Farmers Weekly NZ 19 December 2016 by AgriHQ

Vol 15 No 50, December 19, 2016

farmersweekly.co.nz 13/12/16

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Land Champions The source of farming success

A REMINDER TO SHEEP FARMERS

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NEWS

NEWSMAKER

25 Delivery key to top milk job As the dairy industry gains traction on its recovery from a tumultuous two-year downturn, Westland Milk Products has its own mistakes to rectify, new chief executive Toni Brendish says.

OPINION

26 The Voice Craig Wiggins lauds those who go above and beyond for farming.

5 Judicial review filed on Healthy

From the Ridge ��26

A judicial review of the Healthy Rivers plan’s consultation process is being sought by farming groups.

REGULARS

Rivers

7 Shaky start to new job “What’s going on?” That was the question from young English farm worker Alex Williams to his housemate as the mid-November earthquake rattled just a week into his New Zealand working holiday.

14 Plants to grow bigger than

Meaty Matters ��27

Real Estate �� 28-32 Employment �� 33 Classifieds �� 34 Livestock �� 34-35

MARKETS

dairy

Horticulture will become a bigger export earner than dairy, its leader Julian Raine predicts.

Winter milk money boosted �� 3 Price gap stalls velvet sales �� 4 Judicial review sought on Healthy Rivers �� 5 Greaney at home as Tatua leader �� 6 Shaky start to new job �� 7 Rural work practices criticised �� 8 Ag training murky and confused �� 9 Zespri unveils HQ design ��10 Sheep, beef confidence falls �� 11 PWC fails to get mill default paid ��12 Keeping the show in the Black ��15 Versatile advocate for farmers ��19 Banker values respect, loyalty ��23

40 Tinwald bows out The hub of Mid Canterbury’s livestock trading sold stock for the final time last Tuesday marking the end of a oncethriving sheep industry in the district.

Market Snapshot �� 36

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

EDITORIAL

Forget the year but not lessons

N THE last few weeks many people have called 2016 many things – none of them complimentary. The common feeling I get is that for most, this past year has been one to forget. Weird weather, natural disasters, international political upheaval and the loss of some of our most beloved musicians are just some of the things that have contributed to this annus horribilus. In our sector we’ve had the dairy downturn, which we’re just starting to emerge from. Now, though, the weather is against dairy farmers and production has suffered. Red meat producers watch while their industry does its usual act of promising and not delivering. I spent a few days last week on Chatham Island. I talked to a farmer there for a story you can read in January. I asked him how he coped with the many issues and problems he faced – gorse, weather, the cost of getting stock to market and machinery breakdowns. He smiled and said: “I say to myself, just grow another lamb.” I guess it’s another way of enacting that often-said acronym – Keep It Simple, Stupid. Focus on what you know and do that well. As always, this last issue of Farmers Weekly features our Land Champions as well as the latest agricultural news. This year we’ve chosen a group who provide support to farmers. They’re the bankers, the politicians, the environmentalists and others without whom farmers would have no show. They keep us upright and they keep us honest. So thanks for reading this year, we realise that not all of the news has been good, this year perhaps more than others. Thanks for all the letters, emails, phone calls and conversations. This might have been a year to forget but hopefully, like us, you’ve learned some things that will help you flourish in 2017.

Bryan Gibson

2017 AGRICULTURAL TOURS THROUGHOUT THE WORLD The World Awaits You in 2017. We hope you have a very enjoyable Christmas and a healthy prosperous New Year. We look forward to seeing many past travellers and new ones on our tours in 2017. We have a lot of choice for you – so much to see and so much to do. Have a look at our website, download your preferred itineraries and enjoy imagining yourself in a variety of exciting destinations. From Nambia in April/May to Western Australia in October and lots of places in between.

Ireland & Scotland June Enjoy a superb tour to Ireland and Scotland, visiting various farming enterprises and taking in the breathtaking scenery of the Emerald Isle and rugged beauty of the Scottish Highlands. Tour Dublin, visit famous Blarney Castle, enjoy the scenic Ring of Kerry, Galway Bay and the spectacular Cliffs of Moher. Tour through Northern Island to Belfast then by ferry to Scotland. Cruise on the legendary Loch Lomond and drive through infamous Glencoe to Fort William. Visit the Isle of Skye and finish your tour at the Royal Highland Show.

Bulgaria, Macedonia and Albania June / July Join our exciting tour into the heart of the Balkans and discover with us the hidden treasures of these littleknown but deserving to be seen countries. Millenniaold history, warm hearted people and a variety of fertile landscapes are awaiting your curiosity. These lands have been settled by great civilizations such as Thracians, Romans, Byzantines and Turks, leaving us a real palette of cultures. Get acquainted with a mixture of agricultural highlights – from traditional farming to modern agri production.

Best Wishes for Christmas and the New Year Emirates/Jordan – March/April Namibia – April Chile & Argentina – April/May France & Corsica – May/June China – June China for Fonterra Shareholders – June Iceland & Greenland – June Central Eastern Europe – June Canada Maritime June/July Canada – July Top End Kimberley – July USA Beef & Calgary Stampede – July South Africa & Botswana – August

