Canterbury Farming, April 2021 by Canterbury Farming

30,287 copies distributed monthly – to every rural mailbox in Canterbury and the West Coast

April 2021 Edition

INSIDE

THIS EDITION New housing rules

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p19 Lift in prices

p37 Butter investment

p43

Winners are grinners: The 2021 Canterbury/North Otago Dairy industry Awards winners, from left: Dairy Trainee of the Year Mattes Groenendijk, Share Farmer of the Year Dinuka and Nadeeka Gamage, and Dairy Manager of the Year Maria Alvarez.

Dairy industry awards recognise top performers Ashburton based contract sharemilkers Dinuka and Nadeeka Gamage have been named as winners of the region’s Share Farmer of the Year category in the Canterbury/North Otago Dairy Industry Awards.

❚ by Kent Caddick The Gamages say the networking, strength and weakness identification and recognition they gain through the Awards process were all motivating factors to enter again. Dinuka was placed third in the 2016 Canterbury/ North Otago Dairy Manager category. The Ashburton couple contract milk 980 cows on the 245ha Dairy Holdings Ltd property.

Dinuka holds diplomas in Agribusiness Management, and also Technology from New Zealand, as well as Agriculture Engineering, and a post-graduate diploma in Marketing from Sri Lanka. He has also achieved PrimaryITO Level 5 Production Management and Level 4 Dairy Farming and Biz Start from DairyNZ. Nadeeka holds the NZ Certificate in ECCE. “Agriculture has always been our career of choice,” say the Gamages. “We love working

outside with animals and nature. “It was challenging at first to learn the skills required to be a New Zealand dairy farmer but we have overcome that through continuous education and experience.” The couple are proud of their progression through the industry, past dairy awards won and of the agribusiness qualifications.

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April 2021

CANTERBURY FARMING

FARMING NEWS

Industry award winners aplenty FROM PAGE 1 “During harder times we like to have a clear mind and try to begin each day that way,” Nadeeka said. “We try to accept that sometimes things happen or change, and worrying won’t change it.” Dinuka and Nadeeka identify the strong, on-going support from their farm owners as a strength of their business. Future farming goals include continuing to farm sustainably, aiming for 50/50 sharemilking or an equity partnership.

“Long term, we would love to own a farm.” Other major winners at the Canterbury/North Otago Dairy awards were Maria Alvarez, who was named the 2021 Canterbury/North Otago Dairy Manager of the Year, and Mattes Groenendijk, the 2021 Canterbury/North Otago Dairy Trainee of the Year. Alvarez, who is the farm manager on Dairy Holdings Ltd 180ha, 660cow property at Ashburton, believes a strength of her business lies in the sim-

ple, pasture-based system that suits low milk pay-outs. The first-time entrant says the Awards programme has made here realise how much she has achieved. “I was completely out of my comfort zone when presenting, but it’s been fantastic to receive the feedback,” Alvarez said. She holds an agricultural engineering degree from Argentina, and aims to complete a Diploma in Agribusiness once her New Zealand residency application is accepted.

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Recognised: The winners at the West Coast/Top of the South Dairy Awards were, from left: Sam Smithers (Dairy Trainee of the Year), Sian Madden and Mark roberts (Share Farmer of the Year), and rachael lind (Dairy Manager of the Year). Across the Alpine divide Reefton contract milkers Mark Roberts and Sian Madden were announced winners of the West Coast/Top of the South’s Share Farmer of the Year Category. First-time entrants are contract milkers and 20% share milkers on Stu and Jan Moir’s (Moir Farms Ltd) 215ha and 377ha Reefton farms milking 1300 cows across the two properties. “We have a genuine passion for the dairy industry and are committed to farming sustainably and showing others how we do this for future generations,” the couple said. “We see ourselves at the front of the pack, farming in a ‘back-to-basics’ way, but also embracing technology and new ways to enhance our on-farm environmental practices.” They formed their business Madden Roberts Farming in 2019 and aim to progress to farm ownership. “We entered the awards because of our career progression and our desire to represent our area as role models and leaders.” The other big winners were Rachael Lind, who was named the 2021 West Coast/Top of the South Dairy Manager of the Year, and Sam Smithers, the 2021 West Coast/Top of the South Dairy Trainee of the Year. Third time has proved lucky for Lind who has been runner-up in the Dairy Manager category for the past two years. She is farm manager for Pamu Farms of New Zealand (formerly Landcorp), on the 460ha, 1060-cow Cape Foulwind property. Lind grew up on a sheep farm in the Marlborough Sounds and entered the dairy industry 20 years ago as a dairy assistant, progressing through the industry to her manager’s role. “The day after I left college I moved to the West Coast to work on a dairy farm for the summer,” she explains. “I fell in love with the cows and haven’t left the industry.”

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April 2021

Former Feds President backs war on Westland pests The $45 million predator-free project recently announced for South Westland is a massive win for biodiversity and the local economy according to West Coast dairy farmer, and former Federated Farmers President, Katie Milne.

❚ by Kent Caddick Milne, who has taken on the role of chairing Predator Free South Westland, said the 50 jobs expected to be created during the five-year assault on possum, rat and stoat numbers was excellent news for a district hit harder than many by Covid-19 economic fallout. “We’ll also be bringing back native birds to their former glory, protecting habitat for the rowi, New Zealand’s rarest Kiwi, and the recently rediscovered Okarito gecko,” Milne said. “Essentially we’re out to create a predator-free mainland island of 100,000 hectares where previously we’ve only been able to do it on offshore islands. “Maybe in future we’ll be able to release the likes of takahe and kakapo, which would be pretty cool.” Farmers and other landowners have given their permission for land access. Milne said Iwi, and really the whole South Westland community, are on board and engaged with this. “Now that the intention was to go for eradication of possums rather than just suppression, the threat of bovine tuberculosis can be lifted from the shoulders of farmers forever.” The project is an expansion of successful efforts since April 2019 by Zero Invasive Predators (ZIP) removing stoats, possums and rats from a 12,000ha block in the Perth River Valley in South Westland.

Eradicate: West Coast dairy farmer, and former Federated Farmers president, Katie Milne says a new predator-free project which focuses on the eradication of possums could lift the threat of bovine tuberculosis and possibly bring to an end ongoing widespread use of aerial 1080 drops.

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1080 drops to control pest A range of approaches from ‘boots on the ground’ labour to innovative trapping, baiting and detection techniques will be used. “In the long-term it could bring to an end ongoing widespread use of aerial 1080 drops to control pest animals.”

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April 2021

CANTERBURY FARMING

FARMING NEWS

Six years of progress Looking back over the past six years, I feel proud of all Beef + Lamb New Zealand has achieved, particularly in the areas of environment and market development.

phil Smith ❚ by ❚ Beef + Lamb New Zealand It was my strong belief that the organisation should be involved in advocating for sheep and beef farmers as environmental policies and regulations are being framed, that initially led to my being elected as a Director. As a farmer in the Hurunui Waiau zone, I understood all too well what happens when sheep and beef farmers are missing from the regulatory setting process and because we weren’t at the table, we ended up on the menu in the form of having grand-parenting nutrient regulations foisted upon us. Today, B+LNZ has a team of people working on farmers behalf, engaging with government and regulatory bodies on a daily basis, picking through the finer details of regulations and making submission on the sectors’ behalf. As a Director, it is frustrating that we cannot always share with our levy payers what is going on behind the scenes. As Chairman Andrew Morrison said at B+LNZ’s recent Annual Meeting, when you are negotiating buying a farm off your neighbour, you don’t go

and tell the community until after the deal is done. This is the case with much of the work B+LNZ is doing alongside other industry-good organisations, to find sensible and practical solutions to some of the unworkable aspects of environment regulations. Part of getting successful outcomes on issues like freshwater rules is the ability to have free and frank discussion behind closed doors. It was pleasing that the government has delayed implementing the winter grazing regulations for 12 months and in that time B+LNZ will be working with other agricultural groups to get the government to permanently remove the pugging regulations, the low slope map and resowing dates and the need for consents. In the meantime, the farming community needs to continue to demonstrate good wintering management practices to show that regulations are unnecessary. The other area I have been proud to be associated with is market development. When I first joined the Board, there wasn’t much appetite for B+LNZ to work in this area, but as a farmer, I felt strongly that sheep and beef farmers should be investing in the marketing of our product. Today we have Taste Pure Nature, NZ’s first red meat brand and we are working with processors through targeted campaigns to promote NZ’s naturally-produced red meat. This brand is gaining real traction in Chinese and North American markets as we appeal to what the marketing team call the conscientious foodie, those consumers who want to know the environmental and welfare

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standards the meat is produced under. That is why the New Zealand Farm Assurance Programme is so important. It is the proof-point consumers are calling for and it is pleasing to see how all the major processors have got in behind this industry standard to avoid duplication. I would very much like to thank all the farmers who have supported me over the past six years and I am now looking forward to supporting the new Northern South Island Director Kate Acland. As she takes my set at the Board table, I know our region’s farmers will be in safe hands.

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FARMING NEWS

CANTERBURY FARMING April 2021

Winter grazing delay pleases farmers Federated Farmers is praising the Government for delaying a final decision on introducing new rules around intensive winter grazing.

❚ by Kent Caddick Intensive winter grazing (IWG) is a farming practice where stock are confined to outdoor feeding areas planted with fodder crops. Opponents of the practice, like environmental group Greenpeace, say intensive winter grazing is about overstocking cows on winter paddocks, churning the ground to mud which can then wash into waterways, spread pathogens and smother insect and plant life In announcing a temporary delay until May 2022 Environment Minister David Parker said the farming sector has agreed to make immediate improvements to intensive winter grazing practices for the coming season and the Government will help them achieve this. “If done poorly, IWG has serious negative effects on animal welfare and the environment, particularly freshwater health and estuaries. “Farming leaders accept that these practices need to improve and they want to be part of the solution,” Parker said. In return for the farming sector’s commitment, the Government has deferred the introduction of IWG practice regulations for a year until May 2022, while these improvements are made. However, rules preventing the expansion of IWG will still apply. Federated Farmers said it is clear the Government had taken the time to listen to and understand the practical difficulties that accompanied the Essential Freshwater rules on winter grazing. “In announcing the delay of intensive winter grazing taking effect, Environment Minis-

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Right move: Federated Farmers water spokesperson Chris Allen says a delay to the introduction of winter grazing rules will help to ensure they are workable.

ter David Parker has recognised workability issues need to be sorted, and that extra time is vital to ensure we get this right,” Feds water spokesperson Chris Allen said. “This is not kicking for touch. The Minister has accepted a commitment from regional councils and the farming sector to use this time to develop, test and deploy an IWG module and practices that will ultimately be a part of a certified freshwater farm plan.” Allen said there is universal recognition that the Essential Freshwater national rules passed in August last year have a number of unworkable parts. “The parts that relate to the regulation of intensive winter grazing were one of the first ones to take effect and therefore needed urgent attention. “The year ahead provides time in which work can continue around the table to build on the considerable work happening on the ground,” Allen said.

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“It’s all about ensuring the final rules and provisions are practical and workable for farmers, and achieve the environmental outcomes everybody wants to see.” Parker said the one year deferment will enable an IWG farm plan ‘module’ to be rapidly developed, tested and deployed ready for formal incorporation into wider certified freshwater farm plans in 2022. DairyNZ said it was pleased collaborative action and the farming sector’s input has delivered practical winter grazing decisions. “The Government’s decision to deliver change via an intensive winter grazing module as part of certified farm plans, rather than rules, is good news for farmers,” DairyNZ chair Jim van der Poel said.

“Farmers now have time to continue implementing good management practices that will drive positive progress. These will be supported by the winter grazing module and monitoring. “This [delay] gives farmers reassurance they can prepare for winter. It’s been highly collaborative and we will continue working together to deliver good practice winter grazing,” van der Poel said. However, Greenpeace said the Labour Government’s delay in implementing alreadyweak intensive winter grazing regulations is yet another example of them buckling to New Zealand’s “dirtiest industry”. “Leaving a bad practice unregulated and thanking industry for their promises to make it slightly better is no substitute for getting rid of it, as the Government should be doing with intensive winter grazing,” Greenpeace senior campaigner Steve Abel said. “In the middle of a climate and freshwater emergency, it’s pathetic and depressing to see our Government so captured by industry instead of doing the right thing.” Abel said the policy retreat again shows that Ardern’s Government is more fearful of stepping on the dairy industry’s toes than acting on the climate crisis or freshwater pollution. “It feels like this government is owned by the dairy industry,” Abel said.

April 2021

CANTERBURY FARMING

FARMING NEWS

Destocking the goal of Government’s response One of the most significant issues farmers currently face is environmental management.

David Bennett ❚ by ❚ National Party spokesperson for Agriculture We all agree that as stewards of the land, there will be increasing expectations on our environmental credentials. This is without question and it is what, as farmers, we have been doing for generations and our farming systems are inherently based on the best environmental practices. The question, though, is how the Government should approach these environmental challenges. There are two main options. First, a strict, Government-knows-best approach for the whole country with uniform rules. This is the approach that the current Government is undertaking. This approach is difficult in the long-term as it ignores fundamental geographic, climatic and farming practices. It has serious implementation issues. It also relies on getting the rules right in the first place – which we are working towards, in the number of changes and reviews of the Essential Freshwater regulations. The current rules are deliberate and calculated. They are designed by Ministers for the end goal of destocking. They have been carefully manufactured to appear as countrywide rules, but they have specific regional implications that achieve the destocking goal. Whether it’s wetlands in the West Coast, nitrogen rules in Mid-Canterbury or intensive grazing rules in Southland; specific regions are more exposed under certain regulations.

A better approach to environmental management is a discretional approach, with the main participants having a role in developing a direction that can be followed up in catchments. These kinds of rules and regulations would be practical and achievable as they are made in consultation with industry groups. This approach draws on the expertise of those on the ground and requires farmer involvement and leadership. This method requires collaboration from regional councils, government departments and industry body groups in setting and evaluating the effectiveness of rules and regulations. It would be catchment-based and ultimately reflect farmers’ geographical practices. It will deliver more results in the longterm rather than short-term attempts to strictly enforce impractical rules. The question of which approach to take in regard to environmental management is playing out in our communities. The current strict approach will lead to conflicting views, difficulties in implementation and less actual environmental change. A directional approach based on market signals, catchments, practical and achievable solutions will enable us to take the public and farmers along on the same journey. This creates real and meaningful change that achieves our environmental goals.

