Farmers Weekly NZ 12 December 2016 by AgriHQ

Vol 15 No 48, December 12, 2016

farmersweekly.co.nz 6/12/16

20161206 RIP FW Lug 1.0.indd 2

Big win for meat Nigel Stirling nigel.g.stirling@gmail.com

THE meat industry has had a fresh win in China with the biggest batch of processing plants approved for export in three years. In the past two months eight processing and cold storage facilities were given the green light to export to China. Another three had existing listings upgraded to include additional species. It was the most dished out by Chinese authorities since 13 plants were rubber-stamped for export in the middle of 2014. Despite the lengthy wait by some companies, industry sources said the approvals underlined NZ’s privileged position in the market with well over 100 meat plants and cold storage facilities now qualified to export there. By contrast in Australia just 47 out of 88 export-registered plants had China listings. That shortfall was estimated to be costing the industry there more than $200m a year in lost earnings and related auditing costs. Of the major companies to be included in the latest round of approvals Hamilton-based Affco appeared to be the biggest winner with its Horotiu beef plant included after several years of trying. Director Rowan Ogg said it was a significant development for the company as Horotiu was its biggest beef operation and meant that now all but one of its

processing plants could export directly to China. “Clearly, the benefit of this is being able to widen the number of markets that we can send product to from each of our plants.” Ogg said it was likely Affco would now be able to do more business with China. “All things being equal it will probably result in that. “Previously we would not necessarily have transported stock around because the extra costs may or may not have been recouped by the China market option.” As with its other plants Horotiu was approved for most other major markets and didn’t require significant capital works to meet Chinese regulatory standards, Ogg said. In common with other plants, tripe could still not be exported to China. Single-plant operators Auckland Meat Processors and Te Kuiti’s Universal Beef Packers were also among companies given the green light to begin trading directly with China in the past few months. AMP managing director Fred Hellaby said listing for its Otahuhu plant had been in the pipeline for several years. The plant was visited by officials from China’s Certification and Accreditation Administration (CNCA) before being given the all-clear by the General Administration of Quality Supervision and Inspection and Quarantine (AQSIQ) in Beijing. “It took a few years and it was a lengthier process than initially we

READY: Auckland Meat Packers can start exporting to China as soon as labels are printed, its managing director Fred Hellaby says.

were hoping it would be. “But there were quite a lot of things for the officials to look at and we are pleased that they have now been worked through.” Although AMP was focused on the local trade to pay competitive prices for livestock it was important for it to be able to access the full range of export markets, Hellaby said. “The meat industry is enormously competitive. Offals and by-products are fully priced into the schedule and if you are not accessing those markets then you are really disadvantaged.”

Hellaby said AMP could start exporting to China more or less immediately. “Literally, it is a matter of printing labels that are correct for that market . . . once approved it moves through pretty quickly.” Others understood to have won new listings included Silver Fern Farms, Te Kuiti’s Crusader Meats and a single plant operator in Taranaki. The Ministry for Primary Industries said there were 10 processing and cold store premises still to be approved by China as well as others

awaiting the inclusion of additional species at plants already listed for export. They included Affco’s Castlecliff beef and pork plant at Wanganui, which was only recently upgraded to export standard. Also still in the pipeline was approval for NZ plants to begin selling chilled meat to China. Despite Prime Minister John Key saying in April that trade could begin in a matter of months the two countries had yet to finalise the necessary export protocols.

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3:09 PM

NEWS

NEWSMAKER

Soil Moisture Anomaly (mm) at 9am December 8, 2016

20 Kiwi farmers becoming data

savvy

60 Wetter than

In the precarious farm software business world Andrew Cooke can claim to be a seasoned veteran, marking the 12th year of Rezare Systems at Ruakura’s Innovation Park.

OPINION

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24 Alternative View Alan Emerson takes aim at farming detractors.

4 Dairy farmers can lead

or follow

Dairy farmers have the choice of being trailblazers or caretakers, Fonterra chief executive Theo Spierings told the dairy co-operative’s annual meeting.

8 Pressure builds on quake

farmers

One month on from the devastating Kaikoura earthquake, pressure is building on financially-stretched farmers dealing with seasonal management requirements alongside repairing essential farm infrastructure.

13 A big deal for

rural internet

Editorial ��22 Cartoon ��22 Letters �� 22-23 Pulpit ��21 Alternative View ��24 From the Ridge ��25 From the Lip ��25

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WORLD

26 Trump to protect US

farmers

Map reading tips

More productive farming and less environmental interference are likely in the United States once Donald Trump takes office, the farming community has been told.

REGULARS

Iwi appeasement upsets others ��3

Real Estate �� 27-33 Employment �� 34 Classifieds �� 34 Livestock �� 35

Dairy farmers can lead or follow ��4

MARKETS

Rural internet supporters are welcoming a law that might take fibre broadband to their doors.

FarmSafe latest ag training victim ��5 Show deals boost export potential �� 6 SFF dissenter now a board member ��7 Pressure builds on quake farmers ��8 Quota flexibility key to EU sales ��10

This map shows the difference or anomaly in soil moisture level at the date shown compared to the average, generated from more than 30 years of records held by NIWA.

Job

of the

Week

Sharemilker / Contract Milker - Gold Creek Farm Limited Partnership is situated close to Gore and is an established part of the MyFarm portfolio. As a result we know exactly what is needed to make this farm hum and continue to grow returns for the shareholders. For the full job description visit the Farmers Weekly jobs site www.farmersweeklyjobs. co.nzand click on Sharemilker category. To find all other agjobs click on ‘All Categories’. #agjobs at your fingertips.

Scour merger quick now challenge over ��11 Allied Farmers in growth mode ��12 A big deal for rural internet ��13 Fonterra’s capital works now done ��14

40 Ram demand strong

Skellerup moving into new home ��16

Strong demand for good, versatile flock rams was a sign there is still confidence in the sheep industry, livestock broker John Harrison says.

Hi-tech drop aids pilot safety ��18

Market Snapshot �� 36

Full traceability now in sight ��15

Contact us Editor: Bryan Gibson Twitter: farmersweeklynz Email: nzfarmersweekly@nzx.com Free phone: 0800 85 25 80 DDI: 06 323 1519

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

FLOW INTERRUPTED: The Health Rivers Plan process has been disrupted by the withdrawal of 120,000ha to stop iwi court acting but that might spark lawsuits from other parties.

Iwi appeasement upsets others Richard Rennie richard.rennie@nzx.com A LEGAL battle is shaping up over the future direction of the Healthy Rivers plan following Waikato Regional Council’s decision to pull part of the catchment from the plan until iwi issues are dealt with. Despite the Hauraki region not being included in the Healthy Rivers plan, Hauraki iwi were claiming rohe (ancestral land) running through north Waikato to the river’s mouth near Tuakau, was captured by the plan. They had threatened legal action against the council for a lack of consultation. The council then opted to withdraw the affected 120,000ha, amounting to about 11% of the plan’s catchment area, from the plan. But this decision has producer groups calling for the entire plan to be withdrawn until iwi and the

council reached agreement. The decision had particular impact upon produce growers at Pukekohe, prompting Horticulture New Zealand to start filing in the High Court for a judicial review of the plan process. Horticulture NZ chief executive Mike Chapman confirmed the group was in the final stages of filing for a judicial review before Christmas. “But we are also talking to the council and our hope is the council will see sense on this.” Chapman said it would become clearer in coming days whether any other industry groups including Beef + Lamb NZ would join the action. It was not a practical solution to withdraw part of the plan while the remaining area continued through the submission process. “Our judicial review request essentially seeks to have the e ntire plan withdrawn from the

process until this is resolved. “It is not practical to divide areas within the plan up during the submission process. “You cannot treat a downstream part separate from the rest of the catchment. Activity in one part affects the other.” Council chief executive Vaughn Payne said if the council had not withdrawn the disputed area the issue would have been taken to court by iwi. “By doing this, court action has been withdrawn, allowing us to consult. Once resolved, this part of the plan will be re-submitted later next year.” Payne said iwi had lodged legal proceedings earlier this year but it was too late for the council to stop the plan notification process. Two questions would be raised by the iwi in consultation with the council. “The first is, does the plan protect the environment? The

proof they have of that is that other iwi support it.

Our judicial review request essentially seeks to have the entire plan withdrawn from the process until this is resolved. Mike Chapman HortNZ “The second is does it affect iwi development opportunities in their rohe? The opportunities would not be any more than any of the other iwi. I cannot see anything that is irreconcilable. It is just a matter of giving them time to understand the plan.” He did not expect the re-

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submitted portion of the plan would be different from the remainder. “We are only talking one tenth of the land area. Legally, we still have to give effect to the vision and strategy required which is to make the rivers swimmable and fishable along their entire length over 80 years. He questioned how successful efforts to have a judicial review would be. “We have far exceeded our requirements on consultation and have handed the pen over to the community to have input to this plan. Our role has only been to facilitate the process.” Federated Farmers Waikato vice president Andrew McGiven said the latest development was disappointing. “We need to take a breath here and step back until the situation is sorted out and there is more clarity. It is a mess quite frankly.”

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

Dairy farmers can lead or follow Annette Scott annette.scott@nzx.com DAIRY farmers have the choice of being trailblazers or caretakers, Fonterra chief executive Theo Spierings told the dairy cooperative’s annual meeting. “We are doing well,” he told more than 200 shareholders. “But how much more can we do – are we going to lead or are we going to follow,” he challenged. Spierings said there were massive opportunities but there were also massive challenges. “I would definitely like to lead going into the strategy of the next five years. “The world is changing and we need to change month-by-month with the world,” he said. Dairying was 20% of all global agricultural land with today’s farmers producing six times the amount of produce off the same hectares of land as they did 100 years ago. But climate change was working against the future of food. “In New Zealand we recognise that challenge,” Spierings said. Productivity was up 8%, emissions down 3.1% and $1 billion had been spent on farm environment initiatives. Fonterra’s strategy was nutrition-focused, recognising innovation opportunity and smart precision farming for everyday, advanced and affordable nutrition. “The trust opportunity will create the next level of value tracking the goodness in every drop of milk from 10,500 NZ farmers.” The co-op’s ongoing transformation was leading to strong results and the strategy to shift more milk into higher-value products was working. Fonterra’s Q1 revenue was up on the same quarter last year and the launch of new Anchor products in China was evidence of the co-op doing more with

PICK ONE: Dairy farmers can be trailblazers or caretakers Fonterra chief executive Theo Spierings told them at the co-op’s annual meeting.

its milk to derive premium prices. The Q1 revenue was up 5.9% on Q1 2016 to $3.8b, with consumer and food service volume up 11% quarter-on-quarter and the gross margin up 31%. That contrasted the experience of ingredients, where the volume was up just 2% and gross margin fell 12%. Chairman John Wilson said 2016 was an extraordinary year and it would be critical to continue to work closely with the Government in the significant political change following the resignation of Prime Minister John Key. “It’s been a tough season for farmers but there’s been solid earnings growth within a strong co-operative.

“We have stayed on course with our strategy and lowered debt by $1.6b,” he said. He made reference to the latest indicative payout of $6.40/kg MS, including an assumed 40c dividend and an average yield on shares of 7.3% during the incredibly difficult year. Priorities for the coming year included the expansion of Farm Source to support farmers. There would be investment in capacity support efficiency to generate more value in the consumer food service business. “This will open the door for growth to meet the huge demand from an increasing middle class in China,” Wilson said. In response to growing demand

for safe, high-quality dairy nutrition, the new Anchor Upline range featured two new UHT milk products, NaturalUp and LiveUP. LiveUp was a high-protein milk with 50% more protein than standard UHT while NaturalUp was made from certified fresh organic NZ milk that met Chinese and NZ organic standards. Wilson said in the past year Chinese demand for dairy products rose 26% and in the past three months alone by 12%. The rest of Asia was also a growth market, up 5% over 12 months, as was Latin America, up 13%. The Middle East and Africa were down 6% over the same period.

Photo: Annette Scott

Fonterra Greater China president Christina Zhu said the new LiveUp products were a response to changing consumption patterns where Chinese consumers were increasingly seeking out more premium and healthy options. Both products were now available right across China for sales orders online while LiveUp was being rolled out to stores in the coming months. Each was being manufactured and packaged in NZ with LiveUp produced at Fonterra’s Takanini site and NaturalUp made at the Waitoa UHT site. The launch in China was part of a global refresh of Anchor.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

Trends augur well for farmgate milk price Hugh Stringleman hugh.stringleman@nzx.com

GONE: The FarmSafe business is closing less than two years after Workplace Relations and Safety Minister Michael Woodhouse launched the Safer Farms programme.

FarmSafe latest ag training victim Neal Wallace neal.wallace@nzx.com THE ongoing reform of agricultural training has claimed another victim with Lincoln University deciding to close FarmSafe, which trains and assesses more than 2000 people a year. Nine people would lose their jobs when the organisation, formed more than 10 years ago, closed early next year. Lincoln said it was closing Farm:Skills, the parent company of FarmSafe, because Government policy was redirecting vocational training to industry training organisations. It came less than two years after Workplace Relations and Safety Minister Michael Woodhouse launched the Safer Farms programme. It also followed a decision by the university to cease vocational training at levels two and three. FarmSafe training included agrichemicals and health and safety. All training would cease on December 15. That meant about 3000 people who received vocational training each year would have to find

another provider or do without following decisions by several institutions to cease operating. Lincoln Telford division has stopped using third party providers, Landcorp has closed its farm cadet scheme and PGG Wrightson was reviewing its Agriculture NZ business. Lincoln said all inquiries regarding approved handler certification would be referred to Colin Spence of Agrichemical Consultancy and Certification on 0800 555 905. Spence was a FarmSafe contractor for three years but was told last week his contract had been cancelled before days later being asked to fill the training and certification void. He said he was moving quickly to get up and running and asked for patience but said he could process urgent certificate renewals if needed. Meanwhile, Taratahi Agricultural Training Centre chief executive Arthur Graves confirmed he and Southland’s SIT were working with Lincoln to try to find a “way forward around Telford”. He was an advocate for the

training offered by Telford and Taratahi, describing it as “vocational education in its purest form”. “I am really interested in making sure the Telford model isn’t lost to the sector.” Graves said student interest in Taratahi was higher this year than previously, with more than 300 applications for its various courses. The heightened interest was attributed to better promotion of agricultural careers. “I’m really encouraged.” The introduction this year of contestable funding for training providers was a way to encourage a realignment of primary sector training. To meet industry’s needs training should be less fragmented but not centralised and focused on levels three to five qualifications, certificates that acknowledged academic study and vocational practice. “It is important that this improved realignment is not just about who are the most resilient providers but it’s also to ensure that the better alignment of skills meets the future needs of industry.”

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DAIRY prices continued to rise in the latest Global Dairy Trade (GDT) auction, foreshadowing a seasonal milk price closer to $6.50/kg of milksolids or 50c more than the Fonterra forecast. The GDT price index rose 3.5%, the eighth rise (and one fall) since August, containing a 4.9% rise for whole milk powder (WMP) prices. The NZX Dairy Derivatives market, in particular WMP futures prices, also showed dairy market participants expected further price strengthening to come, AgriHQ dairy analyst Susan Kilsby said. But the $1000/tonne differential between WMP and skim milk powder prices on world markets could not persist and the most likely correction would be a fall in WMP relative to SMP. WMP futures prices for the near contract added a further $100 after the latest GDT reset the level to US$3560/tonne. AgriHQ’s post-GDT revision of the farmgate milk price came up with $6.61/kg MS, not including the latest lift in the futures market. “However, that differential can’t persist and it is unlikely that SMP prices will rise now the European Union has begun selling out of stockpile and the United States has the potential to export more SMP.” Kilsby said WMP was threatened by substitution, both by SMP plus dairy fat and SMP with non-dairy oils. ANZ Bank rural economist Con Williams said there were factors that would take the heat out of prices in the New Year. He cited the sale of European

skim milk powders out of stockpile, premium prices for NZ powders and some improvement in milk supply from NZ and European producers. However, should prices hold, indications were for a $6.40 to $6.50/kg milk price this season. After calling 2016 the year of a remarkable rebound in dairy prices, Westpac Bank economist Anne Boniface said there was no doubt the fundamentals of supply and demand had moved in favour of dairy farmers. “But looking ahead it is not all plain sailing. “The NZ supply tightening to a greater extent than expected has taken the gloss off improved prices for northern farmers. “We remain wary of the ability of higher prices to induce a supply response both locally and further afield. “The durability of the recent improvement in prices will in part hinge on the sustainability of the recent pick up in Chinese demand.” Westpac had a payout forecast of $6.20, which should be well above break-even levels for most farmers. After leading the payout forecast stakes for some months with its $6/kg prediction, ASB Bank economists said they were in no hurry to make a higher revision. “But there is clear upside and if prices remain at or near current levels it is simply a matter of time.” The latest GDT levels and prices for dairy derivatives showed the recovery had legs, ASB’s Nathan Penny said. More tightening in supply, especially out of Europe, was expected and the very weak production season in NZ was all but set in stone.

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News

farmersweekly.co.nz – December 12, 2016

SFF dissenter now a board member Neal Wallace neal.wallace@nzx.com FORMER Richmond chairman Sam Robinson has returned to meat industry governance as one of five Shanghai Maling directors appointed to the board of Silver Fern Farms. But the appointees did not include Shanghai Maling president Shen Wei Ping who was instrumental in negotiating the deal. SFF chairman Rob Hewett said Shen has moved to another role in Shanghai Maling’s parent, Bright Foods, and his position on the SFF board would be taken by Bright Foods chairman Xia Xu Shen, who would co-chair the new company with Hewett. “It is sad to see Mr Shen go. He was instrumental in delivering this deal but at the end of the day people change.” The deal in which Shanghai Maling invested $267 million for a 50% stake in the operating arm of SFF was completed on December 6, a month ahead of a renewed schedule. SFF Co-op, owned by NZ shareholders, would own the other half of SFF. Hewett said the Shanghai

DONE DEAL: Rob Hewett.

Maling directors on SFF had extensive governance experience. The five Shanghai Maling appointees to the 10-person board were Robinson, MinterEllisonRuddWatts chief executive Mike Schubert, He Ru, Gu Xiang Yi (Henry) and co-chair Xia Xu Shen. The SFF Co-operative appointees were Trevor Burt, Jane Taylor, Richard Young, Dan Jex-Blake and Rob Hewett who would co-chair the board. Hawke’s Bay farmer Robinson was chairman of Richmond when the company resisted a hostile takeover by the then PPCS, now SFF.

Hewett said Robinson had moved on from that event. He had plenty to offer and Hewett looked forward to working with him. Schubert has had extensive corporate experience. He was a partner with PricewaterhouseCoopers, where he led the Fonterra audit team. This year he was appointed chief executive of the law firm MinterEllisonRuddWatts. He was also chief executive of the healthAlliance. The board of SFF would meet next month while the SFF Co-op board would meet next week. Retail meat packs designed for the NZ market had been sold in China for some time but with input from Shanghai Maling they would be altered to better suit Chinese consumers. “The way Chinese consumers want it is slightly different to what we do.” SFF would also have privileged access to the 8000 supermarkets in China that Shanghai Maling owned or controlled which, together with the fresh capital, would allow the company to invest in its brand and strategy globally, Hewett said.

Kiwi exporters keen on Iran Nigel Stirling nigel.g.stirling@gmail.com SILVER Fern Farms, the country’s largest meat company, is not ruling out resuming business with Iran as early as next season. Trade Minister Todd McClay last week led a business delegation to the country of 80 million people, which, over the past two years, had been cautiously welcomed back to the international fold after more than two decades of isolation from the West. Meat companies were eagerly eying the potential of Iran, which along with Iraq took a third of New Zealand’s lamb exports in 1980-81. Silver Fern Farms chairman Rob Hewett said those historic links in sheep meat and a growing appetite among its younger consumers for beef meant it could again be a significant market. “But it is going to be a slow burn. It is certainly not going to be this season – maybe next season, if you were optimistic.” Standing in the way were a number of hurdles ranging from an absence of modern meat export protocols between the two countries to strict Shia-based Halal slaughter requirements and banking difficulties.

