Canterbury Farming, January 2022 by Canterbury Farming

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

January 2022 Edition

INSIDE

THIS EDITION Export forecast

p7 New campaign

p13 Fewer 1080 drops

p26 Record numbers

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Future talk: Hinds dairy farmer and Climate Change ambassador Phill Everest talks nitrogen loss reduction to other local farmers as part of DairynZ’s Meeting a Sustainable Future project.

Canterbury farmers taking action to reduce nitrogen Selwyn and Hinds dairy farmers are successfully taking steps to reduce farm nitrogen loss.

❚ by Kent Caddick That’s according to a recent DairyNZ survey. DairyNZ surveyed 235 of 450 Selwyn and Hinds dairy farms, with all reporting positive environmental changes on-farm including improved irrigation efficiency, fertiliser use and new technologies. To achieve the reduction the survey showed that 81% percent of farmers improved irrigation systems or management, more than 50% changed fertiliser use and

improved effluent management, while some farmers have also changed stocking rate, using the grazing herb plantain which reduces nitrogen loss, or have made other changes to benefit the environment. Under Environment Canterbury rules, Selwyn dairy farmers must reduce nitrogen losses by 30% by 2022, compared to their baseline figure from 2009-2013. A farm’s baseline is its average annual nitrogen loss over those four years. In Hinds, farmers have to reduce nitrogen

losses by 15 percent by 2025, 25 percent by 2030 and 36 percent by 2035. One of many local farming families working hard to reduce nitrogen loss is the Everest family of Ashburton. Phill and Jos Everest farm 750 dairy cows with their son Paul and his partner Sarah, and they work together as a family to meet their environmental goals and stay ahead of regulations.

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January 2022

CANTERBURY FARMING

FARMING NEWS

New Zealand red meat exports increase by 27 per cent The value of New Zealand’s red meat sector exports reached $693 million in October 2021, a 27 per cent increase year-on-year.

❚ by Kent Caddick That’s according to the latest analysis by the Meat Industry Association (MIA). Sheepmeat was a standout performer with the value increasing by 25% to $309m. The major sheepmeat markets by value were China, up 25% to $131m, the United States, up 54% to $46m, and the Netherlands, up 94% to $29m. Chief executive of MIA Sirma Karapeeva said a mixture of supply constraints and good demand in key markets had contributed to the high sheepmeat prices. These factors included Brexit-related issues and Australia rebuilding its sheep flock. “The average Free on Board (FOB) value for sheepmeat exports for the quarter was $12.52/kg,” Karapeeva said. Free on board is the quoted price for the

goods delivered to the ship for shipment. “This was a record level and the first time that the average monthly FOB value has been above $12/kg. “Value growth in our key global markets was across the board, with beef up 28 per cent to $231m and co-products increasing by 30 per cent to $153m.” Overall, the value of China’s imports of New Zealand red meat was up 34% to $262m, the United States by 47% to $138m, Japan by 29% to $31m and the Netherlands by 76% to $30m. Karapeeva said UK sheepmeat exports to the EU have been affected by Brexit. “Most of the United Kingdom’s sheepmeat exports, around 90%, normally go to the 27 European Union countries but its exports to that market are down 24%.”

Price rise: MIa chief executive Sirma Karapeeva says a mixture of supply constraints and good demand in key markets has contributed to high sheepmeat prices.

Reducing nitrogen WE ARE BUYING! losses ‘challenging’ FROM PAGE 1

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The couple are actively involved in DairyNZ’s Meeting a Sustainable Future project, which shares knowledge among local farmers to reduce nitrogen loss. Phill, who is a DairyNZ Climate Change Ambassador, said local farmers know they need to make changes for the future to protect the environment. “We’ve always focused on learning how to do things better. We’ve got to learn fast to make changes and keep contributing to our local communities.” The family’s changes include reducing nitrogen fertiliser by 35%, ahead of the national and regional deadlines. This resulted in a small reduction in milk production this season. Phill said they learnt from the changes and next season will adjust their approach and focus on improving pasture growth to lift milk production. “We developed an annual nitrogen application plan so we knew what our target application rates were each month to meet the new targets. “We also used a coated urea product which reduces greenhouse gas and nitrogen losses,” Phill said. Among other improvements, the Everests have installed a variable rate irrigation system on one pivot irrigator. “This is very water efficient and allows water to be applied in different amounts across a paddock, reducing drainage and nutrient losses.” The farm team has carried out 22km of

planting along drains and fence lines to improve water quality and provide shelter. Plantain and chicory have been added to their pasture mix, and additional plantain and clover seed is applied with capital fertiliser dressing. These changes help reduce nitrogen loss. Phill said reducing nitrogen losses further to meet environmental requirements will be a significant challenge for their family and other farmers. “We’re taking small steps each year to make the best improvements we can in a sustainable way. If all sectors and all New Zealanders take small steps and work together, we’ll all get the benefits.” Together with DairyNZ, the Everests hosted a field day on their farm near Ashburton, which 45 farmers attended. As part of the Meeting a Sustainable Future project, DairyNZ and partner farmers have hosted more than 20 field days and events to discuss options. “The survey shows Selwyn and Hinds farmers are working hard to reduce their footprint,” DairyNZ solutions and development lead advisor, Virginia Serra, said. “Taking steps now to reduce nitrogen losses will help improve water quality over time. We know it isn’t easy, but farmers are on the journey and support is available from DairyNZ, dairy companies and rural professionals.” Farmers nationwide can learn from the project about options on their own farms. Visit dairynz.co.nz/ selwynhinds.

FARMING NEWS

CANTERBURY FARMING

January 2022

International dairy workers needed to ease farmer stress DairyNZ says it is relieved the Government has listened to its call to allow more dairy farm assistants into New Zealand in January 2022.

❚ by Kent Caddick However, the industry-good organisation says more workers are needed and is continuing to push for another 1500 dairy international workers to be let into the country for the 2022 dairy season. DairyNZ strategy and investment farm performance leader, Nick Robinson, said the workers will help alleviate crippling staff shortages which are having a serious impact on farmer wellbeing. Initially the Government said 200 international dairy workers would be allowed into New Zealand on a dairy class border exception, with 50 places available for farm assistants and 150 positions available for herd manager and assistant manager roles. It has now removed the restrictions on how many farm assistants, herd managers and assistant managers can make up the quota of 200 workers, and allow applications for all roles. Robinson said the Government’s decision is sensible and DairyNZ has always advocated for this approach to provide flexibility in how the quota for international workers is filled. “There has been much stronger demand from dairy farmers for farm assistant positions, and all of these applications were filled quickly,” Robinson said. “We know there are more farmers who have vacant farm assistant positions that they can’t find Kiwis to fill. We are waiting to see further detail of the Government’s an-

Stress relief: DairynZ says it is relieved the Government has eased restrictions for dairy farm workers but is calling on the Government to do more to help relieve the stress dairy farmers are still under.

nouncement and will share that with farmers once it’s available.” However, Robinson said while the decision is good news, it’s critical that the Government support the dairy sector’s request to allow a further 1500 international dairy workers into New Zealand in 2022. “We currently have the lowest unemployment rate we have seen since 2007, 3.4 per cent, and we know the rate is even low-

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er in many dairying regions. With our borders closed, many of New Zealand’s core sectors are facing staff shortages, and we are seeing a significant labour shortage on farms too.” He said recent labour surveys indicate the dairy sector is short between 2000 and 4000 workers, and farmers continue to raise the issue as a significant cause of stress. “Farmers are under real pressure and

have been since Covid-19 arrived on our shores. “This is simply unsustainable. This has been a serious issue for two seasons now. It has taken a real toll on farmers and we cannot let this continue for another season.” Dairy employs around 50,000 people and is forecast to contribute over $42 billion to the economy this year.

January 2022 CANTERBURY FARMING

FARMING NEWS

Tough year but positive signs

Here we are in 2022, with 2021 put to bed. While many urban Kiwis will be holidaying, rural New Zealand continues to work through this period making hay while the sun shines, harvesting summer fruit or staying on top of thistles while sneaking in a BBQ or trip to the beach or the river with the kids.

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

I hope it’s all going well for you. It’s not uncommon to get asked for predictions on the New Year. I don’t own a crystal ball and tend not to get drawn into that, so much. There is however, one significant forecast for 2022 that is very notable and it came out on 15 December 2021 – MPI’s Situation and Outlook for Primary Industries, or as it’s come to be known “The SOPI”. The December SOPI has forecast that for the first time in New Zealand’s history food and fibre exports will crack $50 billion. Specifically export earnings are forecast to be $50.8 billion for the year-end June 2022, an increase of 6 per cent on 2021. Even more positively, that growth is pretty much spread across all sectors. Dairy up 10 per cent to $20.9 billion; meat up 6 per cent to $11.1 billion, horticulture up 5 per cent to $6.9 billion; forestry 3 per cent to $6.7 billion; and seafood up 4 per cent to $1.9 billion. In short, we’re experiencing healthy demand in our food and fibre because we have ever more discerning consumers overseas looking for healthier food and natural fibres with strong environmental credentials.

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We have ever more discerning consumers overseas looking for healthier food and natural ﬁbres with strong environmental credentials.

$50.8 billion. “Zero point eight” may sound small, but that is $800 million. It takes any single company years, even decades, to build that up. Yes, 2021 was challenging, but there were a couple of things that happened in the year which bode well for rural New Zealand. The UK FTA is expected to come into force in 2022. That will see immediate elimination of tariffs on many products, including our biggest export to Britain – wine. And to boot, there will be significant non-

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tariff quotas on our dairy and red meat. Opportunity knocks. Secondly, we have hit and will quite possibly exceed the 90 per cent Covid-19 vaccination levels for our eligible population. This is a great achievement and will be instrumental in keeping the rural economy realising the forecast of the latest SOPI. I’d like to acknowledge all of your efforts towards New Zealand’s success. And that includes your role in encouraging vaccinations within your communities.

Covid-19 is challenging every economy across the world and touching every single life. We’ve been very fortunate to have had an economy that’s kept ticking due to our health-focused Covid-19 response – a response that could have not succeeded without the backing of New Zealanders. Together we’ve kept ourselves safe so we can continue to do business, and this SOPI points to the benefit of these efforts. Best wishes for the summer.

FARMING NEWS

CANTERBURY FARMING

January 2022

Human impact: according to MetService Canterbury’s ﬂooding event in May last year was 10% to 15% more intense as a result of human inﬂuence on the climate system.

Climate change made Canterbury ﬂooding more severe Researchers studying the effects of climate change on severe weather events in New Zealand have found that the extreme rainfall that brought flooding to Canterbury in May 2021 was 10% to 15% more intense as a result of human influence on the climate system.

❚ Article supplied by MetService

The findings come from the MBIE-funded research project Extreme Weather Event Realtime Attribution Machine (EWERAM) which seeks to provide scientific analysis and expert assessment to inform statements about the role of climate change in the severity and frequency of extreme weather events. The project calls on the skills and expertise of researchers from five institutions in New Zealand, namely, Bodeker Scientific, MetService, NIWA, Victoria University of Wellington, and the University of Canterbury. As was widely reported at the time, extreme rainfall in Canterbury over the period 29-31 May produced historic flooding.

The event was caused by a slow-moving low near central New Zealand that directed an easterly flow onto the South Island, with a subtropical feed of moisture delivering prolonged heavy rain. Rainfall totals of 200 mm in two days were widespread along the Canterbur y foothills, peaking at an overall total of 540 mm, over the course of the entire event, at Mt Somers in the headwaters of the Ashbur ton River. The event prompted MetService to issue a Red Warning and a State of Emergency was declared in response to the flooding and widespread impacts. The Insurance Council of New Zealand

lists the insured losses from the event at $43.8 million. The research team’s analysis of this event, using MetService’s ensemble forecast system, indicates that compared to a climate system unaffected by human activities, around 10% to 15% (depending on the region considered) more rain fell. A large collection of global climate model simulations, taken from the weather@home project, was also analysed for how the likelihood of such an event occurring may have changed because of climate change. We found that these events are at least 20% more likely to occur today than in preindustrial times.

While these findings are consistent with climate science expectations, that is that the intensity and frequency of severe precipitation events will increase as the atmosphere warms and is able to hold more moisture, the characteristics of any single event can var y as a result of climate-induced changes on where the rain falls, and other confounding factors such as thresholds being reached (or not) that initiate such events. While EWERAM has focused on efficient and rapid generation of diagnostic analyses of extreme events, interpretation of those results by climate experts will always be essential in deriving attribution statements.

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January 2022 CANTERBURY FARMING

FARMING NEWS

Restoring farmer conﬁdence

This year, under new leader Christopher Luxon, my focus is in restoring confidence among farmers and growers.

Barbara Kuriger ❚ with Party Spokesperson ❚ National for Agriculture ❚

Since Covid-19 arrived on our shores in 2020, New Zealand’s primary sector has ensured our economy has remained buoyant and deserves to be recognised for the contribution it has made. While changes are needed, the Government’s broad brush approach of unworkable regulations is not the way to achieve productive results. Planning within catchments and communities will find the answers we need to move forward. As Shadow Minister of Agriculture, I will bring ideas to the table, listen to others and together, work out a path to a successful food and fibre future. Key issues include methane measurement, water quality and quantity, workforce, technology and the services in your rural communities.

Methane measurements Current metric measurement GWP100 calculates the warming effect of methane over a 100-year period which overstates the warming impact. Unlike CO2, methane cycles out of the atmosphere in 10 to 12 years. Better measurement method GWP* reflects that shorter cycle and is more accurate. Our farmers already produce food at the lowest emission rates in the world, so we need measures which don’t result in the leakage of food production to farmers worldwide. Water quantity and quality — While water is our most valuable resource, several proposed storage projects have been stopped or stalled due to regulatory restraint, cost or uncertainty.

