about education. As NZ emerges from this Covid-19 pandemic, it will need all hands on-deck. We cannot afford to hamstring our sector with environmental policies that do little to protect the environment. Instead we need to work together to continue to produce high quality food for our people and for our export markets while continuing to protect our natural resources.

Smartrace proves to be a great option Giving ewes a slow-release dose of important trace elements makes sense to Jeremy Pitts. So, he switched to dosing ewes with a Smartrace capsule of selenium, cobalt and iodine. “I’ll definitely do it again this season.” “We’ve had the best ewe survival rate over winter and lambing for several years.” The extensive nature of Jeremy and Hayley Pitt’s 5500-hectare high country property, Mt Gladstone Station, means limited trips through the yards for ewes. “I really like that we can give the ewes what they need with two capsule doses – prior to tupping and then at shearing in late pregnancy,” said Jeremy. The property runs mediummicron Merino ewes, hoggets and wethers. Smartrace really fits the animal health plan for the ewes, and has potential for wether flocks who require long term supplementation. The capsule is two pills of trace elements, held together with a biodegradable paper. The paper dissolves and the pills rub together. As they scratch together the elements are released. “I like the fact that there is no plastic going into the sheep.” The Awatere property in Marlborough has a proven issue with low selenium soils. Cattle showed up with selenium

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Jeremy Pitts on his high country property. Photo: Hayley Pitts

“We’ve had the best ewe survival rate over winter and lambing for several years.” deficiency 15 years ago and resolving it made a huge difference to fertility. Ewes have always had selenium, iodine and cobalt supplementation, but Jeremy was

keen to try a product that gave a longer-acting dose. “Selenised drenches are more short-term and we don’t drench often enough.” “I decided against the injection as it’s another needle for ewes, when they are already getting two or three vaccinations.” Jeremy read about Smartrace in the Vet Marlborough newsletter and grabbed a sample pack of capsules from the vets when in town. The capsules were given to ewes in

the race using an adapted capsule gun, and Jeremy estimates only 12 or so capsules were immediately coughed up out of 3200 ewes. Any ewes seen doing this in the race were given another. Smartrace has released a new applicator that will make the dose process even faster. Research by Agrimin (the manufacturer) shows the capsules deliver all three ingredients for up to at least four months, but potentially beyond. Jeremy noticed that a ram killed for dog

tucker still had the capsule inside after four months. “It was still breaking down.” “It was really interesting to see.” Like many treatments, proving the benefits of a supplement is hard to do, Jeremy said. “But I feel that they are going better.” “The lambing percentage in the ewes was the same but the ewe survival rate was much improved.” “We only lost three ewes from ram joining in June to September.” “Our wool clip was also up but that could also be the season too.” Iodine regulates ewe body temperature and helps foetal development. Jeremy said iodine is really important pre-lamb so this is probably the key time to give a capsule, if farmers just wanted to give one. His ewes typically graze high country oversown-top dressed pastures, which are of moderate quality for much of the year. Giving long-acting selenium means the Pitts have to make sure they give only unselenised drench to the ewes. “It takes a bit of planning to make sure staff know not to drench ewes with selenised drench, but we write it all on a whiteboard in the shed.” Jeremy’s advice to other farmers is to give Smartrace a go, as it’s a great option.

May 2020

CANTERBURY FARMING

Ford Puma bound for New Zealand Sourced from Europe, the Puma is an all-new urban SUV with fresh design, practicality and technology.

❚ Article supplied by FordNZ

Arriving alongside the new-generation 2020 Ford Escape, together the Puma and Escape will bring Kiwi customers greater choice through Ford’s expanding SUV line-up, which also includes the highly-equipped Endura and the off-road capable seven-seat Everest. Recently crowned What Car? Car of the Year 2020 after a rigorous testing process, the Ford Puma was praised for being, “fun to drive, cleverly packaged and well-priced”; fuel efficiency and value for money were also factors that contributed to the judges’ decision to award the new Ford Puma the overall COTY award. “The Puma will appeal to customers looking for a vehicle with inspiring personality,” Simon Rutherford, managing director of Ford New Zealand said. “It’s fun-to-drive, stylish and loaded with smart technology. And with a major Car of the Year award already won, we’re looking forward to getting customers behind the wheel.” The fresh design of the Puma features a low, sloping rooﬂine for a dramatic, instantly recognisable silhouette, and bucks the trend for wedge-style crossover side profiles with

More choice: The Puma is the latest addition to the ever-expanding Ford SUV range. an “anti-wedge” design that features a ﬂatter belt-line to deliver balanced proportions.

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Ford’s design team created highly emotional surfacing over the distinctively proportioned stance of the vehicle, and alongside the engineering team, delivered uncompromising style, access and load-space. The Puma will join the all-new Ford Escape in showrooms in 2020 to offer the latest generation design, technology and capability in varying price points, reﬂecting the diversity and lifestyles unique to local tastes and de-

mands. With Puma and Escape joining the refined, highly-equipped Endura and the offroad capable, seven-seat Everest in showrooms, customers now have even greater choice and opportunity to choose a Ford SUV that reﬂects their own personality and spirit. Further specification and pricing of the all-new Ford Puma will be announced ahead of its arrival in the second half of 2020.

CANTERBURY FARMING

❚ with Rob Cope-Williams

Surviving lockdown Well wherever it did come from, whether a quirk of nature or produced in a lab to bring the world to its knees, the virus has certainly affected millions of people. A recent cartoon showed a nurse in a hospital asking a patient whether he knew what had caused his problems and he replied he got it from watching the news about the Covid-19 virus. Indeed, there has been nothing apart from Covid-19 ‘news’ for weeks and while we do need to know what is happening here and overseas, I do wish the media would expand their questions a bit further out rather than chasing the same ball. For example, I’d like to know how farmers are getting on under lockdown when it obviously can’t be practical. Does each farm worker have to stay in their own house and not meet with others to discuss rosters, workloads, and animal health issues? Can farmers and staff survive the 2 metre rules? Then of course there is the 2.3km limits when supermarkets are needed. Were farmers able to stock up on animal health remedies before the lockdown and are stock and station companies able to supply feed and necessary items? There were some nice calls for farmers to be acknowledged for the work they are doing on social media, but again very little and probably in the wrong areas to gain any real traction.

There has been a huge focus on keeping companies aﬂoat by the Government handing out billions of dollars to pay staff while in lockdown, and sadly there are reports on some companies claiming more staff than they actually have, but that’s another story for the IRD to follow up on. However, did any of that money go outside the towns and cities, I fear not as farmers will be expected to survive the lockdown and operate as usual. I will not even mention the fact that there is a serious drought in many parts of the country that is far from ending and cash ﬂow for many is very tight. There have been reports of producers not being able to sell their wares because of the lack of exports with the borders closed all over the world, but they have been glossed over in favour of who can get protective clothing and who isn’t. Yes, I am having a whinge about things and I do think the farming industry is being ignored, but I feel very justified doing it. This amazing newspaper has risen above the trials and tribulations of the lockdown and the dedicated team have burnt midnight oil to get it into your hands without a moment’s hesitation. As the rest of the world adjusts to a new normal, whatever that may be, you can and should be very proud of the fact that your exports will be a major part of New Zealand’s recovery.

May 2020

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May 2020 CANTERBURY FARMING