Although the West began lifting sanctions last year the US Treasury was yet to lift sanctions on Iranian banks. A banking source said Australian-based banks were anxious they could be blacklisted if they settled transactions for meat company clients through Iranian banks with connections to political organisations such as Hezbollah, linked by the US to terrorism. “It is certainly something that NZ companies will want to do due diligence on before they start trading because it is all very good making the sale but if you can’t get the money then it is all a bit academic really,” Hewett said. That could include finding out how, in the face of sanctions, the dairy industry had maintained Iran as one of its biggest butter markets. One source said as well as doing a significant chunk of its business one step removed from its Iranian customers Fonterra had resorted to generous credit terms, which, in one case, put off payment for two years. Fonterra’s global stakeholder affairs director Philip Turner was reluctant to detail the “work-arounds” used to trade with Iran other than to say the co-operative had complied with all relevant sanctions. “The sanctions haven’t

stopped us doing business but have made it more difficult.” Turner said a large and young population with a liking for dairy products combined with the reintegration of resource-rich Iran into international oil and gas markets could lead to a super-charging of its consumers’ buying power, largely untapped for the past two decades. “To the extent that those trends are going to be reinforced by the opening up of Iran to the rest of the world there is potential for the economy there to take off and dairy demand to take off with it.” However, looming over those bright prospects was the impending presidency of Donald Trump. He railed against Iran’s rehabilitation and threatened to rip up last year’s nuclear agreement and re-impose sanctions. Hewett said SFF would continue to work on reestablishing contacts in the Iranian market with a view to resuming business there regardless. “Progress is going to happen one way or another irrespective of current sanctions or what the American government thinks. “There are too many countries that want to deal with them. The trade will eventually happen.”

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

Pressure builds on quake farmers Sandra Taylor ONE month on from the devastating Kaikoura earthquake, pressure is building on financiallystretched farmers dealing with seasonal management requirements alongside repairing essential farm infrastructure. Culverden sheep and beef farmer and Beef + Lamb New Zealand director Phil Smith said it was far from business as usual, with many farmers struggling to do seasonal work such as tailing, calf marking, weaning, drafting, dipping and shearing with broken land and infrastructure. Water supplies and access continued to be problematic, with major earthworks being done on many farms. Slips and crevasses made stock work much harder and slower while limited road access meant sale and finishing stock were travelling long distances at higher cost. Smith said most EQC Geotech reports would not be done until the New Year, which would further slow the repair and rebuild process. The earthquake happened at a time when farmers’ incomes were low, particularly following two years of drought. “Overdrafts are near peak at this time of the year before lamb income starts coming in,” Smith said. Lamb and wool prices were projected to be lower than last season, which offered little comfort to farmers.

HARDER: The earthquake has caused significant land damage making farm activities more difficult.

Many homes were destroyed or badly damaged, leaving families living in shearers’ quarters and staff accommodation, with no indication of when their homes would be repaired or rebuilt. Farmers were worried the Ministry for Primary Industries (MPI) grant would go nowhere near covering their costs because they had already spent significant amounts of money on essential repairs. But Smith believed there might be other avenues through which farmers could access funds.

On a positive note, Smith said communities had rallied together and farmers were using their own networks to get work done. Regular rainfall meant that while the drought had not broken there was plenty of feed around and stock were in good condition. Lamb schedule prices were holding because of slower growth rates and a grass market keeping store prices up. B+LNZ had convened an expert technical group to support land and pasture recovery. It would include geotech,

soils, land remediation and pasture specialists and link to a co-ordinated extension and communications programme. Marlborough farmer Fraser Avery said the timing of the earthquake could not have been worse for farmers in the region, who were just starting to recover from three years of drought. “It’s been a long time since the mood in this area has been so low.” There had been significant land movement throughout the region but it was particularly

bad around the Clarence area. Avery was positive about the way farmers and communities came together to help and support each other. “There is always adversity in farming but it’s how we deal with it that defines us.” Avery urged farmers to focus on the positives, work through the process and be willing to accept help. “Accepting help can be tough emotionally but it makes a huge difference to helping you get through.”

South Island transport can’t be quake-proofed Annette Scott annette.scott@nzx.com BUILDING a resilient South Island road network that would stand up to inevitable future disasters is virtually impossible, Canterbury University geological scientist Professor Tim Davies says. While New Zealand earthquake scientists and engineers were recognised as among the best in the world, no one could predict where the next major earthquake would be. The Darfield 7.1 earthquake of 2010 and the 7.8 Kaikoura earthquake, both triggered by several smaller faults linking up, had proved that beyond question, he said. “Even with the best science in the world we cannot anticipate when and where the next major earthquake will be. “Nor can the best engineering in the world assure that buildings and infrastructure will survive the earthquake and its consequential vents, particularly landslides and liquefaction,” Davies said “What we do know is that we have to assume future

earthquakes can occur anywhere, not just on known faults. Unknown faults keep rupturing and they can be very powerful.” The impacts, as seen with Kaikoura, resulted in long-term infrastructure damage including loss of land transport links with consequent loss of commercial and societal activity. The top of the South Island was now suffering financially from a transport service reduction and recovery depended heavily on whether State Highway 1 would be rebuilt. On the broader South Island scale the situation was potentially much more serious than realised, Davies said. With the loss of SH1 and the main trunk railway line, seven eighths of the South Island had lost its reliable link with the North Island, leaving its $50 billion GDP highly vulnerable. When the damaged SH1 was either rebuilt or replaced by another road there would again be two routes connecting the mid South Island with the North Island, restoring the present degree of road transport security.

“But given we know that there will certainly be serious earthquakes and storms in the mountains in the future, with the high probability of severe damage to all of SH1, SH7 and any new route, plus the rail link, it is clear from the current situation that this degree of security is inadequate. “And there is nothing at all new in this analysis. The situation has been clear but ignored for a very long time,” Davies said. He said the present unacceptable vulnerability had been exacerbated by the rundown of coastal shipping over the past decades. “Presumably, because it was economically or politically inferior to boosting road transport and certainly because of the belief that the risk of a major event affecting the state highways and, by implication, its consequences, was acceptably small. “That belief has now been shown to be sadly misplaced,” Davies said. What was lacking was impact analysis for events known to be possible, in particular

PICTURE INCOMPLETE Impact analysis of disaster disruption to South Island transport has been lacking, Professor Tim Davies says.

the longer-term landscape impacts of earthquakes, such as landslides, dam-break floods, river aggradation and the consequences for infrastructure, assets and commerce. “This lack of impact analysis has allowed the present situation to develop.” The only feasible way to provide acceptable transport security was by increasing transport network redundancy by substantially increasing the goods and passenger capability of coastal shipping ports of national significance linking North Island ports with Lyttelton, Port Chalmers and Bluff. That service would be largely

earthquake, landslide and storm-proof and the benefits from greater capacity in coastal shipping were obvious – less heavy freight on the roads, fewer road accidents and a smaller carbon footprint. “So, while we don’t know much about when and where earthquakes will occur in the future, we know enough to be able to plan sensibly to reduce their impacts. “In particular, the insights, challenges and opportunities provided by the Kaikoura earthquake can be utilised now with some of the possible solutions needing to be investigated as a matter of urgency,” Davies said.

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10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

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Quota flexibility key to EU sales Nigel Stirling nigel.g.stirling@gmail.com CHOPPING: British farmers are likely to see Britain’s departure from the European Union as a chance to chip away at New Zealand’s tarifffree quota, special agricultural trade envoy Mike Petersen says.

THE meat industry has told the Government maintaining existing market access for sheep meat exports to Europe and the United Kingdom is of fundamental importance to its future. Trade Minister Todd McClay in August said he wanted to hear from businesses likely to be affected by the decision of voters in the United Kingdom to withdraw from the 28-country club of the European Union. Taking a different tack from its dairy and wine counterparts, the meat industry was refusing to release its Brexit submission. While unwilling to make the document public

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Beef + Lamb New Zealand trade policy manager Rowena Hume related the main points in its joint submission with the Meat Industry Association. The priority was to underline the importance of the EU as the single most valuable market for sheep meat. Central to that was 228,000 tonnes of tariff-free quota negotiated in the 1970s and reaffirmed as part of the Uruguay round of world trade talks two decades later. That gave NZ exporters a privileged position in Europe, which could be challenged if the UK was forced to leave the EU common market and the quota was renegotiated. “How this is handled will have a fundamental impact for an important industry,” Hume said. B+LNZ policy and advocacy general manager Dave Harrison said the value of the quota was in the ability it gave to exporters to shift meat between continental Europe and the UK as market conditions dictated. Anything less than an ability to use all 228,000 tonnes in either the UK or continental Europe would reduce that flexibility for exporters. “Flexibility has been fundamental to the value of the quota,” he said. While it was possible to make a case for doubling the quota to maintain that flexibility Harrison said that was likely to be unpalatable for European and British farmers and NZ would not push for it. “NZ does not want to take advantage of the situation. We are not out to game this.” The industry had no fixed view on how NZ’s arrangements with Europe and the UK should be reconfigured so long as it did not result in a reduction in access enjoyed by exporters in both markets for the past 40 years. Since June’s Brexit vote the industry maintained NZ’s quota rights were on rock-solid legal ground. Hume said that was still the industry’s position but conceded that while international trade agreements did not allow erosion of market access such a scenario as Brexit had never before been legally tested. “NZ has a legal right to the quota. GATT (the General Agreement on Tariffs and Trade) talks about no erosion but it has never been tested.” Recently returned from meetings with UK farming leaders, the Government’s agricultural trade envoy Mike Petersen said NZ’s access for sheep meat would remain untouched if the UK remained inside the EU’s free market for the purposes of trade following Brexit. However, that was looking increasingly unlikely as the UK had signalled it was inclined to shut the door on the free flow of immigrants across its borders, which the EU saw as a crucial condition for it remaining in the single market. It was likely British sheep farmers would see the renegotiation of quotas that would be necessitated by the UK’s departure from the single market as a chance to chip away at NZ’s existing entitlements in the peak of the UK season when competition between imports and local production was hottest. However, Petersen said one restraint on the UK and the EU from throwing up new barriers to trade with the rest of the world, NZ included, was the requirement for both to submit new market access arrangements, in the form of new tariff-rate schedules, for approval from all 164 members of the World Trade Organisation. “They should not think that they can do a cosy deal between the two of them and just expect the WTO members to agree because that is unlikely if there is any change in access to markets.” That process could turn into a minefield with 100 tariff-rate quotas previously dictating trade between the EU and the rest of the world needing to be renegotiated should the UK be kicked out of the common market as a result of Brexit. Petersen said the EU and the UK could seek to avoid a messy set of negotiations by finding a way to carry over existing market access that left its trading partners no better or worse than they were now.

Have your say on this issue: farmersweekly.co.nz

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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

Scour merger quick now challenge over Alan Williams alan.williams@nzx.com CAVALIER Wool Holdings (CWH) will move as quickly as it can to put the industry scour merger together, Cavalier Corporation chief executive Paul Alston says. The process would take several months because of the scale of the work “but we’re getting on with it”. Carpet manufacturer Godfrey Hirst would not lodge any further appeals to try to stop the merger between CWH and the New Zealand Wool Services International (WSI) scour division, after its latest appeal against a High Court ruling was rejected by the Court of Appeal late last month. The peak wool processing season would slow down the merger process, Alston said. The South Island transition would be done more quickly than the North Island because of the greater South Island capacity. Under the merger, the WSI scours near Christchurch and in Napier will be closed and the machinery dismantled and moved to CWH plants, at Timaru and Napier.

The margins are so close they’re not funny. Tanya Pauling Godfrey Hirst Godfrey Hirst said in a statement it had incurred significant expense fighting the plan over the last two years. It described as “questionable’’ the Commerce Commission decision allowing the merger but said the courts “so far have been willing to endorse the regulator’s seeming lack of concern at allowing a monopoly to occur in a key primary industry where much of the so-called public benefit will flow to offshore Chinese owners and most of the detriments will be felt by NZ farmers:”. Godfrey Hirst’s NZ general manager Tania Pauling was not available for comment. The company had previously sold its own scour business to CWH several years ago and remained a customer. It was understood to be working through the full implications of the merger. CWH was 50%-owned by NZX-listed Cavalier Corporation, which would own 27.5% of the merged group. Australian group Lempriere, which owned WSI, would be the biggest shareholder with 45%, with the Accident Compensation Commission and private equity group Direct Capital owning the balance. Lempriere was majority-owned in China and the shareholder agreements allowed for it moving to a larger holding in the merged business over time. The Court of Appeal ruling further supported the proposal to consolidate the scouring industry “and capture the efficiencies necessary to keep wool processing in NZ long term,” Alston said earlier. CWH and WSI are the only wool scourers in NZ and the merger would create a domestic monopoly. In 2011, the courts also dismissed Godfrey Hirst appeals against approval of a previous takeover attempt by CWH of WSI, though that deal, then opposed by WSI, did not proceed. The latest ruling came as a relief, Alston said. The commission said in its decision the merger would result in a lessening of competition but the overall benefits exceeded the detriments. Godfrey Hirst argued the economic benefit margins used to justify the merger were too marginal. “The margins are so close they’re not funny,” Pauling said late last year.

Yarn spinner and carpet manufacturer Godfrey Hirst would be disadvantaged by having to deal with a monopoly scourer. The commission found a five-year net merger benefit of between $800,000 and $23.42 million and an estimated 10-year outcome of between a negative $1.37m and a benefit of $34.27m. Pauling said then that the $800,000 figure was really marginal and for a reduction from two scourers to just one in NZ, any merger should be made to show an overwhelming benefit for NZ.

WHEW: The court ruling allowing the merger of Cavalier Wool Holdings and Wool Services International scour operations came as a relief, Cavalier chief executive Paul Alston says.

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12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

Allied Farmers in growth mode Alan Williams alan.williams@nzx.com GROWTH is the focus this year for livestock agency group Allied Farmers, chairman Garry Bluett told shareholders. After recovering back into profit in 2014 and fixing the balance sheet last year, it could now look to expand, he said at the annual meeting in Hawera. ALF’s subsidiary New Zealand Farmers Livestock added stock agents in its South Island and Northland businesses and was now looking for more there and in other areas, either by recruitment or acquisition. The 66%-owned NZFL would next year move to a 52% shareholding in Hawke’s Bay agency Redshaw Livestock, from the current 34%. That shareholding would be similar to the NZFL model, where the group owned a majority stake but agents in the business also held significant minority stakes. ALF’s new finance business

had also started operations, funding farms buying bulls and now looking to move into other livestock financing. The new business would “stick to its knitting” and stay well away from ventures such as Queenstown property development, Bluett said after the annual meeting. The group has spent years recovering from its earlier finance sector expansion several years ago, which nearly caused its collapse. The losses from that were now all over and there might be some small recoveries from assets that had been written off, he said. “The new business is up and running and going reasonably well and it will be bigger next year.” The core NZFL business had started the new financial year well, trading ahead of the same time last year and importantly dairy herd sales were ahead of last year. “It’s going well. We’re quite happy with that.” The Farmers Meat Export bobby

IN ACTION: Allied Farmers is continuing to expand its core business unit, New Zealand Farmers Livestock.

calf business owned directly by ALF Rural was finding conditions slightly tougher going than last year, with prices lower and also affected by the exchange rate. The company had quite a bit

of stock still to sell at the end of October, with the selling season usually over by late December, in time for inclusion in the half-year accounts. In terms of bobby calf supply, Bluett said the group thought it had picked up some market share but the overall tallies were down. That reflected the heavy culling of dairy cows last year as dairy prices collapsed and farmers moved back to grass-feeding and away from supplementary feed to save costs. The latest recovery in milk price forecasts, to about $6/kg MS, could stabilise numbers this year, allowing farmers to afford to buy more feed, he said.

The new business is up and running and going reasonably well and it will be bigger next year. Garry Bluett Allied Farmers

Century farms awards open Annette Scott annette.scott@nzx.com

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FARMING families with a long heritage on their land have until the end of the year to submit applications to be recognised in the 2016 Century Farms and Station awards. Families who have owned and farmed their land since 1916 or earlier can apply for the special acknowledgment of their hard work and perseverance. Already 370 families have joined the circle of centenarians and sesquicentenarians. New families who have reached the century milestone of family farm ownership and who would like to apply for membership this year need to do so by December 31. The awards were established in 2005 in Lawrence, Otago, to capture and preserve family histories that might otherwise be lost.

Eligible families submit narratives of their farm history with copies of related photographs and supporting documents that are then archived at the Alexander Turnbull Library in Wellington, ensuring all records are kept in perpetuity. A formal dinner in Lawrence each May honours the awardees. Awards chairman Symon Howard said the event was a chance for recipients to meet each other and formally receive their distinctive bronze plaque and certificate to display on their property. “Keeping any farm or station in a family from generation to generation through challenging times is an impressive achievement and deserves to be recognised.”

For more information and an application form go to www.centuryfarms.co.nz

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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

A big deal for rural internet Richard Rennie richard.rennie@nzx.com RURAL internet supporters are welcoming a law that might take fibre broadband to their doors. The little known Telecommunications (property access and other matters) Amendment Bill was due back to a Parliamentary select committee before Christmas. Should it become legislation it would let electricity lines companies run fibre optic cable along existing electricity infrastructure on private property. Electricity lines companies have been limited to supplying only electricity on poles through private property. They were also constrained by changes they could make to lines, over and above general maintenance and repairs. Federated Farmers communications spokesman Anders Crofoot said the legislation appeared promising, ticking all the boxes for the Government by ensuring rural internet capacity and speeds could be boosted. “Federated Farmers has been very much in support of this. “One key area we needed to be certain about was that if you were a landowner with power poles on your property and you were giving up property rights to allow the fibre optic cable to be placed, what was in it for you?” Many farmers close to fibre optic cables had no access to it on grounds it was “back haul” fibre only. “We have pushed for farmers to get a free connection if they give up the access. That is something the select committee is still working on. It would also depend upon how close you are to the power poles.” The federation wanted a maximum distance a farmhouse could be from the poles and the fibre optic cable to qualify for hook-up. “We do accept that this can’t be an open cheque book for access.” Having fibre optic cable in rural areas widely distributed effectively made a seamless link between town and city, eliminating the traditional views of rural and city internet. The stringing of cables would be dependent on lines companies taking up the option or making arrangements with internet service providers (ISPs). Crofoot said the legislation would enable ISPs to make arrangements with lines companies that had the infrastructure in poles but might not want to deliver fibre optics. In Northland, Northpower Fibre of Whangarei was the result of a partnership between Northpower lines’ company and Crown Fibre Holdings, the state-owned enterprise tasked with laying fibre through New Zealand. Last year the company completed a $30 million rollout of fibre in Whangarei. It was a key instigator for the legislation now passing through the select committee stage. Northpower network general manager Graham Dawson was quietly confident the legislation would pass. Until now all the company’s fibre cable had been limited to poles on road reserves. “But this means we can cross private property. “It harks back to the pioneering days when the electricity network was first laid out around NZ, crossing private property in the interests of the greater good. “To put fibre optic along power lines is relatively easy and about a quarter to a third cheaper than putting it in the ground.” He cautioned margins on operating fibre optics were “very small” for companies and suspected some Government help might still be needed to expand into rural areas. “But it really is a no-brainer to do it. “You have an infrastructure corridor there so why not string some fibre optic along it?” He agreed it made for a seamless link between urban and rural internet speeds. “And depending on the technology used, it

may be even quicker in some places than urban speeds.” Rural internet supporter Ernie Newman said the legislation was a game-changer for rural internet users. “We’ve got this huge asset throughout the country in the form of power poles. Not having to apply for easements to get to these poles to put fibre optic cable on will be a big deal. “Every pole in the country means we could enjoy city standard internet speeds in places like the Hakataramea Valley.” The challenge would fall onto lines companies being able to fit it into their business model but there was already a good example of that in Northpower Fibre.

NO-BRAINER: The infrastructure is there so why not string some fibre optic cables along it in rural areas, rural internet supporter Ernie Newman says.

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14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016 The investment we make in processing plants is very much for the medium term. We have every confidence that milk production will come up again because that’s what farmers tell us. John Wilson Fonterra

GEOMETRY: Fonterra can now square the milk curve and broaden the peak by turning the bulk of its milk into powder while still running specialty plants, chairman John Wilson says.

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Fonterra’s capital works now done Hugh Stringleman hugh.stringleman@nzx.com THE opening of the Lichfield milk powder drier, one of the two biggest in the world, symbolically marked the end of Fonterra’s largest-ever New Zealand capital works programme. Over 30 months Fonterra spent $1.4 billion on 10 of its 33 NZ processing sites, most of it borrowed money. Only the $130 million Stanhope cheese plant rebuild in Australia remained to be completed. The work was done to boost capacity to receive and process up to 95m litres of milk a day after Fonterra was caught short in 2013 by farmers’ productivity in a bumper spring. It was forced to dump some products because of lack of storage, compromise environmental standards, make lower-grade products and miss out on market premiums. Although the 2013-14 season set a payout record of $8.50/kg milksolids, Fonterra admitted the lost opportunity was worth more than $1b or 70c/kg off what could have been an even higher milk price. Turning away milk in future was not an option for the cooperative, required to be the processor of default by the Dairy Industry Restructuring Act. Chief executive Theo Spierings proposed and had approved by the board an accelerated capital works programme to enlarge processing capacity by 10%.