As we search for climate solutions and find new ways to produce both renewable electricity and energy, some smart minds should work together on ideas for multiple water storage infrastructure projects. We need ‘can do’ answers, especially for areas of NZ more exposed to drought. On our journey to cleaner water, we will focus on regional and local solutions taking into account local soils, rainfall and land use.

Rural workforce We need more employees in every area of the primary sector. We want to educate stu-

dents better about the future opportunities open to them. But until we get there, we must bring in qualified immigrants and seasonal workers to ensure productivity is at its maximum potential. Technology will help us pave a path to the future. We must be open-minded to new options and technologies. We must be brave enough to discuss what gene editing might add to our toolbox. A boost in rural connectivity will ensure our ability to use modern technology options that are available. Rural Communities have always been the heart of New Zealand. That heartbeat

needs strengthening with better services for health, education, police, rescue and wellbeing, along with robust infrastructure such as roads, water services and mobile services. I will be following with great interest the new Rural Communities team within the Ministry for Primary Industries who have been tasked with keeping your interests to the fore with other Ministries. I am excited and looking forward to engaging with you in 2022. Let’s change up the conversation and ensure that farmers and growers can feel proud.

Putting a challenging year behind us

Well it really has been quite the challenging year and I hope that you are and your family will take some time to have a restful break.

Teanau Tuiono ❚ with Agriculture spokesperson for ❚ the Green Party ❚

Apart from spending some time with family on Christmas I am hoping to go only as far as my letterbox this holiday break - painting the decks and sorting out the weeds that have grown due to my business in Parliament. If, like me, you are planning on having a staycation you might be scratching around for a few books to read. And so I thought I’d take the opportunity to offer up three books that I’ve read over the past year as possibilities for your summer reading list. All three books are metaphors for exploring the relationship between people and the planet, which as a Green I spend a lot of time contemplating, both on and off the clock. The first one is written by a friend of mine, Laura Jean McKay who is also New Zealand’s most successful writer of 2021. Her book

`The Animals in that Country’ has won more awards than I can shake a stick at. It was published just as the pandemic hit and coincidentally was about a pandemic - except with this pandemic the chief symptom is that its victims begin to understand the language of animals. The central character is a hard-drinking, foul-mouthed grandma who is so ridiculously relatable I swore that I have bumped into her in any number of small town pubs. One of my reflections on the first lockdown was about commenting about how the environment was recovering so it also explores that theme as well. The second book ‘Project Hail Mary’ was a real page turner for me. I must have read it in only a few sittings. It is written by Andy Weir whose book ‘The Martian’ got turned into a film starring Matt Damon. The central character, a Science Teacher, wakes up alone on a Spaceship. He is

the sole survivor on a desperate, last-chance mission–and if he fails, humanity and the earth itself will perish. Except that right now, he doesn’t know that. He can’t even remember his own name, let alone the nature of his assignment or how to complete it. All he knows is that he’s been asleep for a very, very long time. And he’s just been awakened to find himself millions of miles from home, with nothing but two corpses for company. His crewmates dead, his memories fuzzily returning, he realises that an impossible task now confronts him. Alone on this tiny ship that’s been cobbled together by every government and space agency on the planet and hurled into the depths of space, it’s up to him to conquer an extinction-level threat to our species. The third book, Ministry for the Future, I read last summer. It is by Kim Stanley Robinson and is a plausible, chaotic, and hope-

ful novel about how the climate crisis could play out. It was chosen by Barack Obama as one of his favourite books of last year. Set in the near future, the novel follows a subsidiary body, established under the Paris Agreement, whose mission is to advocate for the world’s future generations of citizens as if their rights are as valid as the present generation. While they pursue various ambitious projects, the effects of climate change are determined to be the most consequential. The book has a really compelling heroine in Mary Murphy, an Irish ex-diplomat who runs a Zurich-based UN agency called the Ministry for the Future (thus the title of the book) and is up against corrupt politicians and petro-state billionaires. Whether you’re a reader or not – and, if not, congratulations on getting to the end of this article – I hope you have a great break. Remember to be kind out there not only to others but also to yourself.

FARMING NEWS

CANTERBURY FARMING

January 2022

Food and ﬁbre exports forecast to hit new record Food and fibre export revenue is projected to surge to a record $50.8 billion in the year to June 30, 2022, an increase of 6 percent over the previous year. That’s according to the latest Situation and Outlook for Primary Industries (SOPI) forecast.

❚ by Kent Caddick Agriculture Minister Damien O’Connor said the Government was backing projects and initiatives to drive more value, sustainability, and jobs in the food and fibre sector, to strengthen the foundations of New Zealand’s Covid-19 recovery. “This is the first time New Zealand’s annual food and fibre export revenue will crack $50 billion, a result we should all be very proud of, particularly as we navigate the challenges of Covid,” O’Connor said. “Situation and Outlook for Primary Industries forecasts healthy growth across the majority of our food and fibre exports, which shows that the future of the food and fibre sector is bright. “The performance reported in this latest SOPI is a testament to the sector’s huge efforts to keep the wheels of our national and local economies turning and supply essential products.” O’Connor said the sector was meeting strong demand as consumers around the world increasingly looked to healthier food and natural fibres with strong environmental credentials. “High demand for our dairy products combined with strong export prices are expected to deliver an estimated 10% increase in dairy export revenue to $20.9 billion. “Meat export revenue is forecast to increase by 6% to $11.1 billion, driven by recovering export prices and demand for our meat products that are helping to fill the global protein shortage.” He said horticulture export revenue was expected to increase as well. “Consumers can’t get enough of our fresh fruit and wine with demand remaining strong. This is driving an expected increase in export revenue of 5% to $6.9 billion,” O’Connor said. Other strong indicators from SOPI also predict forestry exports to reach $6.7 billion in the year to June 30, an increase of 3% on the previous year and seafood export revenue is forecast to rise 4% to $1.9 billion in the same period. Oceans and Fisheries Minister David Parker said seafood exports were recovering from the challenges posed by Covid-19, such as the disruption to food service. “The growth forecast in this SOPI is promising, reflecting the seafood sector’s continuing success providing high-quality seafood to international markets,” Parker said.

Revenue up: agriculture Minister Damien O’Connor, seen here casting an eye over the Port of Singapore on a recent overseas trade trip, says new Zealand’s annual food and ﬁbre export revenue will crack $50 billion for the ﬁrst time in 2022.

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January 2022

CANTERBURY FARMING

RURAL PROFESSIONALS

Our regular ‘Ask a Lawyer’ column provides a high-level legal response to some of the key issues affecting the Agri sector. Q: Are there any contractual traps to be aware of buying or selling a farm at an online auction? Or, how are the legal considerations different? A: For a prospective bidder at any farm auction 99% of the prep is beforehand. Broadly this encompasses 4 things: 1. Completing due diligence on the land and buildings 2. Arrangement of finance 3. Reviewing the rules and process for an auction on-line – are there any you need to renegotiate prior to the auction? 4. Developing your personal strategy as a potential bidder at the auction – how are you going to handle that side of things? The on-line auction process is still developing and can range from a “zoom meeting” type process to a process which is documented, bidders are registered and lodge bids within time frames. The rules then describe how a winning bid is defined. With the state of covid, on line auctions are likely to normalise fairly quickly. The rules will need to be carefully scrutinised by a prospective purchaser and their advisers while this situation is developing and the creases are ironed out. For the vendor – they are setting up the process and their bottom line will be creating a fair and competitive environment for potential bidders with respect to the Vendors’ property. Q: With property prices rising, what’s the best way to structure new ownership to protect farm assets against a mortgagee sale further down the track?

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already minimises personal risk and therefore the administrative cost of adding in extra structuring may not be worth it.

Business Interruption (BI) insurance covers your business’s loss of profit or revenue if your business premises or assets suffer loss or damage (e.g. fire or flood damage).

A: When looking to protect your assets the first step is to consider where the risks are. When looking to protect against the bank that has a mortgage over your property taking possession, the only thing that can be done to protect from this is keeping your business liabilities separate from your personal property so that your lender doesn’t have reason to enforce against you. This may be through the use of trusts, or a mixture of structures. Limited companies as well as limited partnerships can also be attractive options and in some cases can be beneficial for tax purposes. If structured correctly this would ensure that should your business encounter difficulties your personal assets won’t be on the line, however it is always important to actually look at where the risks lie in your business as it may be that the structure you have

Wynn Williams has been part of the rural community in Canterbury for more than 160 years, supporting our clients with their personal, family and business endeavours. We've shared in the special times and in the most challenging of times. Our specialist rural team provides legal services to private farming operations, companies, offshore clients, and other rural investment entities, across the breadth of the Agri sector. If you think we can help, please get in touch.

Q: Do I need to be GST registered if I’m buying a lifestyle block? A: Often a vendor will be GST registered and will be looking to sell their property on a plus GST basis. Before you decide as the purchaser to become GST registered you need to consider 1. Are you planning to operate a business from the property that will be considered a taxable supply? 2. Will the IRD accept it as a significant enough business to justify being GST registered? 3. If and when you on-sell the property, is price plus GST going to create a problem if the potential buyer doesn’t wish to operate the property as a business? So, before you go too far down the track with your due diligence and other sale related matters, get advice from your accountant. Q: With the delays at processing plants likely to continue, what come back do I have with the processing plant if they re-neg on existing supply agreements A: Whether you have any come back will depend on the wording of your specific supply agreement. However, the terms and conditions of most livestock supply agreements provide that the processor may, at their election, vary the delivery date. This generally involves giving notice to you of a revised delivery date. You are then obliged to make delivery on the revised date.

SUE ANDERSON

The flip side is that most supply agreements allow you to defer the delivery date by giving notice to the processor within a certain timeframe. Q: Some in the rural sector are asking whether their insurance will cover their business losses caused by Covid related labour shortages. A: Business Interruption (BI) insurance covers your business’s loss of profit or revenue if your business premises or assets suffer loss or damage (e.g. fire or flood damage). The Government closing the border and imposing MIQ requirements wouldn’t naturally trigger a business interruption claim. However, most BI policies have an extension for claims arising out of the acts of civil authorities. What these extensions actually cover varies a lot, depending on the language used. While these extensions usually only provide cover for about 10% of the full sum, it’s worth checking the specific language in your policy. You’ll also want to check for a broad infectious disease or pandemic exclusion. These are very common in New Zealand will usually bar any claim arising out of or connected with events like Covid. So, the short answer is probably not, but it’s worth checking or speaking to your broker about. If you have a question about how the law applies to a situation you’re facing that you’d like us to answer in this column, please email us at email@wynnwilliams. co.nz with the subject line: ask a Lawyer.

CHARLENE SELL Specialist areas: ¥ Asset + succession planning ¥ Working with Trusts ¥ Farm transactions M: +64 27 482 2171 E: susan.anderson@ wynnwilliams.co.nz

Specialist areas: ¥ Small + medium sized businesses ¥ Commercial contracts + terms of trade ¥ Intellectual property M: +64 27 685 5653 E: charlene.sell@ wynnwilliams.co.nz

DAVID HAIGH Specialist areas: ¥ Farm succession + ownership structuring ¥ Land subdivisions ¥ Buying + selling rural properties ¥ Overseas investment M: +64 27 573 7775 E: david.haigh@ wynnwilliams.co.nz PHOEBE DAVIES Specialist areas: ¥ Corporate structuring + governance ¥ Rural contracting + acquisitions ¥ Offshore investment M: +64 27 414 9825 E: phoebe.davies@ wynnwilliams.co.nz

ANNABEL SHEPPARD Specialist areas: ¥ Succession planning ¥ Sale + purchase of properties ¥ Trust structuring M: +64 27 484 1417 E: annabel.sheppard@ wynnwilliams.co.nz AMANDA DOUGLAS Specialist areas: ¥ Employment law ¥ Health + safety ¥ Privacy law M: +64 21 885 585 E: amanda.douglas@ wynnwilliams.co.nz

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RURAL PROFESSIONALS

CANTERBURY FARMING

January 2022

Are you meeting your minimum employment requirements?

The summer period can be extremely busy for businesses across North Canterbury. More sunlight hours allow many businesses to take on additional work, which is constantly needed to be balanced with staff’s need for a break after a busy and stressful year. As such it is a timely reminder for all types of businesses of some often overlooked, employment obligations.

Brydie McFall ❚ by Helmore Stewart Lawyers ❚

er must provide “reasonable notice”, or they must pay the employee “reasonable compensation”. What is considered reasonable will depend on the circumstances. A key provision of the ERA is a requirement for employers to keep accurate employment records to show they are meeting the minimum entitlements. Over busy periods, record keeping may fall to the bottom of the to-do list, however is

it important that employers are keeping records of additional hours of work and leave accrued and taken to ensure they are paying their staff correctly to avoid breaching the ERA. The Holidays Act 2003 (“the Holidays Act”) entitles employees to public holidays. Where public holidays fall on an ordinary working day, and the employee does not work, they are entitled to receive their normal pay.

PROFESSIONAL RURAL

Ben Turner

KEY 670911641

As per the Employment Relations Act 2000 (“the ERA”), unless a casual contract, employment agreements should state minimum hours of guaranteed work. Once agreed, employees are entitled to refuse additional hours of work. The exception being id their agreement includes an availability provision which specifies when they additional hours are expected, for what reason, and the level of compensation (e.g. an overtime clause). Employees are entitled to receive adequate rest and meal breaks depending on their hours worked in one shift, so employers should ensure staff are receiving the correct breaks where working overtime.. Occasionally work cannot be completed due to reasons outside of employer’s control (e.g. weather). If an employer cancels work, they must provide the employee with notice. The notice is determined by the employment agreement. If no notice period is specified the employ-

If an employee is required to work on a public holiday they are entitled to receive 1.5x their normal pay. The Holidays (increasing sick leave) Amendment Act 2021 (“the Holidays Amendment Act”) came in to force 24 July 2021. The Holidays Amendment act increased the minimum sick leave entitlement from 5 to 10 days per year accumulating to a total of 20 days. All new employees will be entitled to 10 sick days after 6 months continuous employment. However employees hired before 24 July 2021 are only entitled to the additional sick leave when their next entitlement falls due (their anniversary date). Where disputes arise, there is a preference for parties to agree on a suitable outcome. However, where there is a clear breach of employment obligations the Employment Authority may choose to impose a punitive penalty of up to $50,000 per individual, which can be damaging for many small business accord North Canterbury.