CANTERBURY FARMING

FARMING NEWS

Farmer feedback wanted on long term plan

Rates – it’s a five-letter word that makes people’s eyes glaze over, although I suspect that isn’t so much the case in the farming sector.

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April 2021

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For an additional $11.66 a week (for example) you would be contributing to another $40 million of work over the year.

❚ by Jenny Hughes

❚ Chair, Environment Canterbury Unfortunately, thanks to an ever-increasing cost of living, rates rarely go down. It can seem that farmers pay the lion’s share of the region’s rates and are hardest hit by any rates increase. That’s due to the amount of targeted rates, often for flood and river protection, farmers have to pay, and also because many services are paid for through ‘general rates’ ie those that go up the higher the value of your property. Farmers also pay ongoing fees and charges for consenting and monitoring of consent conditions. The headlines for Environment Canterbury’s draft Long-Term Plan 2021-31 will no doubt be causing angst: “24.5% rates increase for Environment Canterbury”. What the headlines don’t address generally is why. Without rates, Environment Canterbury would not be able to offer the regional and local programmes that protect and improve our air, water, land and biodiversity. Nor could we properly monitor consents, or provide region-wide public transport services and emergency management protection. The environment has never been more at the forefront of the public’s minds. The rural sector has been on to this for some time now, all the while taking a large share of the blame for the pace of change or what isn’t being done. The rest of the population is catching up, and Environment Canterbury has responded with the draft Long-Term Plan. By making a stand to put climate change, the environment and the wellbeing of the community at the heart of all we do means we have to think laterally and aspirationally about how we can make a difference in the future. There is a cost to the region if we don’t do this. We aren’t immune to the fact that there is also a considerable cost – financial and in terms of action that needs to be taken – if we do this. On top of what we believe is a call from the community to do more and faster, there is an increase in central government expectation, seen in the release of new legislation such as the Essential Freshwater and Three Waters Reform packages, which will require investment and a new approach from councils and the community across the country. The Covid-19 pandemic and regional and national recovery throw further spanners in the works for our planning over the next 10 years. Central government has responded with considerable funding to enable us to tackle flood control and rivers projects. Again, this requires input from our community also, but is an opportunity worth taking up. To help mitigate the impact on higher value property owners – as we do know that having a high value property doesn’t automatically equate to an increased ability to

pay more, urban or rural - the councillors have proposed an increase in the number of services that would be paid for through a flat fee (known as a uniform annual charge) regardless of the value of your property. It’s worth taking a moment to check out our rates calculator to see what your rates increase could be under the two options we have put forward for feedback. For example, under option one, a farmer in the Ashburton District with a property worth $4.96 million would pay $4678.37 in the 2021-22 year, $735.85 more than this year. That’s an additional $14.15 a week. Under option two, that same ratepayer would pay an extra $606.31, or a total of $4548.83 for the year, which is $11.66 a week. The two options proposed in the draft Long-Term Plan layout $246.54 million of work in the 2021-22 year (option 1), or $240.19 million in the 2021-31 year (option 2). Our current spend is around $200 million per annum. What I am trying to illustrate is that for an additional $11.66 a week (for example) you would be contributing to another $40 million of work over the year. Whichever way you look at it, the proposed rises for farmers are not insignificant, daunting even, for some. The council wants to keep rates, which account for a little under 60% of our income, affordable, but the challenge is being able to make progress with key programmes for our communities. Getting the right balance is difficult and the affordability debate has been hot around our council table. The rest of our income comes from userpays, and central government grants (mostly for public transport). We can also use council reserves and we have the option to borrow money for some activity. Farmers, as business owners, will understand better than most that, while these may better spread the impact of rates rises across several years, they both have fishhooks in terms of repayments and potentially not having sufficient reserves for when you really need them. Talking of reserves, in both the options put forward in the draft Long-Term Plan, we have allowed for some top ups. Particularly for flood control and civil defence – both essential for keeping communities safe. The Council is fronting up to the climate emergency and its environmental and societal repercussions. The draft Long-Term Plan is open for consultation with our community until 11 April, and we are keen to hear from you. Tell us what you like and what you don’t like. As always, i look forward to hearing your ideas or any comments you may have. please email me at Councillor.Hughey@ecan.govt.nz. For more information, or to make a submission, visit haveyoursay.ecan.govt. nz/LTP

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Bessie paterson llB ❚ with ❚ Ronald W Angland & Son

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The Government’s new rules

Recently the Government introduced a raft of rules in an effort to try to make housing more affordable and to hit the investors and speculators in the pocket.

One of the rules that the Government proposes is to abolish the tax deductibility for mortgage interest paid by landlords on their residential rental properties from 1 October 2021. Where the property was purchased prior to 27 March 2021 the rule will be phased in over four years. If the property is purchased on or after 27 March 2021 the owners will not be able to claim any deductions for mortgage interest payments. This is a quite extraordinary change to the tax rules. The new rule will not apply to landlords of commercial properties any other non-residential uses. Will the landlords of residential properties accept a reduction in their income through not being able to claim a tax deduction for mortgage interest? Most forecasters were of the view that the Government would increase the brightline test for investment property from 5 to 10 years and they were correct on that point. If a contract relates to a newly-built dwelling there will be a bright line test and the Government is still working on what constitutes a new build. There is to be a main home exemption but it will work differently from the main home exemption under the previous rules. The Government has outlined that where someone acquires a home essentially for

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This is a quite extraordinary change to the tax rules.

their occupation and only lives there for part of the 10 year period, the exemption will apply only to the time the owner occupied the property as their main home. So, if a homeowner purchases a property and lives in if for 6 years and the has to live elsewhere for work and lets the property for 4 years, they will be required to pay tax on 4/10 of the capital gain. Other matters covered by the announcements relate to increasing income and high-

er house price caps for first home grants and loans, a multi-million fund to hasten housing supply, support for Kainga Ora to borrow increased sums for land purchase and initiatives for support of trades and training. How effective the above measures will be remains to be seen. It is difficult to envisage most investors accepting a much lower income from a rental property as a result of the removal of the ability to claim tax deductions on mortgage interest.

In most cases it would be expected that the landlord would need to increase the rental to cover at least some of the loss when the mortgage interest is not tax deductible. It has been estimated that a landlord with one rental would lose about $5,000.00 income per year with the tax deductibility abolished. It would have been interesting to know whether the IRD had collected much tax on properties under the earlier bright line test but the Department does not have any details as to how much may have been paid to it during that time. On reading some of the information presently available in respect to these new rules it occurs to me that the rules are quite complex and may prove difficult for many people to grasp the full extent of their application. This article has been prepared by Bessie paterson a partner at ronald W Angland & Son, lawyers, 2 Chapman Street, leeston.

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Health and Safety: Brydie McFall ❚ with Helmore ❚ Stewart Lawyers

Check your blind spot

The Agricultural industry makes up a majority of the workplace incidents reported across New Zealand. Given the wide spread of this industry in North Canterbury it is important employers and employees are aware of their responsibilities in order to keep incidents to a minimum. Under the Health and Safety at Work Act 2015 (the Act), anyone that runs a workplace has a duty-of-care to ensure the health and safety of those in that workplace. The duty extends to not only employees of the farm, but also anyone who enters that farm in the course of business. In cases where accommodation is provided as part of employment, which we often see in North Canterbur y, the duty-of-care may also apply to the use of that accommodation. The duty-of-care only requires the employer to go as far as “reasonably practicable” to prevent risks to health and safety. What is “reasonably practicable” will change depending on the nature of the work. The standard may be higher for those working out on the farm compared to those primarily managing the admin. Anyone running a farm will need to think about possible risks that could cause harm and take actions to eliminate, minimise, or manage those risks. Action must be taken in regards to any recognised risks, it is not enough to merely

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To help ensure they will not be liable, employers can make sure their equipment, including vehicles, are regularly checked.

acknowledge the risk in order to avoid committing an offence under the Act. It is also important that anyone running a farm in North Canterbury is thorough with their risk assessments as an offence can be committed under the Act by failing to consider a risk in the first place. Not all duties fall on the employer. Under the Act, employees and other persons entering the farm must take reasonable care for their own health and safety. In a practical sense this will mean that employees need to engage with any policies put in place by the employer, listen to any rea-

sonable instruction with regard to health and safety (such as wearing safety gear), and not act in a way which unnecessarily puts themselves in danger. The Act introduced new penalties for workplaces who breach this duty-of-care. These penalties impose hefty fines for employers and in extreme cases can include prison time. In the last two years WorkSafe has imposed fines on employers in the Agriculture industry of upwards of $200,000 for breaches that could have arguably been avoided. The most common breaches of the duty-

of-care on farms across North Canterbury come down to poorly maintained equipment and poorly trained staff. Some of the easiest things an employer can do to help ensure they will not be liable for any fines is to make sure the equipment, including vehicles, are regularly checked and maintained, and to ensure staff are attending regular training on use of equipment and ways they can protect themselves, especially those working very physical jobs. If you have any questions about your obligations under the Act, we advise you speak to a solicitor.

April 2021

CANTERBURY FARMING

RURAL PROFESSIONALS

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Why work with a specialist consultant? It’s important to know how you can use your land to maximise the return on your investment and prevent any delays during the process. Sur veying and in-depth evaluation gives you all the answers before you invest. Our specialist team can problem-solve, make recommendations, and provide options you might not have considered. We’re happy to meet with you for an initial no-obligation chat about your property. Subdividing without professional advice isn’t for the faint of heart! The process can be complex and time-consuming, and having an expert team on your side helps to avoid costly mistakes. Rural development is quite different from urban development; we know rural like the back of our hand and can provide the advice you need for a smooth process. Council regulations are constantly changing, and keeping up can be a fulltime job! Working with a specialist means you’ll know exactly what you can achieve with your property under the current rules. We have an in-depth knowledge of the Resource Management Act and District Council requirements, and a good working relationship with the Council. When you work with Sur vus, you’re tapping into the expertise of our wider network. We have strong relationships with rural land agents, valuers, and accountants, all of whom bring additional knowledge and value to our ser vices. So, how can you make the most of your piece of paradise? it all starts with a call or an appraisal request. You can call us on 0508 787 887 or visit www.survus.co.nz today and complete the quote form.

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CANTERBURY FARMING

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Proﬁts better than expected Global equity markets generally surged into the end of 2020, paused in January, but kicked on again in February.

Reporting season, when companies report their results to the market, generally saw profits stronger than anticipated. Companies are benefiting from a combination of economic activity being better than expected, underpinned by government and central bank support, and significant cost savings. Across the market a majority of companies’ future profit and dividend forecasts were lifted by analysts.

A weak New Zealand market the exception New Zealand equities underperformed major markets over the quarter, despite also delivering generally strong results over reporting season. The NZX50 market index is dominated by a relatively small number of companies – the largest eight companies account for around half the index, and the largest 15 account for 71%. What that means is any price changes (up or down) of these larger stocks has a significant impact on the overall index. During the quarter we saw falls in some of New Zealand’s largest listed companies, for company or sector-specific reasons, plus a general pullback in defensive, dividend stocks which dominate the market. Clean energy exchange traded funds’ (ETFs) buy high, sell low strategy has caused significant volatility in electricity stocks, particularly Meridian Energy (New Zealand’s largest listed company) and Contact Energy. More on this below. Fisher & Paykel Healthcare, New Zealand’s second largest listed company, has been a beneficiary of Covid-19 with its products used in hospital therapy. Recent vaccine rollouts and the resulting drop in hospitalisations have raised concerns of a decline in demand for Fisher & Paykel’s products. In February A2 Milk lowered revenue and earnings guidance for this year (for the third time). Border restrictions are limiting how much of A2’s product is getting to the key China market. Why a Democrat ‘Blue Wave’ rocketed and then rocked New Zealand electricity stocks After winning the Presidency and the House of Representatives in November, the Democrats secured a ‘Blue Wave’ (winning the Presidency, Senate, and House of Representatives) in January with unexpected victories in both Georgia Senate runoffs. The improved prospect of President Joe Biden being able to implement his green infrastructure plan compelled some to pile into clean energy investments.

One channel for this investment were two ETFs that track the S&P Global Clean Energy Index. This index contains 30 companies from around the world which are involved in clean energy-related businesses, including New Zealand’s Meridian Energy and Contact Energy. As investment money flowed in, the ETF managers were forced to purchase Meridian and Contact shares in large volumes. Because of Meridian and Contact’s relatively small size and particularly their low liquidity (how many shares typically trade on the market), short-term demand substantially exceeded supply. Meridian and Contact’s share prices jumped +27% and +21% in a week. Share prices then quickly gave up these gains as ETF demand faded. Obviously buying an investment at a high price only to see it fall sharply afterwards is not good for any investor. This is what the surge in the clean energy ETF buying caused. This led S&P Global, which manages the S&P Global Clean Energy Index, to change how it will be constructed. We expect these changes will mean Meridian and Contact will have a lower weighting in the index going forward, and the clean energy ETFs, who were forced to buy the shares at high prices, will now be required to sell at much lower prices. This decision has already impacted Meridian and Contact’s share prices. As at the end of February they’re down -32% and -38% respectively from their early January peaks. The volatility in the share prices of Meridian and Contact is an example of how, at any time, stock prices can diverge from underlying value.

Economic outlook remains robust The outlook for economic activity and company profits remains robust. Vaccine rollouts continue around the world. Israel continues to lead the way with 55% of the population having received at least one dose of a vaccine as at 1 March. The UK at 30% and United States at 15% are the leaders of the major economies. The early evidence is positive, suggesting that vaccines are at least as effective as the clinical trials concluded. Policymakers (governments and central banks) whose actions have underpinned economies over the past year, remain committed to providing substantial support. Central banks are bound to ultra-low short-term interest rates, and supporting government spending with quantitative eas-

if you’re new to investing please see Forsyth Barr’s introduction to investing guide available at www. forsythbarr.co.nz/intro-to-investing/ or to discuss your investment options please contact Andrew Wyllie, an investment 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 does not take any of your personal circumstances into account. For personalised ﬁnancial advice, contact Forsyth Barr for an overview of the services we can provide.

ing (literally digitally printing money). Governments are injecting these funds into economies, with the United States leading the pack. Most US citizens received US$600 cheques from the government in January (which, not surprisingly, boosted retail spending). And President Biden is pushing for a further US$1.9 trillion package, which includes further US$1400 direct payments to most people, and an extension of the unemployment benefit topup.