It was to cope with peak milk flows, provide a buffer against future milk growth, produce more food service products and give greater optionality – the ability to make the best-priced ingredients on the day. Good milk prices and dairy farm conversions lifted NZ peak milk production from 81m litres/day to 90m over three seasons between 2012 and 2015. But as Lichfield’s $350m build came to an end, Fonterra’s peak daily milk collection for spring 2016 was only 81m litres, back where it was five years ago. As Fonterra boosted capacity by 10%, dairy farmers reduced their output by 10%, minus 3% last season because of financial pressures and a forecast minus 7% this season because of wet weather and gutless grass during the North Island spring. Chairman John Wilson acknowledged the divergence but refuted any suggestion of “stranded assets”. The milk tide was flowing against Fonterra as a result of sound financial decisions made by its farmers in difficult conditions. The Dairy Companies Association said Fonterra’s share of milk collection was 82.5% in October, compared with 84.5% the previous October. Wilson said Fonterra’s milk market share was not deteriorating, judged by the number of shareholding farms, but competitors did tend to collect from larger farms running more intensive systems.

And the adverse weather effects had been felt most in Waikato, Fonterra’s largest collection area. “The investment we make in processing plants is very much for the medium term. “We have every confidence that milk production will come up again because that’s what farmers tell us. “Now that a payout of $6.40 has been forecast farmers will be cautiously revisiting their cow feeding and farming system decisions.” He was not prepared to put a timeline on milk production recovery, saying only that price volatility and therefore milk production changes were a fact of life. Wilson argued a big, modern drier like that at Lichfield was adding value to NZ milk because of its technologies and efficiency. “The big driers do a wonderful job of converting milk into a powder form that is very suitable for many dairy products around the world and has a long shelf life.” He explained the concept of “square curving”, where Fonterra could broaden the peak by turning the bulk of daily collection to milk powders while still running specialty ingredient, food service and consumer product plants. Essentially, that meant Fonterra was able to cope with the most productive period for its farmers, who in turn were among the most efficient in the world at making milk, subject to the pasture curve. “Our unprecedented investment into more consumer and food service

capacity ($400m of the $1.4b) only works if we also have the big driers to buffer fluctuating milk supply. “Also, at present, whole milk powder is leading the price table and has become our highest-returning product.” If Fonterra did only highvalue products for consumers and the food industry it would require all its farmers to be year-round producers, taking them away from the pasture curve and into feed supplementation. “That would considerably raise our cost of production.” For comparison, Australian dairy companies had a peakto-trough ratio of six or eight to one versus Fonterra NZ’s 87 to one – 87m litres a day at peak in October and only 1m a day sometime in June. Wilson used Waitoa as an example of square curving. It ran most of the year producing nutritional powders for infant formula but at the peak, because of milk volume demand, had to switch to skim milk powder. “That was the right decision for the co-operative’s requirement to process all milk every day but it reduced profitability – having the Lichfield drier nearby changes that.” Because Waikato was down 14% at peak this year some plants did not run 24/7 but Fonterra was able to optimise premium products and maximise gross margins. Older, less-efficient plants might be mothballed, as was done in Taranaki recently, but good contingency planning required all assets to be available.

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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

Full traceability now in sight Hugh Stringleman hugh.stringleman@nzx.com TOTAL electronic traceability from dairy farm to sale point will underpin Fonterra’s Trusted Goodness quality seal, the cooperative’s trust in source general manager Tim Kirk says. Fonterra intended to have all 140 of its processing plants on 50 sites in nine countries fully traceable electronically by 2020. The target was totally visible product origin, history, composition, documentation and location from farmgate to customer or consumer, Kirk said. The intention was that product information could be accessed in three hours rather than the three days it took in 2013 to trace the whey protein concentrate from Hautapu when botulism contamination was suspected. Traceability was not new for the processing and marketing co-operative but had been a mix of electronic (think barcodes) and manual (manifests and spreadsheets) for at least the past decade. Fonterra had now adopted the best-practice GS1 global traceability standard used by large supply chains. It defined a minimum set of traceability requirements within business processes to achieve fully electronic supply-chain traceability. “It ensures we will have a robust system for total electronic product traceability starting with milk collected from farms and spanning the entire supply chain from the manufacturing and packaging of goods to their storage and dispatch to customers,” Kirk said. Fonterra was also strengthening its systems to safeguard customers and consumers using product authentication, tamper-evident packaging and anti-counterfeiting technology. From the consumer’s perspective, the placement of QR scan codes on Fonterra retail

products from March next year would provide composition, food safety and provenance information via a website. Anmum infant formula sold in New Zealand would be the first product to feature such information because young mothers were a prime audience for such product background. The code, which was unique for every can or carton of the product, would connect consumers via a mobile phone app to a webpage with information that verified the authenticity of the product and its batch number. “New Zealanders are not big QR scanners compared with Asian countries but it is a great way of providing the full traceability assurances and product provenance our total electronic system will facilitate,” he said. All Fonterra’s NZ and Australian-made products were already electronically traced from manufacturing sites to consumers, by way of bar codes. The challenge ahead of Fonterra was to extend that capability across the seven other source countries and to extend it back down the supply chain to farm level, probably including milk fingerprinting in future. By the end of this year 40% of plants globally would have traceability data electronically connected, a further 50% of the plants would be included by the end of 2017 and the remaining 10% would be completed in 201819. Kirk believed that in future Fonterra would be able to display the “genealogy” of all products, both ingredients and consumerready products, on a computer screen as a histogram. The identity of those dairy products would start with the milk going into tankers, along with milk from several neighbouring farms, graphically represented down to region, district and even GPS location. For a composite product like infant formula, Fonterra also needed to add source information about ingredients like vitamins

COMPLEX JOB: Tim Kirk is in charge of providing traceability for all Fonterra’s ingredients and 2000 products while dealing with people speaking seven different languages.

Traceability provides consumers with reassurance. Jacqueline Chow Fonterra and minerals – when and where they were delivered into Fonterra’s network and then used in manufacture. Consumer and food service chief operating officer Jacqueline Chow said the Trusted Goodness seal was effectively a promise to consumers that Fonterra knew

exactly where each product was, what went into it and what it was used for. “Today, as more products cross borders and consumers put more and more store in value of good nutrition, there is a growing demand for information about what goes into our food and for reassurance that it is produced with a great deal of care. “Traceability provides consumers with reassurance.” Kirk said he didn’t underestimate the size of the task that remained, especially considering the seven languages in which Fonterra operated around the world with nearly 2000 products.

“Often, components extracted from milk during the making of one product would be added to milk being turned into another product. “So as well as tracing finished products, our total product traceability has to cover all the various component products we produce and either sell or use.” Kirk said there wouldn’t be any new requirements put on milk supply farmers and that milk fingerprinting, announced by the Fonterra Research and Development Centre a year ago, would be incorporated in total traceability where and when appropriate.

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16 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

Skellerup moving into new home Alan Williams alan.williams@nzx.com SKELLERUP Holdings was so thorough in its planning for the new dairy rubber ware manufacturing plant in Christchurch it has ended up with two rubber mixing plants. That was to enable the transfer of operations from the old earthquake-damaged site at Woolston to the new facility across town at Wigram without any loss of production. While the old mixing plant was kept going, the new plant was also set up at Woolston as part of the design process and to prove that it worked, chief executive David Mair said. It was then dismantled and moved to Wigram where it was reconfigured to better suit the planned layout. The new $60 million plant has been operating for several weeks as the base for Skellerup’s manufacturing of tubes and liners for use in milking sheds and as the distribution centre.

WAITING: Increases in farmgate milk prices have yet to have an effect on sales, Skellerup chief executive David Mair says.

The rubber mixing plant was the centre of operations and equivalent in height to a threestorey building, Mair said. The old plant would be taken down and moved to Wigram along with all the other advanced technology equipment used in making rubber goods. Mair hoped to have the transfer completed by the end of March. The final fit-out and commissioning of the new plant was still in progress. Skellerup has been at the Woolston site for nearly 80 years Saturday 28/01/2017 but the land was Otago Taieri A&P Show significantly Venue: Gordon Road, Mosgiel damaged in the Website: otagotaieri.ap@xtra.co.nz September 21/01/2017 – 22/01/2017 2010 and Horowhenua AP&I Show 2017 February 2011 Venue: Levin Showgrounds 10am to 5pm earthquakes. Contact: 06 368 6539 or horo.api@xtra.co.nz Operations Website: www.levinapishow.co.nz there were 03/02/2017 – 05/02/2017 spread across 18 Waipara School Centennial buildings on two Registration: www.waiparaschoolcentennial.com sites, one owned Phone: 03 314 7147 or 03 314 6822 by Skellerup and Saturday 04/02/2017 the adjoining site Rangitikei Shearing Sports leased. Venue: Marton Memorial Hall, 397 Wellington Road, Marton The new Time: 8.30am – 5pm building allowed Thursday 09/02/2017 – Saturday 11/02/2017 for everything Golden Shears World Shearing & Wool Handling in one facility, Championships

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Sheep measles low but vigilance still needed Annette Scott annette.scott@nzx.com WHILE sheep measles prevalence had remained low over the past season, storm infections had cost some farmers up to $30,000 in lost revenue, Ovis Management project manager Dan Lynch says. The generally low prevalence across the country was a result of the high levels of onfarm control by sheep farmers and while encouraging, farmers must remain vigilant. History had proved that when onfarm control and regular dog treatments reduced the prevalence rapidly increased. So farmers were to be commended for the low prevalence but urged not to get complacent, Lynch said. The recorded data had been affected this season with the occurrence of several highprevalence storm lines. Those lines, while affecting just a small number of farms, resulted in a significant number of lambs being infected. Storm infections arose

when sheep measles naive lambs were exposed to pasture contaminated by an infected dog. That resulted in high levels of infection with accompanying condemnations at processing. “While not common, a number of these have occurred in the past 12 months, resulting in significant losses to farmers with two separate operations losing over $30,000 each as a result,” Lynch said. The North Island consistently had a higher prevalence than the South Island with factors such as a higher human population accompanied by an increased dog population contributing to the North’s sheep measles prevalence. Farm geography, where dead stock were more difficult to retrieve or even detect, also led to greater risk of dogs getting infected. While the sheep measles prevalence was at low levels Ovis was exploring options to build on the opportunity to take the levels even lower. To achieve that, maintaining and where necessary increasing onfarm control measures were important, Lynch said.

Future young leaders named for scholarships

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with room for growth. Skellerup bought the site from Ngai Tahu for $6.6m in 2013. Before setting-up the purposebuilt facility, Skellerup and builder Calder Stewart Industries had to work out exactly how it operated as it did, engineering manager Geoff Harnett said. “Answering that was like solving the biggest jigsaw puzzle and it took four years to pull apart and re-assemble.” Because Woolston was an 80-year-old building, the team couldn’t just consult the drawings, he said. The array of networks – electricity, hydraulics, process water, air-conditioning and ventilation – had been developed over time and the analysis had to work out how they all fitted together. A lot of the planning for the new building was done in a digital format, from laser-measurements of all the manufacturing equipment. Skellerup supplied NZ dairy farms with the rubber liners and tubes as well as exporting to several other countries. The business going well though times remained tough for farmers, Mair said. The latest increase in milk price forecasts was not yet leading to more buoyant sales.

COSTLY: Storm infections have caused significant losses for farmers, Ovis Management project manager Dan Lynch says.

FIVE Young Farmers members have been named as prospective industry leaders in an inaugural future leaders programme. The up-and-coming primary industry leaders were selected as winners from a line-up of 40 applicants for the new scholarship programme sponsored by the ANZ Bank in conjunction with Young Farmers. The scholarship was

designed to give future leaders a helping hand in their careers. It would provide financial support for study or professional development. The first five recipients were Johanna Smith of Culverden who planned to complete a degree in Mandarin, Jack Keeys, a Waikato University student who will use the scholarship for personal development programmes and further studies; Kahlia Fryer from Waipukurau for Institute of Management development

courses, Olivia Ross from Gore for personal development programmes and Daniel Risi from Christchurch to attend the International Conference on Precision Agriculture in America. Young Farmers chief executive Terry Copeland said the inaugural scholarship attracted a good number of high calibre applicants who reflected the talent and leadership emerging throughout the organisation. “I have no doubt that these five young scholars will go on to become great leaders

in the primary industry,” Copeland said. Young Farmers had invested significant resources in developing leadership among the younger members of the sector and the scholarship was another example of that, he said. ANZ corporate agri head Troy Sutherland said a strong agricultural sector was vital to the growth of New Zealand’s economy. “Developing and encouraging young, fresh talent is key to our future success.”

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18 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

Hi-tech drop aids pilot safety Richard Rennie richard.rennie@nzx.com CONTROLLING several tonnes of aeroplane performing high speed aerobatics over heavily contoured country while applying fertiliser is a deathly juggle but technology is about to remove one of those balls from the daily brief of topdressing pilots. Ballance Agri-Nutrients’ SpreadSmart technology that let topdressing pilots focus on flying rather than applying fertiliser has picked up an award for its contribution to the industry at the New Zealand Spatial Excellence Awards. Ballance research and development head Warwick Catto said while it was not a highprofile award, it was one proudly received by a team that had spent the past four years grappling with some challenging modelling and practical aspects of designing the technology. The mapping system was integrated with GPS technology, software and a hopper capable of opening and shutting fast enough to adjust fertiliser flow from aeroplanes to match land contour while allowing for aircraft speed, wind impact and product properties.

accident rates down into the future. “It has been quite a primitive sort of means of application. “Older pilots have said they have no problem with it but there is a level of fatigue doing it day in, day out and how long you can do it efficiently and safely for. “SpreadSmart lets pilots do what most of them really want to do, which is concentrate on flying well.” The hopper opening and shutting responded to instructions sent via the GPS-mapping system that allowed for speed, slope and product, ensuring areas that did not need fertiliser were avoided entirely and better parts of the farm received higher rates. A key part of the mechanical design was to develop a hopper that could open and shut in only 0.2 of a second, compared to about 0.8s for a human operator. “And that difference adds up to 40-50 extra metres of coverage, either too much or not enough,” Catto said. Super Air operations manager and pilot Kevin Young said after adjustment the technology became second nature to pilots. “You then have faith in the technology to let it control the hopper doors and the pilot

FLYING: Aircraft fitted with SpreadSmart technology for applying variable rates of fertiliser on farmland. The development was the latest from Ballance’s participation in the Primary Growth Partnership Clearview Innovations project, into which the co-operative invested $9.75 million alongside the Government’s dollar for dollar investment. The innovation and commercialisation award recognised new ideas, methods and technologies resulting in social, environmental and economic benefits. Catto said the technology ticked all those boxes but a particularly pleasing outcome was the benefits it would deliver for pilot safety.

“We know that topdressing pilots have one of the most dangerous of jobs and a lot is expected of them while piloting a plane. “Previous technology has not changed much over the years, using a simple lever to open and shut a hopper door while also piloting in what are often pretty demanding conditions.” Fixed wing agricultural aircraft had experienced a decline in accident rates in the past decade from a spike of 35 per 100,000 hours in 2009 to 2.5 per 100,000 hours for 2015. Catto was confident the technology would help keep

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can concentrate on flying the aircraft. He’s not having to look for and identify tricky boundaries, exclusions or parts that have a different application rate.” The need to do separate blocks at separate rates was alleviated, reducing the need for multiple turns with a heavily laden aircraft. Catto said the system left pilots to “colour between the lines” with the technology delivering the paint in the right amounts. The technology has been fitted to two Cresco aircraft owned by Super Air, a Ballance subsidiary. One plane was in Wairarapa and the other in King Country. The company scooped the award from rival co-operative Ravensdown, also developing a system that used hyperspectral imaging technology for its mapping. Ballance was understood to have studied the technology but opted instead for geographic information system mapping technology. Catto said the technology could also be used on helicopters. “We have also had a lot of interest this year on account of the wet weather from dairy farmers wanting to use aerial application on ground they cannot get trucks over.”

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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

Farm profit seminars programme expands Annette Scott annette.scott@nzx.com INCREASED demand has prompted the expansion of a farm business programme aimed at growing performance and profitability on sheep and beef farms. The national programme Understanding Your Farming Business (UYFB), designed and delivered by the Agri Women’s Development Trust and funded by the Red Meat Profit Partnership has been extended to enable a further 2300 women to do the course over the next four years. Focused at increasing profitability and productivity of sheep and beef farmers by strengthening farming partnerships, the four-month programme builds business and communication skills and confidence of farming women. It empowered women to view themselves and their farming roles differently and help lift farm performance, trust executive director Lindy Nelson said. Since 2014 almost 500 women had done the programme, including 50 women who graduated in October from the similar AWDT programme for Maori women, Wahine Maia Wahine Whenua. The programme would now reach 2800 farms, Nelson said.

The trust had boosted its facilitation team to more than 20 industry experts who included graduates of the programme. Independent research specific to UYFB was under way to provide a measure of how the programme influenced onfarm behaviour with results expected early next year.

For more information and to register for the 2017 programmes go to www.awdt.org.nz

MORE MONEY: Aiming to improve farm profitability are, from left, Red Meat Profit Partnership general manager Micheal Smith, Agri Women’s Development Trust chairwoman Charmaine O’Shea, Primary Industries Minister Nathan Guy and trust executive director Lindy Nelson.

IT’S BACK!

We know from the research that having both farming partners involved and continuing to grow their knowledge in the business is where on-farm profitability gains are greatest.

There was increased demand from women and men for this type of development as graduates made a big impact in their businesses. “Constant evaluation and ongoing research shows that graduates are going back to their businesses and creating new momentum in their farming partnerships. “They are asking new questions and offering new thinking and skills,” Nelson said. As a result farmers were gaining more control over their futures. UYFB was not just about women, it was about the farming partnership and men were highlysupportive of women’s increased involvement. “We’re seeing men encouraging their partners to do the programme and then feeling supported themselves as partners become increasingly involved in discussions, operational strategy and decision-making.” RMPP was a $64 million, seven-year Primary Growth Partnership programme funded by industry and the Ministry for Primary Industries. Its aim was to drive sustainable productivity improvements in the sheep and beef sector to deliver higher onfarm profitability. RMPP general manager Michael Smith said an important part of its work was to look at how to increase knowledge uptake and cause onfarm practice change. “We know from the research that having both farming partners involved and continuing to grow their knowledge in the business is where onfarm profitability gains are greatest,” Smith said. “We are excited about being able to offer this opportunity to even more women over the coming four years.” Twenty-four individual programmes would be run in rural areas next year. They included four programmes specifically designed for Maori women who were trustees or involved onfarm.

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Michael Smith RMPP

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20 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

Newsmaker

Kiwi farmers becoming data savvy Richard Rennie richard.rennie@nzx.com

N THE precarious farm software business world Andrew Cooke can claim to be a seasoned veteran, marking the 12th year of Rezare Systems at Ruakura’s Innovation Park. Like its managing director, Rezare has proved to be something of a constant, quiet achiever, leading the pastoral sector on several key initiatives, particularly around the development of a national stock identification system, now known as NAIT. This is in a sector where often each new piece of technology is hyped to be the next big thing only to stall on its launch pad, sometimes for good, sometimes until the industry catches up. Cloud software, the internet of things and more recently artificial intelligence have been the most recent developments, all with equal amounts of hype supporting them. But Cooke and his IT team have managed to weave elements of such new technology into their developments without straying from the mandate that it must capture the specific needs of farmers in a user-friendly, adaptable manner. Rezare identified early on the key barrier to technology uptake was the need to capture data manually in the field. Being unable to do so required it to be reloaded onto computers in the evening, one of the biggest issues farmers have about any software programme. But combining smart systems with mobile data collection opened a host of mobile projects with the latest being the launch of the company’s Pure Farming animal management software. It targets farmers wanting to improve the genetic performance of their flock or herd, linking directly into the Sheep Improvement database. It also enables farmers on premium supply programmes to capture their farm management practices for full traceability and verification. A supporter of a move to a brand-NZ certification, Cooke

says his company’s software and systems are the nuts and bolts of the romanticised brand story NZ might want to tell. “We have what are known as credence attributes that consumers attach to a product. “They include what ingredients are in food, how animals are treated, where the ingredients are sourced. “The ability to track and trace all those puts the numbers and integrity behind any claims made about those attributes.” He points to businessman Seth Godin’s book, All marketers are liars – the power of telling authentic stories in a low trust world, as a seminal example of how consumers crave a good story to their product but will bite back hard should they find that story is in any way compromised or untrue.