Call Ben today for an altogether better approach to your rural real estate needs along with an up-to-date market overview.

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January 2022

CANTERBURY FARMING

RURAL PROFESSIONALS

Delivering a nutrient management tool that works for farmers Creating tools to assist farmers to make the right choice on nutrient management is a long and sometimes expensive process.

supplied by ❚ Article ❚ Fertiliser Association NZ As part owners of the OverseerFM tool (along with MPI and AgResearch), the Fertiliser Association is committed to a journey of enabling New Zealand farmers to meet their goals for profitability and heightened environmental responsibility. OverseerFM is the most widely used decision support tool in New Zealand farming. Over 12,000 farms have used the tool to make decisions about nutrient management on-farm, so they can have confidence in balancing production goals with their environmental responsibilities. Having the regulator, the national science organisation and industry as joint owners is not always an easy partnership but it helps to deliver robust tool development. Recently the three parties committed to working together over the next year to continue to develop the tool, addressing some of the issues raised in the science review of the model. All parties are committed to delivering a tool that works for farmers. “We have always taken the view that no model can fully reflect what is happening in a real-world situation, but it can still be extremely useful,” Fertiliser Association chief executive Dr Vera Power said. “Our view is that continuing to evolve and develop the model is the answer for New Zealand farmers,” Power said. “There are recommendations in the review that could be valuable in terms of ongoing development and improvement of the current model. Any development must con-

Further development: Fertiliser association chief executive Dr Vera Power says OverseerFM needs to evolve as further mitigation technologies are developed.

sider the regulatory environment in which the model is applied, and the practicality of its application as a tool that supports farmer decision-making. We continue to see OverseerFM as a critical tool to support that decision-making process. “The New Zealand public is clear on their environmental aspirations and supportive of a farming sector that is moving forward, so using tools such as OverseerFM is critical.”

Power said millions of dollars have been spent by the partners, including the Crown, to develop the model. That development has been supported by over 100 peer-reviewed papers and tested through the Environment Court. “As farmers work hard to both understand and meet objectives for water quality and greenhouse gas emissions, they need to have confidence in the tools they use.

“OverseerFM needs to evolve as further mitigation technologies are developed,” Power said.

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LEAN MANUFACTURING ENVIRONMENT

CANTERBURY FARMING

RURAL PROFESSIONALS

andrew Wyllie ❚ with Forsyth Barr ❚

January 2022

Portfolio diversiﬁcation unpacking the free lunch

Portfolio diversification is a core principle of long-term investing and has been called the only free lunch in finance. What does that mean? The primary goal of diversification is not higher returns, but to minimise the risk and volatility (the free lunch) of a portfolio for a given long-term expected return. In this article we unpack why diversification is one of the key tools in an investor’s toolbox. If the future was certain, investing would be easy. But (as we’ve been firmly reminded over the past two Covid-impacted years) it is not. As legendary investor Howard Marks describes it: “The future should be viewed not as a fixed outcome that’s destined to happen and capable of being predicted, but as a range of possibilities and, hopefully on the basis of insight into their respective likelihoods, as a probability distribution.” How we invest should reflect this.

objectives of the individual investor. We need only look to the sharp Covid-19 market sell-off in March last year to see evidence of the benefit of allocating across different “baskets”. Equity markets fell, but bonds proved more resilient. New Zealand dollar weakness helped reduce the impacts of the declines in international equity prices. Tourism businesses suffered whereas healthcare benefitted. During this period many investments saw dramatic swings in value (you would not have wanted to own a portfolio of just airline stocks).

Don’t put all your eggs in one basket

Building a quality diversified portfolio is not simply a matter of selecting a bunch of different-looking assets. When constructing a portfolio, an investor should seek to maximise the expected return for the risk they are bearing. Academic research concludes that a portfolio should comprise around 30 to 40 different assets to capture the maximum benefit of diversification.

Types of diversification Appropriate portfolio diversification requires investing across asset classes (e.g. equities, bonds, property, cash, currencies), sectors (e.g. healthcare, technology, retail, industrials), and geographies, tailored for the

Not a silver bullet, but a free lunch nonetheless Portfolio diversification is no silver bullet. It can’t make your portfolio risk free, but it can narrow the swings along the way. A less volatile portfolio can provide the added benefits to an investor of sleeping better at night, lessening the chance of panic during periods of market volatility, and comfort bearing greater risk (and therefore earning higher returns) over time. The challenge for investors is having the time and knowledge to construct a diversi-

fied portfolio. What’s more, portfolios are not static, they need to be rebalanced and evolved over time. A key role of a financial adviser is to help investors build and maintain appropriate portfolios, helping avoid common investor mistakes such as home market bias, where

an investor is overexposed to their home country’s market, and ensuring the portfolio changes over time to reflect the investor’s goals. When implemented correctly, investors can enjoy their free lunch and have a smoother ride.

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.

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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

Diversification aligns to the old adage of not putting all your eggs in one basket. By spreading our eggs (investments) across multiple baskets we reduce the chance of unforeseen events materially hurting our portfolio. Diversification works because different companies, different sectors, and different assets react differently to the same event. When the value of one falls, another may rise. Take Covid-19. It has heavily impacted anything travel and tourism related, but there are healthcare and technology companies that have benefited.

Maximising the diversification benefit

January 2022

CANTERBURY FARMING

❚ with rob Cope-Williams The world has been held at gun point by Covid destroying production, shipping, consumption and the movement of people and workers. New Zealand has felt every bit of those things. The local media have been extremely focused on Covid and totally ignored the farming industry and its woes, but I suppose that is a usual situation. We have had the massive Ashburton floods that continue to cause massive work and loss of production months after they happened. Rains just before Christmas threatened the same results, but thankfully, we dodged that one despite a warning from Lincoln University suggesting 1252 hectares of Canterbury rivers have been ‘shaved off’ the edges and turned into intensive farming opening the door for more disasters. We saw rural people protesting about the law changes proposed that kick farming including a ‘Ute tax’ and 3 Waters. Warm feeling, but no-one really cared. The South Canterbury short tailed bat won the best loved native bird which proved that you can take the mickey out of the system but to no avail. Mainstay farming and rural events were banned and therefore closed such as the

Looking back at 2021 Pause for a moment and look back over the past year.

‘

berries folk have had a terrible time with late frosts, dull days and

Show and Race week plus the SI Field days. Plus of course most localised events that normally allow folk to gather and share company at. Rural mental health figure rose at an alarming rate, but as usual with all figures involving such matters, the facts were swept under the imported synthetic carpet. Thankfully, as the year started to wind down dairy prices started to look a bit more realistic, and lamb seems to be on the rise as producers look over the fence at descent pasture growth. Sadly, the fruit and berries folk have had

a terrible time with late frosts, dull days and rain when they really didn’t need it. Of course, with respect to blackcurrants a lack of fruit co-insides with a shortage in Europe. Typical luck but the future is looking good with new growers coming on. That has in turn has led to very little pressure on irrigation which turns out as some sort of a blessing. So, 2021 was not nice in many ways, but there is always sunshine above the clouds isn’t there. We are poised for another season next year and vines etc. that faltered this year will be charged with energy for next sea-

❚ with John arts

Osteoarthritis is all about loss of cartilage, subsequent inflammation and changes to bone and joint structure. Nutritional therapy can help, especially in reducing inflammation, slowing the rate of cartilage loss and improving the function of existing cartilage. For example, therapeutic levels (800+ mg) of chondroitin can have significant effects on the health of chondrocytes and therefore cartilage protection and repair. Glucosamine also helps maintain cartilage while Curcumin from turmeric helps reduce inflammation and fluid accumulation. An ex-builder contacted me two years ago with significant knee pain from advanced osteoarthritis. An orthopaedic specialist had recommended knee replacement. Two years on a personalised joint health programme and he now has very little pain and no longer needs surgery.

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.

rain when they really didn’t need it. son, when the sun does break through and we get hot weather the sugars will fill out crops and pastures, and we all feel better on a fine day. I think we simple do what we do best; produce the best quality food the world can but, know we are on our own and no one will listen, so don’t expect them to.

New enhanced formula

Cartilage loss The result is pain and loss of mobility. The ends of bones such as the femur are covered in tough, flexible articular cartilage. It may surprise that despite its tough appearance and texture it is actually 80% water which acts like a shock absorber. Cartilage is a combination of living cells, the matrix they produce plus water. These specialised cells are called chondrocytes and their job is to secrete and maintain cartilage. They repair small amounts of damage as it occurs. Osteoarthritis starts when chondrocyte cells die causing cartilage to breakdown. While there are a number of things that can damage chondrocytes, in most cases these are a combination of free radical damage from insufficient antioxidants and biochemical changes caused by trauma to the joint. While the triggers vary, the outcome is chondrocyte death and cartilage loss. This is then followed by unwanted inflammation in the joint capsule that further damages cartilage. Eventually the bone itself becomes compromised and the net result is more pain and restricted mobility.

Sadly, the fruit and

Abundant Health

FARMING NEWS

CANTERBURY FARMING

January 2022

New campaign challenges gender stereotypes in meat sector A global campaign backed by leading meat businesses has been launched in New Zealand to change perceptions of careers in the meat industry, highlight female role models and encourage more women to join the sector.

❚ by Kent Caddick

‘She Looks Like Me’ Aotearoa will showcase the breadth of roles and career options that exist in the meat supply chain and launches with the ‘day in the life’ video of Cromwell Butcher, Jayne McMillan who has combined her love of science and her connection to the rural sector. “When I started in the industry, 27 years ago, there were no women on the processing floor and they were largely confined to administration roles,” McMillan said. “Through hard work, passion and resilience I now own and operate a boutique butchery and delicatessen where I am CEO, human resource manager, accountant, butcher, packer, customer service representative and more.” McMillan said she was proud to share her meat industry story through the ‘She Looks Like Me’ campaign, and urge any women to consider this sector. “There is a role for everyone, from technical, butchery or trimming through to marketing, procurement, and leadership - your opportunity for growth is endless. Take the leap. I am living, breathing proof of where that first step can take you.” The campaign follows New Zealand’s commitment to getting more women into the

meat sector following the ‘Gender Representation in the Meat Sector 2020’ report which showed that women account for 36% of the industry’s global workforce. A first of its kind for the meat industry, the campaign aims to challenge stereotypes about working in meat and put a human face to the sector at a time when it faces increased public scrutiny and pressure to become more diverse. Laura Ryan, global chair of Meat Business Women, which created ‘She Looks Like Me’, said to attract and retain more female talent, the meat industry needs more visible role models and showcase a wider variety of roles. “Many people still think working in the meat industry means being a farmer or working on the production line, and they often think it means being a man,” Ryan said. “By championing real women who work in our sector, ‘She Looks Like Me’ will shine a light on the meat industry in a way that’s never been done before, giving it a human – and female – face and showing the career options that exist.” For more information about aotearoa new Zealand’s meat industry and the varied roles within, visit www.meatyourcareer.co.nz

New face: Cromwell butcher Jayne McMillan is the face of a new campaign aimed at increasing the number of women working in new Zealand’s meat sector.

We’re here to help! The Essential Freshwater package requires landowners and communities to put the health of our waterways at the centre of decision-making. We recognise that this new national direction will have a significant impact on farmers and the community, from farm planning to consenting and compliance requirements. Check our website for key dates, information, frequently asked questions and more.

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CANTERBURY FARMING

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CANTERBURY FARMING

January 2022

Harvest higher returns with John Deere variable chamber balers You hear it every year “make hay while the sun is shining”, and rightly so. supplied by ❚ Advertorial Drummond & Etheridge ❚

Save time and money with John Deere Variable Chamber Balers. maintenance, reliability, and versatility to set the bale diameter you want from 0.8m to 1.85m. It does not happen often in life, but sometimes you can have it both ways: the C461R combines the V451M and V461R solo balers with the John Deere Transport Table System (TTS) to create the ultimate wrapping baler. The C461R wrappers feature fast unloading times and a highspeed 40 RPM wrapping arm unit. In conjunction with the high capacity feeding system and John Deere advanced

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When it’s time to bale, your equipment had better operate like clockwork. After all, hesitate now, and the quality of your silage could be literally washed away. But what does it take to make haste without waste? To harvest when crop moisture levels are ideal and threatening rain clouds are draped over the horizon? The answer is quality: John Deere Variable Chamber Balers, which are available now from Drummond & Etheridge with an absolute ripper of a finance deal at 0% for a limited time only on selected models. The team at Drummond & Etheridge have been in the baler business for a long time. Like you, they know how important speed, performance and dependability are. Especially at harvest time. That’s why their John Deere balers are consistently optimised to ensure exceptional customer value. The John Deere V451M & V461R Variable Chamber Balers save time and money while baling straw, hay, haylage or silage – a lot of one, or some of everything, you can pick your winner here. These are the most versatile round chamber balers in the business. Featuring outstanding bale density and quality, easy

The John Deere C461r is the ultimate wrapping baler.

bale chamber technology they’ll push your baling capacity way beyond current limits, whether you’re baling silage, hay or straw. The transport table receives the bale and efficiently transfers it to the wrapping system. The deep table guides the bales carefully, preserving their shape, and works flawlessly even on steep slopes. Regardless of how large your farm or contracting business may be, regardless of how many crops you harvest, Drummond & Etheridge can ensure their John Deere balers will gather, cut, press, form and wrap

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one perfect bale after another all season long and support you with outstanding parts and service backup South Island wide. Make hay while the sun is shining, or even if it’s hidden beyond the clouds, make sure you utilise the 0% finance rate while its up for grabs. But be quick, this deal won’t last long. Terms, conditions and lending criteria apply. Contact your local branch on 0800 432 633 or visit www.dne. co.nz to view the full range of John Deere hay and forage gear.

