Canterbury Farming, May 2022

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

May 2022 Edition

INSIDE

THIS EDITION Piggy in-the-middle

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p30

Green light: Launching the $32m project near Kaikoura, one of Puro’s premium grow sites, were Carmen Doran (Chief Executive of Helius), Tim aldridge (Managing Director of Puro), Damien O’Connor (Minister of agriculture), and Steve Wilson (Chair of NZ Medicinal Cannabis Council).

Organic medicinal cannabis growing a huge opportunity A partnership between the Government and South Island-based medicinal cannabis grower Puro is aimed at fast-tracking New Zealand’s organic medicinal cannabis industry.

] by Kent Caddick The $32 million partnership programme will run from 2022 to 2027, with the Ministry of Primary Industries’ Sustainable Food and Fibre Futures (SFF Futures) contributing $13 million and Puro the remainder. Puro, the country’s largest and only organic certified medicinal cannabis grower, was founded in 2018, and harvested its first crop of medical cannabis last year. Puro Managing director Tim Aldridge said the grant was a game-changer which will provide New Zealand patients with greater access to locally grown and manufactured

medicine and pave the way for international export success. Under the agreement, Puro will develop production systems, support skills and training, explore contract growing and identify pathways to market for industry growth. “Being one of New Zealand’s first medicinal cannabis companies has meant we’ve had to overcome some major challenges. It hasn’t been easy,” Aldridge said “This programme will see us create an organic production handbook that will be invaluable for Puro and our industry. “The grant will also support Puro in developing post-harvesting processing technology

and build the IP required to produce premium organic cannabis flower to meet increasing domestic and global demand.” He said the funding will enable Puro to develop unique cultivars and seed stock for the New Zealand industry. “Our cultivation team are researching and developing the strains of medicinal cannabis best suited for New Zealand’s unique climate. The grant will see the acceleration of a large genetic database of cultivars to support the New Zealand industry and differentiate our cannabis products in global markets.”

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May 2022

CANTERBURY FARMING

FARMING NEWS

Medicinal cannabis ‘high value industry’ FROM PAGE 1 The company is New Zealand’s largest medical cannabis grower, with the only organic certification in Australasia. “This investment is a strong vote of confidence in Puro, our team, and the wider medicinal cannabis industry in New Zealand and will enable Puro to invest in infrastructure, people and systems,” Aldridge said. Minister Damien O’Connor said the grant the Government was providing Puro could see the medicinal cannabis industry become as successful as our wine industry in the near future. “Now is the perfect time to grow this highvalue industry, as international demand for medicinal cannabis takes off while New Zealand is amid an export boom,” O’Connor said. “This project will bring significant scale to this new industry, providing domestically sourced medicinal cannabis for Kiwi patients in pain and exciting export opportunities in a

Growth industry: The global medical cannabis market is valued at $28 billion and is growing at 27% annually.

He said the global medical cannabis market is valued at $28 billion and is growing at 27% annually. Puro expects 50% of its product to be exported this global growth market, providing further diver- that other Kiwi companies can use to follow year and aims to increase this year on year as more market access and greater producsification of land use and ex- in Puro’s footsteps.” “We’re proud to support the medicinal tion is achieved. port opportunities.” Puro will work alongside New Zealand’s O’Connor said that the cannabis industry as it sets out to follow grant will “fast-track the in- in the footsteps of our wine industry which, largest medicinal cannabis processor and dustry’s establishment in from first planting on commercial scale in the manufacturer, Helius Therapeutics, on reNew Zealand and create a 1970s, has now reached over $2 billion in search and development, and the creation of an organic manufacturing road map. comprehensive blueprint export value.” Chief executive of Helius Carmen Doran said New Zealand organically grown and manufactured medicinal cannabis products will be in huge demand internationally, taking the country’s newest industry to a whole new level in the future. “Our ambition is to take Puro’s organically produced high value biomass and manufacture it here in New Zealand to organic certification,” Doran said. “Achieving both organically grown and organically manufactured will create a significant premium differentiation for Helius and other local medicinal cannabis companies as well.” Helius and Puro’s commercial relationship is already well established. In January, the two companies signed a multi-million-dollar supply deal, New Zealand’s largest to date. Puro will supply Helius with over 10 tonnes of organic meWe are currently looking to buy good dicinal cannabis over the next five years, securing a quality NZ new cars local supply chain of premium, organic dried flower for If you are thinking of selling your car please the Auckland-based manuget in touch with our Buyer... facturer. “Helius is already extractForbes Gourlay | PH: 027 222 5000 ing Puro’s medicinal cannabis. What’s more, following Puro’s latest harvest, a lot more South Island organic Corner Main South Road and Epsom Road, Sockburn, Christchurch biomass will be processed in Ph: 03 348 4129 or 0800 655 551 Rangiora Service Centre, 78 Ivory St, Ph: 03 313 7059 the coming months into Kiwww.avoncityford.com wi grown and manufactured medicines,” Doran said.

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FARMING NEWS

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May 2022

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Iconic stories of a rural childhood If you grew up in the 1950’s and 1960’s rural New Zealand you don’t have to be told what a different world it was back then.

] by Gary Brittenden John Stuart, one of Banks Peninsula’s most well-known and respected characters, grew up in Little River and now lives in Le Bons Bay. Having recently retired at the age of 75, Stuart has put together a range of stories that begin with his 1950’s Little River childhood and wind their way through a rich and varied life, with summers spent in the shearing shed and carting hay all over Banks Peninsula. Stuart is not just a great story teller-he is also a very, very good writer. The appeal of this book does not just lie in the wonderful adventures these young lads had. John’s writing has a touch of magic about it. The first section of the book takes us to the long-lost world of a rural post war childhood. For Stuart and his ‘cobbers’ it was a time of innocence and freedom. They lived in a place where the imagination ruled supreme. The adventures they got up to will bring misty eyes to those that shared this time, and incredulity to those who didn’t. Health and Safety officers, read at your peril. After his school days Stuart went to University, was conscripted into the army, and played rugby to a high level for his beloved Banks Peninsula club, of which he is now Patron. “During the 1972 season I reached the pinnacle of my rugby career. I was selected for trials for the Canterbury Country rugby team,” Stuart said. “At the first lineout, I found myself marking the fearsome All Black Grizz Wyllie. This is great I thought. But as I attempted to im-

pose myself on him, he stepped back and fetched me a solid clout to the head. My enthusiasm waned for quite some time.” He was also a very able rower, gaining a couple of thirds at the Nationals, beating a few Olympic rowers along the way. His interests were not just confined to the blood, sweat and tears of the sports field. He also trod the boards with the local drama club that led to being offered a part in a movie that was to be filmed in Akaroa. “I was offered a speaking part-that of a drunken sailor. Perhaps it was considered a role I had some experience with. “Unfortunately, Actors Equity objected to having a non-union member playing the part and I was replaced by pop star Ray Woolf. That was the beginning and end of my movie career.” He was also a teacher in Akaroa for many years and was renowned for his story telling ability to the hundreds of students who spent time in his classroom. This was followed by a stint with the Banks Peninsula Conservation Trust, running predator trap lines in the isolated ‘wild side’ of the Peninsula. The book, simply titled, ‘My life and other stories’ is full of wonderful tales of all these times that was originally handwritten in a notebook for his grandchildren. A couple of friends and neighbours had a read and persuaded Stuart, after some lively discussion, to publish. This is a wonderful book and deserves to be read widely. It is available in akaroa at Pot Pourri, the akaroa Museum and the Little River Gallery. Smith’s bookshop in The Tannery, Christchurch, will also have copies.

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His story: Banks Peninsula’s John Stuart has published a book about growing up in rural Canterbury.


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May 2022 CANTERBURY FARMING

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

FARMING NEWS

Keeping our rural communities thriving

Last month the Government announced exceptions to usual immigration rules to allow 1,580 additional experienced people into the country to work for our meat, forestry and dairy sectors. It will provide much needed relief after the hard graft of Covid. I want to acknowledge that graft when our borders were closed. You’ve helped keep our economy in green pastures. I also want to acknowledge the hard working migrants who’ve come to New Zealand and are making such a great contribution to the economy. New Zealand is experiencing the highest levels of employment in decades, with latest unemployment figure being 3.2 per cent. In provincial New Zealand, where the demand is high for skills and hands, unemployment rates are even lower. Demand in rural areas for skills has been high for many years, now. Putting immigration to the side, let’s flip it around and ask why is supply so low? It’s a question I’m exercised by and an issue I’ve asked the Ministry for Primary Industries (MPI) to prioritise. The Opportunity Grows Here campaign is a partnership with industry and proving to be a great gateway that’s channelling Kiwis into food and fibre jobs. MPI has also just published the first Food and Fibre Workforce Snapshot. It’s the most comprehensive look at skills and people ever done across sectors and regions, breaking down demographics, qualifications, retention rates and much more. The report confirms that food and fibre is a growing source of jobs (rising by about 20,000 in the past decade); shows that one in every seven jobs in New Zealand is a primary industry role; and interestingly, says the sectors as a whole reflect the ethnicity and age of New Zealand’s overall workforce. The report is a very good starting point and its data will help us get a handle on how to get the supply of people to match the very real demand. We think of ourselves as a farming nation – and why wouldn’t we? Our standard of liv-

Town is a logical place to source people from, but how are we adapting to the job market?

ing has been built off our primary industry exports, which this year are forecast to hit a record $50.8 billion, In reality though, New Zealand is among the most urbanised countries in the world, with nearly 87 percent of our population living in town. Town is a logical place to source people from, but how are we adapting to the job market? And what perception does urban New Zealand have of us? One thing I know is that our food and fibre sectors are necessarily going through a transformation. It’s being driven by shifting international markets, sustainability, climate change response and technology’s potential to unlock opportunities in our production systems. That sounds interesting to me. How do we convey this to our cousins in town so they see the opportunity? At a high

Be quick!

level we’re working on this with the industry through the likes of our Fit For A Better World roadmap. At the grassroots level we need to ask ourselves whether we understand the job market so we can compete in attracting and developing people. Of course, there’s conditions like pay and housing. Those are obvious, but are we thinking laterally? For instance, are we asking questions like how flexible can I make my operation? Can you innovate around rosters, seasonality, job-sharing and technology uptake? Some might say that sounds costly or risky, but labour should not be seen as a cost. It’s an investment in our business. A dairy farmer told me he went to oncea-day milking to help make the day easier around staff management and reckons he’s never looked back.

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Another aspect is purpose. I reckon when we know our purpose we’re at our happiest and most productive. Do we understand our employee’s purpose – that thing that gets them up every day? Maybe they live for the outdoors and hunting? Maybe they love their rugby and the local club? Maybe they want to be the best farmer? Maybe they love a steady job so they can have more time with their family? Maybe it’s sustainability and the local catchment group that spins their wheels? How can you help them get to where they want to be and in doing so get the best out of them? Through challenging our own thinking we can show people the huge opportunity in the provinces and keep our rural communities thriving.


FARMING NEWS

CANTERBURY FARMING

May 2022

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Greenhouse gas emissions pricing not equitable for pig farmers New Zealand pig farmers are committed to playing their part to reduce emissions, however current proposals for pricing greenhouse gas emissions from livestock would be unfair on the sector, according to NZPork.

] by Kent Caddick The He Waka Eka Noa Primary Sector Climate Action Partnership (HWEN) has recently completed consultation on policy options for pricing greenhouse gas emissions from livestock. “New Zealand pig farming has a small environmental footprint relative to other parts of the primary production sector, producing 0.2 per cent of agricultural emissions,” incoming NZPork chief executive Brent Kleiss said. “Although NZPork supports in principle a farm-level pricing scheme as a preferred pricing mechanism, we have significant concerns about the current proposals. “Emissions from pig farming differ significantly to emissions from pastoral farming because pigs are monogastric so they naturally produce much lower methane emissions than ruminant animals like cattle or sheep. “Pig farming systems are also very different to pastoral farming systems. As such, the proposed options are incompatible with pig farming. Therefore, we believe more work is needed to assess whether a price on emissions is a suitable policy approach for our sector.” Kleiss said with emissions from pigs set to be priced from 2025, the inclusion of pig farming in any pricing system must be contingent on it being fit for purpose, practical and resulting in equitable outcomes for pig farmers. “A farm-level scheme designed for ruminants could be adapted for the pork industry, but careful consideration needs to be given to the level of time and resource required to do this and whether the investment required is consistent with the anticipated benefits of pricing emissions from pigs.

Small footprint: Emissions from pig farming differ significantly to emissions from pastoral farming because pigs are monogastric so they naturally produce much lower methane emissions than ruminant animals like cattle or sheep.

“Our low emissions profile and the size and nature of our sector means reductions in our emissions will require different solutions – rather than a ‘one size fits all’ approach.”

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May 2022

CANTERBURY FARMING

FARMING NEWS

Cost of doing business jumps

At a time when farmers should be celebrating higher red meat and dairy prices, they like other New Zealanders, are feeling the pinch.

Barbara Kuriger ] with Party Spokesperson ] National for Agriculture ]

Already facing seasonal challenges, with either too much or no rain, the cost of doing business grows daily under Labour’s watch. Results from the latest Federated Farmers survey show farmer confidence is the lowest it’s been since the twice yearly surveys began in 2009. More than half of the 1000 surveyed in January (before the Omicron surge and Russia’s invasion of Ukraine) expected economic conditions to worsen in the next 12 months. They also believed their spending would increase because of it and their profitability decline. So far, they’re not wrong. Even with stronger returns, revenue is quickly going back out the door to cover rocketing fuel costs up 44%, fertiliser up 28%, stock feed and grazing more than 6%, seeds up 6%, as well as labour costs due to the nationwide overseas worker shortage. The last one, a problem which could have been relieved by relaxing immigration rules, two years ago. Meanwhile, New Zealand’s 30-year high inflation rate of 5.9%, is set to keep climbing. Our current cost of living crisis will mean a $150 per week per household increase this year and that is having a colossal impact on both rural and urban families.