We have what are known as credence attributes that consumers attach to a product. Andrew Cooke Rezare Systems “So you tell your story and you do your utmost to back it up and that is where we see all this data come in.” But greater data flows also work in building farmer-processor relationships, as much as consumer-brand relationships. “Having that transparency in the supply chain, that means if the processor is able to pass data back to the farmer we can start doing some good supply chain forecasting, estimating what market demand is and letting farmers know if stock is needed sooner or if they should hang onto it for longer.” Cooke describes selling software to farmers as a hard grind, characterised by a number of small, one-man companies

managing to scrape a living with their long-time base of core clients. But he maintains a key reason Rezare has flourished is by aligning with agri companies with the scale to amortise the cost of new software systems across multiple users and that has included genetics, fertiliser and processing companies over the years. The company has managed to take the lead in major projects across the pastoral sector including underpinning the Farmax software used for feed budgeting, dairy industry technology initiatives and sheep and beef tech programmes. The Pure Farming app is typical of the model, presently run through Gallagher’s dashboard system and capable of being bolted onto other data collection systems. The internet of things has been one of the next big things touted in the tech sector but Cooke says there are a few more years to come before it matures into a technology that will operate seamlessly between machines. Meantime, Cooke cautions NZ’s pastoral sector needs to watch its risk profile if it drags its feet on technology uptake. “We are getting technology uptake, albeit from a relatively low base but my concern is how that compares to the uptake by sectors like the corn or soy sector in the United States or the Israeli dairy industry – the technology only makes them more and more competitive against us.” Kiwi farmers are, however, becoming more data savvy and aware their enterprises generate significant amounts of data. Cooke was a key mover behind the Farm Data Code of Practice that gives endorsed companies approval on their data terms and conditions, in turn giving farmers peace of mind their data is not being misused. For Cooke, the challenge in coming years as data and technology blossoms is not in getting IT staff but getting IT staff with a firm understanding of farming systems. “It’s being able to get people who can understand the science and the systems who can read scientific papers and convert it all into code.”

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DANGER: Pastoral farmers need to watch their risk profile if the sector drags its feed on technology uptake, Rezare Systems managing director Andrew Cooke says.

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz –December 12, 2016

Concept simple but reality tough Alister King

HE path to product differentiation with resulting premium prices for primary exports is not an easy one. New Zealand needs to stop pretending it is. Agribusiness experts and commentators have raised a number of interesting questions about the continuing failure of many big exporters to add value to their commoditised product streams. There has even been the suggestion we are obsessed by commodities. The Government’s Business Growth Agenda has a target of achieving primary industry exports of $64 billion by 2025. Therefore, this is a topic that should be of particular interest to us all. It is not NZ’s role to feed the world but, rather, to extract the highest price possible from global consumers prepared to pay a market premium. Consumers will pay this market premium only if they perceive they are buying a product with a meaningful point of difference. The suggestion is NZ needs to become more proactive in how it is perceived in offshore markets. NZ is now in the position where we are being forced to react to the brand positioning of a global competitor – not an ideal situation. Any NZ story development must first be sufficiently robust so our export markets see it as a compelling proposition worthy of a price premium and/or increased volumes of sales versus our competitors. Secondly, the story must allow both small and larger scale

The

Pulpit

primary exporters, at various stages of export commitment, to all benefit and thus contribute to NZ’s collective aim of reaching our 2025 primary sector target of $64b. Without these two benefits NZ organisations will not voluntarily sign up for such a project.

Too often, our existing clients tell us NZ is very good at developing value propositions, which they describe as pointless. Recent research by Lincoln University provided all primary exporting organisations with interesting insights into product attributes that are possible to leverage as part of a NZ story. They included animal welfare, food safety, nutritional value,

social responsibility and water quality. I suggest in addition to them, and in light of the Irish story, NZ might also have to confront consumer concerns associated with sustainability. The task of creating such a NZ story would not be without its challenges. They potentially include: How do we incorporate the many and diverse interests of each of the various primary sector stakeholders? How do we integrate feedback from both big and small exporter operating in the same sector? How do we manage the creation of a longer-term brand strategy that might be at the expense of immediate, short-term organisation profits? What NZ story inputs are required at regional level and how do we ensure regional ownership of the story? How robust do we make each of the criteria selected? The brand will be only as good as the criteria selected and the auditable robustness of each. How do we incorporate Maori and cultural views? I am sure there will be a number of stakeholders who profess the NZ story idea will never succeed or deliver value. They will celebrate the ease in pointing out the number of difficulties associated with its creation. I am willing to concede that, too often, our existing clients tell us NZ is very good at developing value propositions, which they describe as pointless. Our offshore clients appreciate these value propositions, however, they are less willing to pay a premium for them. The danger for the NZ primary export sector is these value propositions add costs to a sector

BEWARE: The danger for exporters is value propositions add cost to a sector already struggling, King Marketing Associates director Alister King, who specialises in food and beverages, says.

that is already struggling. Exporters already understand the need to differentiate, innovate and be flexible in a rapidly changing world. Perhaps what is less well known is what organisation management, skill-set and cultural changes are required to achieve a successful transition from commodity to adding-value exporter. Therefore, we must re-focus our discussion toward the how rather than the what by asking how primary exporting organisations blend new, added-value products into a manufacturing and management process that has

spent its lifetime focused on costcontrol. A NZ story is not a magic panacea that will guarantee success but I strongly suggest it is a necessary component of the wider strategy of pro-actively cementing NZ’s position in a truly global world market.

Your View Got a view on some aspect of farming you would like to get across? The Pulpit offers readers the chance to have their say. nzfarmersweekly@nzx.com Phone 06 323 1519

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Opinion

22 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

EDITORIAL

Nation’s grunt in the country

Bryan Gibson

LETTERS

More letters P23

Are farmers rates too high? THE recent article (Farmers Weekly, November 14) titled New valuation system combines land titles, requires further explanation. Even in the former Valuation Department days, all titles making up a farm were valued as one farming unit for rating purposes. With changing legislation, the Rating Valuations Rules 2008 formalised the practice. Why QV has taken so long to follow the rules is of some concern given that many farmers will have been paying substantially more rates if the council imposes fixed charges per rating unit. Anyone can access the RV Rules, just Google. Rule 2.4 sets out what a rating unit is. For most properties, one title constitutes a rating unit. However, there is an

exception for farms. If a farm comprises two or more titles, it constitutes a single rating unit if “the land is owned by the same person or persons, is used jointly as a single unit and is contiguous or separated only by a road, railway, drain, water race, river or stream and the land is used as one farming operation and it is likely that the certificates of title will be alienated as only one farming operation”. Unfortunately, titles in mixed ownership, even if adjoining, cannot be amalgamated for rating valuation purposes. For example, Mum and Dad might have one block, Tom has one block and another block is in the name of a trust. Tom could be farming the properties as one operation. Recently, I came across one council that provided for

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Graham Halstead Wellington

Name them THE statement “a new plant species established in the wild in New Zealand every 39 days” in the November 28 Farmers Weekly article Biosecurity army to fight big challenges, is, to say the very least, misleading. The Farmers Weekly is not the only publication this “every 39 days” has appeared in. Repeated enough times, a disingenuous claim such as this becomes fact. Every 39 days equates to 9.3 pest plants every year. In 2006, it was calculated NZ had 2436 non-native, naturalised, vascular plants established. If you go back to Captain Cook’s arrival in NZ (237 years between Cook coming to NZ in 1769 and the datum year of

Letterof theWeek

EDITOR Bryan Gibson bryan.gibson@nzx.com EDITORIAL Stephen Bell editorial@nzx.com Neal Wallace neal.wallace@nzx.com Andy Maciver andy.maciver@nzx.com Annette Scott annette.scott@nzx.com Hugh Stringleman hugh.stringleman@nzx.com Alan Williams alan.williams@nzx.com Richard Rennie richard.rennie@nzx.com EDITORIAL DIRECTOR Tony Leggett tony.leggett@nzx.com

only one set of fixed charges where adjoining lands were in different ownership. Also, the same council provided for one set of fixed charges for noncontiguous land providing it was one farming operation and had the same ownership. But the relief offered is council policy and not related to rating valuation rules. Farmers, not just in Waikato, should check to see that they are receiving only one rating valuation for their farms where more than one title is involved. Farmers who have been overcharged rates over the last six years as a result of rating valuers (eg, QV) disregarding the statutory rules should apply for a refund under rating legislation provisions involving errors and omissions.

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So go on! Stick the knife in WRITE TO The Editor, FW - The New Zealand Farmers Weekly P.O. Box 529, Feilding EMAIL nzfarmersweekly@nzx.com • FAX 06 323 7101

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HE nation was thrown a bit of a curve ball this time last week when John Key announced his resignation. By the time you read this he’ll be gone and a new leader will have stepped up from the bench. Key will be remembered for stability. The past decade has seen more onshore challenges than I can remember. He took office as the global financial crisis hit and has run a pretty steady ship since with New Zealand’s economy seeming to emerge in better shape than many contemporaries. The earthquakes in Christchurch and Kaikoura also happened on his watch. Whether the rebuild in Canterbury has gone well depends on who you talk to but the garden city is beginning to look and feel more vibrant again. When asked about his regrets last week, Key’s first lament was not being able to get the Trans Pacific Partnership over the line. The trade deal has been awaited by food exporters here for some time, of course, and would have given them better access to key trading partners. Key, of course, is not responsible for elections in other nations, which were the main reason the deal derailed. It’s hard to think of other, specific Key policies or causes that have helped, or indeed hindered, farmers in recent years. Resource management act reforms have been delayed because of a lack of numbers in the house. Water management has been passed to local government. Of course, as Minister for Tourism, Key has championed things like the cycle trail that now snakes the country’s length. That has brought a bit more life to rural towns and helped farmers diversify into tourism ventures themselves. But at the end of the day it’s money for production that farmers want and a fair hearing on issues like environmental management and animal welfare. Whoever, gets the top job today, they’d do well to remember just where the productive grunt of NZ resides. It’s in the country.

Opinion

Rapid reactions Lamb flaps prices lift Prices for lamb flaps are at a 20-month high, driven by increased demand from China and lower supply from New Zealand.

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

Farmers Weekly Farm Life Competition We will be running this competition every month, so send your Farm Life photo to our Facebook page or Twitter with the hashtag #farmersweeklycompor email them to us at nzfarmersweekly@nzx.com and you will go in the draw to win a cool spot prize.

@mikeonthehills @FarmersWeeklyNZ Ok but isn’t having the best price for a lower grade product like flaps akin to having the best horse in the glue factory?

Fonterra emergency teams help farmers Fonterra’s 22 Kaikoura supply farmers might have their milk picked up this week for the first time since the November 14 earthquake cut road access to the district. Kevin Packard Good one Fonterra You have the suppliers backs. Awesome. Follow us: @NZFarmersWeekly

FW Poll How would you rate 2016? It’s been great Just okay A terrible year bit.ly/FWpolls

MY TURN: Christine McDonagh’s ewe Annabelle has just given birth to Frank but Danny is queuing up for his turn at the milk bar.

LETTERS 2006) and do the maths you will arrive at the figure of 9.3 plants a year. However, a large proportion of these plants were established in the first 150 years following colonisation – think gorse, broom, thistles and other “reminders of home” early settlers brought with them. While acknowledging pest plants are still arriving in NZ through contaminated seed, velvet leaf for example, and garden escapees continuing to become weeds, if someone can show me the list of the 18 new plants established in the wild in NZ in the last two years or the 180 plants in the last decade I would be most interested to see it. Dr Jenny Dymock Far North

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PREOCCUPIED: These calves of Nyree Hawkes were too busy to take in the view.

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Opinion

24 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

Lunatic fringe threat to farmers Alternative View

Alan Emerson

from them shortly after birth”. It is important to recognise both groups are vegans. I find them as generally being pale, pasty and humourless but they do make a lot of noise. It must be something in the mung beans. The important point is that despite breaking the law and the Human Rights legislation, neither the Police nor the Human Rights Commission did anything – after all, we’re only farmers. We had Greenpeace paying for an advertisement on television that pilloried dairy farmers. It was despicable and why the Advertising Standards Authority didn’t bring it to heel is beyond me. Its accusation that the reason our rivers are polluted is solely because of industrial dairy farming is bollocks and puts Greenpeace in that lunatic fringe category. Maybe it could show me the dairy herds around the Avon

and Heathcote Rivers, which are Canterbury’s most polluted. We have Fish and Game personifying arrogance in the extreme with farming. Its actions over the Ruataniwha Dam and the Horizons Regional Council’s environmental plan speak for themselves. Fish and Game’s actions plunged to even greater depths when it commissioned a committed anti-dam activist to critique an out-of-date report on Wairarapa irrigation then huffed and puffed to try to fan the flames. The issue with irrigation is that communities in irrigated areas get between two and a half and three times the income of nonirrigated communities so, as I’ve previously stated, Fish and Game is happy consigning communities to relative poverty so the elite few can catch imported fish. Finally, it would be remiss of me not to mention the Waikato Regional Council’s unscientific approach to water quality. The livelihood of its ratepayers seems secondary to good, reputable and independent science. All of those groups are a threat to agriculture. Their aim is to put you and me out of business by severely restricting our ethical, sustainable and reputable practices.

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One answer is to front-foot the problem, to publicly complain to the police, Human Rights Commission and the Advertising Standards Authority about the excesses of the lunatic fringe and to keep exerting pressure.

Their aim is to put you and me out of business by severely restricting our ethical, sustainable and reputable practices. I understand a complaint has been made to the Advertising Standards Authority, which is great news and that complaints to the police have been ignored, which is par for the course. The problem is exacerbated by resources or the lack of them. Federated Farmers punches well above its weight on an income last year of just $8.8 million. That $6.6m is from membership subscriptions is a credit to it. The problem is that Fish and Game with $11m, Greenpeace $11m and Forest and Bird $8m have, in the main, greater financial backing and they don’t have the research, policy and

supportive role that Feds does. Local authorities have tens of millions of farmers’ contributions to frustrate them, usually at some length. Fish and Game has an inbuilt subsidy of being able to tax anyone who wants to kill fish and ducks by way of a licence fee. I agree with Dr William Rolleston that the licence fee should be restricted to nonlobbying activity and forlornly look forward to a law change enabling that. Another answer is harness some of the $100m the sector pays for industry-good activities and use it for advocacy, which would be a far better use for levy-payers than market development. It would take a law change but why not. Something has to change if we are to continue to farm. Finally, thank you for your emails over the last 12 months. I don’t care if you agree or disagree with me; it’s always good to hear from you. Have a great Christmas and a healthy, happy and profitable 2017.

Your View Alan Emerson is a semi-retired Wairarapa farmer and businessman: dath-emerson@wizbiz.net.nz

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FARMING has taken a severe battering over 2016 and it hasn’t been caused by earthquakes or severe weather, though both were testing enough. It’s been the result of the agriculture bashers who show no moral compass and never let a fact get in the way of a good story. A prime example was the Havelock North water crisis, about which I’ve written. The problem wasn’t caused by intensive agriculture though that didn’t stop the Greens, Fish and Game and Mike Joy saying it was. That was compounded by socalled Farmwatch members going illegally on to farms, breaching farmers’ rights and installing cameras. Everyone took them seriously, which surprised me because their stated aims are to convince people not to eat animals, wear anything made from animal products or buy any products tested on animals. My view is that they’re not mainstream protest groups but the lunatic fringe. While on the subject, SAFE is just as bad. When the bobby calf saga hit the headlines its approach was to label the calves as being “born to die” followed by “distressed cows having their babies taken away

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz –December 12, 2016

This was the year of the upset WHERE do I begin? Donald Trump, Brexit, Ireland beats the All Blacks, Italy beats South Africa, England beats everybody, the Cronulla Sharks win the NRL, Leicester City the EPL, the Chicago Cubs the World Baseball series, the Cleveland Cavaliers the NBA and John Key possibly runs the National Party out without facing a ball in 2017. Mind you, the more things change, the more they stay the same. When I look back on my 2015 awards there are many recurring nominees. So here we go, for the same categories, 12 months on: The Big Farming Story of the Year Award: 2015 contenders were El Nino, the resultant drought on the east coast of the South Island, the sale of a 50% stake in Silver Fern Farms to Shanghai Maling, a stellar year for beef, the fall of the lamb schedule, the rise of goat and sheep milking, the resurgence of horticulture and the renaissance of kiwifruit. But the ongoing downturn in dairy dwarfed them all. One year on and the story of the year has to be the turnaround in the fortunes of the dairy industry. Only one man picked it but more about him later. The Farming Executive of the Year Award: Last year this went to Silver Fern Farms chairman Rob Hewett for “pulling off the biggest potential game-changer in

From the Lip

Jamie Mackay

the meat industry since the good ship Dunedin set sail for Mother England, loaded with the first shipment of frozen meat, in 1882”. As fate would have it, Hewett might have won this award on false pretences, seeing the deal was subsequently challenged, before being finally ratified with the cheque being banked only last week. So the head honchos at Silver Fern Farms and the likes of Zespri are deserved nominees in 2016 but I’m going to give the award to a man I’ve been highly critical of in the past. He’s still paid too much, still appears to be a somewhat dour Dutchman but fair dues, he’s presided over our biggest company, produced record profits, has overseen a return to the black for those milking black and whites while all along milking a great pay packet for himself. Dour Dutchman - maybe? Canny Dutchman – definitely. Well done Theo. Politician of the Year Award:

PROVED RIGHT: Nathan, “Pollyanna”, Penny, now known as The Oracle, is the Ag person of the year.

It was the usual suspects a year ago. Mentioned in dispatches and in the reckoning were John Key, Winston Peters, Andrew Little, Damien O’Connor, Kelvin Davis, Paula Bennett, Judith Collins, James Shaw and David Seymour. But my politician of 2015 went to the understated understudy Bill English who presided over the first surplus since the Global Financial Crisis. I suggested back then that some people are just born to be number twos whereas some, such as the member for Northland, are born to stand outside the tent and spray number ones. Twelve months later the understated understudy has ended the year at number one. But this year he bows to his predecessor. History will judge John Key kindly. Sportsperson of the Year Award: Last year I pondered the claims of Lydia Ko, Lisa Carrington,

Hamish Bond, Eric Murray, Joseph Parker and Richie McCaw before settling on World Cup talisman Dan Carter. Richie and Dan are off the radar but the remaining aforementioned still loom large on our sporting horizon. But this year I’m going to take a farming bent and name South Taranaki cow cocky Kevin “Smiley” Barrett. A more than useful rugby player back in the day, his greatest contribution to sport has been his breeding prowess. If he was a bull, LIC would bottle him. Three of his progeny made the end of year All Blacks tour with the fruit of his loins resulting in the best player on the planet. The Country Award for Agricultural Person of the Year: Last year’s nominees included Trade Minister Tim Groser, Silver Fern Farms’ Rob Hewett and Dean Hamilton, Fonterra chairman John Wilson for simply surviving

a banana skin year but the winner was SAFE’s Hans Kriek who galvanised farmers like no other. However, there can be only one winner in 2016. When all around him were harbingers of doom, one man stood defiantly alone against the conventional economic wisdom of the day. He said the dairy payout would recover and he said it would recover to $6, at a time when farmers were being paid $3.90. He’s ASB’s affable rural economist Nathan Penny. He started the year as Pollyanna Penny and he finished it as The Oracle. He is Ag Person of the Year.

Your View Jamie Mackay is the host of The Country that airs on Newstalk ZB and Radio Sport, 12-1pm, weekdays. jamie@thecountry.co.nz

Key’s departure evens the playing field IT WAS a fascinating week in politics last week. We’ve been blessed and become accustomed to stable government for nearly two decades, which, as citizens and business folk, is an excellent thing. Just two prime ministers over 17 years while the Aussies have had six. John Key’s resignation was a surprise though Winston Peters reckons he knew and had predicted it but no one can remember when. Once the disbelief wore off we realised his timing was good because it gave his replacement Bill English time to build a team and be ready for the next election as his own person. The last time we had a prime minister resign while in office was August 1989 when Lange stepped down but he did so when his caucus colleagues reelected Douglas to cabinet and his affair with Margaret Pope and the end of his marriage were about to become public. Palmer’s resignation wasn’t so voluntary. Other PMs have resigned in office but never with the popularity and arguably at the peak of their powers as Key was

From the Ridge

Steve Wyn-Harris

when he made his announcement. Too few of us have the sense to go out when on top. Five PMs have died in office, quite a few have been knifed by their own colleagues and most get the old heave-ho from the voters. The eight years of stable government in an MMP system must be Key’s chief achievement. Walking into the global financial crisis and negotiating those perilous times when other countries fared much worse and dealing with the Christchurch earthquake and recently the North Canterbury/Kaikoura ones has shown him at his best. However, to negotiate the GFC and keep the economy ticking away during his tenure the Government’s debt grew from 5% to 25% of GDP.