Cautiously optimistic It’s been an extraordinary twelve months for investors. In February last year equity markets hit record highs. In March, market panic kicked in and we saw the fastest bear market in history (defined as a 20% or more decline in equity prices). Then, nearly as quickly, equity markets started to recover, and today they are back near record highs. We recognise that today asset prices are not cheap by any historical reference, and levels of speculation and

exuberance in markets are high. These historically have not been consistent with high investment returns, and we do expect returns are likely to be lower than what we’ve seen over the past decade or so. This report covers the three months ended 28 February.

Looking at off-farm investments?

When you are thinking about your investment options, talk to Forsyth Barr To get personalised investment advice and portfolio management specific to your investing needs, talk to Investment Adviser Andrew Wyllie in confidence on (03) 365 4244 or email andrew.wyllie@forsythbarr.co.nz

CHC6189-02 - March 2021

Andrew Wyllie ❚ with Forsyth Barr ❚

April 2021

CANTERBURY FARMING

Another successful ﬁeld days Yet another success for the young members of the farming community, as they pull off another triumph at Kirwee.

❚ with rob Cope-Williams The website suggests the South Island Agricultural Field Days are in part to teach our young rural based people skills that will carry them through to greater things. Judging by the organisational skills shown by the small committee, I suggest that has certainly been achieved. With the locals doing the extravaganza every two years they do have time to regroup and build on what they have already done, and in true kiwi style, it does get bigger and brighter every year. While A&P shows fight for exhibiters and crowds, the Field Days seem to have more and more exhibits every time. Possibly because they have hit on the obvious, people want to see machinery working, not just sitting in a paddock gathering dust from the few who strayed into that area. Before I get any hate mail, I acknowledge that the machinery area at a A&P show is only part of the main event, and that it is designed to give businesses a chance to talk with regular and prospective customers. I also acknowledge that it would be totally impractical to start moving massive machinery around show grounds, let alone finding areas to do the demonstrations. Yes, different events for different audiences and different reasons.

Practical: SiAFD’s success is in part due to the machinery demonstrations it puts on.

However, I again congratulate the organisers of the Field Days for what they achieve. Those not in the know must be very impressed by the timing of the crops that are subject to the demonstrations. It is hard enough to get any crop to peak at the right time with the climate changing ever y season, but of course our small team of committee members have done a deal with irrigation businesses to ensure much

of the risk is taken care of. In my view the future of farming is in great hands if the Field Days are anything to go by. These are the youngster, I can call them that at my age, who will take the farming industry firmly into the technical world that is upon us. Interesting when chatting with our future industry leaders just how focused they are and what amazing knowledge they have.

❚ with John Arts

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Helping Osteoarthritis part 1 I regularly find myself buried in scientific research always looking to improve both my products and the advice I give. Ultimately it is the real benefits people get that is important. If the best research cannot be translated into health benefits then it is of no value. One of the main differences between orthodox medicine and nutritional medicine is that, for good reasons, medical treatment is generally limited to those medications that are registered treatments using drugs that have gone through many years on testing. In nutritional medicine we first gain an understanding of the disease processes. We then identify natural compounds that help. With osteoarthritis this means adding compounds most importantly quality chondroitin at 800+mg daily with glucosamine to impact the actual disease processes. Chondroitin is so effective that it is now available on prescription in Europe. Once we have helped correct faulty disease processes we then focus on reducing inflammation, the cause of much of the pain and mobility loss. We identify dietary changes and supplements that can help reduce inflam-

mation within the joint capsule by adding curcumin from turmeric and Omega 3 from fish oils. The outcome of improving joint function and reducing inflammation is less pain and increased mobility. I spoke with a client I have been helping for six months with knee arthritis. I put him on my nutritional medicine knee osteoarthritis programme and he reported that his knees are less painful, have greater flexibility and do not click as much. Of course I am delighted for him to be feeling better, but this comes as no surprise as this is a typical response for those I help with knee arthritis. The key to any nutritional therapy is to work to a personalised programme with regular reviews. 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

Quite frankly I have heard of children operating combine harvesters that I would be able to work out how to start. The future of our industry will never look anything like the past, and thankfully so in many ways, so it is very pleasing that there are those who will grasp the nettle and run with it. Take a bow organisers, as you would say “You Rock guys”.

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CANTERBURY FARMING

April 2021

Smart Paddock Weigher wins Innovation award at ﬁeld days Judges were unanimous in their decision to award Frizzell’s Smart Paddock Weigher the 2021 Agri-Innovation award at the South Island Agricultural Field Days in Kirwee.

❚ Article supplied by SIAFD

The three-person panel of industry experts were extremely impressed by the new technology which allows farmers to weigh young livestock in the paddock, therefore offering the possibility to better manage the individual needs of the animal. “Whenever you’re taking animals away from the paddock, they’re not doing what you need them to do, which is grow, however with the Frizzell’s Smart Paddock Weigher right there in the paddock, the animals continue to put on weight in a relatively stress-free manor, whilst the farmer is able to gain all the information they need,” judge Neil Baxter said. “Rather than treat all animals as the same, this allows you to offer individual solutions to a herd,” Baxter said. “There’s no doubt this product can have a positive im-

pact on the animal’s health and well-being as well as labour and cost saving for the farmer,” said Baxter. The towable unmanned scales entice livestock onto the platform with the promise of grain and nuts by way of an automated feeder. It then reads the RFID tag and records the animals weight and monitors the herd weight performance. Animals can visit anytime but will only be permitted a predetermined rate of feed during any 24-hour period. “Farmers can find that significant labour is required to move stock to a weighing area to weigh stock manually and because of the time and cost involved animals are never really weighed at optimal times which results in a loss of production, delayed notifications of diseases or poor pasture management decision making, so we’re hoping

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Portable: Frizzell’s Smart paddock Weigher took out the Agri-innovation award at the 2021 South island Agricultural Field Days. to counter all of those with the Smar t Paddock Weigher,” product designer Alistair Frizzell said. STOCK EZY’s flow control gate picked up the runners up award, after developing a real ‘Kiwi number eight wire’ solution to the bottle neck often experienced in sheep yards.

Sean Belkin designed the Flow Gate Control after being frustrated whilst drafting livestock and battling with stock in an effort to keep them flowing consistently. He remembers experiencing the same issue 40 years ago as a youngster so decided to try and find a solution.

April 2021 CANTERBURY FARMING

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CANTERBURY FARMING April 2021

Taking charge in cooler days to come Cold weather slows everything down, especially the chemical reaction happening inside your farm batteries. In fact, at 0degC, a car’s battery loses about 35% of its strength, but your engine requires so much more power to start. supplied by ❚ Advertorial ❚ Newlands Group Before winter gets a chilly grip on your battery, have your electrical system tested, including your battery and alternator. Also, check the battery using a voltmeter to make sure it’s in good condition. Your voltmeter should read 12.4 volts or higher. Keep the battery fully charged throughout winter using a battery charger or maintainer, especially if you make frequent short drives (less than 2km). It’s important to properly maintain the components around your battery too. Make sure cables, posts and fasteners are in good shape, and check battery connections to confirm they are clean and tight. Use a wire brush to clean off any corrosion and secure the battery to the battery tray to prevent excessive vibration. Should your battery need replacing you can now purchase batteries online and have them delivered. Your local Canterbury company Newlands Auto Electrical has been in business for more than 86 years and offers a very wide range of batteries for sale at batteryshop.nz. If you stop into a branch in Rolleston, Ashburton or Timaru they will test your batteries for free. With auto electrical technicians at each branch they can check other issues if the battery is not a fault. Newlands mobile fleets can visit on-

Newlands will come to you for auto electrical repairs.

farm should you have battery or auto electrical issues. Their service vehicles are well stocked with tools and parts to sort many common issues and their branches stock a large range of auto parts making sure you get you back in action quickly. A large percentage of all breakdowns are due to the battery and in the winter continuous use of windscreen heaters or the air conditioning system takes power and makes heavy demands on the battery. Having your air conditioning checked in the winter is a smart idea, not only for preserving your battery but it may mean you avoid a wait occurred when customer demand is high in spring. Call Newlands again! They can service and repair all vehicles and machinery air conditioning at their yards or onsite. You may want other electrical systems sorted at the same time such as; electric fence repairs, solar systems and weigh scales. They have electric

‘

Having your air conditioning checked in the winter is a smart idea.

fence batteries, solar panels, regulators and invertors all available as well as the expertise to check and/or set up the ideal system for your needs. Newlands technicians can also check and replace lights on vehicles and farm machinery – another good thing to address before temperatures fall and the days become shorter. Book or enquire online or phone 0800 153 771 for a booking, advice or more information.

April 2021

CANTERBURY FARMING

Sleek square-balers for big work A large-square baler at a Case IH dealership in Canterbury is expanding the region’s line-up of high-density baling machines.

❚ by Tim Fulton The Case IH LB436 HD large square baler makes the most of baling windows, giving contractors and farmers maximum bale density and high-quality bales. Built to perform in tough conditions, the baler delivers the highest bale density in the Case IH large square baler line-up, Case IH Product Specialist Ben Payne says. The baler’s chamber is 16% longer and provides up to 50% more plunger force than other Case IH models. A robust compression system and fully automatic bale density control system help achieve higher, more consistent densities and bale weights — even in changing paddock conditions. Cochrane’s Canterbury are the first dealership in New Zealand to run the Case IH LB436 HD large square balers for its large and varied customer base. “With the demands on farmers and contractors, equipment needs to deliver more capacity and density to drive the bottom line,” Cochrane’s sales manager James Cochrane says. “With a simple, innovative design and advanced technology to boost productivity, producers can rely on this new high-density baler to drive efficiency on their operation.” A large-density ring uses seven hydraulic cylinders to apply pressure to the chamber for increased density and optimum bale shape.

A large-square baler at a Case iH dealership in Canterbury is expanding the region’s line-up of high-density baling machines.

Adding to the machine’s overall durability, a heavy-duty frame is designed to withstand high-density loads and maximize uptime. Maintenance is simple as baler adjustments can be made quickly and easily, with ground-level access for routine service (includes slide-out knife drawer, swing-out doors, twine). The two-speed gearbox provide easy startup and smooth power flow and maximizes

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manoeuvrability, dual-axle hydraulic suspension for a smoother ride at high speeds and LED work and service lights for maximum operator comfort and productivity through long hours. The LB436 HD large square baler is equipped with ISOBUS Class 3 integrated automation, providing ease of use, while the intuitive AFS Pro 700 display puts important information, such as bale weight and moisture, at the operator’s fingertips. Feedrate Control enables the baler to run at optimal performance by controlling the speed of the tractor and provides two running operations; Charge Control which automatically slows or speeds up the tractor without operator input to run at full capacity, and Slice Control, by which the operator determines the desired number of flakes. The baler automatically adjusts ground speed to reach the target.

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CANTERBURY FARMING

April 2021

Weed chipper research earns prestigious award A paper capturing the research behind a unique mechanical weed chipper developed by Australian universities could provide an alternative to using herbicides for weed management in cropping operations in New Zealand.

❚ by Kent Caddick

like mechanical hoes, coupled with commercially-available sensing technology to detect and chip out weeds in fallow fields. It is the first mechanical system capable of site-specific weed control in Australian grain production. UWA agricultural engineer Dr Andrew Guzzomi, who led the engineering design of the weed chipper, said the award came after performing extensive research, development and testing with a multidisciplinary team and industry partners. “I’m excited by the prospect of seeing these machines being put to use by Australian farmers who need alternatives to herbicidal weed control,” Guzzomi said. Dr Walsh said receiving the award from such a prestigious body spoke volumes for the technology and the work of the team involved.

The University of Western Australia (UWA) and the University of Sydney (USYD) received the Most Outstanding Paper Award for publications in the Weed Technology journal for their work. Project leader, USYD Associate Professor Michael Walsh, accepted the award on behalf of the project team at the Weed Science Society of America’s virtual 2021 Annual Conference in February. The paper, published in the Weed Technology journal, highlights the innovativeness of the unique mechanical system that provides an alternative to using herbicides for weed management in largescale cropping operations. The weed chipper uses specifically-designed rapid response ‘tynes’ that behave

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New approach: The weed chipper uses speciﬁcally-designed rapid response ‘tynes’ which behave like mechanical hoes, and is coupled with sensing technology to detect and chip out weeds in fallow ﬁelds. “It demonstrates the merit of the innovation and the potential impact that mechanical non-chemical approaches could have in helping combat the persistence of tough-tokill herbicide resistant weeds,” he said. The award is the most recent accolade for

the weed chipper, which also won the Rio Tinto WA Innovator of the Year emerging category award in 2019. The next milestone for the weed chipper will be its commercial release onto the market, expected later this year.

April 2021 CANTERBURY FARMING

Misconceptions when it comes to using safety knives While most farmers and businesses are aware of ‘safety knives’, many are still not using them due to some common misconceptions.

❚ Article supplied by Martor Australia

Using knives comes with risks and we have all heard the horror stories of accidental cut injuries, or worse, experienced them yourself. Just recently, we had a customer who had been reluctant to change over from the utility knives they had been using because they had never had a reported cut injury. They contacted us when within one week they had not one, but two cutting accidents using their utility knives. These are just a few common misconceptions surrounding the use of safety knives: • We don’t need to use safety knives because we haven’t had any cuts for a while This is one we hear all the time and that’s great news, but having not had any cut injuries in the past doesn’t guarantee that you won’t in the future. If a dangerous knife or tool is being used you are increasing the likelihood of it happening and it is a risk that needs to be addressed immediately. Think of it this way, you haven’t had a car accident in a while but that doesn’t mean you can stop wearing your seat belt or cancel your car insurance.

Safety first: Misconceptions can deter people from using safety knives.

• Safety knives are harder to use than regular knives. In fact, safety knives require one less step than a standard utility knife to use. A regular knife requires you to engage the blade, perform the cut and retract the blade manually. With a safety knife, you also engage the blade and perform the cut, but the last step is eliminated as the safety feature retracts the blade back into the handle when contact is lost with the cutting material. • Safety knives are too expensive When you way up the direct and indirect cost of injury on business, individuals and the community spending slightly more on a

safety knife is well worth the initial outlay. The level of costs can vary with the severity of an injury and while direct costs are easy to measure the indirect costs have a far greater affect. It is estimated that for every dollar spent in direct costs associated with workplace injury there are another $5-7 in indirect costs. • Safety knives don’t cut the wide variety of materials that regular knives do This is true, a utility knife will cut everything, including the user. A safety knife will

cut all general industrial materials, you just need to be using the right tool for the job. For example, a person cutting shrink wrap all day will be using a very different safety cutter than a person who is cutting triple wall boxes. While the above misconceptions are all legitimate concerns, with a little insight and research you can see that there is not any reason why a safety knife cannot be used in replacement of a standard utility or open bladed knife.