Life is hard for many people making tough decisions about where and how far every dollar they earn will go. And as the Government’s coffers swell with the ill-gotten gains of inflation, Labour is failing to provide any tax relief. Agriculture is New Zealand’s biggest income earner. If it is under strain, the ripple effects will be felt by all New Zealanders. The massive rise in fuel costs, especially diesel, is just one example. All supplier costs, deliveries and services coming on to farms have risen rapidly. So too, has the cost of transportation from rural regions. From export goods to end food products in retail outlets, the cost of fuel is reflected in their price. In recent weeks I’ve already said the Government’s ignorance is making everything so expensive and difficult. In the four and half years they have been in power they have learnt nothing about the country they run. That shows in Labour’s Clean Car package (the Ute Tax) which has just become operative. Buying a new Toyota Hilux will now cost an extra $5175. Once again Kiwis, especially big users like farmers, growers, tradies, construction and forestry, will be paying for an ideological policy that ‘robs Peter to pay Paul’ in an attempt to have us all in electric vehicles. Yet electric utes in numbers to meet this country’s demands do not exist and won’t for some years.

Labour’s Clean Car package (the Ute Tax) has just become

As one farmer puts it: “We’re on a knife edge really. While we have increased returns, there is huge apprehension at what will be coming at us next, in the way of increased costs and compliance.” As a member of the Opposition, I can relate.

operative. Buying a new Toyota Hilux will now cost an extra $5175.


CANTERBURY FARMING

FARMING NEWS

May 2022

7

Increasing consumer demand for wool carpet

Wools of New Zealand is reporting increasing consumer demand for wool carpets with a 50 per cent rise in wool sales through its retailers.

] by Kent Caddick “Wool carpets now accounts for a growing proportion of our partners’ retail sales”, chief executive of Wools of New Zealand (WNZ) John McWhirter said. “This rising demand mean wool’s share of the carpet market has grown by more than 350,000 kilograms of wool. It’s a clear indication that more New Zealanders are considering sustainable floor options for their homes.” Last year, WNZ partnered with Flooring Xtra and other independent retailers to launch wool carpets to the market. “Wool-based flooring now accounts for a significant part of our sales revenue and we couldn’t be happier,” FlooringXtra chief executive Tony TeAu said. “In the last six months, we have seen consumers consistently walking into our stores asking specifically for carpets made from wool.” McWhirter said this month WNZ will be welcoming on board additional independent and retail chains to market wool carpets. “The feedback from retailers we are getting is that consumers are seeking sustainable, renewable and biodegradable carpet made from wool grown right here in New Zealand. “Wool’s carbon footprint, which is lower than synthetic, is increasingly in step with consumer expectations.”

Growth: Wools of New Zealand says consumers are increasingly seeking sustainable, renewable and biodegradable carpet made from wool grown in New Zealand.

‘ He said one of the key barriers to increasing sales of wool carpets in the past has been affordability. “WNZ carpet is priced competitively compared with synthetic carpets, meaning New Zealanders have a genuine choice between a synthetic product or a natural product direct from WNZ’s farmer-growers. “We firmly believe carpets don’t have to cost the earth. Our goal is to grow the consumption of strong wool in the market by

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which is lower than synthetic, is increasingly

making wool carpet affordable to the majority of Kiwis. We can achieve this by utilising modern high volume manufacturing operations, without impacting on quality, and taking costs out of the supply chain. “Carpet moves significant volumes of wool. For our growers, this captures greater returns and increases the demand for wool. In line with the increase in wool carpet sales, the price of wool has begun to increase,” McWhirter said.

Thank you for helping your community

Wool’s carbon footprint,

in step with consumer expectations. John McWhirter Chief executive, Wools of New Zealand (WNZ)

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May 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: What are my obligations when herding stock from one farm to another, across public roads on Gypsy Day? A: The number one priority when herding stock from one farm to another is safety (of farmers, motorists and cattle alike). From a legal perspective, when moving untethered animals along a road farmers have obligations to exercise due care towards other road users and to ensure that disruption to traffic is minimised. This obligation goes both ways, with road users also having obligations to exercise due care towards people moving animals on a road. Due care is the degree of care that a “reasonable person” would take in a particular situation. Farmers can exercise due care when herding stock on public roads by planning ahead and choosing the most direct route; moving stock only during daylight hours; wearing high visibility clothing; and using pilot vehicles and warning signs where appropriate. While not specific to public roads, it is also essential to comply with any National Animal Identification and Tracing (NAIT) obligations when moving stock from one farm to another. Specific to moving stock is the requirement to record the move within 48 hours of the physical movement of the stock. Q: What are some key issues that I, as an employer, need to keep in mind when drafting new employment agreements for seasonal contractors around Gypsy Day? A: As part of the Moving (Gypsy) Day prep-

arations, farmers should be getting to grips with the minimum entitlements of their new employees. At the very least, farmers should be turning their minds to the following: Written employment agreement: All employees must be given a written employment agreement. The employment agreement sets out all of the terms and conditions of the employee’s employment and must be signed by the employee before their first day of work. Hours of work: The employee’s hours of work should be clearly set out in the employment agreement i.e. the specific days and times the employee will be required to work. If an employee is required to be available to work outside their normal hours from time to time, this should be clearly state and the employment agreement should document how the employee will be compensated for this availability. Genuine reason for the fixed term: If an employee is only going to be employed for a certain period of time, project or season, employers will be wanting to engage the employee on a fixed term employment agreement. Employers must have a genuine reason based on reasonable grounds to engage an employee on a fixed term agreement i.e. the employer must be able to explain why the employee will only be needed for a specific period of time and why there will be no work for the employee after this time. Many farmer employers will have a genuine reason for using a fixed term agreement as they will only require additional labour during the calving season. However, it is worthwhile having a good

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.

think about whether you have a genuine reason for using a fixed term agreement and making sure this reason is documented in the employment agreement itself. Minimum wage: Make sure you are not breaching your employee’s minimum wage entitlements. While an employee’s hours may vary across a season, they must be paid at least the minimum wage for the hours they have worked. If you plan on using seasonal averaging to provide your workers with a steady income during the season, it may be a good idea to use timesheets to keep a record of the hours your employees have worked so you’re not failing to meet minimum wage requirements. Q: My stock was injured in transit from one farm to another, who is liable? A: Most livestock cartage agreements say that you are responsible for getting your own insurance. If the agreement does say that the carrier will not normally have to pay for any injuries that happen, and you should lodge a claim via your broker under your own livestock transit insurance policy. If the carrier is at fault, your insurer will recover from them after paying for your loss. This means that when preparing for Moving Day, you should ensure that you have appropriate levels of cover. It is a good idea to ask your broker about your excess levels, and what events are covered by your policy. Obviously, you’ll need to update all your insurances to your new address.

SUE ANDERSON

If your stock gets injured and you do not have insurance cover, your ability to be compensated depends on what happened, and whose fault it was. It can be complicated so it is worth checking your insurances are up to date. Q: What legal protections do I have if my stock becomes sick due to infected stock transported on Gypsy Day? A: Any time stock is moved between farms extra precaution should be exercised, particularly with Mycoplasma bovis still affecting different areas of the country. As with any movement of stock between farms, farmers are required to comply with the NAIT reporting requirements. If your stock become sick due to non-disclosure of infected stock introduced, then you have a potential claim for breach of contract (if you have one), negligence, nuisance or under the Fair Trading Act. However the best advice is precaution. You should request test results from the source herd where available, source stock from as few farms as possible and get confirmation that the NAIT recordings have been completed for all movements. As an added precaution, you could quarantine and monitor new stock from existing for a period to ensure they are disease free. 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

Auckland | Christchurch | Queenstown www.wynnwilliams.co.nz


RURAL PROFESSIONALS

CANTERBURY FARMING

May 2022

9

The basics of relationship property law that could protect your assets Entering into a new relationship can be a memorable moment in a person’s life that offers a number of opportunities that may not be achieved by a single individual.

alivia Nevin ] with ] Helmore Stewart Lawyers As many are aware, the ability to make it onto the property ladder has now become quite the challenge. It is clear that it is easier to achieve this goal as a couple. For farmers in particular, their assets are significant and have often been passed down generations. It is therefore essential to have knowledge of fundamental law that can have a significant impact on your assets. The Property (Relationships) Act 1976 (the Act) governs the division of property when a couple separates or one party dies. The general rule is set out in section 11, which outlines that each party is entitled to share equally in relationship property.

A common misconception is that this Act only applies to married couples. However, the act covers marriages, civil unions and de facto relationships. De Facto relationships are relationships between two people that are living together. This covers a number of relationships in our modern society. The family home is classified as relationship property and does not have to be owned by both partners, it just has to be your primary residence. Farmers with multiple dwellings on the property should seek legal advice. As lawyers, a number of concerns alarm if only one party owns the home and their only asset is the equity in the home. If this relationship was only to last say four years, on separation, that home owner could have a relationship property claim bought against them and the other partner could be entitled to 50% of that family home. This could also be the case if that home owner dies, their surviving partner could bring a claim against the estate. Alternatively, if you are purchasing a home together and contributions are unequal, your separate property becomes intermingled in the family home and would subject to the general rule of equal division of relationship property.

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It is important to seek legal advice if you enter into a new relationship. Under section 21 of the Act, a ‘Contracting out Agreement’ can be entered into to avoid these kind of situations. A Contracting out Agreement (commonly referred to by its American term ‘pre-nup’) classifies separate property from relationship property. This agreement dictates how your property will be split in the event of separation or death. It may be easier to have these conversations early in a relationship, before it becomes an expectation that the family home is relationship property and you are risking loosing half your assets due to this legislation. As discussed earlier, farmers have property assets that may be significant, which raises the importance of protecting them. If you begin a new relationship and the farm house is your family home, this should be protected. It is wise to enter into these agreements early in a relationship, especially if you are still determining whether the relationship will stand the test of time. Farms are often family assets, with strong

history that have been passed down generations. This makes it even more important to protect them from relationship property claims. This importance was demonstrated in the case of Rose v Rose. Mr Rose, along with his father and brother owned farming property in Blenheim. When his father passed, he received inheritance. His wife, Mrs Rose, had a job outside the farm and contributed to the expansion of the farm by running the household. Upon separating with his wife, Mrs Rose was successful in her relationship property claim and was awarded 40% of the increase in value of the farm during their relationship, despite not having ownership of the farm herself. This case further demonstrates the importance of protecting your assets. A simple chat with a lawyer now could protect your assets and save you significant money in the long run. Relationships add a layer of complications to the ownership of your property, we recommend seeking legal advice if you have any concerns in this regard.

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10

May 2022

CANTERBURY FARMING

RURAL PROFESSIONALS

Planning ahead for winter While cropping farmers have had their harvesting challenges, Canterbury livestock farmers have had a relatively kind summer and autumn.

Nicky Hyslop ] by Beef + Lamb New Zealand ] Director, ] Central South Island We’ve needed it, as many of us are carrying more mouths into autumn than we planned with slow animal growth rates (lack of sunshine) and processing delays due to Covid-19. Now is the time to really nut out the feed budget and make sure there is a plan B if the weather does not play ball. The way we grow and manage our winter feed crops continues to be under scrutiny from watchful eyes, so we need to ensure we are wintering our stock in a way that minimises soil and nutrient losses while maintaining high animal welfare standards. Beef + Lamb New Zealand has a Forage Cropping module as part of its Farm Plan, but it is also available as a stand-alone resource. It’s useful tool to work through as it will help identify any risks so plans can be made to manage them.

Now is the time to really nut out the feed budget and make sure there is a plan B if the weather does not play ball.

Environmental issues have been at forefront of our work this year with the He Waka Eke Noa consultation roadshow. This has been a really important process and I’m grateful to everyone who took the time to engage with us, either in person or on-line, and made submissions. I get that this is a challenging complex topic but we do need to move forward and maintain control.

Summarising the feedback we received, there was a strong preference for the farmlevel levy option. Farmers told us they want to be recognised and incentivised for individual actions, have a say on the farm emissions price and have choices about their farm management. However, there were concerns about sector readiness for a farm-level pricing system and the cost of implementing this by 2025. More farmers wanted to move straight to farm-level pricing in 2025 rather than transition to farm-level pricing through a processorlevel hybrid levy. Overwhelmingly farmers told us they didn’t want agricultural emissions to be priced through the ETS. They told us there needed to be greater

recognition for on-farm sequestration happening on farms and a desire to move the 2008 baseline and keep administration costs low (such as using existing systems like IRD). They also wanted assurance that the revenue raised is recycled back into research and development and use of new technologies. This feedback is being used to inform our discussions with He Waka Eke Noa partners as we work through the practicalities and develop the recommendation to Government, which is due 31 May. We will keep you updated, including on what the final recommendation contains. In parallel to this work, B+LNZ will continue to work alongside DairyNZ and other industry-good bodies, to advocate on farmers’ behalf. We want the Government to report on warming as well as emissions and commit to using the latest science when it reviews emissions targets in 2024.

Why list your rural or lifestyle property with us? We farm as well, have rural connections, and the expertise and experience required to get the results you need when selling your property! Karen Hennessy 027 967 0186 karen.hennessy@pggwrightson.co.nz www.pggwre.co.nz

Mark Terry 027 572 2559 mark.terry@pggwrightson.co.nz

PGG Wrightson Real Estate Limited, licensed under the REAA 2008.

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CANTERBURY FARMING

RURAL PROFESSIONALS

andrew Wyllie ] with ] Forsyth Barr

May 2022

11

Surging inflation and higher interest rates

Since the middle of 2021 inflation has soared, reaching levels not seen in decades.

Interest rates impact the value of stocks The Covid crisis has seen the lowest interest rates in human history. Those super low rates supported high valuations across many assets including shares and property, also contributing to a surge in speculative activity which is now being constrained by higher rates.

Cold War II Adding to investors’ concerns has been Russia’s shocking invasion of Ukraine. Despite Russia representing 11% of the world’s land mass it is a relatively small economy. Its US$1.6 trillion GDP is roughly the same as Australia’s. Ukraine’s is US$155 billion, around three-quarters the

size of New Zealand’s. Shocks to these two economies will not have a material effect on global demand. Where both of these countries do have an outsized influence is in commodities. Russia is the third largest oil producer in the world after the United States and Saudi Arabia. Even more significant is the European Union’s reliance — about 40% of its consumption — on Russian gas to fuel its energy system. Russia and Ukraine are major suppliers of agricultural commodities such as wheat and corn, industrial metals including copper, nickel and aluminium, and other essential raw materials like neon, palladium and platinum. While sanctions on Russian energy have been limited to the United States and United Kingdom so far, many Western buyers are self-sanctioning and avoiding Russian goods. Accessing Russian commodities has also been made more difficult by issues such as banks not facilitating trade with Russian counterparties and insurers not underwriting Russian freight. Prices of industrial and agricultural commodities are likely to remain elevated and volatile for the foreseeable future, exacerbating inflation pressures.