Eight years ago, he promised water storage as a Government priority but the only schemes to come to fruition were already under way and the best bet here in Central Hawke’s Bay languishes on a drawing board and would have been a firmer proposition if the Government had been more proactive. Eight years of talking about reforming the Resource Management Act has resulted in SAFE: Bill English, a man of integrity. no changes and a goal of doubling exports by 2025 is going to fall well like or trust Collins. I doubt she short. had much support from caucus In short, Key had great political and that no one came out and capital with high poll ratings endorsed her likely proves it. She throughout his eight years but now would do well to take a leaf chose a risk-free path by not using from Key’s book and leave politics that political capital to make but I’d be surprised if she did. dramatic changes. I like English and his integrity And now he has manufactured and he will relish his chance to a seamless handover to his loyal finally achieve his ambition of deputy by endorsing English in becoming PM, which he first tried the same breath as he resigned. in the 2002 election but presided Having read Hagar’s Dirty over National’s disastrous 21% Politics I was very surprised share of the vote. Key reinstated Judith Collins to Key’s resignation has given cabinet and if by some outside Andrew Little a chance to form chance she had succeeded Key, the next government as he and National would have had little English are more evenly matched chance of a fourth term. in a head to head. Elections are won by capturing But Little must grow Labour’s the centre and middle NZ does not

polling from the high 20s to at least the mid 30s and probably the high 30s to wrest the treasury benches from National. Winston Peters probably comes even more into play now in determining the next government. With David Shearer’s (a decent man) departure and Key and Cunliffe wanting out, English might have little choice but to call an early election. The next six or seven months will be of great interest.

Your View Steve Wyn-Harris is a Central Hawke’s Bay sheep and beef farmer. swyn@xtra.co.nz

World

26 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

Trump to protect US farmers MORE productive farming and less environmental interference are likely in the United States once Donald Trump takes office, the farming community has been told. National Council of Farmer Co-operatives president Chuck Connor, a key Trump agricultural adviser, said farmers could expect to be rewarded for their support for the president-elect, the UK Farmers Weekly reported. “Farmers, ranchers and people of rural America feel like they have been under attack and they responded in the presidential election,” he told a recent Farm Foundation Forum in Washington, DC. “President-elect Trump is very aware where his bread is buttered.” Discussion about the 2018 US Farm Bill, which sets policy for the next four years, begins next year and Conner said the new administration would be keen to reduce the influence of organisations such as the Environmental Protection Agency. Another particular target was likely to be the proposed Clean Water Act legislation, Waters of the United States (WOTUS). According to Conner, the president-elect’s rural mandate made WOTUS unlikely in the 2018 Farm Bill. But it would continue with the Supplemental Nutritional Assistance Program (SNAP), which accounted for almost 80% of the farm budget, providing healthy

PAYOFF: Farmers can expect to be rewarded for supporting United States President-elect Donald Trump, key agricultural adviser Chuck Connor says.

food for low-income families. Conner also sought to address farmers’ trade concerns, given Trump’s recent rejection of the Trans Pacific Partnership, something US beef, pork and soya producers supported. “Within the upcoming administration there is strong recognition of the value of agricultural exports to our farm economy,” he said. “President-elect Trump likes what he sees in agricultural trade but feels in the manufacturing

sector we could do better. “We are an agricultural exportdependent economy and the president-elect will do all he can to protect that.” While Trump had yet to name his new agriculture secretary, Conner was believed to be a contender. Meanwhile, farm leaders worldwide were pushing the World Trade Organisation to scrap domestic subsidies for farmers, the www.weeklytimesnow.com.au website said.

The Cairns Group Farm Leaders — an offshoot of the 19 Cairns Group countries that collectively push for free trade in agriculture — argue domestic subsidies are unfair and distort global markets. National Farmers’ Federation chief executive Tony Mahar joined his counterparts from countries including Argentina, Brazil, Canada and New Zealand in Geneva last month to make their position clear to WTO officials. The aim was to ensure the issue was high on the agenda when the WTO ministerial council next met, in Buenos Aires next year. Mahar said farmers in some countries received 50% of their income from government subsidies. “We don’t get that much and we’re still expected to compete on a global stage,” Mahar said. Domestic subsidies globally amounted to more than $760 billion a year from 2013 to 2015. Australian farmers received 1.3% of their total income from government support, through measures such as farm management deposits and drought assistance. New Zealanders received less than that while Brazilian farmers received about 3%. In contrast, Swiss and Norwegian farmers receive almost two-thirds of their income from domestic subsidies. Japanese farmers receive 43%, Indonesians,

President-elect Trump is very aware where his bread is buttered. Chuck Connor Agriculture adviser

29%, Russians, 15.3%, Chinese, 21.3%, and Europeans, almost 19%. The WTO ministerial council last year agreed to scrap export subsidies, a decision hailed as a significant step forward after a decade of perceived stagnation of the WTO. Mahar said the WTO was still an important vehicle to deliver trade outcomes for Australian farmers, regardless of the recent focus on bilateral or regional trade agreements. He was optimistic movement on domestic subsidies could be achieved but farm leaders would need to keep the pressure up. “People had a view that (scrapping) export subsidies wouldn’t be achieved and they were,” Mahar said. “We’re hopeful that it will happen but stars have got to align. “We’ve got to get support from some key players and we’re working with government to make the most of key opportunities.”

Soil becomes the latest environmental issue BRITISH MPs have called for improved soil health to be rewarded through farm payments (subsidies) during the first ever parliamentary debate on the topic. Soil health was being discussed on the back of the Environmental Audit Committee’s report into the issue which was published earlier this year. The report recommended the government take a number of actions to improve soil health, such as refining crosscompliance in order to mitigate agriculture’s impact, creating an incentive structure in the 25-year environment plan to encourage farmers to contribute to sustainable management of soils; excluding maize from the renewable energy subsidy and taking tougher action to prevent peatlands being burned and drained. Committee chairwoman Mary Creagh said “One of the first findings of our report is that soil is a Cinderella environmental issue. “It receives a lot less attention than air pollution, water quality and climate change but supports 95% of the world’s food production.” The MPs were critical of the government’s progress on improving soil health so far, claiming its target to sustainably

manage soil by 2030 would not be met without change to policy. There were calls for the government to introduce a rolling national monitoring scheme, similar to the one in place in Wales but Environment, Food and Rural Affairs Minister Therese Coffey rejected the idea on the grounds of expense. Other MPs claimed farmers monitoring chemicals in soil was not enough and the government should be looking at the organic and carbon content of soil too. European Union policies were criticised by Taunton MP Rebecca Pow, who said “I do not think there should be a blame game against farmers. “Many of the ways farmers have been forced to farm have been directed by our policies of lowcost food. “That is why many farmers have gone down the route of monoculture and least-cost production and our European Community policies have encouraged that.” But concerns were raised about the impact of increased food production on soil quality, with one MP claiming it was unwise to look at food and farming purely from an economic, money-making viewpoint and nothing more. Meanwhile, farmers hit back at

a tweet from the Soil Association that suggested those who were not organic “abuse their animals”. The statement prompted a backlash from Twitter users who described the video, entitled Millions of farm animals are abused in the pursuit of cheap food, but there is another way . . .’ as disrespectful, misleading and totally inaccurate. The association defended the move, adding more than 80% of animals raised in the EU were factory farmed and could not exhibit their natural behaviours. It said the tweet, which was sent as part of the #ChangetheWorld campaign, was to highlight the importance of high animal welfare. But Cheshire dairy farmer and writer Phil Latham said the tweet was playing on consumer misconceptions and was unfair towards conventional farmers. “I have absolutely no problem with the Soil Association differentiating organic milk. “There are fantastic examples of good organic but also good conventional. “The tweet enhanced the danger of deliberation and framed the narrative that organic is better – which for animals is just not true.” In a tweet in response to

DIRTY TALK: Soil health has become a topic for debate in the British Parliament with a suggestion is attract a new subsidy.

the video Latham said “You erroneously want to position your production system above others #false.” The association later apologised and said “We apologise for the misunderstanding caused by a recent tweet. “Animal welfare is an emotive subject and we were trying to convey a very complex message in a short space and we did not do a good job.”

The organisation said it was trying to work with all farmers and did not want to appear antifarming, adding the us-and-them attitude in the tweet was not helpful and was not something it wanted to promote. “This is a problem with the system, not individual farmers. We recognise that most farmers, whether organic or not, care deeply for their livestock,” it said.

PRODUCTIVE DAIRY UNIT

Marlborough

212 Ronga Road

For Sale $4,700,000 plus GST (if any) View by appointment

161 hectares located in Rai Valley. A comfortable 45 minute commute to either Nelson or Blenheim. Close proximity to the Marlborough Sounds, Havelock Marina and Rai Valley Area School. 150,294kg/milk solids last season from 380 cows. Good fertiliser and regrassing history. 100 hectares irrigated. 44 bail rotary shed, DeLaval plant, auto cup removers, teat spray and plant wash. In shed feed system. Well supported with infrastructure including three dwellings, numerous sheds and outbuildings. A very desirable location offering a quality dairy unit with several lifestyle opportunities in a vibrant rural community.

NORTHLAND COASTAL OPPORTUNITIES Two properties - same vendors. Our ageing vendors are decreasing their land holdings and want them sold. High Chaparral is 75ha (186 acres) overlooking Helena Teal Bays. Kaiikanui Road is 194ha (480 acres) with extensive coastal views. Each property has areas of grazing plus large areas of bush and regenerating manuka. Choices aplenty here: private sanctuary, coastal development or honey production. Properties have size and

Situated on Northlandâ&#x20AC;&#x2122;s east coast, 40km east of Whangarei City.

M 027 420 4202 B 03 578 7700 andy.poswillo@bayleys.co.nz BE MARLBOROUGH LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

GUARANTEED SUMMER RAINFALL

124a Plantation Road, Te Kauwhata

Tenders Close 2pm,

This 211ha dairy unit is located 64km south of Auckland Airport in Te

For Sale

Thurs 19 Jan 2017 (unless sold prior) 84 Walton Street, Whangarei

year-round grass growth, with central pivot irrigation supplying water

View by appointment or Open Days www.bayleys.co.nz/1050025 & 1050026

Kauwhata. Summer rainfall is not required to achieve guaranteed

www.bayleys.co.nz/89482

Karl Davis

flat to rolling contour. The farm supplies OCD and has produced up

alex.smits@bayleys.co.nz

a 400 cow capacity feedpad and in addition an array of support

M 021 959 166 lin.norris@bayleys.co.nz

74 Webb Road - Tues 10 & Sun 15 Jan 2017, 2.30-3.30pm

MACKYS REAL ESTATE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

View by appointment

an allowable rate of 9,000 cubic meters per day. The property is of

Alex Smits

Lin Norris

$6,900,000 + GST (if any)

from the Waikato River, commencing 1st October until 31st April at

to 196,000kgMS over the last three seasons, milking 450 cows

Open Days: Kaiikanui Road - Tues 10 & Sun 15 Jan 2017, 1-2 pm Contact us now for full details.

Andy Poswillo

Webb & Kaiikanui Roads, Helena Bay, Northland

scale for those who appreciate what makes NZ special and at a price M 021 273 6975 level that is achievable for many. Numerous building sites to choose B 0800 80 20 40 from. An excellent investment for a family/families or a group.

www.bayleys.co.nz/4131609

M 027 496 4633 B 0508 83 83 83 karl.davis@bayleys.co.nz

through the 48 ASHB cowshed. Improvements include two homes, of Peter Kelly M 027 432 4278 three and four bedrooms plus a self-contained single man quarters, shedding. Centrally located 51km north of Hamilton, local amenities and primary schooling can be found 5km away in Te Kauwhata

B 07 834 3828 peter.kelly@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

township. The property offers plenty of room for further irrigation and production development, view today!

www.bayleys.co.nz

MANGATANGI DAIRY

Mangatangi

RARE OPPORTUNITY IN A GREAT LOCATION

194 Mangatangi Road

Tenders Close 4pm,

You won’t want to miss this - 136 hectares of freehold land plus 327

This well-presented dairy unit comprises of 90.2ha of flat to easy

Tues 20 Dec 2016 (unless sold prior) 96 Ulster Street, Hamilton

contour with great fertiliser history and beautiful mature trees. Including the neighbouring 30ha lease block the 18 ASHB cowshed has produced a three year average of 90,000kgMS supplying OCD. The shed is well supported by a good range of ancillary shedding in

View Mon 12 Dec 12-1pm www.bayleys.co.nz/812284

Karl Davis

addition to a feed pad. Accommodation caters for all with two homes M 027 496 4633 and three sleepouts. Situated in a well sought after location, the immediate area offers recreational activities with fishing 14km away in Kaiaua. Everyday amenities are available in Pukekohe and Ngatea 29 and 37km respectively. Going concern option is also available -

B 0508 83 83 83

hectares lease hold. Located just 15 minutes from Matamata. This 463 hectare, (more or less) dairy operation is currently milking around a 1000 cows and operates on a split calving programme, calving approximately 300 cows in the autumn and 700 cows in the spring producing in excess of 300,000kgMS and offering plenty of potential for production gains. At the hub of the operation is a 50 bail rotary cowshed with in shed meal feeding plus a good range of

Lee Carter

farm buildings and three good homes. The farm offers a good mix of

M 027 696 5781 B 0508 83 83 83

contour with plenty of mowable land. With the freehold and leasehold

SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

Due to circumstances this farm is seriously for sale!

214 Kakahu Road, Matamata

Deadline Sale 4pm, Tues 20 Dec 2016 (unless sold prior) 65 Arawa Street, Matamata

View Thurs 15 Dec 11am

www.bayleys.co.nz/812293

Sam Troughton M 0274 800 836 B 07 881 9292 sam.troughton@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

farmed as one, the property comes with a strong fert history, is well fenced and subdivided with a good water system in place. Easy access around the property via wide well-formed all weather access lanes. Opportunities like this are rare. Act now!

OFTEN SOUGHT, RARELY SOLD

Central Hawke’s Bay

IRRIGATED SCALE AT $25KG/MS

Tasman

570 Ashcott Road

For Sale Offers invited by

Fern Flat Road, Murchison

For Sale

Calving 850 cows, 4 year average 277,670kg milk solids.

$6,850,000 + GST (if any)

4pm, Fri 16 Dec 2016 (unless sold prior)

256ha milking platform (220ha irrigated) with an additional 14ha

This highly desirable 84.9870 hectare property offers a range of opportunities. The farm with all flat contour, mix of soil types and potential for irrigation is situated 12 kilometres from Waipukurau in the ideal farming hub of Central Hawke’s Bay. The property has been faithfully farmed by the current vendors and includes well maintained cattle and sheep yards with loading facilities, bore water which is reticulated around the farm, excellent fertiliser history and fencing. The property has extensive Lucerne plantings and is renowned for quality stock finishing. An attractive dam creates the ideal spot for duck shooting. With its size and location this opportunity is unique.

View by appointment www.bayleys.co.nz/2870083

Andy Hunter M 027 449 5827 B 06 858 5500 andy.hunter@bayleys.co.nz

Sam Twigg M 027 655 4702 B 06 858 5500 sam.twigg@bayleys.co.nz COAST TO COAST LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

www.bayleys.co.nz

providing supplement and winter grazing. 44 ASHB shed, auto cup removers, in-shed feed system, new effluent system recently

View by appointment

www.bayleys.co.nz/4131616

Andy Poswillo

installed. Good fertiliser and regrassing history. Well supported with

M 027 420 4202 andy.poswillo@bayleys.co.nz

numerous sheds and outbuildings including three dwellings. Located

Leeon Johnston

within close proximity to Murchison and several service amenities,

M 021 460 294 leeon.johnston@bayleys.co.nz

approximately 1 ½ hour commute to Nelson.

BE MARLBOROUGH LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

THE NEW ZEALAND FARMERS WEEKLY – December 12, 2016

Real Estate

farmersweekly.co.nz/realestate 0800 85 25 80

TR ANS F O R M I N G R E A L E STAT E I NTO REAL ADVANTAG E FOR SALE HILLCOTE FOREST KANAKANIA ROAD, Gisborne

GISBORNE - CUTOVER LAND CLOSE TO PORT! Hillcote Forest offers a unique opportunity to secure 318ha of second rotation cutover ‘P89’ forestry land. The existing crop harvest is expected to be finished within 18 to 24 months. The land is located 49km north-west of Gisborne in a proven high growth area with options including replanting to grow another productive crop, and benefiting from the demand for carbon or exploring the options of a large scale Manuka plantation. + 318ha freehold land + 263ha net stock area + 49km to port + Excellent infrastructure in place Contact me today for a full information memorandum. TENDERS CLOSE Friday 3 February 2017 at 4.00pm

021 362 778 warwick.searle@cbre.co.nz

THE ADDRESS FOR RURAL REAL ESTATE Stay up-to-date with the real estate market.

2087RE

farmersweekly.co.nz/realestate

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – December 12, 2016

SOUTHLAND

SOUTHERN WIDE REAL ESTATE

CORRIEDALE DAIRY FARM

Riverton, 521 Orepuki Riverton Highway

109ha dairy farm at Tihaka with extra 20ha lease, currently running 340 cows and 80 RI production steadily increasing with last season at 135,000kg ms, 36-aside herringbone shed with milphos plant, large new 6-bay implement/calf rearing shed.

For Sale $3,150,000 View: By appointment www.harcourts.co.nz/IV34785

SUBJECT TO SURVEY 257 HA

Two x 3-bedroom homes and normal array of farm buildings.

187 MCNALLY ROAD, CORRIEDALE, OAMARU Murray Jackson P 03 214 4080 M 021 754 417 E murray@harcourtsinv.co.nz

HOLMWOOD REAL ESTATE Licensed Agent REAA 2008

LK0085011

Gravity water to all 60 paddocks and subdivided by 2 -wire electrics. Stock and Fonterra shares available at valuation.

$7.4 MILLION + GST (IF ANY)

Invercargill

• • • •

Opportunity to purchase a well-improved dairy unit of good scale Situated in a strong and healthy farming district, gently rolling to steeper faces Attributes of strong infrastructure, being irrigated and having quality soils Well located within 20km of Oamaru

LK0084952

Dairy Farm with Ocean Views and Beach Front

Call Sole Agents to inspect. 255 Thames Street Oamaru 9444 p 03 434 7422

Web Ref SWDR1049

JOHN FAULKS M: 0274 525 800

BARRY MEIKLE M: 0274 365 131

Large scale North Island dairy operation

INSTRUCTIONS FROM THE BANK

The portfolio of farmland owned by the group and which is available for acquisition comprises a 707 effective ha dry stock unit located just outside of Rotorua, a 230 effective ha dairy farm situated at Reporoa, six contiguous units of 2,135 effective ha at Tokoroa, two contiguous units of 960 effective ha near Taupo and three contiguous units of 682 effective ha in the Hawke’s Bay. The vendors are seeking offers from potential purchasers for a controlling stake or 100% of the company’s shares, or 100% of its assets from potential investors by 4pm Friday 23 December 2016.

Contact PwC Advisory Services for further details.

• Total area 356 hectares with 127 hectares effective dairy platform balance rough grazing and bush • Milking 350 mixed-aged cows, projected production 115,000kg m/s (OAD) • Two homes, with an excellent array of farm buildings • 24-aside herringbone shed, new plant and effluent system • Small quarry leased out showing excellent returns • Irrigation potential • Fonterra supply DEADLINE SALE CLOSING 4PM TUESDAY 31st JANUARY 2017 – PRIOR OFFERS CONSIDERED Martin Jack 03 789 8881, 027 246 7762

Peter Evans 03 543 8599, 027 224 9798

E: dairyopportunity@nz.pwc.com T: 09 355 8723 LICENSED REAA 2008 PwC Advisory Services (Licensed under the REAA 2008)

LICENSED REAA 2008

LK0085232©

This is an opportunity to invest in one of the largest privately owned dairy operations in New Zealand. The offer comprises 12 dairy farms plus a dry stock unit in the heart of the North Island, covering over 5,800 ha of farmland (c.4,700 effective), with c.13,000 cows producing close to 4 million kgMS annually.

MURCHISON

IRRIGATED DAIRY UNIT - VALUE FOR MONEY & SET UP FOR INVESTORS 228 Battersea Road, Greytown, South Wairarapa

214 hectares For Sale www.nzr.nz/W014

This attractive dairy unit is located on Battersea Road five minutes drive south east of Greytown. There are approximately 214 ha (six titles) freehold in total, with Blair Stevens AREINZ around 196 ha being used as milking platform - almost all irrigated with K-line. The fertility is impressive with the most recent soil test indicating fertility levels for pH 06 370 9199 | 027 527 7007 blair@nzr.nz at 5.88 and Olsen P at 36.8 (averages). The whole farm (but 2 hectares) has been re grassed at least once in the last 11 years. The farm is very well planted with numerous attractive shelter belts. Milking around 450 cows at peak (100 milked through) averaging 500 kg MS/cow the farms production budget is around 225,000- NZR Real Estate Limited | Licensed REAA 2008 230,000kgMS. Bought in feed is targeted to be around 10% of the diet with an in shed feeder helping deliver 2 kg of barley grain per cow per day to Christmas. Historically the unit has produced in excess of 280,000kgMS from 570 cows under a higher input system. Improvements include three well maintained houses, a 38 aside herringbone cowshed, 120 tonne silo with disc mill & 8 tonne holding silo, irrigation with six consents, 300 cow feed pad and plentiful shedding. Investors should note that Wairarapa dairy farms offer exceptional value for money in comparison to other dairying areas of New Zealand - why pay Taranaki, Canterbury or Waikato prices? The current managing equity partner is interested in staying on offering an opportunity for non-farming investors. Drone Video on website.