CANTERBURY FARMING

April 2021

Satellite service a ‘game changer’

A new satellite internet service could be a game changer for rural New Zealanders according to one tech expert running the new system.

❚ by Kent Caddick Starlink, the Elon Musk-led company, is now delivering its initial beta service in New Zealand as part of its expansion to near global coverage in 2021. According to Starlink, users can expect to see data speeds vary from 50Mbit/s to 150Mbit/s and latency from 20ms to 40ms in most locations including rural New Zealand which can suffer from quality internet coverage. “As we launch more satellites, install more ground stations and improve our networking software, data speed, latency and uptime will improve dramatically,” Starlink said. Latency is the time it takes to send data from one point to the next. When satellites are far from Earth, latency is high, resulting in poor performance for activities like video calls and online gaming. Starlink satellites are over 60 times closer to Earth than traditional satellites, resulting in lower latency and the ability to support services typically not possible with traditional satellite internet. One of the first New Zealand companies to pick up on the new technology is software developer QuipCheck. QuipCheck Technical Director Stephen Weir said he was excited to receive his Starlink terminal. “When it arrived I tore open the box. It was

Out of the box: QuipCheck Technical Director Stephen Weir with his newly-arrived Starlink satellite terminal.

‘

The Starlink satellite internet service could help farmers who currently struggle to get any kind of

all plugged in already and just needed power and a view of the sky. I was up-and-running in about 10 minutes” Weir said. “While SpaceX call it a ‘better than nothing beta’, the first speed test measured 208Mbps down and 38Mbps up, which is more than adequate for watching YouTube and Netflix.

“The Starlink satellite internet service could be a game-changer for farmers who currently struggle to get any kind of fast internet.” Starlink is available for purchase directly from starlink. com. price is $913 for the hardware (including shipping and GST) and the service will cost $159 per month.

fast internet. Stephen Weir Technical Director, QuipCheck

April 2021

CANTERBURY FARMING

Halter wins Agri Magic Smart Farming award The potential for positive environmental impacts, improved animal health awareness, and on farm financial gains was what drew the judges of the South Island Agricultural Field Days Agri Magic Smart Farming Award to Halter Cow Collars.

❚ Article supplied by SIAFD

The judging panel of three industry experts were impressed with collars, which they say demonstrated an ability to integrate quickly into a dairy farming system and offer benefits to multiple layers of farming practices. “The ability to tell a cow that bad weather was coming, sending it to the feed pad and ensuring it has both shelter and wasn’t having a negative impact on the grass cover or the ability to keep it out of waterways was something that really impressed us,” judge Neil Baxter said. “There are a handful of other collars on the market that can indicate that a cow has poor health or other issues, but to have a range of benefits is quite unique.” Baxter also mentioned that the collars’

ability to offer significant value to the purchaser from day one was the reason it rose above the competition. “There were some great entries this year,” Baxter said. “But some of them are still finding their place in the market. Whereas the Halter Cow Collars are a real success story, they finished runners up in this competition two years ago, so it’s great to see they’re continuing to develop and add value to the dairy industry.” Halter CEO Craig Piggott said to win this Agri Magic Smart Farming award is great recognition for the hard work that goes in each day from our team and it’s pleasing to understand how the judges valued what Halter offers. “Our business is looking at the next ar-

Award winning: Halter Cow Collars was awarded the Agri Magic Smart Farming Award at the recent South island Agricultural Field Days. ea to expand into which is a major reason we weree at the South Island Agricultural Field Days. “We’re really looking forward to meeting with farmers down South this week and chatting about how Halter could help to drive their on-farm performance.” Halter picked up $1,500 thanks to Agri Magic, while Canterbury company Grounded collected $500 for claiming second place.

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CANTERBURY FARMING April 2021

Choosing the right effluent storage Having a well-designed and constructed effluent storage facility will save you time and money.

❚ Article supplied by DairyNZ

The key is good planning and working with the right people. The benefits of a well-designed storage system include increased flexibility around irrigating, effective utilisation of nutrients and water, reduced risk of effluent non-compliance, and environmental protection. Lined ponds and above ground tanks are the two options available when choosing an effluent storage system for your farm.

Above ground tanks Pros: • Can usually be installed year round • Little costs associated with earthworks • Not significantly affected by water table Cons: • Can be more expensive than lined ponds • May require a building consent from district council • Some size restriction on what is available commercially

Lined ponds Pros: • Less cost than above ground options

• Can be less intrusive on the farm • More accommodating of shape and design • No size restriction Cons: • Wider range of costs depending on lining options and earthworks needed • Installation can be weather affected especially for clay lined ponds in some wetter parts of the country • A well designed storage pond is sealed to avoid leakage to groundwater, allows for ongoing operation and maintenance, and is appropriately sized for the volume of effluent produced now and in the foreseeable future, and is compliant with regional and district council and Building Act requirements. • Liners can be formed from compacted clay, concrete or specifically manufactured materials such as polyethylene (PE), polypropylene (PP), or rubber (EPDM).

from off-site • May require periodic re-lining of the pond after cleaning • Not favoured by all councils, you need to check first

Concrete

Selecting the right liner: Compacted clay Pros: • May have suitable clay on site for pond construction Cons: • Requires soil testing by a professional Requires technical expertise to compact clay correctly to achieve sealing requirement • Cracking can appear when ponds are empty, risk of leaking • Warranties may be more difficult to obtain • Potentially high cost if importing clay

Pros: • Less earthwork preparation required than with clay liners • Flexible to withstand ground movement • Withstands mechanical damage Cons • Relatively new product for effluent ponds in New Zealand • Warranties may be difficult to obtain, engineering expertise is essential • Moderate to high cost

Synthetic Pros: • Good range of liners available • Good warranties available • Installation allows for gas and ground water dissipation Cons: • Some variation in quality of synthetics on the market • Moderate to high cost

CANTERBURY FARMING

April 2021

Applying effluent as a fertiliser Around 95% of dairy farms discharge effluent to land under the permitted activity rule, while the remainder work under consents to discharge treated effluent to water.

❚ by William Milnes Farm dairy effluent is a natural, dilute liquid fertiliser. It contains nitrogen (N), phosphorus (P), potassium (K), magnesium (Mg), sulphur (S) and trace elements that you’d normally pay for to have applied to pasture. Think of dairy effluent as a resource, not waste. The average dairy herd (244 cows) produces the same amount of effluent as a town with about 3400 people. When spread over land and applied in timely fashion, the effluent of 100 cows can save farmers up thousands of dollars in fertiliser a year. This saving could be significantly higher for high input farms (for example, farms feeding supplements). Applying the maximum amount of nitrogen from effluent allowed per year (150 kg per hectare for grazed grass), dairy shed effluent also provides the following approximate amounts of nutrients: • 20 kg of phosphate per hectare • 117 kg of potassium per hectare • Approximately 20-30 kg of sulphur per hectare • Smaller amounts of magnesium and calcium

Applying effluent Effluent management systems in place on your farm should give you enough flexibility

Alternative: Efﬂuent can be applied to farmland as a substitute for fertiliser. photo by Nevada

so that you don’t irrigate when soil is waterlogged (too wet to absorb the effluent) and if there is an equipment breakdown. Remember to cover water troughs when irrigating effluent. Protect waterways on your farm by: • not irrigating within 50 metres of a water supply • leaving a strip of non-irrigated land next to all watercourses – at least 20 metres wide • ensuring that spray drift isn’t getting into nearby streams or rivers • Soil acts as a living filter and treats the applied effluent by changing it:

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• physically – filtering out effluent particles, breaking them down and incorporating them into the soil structure • chemically – absorbing nutrients and making them available to plants • biologically – harmful micro-organisms (such as bacteria) present in the effluent are retained by the soil, or are killed when the effluent dries or when they become exposed to sunlight. However, don’t apply too much as soil can only filter so much effluent at a time. It’s important to match the irrigation depth to the capability of the soil. Land with impeded or artificial drainage,

high or rising water tables or slopes of greater than 7 degrees have a higher risk from over-application, and therefore application depths should be adjusted accordingly to reflect soil and weather conditions. Too much effluent can: • kill pasture – especially where effluent has ‘ponded’ on the soil surface • pollute nearby streams and rivers – where it runs off paddocks into waterways. • pollute ground water – by seeping too deep into the soil • be an ineffective use of nutrients - by seeping past the root zone before the plant can utilise it Working out how much effluent to irrigate Although effluent contains many nutrients which can impact on your farm management, it is the environmental effects of nitrogen that determine how much you can irrigate onto land. Too much nitrogen can reduce pasture performance and reduce water quality in neighbouring waterways. If you know exactly how much nitrogen is in effluent, you can work out the most effective application rates for your land. Each effluent application must not be more than 25 millimetres deep. How deep you irrigate effluent over an area will depend on how much nitrogen you want to apply.

CANTERBURY FARMING

April 2021

Slurry Tankers:

Why a full chassis is essential The chassis is the backbone of your slurry tanker – it needs to be strong to support the body.

lloyd Thomas ❚ by Dairy Efﬂuent Management ❚ Nevada Specialist ❚

The bigger the body, the stronger the chassis needs to be to carry the weight. For slurry tankers over 8,500L it’s essential to have a full chassis to maintain a separation point between the chassis and tank. Here’s why. The chassis not only carries the tank but plays an important role in reducing additional stresses. A full chassis means there is a separation point between the chassis and the tank. As the tank is a pressure vessel, every load is already experiencing an immense amount of stress from vacuum when loading, and then pressure when pumping out to spread. Too much pressure, and there is a risk of implosion, hence it is important to ensure any racking and movement is not transmitted through to the tank, to cause unnecessary additional stress. A full, independent chassis also means the tank can be fully galvanised. The tank and chassis are each made from different types and grades of steel. Where the chassis is deliberately not galvanised to preserve its integral strength, the tank needs to be galvanised to maximise strength and integrity. Galvanising is widely regarded as the ul-

All Nevada slurry tankers over 8.5 tonne are manufactured with a full chassis as standard.

timate form of corrosion protection, lasting several decades longer than painted products. Best practice is for the tank to maintain a fully cylindrical shape with dome ends (no recesses), and to galvanise inside and out. Effluent is abrasive, and will corrode and rust the inside of the tanker if it gets stuck in corners and crevices, or if the inside is left untreated. The outside is important to protect from deterioration due to environmental elements. Once the integrity of the tank is compromised, its lifespan will be severe-

ly reduced and there is a risk of implosion from pressure. Having a full chassis is also important for carrying implements on the back such as a trailing shoe or injector unit as these are heavy. Without a full chassis they will cause strain on the drawbar, once again reducing the longevity of your machine. Just as a slurr y tanker becomes an essential component for operating your ef fluent management system, a full chassis is an essential component of

the slurr y tanker. It provides the strength required to operate the machine effectively, while also protecting the tank itself from unnecessary damage, therefore extending the life of the machine. This has been proven by Nevada manufacturers over the past 60 years, and the reason why all Nevada slurry tankers over 8.5 tonne are manufactured with a full chassis as standard.

New Zealand’s Dairy Effluent Management Specialists | nevadagroup.co.nz | 0800 464 393

April 2021 CANTERBURY FARMING

Gypsum is one of those rare materials that performs in all categories of soil treatment: an amendment, conditioner and fertiliser. It is useful in the transition period in dairy cows 2 – 4 weeks pre & post calving, and can be used as an anionic salt to counteract the effects that high potassium & sodium concentrations have on increasing hypocalcemia. Gypsum, a readily available form of calcium, is 100 times more soluble than lime and is more suitable for the digestive system during this period. Gypsum in fertilising Soil tests for many areas in New Zealand show that sulphur deficiency is wide spread. Although the importance of this element is often overlooked, sulphur is needed in at least equal quantities to phosphorus. Many responses in crops are sulphur responses arising from the sulphate radical (SO4‑‑), rather than phosphate responses. • Readily dissociates into free calcium ions (Ca++) and sulphate ions (SO4‑‑), major elements in plant nutrition • Has an approximately neutral pH and can be used in heavy applications without causing undue alkalinity in soils

Gypsum in water savings • Promotes water infiltration, retention and conservation • Allows water to penetrate the soil without forming puddles or water logging • Conserves water by stretching intervals between irrigations • Tests show that farmland treated with gypsum requires up to 33% less water than soils without recent gypsum application

Gypsum in soil conditioning • Breaks up soils compacted by sodium and clay, and compounded by farm animals and machinery • Reduces cracking and compaction following irrigation and retards soil crusting • Allows soil to dry more quickly after rain or irrigation so that it may be worked sooner • Decreases energy requirements for tillage • Binds organic matter to soil and checks soil erosion • Enhances friendly bacterial action and discourages plant diseases related to poor soil aeration • Conditioned soil allows for deeper, healthier root development and water penetration

Gypsum in amendment • Displaces sodium binding clay soils • Reduces high soil aluminium levels • Suppresses the soil acidification effects of growing crops and the prolonged use of acidifying fertilisers

For further information please contact your local farm supplier or Telephone: 0800 100 442 Visit our website at www.gypsum.co.nz

CANTERBURY FARMING

April 2021

Gypsum and dairy factory wastewater irrigation Dairy Factory wastewater (DFW) can be a useful resource for pasture and crops but high sodium levels in the wastewater may accumulate in soil. supplied by ❚ Article ❚ Winstone Gypsum Excess sodium can be detrimental to pasture and crop growth since it causes low soil water availability and poor soil structure. Soil structure effects may reduce the ability of the soil to receive DFW before surface ponding or runoff occurs. The soil has become hydrophobic. Gypsum is an ideal material to address any build-up of sodium in soils receiving DFW, extending the number of years that affected land remains useful for receiving wastewater. Gypsum can also enhance soil structure, water infiltration and drainage in the face of high sodium levels. A gypsum programme should ideally start before critical sodium levels are reached. Gypsum is hydrated calcium sulphate. Calcium from gypsum replaces sodium in the soil. The sulphate allows the sodium to be effectively leached out of the soil. The soil then has more ability to flocculate and form stable aggregates to improve drainage

and soil quality. The combination of calcium and sulphate effectively address sodium. Calcium release from the partially soluble gypsum is faster than from lime (calcium carbonate). Lime is also unsuitable in many cases as it acts to increase soil pH, pushing out acid hydrogen rather than sodium from the cation exchange. Although DFW can be acidic, the effect of adding it to the soil can increase soil pH over time, meaning that a lime application would simply add to a future issue of an overly high soil pH. Gypsum can maintain a higher electrical conductivity near the soil surface for a prolonged period of time, resulting in improved infiltration of sodium rich DFW, thus further improving the ability of soil to receive the wastewater without ponding or surface runoff. Gypsum is typically and most easily applied as a broadcast application to the soil surface. This is also the recommended method if soil crusting is to be addressed. Incorporation of gypsum into the soil is not

generally required as the gypsum can work through the profile of most soils. Gypsum can be applied annually or every two or three years (at higher rates). Many soils will have quite high thresholds for sodium before soil structure is affected; this depends on the balance of the monovalent cations (sodium and potassium) with calcium and magnesium, the electrical conductivity of the soil. It also appears that soil resilience to sodium is increased by the organic content (lactose etc) in DFW (Cameron et al., 2003). Application of gypsum will be most effective if a programme of application commences before the soil structure is impacted by the sodium and potassium. Regular soil testing will assist in calculating gypsum requirements. If sodium levels are high and increasing, gypsum application should be increased accordingly. A logical approach is to calculate gypsum requirement based on the annual increase in exchangeable sodium and potassium. Another approach is to identify the level of reduction desired in sodium and po-

tassium to achieve reasonable or historic soil levels. Drainage must be adequately addressed for gypsum to be effective at removing sodium. If a drainage issue is related to high sodium and clay dispersion, gypsum could assist, otherwise deep ripping, earthworks or artificial drainage may be required. Gypsum may not be suitable for some soils with a high subsoil pH (>7.0) where the calcium could form calcium carbonate and reduce drainage. Gypsum can reduce surface runoff of phosphorus and other nutrients by improving water infiltration (through soil structural and chemical changes), by binding organic matter and soil particles together better and by increasing the ability of soil to drain and thus cope with larger water inputs. Gypsum also increases the binding of phosphate to soil minerals including calcium and reduces the susceptibility of all forms of phosphorus to drainage losses. The multiple modes of action mean gypsum can be effective in a wide range of soil types.