Long-term investors stick to a plan Having and sticking to an investment plan is the best measure to navigate choppy markets. Investors benefit from owning good businesses which grow their underlying value over the long-term.

Through history, good businesses have provided inflation protection by being able to maintain the real value of their cash flow and earnings. It is quite possible that we’ll see more volatility ahead. But equally, the last two years highlights how quickly the market outlook and mood can change. To achieve their investment goals, long-term investors understand the need to navigate challenging times.

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.

This article was prepared as at 31 March 2022 and provides market commentary for the three-month period ending on that date.

Looking at off-farm investments?

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

CHC6189-02 - March 2021

Changes in consumer spending — surging demand for goods, less spent on services — coupled with Covid restraints on manufacturing and logistics, has put immense pressure on supply chains. Omicron has added to these pressures. While it is less deadly than previous Covid variants, it is much more infectious. Skyrocketing cases, and the resulting worker absenteeism, is exacerbating the difficulty for businesses to supply goods. While much of these inflationary pressures are Covid related that will abate in time, the magnitude and persistence has raised the risk of inflation becoming embedded in price and wage expectations. The market is pricing significant policy rate increases through 2022, including nine hikes (or eight more) from both the US Federal Reserve and our Reserve Bank.


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May 2022

CANTERBURY FARMING

FARMING NEWS

Improving access to health services and outcomes

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

I hear everyone talking about getting ‘back to normal’, the ‘before the pandemic’ times. But to be honest, I don’t even know what that looks like anymore. Instead, I see a chance for us to forge ahead with a new way of doing things.

Over the last few weeks and months, we’ve seen the Government shift and change in what looks to most people a reactionary way to political groups and business interests wanting to return to the old ways. We won’t ever return to normal, pre-pandemic times. We have to plan for the future, not only for our tamariki and the current outbreak, but to prepare for new variants, the inevitable second wave of Omicron cases, and for the health and wellbeing of our communities. A strong public health system also means protecting the wellbeing of its healthcare workers, so they can protect us when we need it. Making sure they are paid fairly and treated equally is very important. We should all be mindful that these are people who dedicate their working lives to keeping us safe and well, and who have gone above and beyond during a global crisis. For rural communities, that should involve scaling up support for rural health workers. There were already inequities for this critical workforce, the pandemic has just shone a light on what was glaringly obvious for those of us that live out here. We have a severe shortage of doctors and other health professionals in rural areas, which of course impacts the health and wellness of rural communities. Almost a quarter of New Zealanders live in rural communities and encounter unique challenges that city dwellers do not face. As a rural Maori, I am also cognisant of the need to improve access to services and

Distance is a barrier, and rural communities don’t get the same access to specialist care.

health outcomes for rural Maori, because rural Maori have poorer health outcomes than both urban Maori and rural non-Maori. Access to health services is a significant challenge rural communities are up against. Distance is a barrier, and rural communities don’t get the same access to specialist care. Our response to Covid should be an opportunity to make sure we provide good and accessible healthcare in rural areas. That means doing things differently to the way they are done in town, and not simply providing scaled-down versions of urban healthcare.

All of this can happen when we support rural communities on the ground to determine their own approach to vaccine rollouts, as they are best placed to understand what approach is appropriate for building trust and removing barriers to access in each community. This week, the Government announced new “locality networks” to give regional communities and iwi a greater say in what they need locally from the reformed national health system. I am hopeful these will make a positive difference for rural people, but it will take time before we know.

Local communities often know best about how health services need to be provided so that local needs are met. And in the big picture, healthy communities aren’t just about access to doctors and nurses. A strong public health response in the face of a pandemic, for the Greens, includes breaking the chains of poverty, massively upscaling the build of public housing, lifting benefits to liveable levels and implementing rent controls. People can’t keep themselves warm with balance sheets, or live in a high-performing GDP. People need warm homes, liveable communities, and they need awhi (help and support) and whanau. Our future can be much bolder and more inclusive, but we need everyone to be on board. We shouldn’t be distracted by nostalgia for past times that were not great for some people anyway.

Gun crimes hit the rural areas ] with Rob Cope-Williams

While gangs fight it out on our urban streets gun crime has now flowed into the rural areas, and innocent folk are in danger.

Reports suggest that organised groups are targeting stock and shooting them to order to supply a growing black market. The problem is compounded, it seems, by a lack of police in rural areas, and of course the problem of isolated farms. Those involved seem to be very organised and are taking the carcasses which suggests that it is for meat rather than filling a killing lust. There is a very serious side to this latest spat of stock killing and that is if a farmer stumbles onto some perpetrators who will be very likely to shoot first and ask questions later. Police are warning farmers not to go anywhere near vehicles with spotlights and any area where guns are being fired. They say the temptation would be to investigate the problem, but armed people are more than likely to resort to shooting rather than running.

New Zealand has very good gun laws with respect to storage and safety, but those who are flaunting the law for their own gain are doing just that, and any contact should

be avoided at all costs. President of Sporting Shooters Assn, Chaz Forsyth, says farmers are obviously caught between watching their livestock be-

ing slaughtered and sold on the black market, and defending their property, but he is adamant that farmers will not resort to taking up arms against the criminals. “As licensed gun holders farmers are fit and proper people to own guns and the stringent process to obtain that license is certainly going to stop any temptation to confront the rustlers.” However, he says he and the 24,000 licensed gun holders in New Zealand certainly feel for them. Security options are few and far between, the shooting parties are either cutting through security chains, or simply lifting the locked gates off the hinges. Other systems can be used but the problem is simply where to place them and what to do if an alarm is set off. We can only hope that what police are out there can, and will, reduce the problem without anyone being hurt or killed.


FARMING NEWS

CANTERBURY FARMING

May 2022

13

More funding needed for flood protection With the cooler temperatures now upon us, many farmers will be wondering what sort of extreme weather events may threaten their land and livelihoods, this winter.

Jenny Hughey ] by Chair ] Environment Canterbury

The scars of the devastating flood of MayJune 2021 are still visible across many Canterbury farms, but the reality is, it will happen again. With an average of one major flood every eight months in New Zealand, it’s only a matter of time. In fact, since December 2019, there have been ten major floods nationwide. The May/June flooding alone caused about $20 million of damage to flood infrastructure, with $12 million of this to be borne by ratepayers. The recovery work is expected to take up to two years to complete. What happens when the next one hits? As you may be aware, our council recently led the release of a major report calling for the government to stump up more cash for flood protection. It’s been issued by the collaboration of regional and unitary councils responsible for flood protection across New Zealand. It follows an earlier report in 2019, which revealed that the combined $200 million of annual council investment in flood protection is falling short by $150 million every year. This translates to $1.5 billion of under-investment in critical work over a decade. With the frequency and intensity of extreme weather events predicted to increase, ratepayers can’t, and shouldn’t, keep footing most of the bill. Central government help with flood pro-

tection is limited to one-off cash injections, often supporting remediation work after the fact. It’s always gratefully received, but isn’t a sustainable answer to providing the level of protection that is needed. The July 2021 flood in Westport is a prime example of how a ‘top of the cliff’ approach would have paid off in the long run. Investing in a $10 to $20 million flood protection scheme may have protected the

Synthetic Nitrogen Fertiliser Limit What farmers need to do To help protect and improve our waterways, a limit now applies to the amount of synthetic nitrogen fertiliser applied to pastoral land. This was introduced as part of the Essential Freshwater package. Carefully managed, fertiliser is a useful farming tool. However, it can contribute to nutrient loss into soil and waterways, impacting water quality and in-stream life.

All farmers • The amount of synthetic nitrogen fertiliser you apply to pastoral land cannot exceed 190 kilograms of nitrogen per hectare per year Dairy farmers • Report your synthetic nitrogen fertiliser use to Environment Canterbury annually • Submit your first report by 31 July 2022 - we’ll be in touch soon about how to do this

We’re here to help For more information, visit ecan.govt.nz/synthetic-nitrogen-cap or contact us on 0800 324 636.

The July 2021 flood in Westport is a prime example of how a ‘top of the cliff’ approach would have paid off in the long run.

town. Instead, the recovery bill has now topped $100 million, along with the untold cost of disruption and heartache. All the while, insurers grow increasingly nervous. Many people in high-risk areas are facing increased premiums, or in some cases, the prospect of not being able to get insurance at all. It’s a scenario that doesn’t bear thinking about, given that flooding is New Zealand’s most commonly occurring natural hazard. We need a robust and sustainable funding model to ensure everyone gets the flood protection they deserve, including the primary sector, which is so important to New Zealand’s economy. The country’s 364 flood protection schemes have been some of the best public value investments every made in New Zealand, protecting around 1.5 million hectares of our most intensely populated and used land. As we navigate the challenges of a changing climate, we’re faced with an urgent need for new investment. We think it’s only fair that central government shares this load by contributing the $150 million annual shortfall to better protect its own assets such as schools, highways and rail lines. Not to mention crucial industries. It is fundamentally a question of preserving community resilience, livelihoods and in some cases, actual lives.


14

May 2022

CANTERBURY FARMING

RURAL HEALTH

Advance care planning for rural health Farmers in Aotearoa have to be prepared for anything, from the ever-changing weather to issues with stock, crops and machinery. supplied by ] Article Health Quality ] New Zealand and Safety Commission ] With advance care planning they can also prepare themselves and their loved ones for any significant changes in their health. Rolleston farmer Thomas Mitchell was the face of April for the Health Quality & Safety Commission’s Kia whakarite: ‘Be prepared advance care planning’. Mitchell runs cattle, grazes horses and owns a business supplying steel cattle and sheep yards. He also has a young family (partner Jerrica and two-year-old son Carter) and is now turning his mind to how he might support them if something happened to him. “I probably used to take some unnecessary risks when I was younger, but as I have got older and had a family, I realise they are in a whole lot of trouble if I get injured and am unable to work,” Mitchell said. “I am a lot more careful now and have plans in place should I have a serious injury or illness,” he said. Farming is in his blood. He grew up on a farm near Timaru, went to university in Christchurch and now has his own family farm near Rolleston. “I grew up on a farm and always loved being outside with Dad. I have always had a love of animals and enjoy working for myself rather than being in an office. Every day is different. “There is a huge variety of tasks to do on a farm, which can make it overwhelming at times, but also provides great variation to my weeks.” Of course, farming has its challenges too,

] with John arts

Looking ahead: Rolleston farmer Thomas Mitchell has been the face of the Health Quality and Safety Commission New Zealand’s advance health care planning programme.

particularly in terms of demands on farmers’ time. “There is no such thing as annual leave. When you have animals, they still need to be cared for, no matter what day of the year it is. “The weather also provides many challenges. It can be frustrating when you do everything right, but the weather just doesn’t play ball and there is nothing you can do about it. We have a lot of money tied up in our stock and it can be heart-breaking when the grass just won’t grow,” he said.

Mitchell’s advice for those thinking of taking up farming is to give it a go. “It’s great work and a great lifestyle, but it’s certainly not for everyone. You need to be self-motivated, fit and work well by yourself.’” Advance care planning is the process of thinking about, talking about and planning for future health care, including end-of-life care. It helps you, the important people in your life and your health care team understand what you want, especially if you can no longer speak for yourself.

Part 2

The Immune System Let’s say a virus has penetrated your Non-Specific immune defenses (see last editional) and starts to infect cells. Sitting, waiting for such attack is your Specific Immune system which is able to create a devastating attack against the virus. However, this part of your immune system has a significant shortcoming. Initially, it does not recognise the attacker and needs to be ‘trained’ to identify and attack the virus. Antibodies are proteins made by the immune B cells that bind to an invader marking it for destruction by T cells. Natural immunity is based on the immune system’s ability (activated B cells) to produce antibodies that will both fight a current infection and a return of the same pathogen. Artificial immunity is from vaccines that trigger B cells to make antibodies to provoke a rapid T cell response against a first infection against a virus. This means your immune system is already primed, waiting for exposure and can launch a much faster, more aggressive response against the virus. Last edition we saw that our Non-Specific immunity is greatly influenced by nutrients. The same is true for our Specific immunity. Vitamin D acts like a master commander of your immune defenses. Dr Anthony Fauci, who leads the US health Covid response recommends supple-

menting with 4000IU of vitamin D daily to help immune responses. It is also important to make sure you have optimal levels of antioxidants, vitamins and trace minerals especially selenium and zinc. These help prevent damage from both the infection and the immune responses. Many of these are antioxidants which protect the immune system and also help prevent unwanted inflammation. Minerals such as selenium and zinc are very important. 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

Abundant Health

An advance care plan includes what is meaningful to you, your values and the ways you would like those caring for you to look after your spiritual and emotional needs. It can also cover whether you want to donate your organs, what sort of funeral you would like and where your important papers are. Free resources are available to help you with these conversations. Go to the ‘consumer resources’ section of myacp.org.nz


FARMING NEWS

CANTERBURY FARMING May 2022

15

Exports to USA boost Covid recovery A new economic report shows the important role the United States plays as an export market for high-value and high-technology New Zealand products, according to the Minister of Agriculture Damien O’Connor.

] by Kent Caddick The report released by the NZUS Council titled ‘The NZ-US trade relationship: stability and diversity in a time of change’, shows that while the primary sector remains the top NZ exporter, digital services have become a major contributor. O’Connor, who is also the Minister for Trade and Export Growth, said New Zealand is a trading nation and supporting our country’s hard-working exporters remains a priority for this Government. “It’s crucial we show the diversification of high quality exports that New Zealand has to offer – and in doing so accelerate our economic recovery from Covid-19,” he said. The report found New Zealand’s primary sector remains the backbone of exports to the United States, but showed a significant shift in the balance of products. “The United States is New Zealand’s third largest trading partner overall and it is now our largest destination for services, receiving over 22% of our total service exports,” O’Connor said. “Digital services are a major contributor, with NZ$682 million worth of exports to the US spread across computer services and software license exports. US trade and investment has also played a key role in the development of the New Zealand space industry. “It’s clear that we’re shifting up the value chain and away from a volume focus. American consumers are developing a taste for distinctive New Zealand primary products like wine and honey, which respectively earned $625 million and $75 million in 2020.

Vibrant market: Minister of Agriculture Damien O’Connor says a new economic report shows the important role the United States plays as an export market for high-value and high-technology New Zealand products.

“When it comes to our more traditional beef and sheep meat products, consumers are demanding a wider range of cuts. They’re also becoming significantly more conscious of the health benefits of our food and environmental upside of our production systems as evidenced by the successful Taste Pure Nature campaign.” O’Connor said changes in our dairy exports complement the high-tech trend, where we’re now seeing New Zealand dairy exports to the US diversified across a range of high value specialised dairy products. “These products range from high quality whey protein to nutritional ingredients used in the sports, medical, and paediatric sectors.