WAITAHINGA 1371 Rangitatatau East Road, Paparangi This attractive 5000 su hill country breeding unit is superbly located only 25 mins from Wanganui that possesses beautiful big views towards the coast and beyond. Contour consists of predominantly medium to steeper hill country along with approx. 100 ha of undulating cultivatable country. Features include excellent abundant natural water, large seams of metal shell rock ideal for tracking and top conventional fencing throughout. Infrastructure includes a 5-stand wool shed / covered yards, cattle yards and a 1950´s 3-bedroom home. The long native bush boundary provides abundant fallow deer / pigs for the avid hunter. A property like this could ideally be run in conjunction with a bee keeping / hunting enterprise. Call today to book an inspection to view. • Open days 16th December 1pm 2016 and 13th January 1pm 2017 • Please report at the woolshed at 1pm sharp with your own 4x4 bike and helmet.

702 hectares Tender (unless sold prior) www.nzr.nz/nzrr184 Tender closes 26th January 2017 4pm 1 Goldfinch Street, Ohakune Jamie Proude 06 385 4466 | 027 448 5162 jamie@nzr.nz NZR Central Ltd | Licensed REAA 2008

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – December 12, 2016

For Sale Bay Of Plenty

NEW LISTING

Paradise Valley 266 Hectares Tender

Closing 12pm, Friday 20 January 2016

Contact Phil Badger 027 357 5704 Proven Performer Just Minutes From Town. 211 hectares effective grazing land (more or less) and effortlessly grazing 370 dairy heifers. 14.5 hectares (more or less) of mature pinus radiata ready to harvest. There is a well-presented Lockwood home nestled amongst large mature trees in a very private setting. The property is in three titles and the options are plentiful. Whether you intend to farm, trout fish, or go hunting, this property has it all. Call for open day details. (unless sold by private treaty) | Property ID RT1009

North Otago Oamaru 192 Hectares

Otago | Taieri Plains

Deadline Sale

183 Hectares Meadowbank Farm. This is an excellent dairy farm situated just 6km from Mosgiel and 24km to Dunedin City. Providing a full complement of improvements which include a main homestead of four bedrooms, three bedroom versatile workers house, 40 aside herringbone shed, woolshed and covered yards for calf rearing, lock up workshop, implement shed, two haybarns and cattle yards. Well maintained fertiliser and regrassing program, milking 630 cows from 225 hectare milking platform (50 hectares leased), three year average production 259,566kgMS (50/50 share milked). A tidy farm with great location, all flat contour and semi self contained with 160 - 200 cows wintered on. | Property ID DU2472

Offers Invited

Closing 12pm, Friday 3 February 2017 (unless sold prior)

On or before Thursday 9 February 2017

Inspection

Contact

By appointment

Merv Dalziel 027 439 5823

Contact Craig Bates 027 489 4361

Licensed under REAA 2008

RURAL Office 0800 FOR LAND

Property Brokers Limited Licensed REAA 2008

Award winning dairy

WEB ID PR52888 BY EKETAHUNA 54 Morgans Road View By Appointment 117ha dairy farm supported by 26ha nearby, both properties under 10km south of Eketahuna & 25km Jared Brock north of Masterton in a summersafe area. 100ha Mobile 027 449 5496 platform currently milking 240 cows for a 3yr average Office 06 376 4823 of approx 100kgMS. A well presented property & Home 06 376 6341 jared@propertybrokers.co.nz worthy of its 2011 Horizons Ballance Farm Environment Awards. Infrastructure is under 10yrs old Phil Wilson including a 26 aside HB shed, 250 cow wintering barn, Mobile 021 518 660 effluent system & 9 bay calf rearing shed with a fully Office 06 376 5478 Home 06 376 7238 refurbished 4 bedroom, 2 bathroom home. philw@propertybrokers.co.nz

www.propertybrokers.co.nz

NEGOTIATION

4 2 2

Irrigation/Location. ‘Taipo Park’ offers an opportunity to purchase a reliable farm with cost effective water, irrigated via pivot, K-line and guns. Strong soils with a mixture of Waiareka Complex Easy Rolling and Timaru Silt Loams producing high yielding crops and above average stock performance. Improvements include a large four bedroom home, two large closed in implement sheds, woolshed with covered yards, 5-bay hay barn, plus various other sheds and new cattle yards. | Property ID TU10880

RURAL | LIFESTYLE | RESIDENTIAL

FINAL NOTICE

Prime Location - Spoilt For Choice Situated just off State Highway One, 4km from Putaruru this 57.7111ha flat to gentle rolling dairy farm with the odd sidling would lend itself to many different uses. Grow your own maize, run the young stock or carry on as a dairy farm. Buildings include two hay barns, enclosed calf shed, implement shed, old piggery and a solid three bedroom brick home. What a great opportunity here.

Licenced under REAA 2008

AUCTION

Putaruru

Owner - Operator Opportunity

North Waikato

AUCTION

• Attractive 83 hectare one man farm • Good contour, 85% mowable - on two titles • 20 aside herringbone dairy, older home, weeping wall effluent • Sound other buildings, good fencing and races • Serious seller would like pre-xmas sale Don’t miss the chance to purchase at an affordable level as the payout increases!

AUCTION

(Unless Sold Prior) 11.00am, Thursday, 15 December, NI Kindergarten Conference Centre, 6 Glenshea St, Putaruru

(Unless Sold Prior), 11am, Mon, 19 Dec PGGWRE, 87 Duke St, Cambridge OPEN DAY 12-1pm, Tue, 13 Dec 114 PUKEKAPIA ROAD

www.pggwre.co.nz ID: HAM25009

www.pggwre.co.nz ID: PUT24835

Richard Leach B 07 882 1485 M 027 472 7785

John Sisley M 027 475 9808 Jo Dennis M 0276 573 310

pggwre.co.nz

Employment SHAREMILKER/CONTRACT MILKER – GOLD CREEK

Dairy Grazing Position We are looking for someone to manage a medium sized (3500su) drystock property,

GREAT OPPORTUNITIES…. BE IN EARLY

• 640 cows • Established and proven farm performance • Opportunity to lead with confidence

20km outside of Waihi. The farm is well set up with new yards and a great home. You will have sole responsibility for the day-to-day management of the farm and LK0085076©

relationships with dairy grazing clients. Experience with raising dairy heifers and intensive pasture management is essential. Applicants for this position should have NZ residency or a valid NZ work visa. Please send your CV to

corofarms@gmail.com or call 027 336 6031

Position on lowland Livestock Farm

There aren’t many farming jobs where you know exactly where your milk is going to end up… but we’ve got some…. So, if you are proud of the work that you do, proud of the quality of the product that you produce and proud to be part of a food production process where the consumer knows New Zealand produces great milk then take a look at these opportunities that we have coming up.

Gold Creek Farm Limited Partnership is situated close to Gore and is an established part of the MyFarm portfolio. As a result we know exactly what is needed to make this farm hum and continue to grow returns for the shareholders.

Theland Tahi Farm Group is the dairy brand for Dakang, an international and integrated food business that sources quality products from around the world for supermarkets in Asia. We are looking for great people to join our farm teams in the Central Plateau / Reporoa region of New Zealand.

We’re looking for an experienced operator who is ready to take on a role with significant farm and people leadership components. You need to be professional in both your farm and business management and able to work within a corporate setting.

Most positions will start on 1 June 2017 and what’s important to us is being able to offer you a quality farm career and our customers a quality NZ product. And what makes these roles different is that close association with the consumer. This means:

Gold Creek Farm Limited Partnership has a 228ha effective milking platform with a centrally located, 40-aside herringbone shed. On offer is the opportunity to be exposed to good business practices whilst building your business in one of New Zealand’s most progressive dairy environments. Good housing, excellent calf rearing and storage facilities and a well set up farm are the other components that make this role an attractive business proposition. Interested? Log onto www.no8hr.co.nz (Ref 8HR800) for more information and to apply. Applications close 08/01/2017.

Scottish Highlands

• there will be regular visitors to your farm • you will get to understand more about the milk supply chain • you will be part of a business that invests in the development of people both onfarm and through its ‘Dairy Academy’ • this is more than ‘just a job’ this is a career where what everyone does every day matters • you’ll be in a business with a global perspective So whether you’re at the start of your career, are doing something else and want to explore dairy farming as an alternative, or you’re already an experienced farmer and looking for a new opportunity, register your interest with us today at www.no8hr.co.nz (Ref#8HR801) if this opportunity sounds like you so that we can all be ahead of the game for next season.

www.no8hr.co.nz | ph: 07-870-4901

Based at Fearn our operation involves cereal crops, 4500 breeding ewes and 250 beef cows over various sites in Easter Ross

RUN OFF YOUR FEET?

and Sutherland.

Advertise your vacancy in The NZ Farmers Weekly

We are looking for someone who will

Phone Debbie Brown 0800 85 25 80 or email classifieds@nzx.com

complement our current team; ideally

Classifieds 0800 85 25 80

they will have decent machinery, fencing LK0085218©

and maintenance skills and be happy working with livestock. The job will have plenty variation with sensible hours and training if required. Sense of humour and a the ability to work as part of a team is essential.

Modern accommodation and an attractive package await the successful applicant.

ANIMAL HANDLING FLY OR LICE problem? Electrodip - The magic eye sheepjetter since 1989 with unique self adjusting sides. Incredible chemical and time savings with proven effectiveness. Phone 07 573 8512 w w w. e l e c t r o d i p . c o m

ANIMAL HEALTH

www.fearnfarm.com

www.drench.co.nz farmer owned, very competitive prices. Phone 0800 4 DRENCH (437 362).

Apply with CV to info@fearnfarm.com

ANIMAL SUPPLEMENTS

AGRICULTURAL CONTRACTING SERVICES MANAGER We’re looking for someone who has a passion for agriculture, all aspects of arable cropping and agronomy.

APPLE CIDER VINEGAR, GARLIC & HONEY. 200L - $450 or 1000L - $2000 excl. with FREE DELIVERY from Black Type Minerals Ltd www.blacktypeminerals. co.nz

ATTENTION FARMERS

To be suited for this role you will: 1. Have worked for agricultural contracting and farming operations.

www.gibb-gro.co.nz GROWTH PROMOTANT $5.85 per hectare + GST delivered Brian Mace 0274 389 822 07 571 0336 brianmace@xtra.co.nz

2. Have extensive experience with machinery, cropping and agronomy preferably with tertiary qualifications in these fields. 3. Be customer focused to deliver quality service on time.

CONTRACTORS GORSE SPRAYING SCRUB CUTTING. 30 years experience. Blowers, gun and hose. No job too big. Camp out teams. Travel anywhere if job big enough. Phone Dave 06 375 8032. EXPERIENCED HAY RUNNERS available in Rodney and Auckland. Phone 027 284 6636. Nicola.

DOGS FOR SALE WORKING BORDER COLLIE, long haired, b&w female. 3 years old. Under basic command. Friendly, good nature. $1000. Phone 027 271 4732. Evenings. FORTY HUNTAWAY, HEADING and Handy dogs. $500-$2500. Deliverable. 07 315 5553. Mike Hughes. 6-YEAR-OLD Huntaway bitch. Very handy dog under good command. Needs to slow down and go to a smaller block. $1500. Phone Aaron 027 313 3284. Evenings. BEARDIE HUNTAWAY pups. 3 months, two vaccinations, $450, Phone 06 863 9815.

www.no8hr.co.nz | ph: 07-870-4901

Classifieds FERTILISER

DOGS FOR SALE ONE YOUNG DOG ready to start. Good bark. Phone 06 388 0212. BRIAN BURKE, NZ Champ 1984 and 5 times NZ Champ finalist, available to train your working dog. In three weeks he will transform your heading dog into a productive asset for the farm. Contact Brian 06 343 9561 for further details and pricing (heading dogs only).

DOGS WANTED HEADING, HUNTAWAY, handy, backing dogs or bitches, 2-6 years. Top money paid. Phone Ginger Timms 03 202 5590 or 027 289 7615.

DOLOMITE, NZ’s finest Magnesium fertiliser. Bio-Gro certified, bulk or bagged. 0800 436 566.

FOR SALE Christmas Specials Buy now for Christmas www.thesocklady.co.nz

DOG/PET FOOD. Lamb/ Beef and chicken products. All natural - raw - no preservatives or additives. NOSLOC PRODUCTS. Ex-freezer Te Kuiti. For information and prices www.nosloc.com or phone 07 878 6868.

NORTH ISLAND BUYING TRIP 17/12/16. Ca$h buyer! Quick $ale! No-one buys or pays more! 07 315 5553. Mike Hughes. HUNTAWAY WANTED, fully broken in, good in paddock and hill. Phone 027 774 6903. 12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195.

Advertise in the NZ Farmers Weekly

5. You’ll be able to advise farmers on their contracting needs, have excellent organisational and planning skills with attention to detail, be able to identify bottlenecks in work flow and organise resources around them, and you will be willing to learn.

Name:

6. Strong leadership, communication and people/management skills will also be important.

Advert to read:

WANTED

NATIVE FOREST FOR MILLING also Macrocarpa and Red Gum, New Zealand wide. We can arrange permits and plans. Also after milled timber to purchase. NEW ZEALAND NATIVE TIMBER SUPPLIERS (WGTN) LIMITED 04 293 2097 Richard.

GOATS WANTED FERAL GOATS WANTED. All head counted, payment on pick-up, pick-up within 24hours. Prices based on works schedule. Experienced musterers available. Phone Bill and Vicky Le Feuvre 07 893 8916. GOATS WANTED. All weights. All breeds. Prompt service. Payment on pick up. My on farm prices will not be beaten. Phone David Hutchings 07 895 8845 or 0274 519 249. Feral goats mustered on a 50/50 share basis.

GRAZING AVAILABLE GRAZING AVAILABLE for 140+ cattle. Bulls optional. Located south of Kaitaia. Phone 09 408 4110 or 021 083 04279. GRAZING OFFERED for up to 150 hfrs, close to Napier. 20 years experience. 400 baleage on hand with irrigation option. References available. Phone 06 874 3764.

GRAZING AVAILABLE WHANGAREI AREA. Easy rolling land. Trough water. Phone 09 459 1383 or 021 043 1655.

LIVESTOCK FOR SALE WILTSHIRE DORPER X lambs. Excellent for hogget mating or lifestyle blocks. No shearing required. Very fertile. All rams born twins. Phone Greg 06 388 7555.

STOCK FEED MOISTURE METERS Hay, Silage dry matter, grain. www.moisturemeters.co.nz 0800 213 343.

WANTED TO BUY WILD OR PROBLEM horses off stations in HB / East Coast. Wanted to buy to break-in to ride. Anything considered. Phone 027 955 8874.

WORK WANTED E X P E R I E N C E D SHEPHERD GENERAL. Hard working and reliable with three good dogs. Phone 027 514 4662.

T HI NK P R E B U I L T

$2.00 + GST per word - Please print clearly Phone:

Address: Email:

JH0085103©

Heading:

Email Mark Daniels at markdaniels@actioncoach.com John Austin Ltd, RD 5, Te Awamutu

FORESTRY

CLASSIFIEDS

4. Be willing to commit to the seasonal demands of the Agricultural Industry.

We are long time market leaders in this industry, built through trust and quality service with cutting edge technology.

THE NEW ZEALAND FARMERS WEEKLY – December 12, 2016

LK0085189©

Return this form either by fax to 06 323 7101 Attention Debbie Brown Post to NZX Agri Classifieds, PO Box 529, Feilding 4740 by 12pm Wednesday or Freephone 0800 85 25 80

NEW HOMES

SOLID – PRACTICAL WELL INSULATED – AFFORDABLE Our homes are built using the same materials & quality as an onsite build. Easily transported to almost anywhere in the North Island. Plans range from one bedroom to four bedroom First Home – Farm House Investment – Beach Bach

Call or email us for your free copy of our plans Email: info@ezylinehomes.co.nz Phone: 07 572 0230 Web: www.ezylinehomes.co.nz

LK0084975©

jobs.farmersweekly.co.nz 0800 85 25 80

LK0085119©

THE NEW ZEALAND FARMERS WEEKLY – December 12, 2016

Livestock

PINE PARK

Terminals

• SUFFOLK • SUFFTEX • • SUFFOLK X TEXEL POLL DORSET • • TEXEL X POLL DORSET • • 700 Ewes • SIL Recorded • Carcass Scanned •

LK0085083©

He first writes, ‘Dear baby Jesus, I have been a good boy the whole year, so I want a new…’ He looks at it, screws it up and throws it away.

CONTACT: EDWARD SHERRIFF 06 327 6591

He goes into his mother’s room, takes a statue of the Virgin Mary, and hides it in his closet. He takes another piece of paper and writes, ‘Dear baby Jesus. If you ever want to see your mother again…’

SALE TALK

The son of a mafia boss sits at his desk writing a Christmas wish list.

Livestock 0800 85 25 80

STOCK REQUIRED

1 YR R ANG ANG & ANG x STEERS TEERS 350-‐400kgs 350-‐400kgs 200-‐370kgs 1 1 Y R H EIFERS FRIESIAN BULL CALVES 25-‐33kgs M/SEX M/SEX TERMINAL LAMBS AMBS STOCK OR SALE 350kgs 1 YR FFRIESIAN BULLS 1 YR FRIESIAN BULLS 370-‐420kgs 1 2 YR ANGUS STEERS 500kgs 500kgs RANGITAIKI STATION STATION OOn n Farm Ewe Sale ale

Export Contract

Late December Delivery Early January Delivery

2015 Born Friesian Heifers (F12+)

$1450 Gross

North Island

10,000 Ewes -‐ 7 February February 2017 017

Wayne Doran 027 493 8957 Luke McBride 027 304 0533

South Island

www.dyerlivestock.co.nz

Richard Harley 021 765 430 Greg Collins 027 481 9772

Ross Dyer 0274 274 333 333 381

Store lambs for sale

PROGRESSIVE LIVESTOCK LTD

LK0085243©

Terminal-sired store lambs for sale. Weaned early December, large lines. Drafted into lines to suit buyers. Southern Hawke’s Bay location. Weaner dairy beef bulls also available Phone Andrew Leggett 022 038 3216

YOU CAN BE CERTAIN TEXEL WILL DELIVER THEIR UNIQUE AND VERY DISTINCTIVE CHARACTERISTICS BECAUSE … • First terminal sire breed to have a National Sire Reference Scheme • First terminal sire breed to put its top ram lambs through the CAT scan on an annual basis • First terminal sire breed to develop its own Lean Growth Index to reflect todays market signals • First terminal sire breed to catalogue full production records at its National ram sale • First terminal sire breed to make it mandatory to muscle scan as lambs before April 30.

216 Xbred (Frsn/FrsnX/Jrsy) cows BW 89 PW 117 DTC 12/7 Decades of breeding, 75% 2-5 years, great type and confirmation. $1800. Dave Anderson 027 498 1201

LK0083843©

PINE PARK

www.carrfieldslivestock.co.nz

www.nzsheep.co.nz/texel

64 I/C heifers BW126 PW138 DTC 25/8 well grown Can stay on existing grazing until required. $1450. Immediate delivery. Paul Kane 027 286 9279

• FE TOLERANT COOPWORTHS • TEXEL X COOPWORTHS •FE ROMNEY X COOPWORTHS

More stock available on our website or contact National Dairy Coordinator Paul Kane Ph 027 286 9279 – paul.kane@carrfields.co.nz

LK0085230©

65 Autumn calving Frsn/FrsnX C/O cows BW76 PW125 DTC 7/4 to Hrfd, good young cows, 5+ condition score. $1750. Val Ditchfield 027 573 7480

LK0085082©

200 KiwiX cows BW 67 PW85 DTC 8/7 to kiwiX Fertile herd with 4-6% MT rate, 75% due in first 3 weeks. $1670. Paul Collins 027 304 8994

CONTACT: EDWARD SHERRIFF 06 327 6591

760 Friesian Crossbred cows BW 68/40, PW81/52, 90% Calving 1/8/2017 AB 5 weeks tailed Angus bulls 414 M/S average rotary shed Top well-structured herd $2,150

Contact: Chris Johnston 027 2574 091

Meaty Muscle Makes Money

• • • • • • •

156 Friesian, Jersey and Crossbred cows BW 82, PW97, 96% Calving 14/7/2017 AB 3 weeks 410 M/S average herringbone shed Predominately Crossbred Herd $2,100

Contact: Stephen Weck 027 4551 106

Call Hugh & Helen Winder on 0800 328 877 1808 Makino Rd, RD 9, Feilding 4779 Ph: 06 328 8710 Fax: 06 328 8712 Mob: 027 226 5784 Email: fairleatexels@xtra.co.nz

*Suftex first-cross rams also available

LK0084964©

BRED FOR CARCASS, WOOL AND FERTILITY RIGOROUSLY SELECTED IN A FRINGE MERINO ENVIRONMENT 19 -21 ADULT MICRON Simon & Thomas Harvey 03 575 7361 merinos@glenorkney.co.nz www.glenorkney.co.nz

FORWARD HERDS FOR SALE

• • • • • • •

• 650 EWES • SIL RECORDED • CARCASS SCANNED

Fairlea Texels

GLEN ORKNEY MERINOS

livestock@farmlands.co.nz

• • • • • • •

160 Friesian, Jersey and Crossbred cows BW 93, PW 107, 94% Calving 16/7/2017 AB 3 weeks 405 M/S Top little herd producing well. $2,150

Contact: Stephen Weck 027 4551 106

MARKET SNAPSHOT

IN PARTNERSHIP WITH

Grain & Feed

MILK PRICE FORECAST ($/KGMS) 2016-17

AGRIHQ 2016-17

6.00

6.24

AS OF 18/11/2016

AS OF 08/11/2016

Last week

Prior week

Last year

Canterbury (NZ$/t)

What are the AgriHQ Milk Prices? The AgriHQ Seasonal milk price is calculated using GDT results and NZX Dairy Futures to give a full season price. The AgriHQ Spot milk price is an indicative price based solely on the prices from the most recent GDT event. To try this using your own figures go to www.agrihq.co.nz/toolbox

WMP GDT PRICES AND NZX FUTURES

5.55

5.30

327

360

NI mutton (20kg)

2.90

2.85

279

308

SI lamb (17kg)

5.35

5.45

5.25

Feed Barley

265

264

292

SI mutton (20kg)

2.85

2.75

2.65

233

Export markets (NZ$/kg) 7.62

7.74

7.63

230

227

UK CKT lamb leg

Maize Grain

360

355

PKE

224

223

233

* Domestic grain prices are grower bids delivered to the nearest store or mill. PKE and fertiliser prices are ex-store. Australian prices are landed in Auckland.