April 2021

CANTERBURY FARMING

Substantial R&D investment for dairy to meet climate goals A robust R&D plan is needed to support climate change solutions while maintaining New Zealand’s position as a world-leading sustainable dairy producer.

❚ Article supplied by DairyNZ

That’s according to DairyNZ which is calling for a long-term plan and ongoing investment into climate change science and solutions, in its submission on the Climate Change Commission’s carbon budgets proposal. This would include targeted research and development of new technologies to reduce biogenic methane emissions. “To accelerate the changes underway already, we need to work with Government, our research partners and other sectors,” DairyNZ chief executive Dr Tim Mackle said. “Solutions, while keeping farmers at the top of their game, will require support and investment from the Government and agriculture.” He said the transition to a low emissions economy must be grounded in science, economic and social considerations. In its submission, DairyNZ said that the draft carbon budgets does some of those things, but not all. Positives include the split gas approach, the He Waka Eke Noa partnership and investment for better rural digital connectivity. How-

ever, DairyNZ holds concerns – including the proposed shifting of the goalposts to higher than the Zero Carbon Act, the pathway for biogenic methane being unrealistic and the Commission’s underlying assumptions requiring further work. “Kiwi dairy farmers are world-leaders in sustainable and low emissions dairy products, but we need to continue making improvements behind the farm gate to keep pace with changing community and consumer expectations.” Dr Mackle said farmers are committed but need practical approaches, with pragmatic timeframes. “Farmers also want confidence the goalposts won’t continue to shift, if they make significant investment and changes to how they farm.” DairyNZ is also concerned the recommended carbon budget goes beyond the Zero Carbon Act – lifting the reduction of methane from 10 percent to 13 percent. “This effectively increases the scale of our challenge. The Commission’s pathway for biogenic methane also requires significant changes on farms and rapid technologi-

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cal breakthroughs, that we are not confident will be achieved in such a short timeframe. “We are fortunate the split gas approach better characterises the difference between

long-lived and short-lived gases. This sciencebased target recognises farmers do not need to reduce biogenic methane emissions to net-zero to do their part to reduce warming.”

CANTERBURY FARMING

April 2021

Tried and tested effluent pumps Sabre Effluent Pumps, as represented by Pump & Valve Specialties, are one of the leading suppliers of progressive cavity pumps to the dairy effluent sector in New Zealand. supplied by ❚ Advertorial Pump & Valve Specialties Ltd ❚ Over the past 10 years Pump & Valve have supplied over 1000 progressive cavity pumps into the New Zealand market, in fact the very first Sabre pump we supplied to the dairy sector 10 years ago is still running with its original rotor and stator! All the Sabre effluent pumps are assembled and tested, with clean water, in either Christchurch or Auckland, and are supplied with a test sheet so that you can have the confidence that your new effluent pump will do exactly what you require it to do, day in and day out. Our Christchurch and Auckland branches carry substantial stock of standard spares, including stators, rotors, and mechanical seals. We also have full workshop facilities to ensure that your pump is always at peak efficiency. Sabre pumps are a fantastic balance between your initial capital investment and operational efficiency. The combination of a nitrile stator and a hard chrome plated stainless steel rotor offers a hard wearing pump-end ideally suited to the disposal of dairy effluent. All the pumps are fitted with silicon car-

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April 2021

CANTERBURY FARMING

Food security, access to the fore The importance of food security and people having access to fresh and healthy fruit and vegetables was highlighted at the launch of the International Year of Fruits and Vegetables at Parliament recently.

❚ by Kent Caddick Horticulture New Zealand (HortNZ) Chief Executive, Mike Chapman said access to fresh fruit and vegetable growers is essential for healthy people. “What often gets forgotten is the vital role that the people who grow fruit and vegetables play in ensuring fresh fruit and vegetables are on the table,” Chapman said. “Covid has shown us that we cannot rely on imports and has highlighted how lucky we are in New Zealand that we can grow most of our own food. We need to make sure that

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Chief Executive, HortNZ

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CANTERBURY FARMING April 2021

Hunters should stick to the basics The Firearms Safety Council is reminding hunters to play it safe during the roar and game bird season.

❚ by Kent Caddick

Safety first: Hunters are being reminded to play it safe during the roar and game bird season.

Council spokesperson Bill O’Leary said safe use of hunting firearms is pretty basic. “The roar and the game bird season will encourage thousands of hunters into the hills and swamps of New Zealand and the Firearms Safety Council of Aotearoa New Zealand thinks it is timely to remind hunters to be safe.” O’Leary said the media and the public tend to focus on the ‘failure to identify’ incidents but he emphasised that most incidents are the result of failure to observe basic rules such as always treating every firearms as loaded and pointing the firearm in a safe direction. “Analysis of incidents has identified potential causal factors. Continuing hunting when you and your hunting companions have separated, unlicensed shooters and illegal hunting are red flags and along with spotlighting have featured too frequently in shooting incidents. “Experienced shooters are not exempt from making mistakes. Bad habits and complacency have been linked to past incidents. “Each and every hunter needs to look

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• hard at their own and their mates’ attitudes and conduct and ensure that safety is the most basic of considerations when hunting,” O’Leary said. O’Leary is reminding hunters to follow some basic rules, including getting a firearms licence and permission to access and hunt on land, communicate your presence to other hunters, Know where your hunting companions are at all times, and Understand and observe the basic rules of firearm safety.

The Seven Basic Rules of Safe Firearms Handling • Treat every firearm as loaded: Check every firearm yourself. Pass or accept only an open or unloaded firearm. • Always point firearms in a safe direction: Always point the muzzle in a safe direction, especially when loading and unloading. • Load a firearm only when ready to fire: Load only the magazine after you reach

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your shooting area. Load the chamber only when ready to shoot. Completely unload before leaving the shooting area. Identify your target beyond all doubt Movement, colour, sound and shape can all deceive you. Assume colour, shape, sound, and shape to be human until proven otherwise. Check your firing zone: Think: What may happen if you miss your target? What might you hit between you and the target or beyond? Do not fire if others are in your firing zone. Store firearms and ammunition safely: When not in use, lock away the bolt, firearm and ammunition separately. Never leave firearms in a vehicle that is unattended. Avoid alcohol and drugs when handling firearms: Good judgement is the key to safe use of firearms.

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CANTERBURY FARMING

Feed your animals, not hungry pests An unusually high insect pressure saw spring-sown crops take a real hiding in some regions this season.

❚ Article supplied by Barenbrug

Now farmers about to drill new pasture seed are urged to plan for similar challenges or risk losing valuable feed. Between them, Argentine stem weevil, black beetle, black field crickets, porina, grass grub and springtails can make a meal of new grass and clover before you realise there’s a problem. Sowing perennial ryegrass seed with novel endophyte doesn’t give strong protection of the plant from insects until later in life, so even these cultivars can be heavily predated as seedlings. “That’s why it’s so important to scout your new grass paddocks before sowing, and see what insects are present, in what numbers,” agronomist Blair Cotching said. “Otherwise by the time the damage is done, it’s often too late to do much about it. Then you’re left with two outcomes – first, the difficult decision of whether to re-sow, which is costly in its own right; and second, the serious implications of not having feed available later in the season when you budgeted for it, because the insects got to it first.” Scouting pests early is especially important for farmers in areas which may once

Your choice: Which pasture would you rather end up with? The result of sowing bare seed (left) next to treated.

have been considered safe from certain insects such as black beetle. “We used to think black beetle was restricted to Tokoroa north, for example, but now we’re starting to see it reaching some concerning levels of abundance in places like Foxton,” said Cotching, who is pasture systems manager for Barenbrug. “Seed treatment is a must where the most damaging insect pests are expected

to be present, he says, and is a key part of a tiered approach to control, with other elements including insecticide applications and/or bait as required. “Seed treatment like Agricote Grass and Agricote Clover will help protect seedlings at their most vulnerable stage from being eaten by ASW, black beetle and grass grub,” he said. Adult ASW can kill ryegrass seedlings as they first emerge, particularly where dry conditions mean seedlings take longer to establish. Adult black beetle can also destroy newly sown autumn pasture, chewing through the base of emerging ryegrass plants and killing them.

Spray-drilled and undersown pasture is particularly vulnerable as the insect population is not controlled by cultivation. Treated seed will discourage grass grub larvae from feeding on seedling roots. But the treatment does not kill them outright, so if numbers are high and pastures have been undersown for example at lower rates of seed per ha compared with normal sowing (i.e. 10-15 kg seed/ha) it’s best to plan for additional grass grub control at sowing. Longer term, a minimal tillage programme can allow numbers to stabilise. Black field crickets can be very prevalent in areas where heavy clay soils have dried out with deep cracks. Populations of more than 10/sq metre are economically damaging; baits offer effective control. Springtails can damage newly sown clover and plantain in particular out of all proportion with their size, and if this is seen as a risk, it’s best to include an appropriate insecticide with the last herbicide spray out before sowing. “Pasture production losses from springtail infestation of up to 20% frequently occur and reductions in clover yield of up to 50% have been recorded,” Cotching said.

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CANTERBURY FARMING

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Vaccinations protecting animals As we struggle to fathom how we ended up in the throes of the Covid-19 pandemic, we’re reminded of the importance of vaccinations to protect us from life-threatening diseases.

Mark ross ❚ by ❚ CEO, Agcarm

The same applies to animals – to preserve their health and wellbeing as well as ours – due to the spread of disease between animals and humans. The World Health Organization (WHO) estimates that 60 percent of infectious diseases in humans are zoonotic, meaning that they can pass from animals to people and vice versa. Three out of four zoonotic diseases originate in wildlife. As well as affecting human and animal health, animal diseases are detrimental to livestock, wildlife and agriculture. They also result in revenue and trade losses. Up to 20 percent of livestock are lost to disease each year. Preventing animal disease through vaccination, nutrition, biosecurity, and good husbandry increases the availability of safe food by reducing losses and waste on the farm. Rapid diagnosis and treatment are essential because disease can’t always be avoided. For bacterial

diseases, the only current solution is antibiotic treatment. The global animal health sector invests approximately $1.8-2.7 billion per year in new R&D for better prevention, diagnosis and treatment. Vaccinating animals protects them from life-threatening diseases such as distemper, hepatitis, parvovirus and leptospirosis, which affect New Zealand animals. Leptospirosis is a zoonotic disease shared between rats, dogs, pigs, cattle and people. According to the Accident Compensation Corporation, New Zealand has one of the highest rates of leptospirosis in the world. It puts farmers, particularly dairy farmers, at risk as it can spread from infected urine in dairy sheds. It is also an occupational risk for meat workers, who can contract the disease in the same way. According to the New Zealand Veterinary Association, anyone in contact with cattle could be at risk. Many killer diseases have been kept in check by responsible animal owners maintaining vaccination programmes. Rabies, for example, is a completely preventable virus

that is fatal if left untreated. It kills more than 59,000 people each year, mostly children in Asia and Africa. If this isn’t tragic enough, the impact of the virus is estimated to cost in excess of US$6,000 million, according to the WHO. Many animals die of rabies. Its transmission to livestock reduces food productivity. Bovine rabies causes one million cattle deaths in Central and South America every year. Rabies is prevented by vaccinating dogs. Through research and pilot programmes, the World Society for the Protection of Animals found that vaccinating at least 70 percent of a community’s dogs creates ‘herd immunity’. This occurs when a significant proportion of the population (or herd) is immunised, providing a level of protection to unprotected individuals. Vaccinating a large proportion of dogs in a community breaks the cycle of transmission between them. It also prevents the disease from spreading to people. The World Health Organization, World Organisation for Animal Health, UN Food and

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April 2021

CANTERBURY FARMING

Conference focuses on sustainable future An international virtual conference that focuses on cultivating a shift towards more sustainable and ethical grazing systems will involve presentations from experts all over the world. supplied by ❚ Article Lincoln ❚ University Hosted by Lincoln University, the series includes six weekly online workshops, to take place between May 31 and July 5. Livestock production Professor Pablo Gregorini says the event is not to be missed, as no other scientific convention in the world offers such breadth of topic coverage. “We’re aiming to influence future theoretical and practical models of pastoralism with a series of talks from a wide range of experts,” Gregorini says. “Participants will be exposed to cuttingedge thinking and practice, with an international audience of scientists, academics, postgraduate students and policymakers, as well as farmers from around the world.” Discussions will centre on re-imagining models of pastoralism by referring to what Prof Gregorini refers to as ‘grazing in future multiscapes’. The ‘multiscapes’ include thoughtscapes (ways of thinking), landscapes (environments including soil, water and air), foodscapes (dietary perceptions and health), socialscapes (societal demands), and wildscapes (issues relating to interactions be-

Listen and learn: livestock production professor pablo Gregorini from lincoln University is encouraging farmers to join in a virtual conference focussing on sustainable and ethical grazing systems. tween agriculture and wildlife). Keynote speakers will cover subjects as diverse as system thinking, rangeland, grasslands, grazing management, ecology, indigenous development, agroecology, environmental ethics and sustainability, economic sociology, natural resources management, and landscape design. register for the series and ﬁnd out more at www.multiscapes.co.nz

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WATER & IRRIGATION

CANTERBURY FARMING April 2021

South Island Agricultural Field Days:

A productive way to spend three days

We had great discussions with the farmers and growers and service industry people that stopped by, about irrigation, effluent and fertigation systems, and the farm planning, land use consent and nutrient budget work we do, but our sprinkler test pod created the most interest.