January 2022

CANTERBURY FARMING

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CANTERBURY FARMING

January 2022

Guide to mulching and mulchers This guide outlines the uses for mulchers, benefits of topping with a mulcher, how to pick the correct mulcher for your situation and crucial features that a good mulcher must have.

Gerry Hamlin ❚ by ❚ Agriline Farm Machinery Mulchers are a great multi-purpose tool on any farm so long as you get the right one for the job. They can be used for clearing Gorse, Broom, Matagouri, Teatree, Rice Grass, Tussock, Rushes, Thistles, and most other vegetation and small trees. There are some very distinct advantages of clearing with a mulcher. If you spray the vegetation it can often take years to break down before the land can become effective again and by that stage there is often more of the rouge vegetation coming away. Root-raking will give you a pile of unwanted trash that you have to deal with and will disturb the soil and you may have to cultivate before replanting. With a mulcher, the vegetation is mulched very fine and will break down quickly so you can over-sow almost straight away with brilliant results. A mulcher is the ideal machine for topping your pasture. Other topping machines tend to cut the grass and lie it over intact making it very hard for the elements to break it down

this is made even worse when there are thistles and other weeds. A mulcher will cut the grass and weeds very fine allowing it to break down faster putting nutrients back into the soil and boosting regrowth. The fungus that causes facial eczema lives in the dry plant stems so mulching these up reduce the risk. Mulchers will also spread out animal waste and reduce the sour patches of grass. Mulchers are very robust and low maintenance compared to a lot of other topping machines. Mulchers are the ideal machine to deal with crop residue, they will mulch it up finely to allow you to cultivate easily. Mulching the stubble reduces the blocking of cultivation equipment and allows stubble to break down when buried, if stubble is buried un-mulched it can use up the nitrogen in the soil.

Choosing the right mulcher Width: Ensure you get the right width for your tractor. You need the mulcher to be narrow enough to drive it easily and do a good job, but obviously, the more ground you can

Top job: a mulcher is the ideal machine for topping your pasture. Photo: courtesy agriline

cover at the same time the better. Also in rough terrain, too wide can cause scalping so take this into account as well. Horsepower Rating: Have plenty of tolerance to give you peace of mind for reliability and scope to run it on a bigger tractor should you decide to upgrade. Enough Belts: Belts on a mulcher are generally designed to take up to about 35 HP per belt. Make sure your mulcher has enough of them to handle the horsepower of your tractor. Lack of belts will result in belts slipping and destroying themselves. Dual or Single Transmission: A dual transmission mulcher is where the rotor is driven

from both ends. This decision is partly to do with getting enough belts for your Horsepower rating, and also once you go over 2.5m Dual Transmission is almost essential. Flails: For most situations, the triple flail (a Y flail with the straight centre blade) is the ideal option. It does a finer cut, smoother finish and is easier to drive than other flails. Also ensure they are a good solid flail with a large diameter bolt. If you have a high chance of hitting large stones or have a very abrasive environment sometimes a hammer flail is a better option. In these situations, it can be a good idea to get flails hard-faced as well. Skids & rollers: Where possible in most situations it is best not to have a roller and just run on wide skids. To do this you need at least 150mm wide skids with rolled edges to stop gouging. Once mulchers get up to around 3m it is often better to run a roller to stop scalping.

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January 2022 CANTERBURY FARMING

Powerful and compact with performance to get the job done The Farmlift 742 telescopic loader is built to work long days.

❚ by Tim Fulton

Case IH has always catered for the needs of almost every type of farm and the Farmlift 742 continues that tradition. With a work-hungry 4,200kg max capacity of the 742 and the enormous 7.1m reach the Farmlift 742 caters for the toughest applications. Superior operating comfort, short loading times and quick vehicle response are the hallmarks of Farmlift telescopic loaders, design for all sorts of farming. The Farmlift 742 delivers maximum efficiency, delivering 129 hp (143 hp maximum power) to ensure the power you need for your handling work. All the driveline components are perfectly combined to optimise power, allied with exceptional performance and frugal fuel consumption. The Farmlift 742 has 6x3 Autoshift transmission and the Power Shuttle on all models makes it easy to move around small yards or buildings. Equipped with a stable frame, the Farmlift models feature heavy-duty frames that improve safety. The boom is designed to maximise rigid-

The Farmlift 742 features a heavy-duty frame which improves safety. ity and stability, while for added safety, an anti-tipping device is standard on all models. The ergonomically-smart Farmlift series stands out for its compact size, exceptionally tight turning radius and low centre of gravity for optimal traction.

The Farmlift 742 is compact, produces little noise and the three steering modes enable you to work in the most confined spaces. The four-cylinder engine meets Tier 4A emissions standards and offers superior hydraulic efficiency, built on robust and reliable

gear pumps with a 140 litre/minute hydraulic capacity that delivers fast cycle times for maximum profitability. Whatever your needs, you know you can count on the Farmlift for superior operating comfort, short loading times and quick vehicle response.

CANTERBURY FARMING

January 2022

Looking after your tractor for a long life Tractors are essential pieces of farm equipment, and with the right maintenance they can run for years with very little trouble.

❚ Article compiled by Kent Caddick

Check list: Whatever the size of your tractor regular maintenance will extend its life.

Because there are so many different kinds of tractors with specific applications, maintenance may vary greatly from tractor to tractor. However, there are certain universal things you can do to help guarantee a long and useful life for your tractor, and carrying out regular inspections is a key.

Tyres lose pressure more quickly when temperatures change from cold to hot, so you may want to check your tyre pressure more frequently in the Spring and Autumn.

Familiarize yourself with your tractor’s manual There are many different types of tractors on the market with a wide variety of applications and associated accessories. To be sure you properly maintain your specific make and model of tractor, you should read through the manual that came with it. Many tractors require specific types of lubricants and hydraulic fluids that you can identify in the manual. If you do not have a manual for your tractor, you may be able to find the information on the manufacturer’s website.

Give the tractor a visual inspection Before you get started with any planned maintenance on your tractor, give the whole thing a good once over to see if anything looks overly worn, broken, or dirty. Many newer model tractors even have plastic windows on fluid reservoirs to check things like hydraulic fluid levels.

Inspect the belts and hoses Just like in a car, a tractor’s engine relies on a number of rubber hoses and usually at least one belt. Look all the rubber components over for signs of wear or damage. Excessively worn rubber components should all be replaced. Look for grazing on the sides and bottom of any belts that may indicate that it’s been slipping. Any rubber that has cracked should be replaced.

Replace the air filter as needed Give your tractor a visual inspection before and after each use Make note of any issues you identify to make sure you address them before the next time you use the tractor.

Do a tyre pressure check Tractor tyres can last years, but operating a

tractor with under-inflated tyres can ruin the sidewall and cause the tyres to wear faster than they should. Under-inflated tyres will also cause the tractor to burn more fuel in normal operations. You may want to adjust tyre pressure for different types of jobs. For instance, if you plan on driving your tractor on the road, you might want to add a few more pounds of air.

Depending on the environment you use your tractor in, you may need to change your air filter more or less frequently. Locate the air filter using the tractor’s user manual, then visually inspect it. If it’s really dirty, it should be replaced. There’s no real rule of thumb with air filters; they should just be replaced as they appear dirty. You should check your air filter after eight hours of use or so.

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January 2022

CANTERBURY FARMING

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 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 like mechanical hoes, coupled with commer-

cially-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. “It demonstrates the merit of the innovation and the potential impact that mechani-

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. cal 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 Tin-

to 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.

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CANTERBURY FARMING

January 2022

Keep it safe when using a tractor Tractors are used in all farming regions in New Zealand in tough terrain. Steep, rough, slippery or loose ground and towing implements increase the risk of losing control.

supplied by ❚ Article ❚ WorksafeNZ Manufacturers advise caution in all these circumstances as the tractor could become unstable because of sudden changes in direction and the tractor’s centre of gravity. Before going up or down hills, carefully check the ground and set the tractor up to meet the conditions. You might have to get off the tractor and walk the route you plan to take. When planning your route, find an emergency run-out spot in case you lose traction.

Travelling downhill Selecting the wrong gear can result in losing control of the tractor: • too high a gear and engine braking may not hold back the tractor

• too low a gear and the tractor may start to slide, like brakes applied on a slippery surface. Always drive straight down steep hills. Do not drive diagonally across and down slopes. Find the gentlest possible slope and drive straight down. Select a low gear before driving down and apply the throttle to reduce the chance of the engine stalling. Engage ‘diff lock’ before starting a hill descent for maximum braking and to prevent single-wheel lockup. However, note that the tractor will not turn as efficiently when diff lock is on. Drive slowly forward (heavy end up slope) controlling your speed with engine braking. Allow for any towed implements’ extra weight. Check surface conditions, slope and route.

If the tractor starts to slide forward, quickly pulse the throttle until you regain traction. Do not brake, as you have to keep the wheels turning to keep traction. If the engine loses power, apply the brake and put the tractor in ‘park’ mode. If you lose control, drop any implements into the ground to act as an anchor. Keep the tractor well-maintained and filters clear to reduce the chance of engine failure.

Travelling uphill When travelling uphill, the weight moves to the rear of the tractor, increasing the risk of the tractor flipping over backwards. The wheels can lose traction and make the tractor slew to the side, increasing the risk of the tractor rolling over.

The tractor can also start rolling backwards, increasing the risk of a backwards flip if the brakes are applied suddenly. Some modern tractors have hydraulically powered brakes and steering, so if the engine stalls, you can lose power to the brakes and steering. Always drive straight up steep hills. Select a low gear before driving up and apply the throttle to minimise the possibility of the engine stalling. Climb with the heavy end up the slope (in reverse). If it’s a straight climb, engage diff lock and four-wheel drive before starting. Don’t change gear when moving up slopes. This increases the risk of the tractor flipping backwards. If you lose traction, apply the brake and clutch together, select reverse gear and back down the hill.

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What to think about before you start contracting There are many benefits to working as a contractor — it can pay better than doing a similar salaried job and be more flexible. But there are hidden costs to think about, too.

supplied by ❚ Article of Business, Innovation ❚ Ministry and Employment ❚

Here’s some tips, information and common mistakes to help you decide if going contracting is for you. Being a contractor means you: • are self-employed • choose what work you do • choose how – and sometimes where – to do your work • are responsible for paying your tax Some people become contractors out of choice, eg to use their skills to earn more than they could in a salaried job. Others do it because they find themselves out of permanent salaried work, eg after being made redundant. If you’re contracting, you can choose to be a sole trader or start a company. There are pros and cons to each option, so it pays to understand what each would mean for you. It’s a common mistake to assume what you’ll earn in a year simply by looking at your contract rate, eg $75 per hour X 8 hours a

day X 5 days a week X 52 weeks a year = annual income of $156,000. There are several costs to include first, eg covering your own sick leave and ACC. If you’re contracting, you may have to get used to unplanned gaps between the end of one contract and the start of another. If your skills are in demand, you can take advantage of these gaps by turning them into holidays. However, it’s normal to want to have continuous work — and get stressed when you don’t have it. Keep alert when working for any clues to what will happen with your contract. You should start looking for more work at least a month before your contract is due to end. To give yourself peace of mind, save a buffer of up to three months’ income in case of unplanned breaks between contracts. As a contractor, you don’t get paid sick leave. It’s a good idea to budget for at least five days a year when you’re too sick to work – and won’t get paid. Make sure you include this in your budget and when working out hourly rates. As a contractor, you don’t get paid for pub-

lic holidays that you don’t work. Make sure you include this in your budget and when working out hourly rates. It’s important you set a realistic hourly rate for your contract work. It needs to cover all your expenses and hidden costs, eg sick leave and public holidays. If you set your rate too high it could put off future clients. Setting it too low could leave you out of pocket. If you are going to work from home and need to set up and equip an office, you can claim back these costs as tax expenses.

Common mistakes • Not putting aside enough money for tax and ACC • Leaving it too late to pay your tax • Not getting advice up front • Not sending invoices on time • Not having your hourly rate high enough • Not making time for record keeping and administration

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January 2022

Check it’s alright before lighting up Every year we receive and respond to hundreds of complaints about nuisance smoke.

Brian reeves ❚ by ECan ❚ Zone Delivery Lead Last year more than 850 smoke-related complaints were lodged with us. The year before that, it was nearly 900. At around $350 per callout, the cost to the ratepayer can really add up. We want to get this number down. Many of these complaints relate to people burning rubbish and waste material outdoors, but we also get plenty relating to stubble burning. It’s often urban people making the call. Many don’t understand that stubble burning is a legitimate and effective way of dealing with crop residue and controlling weeds. Having said that, the fact remains that smoke and ash from stubble burning can be a real nuisance, and negatively affect the lives of neighbours and even those living many kilometres away. The smoke can cause respiratory issues for residents, pets and livestock, force households, schools and parties indoors, and reduce visibility on the roads. The fire itself can endanger life and property if not properly managed. While stubble burning is a recognised option for dealing with crop residue, there are still some things that farmers can and should do before lighting up to ensure better and safer outcomes for all. First and foremost, you should check that it is alright to light. This is crucial. Fire and Emergency New Zealand has a

Check it’s alright website (www.checkitsalright.nz). There you will find a fantastic tool where you enter the type of burn you want to do, the specific day and your address. The tool then gives you a risk profile based on things such as wind speed, temperature, and the fire danger index. Fire and Emergency New Zealand also provides an excellent guide for stubble burning, covering things such as weather, firebreaks, the right way to light, and insurance. I strongly recommend that you look at it. Before lighting up, it’s a requirement to have a smoke management plan, which the person controlling the fire must have on them at the time. These can be found on Environment Canterbury’s website. The plan covers things such as the material being burnt, the expected forecast, the location of the burn, and how any negative effects will be mitigated. Weather plays a big part in determining how much of a nuisance smoke can be. So, it’s important to choose the right conditions. Cloudy days are some of the best for stubble burning. They come with light and unstable winds that are good for dispersing and limiting the spread of smoke. Cool or foggy air is generally bad for burning. The smoke sinks and won’t disperse. Conversely, if the wind is swaying trees or blowing toward residential properties, you shouldn’t light up. Finally, please be aware of the rules in the Canterbury Air Regional Plan (CARP), especially schedule 7 of the plan and the resource consent requirements for burning in buffer zones around some Canterbury towns. Taking your time to get your stubble burning right reduces nuisance smoke and the number of callouts that we need to attend, and protects life and property. If you have any questions or concerns, or any doubts whatsoever about planning your burn, please call us on 0800 324 636.