“This report demonstrates that the USA is a vibrant market that sees value in the widest range of services and goods that New Zealand proudly exports. “Our Trade for All agenda has very good momentum. We have just signed our historic FTA with the United Kingdom, our negotiations for one with the EU are progressing and we remain committed to opening up opportunity for New Zealand businesses abroad,” O’Connor said. The report was commissioned by the NZUS Council and the Ministry of Foreign Affairs and Trade, and was prepared by Sense Partners. The full report can be found at www.nzuscouncil.org

The USA is a vibrant market that sees value in the widest range of services and goods. Damien O’Connor Minister of Agriculture


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May 2022

CANTERBURY FARMING

FARMING NEWS

New Zealand red meat export values grow despite pressures New Zealand’s red meat sector is continuing to achieve strong export results in the face of considerable labour shortages and global supply chain disruption.

] by Kent Caddick That’s according to the Meat Industry Association whose latest market analysis shows the industry is overcoming significant headwinds with exports reaching $940 million during January, a 27% increase by value on January 2021. The value of exports increased to nearly all the major markets. China was up 25% to $398m, the United States up 32% to $195m, the United Kingdom up 9% to $41m and Japan up 76% to $40m. “January was another very positive month for exports, which reflects the efforts across the sector to overcome the many challenges in processing and exporting,” MIA chief executive Sirma Karapeeva said. “The industry is a critical contributor to our economy and its exceptional effort is enabling the sector to continue to perform well for all New Zealanders.” However, Karapeeva said the pressures are ongoing. “There is currently no end in sight to shipping delays and the Covid-19 outbreak is exacerbating existing staff shortages, further limiting the number of livestock that plants can process and impacting some of the industry’s value add product offerings. “All these factors highlight how very important it is that we get the right policy settings in areas such as immigration to allow the industry to operate to its full potential.”

Good result: MIa chief executive Sirma Karapeeva says the red meat sector is achieving strong export results despite facing shipping delays and staff shortages.

‘ Beef exports were a standout performer during January, with volume up 7% to 42,291 tonnes, and value up 51% to $422m. The three main beef markets were China ($186m), United States ($129m), and Japan ($24m).

Supply chain disruptions are continuing to have an impact on chilled exports. Sirma Karapeeva MIA chief executive

“The strong demand meant that the average freight on board (FoB) value for overall beef exports during January was up to a record $9.98/kg.” “However, the high prices, while very welcome, are masking some of the pressure the industry is under, and despite the export receipts, we should not be taking this as an indication that everything is rosy,” Karapeeva said. “The January data also revealed a significant drop in the volume of chilled exports year-on-year. “That indicates that the supply chain disruptions are continuing to have an impact on chilled exports, with companies sending more exports as frozen because of the risks in the disrupted supply chain, including significantly longer transit times. That has an impact on value.” The total 3,061 tonnes of chilled exports was 41% lower than last January, and there was a drop in chilled exports to the United Kingdom and all the major European markets. The 452 tonnes of chilled sheepmeat exported to the UK was the lowest level during January in more than 20 years. It accounted for only 17% of sheepmeat exports to the UK by volume, compared to the usual 40% to 50% in January. While sheepmeat volumes overall dropped by 14%, to 31,449 tonnes, strong prices saw value increase by 12% to $369m.

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May 2022

CANTERBURY FARMING

How can you reduce your reliance on imported feed?

MAYBE THE ANSWER IS SIMPLY TO GROW A BIT E With the air of uncertainty around imported feeds in both the short and long term, now is a good time to explore alternatives. And you don’t have to look far. Planting an extra paddock in maize at home, or ordering more maize silage in, may be all that’s needed. Maize silage is the ideal supplement to pasture. The cows love the stuff, it helps you maintain high production and milk quality when your feed levels dip (and will keep for years if they don’t). To find out about adding more maize to your farm system, contact your local Pioneer representative, call 0800 PIONEER or visit pioneer.co.nz/maize-silage


CANTERBURY FARMING

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19

Getting it right:

From planting to harvest Hybrid selection is important for maize silage growers and users alike as it will have a huge impact on silage yield, quality, cost per kilogram of drymatter, crop return per hectare and dairy farm profitability.

Pioneer Hi-Bred ] byInternational ] When selecting a maize silage hybrid farmers should consider the following factors:

Hybrid maturity and agronomic traits Begin by identifying a group of hybrids which have the correct maturity and high ratings for the agronomic and disease resistance traits that are important in your area. This will help ensure stable yields from one season to the next. In making the call on hybrid maturity remember to consider the planting date needs of the following grass crop.

Seed quality Maize hybrids may vary genetically in their ability to germinate and grow rapidly in our cool, wet spring soils. It should, however, be noted that differences in seed germination and vigour are

also influenced by seed harvest timing, handling, drying, conditioned storage and seed treatment. Genetic impurity or off-type plants within a hybrid may also cause yield loss. Growers can plant Pioneer® brand maize hybrids with the assurance that their seed has been produced in Gisborne to the highest international standards within Pioneer for genetic purity and germination.

Total drymatter yield From those hybrids that meet your maturity and agronomic requirements, select three or four hybrids that are expected to give you the highest total drymatter yield. Hybrid selection decisions should be based upon maize silage summary data. Side-by-side comparisons conducted over several seasons at 20 or more locations, in your growing region will give an excellent prediction of future performance. Nutritional quality Maize silage hybrids differ in a range of nutritional characteristics including starch,

EXTRA

whole plant digestibility and ME (Metabolisable Energy). Silage quality characteristics should only be compared between hybrids that have similar maturity, agronomic characteristics and side-by-side yield performance. From a nutritional standpoint, the best silage hybrids will have high energy and digestibility ratings. The trait table on page 35 presents starch and soluble sugars and whole plant digestibility ratings based upon the annual analysis of over 2,500 samples in our New Zealand silage hybrid evaluation programme.

When to harvest your silage crop Attention to planting date, plant population, fertility and weed control will set your crop up for the delivery of optimum yields. The final step for silage growers is harvest timing. • Ideal harvest time is when your crop is between 33-38% drymatter, though harvesting as low as 30% drymatter is not uncommon.

• As silage harvest time approaches, yield accumulation slows. From the graph on the following page if your maximum yield is 20 tDM/ha harvesting at 33% vs 35% drymatter will only impact yield by 100 kgDM/ha. • It should be noted if the crop has been drought stressed the drymatter percentage may not be consistent with the milk line progression. • In addition, crops that are shorter than normal with relatively large ears may have higher than expected drymatter. • If a season is very conducive for high grain filling (high radiation levels and abundant moisture) drymatters of more than 38% are not uncommon. Provided the plants are still green, compaction will not be a problem and quality may be enhanced due to higher grain content. For more on Pioneer Hi-Bred International go to: www.pioneer.co.nz


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Plantain research reducing leaching A $22 million research initiative is looking to help dairy farmers improve freshwater quality through using plantain pastures.

] by Kent Caddick The Plantain Potency and Practice programme is designed to help dairy farmers meet environmental goals, government regulations and market expectations. Modelling by DairyNZ forecasts a potential reduction of 15,000 tonnes per year of nitrate-nitrogen leached on 4200 New Zealand dairy farms in nitrogen-sensitive catchments per year by 2035. This is a 37% reduction from current levels. Plantain use is predicted to lead to flow-on benefits to national and regional economies. This is due to farmers spending less on other nitrate leaching solutions, therefore having more money to spend on goods and services. Plantain use is expected to save farmers more than $1 billion per decade. The work will focus on proving plantain’s effectiveness at reducing nitrate leaching, investigating regional effects and protecting the supply chain. The programme will use PGG Wrightson

Seeds’ Ecotain environmental plantain, because it already has proven effectiveness. The work aims to give farmers confidence to invest in growing plantain as an animal feed on their farms throughout New Zealand. An evaluation system will be developed to assess the environmental benefits of other plantain cultivars. “This programme is very exciting and is geared at delivering many positive outcomes for farmers, the environment and New Zealand’s economy,” DairyNZ chief executive Dr Tim Mackle said. “Plantain offers the sector real potential to deliver a new, effective option for farmers. This research is a platform to see what it can really do for farming and our waterways. Dairy farmers have a long history of innovation onfarm. “This is a great example of Government, farmers and organisations working together to refine our practices and technologies.” Associate Agriculture Minister Meka Whaitiri recently announced an $8.98 mil-

Beneficial: Plantain use is predicted to lead to flow-on benefits to national and regional economies.

lion Government grant over seven years to expand the innovative sector-run Plantain Potency and Practice programme. Programme partners DairyNZ, PGG Wrightson Seeds and Fonterra welcome the grant from the Ministry for Primary Industries’ (MPI’s) Sustainable Food and Fibre Futures fund. The three partners are collectively investing $10.47 million in cash and $2.8 million in kind.

PGG Wrightson Seeds chief executive John McKenzie said they are delighted the Government is contributing to this innovative initiative. “We’re optimistic the programme will confirm previous research, commissioned by us and undertaken by a range of organisations, showing plantain has the potential to significantly contribute to environmental improvement,” McKenzie said.

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Calcium vital for animal health Imagine a spring without dusting your paddocks, or having to rely on cows to drink enough water during the colder months to fulfil their mineral needs.

supplied by ] Advertorial ] CP Lime Solutions

This is the world that CP Lime Solutions aims to create with their Vitalise mineral pellets, specifically designed to fulfil all the nutritional requirements of dairy cows. Created by farmers, for farmers, their products are changing the game for animal nutrition through their kiwi intuition and unique manufacturing process. Calcium is vital for animal health and development. As a significant mineral in the body, it helps circulate blood, move muscles and release hormones. It influences production, reproduction and feed conversion efficiency. Vitalise provides farmers with a lime-

based animal nutrition pellet that not only provides dairy cows with enough calcium, but also comes in a variety of blends to suit your cows individual requirements. Rather than relying on multiple, time consuming ways of ensuring your cows receive enough minerals all year round (such as dusting, drenching or adding minerals to silage) Vitalise allows you to include all minerals required in their blended pellets. Unlike most mineral supplements, Vitalise is produced without grain, by simply pressing ultra-fine lime into a concentrated pellet through a unique manufacturing process that has been tried and tested on farms for 21 years. And, best of all, it is easily fed through any in shed feed system with a mineral dispenser installed.

With all stock produced in North Canterbury, by Kiwi owned and operated company CP Lime Solutions, Vitalise has the ability to easily include every mineral that you would normally feed to your cows through another source. Customer demand and farmer recommendations have resulted in a number of standard blends that can be quickly manufactured, including Vitalise Calcium, CalMagnesium, CalMag + DCP, CalMag + Rumenox, and CalMag + Trace Elements. As every farm is different, Vitalise also specialises in custom blends that are able to include as many minerals as required to meet on farm requirements. By making the change to pelletised mineral supplements, a farmer can drastically simplify their sys-

tem as well as reducing labour costs and machinery repairs. Vitalise is a tried and tested product that is fed at a reliable and accurate dose rate that can be adjusted, catering to cows requirements all year round. It dramatically improves on farm efficiency by delivering allnatural ingredients and ensuring that each cow receives the right amount of minerals. Although lime based, all Vitalise products receive a coating of sugar after the minerals have been blended together, ensuring optimum palatability for even the fussiest cows! Farmers all over New Zealand have seen dramatic improvements in the health and well being of their dairy cows since making the switch to pelletised animal nutrition.

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22

May 2022

CANTERBURY FARMING

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

] Article supplied by DairyNZ

There is no advantage to replacing good quality pasture with an alternative feed source or ‘balancing pasture’, therefore, supplements should only be used to provide energy when there is insufficient pasture available. There is no evidence that supplementing pasture improves mating performance when there is sufficient pasture supply. If feeding supplements results in high grazing residuals, this is wasted feed and the reductions in future pasture growth and quality should be considered. When supplements are required in a deficit situation they can help to optimise the area grazed each day, the rotation length, and the pasture residual. The profitability of feeding supplements varies depending on the situation. • The cost of the supplement. • Wastage in storage and method of feeding out. • The associated costs of supplementthese costs associated with feeding supplement can be 50% more than the cost

of purchasing the feed, associated costs include capital, fuel/energy, labour, repairs and maintenance and depreciation. • The degree of pasture substitution, which governs the response rate to supplement. Supplement is more likely to be profitable where post grazing residuals are consistently under 1500kgDM/ha (78 clicks on RPM) without the supplement and do not exceed 1,500kgDM/ha with supplement. If feeding supplements results in high grazing residuals, this represents wasted feed. It will reduce the immediate profitability of feeding and have ongoing effects through reductions in future pasture growth and quality which must be considered.

Autumn and winter supplement for BCS Feeding supplement in autumn to milking cows is of limited use for achieving calving body condition score (BCS) targets unless cows were to lose BCS if not supplemented (for example insufficient pasture).

Optimal growth: When supplements are required they can help to optimise the area grazed each day, the rotation length, and the pasture residual. Cows selected for high milk production preferentially partition nutrients to milk production and not BCS gain. The fastest way to achieve BCS gains is to dry cows off. The timing of dry off depends on your system, BCS gain required and length of the dry period. If infrastructure exists to achieve high sup-

plement utilisation when feeding dry cows during the winter, this can be a strategy to maximise lactation length while achieving BCS targets. The viability of this strategy depends on supplement cost (incl. associated cost), BCS gain required and time available for BCS gain.


CANTERBURY FARMING

May 2022

23

For all your milk replacer needs With another Spring calf rearing season looming, Milligans Feeds say it is looking to be a case of ‘same challenges, different year’, with maybe a couple of exceptions.