6.5

Last week

Prior week

Last year

Wheat - Nearest

199

192

265

Corn - Nearest

191

184

220

5.0

CBOT futures (NZ$/t)

4.5

South Island 1 7kg lamb

6.5 6.0

289

3000

ASW Wheat

269

285

366

2500

Feed Wheat

204

268

335

2000

Feed Barley

234

251

326

1500 Feb 16 May 16 Aug 16 C2 Fonterra WMP

PKE (US$/t) 112

Ex-Malaysia

302

379

NZ venison 60kg stag

5.5

600

$/kg

APW Wheat

5.0

500

4.5 400

300 4.0 Oct Oct

Dec Dec

Prior week

vs 4 weeks ago

WMP

3660

3520

3460

SMP

2660

2650

AMF

5450

Butter

4375

Last week

Prior week

Last year

Last week

Prior week

Last year

2560

Urea

460

575

29 micron

6.80

9.15

5400

5220

Super

310

330

35 micron

4.00

4.10

5.80

4375

4350

DAP

875

39 micron

3.90

4.50

5.55

784

CANTERBURY FEED PRICES

35 micron wool price

6.0

3500 3250 Mar

Apr

May

Jun

350 250 150 Dec 12

4 weeks ago

Dec 13 Feed barley

Dec 14

Dec 15 Dec 16 PKE spot

9655

S&P/FW AG EQUITY

11258

S&P/NZX 50 INDEX

6916

S&P/NZX 10 INDEX

6998

Company

5.0

500

4.5 400

300 4.0 Oct Oct

Dec Dec

5‐yr ave

Feb Feb

AprApr Last yr

JunJun

AugAug This yr

Dollar Watch

Not a Grinch ruining Christmas Top 10 by Market Cap WorkSafe NZ urges businesses to keep workers safe but says it is not the Christmas Grinch that some people believe it to be. The regulator of the new Health and Safety at Work Act said there were laughable myths including sweets banned from parades and that Christmas decorations be put up by a “qualified” person and the task being banned by some companies for “health and safety reasons. And recently new myths had arisen that employers might be liable for dance floor accidents at end of year work functions and that any function where a drink or two of alcohol was involved brought about a whole heap of compliance that made functions impossible to run. WorkSafe responded by saying part of the business community had got completely the wrong idea about health and safety. “It’s about keeping an eye on risks and if there are real risks, making sure they are dealt with appropriately. “The fact is that neither the Health and Safety at Work Act nor WorkSafe as the regulator have any interest in banning things. “As for tossing a few sweets into the audience at a parade or a panto it’s very much a case of ‘Oh yes you can’.”

NZ venison 60kg stag

5.5

600

c/k kg (net)

3750

$/kg

450 NZ$/t

US$/t

4000

S&P/FW PRIMARY SECTOR

This yr

(NZ$/kg)

WMP FUTURES - VS FOUR WEEKS AGO

Latest price

Last yr

AugAug

NZ average (NZ$/t)

6.5

Feb

JunJun

WOOL

* price as at close of business on Thursday

Jan

AprApr

FERTILISER

Last price*

3000

Feb Feb

5‐yr ave

NZX DAIRY FUTURES (US$/T) Nearby contract

6.0 5.5

INTERNATIONAL

3500

Nov 16 Feb 17 NZX WMP Futures

North Island 17kg lamb

7.0

Australia (NZ$/t)

4000

Last year

5.40

Feed Wheat

Waikato (NZ$/t)

Oct 16 AgriHQ Seasonal

Last week Prior week

NI lamb (17kg)

Milling Wheat

PKE

Jul 16 AgriHQ Spot Fonterra forecast

Slaughter price (NZ$/kg)

c/kkg (net)

$/kgMS

MILK PRICE COMPARISON

US$/t

SHEEP MEAT

DOMESTIC

FONTERRA 2016-17

8 7 6 5 4 3 Apr 16

Sheep

$/kg

Dairy

YTD High

YTD Low

Auckland International Airport Limited

6.30

7.75

5.21

Meridian Energy Limited

10.55

11.14

6.56

Spark New Zealand Limited Fletcher Building Limited Fisher & Paykel Healthcare Corporation Ltd Ryman Healthcare Limited Mighty River Power Limited (NS) Contact Energy Limited Vector Limited Z Energy Limited

2.60 3.54 8.25 8.48 2.97 4.70 3.18 7.24

3.07 4.01 10.93 9.86 3.34 5.49 3.55 8.90

2.21 3.05 8.13 7.78 2.53 4.35 3.06 5.82

Company

YTD High

YTD Low

The a2 Milk Company Limited

2.440

2.610

1.050

Cavalier Corporation Limited

0.800

0.950

0.520

Comvita Limited

9.000

13.000

8.150

Delegat Group Limited

5.760

6.400

5.500

Foley Family Wines Limited

1.500

1.700

1.300

Fonterra Shareholders' Fund (NS)

5.920

6.120

5.310

Livestock Improvement Corporation Ltd (NS)

2.600

4.100

2.100

PGG Wrightson Limited

0.475

0.540

0.380

Sanford Limited

6.680

6.800

5.400

Scales Corporation Limited

3.380

3.550

2.160

SeaDragon Limited

0.008

0.016

0.008

Seeka Kiwifruit Industries Limited

4.490

4.850

3.280

Tegel Group Holdings Limited

1.580

1.800

1.440

S&P/FW Primary Sector

9655

9881

8021

S&P/FW Agriculture Equity

11258

11663

8987

S&P/NZX 50 Index

6916

7571

5934

A STRONG and improving This Prior Last NZD vs New Zealand economy week week year is pushing the kiwi dollar USD 0.7177 0.7069 0.6750 higher while the United EUR 0.6767 0.6642 0.6170 States dollar takes a breather after solid gains AUD 0.9630 0.9543 0.9263 since the presidential GBP 0.5707 0.5623 0.4454 election. Correct as of 9am last Friday The big dollar needed a pause but as the US economy strengthens further and interest rates rise and the Trump spending plan comes through, it will take-off again, Westpac Bank market strategist Imre Speizer said. That could be in the second quarter of next year. Till then the kiwi has the potential to move into the US$0.72 to 0.74 range. Once the US dollar moves higher again, he sees the kiwi back about the 0.70 level. Treasury reports highlighted the strength of the domestic economy and Reserve Bank governor Graeme Wheeler indicated the OCR level was on hold for a long time now after recent cuts, Speizer said. NZ was looking good to the rest of the world, leading to good buying of the kiwi. If there were risks to the economy, they were from offshore. The kiwi has been grinding higher against the euro, at €0.6767 cents on Friday, and could go further towards €0.70 early next year as the ECB extends its money-printing and uncertainty continues around the impact of elections in major countries. UK sterling has picked up well from the lows hit after the Brexit vote at was at £0.5707 on Friday but Speizer expects weakness as the actual process is triggered next year. The kiwi could go above £0.61.

S&P/NZX 10 Index

6998

7805

5890

Alan Williams

Listed Agri Shares

5pm, close of market, Thursday

Markets

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016

NI SLAUGHTER STEER

SI SLAUGHTER MUTTON

35 MICRON WOOL

($/KG)

525-575KG PRIME STEERS AT CANTERBURY PARK

($/KG)

($/KGLW)

2.85

5.45

4.00

Cattle & Deer Last week

Prior week

Last year

NI Steer (300kg)

5.45

5.50

NI Bull (300kg)

5.30

5.45

NI Cow (200kg)

4.00

4.20

SI Steer (300kg)

5.20

5.30

SI Bull (300kg)

4.70

4.75

SI Cow (200kg)

3.80

US imported 95CL bull

6.07

6.29

6.45

US domestic 90CL cow

5.83

5.91

6.38

Export markets (NZ$/kg)

North Island steer (300kg)

6.5 $/kg

6.0 5.5 5.0 4.5 4.0

South Island steer (300kg) 6.0

c/k kg (net) $/kg

5.5

NZ venison 60kg stag

5.0 600 4.5 500

400 4.0 300 3.5

Oct Oct

Dec Dec

Feb Feb

5‐yr ave

Apr Apr

Jun Jun

Last yr

Aug Aug This yr

VENISON Slaughter price (NZ$/kg)

Last week Prior week

Last year

NI Stag (60kg)

8.10

7.25

NI Hind (50kg)

8.00

7.15

SI Stag (60kg)

8.10

7.25

SI Hind (50kg)

8.00

7.15

New Zealand venison (60kg Stag)

9.5

c/k kg (net) $/kg

8.5

NZ venison 60kg stag

600

7.5

500

6.5 400

300

5.5 Oct

Oct

Dec Dec 5‐yr ave

Feb Feb

Apr Apr Last yr

$3.00-$3.12/kg

$500-$600

2-year Angus steers, 522-582kg, at Stortford Lodge

Frieisan bull calves, 108-140kg, at Stratford Dairy Beef Sale

Record numbers at Temuka

BEEF Slaughter price (NZ$/kg)

2.97

high lights

Jun Jun

Aug Aug This yr

record number of buyers registered for the Temuka Calf Sale last Thursday, as plenty of grass and changes to farm policies increases interest in the calves. Prices also reached record levels, with most trading $200-$245 above last year’s sale. NORTHLAND NORTHLAND With paddocks drying out and no older cattle sale the previous week, WELLSFORD offered up over 1000 store cattle last Monday. 1-year steers sold exceptionally well, while a number of lines of 2-year steers did not meet expectations and were passed in. Beef-Friesian cattle dominated the 2-year pens and had plenty of weight, with most lines over 500kgs. One line of straight Angus, 533kg, made $2.80/kg, with beef-Friesian of similar weight earning $2.68-$2.71/kg. Lighter Hereford-Friesian made $2.80-$2.90/kg. A big yarding of 300 1-year steers sold very well and again weights were mainly heavy, as the cattle mature. Beef-Friesian, 380-410kg, made $1115-$1245, and Hereford-Friesian, 270-330kg, $920-$1100. A small line of Friesian, 370-410kg, fetched $1005$1140. The heifer market came off the highs of late, though values were still pleasing. Beef-Friesian, 290-375kg, returned $805-$1050, and lesser quality Hereford-cross, 260-290kg, $785-$880. A bigger yarding of store cattle at KAIKOHE last Wednesday sold on a more subdued market than of late, as paddocks dry out. Prices were still good though, with vendor’s happy, PGG Wrightson agent Vaughan Vujcich reported. All the 2-year sections sold over a tight range with steers making $2.70$2.80/kg, bulls $2.70-$2.78/kg and heifers, $2.70-$2.75/kg. Most of the steers and heifers were beef-cross, with Friesian and Angus-cross sold in the bull pens. In the 1-year pens the top steers sold for $2.95-$3.10/kg with lighter lines up to $3.10-$3.35/kg. Autumn-born

Angus-cross returned $3.30-$3.40/kg. Friesian bulls sold well at $2.85-$3.00/ kg, with later born Simmental-cross trading up to $3.15-$3.30/kg. The heifer offering was very mixed, which was reflected in the prices. BeefFriesian lines were of mixed quality and sold for $2.68-$2.80/kg. Demand for weaners was again very strong and this market was the highlight. Friesian bulls, 100kg, made $480-$510, with autumn-born lines up to $650-$700. Lighter Hereford-Friesian sold for $455, while heifers fetched $400-$450. The cow market was also very well supported and heavy Friesian and beef lines made $2.00-$2.14/kg, medium $1.85-$1.92/kg, and light, $1.60-$1.70/kg. AUCKLAND AUCKLAND Stability in schedules and good grass growth factored in on a strong market at PUKEKOHE on Saturday, 3rd December, with one of the best markets recorded for the region. Top prime steers sold for $2.74$2.87/kg, putting the top line at $2040. They were outdone by the heifers however, with $3.05/kg paid for one line, while others traded at $2.71/ kg, with plainer types earning $2.63$2.74/kg. The strength continued into the store pens and grass demand pushed prices along. Plain 2-year steers made $2.72-$2.78/kg, and 1-year crossbred steers, $1060-$1230. Heifers sold for $895-$965. Weaners sold very well and medium steers traded at $590-$655, while lighter types earned $370-$590. The best of the heifers sold for $512$570, with very light lines making $410-$480. Boner cows sold for $1.80-$1.90/kg, and bulls, $2.75-$3.08/kg. COUNTIES COUNTIES A good drop of well-timed rain certainly didn’t harm the market for store cattle at TUAKAU last Thursday, Craig Chamberlain of Carrfields Livestock reported. A yarding of 780 store cattle was presented and most classes sold on a steady market. Prices for yearling

steers, however, may have been 4-5c/ kg stronger. Good 2-year and 30-month steers in the 500kg-plus weight range traded at $2.72-$2.83/kg, and 400-500kg, $2.80$3.10/kg. Heavier 18-month steers, 380-440kg, sold at $3.06-$3.24/kg, and 300-350kg, $3.17-$3.44/kg. Most steers in the 250-300kg range earned a similar rate, although lighter and lesser bred lots were discounted. The offering of older heifers included some nice exotic and Hereford-Friesian lots, and 380-440kg made $2.68-$2.80/kg, 310-360kg, $2.65-$2.72/kg and, 260-300kg, to $2.91/kg. About 560 prime steers, heifers, cows and bulls were yarded at last Wednesday’s sale, and the market remained firm. Good heavy steers, 650kg-plus, traded at $2.78-$2.85/ kg and medium lots, 550-650kg, $2.71-$2.78/kg. Lighter steers made $2.63-$2.75/kg. In the heifer section, heavy lots sold at $2.68-$2.81/kg, and medium $2.61-$2.73/kg. Prime cows traded at $2.08-$2.17/kg and heavy boners $1.77-$1.85/kg. Paddock buyers boosted the market for light to medium cows. Most medium lots fetched $1.77-$1.85/kg and lighter boners $1.46-$1.70/kg. The bull section included many ex-service bulls, with most selling at $2.50-$2.76/ kg. Prime lamb prices eased slightly at last Monday’s sale, where about 1500 ewes and lambs were on offer. The best of the heavy prime lambs sold up to $115, medium $104-$110, and light $85-$95. Heavy prime ewes sold up to $86, medium $65-$75 and light $40-$55.

BAY OF PLENTY BAY OF PLENTY With summer setting in and the end of year approaching, more vendors opted to offload at RANGIURU last Tuesday, pushing numbers up to 900. Younger cattle made up the bulk of the yarding, with 1-year steers, and weaner heifers and bulls coming out

Continued page 38

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Markets

38 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016 in force.Older cattle numbers were limited, and prime and 2-year steers mainly sold for $2.73-$2.80/ kg, while 2yr Hereford-Friesian heifers, 436-562kg, made $2.61$2.69/kg. It was a black and white affair in the 1-year steer pens where the lines were either beef-Friesian, or Friesian. Hereford-Friesian, 335-408kg, made $1030-$1270, and 273-300kg, $920-$1020. Friesian, 264-292kg, fetched $805-$890. Heifer numbers were small but mighty, and Hereford-Friesian, 270-335kg, made $880-$980, while Friesian bulls, 354-375kg, returned $1010-$1060. With no separate sale calendared weaner numbers were offered, and sold to current high values. Friesian bulls, 95-110kg, made $430-$455, and HerefordFriesian, 100-120kg, $470-$610. Hereford-Friesian heifers, 105120kg, sold for $445-$492, and 94-100kg, $320-$450. A few more boner cows came out and prices were firm, with better types trading at $1.83-$1.90/ kg, though a small number sold to $1.97-$2.07/kg. WAIKATO FRANKTON continued its consistent run last Wednesday, with throughput numbers similar to previous weeks, and prices mainly steady. The heifer market did ease, though to date prices have been so strong, the adjustment was not major. A sizeable yarding of older steers kicked off the sale, and 3-year Hereford-Friesian, 628-683kg, made $2.69-$2.75/kg, and 2-year, 467-604kg, $2.74-$2.78/kg. In the heifer pens prices eased, with most lines selling for $2.60-$2.70/kg for beef and beef-Friesian, regardless of weight. The 1-year steer pens included some nice lines of exotic and at 380-430kg, these made $1315$1455. Hereford-Friesian were mainly lighter types, 282-308kg, and returned $950-$1015. The heifer pens were dominated by Hereford-Friesian, and recorded heavier weights than the steers. Most were 305-348kg and sold for $955-$1060.