Andrew Curtis ❚ by ❚ Water Srategies The reason why we built our sprinkler test pod is we think it is about time the Bucket Test was revamped so it became of greater value to irrigators. The following is our thoughts on a new approach to testing pivots and laterals. Step 1: Check the panel settings. This involves measuring the machines length and speed at 100 per cent and comparing this to the panel settings – this is an important first step as we find the panel can be setup incorrectly. Step 2: Check the nozzles and regulators along the length of the machine are consistent with the nozzle chart. Step 3: Check the sprinkler pack is in good working condition. This is where the sprinkler test pod is used. Starting at the end a sample of sprinklers and regulators are tested for correct pressure and flow. If there is greater than 20 per cent variation from the manufacturers’ specifications, then you can be confident it is time for some new ones. Step 4: Turn the machine on and check for leaks, blocked or malfunctioning sprinklers and regulators. Step 5: If all the above checks are good, undertake a bucket test to check uniformity. If not, say to the client you need to sort ‘this list of things out’ before we come back and undertake a Bucket Test, otherwise us spending time putting buckets out under your machine is wasting your money!

Tested: Water Strategies sprinkler test pod was a popular talking point for many attending the South Island Agricultural Field Days.

Everyone we spoke to about this new approach said it made much sense, and a few asked the inevitable cost question. For newer machines as much of the information is in the commissioning report it adds 1 to 2 hours maximum, and if cost is a concern then farmers undertaking most of these checks themselves is an option. For an older machine minimising cost comes down to engaging someone that knows what they are doing and can solve problems as they go. At Water Strategies we always look at the need to periodically test your irrigator more from a benefit viewpoint. The impacts of a poorly performing irrigation system are significant. Work we have recently undertaken for a client demonstrated the decreased dry

matter production and increased operating costs more than made up for the cost of assessment and improvements. Water Strategies will now be implementing the above approach for our future Bucket Testing, alongside talking with others around adopting the approach. If your irrigation system has become middleaged (things do not work like they once did), then give the team at Water Strategies a call – the specialists in everything water and irrigation.

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April 2021

CANTERBURY FARMING

WATER & IRRIGATION

Plan changes

As I sat through Environment Court Expert Witness caucusing in Dunedin this last week my mind drifted to how our allocations for water will stand the test of reliability for next season.

❚ with Dr Tony Davoren Everyone is wondering when the next significant rainfall is coming, it is dry and groundwater needs a significant recharge. Our expert conferencing in Dunedin centred around turning deemed permits into what we commonly think of as resource consents (a Resource Management Act consent). There are hundreds of deemed permits in Otago, especially in central Otago. These were issued during the gold rush days back around 1840 and onwards. They are tied to a land title and one received “heads” of water where each head was sufficient to operate a sluice gun. Since the gold rush days these permits have been utilized to supply irrigation water. What has turned out to be problematic is that they were issued in perpetuity. Now Otago Regional Council and the current users of the permits are faced with finding a pathway to convert them into an RMA consent. What is problematic is that so many deemed permits were issued there is insufficient flow in individual streams and rivers for all the deemed permits to be exercised at any one time – unless of course you were the first issued permit(s). They are therefore inherently unreliable and various “users” have addressed this by installing storage – small on-farm through to large for schemes (e.g. Falls Dam).

Reliability – that brings me to our situation in 2021. Our rainfall has been less than reliable – just 83mm since the beginning of 2021, well below “average” monthly rainfall and well below evaporative (PET) demand. • January Rainfall 41mm, PET 113mm • February Rainfall 25mm, PET 88mm • March Rainfall 16mm, PET 70mm This puts us 189mm behind the “eight ball” and without irrigation little can grow under these conditions. The nearly continuous demand for irrigation is putting a strain on the supply, both groundwater and surface (stored) water. If there is a saving grace, as I noted last month the demand for water is declining month on month with PET decreasing by about 20% each month (a natural process as day length shortens and solar radiation begins to wane). In Dunedin discussion with fellow experts from Canterbury had that common theme – where is the next rainfall, how much we were going to need and “I’m sick of irrigating”. Taking a look at the ECan observation bore BX23/0623 on Aylesbury Road confirms the situation is serious. Groundwater level is seriously low – at least as serious as 2005-6 following several years of very low rainfall recharge.

To get back to around 46m below ground level (mbgl) and be assured or reliable supply for 2021-22 will take several large recharge events – not just one or two 6080mm events. And we need to see these events by Au-

gust to ensure aquifers from 80mbgl and deeper have time for the excess rainfall to reach them. While we continue to enjoy the balmy dry weather, here’s hoping there is a change in the wind in the near future.

WATER & IRRIGATION

CANTERBURY FARMING April 2021

Getting engaged in the activity In late January, the Climate Change Commission released their draft advice on how they believe we can achieve recommended 2050 goals of net zero emissions from long lived gases, and a reduction in biogenic methane.

Vanessa Winning ❚ by ❚ IrrigationNZ Chief Executive

To meet these targets, there is a significant onus on the farming community to change practices, to reduce waste, and to look at alternative land such as expanding horticulture. These are doable, but at what price, and with what resources? This is where it is so important that every farmer and grower understand what is being asked of them and how they are expected to achieve these changes. On top of the other regulatory changes happening now with freshwater regulation, wintering practices, biodiversity enhancement, highly productive land use change, the primary production strategy ‘Fit for a Better World’, Resource Management Act reform, three waters, infrastructure development, and iwi rights and interests you get the feeling that things are uncoordinated and fractured. You would also be forgiven for wondering what is going to remain constant. We all know in the farming and growing space nothing is constant, so I am confident in the sector’s ability to change and adapt. However, we are concerned that if there is a lack of coordination, this may lead to policy fatigue, with a risk of being a failure to act at all, because we do not know where to start, or which bite to take first, or will be inhibited by the increase in cost and the time tak-

en in the red tape. We are also concerned that there is a risk that we miss opportunities and do not identify the best strategic outcomes that have long term benefits for the whole country. Of course, for the irrigation sector the biggest concern we have with all of these changes is the impact on water capture, storage and precision use. Without strong engagement in the infrastructure required to mitigate climate change, to support land use change into horticulture, to improve water outcomes, increase our renewable energy options, and ensure we maintain flows and waterways quality; we will not meet these ambitious targets. Water storage and capture are key enablers for our productive sectors, and our communities achieving objectives – not just for growing our food and changing the make up of the food bowl, but also for locally sourced power generation to power more electric equipment and vehicles. As farmers and growers, it is so important that you understand what is changing and what that means for you. Our submission for the Climate Change Commission report is on our website, along with the Water Services Bill, and Essential Fresh Water reform submissions. You will also be members of levy bodies who are submitting on these things and supporting change, and you will supply meat processors, dairy producers, or packhouses

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– they too will be engaged in process, working on your behalf. Most of these services you have prepaid for, so take advantage of them and get in touch. They are here to help you get through the change and support practices on farm. Last week I had the pleasure of attending the Ballance Farm Environment National Showcase – a demonstration of some amazing farmers and growers from across the country and three comments stood out to me from the winners and speakers included, “get engaged in your local groups, and industry activity – join a catchment group if you have one, there are some excellent resources and funding sources’’; “we can do this, we are doing this, look around this room

and see what can be achieved – and it can be good for business as well as the environment” and “we are in this together, this is no longer a rural/urban divide but one we can achieve as a community”. We will continue to push for strategic coordinated infrastructure development for ongoing improvements in water capture, storage, and use, and we will support our irrigator members to get the most out of their water and improve their management of it, which helps with cost, plant growth and consenting process. Your role is to keep informed, get in touch, ask for help when needed and remember there are hundreds of people across the country that have got your back and are there to support you.

April 2021

CANTERBURY FARMING

FORESTRY & LOGGING

What real use or value do you get from your ﬁnancial statements? Many farming couples or groups will simply see the preparation of their annual Financial Statements as part of their annual compliance tasks. This is all about filing your annual Tax Return that tells you what taxes you have due – end of story.

Alister Stevenson ❚ by Alexander and Associates Ltd ❚

ments are good for? I, of course, have a very different view on this. Any agribusiness accountant will be lookI acknowledge that this is a fair comment and ing at their client’s annual Financial Statethat your annual Tax Returns and Financial ments over a period of time and digging deep Statements does do this job very well and, of into these to look for trends that are happencourse, this then means that you meet your ing in your business. Most farming sectors have ratios, statisstatutory requirement of completing your annual self-employed IRD compliance, but is tics, or key performance indicatives (KPIs) that really all your annual Financial State- that you can measure yourself against your peers. This measurement or comparison can be done against farming types that are similar in scale, type and location, and all of this data comes from a set of annual Financial Statements. If you can collect this type of data from your Financial Statements over a period of time, you are going to really build up some strong trend line data that is really going to show you how your business is performing. Do you have a stand of trees? This is useful to measure your success against the Would you like these removed? various industr y standards We can offer you competitive rates and or probably more impor tantcash in return! ly to measure against your own per formance, standPHONE KENT ON ards or goals. 021 325 661 Here are a couple of key SUPPLIES LIMITED performance indicators that 21 Manion Road, Rolleston we measure for all of our www.macrocarpasupplies.co.nz farming client -– there are

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many more, but have, over a long period of time, found that these two give us and our clients a good measure of how they are performing financially and with these key ratios, it doesn’t matter what farming sector you are in, they will all answer the question, “What key information are our Financial Statements giving us?”.

Farm working expenses or farm operating expenses as a percentage of gross farm revenue Quite an easy ratio to calculate which shows how much of your hard earned gross income is being absorbed in running your farm, that is, funding your operating expenses. If, over a period of time, your trend line shows that a significant portion of your gross income is going to run the farm, this will end up being a real challenge to you in being able to generate any sort of profitability.

Interest and rent as a percentage of gross farm income This key ratio has different names, but we like to refer to this as the debt servicing ratio. It is a very similar calculation to the previous one and the information comes straight from your Financial Statements. As with the last ratio, it shows how much of

your gross income is used to pay the bank’s interest bill or lease the neighbour’s farm. In today’s low interest rate environment, this key ratio should, in most farming situations, be easy to manage at 10% or below. In today’s day and age this would be viewed as being ‘comfortable’ and allow you to make financial progress. These are just a couple of key ratios that you can get from your Financial Statements, there are many more and if you are interested in how you are financially performing, you need to be looking at and asking about how your business is performing against others in your farming sector. Please bear in mind that whenever you look at ratios or KPIs, that you do this over a period of time, do not look at these and make financial decisions in isolation, because in farming, there could very well be a reason that a key ratio has blown out in a particular year and to act on that may be a mistake. But the reverse side of this is if you are consistently breaking two key ratios over a period of time, then you had better face up to reality pretty quickly and act to change. Key message: Please do not see your Financial Statements as simply the vehicle that delivers your tax bill. There is loads more information in there.

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FORESTRY & LOGGING

CANTERBURY FARMING

April 2021

Sustained lift in prices

This year has certainly started on a positive note for the New Zealand forestry industry with prices firming in the export sector, in fact to close to the highest in the last three years.

Allan laurie MNZiF ❚ with ❚ Laurie Forestry Ltd Domestic demand and prices are also remaining strong. There are some signals from the North Island and Northern South Island, second quarter negotiations are pressing for log price increases in Q2. For the first time in a very long time, we are seeing some significant sustained lift in international lumber prices. Chile, Canada and Europe are traditionally strong supply sources. Although Canada less so in the last year, as a combination of much lower harvest levels and US demand has reduced lumber exports. All supply sources are struggling with a shortage of containers and container movements. European and Chilean processing outputs have also been constrained by COVID. Some of the lumber price increase is the consequence of a push forward on higher sea freight rates, some is just simply strong demand and short supply. Since Christmas, international lumber prices are up 22% to 35%, depending who you talk to and which specific market is being quoted. For the moment most commentators are suggesting the increases are significant and look to be sustainable for the foreseeable. On the export log side, CFR prices (the log

price landed in China in US$ per cubic metre) have continued to firm, although shipping cost increases have certainly taken the froth off the beer. NZ expor ters are witnessing some of the most rapid rises in sea freight cost ever seen. March has been an example where those who waited to secure vessels, hoping prices would go down, have seen a 20% increase in less than a month. Log expor ting at present is certainly not for the faint of hear t. As a consequence, we will potentially see NZ at whar f gate prices drop in April if not cer tainly in May despite CFR prices

climbing to close to the highest ever. Despite some apparent challenges, the market fundamentals remain strong, certainly as far as China is concerned. In this market the key indicator is log consumption, which is monitored and reported daily by the eastern seaboard Port companies, and collectively called off port sales. Following Chinese New Year (CNY), consumption has kicked back up very quickly, as at mid-March running at 85,000 cubic metres per day. To put this in to context, that means in five days the China market is consuming more logs than is expor ted out of the South

Island of NZ in a month. Erstwhile another key indicator is the current inventory across the eastern seaboard which as at mid-March sits at 4.5 million cubic metres. This is below the 5 million that was being forecast suggesting daily consumption picked up harder and faster than predicted post CNY. A quick ring around of sawmills in NZ suggests the market is still “going gang busters”. Demand is high with most mills reducing stocks and cutting to order. Hurry up and wait times are extending and some report numerous titchy phone calls with customers not wanting to hurry up and wait. The big challenge in this market right now will be to match a very strong demand and moderate price increase with log price. For a long time, the NZ sawmilling industry has not been printing a good bottom line. It is great to see some profitability improvement and therefore sustainability in this sector which can only result in equipment and technology upgrades, thus ensuring the total industry continues to stay ahead of the game in an international context. As always people, 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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April 2021