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Lighting up: Stubble burning is a legitimate and effective way of dealing with crop residue and controlling weeds but the ﬁre itself can endanger life and property if not properly managed.

January 2022

CANTERBURY FARMING

Contractor Standard ensures fair treatment of workers Consumers are more and more concerned about how their food is grown, harvested, packaged and transported. supplied by ❚ Article ❚ Horticulture New Zealand According to the New Zealand Good Agricultural Practice (NZGAP) programme that also means consumers are demanding guarantees that the people involved in food production are being treated fairly. “The New Zealand Good Agricultural Practice Social Practice add-on, and accompanying Contractor Standard, were launched to provide consumers with the confidence that certified growers are ethical employers,” NZGAP manager Damien Farrelly said. “Put simply, the module uses independent, approved auditors to check grower’s employment practices to certify that all workers are treated fairly. “New Zealand growers are leading the way with this new add-on. We’ve built on existing global industry standards, such as GRASP and SMETA, and have taken it further to en-

sure the fair treatment of staff here in New Zealand.” Farrelly said the new module has been specifically developed by NZGAP in collaboration with regulators to meet requirements of New Zealand employment law and ethical standards. “Growers are independently audited to demonstrate they meet these standards,” he said. “NZGAP has always ensured the safe and sustainable production of fruit and vegetables in New Zealand. The new Social Practice module places a greater focus on grower’s most valuable resource - their people.” He said growers are looking forward to the new clarity that the add-on and Contractor Standard will bring. President of the Pukekohe Vegetable Growers Association, and Sutherland Produce compliance manager, Kylie Faulkner said the new Contractor Standard is going

Setting the standard: nZGaP manager Damien Farrelly says the Contract Standard helps to provide consumers with the conﬁdence that certiﬁed growers are ethical employers.

to give growers certainty that any certified contractor that comes on site will meet the standards that we expect of them, and that our consumers also expect. “These new standards will give growers

peace of mind. All growers want to be doing the right thing by their employees. “This module will also prove that, as an industry, we’re setting a high standard in treating our workers well,” Faulkner said.

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January 2022

CANTERBURY FARMING

SUMMER LIFESTYLE BLOCK SERVICES

Drop in number of aerial 1080 operations Fewer aerial 1080 operations took place in 2020 than the previous year, according to the latest annual report on the pest control poison, which also highlights research developments.

❚ by Kent Caddick The report published by the Environmental Protection Authority (EPA) shows there were 31 operations covering 558,000 hectares of land in 2020. This is down more than a quarter on the 44 operations across 918,000 hectares in 2019. The decrease is largely due to the Department of Conservation (DOC) carrying out fewer aerial 1080 operations during 2020 compared with 2019, when DOC operations were higher in response to a mega mast event in New Zealand’s forests. Heavy seed fall seasons (known as masts) drive up rat populations, threatening native species. Sixteen of the aerial operations were commissioned by DOC to protect threatened native plants and wildlife from possums, rats,

and other introduced pests. Six operations were undertaken as part of the TBfree programme to target possums, which can pass on bovine tuberculosis to farmed cattle and deer. EPA’s Compliance, Monitoring and Enforcement general manager, Gayle Holmes, said the average application rate was about three grams of 1080 per hectare, which equates to roughly one teaspoonful of 1080 on a rugby field. This remains well below the maximum allowable rate of 30 grams per hectare. “Due to a lack of other effective options, and the destruction pests inflict on our environment and native wildlife, 1080 remains the most viable management tool at this point in time,” Holmes said. “However, it is essential to ensure that risks to non-target species in particular are managed and mitigated effectively. “Steps should continue to

AGRICULTURAL SPRAYING

Fewer drops: aerial 1080 operations dropped by more than 25% in 2020 according to the Environmental Protection authority.

be taken to avoid any incidents of non-target impacts. “There are encouraging advances in technology and operational planning that we are seeing reported, that should enable better risk management.” Among the reported research are examples of nesting success and survival rates for whio, titipounamu, toutouwai, ruru, pi-

wauwau, and kiwi in areas treated by aerial 1080. Other research deployed drones for precision aerial bait drops in hard-to-reach areas. This involves a purpose-built bait spreader, with very high accuracy from altitudes of up to 60 metres. The operator will introduce drones as part of its work programme in 2022.

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January 2022

Equi-lise is sweet for sweetening horse pastures Horse pastures get a hard time and in most cases there is little reprieve for remediation. supplied by ❚ Advertorial CP Lime Solutions ❚ Horse paddocks are not just used as a secure home, they are either the key source diet, or at the very least, when on hard feed, they provide the ‘nibble’ factor, relieving the boredom between meals. It shouldn’t come as a surprise that the grazing or browsing activities enlist sophisticated selection radar, using senses much, much more sensitive than ours, particularly smell. They know what’s nasty or nice. If they turn their noses up at their pastoral dinner plate in disdain, they’ll keep you busy with ailments until the root cause has been addressed. So, let’s start thinking about the root causes so that we can address them. When there are a concentrated number of animals in a small area, this will result in a concentrated deposit of organic waste and compaction. This can and will impact the ability of the soil to recycle those organic dumps and limit the nutrients necessary for pasture to uptake a balanced and plentiful range of mineral nutrients. The way to address these issues is firstly to ensure there is a good supply of available calcium in the soil. Calcium is like your donkey or pack-horse of the soil. Having sufficient calcium enables all other minerals to move into plants and encourages more soil microbial life to help

breakdown, disperse and recycle dung and urine. Calcium, (among other important jobs), improves root development and soil structure. When you hear the phrase ‘lime sweetens the pasture’, what this actually means is that the calcium has enabled all the other mineral goodies better access up into the plants for a more nutrient dense and palatable feed. Stock become less ‘picky’, graze more evenly and will return to otherwise avoided toilet areas. Addressing calcium will have a significant influence on your soil, pasture and horse’s health. If you do nothing else to keep your horses healthy from the ground up, apply lime, annually. The main source of calcium comes from limestone and the availability of this source of calcium depends on how fine this limestone is. The finer the limestone, the more efficient it is at dispersing and interacting with soil particles and getting the job done. Incorporating other minerals at the same time like magnesium, sulphur and phosphorus, not only assists with the ‘sweetening’ effect, but these other core ingredients enable better photosynthesis activity, or put another way, enables the plants to catch more sunlight energy to further enhance nutrient uptake and thus improve palatability. You can find all of these ingredients along with a pinch of selenium for good

addressing calcium issues in the soil will have a signiﬁcant inﬂuence on your soil, pasture and horse’s health. measure combined with lime for calcium in Equi-lise Healthy Horse Pasture Fertiliser. Equi-lise makes your life easier not only by way of practical application, it’s also an

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January 2022

CANTERBURY FARMING

A beginner’s guide to shearing sheep Many lifestyle blocks owners often get an animal or two either for a pet or for their produce such as milk or wool.

❚ by Kent Caddick In the case of the latter it’s not just a matter of drop and then reap the benefits. Sheep grow wool continuously, so it is important to shear them at least once a year. Shearing is generally carried out in spring, so that sheep don’t get overheated during summer. If a sheep is not shorn, its fleece becomes so bulky that it has difficulty moving around. The fleece can get water logged, and the sheep can become cast and unable to right itself. Also a long fleece is particularly likely to get daggy and soiled, making the sheep very susceptible to flystrike. In very hot weather, sheep carrying too much wool will get heat stressed, and this is even more likely if the sheep is very fat. When preparing for shearing don’t use any insecticide chemicals on the fleece for six weeks before shearing. When using chemicals on the wool, check the withholding times. If sheep are dirty, prepare for shearing by having them crutched and dagged (ie remove dirty wool from the belly, and from below and around the tail). Make sure the sheep are completely dry before shearing, otherwise cuts are more likely to become infected and the damp wool

Thinking ahead: Shearing your sheep in spring will help them to remain cool over summer.

will heat and get mouldy when stored. Shearers will refuse to shear wet sheep as it can cause skin infections and boils. To prevent damage to the shears and the sheep, warn the shearers if the sheep have large ear tags (plastic or brass). Make sure shearers are aware of any wethers among the ewes. Hire skilled shearers shear your sheep. Keep your sheep in yards overnight, prefera-

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bly under cover, so their stomachs and intestines empty out a bit and so they remain dry even if it rains in the night. Don’t pack them in too tightly or they will dung on each other’s wool. Because newly shorn sheep feel the cold, put them in paddocks with windbreaks and plenty of pasture after shearing. It may take six weeks for the fleece to regrow sufficiently to provide effective insulation.

If you don’t have good shelter for your shorn sheep, or if you are shearing them in winter, ask the shearer to use winter combs. These leave a short layer of wool to help protect sheep from cold weather. Sheep need extra feed after shearing. If there is insufficient pasture, step up the supplementary feed. The best time to apply louse and flystrike prevention treatments is after shearing, while the wool is short.

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CANTERBURY FARMING January 2022

Keeping the grass green It’s no good just looking from the kitchen window and deciding that if the paddocks look green, all is well.

❚ by William MIlnes Pasture has to be long enough for stock to graze, and for cattle this means at least 10cm high. Unlike horses with both top and bottom teeth allowing them to nibble, cattle are unable to do that, and if they are forced to try, they end up wearing away their bottom teeth and eating large amounts of soil which is bad for digestion. Sheep can eat much shorter pasture but need enough to prevent them having to eat down to soil level too. Lush green pasture is low in Dry Matter (DM) so has a high water content, it’s high in protein and energy, but very low in fibre which is important for good rumen digestion. So it’s a very unbalanced feed hence the need for supplements. With hard frosts in the South Island, growth rates per day can be zero. So this means the deficit has to be made up totally with good quality supplements, so the ‘condition’ of your stock is the best guide to their health and future performance. The individual feeding needs of different stock will vary over time, and there are tables to provide these data or talk to a consultant or farmer who does regular feed budgets.

Strategic use of nitrogen is always recommended to boost pasture production, but you need to have a good ryegrass content in the pasture and the 10cm soil temperature needs to be above 6degC, and the ground is not waterlogged. Nitrogen fertiliser such as urea is cheap to buy and easy to apply as it’s in granulated form, but with so much concern now for the environment, be careful to keep the spreader well clear of creeks and wet parts of the paddock, and it’s also better to apply a number of small dressings of under 20kg N/ha rather than in one large dollop. The biggest sin anyone can commit on a farm or lifestyle block is to damage the delicate soil structure. Dig a few spade spits and examine it carefully seeing how deep the tiny root filaments grow down to, and how many worms there are. Smell the soil too which should be a very pleasant aroma. So at all costs avoid pugging the soil, as there’s no point in seeing the highly-nutritious spring pasture grown at considerable expense, being pushed down into the soil by animals although sheep are generally not a problem. Get a soil test done if there hasn’t been one done for over a year. It’s an ideal time

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Pasture perfect: Just because the grass is green doesn’t mean all is well on the lifestyle block. of year to get your lime applications completed. Avoid putting stock to graze on paddocks where fertiliser has been newly applied. Fertiliser needs rain to wash it off the leaves. Weeds never give up so if you had a bad weed problem last season, start working on it now to get the timing right. Timing of weed spraying is the key, so you have to be able to recognise weeds in the early vegetative stages, long before flowering or seed heads appear in summer.

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Get a soil test done if there hasn’t been one done for over a year.

January 2022

CANTERBURY FARMING

FORESTRY & LOGGING

Keeping it safe when harvesting supplied by ❚ Article ❚ Farm Forestry New Zealand

Timber harvesting has been, and unfortunately continues to be, a dangerous task.

The most prudent option is to engage with a professional forestry company, consultant or contractor to ensure they have the approThe Health and Safety at Work Act (HWSA priate health and safety plans in place. The forest industry has been working hard 2015) makes it clear that all Persons Conducting a Business or Undertaking (PCBU) at improving its safety record and has a dedicated Safety Council. A comprehensive rehave a responsibility for safety. A landowner engaging in a timber harvest- view of the forest industry was completed by ing activity is by definition a PCBU and should an Independent Panel and a summary docuactively take part in ensuring health and safe- ment outlining some of the main shortcomings, as well as an agenda for change, was ty of the people working on their land. It is unlikely that a small scale forest land- published (IFSR 2014). A number of initiatives have been unowner will have the expertise to develop a detailed health and safety plan for the timber dertaken including setting up ’Safetree’ a website that provides resources such as docharvesting operation. uments and videos on how to complete timber harvesting safely. WorkSafe, which is the New Zealand regulator for health and safety, have published a great document entitled “Managing a Safe and Healthy Small Forest Harvest” that provides an excellent resource in terms of practical step-by-step guide for managing your harvest. For example, one task the landowner must complete is the identification of hazards Do you have a stand of trees? on the property and making sure they are communicated Would you like these removed? to the logger. We can offer you competitive rates and Examples of hazards on cash in return! farm woodlots can be fences, proximity to powerlines, PHONE KENT ON but also the strength of stream crossing structures. 021 325 661 SUPPLIES LIMITED You are also likely to be 21 Manion Road, Rolleston responsible for the safe acwww.macrocarpasupplies.co.nz cess to the forest on the

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Harvest time: Farmers with a forestry block ready for harvest are advised to engage with a professional forestry company, consultant or contractor to ensure they have the appropriate health and safety plans in place. farm, so if the farm roads and tracks leading to the area to be harvested are steep and not accessible for a logging truck in wet weather, then you need to take action to restrict access. With regard to the individual harvesting tasks, there is an Approved Code of Practice (ACOP 2012) for forest operations that is considered a minimum standard, and it includes the expectation that all workers are both trained (or in training) and competent in carrying out the designated harvesting task. Best practice guides are also available from various sources including for higher risk practices such as manual tree felling or choker-setting (known colloquially as ‘breaking-out’ in NZ), or complex harvest systems such as cable logging.