TARANAKI TARANAKI A very successful sale week at STRATFORD finished off with the dairy-beef weaner fair last Thursday, where numbers and prices were high, Stephen Sutton from New Zealand Farmers Livestock reported. A big cattle fair last Wednesday was well attended by both cattle and buyers, with 1000 selling on a strong grass market, mainly to Manawatu. Two and three-year steers consistently made $2.90$3.00/kg, with prime lines selling above schedule. Higher yielding lines of Angus and Charolais sold to $3.11-$3.19/kg. Heifers followed suit and sold to $2.75-$2.90/ kg, though again higher yielding Charolais made a premium at $2.96/kg. Yearling steers sold to another level with bids flying from the benches. The bigger number was easily absorbed, with most trading at $1000-$1200, and $3.20$3.50/kg common. The heifer market did not have the depth of the steers, but still sold at high levels. Angus and Angus-cross, 240-287kg, made $725-$1170, with most trading at $2.90-$3.02/kg. Expectations were high for the dairy-beef weaner sale held last Thursday, and they were fully-founded, with Friesian bull prices lifting $50 a head on the previous sale, and HerefordFriesian holding their value. Lighter Friesian bulls were more expensive on a cents-per-kilogram basis, with little separating prices for the light and heavy types. Friesian, 70-110kg, sold for $500$510, 113-130kg, $530-$565, and 131-160kg, $565-$640. HerefordFriesian sold to recent levels, with most 110-120kg and making $620-$670, while Angus-Friesian, 90-115kg, made $500-$545. Steers sold well, and Hereford-Friesian, 96-105kg, made $540-$600, and Angus-Friesian, 88-115kg, $405$545. A big yarding of heifers sold on a slightly firmer market, and Hereford-Friesian, 74-100kg made $325-$500, and 101-148kg, $510$530. POVERTY BAY POVERTY BAY The last cattle sale for 2016 at MATAWHERO was a lively affair, with plenty of buyers and high

prices recorded. The yarding of 970 mainly consisted of 2-year steers, and 1-year steers and heifers, and buyers travelled from around the North Island to secure lines, though the locals were hard to beat on the younger cattle. The 2-year steers sold to Waikato, with all lines over $1100, and Angus and Angus-cross, 415500kg, made $3.19-$3.27/kg, with most other lines over $3/kg. Angus and Angus-cross featured in the 1-year steer pens, and 345-380kg fetched $1170-$1280. A consignment of lighter exotic heifers sold well for what they were, and at 215-250kg, made $720-$830, while Charolais, Simmental and Simmental-cross, 270-350kg, returned $910-$1100. There was yet another lift in the number of store lambs available at MATAWHERO last week, however nearly all of these were lighter lines. The increase in light lamb numbers was not matched by an increase in interest, easing the market on these. Light male lambs were generally spread across $37$49, while similar ewe lambs made $35-$41. The market was steady on medium types. A large portion of these were males, making an average of $63-$66, though one line of ewe lambs made $63. There were no heavy lines. A handful of store ewes were available and sold to expectations, with a very good line the standout at $85.50. Prime pens were quiet, but still performed well. Heavier lambs were $86-$105, with more moderate lines at $70- $76.50. HAWKE’S BAY As coastal areas dry out more store lambs are being offloaded at STORTFORD LODGE, with the bulk of the yarding last Wednesday from Central Hawkes Bay coastal farms. A big yarding of cattle also featured, with traditional steers a highlight. Prime ewe volumes have peaked and the yarding last Monday was half the size of the previous week, with the shine also coming off prices. Heavy ewes softened to $76$91, as did medium to good types

at $62-$69. Light ewes held their value and most sold for $50-$56. There was very little to report on out of the lamb pens, with just 58 offered, which sold for $92-$100. A big yarding of prime cattle came from all corners of Hawkes Bay and sold in small lines, though quality was very good with Angus dominating most sections. Angus steers, 535kg, made $2.80/kg, with most other lines at $2.72-$2.78/kg. Angus heifers, 486-487kg, fetched $2.73-$2.80/kg, while forward stores made $2.70-$2.71/kg. Beef and exotic cows returned $2.06$2.15/kg. Store lamb numbers dropped slightly and extra buyers firmed the market. Most male lambs sold for $60-$77, with a lighter line earning $53. A light line of ewe lambs made $43, and a small heavy line, $76. The heavier end of the mixed sex yarding were all blackface and sold for $71-$86, with lighter types earning $32-$66. Just a small offering of ewes were penned and made works value at $40-$64. Manawatu and Central Hawkes Bay dominated a big store cattle sale and steer prices continued their strong run. Plenty of weight in the pens saw all 2-year steers sell over $1500, while all 1-year Angus steers sold over $1000. 2-year Angus, 507-583kg, sold for $3.00-$3.05/kg, with the better types in this range selling to $3.12-$3.16/kg. Angus & AngusHereford, 521-559kg, made $2.94$2.97/kg. 2-year heifer numbers were low but quality lines were included, with Angus & AngusHereford, 440-446kg, making $2.88/kg, and Hereford-Friesian, 415-460kg, $2.85-$2.89/kg. A big yarding of 400 1-year steers sold well and Angus weighed up to 400416kg, and made $1270-$1325, with the remainder earning $1060$1220. Hereford-cross, 244-362kg, returned $830-$1202. Heifer prices eased, though were still strong, and Angus, 249-326kg, fetched $815-$1045. Specially advertised cryptorchid store lambs were the main feature at DANNEVIRKE last Thursday, with 2100 offered, and they sold well and to expectations, PGG Wrightson agent Bjorn Andersen

reported. The cryptorchid lambs were gathered up from local stations, and made a decent sized yarding, with a further 1200 also offered. Most of the cryptorchid lambs were heavy types and averaged $72, with the range at $58-$83, while ram lambs traded at $66-$68. A sizeable yarding of mixed sex returned $40-$77, though averaged $71, with most forward types. One line of ewe lambs sold for $58. A small offering of breeding ewes sold just above works value at $89-$93, while nearly 700 prime ewes again sold to strong demand with prices steady at $42-$95, to average $62. Prime lamb numbers were low at 120, and sold for $73$106. MANAWATU MANAWATU For the second week running, yearling and weaner bulls featured at the RONGOTEA sale, and they continued to sell to high demand, New Zealand Farmers Livestock agent Darryl Harwood reported. A good selection of 2-year cattle were also offered, with the better quality lines well contested. Ex-service bulls are being offered and very heavy Hereford and Friesian made $2.58-$2.64/ kg, while better yielding, lighter Hereford returned $2.81/kg. Prices switched for 2-year beef steers, with the heavier lines selling to $2.82/kg, and 360-495kg, $2.55$2.64/kg, with 18-month HerefordFriesian, 404kg, earning $2.98/kg. Quality lines of heifers sold well, and up to $2.77-$2.84/kg for the better beef-Friesian and beefcross, though lesser crossbred lines made $2.18-$2.52/kg. The younger cattle were the main feature of the sale, and Hereford-Friesian steers, 297302kg, made $920-$935, and heifers, 250-321kg, $780-$1000. Friesian bulls came out in good numbers and sold to strong demand, with 362-490kg earning $1020-$1340, and 255-335kg, $930$1000. Demand for Jersey bulls was also solid and the top lines sold to $990, while crossbred, 265345kg, made $770-$935. Weaners quickly followed and Friesian bulls sold for $480-$550, Hereford-Friesian, $440-$550,

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Markets

crossbred, $340-$400, and Jersey, $310-$340. Hereford-Friesian heifers sold for $430-$500, while a line of Charolais, 112kg, made $500. A smaller offering of steers saw Hereford-Friesian, 105-107kg, make $570-$590. In the small pens, porkers sold for $117-$145 and weaner pigs, $95-$100. Two-tooth ewes made $69-$96, and mixed age, $31-$62. Lambs sold for $60-$80 for the better types, with lighter lines earning $40-$50. Ewe numbers have peaked at FEILDING and volumes dropped by half last Monday, though lamb numbers started to climb. A yarding of 1800 lambs sold on an easing market, with most trading at $90-$119, and store types earning $51-$88. A drop in ewe numbers kept the pressure on buyers, and heavy types firmed to $84-$96, and medium $64-$83. Lighter ewes remained steady at $40-$60. Another small yarding of cattle was mostly cows, and prices continued their strong run. Hereford-Friesian, 506-543kg, made $2.01-$2.10/kg, with Angus and Charolais-cross also selling up to these levels. Friesian sold in three distinctive ranges, with a heavy line of 657kg making $2.07/ kg, medium $1.88/kg, and light $1.74-$1.75/kg. Lamb numbers increased by another 1000 head at Friday’s store sale. to be over 8300 but the buying strength was up to the challenge and, almost surprisingly, lamb sale prices were firm to lifting. The top price was less than last week at $88 for 111 blackface lambs from Masterton but most of the better lambs traded in a reasonably tight but firm range of cents/kg. Where the lamb market did lift was for the lighter and longer term lambs which recovered all last week’s ease and some more. Buyers are driven by dollars and, with so many in a position of surplus feed as well, this Feilding store lamb market continues to be competitive. A greater proportion of the older steer section were Friesian cross cattle today and this dragged the two year steer average back a little but the good beef steers were steady and the top price overall was up at $2025 ($2.91) for 10 Angus cross steers. The yearling steer section was strong again with good Angus yearlings selling for $4.11-$4.27. The top price went to $1585 ($3.31) for 11 Charolais cross yearling steers, however. Bulls came in three age groups with the older bulls steady with more numbers this week and yearlings, also in increased numbers which let the buyers be more selective, easing back. $1345 ($2.82) bought 8 well marked and forward Friesian yearlings. Older heifers are not coming forward in great numbers but are remaining steady. Yearling heifers strengthened as the section proceeded and sold up to $1180 for good Hereford/Friesians. Lighter heifers seem to sell at similar prices to their heavier sisters. Sheep (8,663): lambs (8,335); 3035 kg, $71-$88; 20-30 kg, $49-$75. Cattle (1,256): steers; 2yr, 420696 kg, $1240-$2025; 1yr, 203-478 kg, $785-$1585; bulls; 2yr, 445-530 kg, $1270-$1535; 1yr, 207-476 kg, $470-$1345; weaners, 93-157 kg, $390-$500; heifers; 2yr, 367-488

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016 kg, $1005-$1350; 1yr, 222-392 kg, $750-$1180. For full reports on these sales visit agrihq.co.nz/farmer CANTERBURY CANTERBURY The store lamb section of the CANTERBURY PARK sale last Tuesday finally had some depth to it as vendors look to take advantage of the stronger prices, though the market did ease slightly. Lambs from Marlborough were offered alongside a bigger number of local lambs. Most of the store lambs were sold as mixed sex, with the light lines trading at $50-$65 for the highest cents-per-kilogram values, though these dropped away as the weight increased. Medium to good mixed sex sold for $69-$81, with a smaller top end earning $84-$89. Male lines sold for $54-$85. Schedule pressure caught up with the market and prices for prime lambs eased to $80-$126. Prime ewes still sold very well however, and light ewes started at $71, with heavy lines earning $97-$137. Prime cattle were the main feature in the rostrum, though a small number of stores were offered and the highlight was 1-year Angus-cross heifers at $935$1015. A good number of prime steers sold on a steady to firm market, with heavy types making $2.85$2.95/kg, and forward stores, $2.90-$3.00/kg. High yielding heifers managed $2.87-$2.94/kg, then $2.70-$2.85/kg for the next tier of beef and beef-Friesian. The top cows traded at $1.82-$1.90/kg, and lighter beef and dairy lines, $1.58-$1.64/kg. The first calf sale for the season at Canterbury Park included lines sold to fundraise for the IHC. A small yarding of 310 calves was mainly Friesian bulls, and 110kg and under sold for $400-$470, with 115-147kg trading at $490-$570. Hereford-Friesian featured in the heifer pens, and very light lines at 63-90kg made $340-$440. With the year winding down, numbers lifted at COALGATE last Thursday, with just a few sales left until the Christmas break. Prime ewes continue to sell well and to strong demand, and a large yarding of 2800 mostly sold for $90-$120, with the remainder at $60-$89. Prime lambs held their value despite falling schedules, and sold for $80-$129. Store lamb numbers are increasing each week and sold to expectations, with light lines at $51-$66, and tops, $72$89. Ewe with lambs-at-foot are still being offered, though were of mixed quality and made $50-$64. Just over 500 cattle were offered and a big yarding of prime sold well, while Angus and Angus-

Hereford featured in the store pens. Prime steers sold to $2.90-$.291/ kg, though most were 503-568kg and made $2.80-$2.86/kg. Heifer prices were similar, with Charolais making $2.90/kg, and most other lines, $2.70-$2.82/kg. Bulls sold for $2.55-$2.60/kg, and a small offering of heavy Friesian cows returned $1.90-$1.94/kg. Angus and Angus-Hereford stood out in the store pens, with R1-year steers, 225-261kg, making $910-$950, while their sisters, 241269kg, returned $830-$890. Older Angus heifers, 284-365kg, sold for $850-$1055, while HerefordFriesian, 254-260kg, fetched $705-$740. Weaner Friesian bulls sold to moderate interest, and at 118-120kg, made $450. MID CANTERBURY MID CANTERBURY Prime lambs met good demand to fetch up to $128 at the second to last ever TINWALD sale last Tuesday. Medium to light store lambs met strong demand, and prime ewes held firm on recent sales. The best of the heavy prime lambs sold from $121-$128, while medium realised $110-$118 and light $85-$98. Medium hoggets sold from $95$105. Heavy shorn ewes realised $98$108, with medium at $82-$89, and light $70-$75. Hoggets with lambs-at-foot held firm on the previous sale, ranging from $63-$68. The final sheep sale at Tinwald will be held on December 13, ending a 138-year era of selling livestock at the Tinwald saleyards. SOUTH CANTERBURY SOUTH CANTERBURY Store lamb numbers lifted at TEMUKA last Monday, and long term types sold at very high levels. Cattle numbers also increased though the market held. While store lambs have been slow to come out, 1500 were offered last Monday, and demand was high. Ewe lambs made $68$74, male $74-$81, and mixed sex $70-$87, with the light lines selling well over $3/kg. A good sized yarding of prime lambs held their value at $90-$129, and male primes also sold to high demand at $70-$110. Demand for ewes continued to work in vendor’s favour, with most making $70-$119, and few trading under $60. The rostrum was busy as the cattle sales wind up to the Christmas break. Buyers took full advantage of the bigger numbers and prices were solid. Most steers sold over a tight range at $2.75$2.85/kg, while Angus heifers, 500-615kg, made the same money. Most other beef heifers made $2.66-$2.80/kg, and Friesian, 555-

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605kg, fetched $2.59-$2.69/kg. Cow prices continued to show improvement, and a good mix of beef and dairy sold very well. Top beef lines made $1.94-$2.03/ kg, and medium, $1.85-$1.95/ kg. Friesian prices were not far off the pace with higher yielding types earning $1.79-$1.90/kg, and medium, $1.65-$1.75/kg. Quality was very good in the cow pens. Calves came out in big numbers at TEMUKA last Thursday for the first Calf sale, and the market sold to record levels as the rostrum packed out with would–be buyers. Store lamb numbers lifted last Monday, and long term types sold at very high levels. Cattle numbers also increased though the market held. While store lambs have been slow to come out, 1500 were offered last Monday, and demand was high. Ewe lambs made $68$74, male $74-$81, and mixed sex $70-$87, with the light lines selling well over $3/kg. A good sized yarding of prime lambs held their value at $90-$129, and male primes also sold to high demand at $70-$110. Demand for ewes continued to work in vendor’s favour, with most making $70-$119, and few trading under $60. The rostrum was busy as the cattle sales wind up to the Christmas break. Buyers took full advantage of the bigger numbers and prices were solid. Most steers sold over a tight range at $2.75$2.85/kg, while Angus heifers, 500-615kg, made the same money. Most other beef heifers made $2.66-$2.80/kg, and Friesian, 555605kg, fetched $2.59-$2.69/kg. Cow prices continued to show improvement, and a good mix of beef and dairy sold very well. Top beef lines made $1.94$2.03/kg, and medium, $1.85$1.95/kg. Friesian prices were not far off the pace with higher yielding types earning $1.79-$1.90/ kg, and medium, $1.65-$1.75/kg. Quality was very good in the cow pens. It was standing room only in the rostrum as it packed out for the Calf Sale, with the biggest buying bench seen in over 20 years. Despite 2400 calves offered, some buyers still went home emptyhanded as prices sold to record levels. Friesian bulls made up over half the total yarding, and 80-100kg Friesian sold for $400-$500, while heavy, well-marked lines returned $540-$670. Hereford-Friesian, 90-100kg, earned $535-$555. Crossbred lines were more mixed, with some lines harder to shift. The lighter end made $375-$400 for 85-100kg, and 110-140kg returned $435-$470. Heifers also sold well above last year’s levels with Hereford-

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Friesian, 75-85kg, making $400$505, and 110-115kg, $545-$570. OTAGO OTAGO Just prime sheep were offered at BALCLUTHA last Wednesday, with store sheep noted for their absence. The sale did include the first new season prime lambs though, and quality and demand were good, PGG Wrightson agent Barry Osborne reported. Heavy lambs traded at $113, with medium earning $93, and light, $81. Hoggets are still being offered though at reduced levels, and those on the books made $70-$99. With limited numbers of lambs available, the ewe market continues to be in the spotlight, and prices firmed for a moderate sized yarding. Heavy ewes made $94-$104, medium $80-$92, and light $51-$75. SOUTHLAND SOUTHLAND A large yarding of young store cattle featured at LORNEVILLE last Tuesday, and strong demand resulted in high prices for all classes. Prime ewes were the highlight in a small sheep sale, with prices continuing their strong run. A small offering of prime lambs sold on a more subdued market, though prices were reasonably steady. Top lines made $95-$109, medium $85-$94, and light $71$82. Ewes sold to similar levels, with heavy types trading at $94$107, medium $77-$90, and lighter $54-$69, with lower condition types earning $45-$49. A small yarding of store lambs met good demand and top lines sold for $70$75, medium $62-$68, and lighter $50-$60. Yearling cattle were mainly Hereford-cross and good steers, 335-420kg, made $1010-$1100, and medium 287kg, $860. Heifers were hot on their hooves, with 330-390kg making $900-$1050, and medium, 278-283kg, $795$810. Friesian steers, 350kg, returned $950, and Angus-cross bulls, 350kg, $1040. In the weaner pens Hereford-cross bulls, 110kg, returned $480, while Friesian, 120kg plus made $420-$460, and 90-110kg, $360-$420. Herefordcross heifers, 100kg, returned $400-$450. Prime cattle prices were steady for a small volume. Steers, 450600kg, made $2.50-$2.60/kg, with beef heifers, 420-500kg, earning $2.40-$2.60/kg, and dairy, 385425kg, $2.38-$2.50/kg. Cows sold in three distinctive ranges, with 550kg plus earning $1.80-$1.95/ kg, 450-550kg, $1.60-$1.70/kg, and light, 380-450kg, $1.40-$1.60/kg. Numbers were light at CHARLTON last Thursday, with prime ewes the main feature and selling to strong demand, PGG Wrightson agent Andrew Martin reported. Prime spring lambs sold well and heavy lines made $100-$110, medium $90-$97, and light $80$87. Ewe prices were very similar, with heavy lines making $100$115, medium $85-$95, and light $70-$80. In the store pens a small offering of lambs with quality lines well sought after, with the tops earning $75-$82, and medium $67-$72. Prices dropped away for the lighter lines, and $55-$65 covered the better end, with tail-end lambs at $30-$40.

Markets

40 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 12, 2016 NI SLAUGHTER LAMB

SI SLAUGHTER LAMB

SI SLAUGHTER STAG

($/KG)

MEDIUM MALE STORE LAMBS AT MATAWHERO

($/KG)

($/HD)

5.35

5.40

8.10

$60-$69

high lights

Ram demand strong

$420-$500

$1170-$1265

Friesian bull calves, 80-100kg, at Temuka Calf Sale

1-year Angus steers, 345-370kg, at Matawhero

Sales wind up to Christmas

Annette Scott annette.scott@nzx.com STRONG demand for good, versatile flock rams was a sign there is still confidence in the sheep industry, livestock broker John Harrison says. Harrison, of Peter Walsh and Associates (PWA), said the 15th annual Glenloe onfarm Dohne ram sale in the Waimakariri River Gorge had attracted a strong buyer gallery from across the country with an international buyer also in the running. Run in conjunction with Hazlett Rural, the sale offered 30 rams that realised a full clearance. The top price of the day was $4100 with most of the rams selling for four figures. The versatility of the Dohne genetics was gaining popularity, Harrison said. “The genetics are improving all the time, the product kills out well with good yields and any store stock has also become very sought after,” he said. Vendor Richard Loe’s selective breeding had resulted in a fertile ram that had produced a ewe capable of carrying a good fleece and also with good mothering traits to produce lambs with high growth rates. The Dohne was developed in 1939 by the South African Department of Agriculture to merge fine wool and good slaughter lamb production in a fertile, hardy and easy-care sheep. Loe said clients returning

Suz Bremner AgriHQ Analyst

SOLD: Auctioneer Paul Dixey, tales bids at the 15th annual Dohne ram sale on Glenloe farm in the Waimakariri River Gorge. Photo: David Alexander to his annual sale proved the Dohne ram had improved, breeding flocks across a vast range of breeds. Over the years his rams had gone as far north as Hawke’s Bay and to Balclutha in the south. This year he had an Argentinian bidding on two of the rams. “Unfortunately for him he was outbid on both of them.” His plan had been to export the live genetics to Argentina. In his own farming business Loe said his ewe flock was now producing 20.5 micron wool, this year’s lamb crop

had tailed out at an average 155% and hogget fleece was at 18.5 microns. Faith in good genetics generally had set the sheep industry in good heart in recent times and strong interest was expected at capital stock ewe fairs in the New Year, Harrison said. Meanwhile, low lamb slaughter rates continued to prove a challenge for exporters this season with United Kingdom domestic lamb producers readying themselves to capitalise on the shortfall of imports.

A combination of the smallest lamb crop since 1953 and a lack of sun causing very slow lamb growth rates meant the slaughter season kicked off at a very sluggish pace as farmers with an abundance of feed kept lambs for higher weights. Slaughter rates were more than 30% below last year and export lamb processing numbers for the first three months of the season, October-December, were expected to be back by 11% on last season, Beef + Lamb New Zealand’s 2016 Lamb Crop report forecast.

I HAVE wondered whether sales would wind up or down to Christmas. The answer was blindingly clear by Tuesday of last week with a significant lift in numbers across most classes at the sales already held and the trend continued to the end of

the week. The growthy spring experienced by most farmers around the country meant there has been little pressure to offload but, as the end of the year draws closer and regions start to feel summer-like, the paddocks are drying off and decisions are being made. With cattle prices so strong it has been an easy one for many to make with vendors the winners in this market for some time now. The bigger number of cattle on offer might have some easing affect but they are drawing out more buyers who are all too aware the numbers will drop away, so are getting stuck into buying from decent volumes while they can. Certainly sounds like a good equation for vendors. Store lamb vendors on the other hand do not have the same fairytale story, which is leaving a feeling of discontent over this market. As store lamb numbers pick up the pressure is coming off the buyers and consequently prices are levelling out to be more realistic compared to schedule outlooks. Prices are tracking in line with 2015 levels so it’s not a scenario farmers don’t know – just one they were hoping would work more in their favour. Recently I have heard a number of people question why they bother with sheep, given the amount of blood, sweat and tears that goes into farming them, with little reward. It is certainly something that we have discussed many times around our kitchen table and sadly for the poor old sheep, there has been some movement away from breeding ewes. suz.bremner@nzx.com

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