CANTERBURY FARMING

DAIRY

Kiwi woman appointed head of international body The general manager of New Zealand’s largest dairy breed association, Holstein Friesian NZ, has been appointed President of the World Holstein Friesian Federation (WHFF) Council, the first woman to hold the role in the Federation’s 45-year history. supplied by ❚ Article ❚ Holstein Friesian NZ Cherilyn Watson has been general manager of Holstein Friesian NZ for 17 years and has been the Oceania representative on the World Holstein Friesian Federation Council since 2016. The Federation is responsible for improving, promoting and developing the Holstein Friesian breed around the world. Holstein Friesian NZ President, Hennie Verwaayen, said Ms Watson’s appointment as President was recognition of how far the breed society had come in New Zealand and proof that New Zealand was producing some of the best leaders in the field. “For a little country at the bottom of the world I think Cherilyn’s appointment shows we can and are footing it with the best in the dairy industry.” Watson was instrumental in securing funding and is leading the development of a new $1 million project, backed the Ministry for Primary Industries (MPI), to develop an information system to shape the genetics powering New Zealand’s dairy sector. The Breed Society and Traits other than Production (TOP) solution to Dairy Industry Good Animal Database (DIGAD) is being joint-

ly developed by New Zealand’s independent, not-for-profit dairy cattle breed societies lead by Holstein Friesian NZ. She is also on the Industry Genetics Steering Group looking at access to data and genotypes across the NZ dairy industry. She sits on the Breed Association Working Group of ICAR, an international committee setting standards for animal recording, and is secretary of the NZ Dairy Breeds Federation. Ms Watson is also serves on the TOP Advisory Committee which steers the development and implementation of TOP traits in New Zealand. Watson said she was honoured to accept the role and is looking forward to working with the WHFF Council and members to lead the Federation through an ever-changing world from the global pandemic to the environmental challenges facing all dairy farmers. “New Zealand farmers are facing similar issues to dairy farmers around the world, from managing our social licence to operate, to addressing environmental challenges. I’m looking forward to working with the Council and continuing to both facilitate discussion and help address those challenges.” Watson said one of the biggest challenges currently facing the New Zealand dairy indus-

Kiwi first: Holstein Friesian NZ general manager Cherilyn Watson has been named as the ﬁrst woman to head the World Holstein Friesian Federation Council.

try was the development of genomics and the ownership of genomic information for the national herd. “Overseas the development of genomic testing has already led to more structured breeding decisions about the type of cows farmers both want and need to breed. In New Zealand we haven’t quite got there yet because there is currently no one industry good source of genomic data.” Watson takes over from Jos Buiting, the Netherlands, who will remain as a Federation

Council member. Exiting the role, he highlighted the work of the Federation in recording breeding traits and genetics. Buiting said the Federation was uniquely positioned to co-operate on a world-wide scale to improve efficiency of dairy herds and help address challenges from CO2 emissions to Phosphate, Nitrogen and access to water resources. He said he looked forward to continuing to work as Council member and with Ms Watson as the new President.

DAIRY

CANTERBURY FARMING

April 2021

Preventative hoof trimming

Many farmers will do some of their own trimming during the season, and when our contractors go on-farm they are often asked to explain what they are doing and why, and it is not uncommon for this to be quite different from the way that the farmer has been doing it.

❚ with Fred Hoekstra This raises the question of how many farmers actually understand preventative hoof trimming and what its benefits are. Preventative hoof trimming is not cutting out white line cracks and any other issues that you may find in a claw. If anything, you will probably make things worse for the cow if that is all you do. If all lameness issues are caused by physical damage then it would make sense to cut out any deformities, but the problem starts on the inside of the claw, in the live tissue, not the outside. If the live tissue (corium) is unhealthy, then preventative hoof trimming will not heal it, but proper preventative hoof trimming will reduce the stresses on that corium enabling it to heal quicker. The ideal is to have both claws on the one hoof carrying the same amount of weight. If one claw is bigger (usually the outer one) it will carry more weight. This is not necessarily a problem as most cows have a bigger outer claw than the inner one, yet not all cows go lame. Most cows have laminitis as well but not all cows are lame because of that either, depending on how severe the laminitis is. A cow that has laminitis has all claws affect-

Prevention: preventative hoof trimming will reduce the stresses that lead to lameness.

ed. If the outer claw is bigger and therefore carrying a greater proportion of the weight, then the corium is under more stress in that claw compared to the inner claw which is why most cows are lame on the outer claw. So, the first step that any preventative hoof trimming should entail is paring away the sole on the outer claw. This will reduce the weight and the stress on the live tissue in that claw. If we trim a cow that has a white line issue and we open it up, exposing the corium without taking the sole down, then there is a good chance that the corium will prolapse

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because that claw is still carrying too much weight. This obviously creates more problems for the cow than benefitting her. I know it sounds simple and straight forward, but it takes skill to achieve that balance. Both claws need to be level and flat, but on the other hand they are not allowed to get too thin either. That is why it takes more advanced training and time to become proficient at hoof trimming.

The ‘lameness Management Workshops’ are designed to familiarize all dairy staff with the 5-step process of hoof trimming according to the Dutch Method – visit our website www.dhi.ac.nz to see when the next workshop is running near you, or if you would like to ﬁnd out more about our contracting service or book a contractor to trim some cows for you before the end of the season then call Veehof on 03 302 2911.

April 2021

CANTERBURY FARMING

DAIRY

Winter grazing

planning for when the next weather bomb hits

Have you got your winter grazing management plan sorted?

Extreme winter conditions, like a wet southerly weather bomb, carry the highest risk for soil damage and run-off into waterways. Being prepared with a winter grazing plan for worst-case weather will help you manage your way through tough conditions. supplied by ❚ Article ❚ Environment Canterbury

E21/8434

Being prepared for winter grazing can help reduce run-off into waterways and also improve your soil productivity. Here’s four tips to graze better: • Prepare a winter management plan, which can be part of your wider Farm Environment Plan • Fence and plant next to wet areas and waterways • Graze strategically from the top of the paddock downwards • Plan to avoid damaging wet soils in your winter feed paddock Our team is happy to give advice on your winter management plan and to explain any rules and regulations that apply to winter grazing. Get in touch with a Land Management Advisor by calling 0800 324 636 or visit www.ecan.govt.nz/wintergrazing for information and resources.

Livestock, particularly cattle, cause soil damage and greater soil loss in wet conditions. Heavily pugged soils can take years to recover limiting pasture and animal production and impacting on your bottom line. Environment Canterbury modelling predicts more than 50 tonnes per ha of soil can be lost off poorly drained paddocks and steeper slopes. In Canterbury, many farms are required to have an audited Farm Environment Plan (FEP). FEP auditors assess if the farm has a winter management plan and how the various winter management risks have been assessed and mitigated. New national rules have strengthened the need to protect waterways from the loss of sediment and nutrients from high risk winter grazing. Save your soil and the nitrogen and phosphorous you have paid for. Keep it on the paddock and out of waterways.

Here are some practical planning tips for your winter grazing plan: • Prepare a winter management plan and prepare early to save stress later • Strategic grazing, or grazing down a slope towards the gully, is the cheapest and most effective option for keeping soil in your paddock • Set up your paddock to allow stock to start at the top and to have water as you graze the paddock

• On steeper slopes, leave a winter feed buffer of 30 m parallel to the watercourse to filter run-off and then graze across the slope above the buffer • Use a daily grassed run-off. It is more resistant to soil damage and reduces stocking rate on the winter feed, spreads out the dung and urine and reduces pugging and soil damage • Prepare in the dry to keep heavy vehicles out of wet paddocks. They compact the soil and create tracks that can carry runoff and soil away. • Bring your feed pad (if you have one) back into service • Keep you stock well fed to stop moving around and creating soil damage • Harvest a week of fodder beet while it is dry to use as the main diet when you take cattle off the fodder beet block. This will keep transitioning problems at bay. • Don’t graze the gullies or the lowest areas of your paddock and make sure you have good grass or crop vegetation downhill of the break you are feeding. Leave them as filters to keep your soil in the paddock.

Managing winter grazing is an important part of Farm Environment plans. Get in touch with a land Management Advisor at Environment Canterbury for free advice via customer services on 0800 324 636 or visit www.ecan.govt.nz/farmers-hub

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CANTERBURY FARMING

DAIRY

April 2021

Why denying the obvious won’t work ❚ with peter Burton The image (right) is a recently taken photograph of a Functional Fertiliser client’s property from 2500ft. The move to organic certification was made in March 2013 with all required nutrients applied annually. Without accurate rainfall data it’s not possible to know whether it’s been drier or wetter than normal recently, however what is important is the difference in colour between the property and neighbours. The farm is situated close to Forest Lakes just north of Otaki, an area where locals enjoy walking and over the last 10 years the owner has received many compliments and often been asked the question, “why is your place so much greener than the neighbours?”. Under the current conventional model of excessive water-soluble nutrient propped up by unsustainable synthetic N applications many farmers will not survive the coming crisis. Carbon positive and high levels of pasture and animal production are compatible however will only be achieved when the current models are dismantled. The new system will be based on the awareness and understanding of the interconnectedness of soil, plant, animal, and human health. Soils are the basis of the new paradigm and until there is a focus on creating healthy biologically active soils that necessarily grow more feed of higher quality, there will be a continued reduction in farm profitability. The models used to justify the existing growing systems have a flaw. That flaw is calculating plant protein by measuring the nitrogen content and multiplying by 6.25. The number reached is a measure of crude protein and a poor indicator of actual protein. Plants containing high levels of crude protein are unacceptable to animals unless balanced by a high energy and fibre supplement. Animals consuming high levels of crude protein necessarily excrete excess nitrate resulting in loose dung, dirty backsides, rapid weight loss, and poor mating performance, the reason for, on average, dairy cows lasting less than three lactations.

astute and sympathetic daily management. Every year there is the potential to grow more pasture and produce a greater quantity of meat, however that is at the discretion of the owner. It provides a blueprint that can be used for far larger properties and ultimately the entire pastoral farming industry. The owner extends an invitation to the scientific fraternity, and politicians, to visit, examine, and measure every aspect of the operation. For more info please call peter on 0800 843 809.

Carbon positive: The difference in colour is in part due to the pasture plant’s ability to convert sunlight to protein and energy efﬁciently. Animals grazing pasture grown on truly healthy soils containing all necessary elements are clean, docile, and gain weight at a rate that most find unbelievable. When the pasture is grazed after reaching the top of the rapid growth phase it is naturally high in full protein, and the losses of methane and nitrous oxide are of little if any consequence. Plants develop a stalk and seed head in response to stress, which over summer is usually due to a lack of moisture, and high soil temperatures. The pasture highlighted has a deeper root structure and is therefore able to access both moisture and nutrient from a greater depth. The difference in colour is in part due to the plant’s ability to convert sunlight to pro-

tein and energy very efficiently. Because there is less stress plants stay leafy and digestible for longer. The current industry model actually incentivises lower levels of pasture production and taken to its logical conclusion, browntop becomes the pasture species of choice. That means far fewer animals gaining weight slowly with lactating stock producing much lower volumes of milk resulting in an uneconomic pastoral industry. The highlighted property was part of an AGMARDT funded study that showed it to be actively sequestering carbon, lowering atmospheric carbon dioxide levels. The property is positive on every environmental measure due in large part to

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April 2021

CANTERBURY FARMING

DAIRY

DairyNZ wins award for fertility research A DairyNZ-led team has received a Primary Industries Award at the Kudos Awards for its ground-breaking collaborative research into improving dairy fertility genetics.

❚ by Kent Caddick The Improving Dairy Fertility Genetics research project has determined new ways to select inherently fertile cows. It has also demonstrated that genetic selection for cow fertility will improve herd reproduction. “The ability of cows to become pregnant each year to calve in a seasonally concentrated period is critical to the profitability and sustainability of New Zealand’s pasturebased systems,” project co-leader Dr Susanne Meier said. “It is tremendous to receive this award recognising the value of the research.” The Kudos Awards recognise eight categories of science excellence for 2020. These apply broadly to all science disciplines and sectors including primary industries, medical, engineering, environmental and education. The Improving Dairy Fertility Genetics project uses a genetics approach to help achieve herd reproduction targets by increasing the fertility breeding value’s (BV) accuracy. BV is used to breed dairy cows with superior fertility. The project aims to improve genetic improvement, by identifying a new range of dairy cow attributes that can be measured earlier. This may significantly accelerate the rate of genetic gain in cow fertility. “The first phase of the research was an indepth study where we bred 550 heifers with high and low fertility BV,” Meier said. “We worked to understand how they’re different and what is unique to each of them – why are some fertile and some not so fertile, and through this process identified new attributes that have potential for use by the industry. “We found the high fertility BV heifers

Rewarded: Hamilton Mayor paula Southgate (left) presenting the Hamilton City Council primary industries Award to DairyNZ representatives Susanne Meier, Chris Burke and Claire phyn at the annual Kudos Awards.

reached puberty earlier and lighter than low fertility BV heifers. High fertility BV cows also had a greater ability to resume oestrous cycles post-calving, leading to substantially better submission and 6-week In-Calf rates. “This meant that the high fertility cows recovered from calving very quickly and were receptive to getting in-calf again quickly.” She said once validated on a larger scale, these new reproductive traits can be used by farmers in the future. “The next phase of the research underway now is to seek validation of the traits at a large scale. This involves working with

5000 dairy cows across 54 herds as they go through their first lactation.” The work aims to measure the new attributes of puberty and timing of cycling after calving to confirm the conclusions from the first phase of the research. The project is halfway through the validation work. Project co-leader Dr Chris Burke said when they get that validation, they can recommend the industry use the puberty trait and other novel measures for better fertility. “This is exciting work that could make a big difference in herd reproductive performance,” Burke said.

“The project’s research findings are driving industry change and an increasing appreciation of the value of genetics for improving herd reproduction.” The work is part of DairyNZ’s Pillars of a New Dairy System research, which has funding from both DairyNZ and the Ministry of Business, Innovation and Employment. Additional support is received from AgResearch, LIC, CRV Ambreed and AbacusBio. The Pillars research is an eight-year research programme that aims to provide management and genetic solutions to improve cow health, fertility, and longevity.

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.

DAIRY

CANTERBURY FARMING April 2021

$40 million investment in butter

Westland Milk Products is embarking on an ambitious $40 million plan to double capacity of its consumer butter manufacturing facility.