] Article supplied by Milligans Feeds

While the Covid-19 pandemic seems to finally be on the downward slide in New Zealand, for now at least, it has in no way been an easy past year since the Omicron variant hit, adding to the already hard hit supply chain of goods and services worldwide and domestically. Not even the more isolated rural sector escaped the effects of this pandemic, but the agriculture sector has seen some very positive results, especially in dairy farming, with a record milk solid pay out announced and forecasts changed regularly. With milk solid pay out at record highs, it does mean that animal milk replacers have become considerably more expensive and could see them at the highest levels ever. Regardless of this, calf rearing in New Zealand is an important industry and despite the testing issues, animals need to be reared for both dairy and beef to continually supply the local market and for trade exports as the international markets slowly get back to full capacity again, and the demand for New Zealand grown dairy ingredients and protein is required. As world populations increase each year,

the demand for high quality beef and dairy products from New Zealand should keep our strong calf rearing industry buoyant. The beef-rearers may be hit with higher calf milk replacer costs, but so long as fourday-old calf prices are reasonable and price for finished beef is strong then there is still money to be made. For the dairy market however, the lift in MS pay out means that whole milk in the vat could possibly exceed milk replacer costs making it a very viable option to rear replacement heifers or even some bull calves on CMR. While this trend of feeding CMR to dairy heifers gained traction a few years back and then the added returns for dairy farmers rearing their own bull calves for the beef market, it had swung back to the traditional use of just vat milk for a possible cost saving, but we encourage to do the maths on it each year to see if using a CMR over whole milk can maximize profits with the forecast higher MS returns. Milligans Feeds recommends farmers and rearers talk to their local farm supplier or contact Milligans Feeds directly for the best options, advice, or information in or-

Milligans Feeds is a one-stop shop for all your milk replacer needs. der to set a plan for maximum performance and returns. You can also try out the ‘Whole Milk vs CMR’ calculator on the Milligans Feeds website before making your decision. Milligans Feeds is a one-stop shop for all your milk replacer needs across all animal types. We have you covered from NZ

produced casein-based powder to imported whey powder that fit all feeding systems, budgets, and performance requirements. Look for the Milligans Feeds range of calf milk replacers at your local Farmlands or RuralCo store, and at independent retailers and selected vets throughout NZ, or check online at milligansfeeds.co.nz.

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May 2022

CANTERBURY FARMING

Greenlight: Environmental Protection Authority has approved a new fungicide which will help farmers to combat late blight in potato and tomato crops, as well as downy mildew in onions.

New fungicide to protect potatoes, tomatoes, and onions A new fungicide to combat late blight in tomatoes and potato crops, and downy mildew in onions, has been approved for use in New Zealand.

] by Kent Caddick Xivana contains the active ingredient fluoxapiprolin, which is new to New Zealand. Alongside the European Union and Australia, New Zealand’s Environmental Protection Authority (EPA) is among the first regulators worldwide to consider an approval for this substance. The applicant, Bayer New Zealand Ltd, wants to import Xivana as a concentrate to be applied using ground-based or aerial

methods. Bayer says the fungicide would always be manufactured overseas and arrive in New Zealand as a finished, packaged product ready for sale to professional users. “Bayer says late blight is the most economically destructive disease of potatoes and outdoor tomato crops in this country. As well, Onions New Zealand told us new options for controlling downy mildew are desperately needed,” EPA’s hazardous substances group general manger Dr Chris Hills aid.

“The EPA considers that the new active ingredient, fluoxapiprolin, represents a significant benefit, as it could provide an additional tool for growers, which is less hazardous than most comparable fungicides currently available on the market. “In granting approval for Xivana, strict rules have been set for its use. These include a maximum of three uses a year per crop, at a restricted amount. Use of Xivana is also restricted to professional users in com-

mercial settings,” he said. The EPA is responsible for regulating chemicals and other dangerous goods and substances under the Hazardous Substances and New Organisms Act. “This means we make decisions on whether to approve new hazardous substances. We put rules, called controls, in place to manage the risks of hazardous substances and to safeguard people and the environment,” Dr Hill said.


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25

Merger for crop and animal health representation New Zealand’s two associations representing the crop protection and animal health industries are to merge, with a name change on the way.

] by Kent Caddick Agcarm (formerly known as the Agricultural Chemical and Animal Remedy Manufacturers’ Association) and the Animal Remedies and Plant Protectant Association (ARPPA) will join forces to become a single united industry voice named the Animal and Plant Health Association of New Zealand Inc. The new association, which will be abbreviated to Animal and Plant Health New Zealand, will represent more than 90% of New Zealand’s animal health and crop protection manufacturers, a one-billiondollar industry with a value of $20 billion to the New Zealand economy, as well as rural retailer businesses and associate members. “By joining together, we have one united industry voice representing our members to government, consumers and other stakeholders,” Agcarm President Gavin Kerr said. Referring to the impacts of Covid-19 and the increasingly complex challenges of supply chains and new regulations, Kerr said it was an exciting and challenging time for our industry and the right time to unite and strengthen our voice “This significant milestone in our 74-year history enhances the capability and resources we offer our growing membership base,” he said. “We look forward to joining forces with ARPPA members and welcoming their contribution to continue our mission of ‘healthy animals, healthy crops and healthy business’.”

Improved: agcarm President Gavin Kerr says merger with the animal Remedies and Plant Protectant association will improve the capability and resources they offer to their growing membership base. ARPPA Chairperson Ed Catherwood said their members voted unanimously to join with Agcarm. “We’ve been working together as our interests have become increasingly aligned in recent years, so joining togeth-

er as a single organisation is the obvious next step,” Catherwood said. “This merger is a fitting tribute to the late Colin Harvey, a long time ARPPA Chairman and renowned industry veteran, who advocated for this merger.”

RWNZ celebrates women’s health strategy Rural Women New Zealand says it is delighted to see a focus on women’s health in Aotearoa New Zealand but is calling for more emphasis on rural health.

] by Kent Caddick “We know from our work to support quality maternity services and in raising awareness of gynaecological cancers that this focus is sorely needed and well overdue,” RWNZ National President Gill Naylor said. “We are particularly aware of the challenges faced by rural women where a lack of ser-

vices, unreliable connectivity and distance add further complexity.” Naylor said that when the announcement was made regarding the health reforms, Minister Little said the changes were designed to end postcode lottery healthcare. “We’re disappointed not to see a rural health strategy included in the legislation alongside the women’s health strategy.

“Addressing inequity based on where a person lives is vital to ensure better health outcomes for all New Zealanders. “We now need to see some evidence that rural issues will not be forgotten. “Improving health outcomes should never be based on geography or post code – rural communities deserve better,” Naylor said.

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May 2022

CANTERBURY FARMING

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27

A home away from home for country boys Founded in 1908, Thomas House has been serving the South Island school and boarding community for over a hundred years. supplied by ] Advertorial ] Timaru Boys’ High School Set within the Timaru Boys’ High School grounds, the modern and spacious hostel provides a seven day boarding opportunity for 149 young men aged 13-18 years. Thomas House prides itself on providing boarders with a fun and supportive environment that promotes excellence in all aspects of boarding life, creating a family atmosphere where young men develop a strong sense of belonging and are proud to be associated with a small piece of Thomas House history. Sam Nelson has recently joined the House as its Director of Boarding. Sam has strong South Canterbury roots, having grown up on a sheep and beef farm at Sutherlands. Sam joined Thomas House during term one, 2022, though he is not new to the school or staff, as he spent time as a Housemaster and was part of the TBHS Physical Education department. He leads a very strong team of staff, work-

ing alongside Linda Merrilees, as the Residential Manager, who is responsible for the health, welfare and pastoral needs of the boys. They are supported by nine housemasters, all of whom are teaching staff at TBHS. The Housemasters provide excellent supervision, academic support and pastoral care to the boys. Our overnight supervisor remains on site throughout the night. Thomas House has recently refurbished the Year 9, 10 & 11 accommodation, known as the Fraser Wing. This comprises rooms sleeping 2 to 4 boys. The Lewis Wing was a new build completed 4 years ago, and houses senior boys in spacious rooms sleeping two. The Prefect team of Year 13 boys are housed in three independent units which sleep four boys. The vast majority of Thomas House boys come from rural families and they see Timaru Boys’ High School as their school of choice. Boy’s are well supported in their academic studies and achieve impressive results.

For over a hundred years Thomas House, at Timaru Boys’ High School, has been serving the South Island school and boarding community.

The vast majority of Thomas House boys come from rural families. Thomas House boys have a high level of participation in sport and have a reputation for widespread involvement in cultural and community activities. Theirs is a special bond, contributing to a justifiably proud school community.


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May 2022

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Discover, challenge and extend at Nelson College Young men want to explore. They want learning to be fun and challenging; a place where they can question and test new ideas, as well as acquire the skills and knowledge they need to succeed in the next chapter of their education and in life beyond college. Advertorial supplied by ] Nelson ] College At Nelson College, our curriculum and teaching is designed for boys. We want our students to be excited about life and to discover and pursue their dreams. Our school provides the spaces and support for young men to learn and find their passion, a place to be encouraged and extended to succeed in learning. Our focus is on building students’ key competencies such as literacy, self-management, and critical thinking; to build a foundation for further learning. As a specialist in boys’ education, we provide the structure, opportunities and pastoral care that will see your son succeed at school and beyond. Nelson College Boarding is well-known for its welcoming family environment. “We have boys from all around New Zealand and overseas,” Director of Boarding Samme Hippolite says, “and we know how important it is for them to have a sense of

Nelson College’s curriculum and teaching is designed for boys.

belonging within our community. “We want our boys to thrive and succeed in these formulative years, so we ensure that they’re supported throughout their

studies, as well as encouraged in their own interests and endeavours. “Because our two hostels are on the school grounds, it’s easy for the boys to get

involved in extracurricular school activities. We want them to have fun, make lifelong friendships and create incredible memories of their life at Nelson College.”

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EDUCATION, TRAINING & BOARDING

May 2022

29

Boarding at NCG:

Where every student belongs Nelson College for Girls’ boarding hostel, CJ House, is a home away from home. supplied by ] Advertorial Nelson College for Girls ] We pride ourselves on being one big caring family where every student belongs. It is a vibrant, homely, and stimulating environment where we welcome students from all over New Zealand and overseas. We welcome the student’s family and caregivers too. We are in regular communication with families and make them feel included in our boarding life. We like to keep our Facebook page alive with our latest boarding house activities. Our Director of Boarding, Katrina Rowley was newly appointed in July 2021. Katrina comes from an emergency medical background and most recently worked at the Student Office at Nelson College for Girls for five years. Over the last six months Katrina and her wonderful, dedicated team have built on the solid foundations and traditions our hostel already held and have introduced some exciting new initiatives. Some of these include, extending their family and welcoming some ‘free range’ boarders, the chickens, Garfield, Mandy and Miss B. They are well and truly part of the family, providing lots of entertainment and of course fresh eggs daily. Some of the other activities include, after school swimming, in house challenges, quizzes’, going to Time Zone, Secret Santa, High tea and when covid times allow, Mr Whippy visits frequently. The hostel is safe and secure and sits on the school grounds. There is a less than a minute walk to school and only a five minute walk to our wonderful Nelson city, and is also closely positioned to many mountain bike tracks and great walking tracks. Some students participate in rowing practice, sailing, team sports, ballet, music practice and many more activities. Whatever your interests may be, we try our best to accommodate as many out of school activities as possible. We don’t mind getting you off to rowing at 5.30am and keeping your dinner hot if you have had an activity later in the evening.

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7 day, 5 day and short term options are available Experience the many opportunities available at NCG

Academic, Cultural, Sporting w: www.ncg.school.nz/boarding e: boarding@ncg.school.nz Phone 03 548 3104 to arrange a tour!

If you are considering boarding as an option, then we welcome a phone call on 03 548 1332, to arrange a suitable time for you to come and meet us and we can give you a tour of our hostel and our school. We would love you to experience our friendly, family environment at CJ House, where every student belongs.

Resilience in the face of adversity With Omicron continuing to challenge us as a country, the strong, grounded values inherent in the Craighead school community provide all those within it, reassurance and consistency.

supplied by ] Advertorial Craighead Diocesan School ] As a school community we continue to meet the challenges presented to us by the pandemic and remain determined to make the best of the situation. This resilience, and the determination to succeed in the face of adversity, is reflected again by the high academic attainment of our senior students in NCEA for 2021. One of the highlights for our school com-

munity last year was supporting our three Old Girl Olympians compete at the Tokyo ‘2020’ Olympic Games. Congratulations to Natalie Rooney (Trapshooting), Lauren Bruce (Hammer Throw), and Emma Dyke (Rowing) for gaining selection to compete at the highest level of competition in their respective sports. Emma and the New Zealand Women’s Rowing Eight crew won a silver medal, which is an outstanding achievement and one of which we are very proud.

There will be numerous and varied challenges to negotiate during 2022, but we are confident that it will be an exciting time for the students and staff of Craighead. Our refurbished kitchen is now fully operational under the management of new catering company, CaterPlus. Our Board of Proprietors are progressing plans to upgrade the historic Shand House, the redesign of the interior of Oakley House is moving forward, and we are in the initial concept stage of replacing the large West

Watson teaching, learning and administration block. We know, that for those looking for a progressive, inclusive, values-based Christian education in the Anglican tradition, Craighead will provide a unique education for your daughters.

Craighead invites you to visit us on our Open Day, 22 May, or contact us directly to enquire regarding enrolments for 2024 and beyond.


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FORESTRY & LOGGING

New export log fumigant approved The Environmental Protection Authority (EPA) has approved an application for a new gas to fumigate export logs and timber.

] by Kent Caddick EDN is a new tool to kill common pests found in wood, and is a potential alternative to methyl bromide, which is now heavily restricted. EDN is already approved for use in Australia, South Korea, Malaysia, and Russia. The Czech-based manufacturer, Draslovka, applied to the EPA for approval to import the gas into Aotearoa New Zealand. “The Environmental Protection Authority’s (EPA) role in regulating hazardous substances involves carefully balancing environmental, health, economic, and cultural factors’” EPA’s Hazardous Substances group genereal manager Dr Chris Hill said.

“The application process for EDN has been lengthy due to the complex technical considerations required for the safe use of the fumigant,” Hill said. “The benefits of EDN are that it rapidly decomposes after use, it is ozone-friendly, and has reduced risks to human health and the environment compared with methyl bromide.” A range of strict rules (known as controls) have been developed for the use of EDN. These include a maximum application rate, and that it is used in specific wind conditions, only under tarpaulins or in shipping containers. EDN is only for use by professionals in commercial settings. Although the EPA has approved the EDN

Green light: a new gas to fumigate export logs and timber has been approved by the Environmental Protection authority. application, the fumigant cannot be imported or used immediately. Additional WorkSafe rules to protect workers, which are approved in principle, now require ministerial sign-off and gazetting. The EPA decision-making committee will sign the approval to take effect

along with the WorkSafe rules. The EPA decision means the Ministry for Primary Industries can progress negotiations with trading partners on acceptance of EDN, as an option to meet their import biosecurity requirements.