‘

One task the landowner must complete is the identiﬁcation of hazards on the property and making sure they are communicated to the logger.

FORESTRY & LOGGING

allan Laurie MnZIF ❚ with ❚ Laurie Forestry Ltd

CANTERBURY FARMING

January 2022

A wide range of positives and negatives

In the broadest sense, domestic log prices and demand have remained strong, once again proving the domestic sawmilling capacity remains fundamental to a strong New Zealand forest industry economy. Meanwhile log exports basically remain in the can with low at wharf gate prices seeing volumes grind to a trickle. The very real impacts of this are felt in the forests and on forest roads with many logging crews and logging trucks parked up. Not a good scenario for a lead up to Christmas. On the positive side, daily softwood log consumption across the China eastern seaboard has remained around the 70,000 cubic metres per day over the last month, despite a high level of negativity in the market, a consequence of some profitability woes in the construction sector. China softwood log inventory remains largely unchanged at just over 5 mil m3 at key ports important to NZ trade, over 6 million all numbers counted. With drops in CFR prices log deliveries from all sources is slowing. The inventory will drop very quickly in December and January as deliveries from NZ slow, and it will need this for the market to recover. The current breakeven point for NZ logs V domestic sales is CFR US$140 per cubic metre but most NZ exporters are attempting to settle at US$130 for December and January sales. The problem here is buyers are seeing the declining rates and are sitting with arms folded waiting to see where the bottom is.

Contracts and Letters of Credit have become rarer than a good NZ politician, so right now very rare. Ultimately this means there are a large number of vessels heading to China with distressed cargos. This means, whilst buyers keep their arms folded, nobody actually knows where the sale price point is until one of the larger exporters gets a home run. Added to this tale of woe is overall sentiment in China remains negative with Evergrande having missed their second debt payment deadline and their popularity with investors falling lower than an Auckland holiday maker in Northland. Other construction companies are falling by the day with another big player in the construction space called Kaisa having also just missed a bond payment. In total, construction sector problems are weighing heavily on the market. Of some interest here is the lack of reaction in the broader macro-economic sense to what is a major contributor to China GDP. This then suggests most believe the Government will pitch in at some point with a bale out package, the CEO of Evergrande will do

‘

Something akin to a complete mess, operating in a chaos of confusion, but potentially saveable.

a Houdini, and within a few months it will be back to business as usual. The supply/demand commentary continues to suggest the about to happen significant drop in NZ deliveries will see inventory shrink quickly, with most predicting the market fundamentals will recovery mid Q1. NZ production will play a pivotal role in how that all plays out. Meanwhile, despite what looks like a dire situation, it is not unlike NZ current COVID management policies. Something akin to a complete mess, operating in a chaos of con-

fusion, but potentially saveable. NZ at wharf gate prices increased by between NZ$10 and $20 per cubic metre in December. This was due to shipping, with rates falling rapidly when ship owners heard the continuing “sorry not required” message from NZ exporters for November/December fixtures. The Baltic index has bottomed out and most believe rates will increase again Q1 when the Aussie grain harvest, as an example, gets in to full swing and Handy class segment become more sought after elsewhere. Add in a reasonable rebound in China in house sales as recent Government incentive packages start to turn some of the fundamentals around, and you have a sense the market has bottomed. However, we are in for a very challenging and highly difficult to predict space over the next few weeks. What we say today may not hold true tomorrow. As always people, please remember the thoroughly important message, “It remains, as always, fundamentally important, no matter the challenges, the only way forward for climate, country and the planet, is to get out there and plant more trees.”

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Harvesting & Marketing, Consultants & Managers

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Specialists in: • Woodlot and Forest harvest - at any scale • Direct log sales in both domestic and export segments • Top quality H&S systems and management • Forest right or cutting right purchases • Planting and silviculture management • Top advice, top people, top service

See our website for information including Market www.laurieforestry.co.nz Reports and Log Price Tables www.laurieforestry.co.nz The Climate Change Commission wants another 380,000 hectares of plantation forests in the next 15 years, to offset greenhouse gas emissions from other industries. We are only too happy to help fight climate change. Our plantations absorb carbon at a great rate. They are also, quite frankly, great export investments and employment providers.

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Office: Phone 03 359 5000 Email: admin@laurieforestry.co.nz Unit 3 337 Harewood Road Bishopdale Christchurch 22 Shearman Street Waimate Phone 03 689 8333 • Cell: 027 432 1420

January 2022

CANTERBURY FARMING

DAIRY

Record number of elite young bulls Farmers around New Zealand are set to reap the rewards from a record number of genetically superior young bulls joining the ranks of LIC’s artificial breeding bull teams as a result of the co-op’s continued investment into genomic selection.

❚ by Kent Caddick Twenty-six young, genomically selected sires have made the cut to join the teams this Spring, up from 23 bulls last year and 17 the year before. LIC Livestock Selection Manager Simon Worth said the 2017-born cohort, commonly known as ‘Spring bulls’, secured their spot in the teams after their superior performance predicted by genomics was validated by herd testing data from their first crop of daughters now being milked on farms around the country. “The record number of young bulls graduating into our Premier Sires teams this year demonstrates the accuracy and value in using genomic selection in our breeding scheme,” Worth said. “Based on these bulls’ DNA and ancestry we predicted they would produce phenomenal dairy cows, and that has well and truly shown itself to be true as their daughters are now being milked with great results.” Worth said farmers can now utilise these elite genetics this mating season. “The nature of our fresh semen service means we can select a bull to join a team one day and then his semen can arrive onfarm the next day for insemination, so we can deliver that genetic improvement onfarm almost immediately for farmers to capitalise on.” He said securing a place in one of the coop’s renowned Premier Sires bull teams is no easy feat and rightly so as the teams are

Record numbers: The number of Spring bulls joining LIC’s Premier Sires team, including 4-year-old bull Waimata SB ransom-ET S2F (pictured), is the highest to date, reﬂecting the increased accuracy in the performance predictions.

responsible for siring up to 75 per cent of the national dairy herd. “There’s a lot of boxes a bull needs to tick to earn a spot in one of our teams. First and foremost, he must be able to produce daughters which have the outstanding production and efficiency expected of the next generation of New Zealand dairy cows.” Worth said this year’s Spring Bull gradu-

ates are now some the most genetically superior sires for AB that New Zealand has to offer, taking out six of the top seven spots in the industry’s Ranking of Active Sires (RAS) list which ranks bulls from all breeding companies according to their breeding worth. Wor th, who has been working in LIC’s Livestock Selection team for 18 years, said he can’t remember a graduation rate

as high as this year. “This is really gratifying for us with the work we do – from the contract mating through to bull team selection – and ultimately great news for New Zealand dairy farmers.” LIC is a farmer-owned co-operative and a leader in pasture based dairy genetics and herd management, with origins dating back to 1909,

IMMIGRATION AND RECRUITMENT EXPERTS JOIN FORCES Recent changes to immigration processes and plans to reopen the border to migrant workers next year, along with mandatory employer accreditation from July 2022, made creating a partnership with an immigration specialist a natural progression for Rural People director Paula Hems. Paula selected Visa Max owner Bevan O’Connor to provide specialised immigration services for her rural recruitment business based on their shared values of honesty, empathy, and professionalism. “We deliver an exceptional service to our clients which puts people first. As a migrant myself, I understand what migrant workers are going through when moving to a new country and organising a job with a good employer. “Bevan and I both believe in a business model based on integrity which provides employers with a competitively priced service while maintaining a proven record of exceptional service and care for the staff we recruit.” The upcoming changes to immigration include a new one-off streamlined residency process which begins on 1st December. Residency applications will be open until 31st July 2022 and will enable over 100,000 migrants to obtain New Zealand residency.

Bevan says providing certainty to migrants via residency and allowing them to reconnect with their families is vital. “It is really important to be able to offer migrant workers the chance to move forward with their lives. This also helps our rural clients who have been losing excellent workers to other countries due to New Zealand not being able to process new Expressions of Interest (EOIs) for residency during the pandemic.” The gradual border reopening throughout 2022 will allow more vaccinated workers and family members of migrant workers to enter the country, which Paula says is vital for boosting our rural economy and the wellbeing Rural People of migrants.

growing bu director Paula Hems ha siness. s partnered wit

“It’s been really tough for our farmers. They have been crying out for workers and losing staff due to uncertainty over residency. These changes will help to alleviate these issues.

“Being able to reunite with overseas family members will also ease a huge mental burden for many of the staff we have placed.” Rural People client Sam Spencer-Bowers says Paula and her team are ex-

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tremely helpful when it comes to working through the immigration process to secure the appropriate visas for migrant workers on their North Canterbury farm. “We have been using Paula for five years, and we keep coming back to her because she is so helpful, down to earth and makes things happen for us.

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“Running a farm is a time-consuming business and we don’t want to be bogged down with paperwork for visas and immigration. “It’s more cost-effective to let Paula take care of it and then we can get on with the things we need to be doing on the farm.”

Rural People are passionate about working with the Dairy Farmers of New Zealand www.ruralpeople.co.nz

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DAIRY

CANTERBURY FARMING

January 2022

High farmer uptake on winter grazing farm plans More farmers than ever had winter grazing plans in place according to Beef + Lamb New Zealand and DairyNZ.

❚ by Kent Caddick New winter grazing rules will be coming into effect this year and a detailed plan for every winter crop paddock will help meet the outcomes required. An estimated 80 percent of dairy farmers had winter grazing plans as the season got underway in June and over 1200 farmers are armed with Beef + Lamb New Zealand’s new Winter Grazing Module. DairyNZ farm performance general manager Sharon Morrell said DairyNZ’s annual winter grazing consults with 150 Southland and South Otago farmers highlighted the prep and good management practices in place this past season. “Around 80 percent of dairy farmers had a plan last winter, but there was also a clear desire of farmers to go the extra mile,” Morrell said. “There’s a real community drive toward lifting practice and holding one another to account. It’s a real credit to farmers as they bring a team approach.” Winter grazing plans offered online by DairyNZ and Beef + Lamb New Zealand saw a five-fold increase in downloads, compared to 2019. Morrell said those plans support the whole farm team to apply good practice winter grazing. “We also saw an estimated 89% of dairy farms with a contingency plan for 2021.

These are one of the most important things for farmers to have for a successful winter.” said Ms Morrell. Farmers use a contingency plan to manage severe weather or bad paddock or soil conditions to help protect animal comfort and minimise mud – with flow-on benefits for environment and waterways. B+LNZ’s North Island GM Corina Jordan said DairyNZ and B+LNZ campaigns supported farmers to implement sustainable intensive winter grazing activities this year, and this work has been crucial to supporting farmers. “The number of sheep and beef farmers with winter grazing plans in place this season was high,” Jordan said. “The number of attendees at our winter grazing events has more than doubled from last year and we know over 1200 farmers have our new Winter Grazing Module, either through our farm plan or attending a specific winter grazing workshop.” Jordan said conversations with farmers identified changes to reduce soil run-off, as well as smart ideas to graze strategically so drier parts of a paddock are available in wet weather.” Also identified was the need for farm decision-makers to close the loop with the team managing paddocks, to help with day-to-day management. “A farmer’s main priority is the cows and where they can lie. Farmers have been shar-

Graze on: Beef + Lamb new Zealand and DairynZ are both reporting an increase in farmers using winter grazing plans. ing with us detailed descriptions of what cows need and what the team looks for, so cows can rest in drier areas,” Morrell said. “The feedback we’re getting from farmers is they appreciate the practical farmer-led approach and we’ll continue to work across the sector, with regional councils and farmers on achieving positive outcomes across animal welfare, the environment and sustainable farming business.”

She said now is a good time to reflect on what went well and can be improved for next season. “Look back over the last two winters, what were the wins and what needs improvement, and plan paddock selection and cultivation with those learnings in mind. “Also think about how the system, including your team, coped this season.”

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January 2022

CANTERBURY FARMING

DAIRY

Tips for maize crop establishment Many dairy farmers use maize crop as part of their pasture renewal programme, however not all paddocks are equally suited for maize production.

❚ Article supplied by DairyNZ

Steep paddocks are not only difficult for cultivation and harvest but tend not to yield well. Low lying wet paddocks often lead to cultivation delays and often don’t yield well unless drought conditions prevail. A paddock that is wet under pasture acts as if 10% wetter when the structural strength of the pasture is removed by cultivation. Wet paddocks risk loss of soil structure under cultivation which leads to lower yields. Long-term effluent paddocks have high N and K levels and ideal for growing a deeprooting crop of maize often without using bagged fertiliser. Long-term dairy pastures have high fertility levels with means N fertiliser inputs for maize crops can be reduced without impacting yield. To grow high-yielding maize on farm for the least cost, consider the factors which make the contractors’ jobs speedy and efficient and reduce harvest cost, eg paddock location, access, entrance ways, track conditions, culvert strength, and overhead wires.

Soil preparation Maize seed is normally sown around 5cm deep. An uneven soil surface (undulations, ruts etc.) makes it difficult for the planter to sow at a uniform depth resulting in variable emergence. Maize does not need a very fine seedbed, it is a large seed and seed-to-soil contact is generally sufficient for germination, except on very cloddy soils. Light rolling after sowing may help seedsoil contact, seal in moisture, and reduce risk of wind erosion.

Planting maize: not all paddocks are equally suited for maize production.