❚ by Kent Caddick The plan to increase production of premium grass-fed consumer butter brand Westgold has been five years in the making and is backed by new owner, global dairy giant Yili. Westland resident director Shiqing Jian said Westland was transitioning from a supplier of mostly bulk commodities to play a greater role in the production of consumer goods in an expanding global butter and spread market. “The investment highlights the important role Westland plays in Yili’s ongoing plans to supply international industrial and consumer markets,’’ Jian said. Annual global butter and spread sales are predicted to grow from a current estimated $US44 trillion to $US59 trillion by 2025 with the US, Russia and China regarded as the world’s largest importers of butter. “New Zealand is one of the world’s major butter producers and industry and consumers widely recognise the value of dairy products of New Zealand origin,’’ Jian said. “Chinese consumers are also continuously looking to improve and diversify the application of butter products in baking, cooking and desserts,. “In future, demand for butter production and processing of Yili and Yili subsidiary brands will be considerable, and the upgraded Westland plant will play an important role.’’ Westland’s general manager of sales and

Upgraded: The butter plant upgrade would increase Westland’s consumer butter production to a total of 42,000 tonnes a year.

marketing Hamish Yates said Westland would leverage the West Coast’s reputation as one of the most unique dairy catchments in the world to connect more directly with domestic and global consumers concerned about the provenance of food. “Westgold and Westland-produced butter is already sold in more than 20 countries around the world, including the US, Japan and China, but a large part of what we supply cur-

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rently is bulk commodity butter,’’ Yates said. “Given the rainfall and geographical conditions that make the West Coast catchment so unique for grass-fed farming systems, and the way our farming families have farmed the area for generations, we knew we were sitting on something world-leading and incredibly valuable.’’ Yates said the plan to increase global market penetration of Westgold butter began in

2017 but configuration of the old butter plant had kept retail butter production capacity capped. “This investment now gives us the flexibility to pursue markets that will offer Westland the most value,’’ Yates said. Site works, construction and installation is expected to begin shortly before Westland’s annual winter shutdown in May this year and run for three months.

April 2021 CANTERBURY FARMING

rob Cochrane ❚ by Wool Procurement Manager, ❚ PGG Wrightson Wool ❚

LIVESTOCK

Slightly better market despite shipping delays

Despite more wool than expected coming forward for auction in New Zealand during late February and throughout March, plus continued shipping issues, the market reacted positively and, after some reasonable price improvements particularly for better style crossbred wool types including lamb’s wool were recorded in the early March auctions, prices stabilized. A handful of wool types continued to improve before levelling out somewhat at the latest (at time of writing) South Island auction held on 25th March. An obvious willingness by growers to meet market levels was evident during the past six weeks or so, something which gave exporters confidence knowing that in most cases the highest bid price was likely to be accepted, rather than have large quantities of wool passed-in due to, often, unrealistic grower expectation. Recent auction catalogues in the South Island contained a wide variety of wool types

with quantities of “out-of-season” wools being offered amongst freshly shorn wools. Most interest was aimed towards good scouring colour second-shear types, which were in shorter supply than usual, probably due to many growers deciding to shear once per year simply to save wool harvesting costs which are exceeding wool sale returns. At the 25 March auction, good style second-shear wool types were fetching prices only fractionally less or equivalent to those received by good style full-length fleece wool. Poorer full-length fleece types surprisingly remained in good demand although those displaying very poor colour and high vegetable matter contamination levels were discounted considerably. Several average style

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fleece lines which had not been prepared well in the wool shed, suffered discounts due to too much variation in fibre length, which would likely create unacceptable fibre wasteage during processing. Crossbred lamb’s wool remained in fair demand with most interest shown towards those lines measuring finer than about 29 micron, however gross returns for lamb’s wool remained well below cost of production. Better style crossbred oddment types also improved during the past few weeks, but monetary returns compared to effort remained very questionable. Only limited quantities of Corriedale and Halfbred wool types were offered during the past few weeks with very few, if any, meaningful price quotes resulting. What wools there were on offer received limited enquiry

although a few lines of very good style wools sold well. Similarly bred lamb’s wool also drew limited support with only the very fine edge being very keenly sought by the export trade. Very small quantities of Merino types were available at recent auctions, mostly being second-shear from cull sheep, with values reflecting a reasonably keen demand from European and Middle Eastern buyer representatives. Having painted a slightly better picture of market prices of late, a serious transport issue is facing all exporters of wool both from Australia and New Zealand. Shipping problems have magnified as delays of between three and six weeks are becoming common-place due to congestion at many ports around the world. Singapore is a hub for shipping across the globe, with cargo transferred from one vessel to another for distribution to its destination port. Shipping which may have previously taken forty to fifty days, has more recently taken ninety to one hundred days or longer, if in fact space has not been cancelled due to shipping companies re-routing vessels. Continued shipping delays along with recent substantially increased shipping costs, could cause credit issues for exporters, many of whom often have terms of payment upon or after arrival of the physical wool, or upon actual vessel departure date. Watch this space.

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CANTERBURY FARMING April 2021

LIVESTOCK

Venison marketers planning chilled season contracts Deer Industry NZ (DINZ) is expecting improved market conditions for venison in the coming year, with better prices assured for venison animals processed for supply in the European game season.

❚ by Trevor Walton

“In the next few weeks some venison companies will be offering minimum price supply contracts for the game season, for shipment of chilled venison during September and October,” DINZ chair Ian Walker says. “Contracts offered in 2020 were $7 $7.20 a kilogram, when Europe was gripped by Covid-19. This year we are seeing restaurants starting to reopen in North America. Also prices for all meats in major world markets have begun what economists expect will be a steady long-run climb. “Despite all the disruption caused by Covid, the 2020 European game season went well, both at food service to restaurants and at retail. Importers were understandably cautious with their orders, but they sold everything and could have sold more, if not for airfreight disruptions. “With mass vaccination programmes underway in Europe, demand from food service this coming game season could be even stronger. The only note of caution is the

strength of the NZ dollar, which has firmed by about 10 per cent against the Euro and US dollar since last October.” Walker says it is more difficult to predict demand outside the chilled season, when a lot of venison is frozen after processing. Demand for frozen venison comes mainly from northern Europe, and now China. In Europe it is stored until the following game season for use in traditional cold weather game fare. “There are significant stocks of frozen venison, from New Zealand and other countries, in Europe from last game season. This will tend to have a bearish effect on prices for the next few months,” he says. “On the other side of the ledger, prospects in North America are improving and demand from China – a developing market for venison – keeps growing. “The US restaurant scene is coming back as vaccination campaigns are rolled out and infection rates drop. The US is our biggest year-round market for chilled venison. “Venison marketers have also been

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very active in North America in the last 12 months, building retail and home delivery demand for our venison, with some promising results. While this will take time to be reflected in meaningful volumes, every kilogram that is sold is a kilogram that is not sold frozen in Europe.” Meanwhile, food price inflation is gripping the world. Beef, pork and chicken prices are climbing on the back of the highest grain and soybean prices in seven years. These are being driven by poor harvests – blame bad weather and droughts – at a time of growing demand, especially from China. Westpac Bank senior agri-economist Nathan Penny, writing for www.interest.co.nz, says US bull beef and EU lamb leg prices have both jumped by about 10 percent above 2020 prices. Penny expects Covid vaccine rollouts will boost demand for NZ meat, first in the US – where the rollout is going very well – and then later in the year in the EU and the UK. This boost will add to the demand strength already present in China. “That means venison prices, which have been hardest hit by Covid, are also likely to

turn the corner as European (German) meat demand returns,” he says. “We expect the farmgate venison price pickup to materialise from around mid-year.” Ian Walker says DINZ is working closely with the five major venison marketing companies to build year-round demand for venison, particularly at retail and on-line for home delivery. “We fully recognise that deer farmers need a schedule premium over lamb to make venison production a competitive land use. The industry was achieving that until the impact of Covid,” he says. “Venison prices will improve. And hopefully none of us will have to deal with another pandemic in our lifetimes. Once is more than enough.” Walker says that because deer farmers can bank on getting better prices during the chilled season, they should target getting venison animals away before the end of October, if that fits with their farm system. “Talk to your venison marketing company about their plans and consider locking in supply over this period.”

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April 2021

CANTERBURY FARMING

Puma’s clean look from head to toe Pumas are being re-styled in the first major cosmetic change for Stage V Puma models in more than a decade.

❚ by Tim Fulton The Case IH range of Puma 140-240 tractors is being revamped with a new design, as well as additional features for improved operator comfort on the Puma 185-240 models. The 6.7-litre FPT Industrial six-cylinder engines, designed to generate power and optimize fuel efficiency, , and are now protected by a distinctive new hood with the latest Case IH family styling, All models meet the Stage V emission standards with HIeSCR2 technology without the use of exhaust gas recirculation Features include upgraded road and work lights as established on the larger Case IH Optum and Magnum tractors. The 360deg LED light package offers up to 40.000 lumen in its top specification. The engine bonnet with Case IH family look and optional 6 LED work lights for increased performance and longer

life and an optional hood-mounted camera. All Puma Stage V models offer lengthened engine (750hr) and transmission oil (1,500hr) change intervals meaning fewer oil/filter changes over machine lifetime, lowering cost of ownership. As before, the Puma range remains split into two distinct lines – the standard wheelbase Puma 140-175 models, and the larger long wheelbase Puma 185-240 tractors. New front axle suspension improvements create an enhanced ride for operators of Puma 185 Multicontroller to Puma 240 CVX models, while an adaptive steering control option increases responsiveness during high speed road travel. And all models now benefit from colour-coded remote valves. The updated engine power management on Puma CVX models is now also available when operating in reverse while both transmission offerings gain extra power at high

The Case iH range of puma 140-240 tractors is being revamped with a new design, as well as additional features for improved operator comfort.

RPM for a more agile drive in transport applications. Overall, there’s improved acceleration and deceleration, better shuttle behaviour as well as drive pedal sensitivity, cruise control override, better Multicontroller sensitivity and position detection.

New cab and comfort features include low mounted front windscreen wiper for improved visibility in wet or dusty conditions, cool box with cover on the front end of the steering column and turning indicator with electronic cancelling. Cab entrance is made safer and more comfortable with new left-hand aluminium steps with high performance LED ingress lighting. The model is also equipped with an optional hand wash tank with an internal volume of 8 litre, on the left-hand side of the steps, to clean hands if needed. That kind of attention to detail is typical of re-styled Puma models with a clean look all round.

CANTERBURY FARMING

April 2021

Sir Lancelot’s weapon

Heroes have certain traits empowering them to get the big jobs done.

❚ by Solis Norton Two legends of course stand out, Sir Lancelot and Saint George. The heroes of countless quests, battles and tournaments, fabled swordsmen too and George even slayed the odd dragon. For what in return? Nothing more than a change in religion for the local witnesses. A shift of public perception, if you will. Probably the very last thing George was actually trying to achieve. But this is only partly my point. And yes, Lance probably shouldn’t have mucked about with Guinevere but with a name like Lancelot it’s not like we didn’t see it coming. And this is not my point at all. My point is this. Neither of these characters knew about silver bullets, neither cared, and both would happily run you through on the spot without hesitation.

If Elon Musk had walked into Joyous Gard, Lancelot’s modest but stylish accommodation, and promised him a ticket to Mars and a horse that didn’t need feeding, Lance would have lopped off his nut and fed it to his dog. His dog would have had good manners and taken the morsel out into the yard before settling down to munch. George and Lance didn’t postpone a battle or leave a maiden in need while they waited on some mysterious new weapon that might shoot a little further than the one they held in their hand. This may in the end have been to Guinevere’s detriment. They did not pontificate about side by side versus over-under or semi-auto. They got stuck in and did the business with the sword they had and used it to great effect. History has much to teach us. Fast forward 800 years. The sword for rural heroes today is the Overseer computer model, the weapon to save New Zealand agriculture. Farmers are the new Lance and George. They must take this sword and get chopping. The Knights of the Round Table consultancy limited will fall in behind them. This sword will boost our tally of heathens and dragons

‘

if Elon Musk had promised lancelot a ticket to Mars and a horse that didn’t need feeding, lance would

right now, rather than waiting for some other magic answer. I for one would feel further ahead for it. The dragon of public perception may well turn out to have sharper teeth than the dragon of climate change. Who cares? Both are having a munch on us and we ought not dally splitting hairs on which to skewer first. The Overseer sword is not perfect, but it works well enough. The fortunes we amass with it, measured these days as data, (zeros and ones strangely enough, rather than gold) will show heathens that farming is not the cause of their woes.

have lopped off his nut and fed it to his [Doge]. They may even change their religion as the Libyans are purported to have done for George. And a final word to Jacinda; King Arthur did not sell his heroes for their swords. Not by rent, subscription, or purchase. He gave them swords and was delighted to do so. The same should hold with Overseer. More battles will be won.

Farmers’ mental health week We had what was known as Farmers Mental Health Week a couple of weeks ago, and apart from anything else, every week should be mental health awareness, but that will never happen.

❚ with rob Cope-Williams Having suffered badly from depression and even to the point of wanting, and seriously wanting, to take my own life I feel I can relate to the subject. Firstly, and foremost, no amount of banging on about it being a problem, and the Government throwing money into a variety of different areas that have no accountability will ever do anything to the shocking figures that most people either don’t know, or don’t wish to know. Secondly, I can assure you that people who are suffering will not talk about their feelings and will hide them from everyone. Been there, done that, which is why I know. So, let’s take a look at the signs, and then what you can do about it if a loved one, or

someone close is suffering in silence. Firstly, they will withdraw and not talk about things as they did. Not that farmers are known for their robust conversations, but when they stop commenting on the news and such, take a note. Secondly, they will stop going out or talking with people who call onto the farm. Include not answering the phone to that one. Small issues that sneak up un-noticed over a period. Thirdly, their libido will reduce, that is to

be fair more obvious in younger people. Next is a change in their sleeping habits, plus they may go off their food. All pointers to things not being right. Knowing that the person will not admit there’s something wrong, and that they will hide it, doing something about it and engaging help is extremely hard. You must, as an observer, realise that the one you are wanting to help won’t want that help; won’t talk and will hide it. My solution is arrange an appointment

with you doctor for a checkup, blood pressure, cholesterol and whatever, and alert the doctor that you are worried and he or she will take it from there. The other thing is if you are suffering and didn’t move onto another item in the newspaper, there is nothing wrong with feeling bad, wanting to be alone, and the other signs. In fact, as in giving up smoking, once you make to decision you are in a bad space, and do something about it, you feel a million dollars afterwards.

April 2021

CANTERBURY FARMING

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