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CANTERBURY FARMING

FORESTRY & LOGGING

31

Strong sales but shipping delays

allan Laurie MNZIF ] with Laurie Forestry Ltd ]

The New Zealand wood fibre exports trade continues to be dominated by shipping. Availability of ships, timely presentation at ports to pick up cargo and freight costs are weighing heavily on the market.

Our domestic sawmill customers continue to report strong sales and many orders which will keep mills busy at least until Christmas. Some sawmill managers have commented there seems to be similar orders in circulation, suggesting building companies are placing the same order with several sawmills until filled. I noted on a recent walk through a box store drive-thru, there are packs of timber from multiple sources. Previously you only saw two or three supply sources. Let’s hope the mad scramble for volume can get domestic log prices on the move again, with fuel costs certainly negatively impacting forest owner returns at present. The local building sector continues to suffer the vagaries of supply of materials other than lumber, which has increased the tempo of an inability to get new house starts underway. Gib board and plywood are predominantly short with the latter preventing bracing element completion and therefore holding up starts. As a consequence, some sawmill lumber yards look full but this is mostly ordered stock waiting the foundations to go down. Meanwhile in China, Covid has significantly disrupted the log trade with major cities under lockdown and building projects on the go slow. Buyer sentiment is very much starting to wane. The log trade hub centred around

. our utes e v i r d o tt r We wan try secto s e r o F e Th x. ts appro e s f f o ly l current tries tota n u o c r u . 3 0 % of o missions ca r b o n e

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e our t to fenc n a w e W k m of . 32,000 s e i t r e p pro enced s to be f y a w r e t 5 wa Z by 202 across N

know how lucky we we don’t know how lucky we are. Fred Dagg

Shanghai and the Yangtze River are facing huge population movement restrictions. This is starting to impact more widely with general economic slow-down noted in recent reports. Taicang and Lanshan ports are hugely important to the NZ log trade and both, as well as surrounding cities, are under various levels of either lockdown or heavily restricted movements. Local Authorities have now removed timelines and now leaving movement restriction settings open ended. And in China, one does not buck the rules. Gosh a few of those Wellington protestors should head there to complain. At least that

od with wo ld i u b o t t We wan es ood stor 1 m ³ of w of co². 1 tonne

.

t ash toile t s o t t n s use We wa ealander Z w e N . .5kg paper erage 10 v a l a u n an an aper d toilet p n a e u s of tis on. p e r p e rs

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May 2022

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/WoodCouncil

would get them ‘out of circulation’ for a few years. As Fred Dagg sang: “Sometimes we don’t know how lucky we are mate, sometimes we don’t know how lucky we are.” Despite the apparent problems, daily consumption across the Eastern Seaboard is only running at about 40% below normal at 50,000 cubic metres per day. This is not bad for a country under lockdown, although not all cities are affected as badly as the Shanghai area. Inventory has remained largely unchanged over the last month, meaning that log flow in from all sources has also slowed significantly.

Given world wide spread of disruption to trade generally, sea freight negative sentiment has continued to prevail. Sea freight rates have been dropping. In the broader reporting across the segment, I have noted daily hire rates coming off 44% in the last month and tonnage in the Handy Class segment continues to be over supplied. As we might have expected, despite the apparent need for pencil sharpening, ship owners remain very bullish, believing as soon as China comes out of lockdown, it will be a lolly scramble and plenty of sweets to go around. Of what we can expect in May, it would seem apparent any shipping cost reduction will hit CFR negotiations, with log prices in China still US$15 per cubic metre higher than the breakeven point for traders. The best we could therefore hope for is wharf gate prices flat in May and that will be a really good outcome. With FOREX rates (US$ v KIWI$) slightly down we might even see some small lifts. I suspect our illustrious leaders will the need extra export earnings to keep paying our/their extravagances. 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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32

May 2022

CANTERBURY FARMING

Moving day, a stressful experience When moving farms and animals there is the normal household administration that needs to be done as well as a raft of regulatory requirements around your animal and environmental responsibilities.

] Article supplied by DairyNZ

Working through lists is a handy way of ensuring you don’t let something slip that could cost you time and/or money in the future.

Regulatory requirements Complete ASD and NAIT requirements • Finalise critical record keeping for on-farm records: Nitrogen pages, Dairy diary; Milk volumes and SCC; Animal health records. • Understand new resource consent management requirements of new property (e.g. recording monthly water use, completing compliance forms for environment). • Walk over your new farm (again) taking note of any risks or hazards and ensure they are noted and included in your risk assessment plan. • Update farm policies and procedures for new farm. Ones that are especially important to complete early are: Emergency plan; Farm rules; Map of the farm identifying risk and no-go or limited-go zones; Risk assessment – what are the key risks and how will you manage them; How your farm team will communicate, including about health, safety and wellbeing; Maintenance register. • Update / complete contractor coordination forms (which should include contact details, a summary of any risks unique to your farm, your expectations before com-

ing onto your property and confirmation you will work together to assess and reduce health and safety risks of any tasks they undertake for you). • Ensure you have appropriate warrants and registrations for all vehicles.

On the farm • Obtain or update insurance to consider: New vat size; New plant and machinery purchased; Any further requirements with new contract. • Take and record final power meter readings at the shed (Take a photo) • Finalise and/or update agricultural supplier accounts (e.g. FarmSource, Farmlands, PGG) • Complete change of contact details for all suppliers, processors, businesses you hold accounts with

Tips and tricks • Start early. Admin always takes three times longer than you expect. • If you haven’t had good policies and procedures ask other farmers for ideas and possibly copies of their own ones. It is usually much easier to start with some ideas than from scratch. • Ask a friend who has moved recently to check if you’ve forgotten anything.

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CANTERBURY FARMING

May 2022

33

What’s your Autumn paddock colour telling you? Autumn has arrived along with the shorter days and definite cooling temperatures, and now is the time to have a good assessment of winter Brassica crops and pasture growth. supplied by ] Advertorial ] Artikel & Swint What we are concerned with is the overall leaf colour in the paddock – how would you best describe the green tone? A healthy deep green or is it looking pale and light? On Brassica crops, is there a brown burnish look on the leaf tips? Does the crop growth appear stunted and smaller than expected? These symptoms are classic signs that soil levels of Magnesium and/or Calcium may be deficient for plant growth. Two elements whose importance for pasture and crop growth are typically overlooked in a traditional fertiliser programme designed to maintain optimal soil levels of Nitrogen, Phosphorus, and Potassium and Sulphur. Golden Bay Dolomite is a New Zealand source of Calcium (59%)/Magnesium (39%) Carbonate that builds both levels in soils which are necessary for healthy plants and animals.

Promoting Autumn growth of pasture and crops The dual action of Golden Bay Dolomite on soil structure promotes good plant root growth and architecture which gives plants better access to water and nutrients for strong growth. Calcium and Magnesium play key roles in plant growth, Calcium is known as the king of minerals and is the nutrient that transports all other minerals – it is important for healthy plant root, stem, and leaf growth. Magnesium is essential for plant growth actively involved in photosynthesis and found at the centre of the chlorophyll while playing an important role in plant respiration and energy.

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EMPOWER YOUR SOIL & YOUR BUDGET All health starts in the soil. With Golden Bay Dolomite you’ll be enriching your soil with the dynamic nutritional combination of 39% magnesium and 59% calcium. Which over time optimises your base saturation calcium and magnesium levels. With a healthier soil, you’ll quickly improve your pasture health and growth, and the health of the animals and humans further up the food chain. Best of all, Golden Bay Dolomite is completely locally sourced, which is makes it the healthier option for your budget too.

Here’s why it’s the best single solution for soil: 59% calcium to nourish your pasture 39% magnesium to optimize the photosynthesis so essential to plant growth completely natural biological fertiliser option even more effective in raising PH levels than liming

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34

May 2022

CANTERBURY FARMING

Dealing with contractors on moving day Most people will need help from contractors with Moving Day. Ensure you communicate with them early and often so they know what is expected of them and can give you accurate costings. supplied by ] Article DairyNZ ] Whether on the farm or in the house, the process for managing contractors for Moving Day is the same every time you use contractors on-farm. If this is your first time as a business owner then it is a great time to start practicing.

Checklist for contractors Ensure you: • Have clarified what it is you need / want the contractor to do • Made clear where they will be going / working • Advised them of anything they wouldn’t expect that would be a risk to them • Advised of other activity on farm that could pose a risk to them • Determined what they are going to be doing, what risks that poses to others and how we are going to manage and communicate those risks • Advised them of farm rules (e.g. speed limits) and expectations of behaviour • Advised them of any relevant emergency procedures • Determined appropriate time in/ time out reporting • Got contact details • Made notes on what you have told them • Have agreed costs • If necessary, you should: Print/send electronic copy and mark-up a farm map

Tips and tricks • Have a standard letter that can be used as the base for all contractors when you do business with them outlining your ex-

pectations and risks they need to know about on your farm that they might not expect. • Use a prepared checklist to make sure you remember all the steps.

• It is better to over-communicate rather than under-communicate. Written records such as email provide something you can both refer back to.

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DAIRY

CANTERBURY FARMING

May 2022

35

Why it’s okay to say no to urea ] with Peter Burton

During the 1990s when dairy payouts were escalating and there was an abundance of flat land, primarily in Canterbury, suitable for conversion, the key to ramping up pasture production was the application of urea.

The sign to the wider community that the operation was serious and sizable was the erection of a urea silo. Although not necessarily intended as a status symbol, the silo along with new utes and 120hp tractors sent an undeniable signal to the wider community that serious farming had now arrived. Synthetic nitrogen is an exceptionally effective development tool when used in conjunction with new grass species particularly true annual grasses and winter growing hybrids. Because of the immediate increase in growth, it is assumed that a continuation of regular nitrogen inputs will provide an ongoing lift in total growth. That doesn’t occur and a ceiling is soon reached, and when heavier rates are applied to achieve the same boost there’s a steady downward spiral. This will not be immediately obvious and any reduction in annual growth can be attributed to unfavourable climatic conditions that occurred during the season, with climate change a convenient scapegoat. Synthetic nitrogen works by creating a rapid rise in bacterial activity in the soil. As they multiply a food source is required to maintain their activity and carbon is consumed releasing nitrogen for plant growth.

Should more carbon be consumed than sequestered from primarily dung and old root, a reduction in moisture and nutrient holding capacity occurs and a degree of resilience is lost. When all climatic conditions are favourable growth can still reach expectations however the drop off with a change in soil temperatures or moisture becomes increasingly rapid. It may take several decades for a significant loss in total soil carbon however it is the labile, or mobile, fraction that is most rapidly depleted and that fraction is largely responsible for the speed at which nutrient is cycled. To compensate, larger and more frequent amounts of water-soluble nutrient is often applied with potentially a short-term gain, but the long downward grind continues. Nitrogen is an essential growth element and if not applied in the synthetic form it must come from another source and in permanent grazed pastures that is from clovers. The 1984 edition of Fertiliser and Soils in New Zealand Farming by Peter During, containing a significant amount of nitrogen fertiliser research, shows that pastoral soils here may contain between 5,000-14,000kg N/ha in the top 15cm. Of that approx. 450kg is taken up by herbage and after accounting for that returned via

uneaten herbage, dung and urine, 240kgN/ ha is required to be fixed by clover to balance the uptake. Clover in a well-managed sward can fix far more than that, provided astute grazing management as taught in the 1970’s and 80’s is employed, and those skills are readily obtained. There are farmers today growing and producing well in excess of district average with no reliance on synthetic nitrogen that may provide the blueprint for those wishing to reduce costs significantly and develop their operations independent of mainstream doctrine. Over twenty years ago Functional Fertiliser developed the two products CalciZest and DoloZest containing soft carbons inoculated with a wide range of selected beneficial fungi and bacteria that improve physical soil structures and rapidly increase the rate of nutrient cycling. When used as the base of total nutrient programmes, the reliance on synthetic nitrogen can be rapidly phased out with more total pasture grown at a lower cost. Over time urea silos on properties may well come to signify inefficiency rather than rapid development. For more information contact Peter on 0800 843 809.


36

May 2022

CANTERBURY FARMING

DAIRY

Two independent directors appointed to DairyNZ Board A financial expert and a transformational chief executive are the two independent directors to be appointed to DairyNZ’s Board of Directors.

] Article supplied by DairyNZ

Margaret Devlin fills an existing vacancy, while Mark Todd replaces Peter Schuyt who will be stepping down in October after almost nine years on the Board. DairyNZ chair Jim van der Poel said the Board is delighted to bring such quality directors as Margaret and Mark on board. “Both Mark and Margaret are exceptionally talented and experienced professional directors and will bring a fresh perspective as the Board oversees the delivery of DairyNZ’s strategy,” he said. Mark Todd is a Chartered Accountant Fellow and a Chartered Fellow of the Institute of Directors with a Master of Commerce from the University of Canterbury. After more than 30 years working in chartered accountancy, finance and executive management roles, Todd became a full-time independent consultant and professional director. His executive career concluded with 17 years working for outdoor clothing and equipment brand Kathmandu, as chief financial officer, and latter chief operating officer. He was also a director of Kathmandu Holdings for six years after it was listed on the ASX and NZX in 2009. He is a director and chairs the Risk, Audit and Finance subcommittee of City Care Group. His other director appointments currently include Paper Plus, McKenzie and Willis, Lotto New Zealand, Apex Water and St George’s Hospital.

“Mark has deep financial expertise and financial risk awareness, which will complement his overall breadth of governance and executive experience that extends past finance,” van der Poel said. The other appointee, Margaret Devlin, has considerable experience in governance and executive management in New Zealand and the United Kingdom. A Chartered Fellow of the New Zealand Institute of Directors, and finance and business studies graduate from the University of Ulster, Devlin is currently chair of Watercare Services Ltd, Lyttleton Port, Infrastructure NZ and Hospice Waikato. She is also a director of Waikato Regional Airport Group, Aurora Energy, Wintec and Waimea Water. Previously, she was on the boards of Meteorological Service of New Zealand, Ultrafast Fibre Ltd, City Care Ltd, WEL Networks, Harrison Grierson Consultants Ltd and a member of the Waikato University Council. She was also a member of the National Infrastructure Advisory Board. “Margaret brings commercial depth and experience leading large and complex environments,” van der Poel said. “She has a strong background driving shareholder and customer-centric strategies in large competitive organisations, which will be hugely valuable for DairyNZ.” DairyNZ levy payers will be requested by the Board to ratify both appointment at its AGM meeting in October.