Maize nutrient requirements Maize requires substantial nitrogen (N) and potassium (K) both of which are present in dairy soils.

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On cropping farms, N is the nutrient most likely to limit maize yields and the largest fertiliser input. These inputs are generally unnecessary on dairy paddocks coming out on long-term pastures. Up to 300kg N/ha is released from soil organic matter when high fertility dairy pastures are cultivated. Maize is unlikely to respond to K fertiliser unless soil K test levels are very low. Replacement K fertiliser can be applied after harvest to avoid any luxury uptake by the maize crop (luxury uptake is the K uptake in excess of what the plant needs. K can be absorbed by plants in amounts

higher than what is needed for optimum yield, this can lead to higher than normal concentrations of K in the plant tissue). Soil test for N before applying post-emergence N fertiliser to determine requirements. There are two soil tests regularly used for maize: • Basic soil test (0-15cm) for pH, Olsen P, K, Ca, Mg etc • Deep N test (0-60cm) for mineral N. Dairy effluent can be used as a nutrient source for maize provided the crop requires the nutrients and good effluent practices are followed.

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CANTERBURY FARMING

DAIRY

January 2022

A little magic from Golden Bay ❚ with Peter Burton

The cost of imported fertiliser products, particularly those containing soluble phosphorus and potassium, have lifted sharply in price in the last six months with a strong likelihood they will again be more expensive in autumn.

After debt servicing fertiliser is usually the next biggest expense and when budgets are tight cutting fertiliser inputs is an easy, if misguided way to help balance the budget. Although income from meat and milk look to remain strong over autumn the income is received after decisions on fertiliser inputs are made and with all costs continuously rising there will be the temptation to look for a cheap option. The most productive soil fertility programmes are those with higher than usual base calcium inputs. The amount of calcium in an animal’s diet determines the size of the frame which dictates its weight, capacity, and ultimate value. As in all natural systems a good big one nearly always beats a good small one. There are exceptions, however, it’s a useful rule of thumb. Fastest growth rates are achieved by animals fully fed on clover dense pastures, without exception, due to clover being more digestible than other pasture plants. This means that animals in their naturally allotted grazing times can eat and fully digest more kilograms of dry matter. That dry matter also contains often 3 to 4 times the amount of calcium with mature clover often containing more than 2.0% calcium. More calcium means bigger bones resulting in more meat and increased milk production, and the really good news is that calcium is the most abundant and cheapest nutrient available. All dairy farms, and many intensive fattening operations also require magnesium on an annual basis to ensure optimum animal health and performance. Golden Bay dolomite contains both calcium and magnesium in the carbonate form. It differs to ag.lime only in that it instead of containing 30% to 35% calcium, 11% is magnesium. An annual 250kg/ha application of dolomite provides 28kg/ha of magnesium, enough to ensure optimum growth rates of young animals, and minimal calcium/magnesium related metabolic disorders in high performing dairy cows. It’s a remarkably effective insurance policy for all farms requiring annual magnesium inputs. Cows down behind hedges at five in the morning become a thing of the past relieving stress on already stretched operators and their staff.

It’s magic: The amount of calcium in an animal’s diet determines the size of the frame which dictates its weight, capacity, and ultimate value.

It also provides a number of other benefits. Calcium and magnesium are removed from farms with every kilogram of meat and litre of milk. Unless replaced regularly animal and total farm performance slides, imperceptibly at first, however by the time it’s obvious significant income has been lost. Loss of pasture production due to compaction over winter is a genuine issue on all farms and where severe damage has occurred total pasture production for the season may be reduced by as much as 50%. Dolomite is an outstanding natural soil conditioner helping repair damage reducing the requirement for physical aeration or cultivation. Magnesium is also a carrier for phosphorus ensuring efficient plant uptake of this essential element. With the cost of suitable phosphorus steadily escalating reducing fertiliser costs by regularly topping up soil magnesium is a sound practice. A 28 tonne truck and trailer load of bulk dolomite covers 112 hectare spread at 250kg/ha. On dairy farms this is best done annually, and on intensive fattening situations every second year is usually sufficient.

Because dolomite is a finely ground rock For more information call Peter on 0800 4Dolomite the release is steady over time and may (0800 436 566). therefore be applied at any time during the year without Electrical Problems or Maintenance? diminishing its outstanding impact on animal health in spring.

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January 2022

CANTERBURY FARMING

WATER & IRRIGATION

Installation tips and in-season maintenance of an irrigation system When designing and installing a new irrigation system, it needs to fit your land, business and water restrictions. A well-designed system means efficient use of water, energy, labour and capital.

❚ Article supplied by DairyNZ

A new system is a major investment and should be thoroughly researched. Use a ‘Blue Tick’ accredited operator for installation work and advice. IrrigationNZ has a range of resources to help in the design and installation of a new irrigation system. When designing a new irrigation system, consider installing a soil moisture monitoring system. This will help with irrigation scheduling and allow you to irrigate efficiently. IrrigationNZ has information on soil moisture monitoring equipment and how to install it. When installing a new irrigation system or pump, make sure you get the performance specifications from the supplier which will be a benchmark for future checks and testing. Failures of pumps and irrigation equipment during the season can waste a lot of time, restrict pasture growth and create stress. Regular equipment checks and ongoing maintenance is vital in preventing breakdowns and reducing the chance of serious damage. Having a weekly or monthly and annual task list for irrigation maintenance, where you can check tasks off easily, ensures main-

tenance is kept up-to-date. Below is a summary of some essential maintenance procedures for most irrigation systems. For more detail specific to your system, contact the service provider. If you install a new pump, ensure the supplier provides the specifications and a pump commissioning report. This will serve as benchmarks for future checks.

Maintenance checklist during irrigation season At the pump: • grease pump and motor • check flow readings, operating pressures and amp readings to compare with initial readings or specifications. At the irrigator: • check sprinklers for condition, rotation, blockage, nozzles not hooked up, wear and tear • check irrigation speed and operating pressure • check application depth and compare against design specifications • check hoses and pipes for damage or leaks

Check it: regular equipment checks and ongoing maintenance is vital in preventing breakdowns and reducing the chance of serious damage to your irrigation system. • follow maintenance schedule for regular greasing of travelling irrigators • have a plan to manage travelling irrigators in high winds. This may include turning water off but keeping the irrigator filled with water; parking the irrigator behind shelter; or in the same direction as the wind to minimise the contact area. Tie down rotary booms.

Problems which occur with irrigation can range from minor issues which take time to fix, through to major problems that cost time, money and loss of pasture production (from delayed irrigation) or loss of nutrients (through over watering). It is important that any problem is fixed quickly and the cause identified to stop it happening again.

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CANTERBURY FARMING

January 2022

Highs and lows of groundwater

While Canterbury groundwater levels are now generally about average, very low groundwater levels occurred in Canterbury in early 2021 and have done so in the past.

Helen rutter ❚ with Aqualinc ❚ So, what causes the fluctuations in levels and what might happen in the future? Groundwater under the Canterbury Plains comes primarily from a combination of leakage from our rivers and from rainfall recharge on the Plains. The river recharge is relatively steady and maintains a baseflow through the aquifers. Rainfall recharge mainly occurs in winter when the soil is wet. It varies from year to year, ranging from next to nothing, to very significant. On average, about half of the groundwater recharge comes from rivers and half from rainfall. The rainfall recharge component mainly causes the fluctuations we see in levels. Levels usually rise in winter due to recharge and then fall during summer as groundwater flows down to the coast. However, abstraction also draws down groundwater levels, and is increasing the seasonality of groundwater fluctuations: that is, they fall more in summer than would have occurred without abstraction. Groundwater levels and the degree of fluc-

tuations varies according to location and depth of wells. Water levels close to the coast tend to be more stable, while wells further inland, such as around Kirwee or Darfield, can experience water level fluctuations of 20 to 30 metres or more. L36/0282, which is an ECan monitoring bore at Bankside, illustrates typical patterns of groundwater level fluctuations. For example, it shows periods of high recharge from 1992-1996 and low recharge in 2014-2017. The effects of the August 1992 snow and the Darfield earthquake in 2010 can be clearly seen in the figure. Recent high recharge events causing significant rises in groundwater levels include rainfall from ex-tropical cyclones Debbie and Cook in April 2017 (followed by intense July rainfall) and the extreme rainfall event in May 2021 that led to catastrophic flooding. In both years, the winter recharge events caused recovery from exceptionally low levels. The cumulative effect of several years of low winter recharge results in extreme low levels, such as was experienced in 20142017 and 2020-2021. These low levels re-

L36/0282, a 40m deep well near Bankside. duce outflows at the coast and importantly in areas where groundwater supports river flows, such as at Coes Ford. They can also impact on groundwater users as water levels fall to below pump intakes. The setting up of the West Melton Dry Wells Committee in 2017 was a result of the impact that extreme low groundwater levels were having on water supplies for the community. Knowing where groundwater levels are

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likely to be in autumn can be a benefit to groundwater users. Increased knowledge of how much they might decline over the summer can result in improved ability to plan in advance. Where they will be at the end of summer depends on where levels are now and the rate of decline that typically occurs. By assessing historical levels at a particular location, we can predict approximately where levels will be in autumn. We can also predict where they might be next season depending on whether winter recharge is high, medium or low. What we can say about this season is that groundwater levels in most areas are typically near their average for autumn. Precisely where groundwater levels will be at the end of summer will be controlled by whether recharge occurs and how much groundwater use occurs, both of which are affected by the weather. Where they will be next season will also depend on the weather and if that vital winter recharge occurs.

January 2022

CANTERBURY FARMING

WATER & IRRIGATION

Choosing a soil moisture probe Primary Insight recently ran an irrigation scheduling workshop for crop farmers that focused on what soil moisture probes are the most cost-effective option for cropping.

• Disadvantages: Weekly measurements not ideal for daily irrigation requirements; Needs to be measured by a registered service provider.

andrew Curtis ❚ by ❚ Primary Insight This is the most common question we get asked by growers noting the unique nature of crop farms. Following is an overview of the pros and cons of the main types of sensor probes available in New Zealand.

Telemetered vertical probes • Advantages: Best choice for arable farms; Easy to install and move; Gives a good picture of rooting activity and soil moisture down the profile; At least hourly measurements; Most measure soil temperature as well as moisture, and some also measure salts (ions) which give an indication of fertility. • Disadvantages: Need to be installed well to get good soil contact; Need to be connected to telemetry unit.

Bluetooth vertical probes • Advantages: A good choice for arable farms (where no livestock); Easy to install and move; At least hourly measurements; Cheaper than telemetered option.

• Disadvantages: Not suitable around stock as part of probe is above ground; Need to remember to download measurements; Need to be well installed to get good soil contact.

Tapes • Advantages: Large measurement area; Good accuracy. • Disadvantages: Long time to settle in and give accurate readings; Difficult to move; Need to be connected to telemetry unit.

Handheld probes • Advantages: Can take measurements yourself; Range of price points, noting the price typically relates to measurement repeatability and accuracy. • Disadvantages: Need to remember to take measurements; Need to understand results.

Neutron probe service • Advantages: Accurate and relatively large measurement area; Easy to move.

Our advice to cropping farmers is telemetered vertical probes are the best and most reliable solution, and bluetooth vertical probes are also an option if no livestock are present. Yes, there is a small cost associated with installing and then removing these each year, but the yield and quality gains more the cover this. The other question we are commonly asked is how many soil moisture sensors are needed? To answer this, it is important to first understand how irrigation is managed. This involves looking at the irrigation systems and how they are managed, and relating the crops grown and any significant differences in soil type to these. Installing a probe for each area that is managed differently is the best practice approach; prioritising the areas that provide the highest return is the good practice approach. The other key aspect to check before purchasing a soil moisture probe is the website interface. Is it easy to understand? Do the numbers make sense? Can you combine individual sensor readings to create a useable trace that makes sense? If not look I suggest you keep looking. Primary Insight has the knowledge and skills to help you ﬁnd the most cost-effective soil moisture solution for your farm, including the full range of Sentek sensors. For more information visit www.primaryinsight. co.nz

CANTERBURY FARMING

LIVESTOCK

rob Cochrane ❚ with Wool Procurement ❚ PGG Wrightson WoolManager, ❚

January 2022

Wool quality and value The New Year is upon us already and with it we enter the second half of the wool selling season.

Recent wet weather in many areas of the South Island will probably impact on wool quality which, no doubt will become apparent when many crossbred wools, shorn throughout January and February, are sampled and tested ready for sale. Final wool auctions for 2021 were held on 16th December in both Napier and Christchurch (commonly referred to as a double sale) where a total of 13,000 bales were offered to the export trade. In the North Island around two percent of the offering was passed-in, failing to reach grower expectation, whilst in the South Island passed-in rates reached closer to 25%, due mainly to the wider mix of types in the South. Crossbred wool prices faltered slightly at both auctions due to limited orders but also possibly due to the on-going shipping difficulties. Mid micron wool types at the South Island auction received reasonably firm interest for the finer edge but struggled to maintain recent levels for those coarser than around 27 microns. A small offering of Merino wool types received very strong interest from the buyers’ bench with another season’s high price reached in the PGG Wrightson catalogue for a single bale of specialty type extra-fine Merino wether wool measuring 13.1 microns from

‘

... neither of us having a measuring tape, we cut a piece of string to the correct length and took it to the local hardware shop where we borrowed a tape to ﬁnd out how long is piece of string.

“The Bend” near Patearoa, fetching $55.50 per kilogram greasy ($83.08 per clean kilogram), with other lines reaching up to $58.00 clean. Recently I was quizzed about the wool industry by a couple of newly introduced to me urban dwellers who asked about my vocation.