Fresh faces: DairyNZ chair Jim van der Poel is welcoming two new independent directors to DairyNZ’s Board.

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DAIRY

CANTERBURY FARMING

May 2022

37

International workers help address dairy staff shortage Sustained advocacy from the dairy sector has helped secure 500 more international workers to help on dairy farms.

] by Kent Caddick However, DairyNZ says the Government’s border class exceptions still fall short of the sector’s 4,000 worker shortage. Under recent changes the number of international workers allowed into New Zealand under the 2022 dairy class exception visa will increase from 300 to 800. This is in addition to the 2021 dairy class exception visa which allowed 200 international workers to enter the country. Employers must apply to DairyNZ for nomination and have a class exception visa granted by Immigration New Zealand. DairyNZ said it was relieved the Government was allowing an extra 500 international dairy workers into the country through a border class exception. This means 800 international staff will be able to enter New Zealand to work on dairy farms. DairyNZ chief executive Dr Tim Mackle said DairyNZ has been working hard to make sure the Government understands the huge pressure farmers are under, due to workforce shortages. The organisation has pushed for 1500 international dairy workers into the country in time for the 2022 dairy season on June 1. “We made it clear to Government that the 300 dairy border class exception workers previously approved was nowhere near enough

Not enough: Dairy farmers will get some relief after the Government lifted the number of international dairy workers allowed into the country but DairyNZ says the numbers aren’t enough as the sector battles a worker shortage.

to meet the demands on-farm and reduce the current high levels of farmer stress,” Mackle said. “The Government’s decision to increase the number of international workers by 500 is a step in the right direction to reduce the pressure on farm teams. We will continue to advocate for more to be allowed into New Zealand, to help address the significant staff shortage.” He said the dairy sector is estimated to have a shortage of 4000 workers. “Record low unemployment, combined with a prolonged border closure, have contributed to the shortage of workers.” DairyNZ has launched a ‘Join Us’ campaign aiming to connect dairy farmers and New Zealanders and inviting Kiwis to join a dairy job. Go to www.godairy.co.nz for more detail. “We continue to encourage Kiwis to join

our sector and farmers have been taking a range of steps to make dairy farming more attractive to staff, however in such a tight labour market the contribution international staff make to keep farms running is critical,” Mackle said. “From here, we strongly encourage farmers who want international workers on board for calving to apply through the border exception process. “It’s now simpler for farmers to use the

class exception process, so we hope to see farmers take up the opportunity. People no longer need to stay in MIQ or isolate. There is also no limit on the number of farm assistants who can apply.” Workers on a class exception visa need to be paid at least $28 per hour while a limited number of dairy workers may be eligible to enter New Zealand under other criteria. For more details go to www.dairynz. co.nz/border

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38

May 2022

CANTERBURY FARMING

DAIRY

Dairy awards recognise top talent The winners of the 2022 Southland-Otago Dairy Industry Awards Share Farmer of the Year category say they are focused, organised and goal-driven and farm with passion to deliver excellence in their business.

] Article supplied by NZDIA

Emma and Hamish Day were the winners of the region’s Share Farmer of the Year category. The other big winners were Laura Murdoch who was named the 2022 Southland/ Otago Dairy Manager of the Year, and Aidan Roe the 2022 Southland/Otago Dairy Trainee of the Year. The Days left their city jobs and rush-hour traffic in Wellington in and entered the dairy industry in 2011, with Hamish beginning as a farm assistant while Emma raised calves and relief milked. “Wellington was a great city to live in and experience but we were over early wakeups to avoid sitting in rush hour traffic and wanted something more,” Emma said. Hamish was a qualified builder in Wellington while Emma worked at AMP Financial Services. “Hamish was a city boy all his life but had a taste of farming through my family who are dairy farmers and he really enjoyed the diversity,” Emma said. The couple have progressed through the industry and are now contract milking for Peter and Maria Clinton on their 220ha property at Mabel Bush, Invercargill milking 700 cows. They won $13,176 in prizes plus four merit awards. Hamish entered the Dairy Trainee category whilst working in Taranaki in 2012 and says it was a great experience.

“It pushed me to see what I knew and where I could improve my career,” he said. “We entered this year to really work out why we farm like we do,” the couple said. “We wanted to understand our business and identify areas for improvement. “We also entered as a way to network and meet like-minded people in the dairy industry.” Meanwhile, Laura Murdoch was named the winner of the 2022 Southland/Otago Dairy Manager of the Year category. Murdoch won $7,000 in prizes plus three merit awards and is 2IC for Chris Reilly on his 83ha, 230-cow Mokotua property. The 38-year-old has experienced the Awards programme previously and said she found it helpful to receive unbiased feedback on her progression plans and to identify areas to upskill. The Southland-Otago Dairy Trainee of the Year was Aidan Roe who is a farm assistant on Peter Sanford’s 200ha Winton property, milking 560 cows. He won $6,000 in prizes and two merit awards. Roe holds a Bachelor of Agricultural Science from Lincoln University and believes the pandemic has shown the world how important the food and fibre sectors are. “I will be part of the generation of farmers that will have to make some pretty big changes to the industry to suit consumers’ demands,” he said.

Job well done: 2022 Southland Otago Share Farmers of the Year, Hamish and Emma Day.


CANTERBURY FARMING

WATER & IRRIGATION

May 2022

39

What a difference two months made The 2021-22 irrigation season will be remembered as a wet one. But if it weren’t for the two wet months the season would have felt quite different. More about that shortly.

Dr John Bright ] by ] Aqualinc

In terms of where the past irrigation season sits in relation to other seasons, Figure 1 shows us that while irrigation demand, at 315mm, is below average by about 15% it was nowhere near as wet as the wettest seasons over the past fifty-odd years. And it was well short of the seasonal volume limit which, for this site, is about 490mm. Overall it was a great year for saving on water and electricity usage, but not that far off the norm. These results are based on computer simulation of irrigation that allow us to look at irrigation seasons going as far back in time as we have good climate data for. First irrigation for the season was on 26 October, just a little earlier than the average start date of 29 October. Irrigation finished about a week earlier than average, with the last irrigation being on 22 March. Overall, an irrigation season length of 147 days compared to the average length of 150 days. You can see from Figure 2 that irrigation demand for September and October were within the normal range, at the top end of normal in October. November was significantly above the normal range. This was a bit of a surprise at the time because it didn’t really feel like a high-demand month. I know

it caught yours truly out as I wasn’t keeping a close enough eye on soil moisture levels and got behind with my irrigation. Lesson learned, I hope. Up until December the season was shaping up to be at the higher end of the normal range. What a difference the 60mm of rain in the second half of December and early January made! You can see in Figure 2 that December demand is well below the normal monthly range. February was a repeat of December and, together, knocked the guts out of what was shaping up to be a “typical” irrigation season. So, what have I taken out of this season

that I should use to improve how I irrigate next season? Firstly, that it’s too easy to get lulled into a false sense of security either by a run of overcast days or a big rain. Need to remember that even on those days the plants are transpiring, sucking water out of the soil, and if we don’t have reasonably regular rain I’ll need to irrigate. One of the problems with a big rain is that it disappears surprisingly quickly. Firstly, as drainage and then through transpiration. Best course of action is to keep a close eye on soil moisture levels! Secondly, that we haven’t had many years in the 2000’s when irrigation demand has reached the annual volume limit (490mm).

Figure 1 shows me that irrigation demand reached or exceeded the annual volume limit much more frequently during the 1970’s, 80’s and 90’s than in the 2000’s. Will the tide turn? While the picture does look a little different in other parts of Canterbury, the lesson for me in this is that it is always important to irrigate efficiently and wisely to make the annual volume stretch as far through the irrigation season as possible. It helps to minimise nitrate leaching too… One of the consequences of the high rainfall in December and February was a significant bounce back in groundwater levels in February in some areas, very uncommon, but that’s another story.

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40

May 2022

CANTERBURY FARMING

WATER & IRRIGATION

Irrigation scheduling myths During our recent irrigation scheduling workshops, we’ve come across some ‘interesting advice’ that’s being provided by a couple of telemetry service providers. blocked nozzles or pressure issues, and your irrigator is putting on less than you think.

“Air/soil temperature causes the field capacity to change.” The field capacity is the maximum amount of water held in the soil after the excess water has drained away under gravity, usually 12 to 24 hours post a heavy rainfall event. Temperature has no effect on the soil physical characteristics and therefore the field capacity will not change according to temperature. In this case the soil moisture probe in question was one of the cheaper capacitance probes that was likely faulty.

andrew Curtis ] by ] Primary Insight

Here’s a few of our favourites, along with the correct information.

“The same amount of rain often gives a much higher response than the same amount of irrigation.” While soil moisture probes are clever, they aren’t clever enough to distinguish between rainfall and irrigation water. They only measure the amount of water in the soil. If your probe isn’t responding very well to irrigation look at the irrigator next time it goes over the probe, or better still put a bucket out and measure what’s coming out of the 128mm x 100mm irrigator over the probe. It’s likely there are

If your soil profile is run at or near field capacity, any rainfall you receive will go straight through the soil profile and drain away, giving you no benefit at all, apart from giving more money to your electricity supplier for your extra pumping costs. It also increases your nutrient losses.

If you have soil moisture data that doesn’t make sense or don’t have any data, talk to the team at Primary Insight. We have an introductory special running on soil moisture probes until July 31 and we can also help you troubleshoot issues with your existing soil moisture data.

“The data spikes are caused by spiders in the telemetry box.” Must have been a big spider. Soil moisture data spikes are normally caused by wiring issues or failing sensors. Incorrectly installed probes can also produce spikes when they measure air gaps around the probe instead of water.

“Stay at the top of the ‘green zone’/optimum zone all season.” For anyone that’s attended our workshops you’ll know why this is a bad idea. You want to make use of the free water from the sky, especially during the shoulders of the season when it’s more likely to rain.

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Myth busted: Temperature has no effect on the soil physical characteristics and therefore the field capacity will not change according to temperature.

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WATER & IRRIGATION

CANTERBURY FARMING

May 2022

41

The importance of co-op values in irrigation

Recently IrrigationNZ, along with Co-Op NZ, submitted on the Financial Market Authorities (FMA) Irrigation Scheme and Co-Op exemptions.

Vanessa Winning ] by ] IrrigationNZ Chief Executive

With the support of expert lawyer David Stock, we put forward for our respective members the need for continued exemptions for disclosure and accounting from other investment classes. Most farmers and growers know their coops and their schemes, and the importance of keeping compliance and admin to a minimum. However, they may not be aware that there are different exemptions from the companies act and the financial market authority due to the intimate nature and in most cases the non-profit nature of these organisations. These exemptions have enabled irrigation schemes that have limited investors to users to have less burden of disclosure, not because they are less of an investment but because of the risks associated and the cooperative nature of a group of farmers essentially pooling resources to have resilient reliable water for their farming businesses. Co-ops and the value of a co-operative approach is something New Zealand farmers are aware of, and it keeps control of the business and the returns of that business in the hands of the farmers and growers who have built them up.

Examples such as Fonterra, FMG, Balance, and Ravensdown, along with many of our other dairy and meat processors ensure farmer ownership and farmer involvement so the pasture to plate chain remains intact and farmers tend to be fewer price takers to profit within the supply chain. This is just as important for irrigation schemes and something that makes New Zealand relatively unique too, but it can hold us back when it comes to the large investment required for infrastructure. The values of being by-the-farmer, for-thefarmer, and for resilience and supply rather than for profit is one to be proud of. In the new world as investment costs go up along with risks, we need more community-based

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schemes and more community and iwi rewarding approaches. These can be achieved under the co-operative model in a way that benefits all, rather than having true private ownership unrelated to the use, so we will need to ensure exemptions support this; reducing compliance costs and keeping profiteering to a minimum. The future will require more investment and more cross-community investment, but it’s imperative we keep the model simple and one in the hands of the users, so we can manage the resources for intergenerational returns and ensure the benefits stay within the community. Hopefully, the lower risk profile and con-

tinued farmer and grower engagement in irrigation schemes will be supported by the FMA into the future, as we work through how we adapt to the changing climate and work through the significant resources we will need to ensure farming and growing food continues. Having organisations such as IrrigationNZ and Co-Op NZ supporting this approach and advocating for its continuation to reduce regulatory interference is also key to keeping these options available. We have some outstanding schemes run by farmers, some of our largest and most successful organisations follow these values, and it’s something that New Zealanders with our equal approach appreciate.

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42

May 2022 CANTERBURY FARMING

Rob Cochrane ] with Procurement Manager, ] Wool PGG Wrightson Wool ]

LIVESTOCK

Reasonable clearances despite challenges

The crossbred wool market has continued to meander along its quiet pathway and, while prices in general have not improved during the past couple of months, wool exporters should be congratulated for their ability to support most types offered for sale thus enabling reasonable clearances to at least maintain a flat price graph. usual, for specific wool clips, have caused market hesitation due mainly to the very limited interest from Chinese mills who have traditionally purchased and processed these types. Chinese ports have remained congested and Covid driven lockdowns have forced closure of port terminals, factories, and land transport operations, further complicating market relief. For perspective as to how Chinese port interruption can cause global issues, back in June 2021 when a Covid outbreak hit the Yantian terminal in Shenzhen, twice as many vessels were delayed as were affected by the ‘Ever Given’ incident in the Suez Canal. As eluded, the better colour (low Y minus Z measureMORE RETURNS FOR ment) and low VM (approx YOUR WOOL 0.2% maximum) crossbred wools have received solid support from the wool trade As a Wools of New Zealand client you can expect great service during the past month with from a nationwide team of wool experts who will support you specific interest in secondwith the advice and expertise to deliver improved returns for shear types displaying these your sheep business good characteristics. Large quantities of cross• Specialist advice for merino, mid-micron or bred lamb’s wool also concross-bred wool tinued to come onto the • Wools of New Zealand is one of the larger brokers of market during the March/ greasy wool, offering significant benefits and advantages to April months, with also the New Zealand wool producers best interest from exporters • Stores in key locations across New Zealand shown towards those with similarly low measurements. Talk to your Canterbury Wool Representatives about maximising the returns on your wool clip Many lamb’s wool lines of-

While crossbred wool growers will not see that as assisting their financial woes around total wool production, harvesting, transport, and selling costs, at least a huge stockpile of unsold wool has not been created. Having said that, many crossbred fleece wool types (both full length and secondshear) have proved a little difficult to move, at a reasonable price, due to yellowing and vegetable matter (VM) contamination as a result of climatic conditions and nutrition levels. Measurements showing higher Y minus Z readings and often higher VM percentages along with a poorer visual assessment than

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fered for sale displayed coarser micron readings compared to earlier, due to their longer staple length, as shearing of some of these types had been delayed due to shearer shortages often caused through Covid related issues. Throughout the month, and as earlier mentioned, poorer colour wools did not gain the same attention as the better colour types, particularly those with Y minus Z readings higher than approximately six units which remained difficult to move. Several lines which measured above ten units (not normal for South Island wools) suffered considerable discount with a number of these passed-in at auction by brokers, failing to reach grower expectation. With no fine wools on the market in New Zealand, apart from a few second-shear merino types which sold extremely well during late March, most fine wool activity for the

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month of April was focused on Australian growers selling at auction there, and where the market maintained a reasonably solid level for most merino types on offer. Halfbred or mid-micron wools however received mixed reaction from the buying trade in Australia with most types losing some ground throughout the month. From an apparel perspective, European processors have continued to report solid demand at retail with at least one manufacturer, who sources a substantial quantity of their merino wool requirement from NZ for active wear, reporting that 2021-22 to date has been their busiest year ever. Recent reports of renewed interest in woollen carpets in NZ is also good news, although this is unlikely to make any short-term difference to wool prices with NZ carpet consumption very small in global terms. That’s my view.

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LIVESTOCK

CANTERBURY FARMING May 2022

43

Deer climate policy fight isn’t over Deer Industry New Zealand (DINZ) says the battle to get a greenhouse gas (GHG) pricing system that’s fair to deer farmers is far from over.

] by Trevor Walton Its big concern is for those deer farmers who have little or no opportunity to plant trees to offset their emissions. Apart from planting trees to sequester carbon, there are at present no GHG reduction technologies that deer farmers can apply on their farms, short of cutting their stock numbers. Formal consultation on two pricing options developed by He Waka Eke Noa (HWEN) closed in late March. Farming groups will next get a chance to have a say when the government likely releases HWEN’s final policy proposal in early June. DINZ chair Ian Walker says more than 100 deer farmers provided DINZ with feedback on the options and many also provided their views direct to HWEN. He has no doubt he will be asking farmers before the year is out to again make their voices heard. “If agriculture enters the NZETS, or if the worst-case HWEN scenarios come to pass, the impact on deer farm viability will be disastrous. We have made it clear to everyone who will listen that ways must be found to reduce agricultural GHG emissions that do not affect the viability of deer farming,” Walker says. “But listening does not mean agreeing, let alone making the changes we seek. So we will be closely analysing HWEN’s final proposals after they are presented to the government on 31 May, as well as the government’s policy proposals when they emerge.

Tools needed: DINZ chair Ian Walker says Deer farmers must be provided with the tools they need to reduce GHG emissions without affecting the viability of venison and velvet production.

“If we don’t like what we see, the deer farming community will once again need to speak up.” He expects a heated public debate when the government consults the wider public about its proposals but, in the heat of the debate, he cautions deer farmers to remember the big picture – the need for agriculture to play its part in reducing GHG emissions. “It’s the right thing to do. It’s what other New Zealanders expect of us. It’s what our markets expect of us. But the reduction targets adopted by government must be fair and

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farmers must have practical tools they can use to achieve those targets.” Walker says the key GHG policy goals for DINZ are for: • Deer farmers to be provided with the tools they need to reduce GHG emissions without affecting the viability of venison and velvet production • Agriculture to remain out of the NZETS • Methane, as a short-lived gas, to be treated differently to long-lived nitrous oxide • Prices for these gases to be independent of the carbon market

• The revenue from levies on methane and nitrous oxide to be used to fund the development of agricultural GHG mitigation technologies and their adoption; and to ensure that farms without mitigations stay viable • Reductions in emissions to be calculated and rewarded via a cost effective farm level system • The burden of emission levies to be shared fairly across all land-use industries DINZ will continue to lobby for policies that reflect these goals, he says.


44

May 2022

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CANTERBURY FARMING

May 2022

45

Next electric chapter for Lexus The all-new Lexus NX is much more than a second generation of Lexus’ mid-size luxury SUV, it opens the next chapter for the Lexus brand with fourth generation hybrid technology and the first plug-in hybrid for the marque.

] Article supplied by LexusNZ

Just about every aspect of the 2022 NX has been re-thought, re-designed and re-engineered from the ground up. In announcing the launch of the 2022 NX SUV line-up today, Lexus New Zealand General Manager Andrew Davis said the new NX represents the first step in Lexus’ brand transformation, benefiting from a new approach to product development, design, and testing. “The NX range has brought about a major change in Lexus’ approach to new vehicle development, applying digital modelling and

computer techniques for smarter engineering that can achieve a higher level of quality assurance’” Davis said. The new NX will only be available in New Zealand as a self-charging hybrid electric (NX 350h) with a 2.5 litre naturally aspirated engine or plug-in hybrid electric (NX 450h+). In both variants the petrol engine is aided by electric motors. The NX 350h is frontwheel-drive, with one motor helping to drive the front wheels; the NX 350h Limited and the NX 450h+ are all-wheel drive, with two motors – one helping to drive the front wheels and a second driving the rear wheels.

The NX 350h Limited and the NX 450h+ are equipped with Lexus’ intelligent E-Four electric all-wheel drive system.

The new NX is the first model to feature Lexus’ Tazuna concept for the driver’s cockpit.

While the 350h and 450h+ are both hybrids using regenerative braking to power the electric battery, the addition of the plug-in option gives 450h+ customers the opportunity to substantially reduce fuel costs and CO2 emissions. With a bigger battery, the 450h+ has a longer EV-only drive range and more power than the self-charging hybrid electric. The 450h+ will be in the F Sport performance package while the 350h will be available in standard or Limited grades. Davis said the NX 450h+ is the complete package for a mid-sized luxury SUV and offers the best of both worlds for a driver wanting to balance their mobility needs with emissions and the environment. The NX 350h is more powerful and effi-

cient than the outgoing 300h. A 23% increase in Total System Output, a 14% improvement in engine torque, and a 12% reduction in fuel consumption make the 350h the most powerful four-cylinder Lexus HEV available. The halo model in the new NX range, the 450h+ features a four-cylinder, 2.5-litre engine, a 134 kW/270Nm front electric motor, a 40kW/121Nm rear electric motor, and a lithium-ion battery with 18.1 kWh capacity. The full plug-in system, including electric motors and battery, produces a maximum 227kW, enabling acceleration from 0-100 km/h in 6.3 seconds, with weighted combined CO2 emissions of 29g/km and fuel economy of 1.3L/100km. The new battery’s performance also enables all-electric driving at speeds up to 100 km/h and beyond.


46

May 2022

CANTERBURY FARMING

Two body styles for new Subaru WRX Subaru of New Zealand has launched pre-orders for the fifth generation, all-new 2022 WRX range.

] Article supplied by Subaru NZ

The 2022 generation WRX comes in two, distinctly different body styles: a wide-bodied dynamic new sedan, the WRX 2.4T and the highly anticipated, sleek and sophisticated WRX GT wagon. Subaru of New Zealand Managing Director, Wallis Dumper said he is excited about the 2022 model, as it is on an elevated playing field compared to its predecessor. “When creating the 2022 WRX, Subaru’s engineers threw in everything from the tried and proven recipe of the last 30 years, including ultimate traction and handling thanks to Subaru’s All-Wheel Drive, the Boxer engine and aggressive styling,” Dumper said. “Then they’ve spiced it up with the addition of modern-day technological advancements, such as, the Driver Monitoring System and Drive Mode Select.” The WRX sedan comes with the choice of two transmissions: a smooth and direct close-ratio 6-speed manual, available exclusively to the 2.4T Premium sedan, and the new automatic 8-speed Subaru Performance Transmission, which is standard in both the sedan and wagon models. Subaru Performance Transmission is a newly developed Sport Lineatronic gearbox and offers automatic downshift blipping control for engaging performance and an 8-speed manual mode with its advanced shift logic taking WRX to the next level.

WRX’s motorsport lineage has been handed down to this latest generation and augmented by a new, completely revised, powerful and responsive Subaru 2.4-litre turbocharged, horizontally opposed Boxer engine. It delivers enhanced performance across the range, equating to an exhilarating 202 kilowatts of power at 5600rpm and 350 newton metres of torque from 2,000 to 5,200rpm (or 270 horsepower, if you’re traditionally-minded). All WRXs feature dual zone climate control air conditioning, a D-shaped leather steering wheel and leather gear shift. Every WRX features sports bucket seats (driver and front passenger) which keep the driver’s body firmly in place, with controls within reach and eliminating the need to recentre the body. The Premium sedan and wagon variants have all the previous generation WRX’s favoured features, such as, satellite navigation and Eyesight, plus some cool new additions including: 11.6” touchscreen infotainment system with vertical orientation, allowing intuitive operation similar to a smartphone or tablet; Driver Monitoring System (DMS), with safety and convenience technologies such as facial recognition, distraction warning and drowsiness warning; 8-airbags; Reverse Automatic Braking; Power tail gate for the wagon; Gripper ultra-suede trim in the sedan and leather in the wagon.

The 2022 WRX range includes the WRX 2.4T and the highly anticipated WRX GT wagon. The all-new top of the range tS models have everything the Premium range does, and more, including: Both sedan and wagon models receive electronic control dampers and Drive Mode Select, allowing drivers to customise key aspects of the driving experience. Electronic control dampers add increased comfort and handling, by varying damper characteristics based on vehicle data input; STI branding on the steering wheel and instrument cluster and the tS wagon also adds

STI branded front seats and tail pipes; both models feature machine-finished 18” alloy wheels and ultra-suede trim. Dumper said the move to the Subaru Global Platform enables greater stability and directional control to offer safer cornering at higher limits. “WRX’s new body has approximately a 14% increase in front lateral flexural rigidity and an approximately 28% increase in chassis torsional rigidity compared to the previous generation WRX sedan.”


CANTERBURY FARMING

May 2022

47

Breeding or death

] with Rob Cope-Williams The stock shipment debate

So seemingly it is years now that the debate about whether New Zealand should ban all stock exports has raged on. It is still the subject of discussions behind closed doors in Wellington during what the MPs call select committees. Just how they string out their reasons for meeting to discuss the same thing for so long is beyond the worst of the procrastinators, but still it goes on. Emotion comes into such things as the Greens are very pro animals and animal welfare, as farmers are, but of course that fades into the mix like fruit in a cake. Labour argues that the exports must be banned because they think that is what the general public would want as the news media flash stories about 6,000 cattle sent to their death on a ship that sank leaving them all to die a terrible death. Other parties seem to see the export value in live sheep and cattle exports and that the facilities on board are inspected by our own MPI vets and come up trumps, and that the death rates are about what one would expect on any farm. It would seem to me that there is another aspect that everyone in Wellington seems to be missing. New Zealand is home to some of the best animal genetics in the world, and other countries are very happy to pay lots to get their hands on those genetics. Flying safely below the radar is a chap called Arthur Blakely who owns NZ Genetics and who is the agent for some very happy exporters. He deals in live sheep and goats plus embryos and semen all of which are not heading to their deaths but to improve the genetics of farmers around the world. If the ‘wombles’ in Wellington were to ban all exports, his stud breeders would be denied a very good income stream, plus it would reduce their markets to a small portion of what it is now. Sweeping law changes do not benefit everyone involved, ask any legal gun owner about the sweeping law changes after the Christch-

urch massacre, so to make haste slowly is old but good advice. Mind you, the time that has been spent on the live animal exports certainly cannot be called being hasty.

The concern for many is those late-night sessions in Parliament when most of the MPs are either asleep in their beds, or their seats, and new laws are in place when they

wake up. I am one of many who can see why emotion should be ignored and intelligence should rule, but oh dear, I am only one voter.

Net zero petrodollar Russia’s demand that unfriendly countries pay for its oil and gas in rubles is cause to revisit the notion of a petrodollar system. It is quite remarkable.

] by Solis Norton Fifty years ago the US struck a deal with Saudi Arabia to trade oil in US dollars. Petrodollars they became known as. At the time US military power and Saudi oil reserves dwarfed most all of the competition which gave them the inertia required to pull this idea off. It proved a stayer. The US dollar has grown into the consummate global currency and measuring pole for other currencies. Today it accounts for around 90% of world trade, far, far beyond just energy. Next year an estimated $2.2 trillion worth of fossil fuels will be traded US dollars. Ten times the value of New Zealand’s entire GDP. The petrodollar has enabled an extraor-

dinarily steady structure to be built into the global financial system. It is the centre-pin. It has also afforded the US unprecedented power. The power to print money and distribute it directly or otherwise to every country it views as good. Russia is not one. While we might at length debate the moral implications, the remarkable level of order and global development achieved in recent decades is beyond refute. However this situation has begun to change in recent years. The pace is slow but you and I will see it gather speed in a way our parents did not. There are several key reasons for this that are grounded in physics rather than politics. Firstly, the US has aged from its truly towering stature over the last half century. Its global dominance appears less complete and less permanent. It’s system is now hopelessly addicted to that purest form of economic cocaine the petrodollar.

Meanwhile other countries have strengthened. They stand far more eye to eye now with Biden and his team, all contemplating the ultimate power prize that comes with being a major global trading currency. Putin has leaned over and poked Biden in the peeper with his demand for payment of Russian fuel in rubles. It is unlikely to come to much just yet but illustrates the point of an accelerating shift of power. Secondly, the relative ease with which fossil fuels are extracted for sale from different countries will become increasingly important. The cost of producing a barrel of oil by fracking in the Appalachia region of New York is probably a quarter or more higher than pumping it out of Siberia. Hence Putin should easily be able to undercut the likes of the Brent Crude pricing system, selling it cheaper to his allies for rubles, poking Biden in his other eye a bit harder. Thirdly, depletion of fossil fuel reserves

in the main supplying countries will become much more important. The US is wringing out its oil sponge with its fracking and shale systems. Not the look of dominance we’d expect from the global superpower. Russia in contrast has much larger reserves of gas at least. Lastly and most interestingly, our own global ambitions for sustainability actually undermine the centrepin of the world’s financial system. Decarbonization to Net Zero emissions shifts our energy sources from fossil fuels to renewable alternatives. In the process devaluing oil and by association the petrodollar. The outcome for us going forward is ultimately a more diverse value system. Provided it maintains a coherent structure, even if quite different from today’s, there will be real opportunities. Especially for countries like New Zealand that export the quality food and materials other larger nations seek.


48

May 2022

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