I explained how farmers shear their sheep, al builder of 40 plus years) holding out the press the wool into bales, transport wool string beside a measuring tape was hilarious bales to a broker’s warehouse where the and suggested that the scene would make a bales are weighed, grab samples drawn for classic advertisement for their brand. At that point of the conversation with my buyer assessment, core samples taken to be tested by an independent laboratory measur- two new urban friends, who were indicating ing a range of parameters to gauge process- far less boredom than I had imagined, I exing ability, a wool catalogue produced along plained a bit about the different wool breeds, with all relevant information, and valued and microns, yields, vegetable matter, colour, scouring, dyeing, spinning, yarn, twist, weavsold by auction or private treaty etcetera. At that point one of them asked “so... ing, warp, weft, finishing, tenterhooks, knitwhat’s a kilogram of wool worth?” I then de- ting, tufting, and whatever else I could think scribed an occasion when recently at the hol- of to answer a barrage of questions, ending iday home of my in-laws, my brother-in-law with something like “therefore a kilogram of needed assistance to measure a curtain rail wool can be very different in value dependfor replacement but, with neither of us having ing on what product it is destined for”. They a measuring tape handy, we decided to cut a both nodded. Following on from The Year of the Ox in piece of string to the correct length and take it to the local orange hardware shop, where 2021 is The Year of the Tiger in 2022 so we borrowed a measuring tape from the shelf here’s hoping the market has a more of a (I can say we each purchased a measuring “roar” than a “bellow” to it! That’s my view. tape before we left the shop) and proceeded to find out how long the piece of string was. One of the staff thought MORE RETURNS FOR the sight of a couple of home YOUR WOOL handymen (we didn’t let on that one was a profession-

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January 2022

CANTERBURY FARMING

LIVESTOCK

Head along to an agricultural emissions pricing roadshow Happy New Year. Many of us are enjoying a positive start to 2022 with record prices for milk and meat and plenty of feed on-hand thanks to the rain pre-Christmas. Rain at that time of the year is the best present any Canterbury farmer could wish for.

nicky Hyslop ❚ by Director, Beef + Lamb New Zealand ❚ Central South Island ❚

This year is shaping up to be another busy one for our sector as we continue to adjust to operating in a new regulatory and covid-19 environment. Farmers are understandably uncertain about the environmental regulations coming

their way and one we all must consider early this year is the way our sector addresses climate change. In February, Beef + Lamb New Zealand along with DairyNZ, will be running a series of roadshows throughout the country seeking farmer feedback on two proposed agricultural emissions pricing options. Just as background, in 2019 the Government agreed to leave the primary sector out of the ETS if the sector could come up with an alternative pricing mechanism that would drive reductions in emissions. He Waka Eke Noa was formed and incorporated 11 different primary sector organisations as well as iwi and the Government. They were tasked with coming up with options that would work for horticultural producers as well as dairy, sheep and beef farmers.

This was no easy task. He Waka Eke Noa whittled the 140 options that were on the table down two and these are what we will be introducing to farmers in February. Both options recognise the sequestration that is happening on farms (including through native vegetation) enabling allowing farmers to offset some of their emissions. Under the ETS, which is the backstop option if as an industry we cannot agree on a suitable alternative and which the Government could introduce before 2025, sequestration would not be recognized. I strongly encourage each and every farmer to attend one of these roadshows. This will impact on the way we do business in the future so it is vital farmers have their say. As a sector and individuals, we all need to play our part in minimising our greenhouse gas emissions. The flood event that hit our region last winter was yet another example of the extreme weather events that are becoming more commonplace under a changing climate.

Talk to us today about your farms soil fertility. We offer a soil testing service and will recommend and supply you with a fertiliser program to suit you and your farms individual needs.

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Farmers will bear the brunt of climate change and while we are amongst the most efficient producers of red meat in the world, we can always do more as the science evolves and new tools and resources become available. I am often asked why should our sector have to reduce emissions when absolute emissions have already decreased by 30 percent since 1990? It’s true that our sector has made significant reductions. However, this doesn’t mean it’s ‘job done’. Those reductions were from high levels of warming and were primarily due to land-use change. It is true that methane emissions have been stable for some time and therefore not adding additional warming – however the existing warming is ongoing and significant. The bottom line is that as a sector, we’re still having a warming impact and given methane’s short-lived but potent impact it’s important that we aim to prevent any further warming.

CANTERBURY FARMING

LIVESTOCK

January 2022

Brace yourself, a new normal lies ahead Looking back over 2021, most of us will have been left with mixed emotions. Velvet prices were great, there was plenty of feed in most districts and few deer farmers were laid low by Covid. That’s the good.

But, looking back, we can see that the Covid-19 pandemic tainted many aspects of our lives and farming businesses and will continue to be disruptive in the year ahead. The impact of Covid on venison prices in 2020 laid bare the deer industry’s reliance on restaurant consumption. While prices are now on the path to recovery, they are still nowhere near where they need to be. I have spoken to many deer farmers who are heavily reliant on income from venison and are financially struggling and many more who have taken a significant hit. If there is a silver lining to that particular cloud, it has been the opportunity to build new markets. Retail and on-line sales of venison in North America expanded rapidly in 2021 from a low base and China has become our third largest venison market. Venison marketing companies have also enjoyed success in markets as diverse as Sweden and the United Arab Emirates.

Our predictions for 2022: ongoing issues with shipping and freight affecting our ability to get product to our international markets; more Covid disruption globally as new variants emerge and spread, but a growing ability for businesses everywhere to reopen and operate as normally as possible, regardless of the pandemic. Expect venison prices to steadily recover and velvet prices to stay on track. Globally, fiscal stimulus measures are likely to be quickly unwound to get inflation back into the bottle – with consequences

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for consumer spending and the speculative highs that we are seeing for energy and some food products. On the political front, expect thunder and lightning around farm greenhouse gas emissions, fresh water regulation and biodiversity as the government seeks to rush through reforms before we re-enter election mode in 2023. I hope that you are finding time to have a break with family and friends over the summer to recharge your batteries. That energy will be needed in the year ahead.

65 60 55 50 45 2016 2017 2018 2019 2020 2021 Season

0800 456 453 or info@deerpro.org.nz

DP1020

Innes Moffat ❚ by ❚ Chief executive, Deer Industry NZ

We need venison prices to improve significantly. Demand from the rebounding food service sector will help with that, but the challenge for marketers will be to make sure the prices being achieved in these new markets will provide a sustainable return for deer farmers in the years to come. Demand for velvet has also been influenced by Covid-19. Retail lockdowns in our main markets have disrupted sales to consumers, but there’s no better time than the middle of a pandemic to be selling a product that is known for its health giving properties. Shipping and container shortages, along with port shutdowns, have the potential to hurt exports. This appears to have motivated velvet buyers this season to source their supplies and ship them as promptly as possible. Advance Parties and their associated regional workshops, NZDFA velvet competitions, and stag sales are part of the social glue that binds our industry together. Unfortunately under Covid there have been much fewer events that bring people together. Sure, we have become used to communicating on Zoom and other platforms, but nothing beats a real face-to-face. The roll-out of VelTrak has gone ahead unaffected by Covid. The deer industry now has a world-leading electronic track and trace system for velvet that plays a vital role in ensuring we can respond rapidly if there is a biosecurity or food safety incident. 2021 has seen drought replaced with floods, I’m writing this as Canterbury suffers another deluge. Adverse weather events will become more common as the climate warms. Rural infrastructure needs to be upgraded to deal with bigger and more frequent floods.

January 2022

CANTERBURY FARMING

New Civic Hatch for New Zealand market Honda has released details of the 2022, 11th-generation Civic Hatch to the New Zealand market.

supplied by ❚ Article Honda New Zealand ❚ According to Honda New Zealand the 2022 Civic Hatch combines striking, Euro-inspired exterior styling and five-door versatility with an even sportier driving experience. Honda NZ’s marketing and product manager Matt Woodburn said the Civic is a critical part of Honda’s DNA in New Zealand, and that continues with the new 11th-generation. “With its sporty, fun-to-drive driving character, Euro exterior styling and flexible interior packaging, the new Civic Hatch will appeal to those new Honda fans as well as our long term Civic loyalists.”, With a coupe-like profile inspired by European sportbacks, the 2022 Civic Hatch sports a new exterior design. A low beltline with horizontal windowsills and door-mounted side mirrors takes inspi-

ration from the 3rd Generation Civic, and improves visibility while maintaining the clean lines of the exterior. Compared to the 10th-generation Civic Hatch, its windshield pillars also have been moved rearward by nearly 5 centimeters, its wheelbase is 3.5cm longer and its rear track is 1.3cm wider. The Hatch’s smoother, sleeker roof line is made possible by a new lightweight composite hatch and by moving the hinge mechanism outward, allowing a roof height reduction of 50 mm in the hinge area. A unique taillight design, and centre highmounted high stop light that spans nearly the entire width of its hatch, further emphasize Hatch’s wider rear track. LED lighting is used extensively for the exterior, including the wide-set headlights, daytime running lights, parking lights and fog lights. Civic Hatch’s new body structure shows

a unique taillight design, and centre high-mounted high stop light that spans nearly the entire width of its hatch, emphasize Hatch’s wider rear track.

significant gains in rigidity, with a 19% improvement in torsional rigidity versus the previous generation. The stiffer structure supports improvements in ride, handling and refinement. Reductions in noise, vibration and harshness are further augmented with the extensive use of structural adhesives, spray-in foam in the pillars, and additional sound deadening in the firewall and under the floor. For the 11th-generation the Civic is standard with a turbocharged 1.5-liter 4-cylinder producing 131 kilowatt at 6,000rpm and 240 newton meters of torque at 1,700 to 4,500rpm. Multiple measures contribute to improved

fuel economy ratings, including new more efficient turbo plumbing and the addition of Variable Timing and lift Electronic Control to the exhaust valves. The front MacPherson struts feature new low-friction ball joints and front damper mount bearings to improve steering feel and self-centering. The spring and damper alignment has been optimized to minimize operational friction, and a new larger compliance bushing with an improved bushing axis minimizes harshness. Fuel efficiency and emissions are also improved due in part to a new standard idlestop system and a new catalytic converter design.

CANTERBURY FARMING

January 2022

Markets and marketing ❚ with rob Cope-Williams The Collins dictionary refers to marketing as “the provision of goods or service to meet consumer needs”. That to me suggests that people in marketing are not selling our produce but are in fact simply being the warehouse between the producer and the end user. Surely what we need is a sales force out there selling rather than just filling orders. I mean anyone can answer the phone, or in the modern world e-mail, and contact the producer and ask if they can provide whatever is needed to fill the required order. Farmers are in a strange world where they totally depend on others to arrange the transfer of their produce to the market. Ah, perhaps that is where the marketing title comes from. My trusty Collins Dictionary says the definition of sales is “the exchange of goods, property or services for an agreed price”. Aha, agreed price to me means that both parties haggled over what the produce, goods or whatever was worth, not just the buyer assaying I need whatever and this is what I will pay you. Real estate firms contract ‘salespeople’ to sell the vendors property, the marketing folk give them the material to help attract buyers. As I understand it, farmers, as in producers, get offered a certain amount for their

I admit to being slightly confused about the title of marketing and those who say they are in the marketing department.

‘ grain, livestock, fruit or whatever, and the marketing people find someone who agrees to buy that at what is described as a world price. So who sets that world price, and how do they come up with the figure? Our dairy people go to an auction which at least sets some sort of yard stick, but who is there to ‘sell’ it. Again, looking at real estate, an auctioneer worth his or her salt will sell as hard as they can to get the price up. Can we learn from them?

Growing gap between ambition and reality Efforts to improve our kiwi way of life work fine when based on clear facts linked in a thread of common sense. But as the drivers become murky, conflicting, or counter intuitive, progress fragments.

❚ by Solis norton It becomes increasingly beholden on us as individuals as well as part of broader society to ‘do the right thing’. We know what it is and we’re happier as a result. Remarkable and unremarkable evidence has emerged to challenge us, particularly the conflict between our emissions ambitions and practical reality. For example COP26. the 26th global summit where non-binding, aspirational emissions reduction objectives are agreed worldwide. The outcomes appear disappointingly similar to those of the preceding 25 meetings, a seminal example of the gap between aspiration and reality. Perhaps the 45,000 delegates, yes it’s true, would have done more for the planet by dedicating their time and carbon footprint that week to gardening. Also unremarkable is our latest World Energy Outlook. This report by the International Energy Agency gives global trends and forecasts in the world’s energy sources. Starkly absent is ‘momentous change’ in the upscaling of green energy options. A yawning gap divides progress we see and the progress we want. As it widens new questions arise. Would a sudden massive transition to green infrastructure create more issues than it solves?

Especially since it will only occur using fossil fuels. Are sufficient physical resources like lithium, copper, cobalt, aluminium available to enable it? And accessible at rates that make the shift possible? Clear facts on these issues and a thread of common sense would be more use than another round of economic projections based on murky resource. Here’s a starter for ten, reviews within New Zealand of our planned Net Zero pathway. Economic modelling suggests this pathway is quite feasible, but it is based on virtually no consideration of the physical materials required. The impact of scarcity or extreme prices on our plans, as other nations seek their own decarbonisation, is ultimately unknown but probably predictable. Take energy for example. Our economic modelling suggests GDP will double over this transition period, despite a drop in per capita energy consumption of about one quar ter. In contrast, an energy analysis of this same transition shows GDP will in fact drop, another growing gap between ambition and reality. Celebrate this, embrace it, and continue striving to produce great food in a wonderful country because it is a noble pursuit. As much a part of local and global happiness as anything could ever want to be.

The lovely thing about Real Estate when one is selling is that when the sales folk and auctioneers do their job well the ‘market rises’ resulting in vendors getting more for their properties. Am I right in thinking that if the people who are marketing out nations produce were to sell it rather than meet consumer demands we would all be a lot better off? Just a thought to take you into 2022 as you still have to accept what you are offered even though you did all the hard work and took the risks to get it to the farm gate.

as I understand it, farmers get offered a certain amount for their product, and the marketing people ﬁnd someone who agrees to buy at what is described as a world price.

January 2022

CANTERBURY FARMING

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