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Winter milk money boosted Hugh Stringleman hugh.stringleman@nzx.com HIGHER payments and more attractive terms have been offered to dairy farmers for winter milk as Fonterra ramps up supply for year-round manufacture of valueadd products. The consumer and food service products included UHT milk and cream at Waitoa in Waikato and its domestic liquid milk and specialty products needs. Fonterra also needed to source winter milk for its processor customers who bought under the Dairy Industry Restructuring Act entitlement. Both contract and noncontract winter milk premiums would be paid over 61 days in 2017, compared with 92 days for contracts in previous years. Fonterra also eased the contract terms regarding under- and over-supply and modified the adjustment factors for milk transport distances. In the South Island a premium of $4.25/kg milksolids would be paid for contracted milk from mid-June to mid-July, and $3.60 for the fortnights either side of that period. In the North Island $3.50 was on offer for the month of June, with $2.85 payable in the late-May and early-July shoulder periods. The non-contracted rates were $1.40 and 70c in the South Island and $1.20 and 50c in the North Island, for the same periods as the contracts. Non-contracted winter milk payments were not subject to transport adjustments. Farm Source Waikato regional head Paul Grave said Fonterra now had four designated North Island winter milk processing sites – Kauri, Takanini, Waitoa and Longburn. The addition of Kauri, near Whangarei, was a big boost to Northland farmers, many of

IMPROVED: Prices have been boosted and terms altered for Fonterra’s winter milk scheme.

We consulted widely before revamping the winter milk scheme. Paul Grave Fonterra whom already autumn-calved a whole or part herd and had been paying the transport adjustment for a further 175km to Takanini. The premium adjustment factor was 2.5c/kg deducted for

every 10km travelled between the supply farm and the nearest designated plant. For the purpose of comparison, Grave said the new North Island contract rates averaged out at $2.10 premium across 92 days, compared with $1.90 last winter. And because the contract period was only 61 days, farmers would receive an additional benefit from paying the transport deduction for the shorter period. The wider tolerance on supply volumes would also be a benefit. All winter milk premiums were payable in full on the 20th of the

month following production, on top of the applicable advance rate for that month. “We consulted widely before revamping the winter milk scheme and farmers told us they wanted more flexibility, which is what we have delivered.” The non-contracted winter milk option was for those farmers uncertain about winter conditions or testing their own ability to more reliably deliver in future. For farmers, a great deal of preparation, change and commitment went into setting up for winter milk production, Grave said.

DELIVERED: Fonterra is delivering the flexibility farmers want in its winter milk scheme, Waikato Farm Source head Paul Grave says.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Price gap stalls velvet sales Annette Scott annette.scott@nzx.com

STANDOFF: A prolonged stand-off over price has marked the latest ever start to the velvet-selling season. Photo: Annette Scott

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PRICE standoffs between buyers and sellers and new Chinese regulations have stalled the start to the velvet selling season. “The underlying demand is still there but this is not being reflected in the prices being offered by some buyers,” Deer Industry New Zealand chief executive Dan Coup said. Some Chinese buyers had import permits carried over from last season and they were buying. It was estimated residual quota could be up to about 100 tonnes of velvet in total. There were reports of increased inquiry from Korean customers who were exhausting their inventory in anticipation of a new round of tariff cuts from the Korea-NZ free-trade agreement on January 1. In October, at the start of each velvet season, there was always quite a bit of posturing between buyers and sellers over price, Coup said. But in each of the past six years prices had firmed on the season before. Last year’s average farmgate price for A-grade velvet was $125 a kilogram.

The underlying demand is still there but this is not being reflected in the prices being offered by some buyers at present. Dan Coup DINZ This season had been different. “With a deterioration in our currency position, a softening of some market niches and some pretty wild speculation and rumour about increases in production volumes, overseas buyers have been pretty determined that prices needed a major correction,” Coup said. On top of that, China had initiated some major regulatory changes designed to improve the safety of its food and traditional pharmaceutical supply chains. “This meant that our customers in China, who had previously imported velvet as an agricultural by-product, needed to get a pharmaceutical processing or trading licence before they could import velvet. “To the best of our knowledge, no buyers have managed to do this so far. New regulatory systems, regardless of the country, always take time to bed-in.” There were two main end markets for NZ velvet, Korea at 60% and China, 30%, but about half the velvet consumed in Korea had in recent times been processed in China. Chinese firms processing velvet in free-trade zones for Korean customers were also affected by

NOTHING HAPPENING: The velvetselling season is yet to start because of the gap between buyer and seller expectations, PGG Wrightson velvet manager Tony Cochrane says.

the regulatory changes. “It is not the role of DINZ to advise farmers on their commercial decisions but it is important for both buyers and sellers to understand that demand for NZ velvet at a consumer level is continuing to grow. “Also, production last year was around 605 tonnes, up only slightly from 585 tonnes the year before.” A similar small increase was expected this season. Coup said the only specific market change that DINZ was aware of was a decline in demand for velvet tips, traditionally bought in China as a luxury gift – a category adversely affected by China’s anti-graft drive. The slow start to the season was frustrating for farmers, especially those relying on velvet for a large part of their income. “It will be of little comfort to farmers who are in a cash squeeze or to customers who desperately need supply but China’s moves to improve food safety and supply chain integrity will be positive in the long-term. “We share a common interest with China in having a transparent, high-integrity path to market,” Coup said. PGG Wrightson velvet manager Tony Cochrane said sales were yet to start because of the gap between buyer and seller price expectations. Reports of weaker, small sales in the field by opposition had not yet been able to establish a level that was sustainable or acceptable. “Our support for the industry’s stability and profitability are first and foremost whilst we make every effort to find a reasonable starting price,” Cochrane said. China grades accounted for 30% of NZ production and for the balance of Korean grades they had no issues apart from ever present market pressures such as cheaper competing velvet, currency and stocks. “This puts the Korean market in the driving seat to buy direct from NZ instead of via China. In the long term both markets will become more transparent and assist onshore processing,” Cochrane said.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Taggart predicts plant closures Alan Williams alan.williams@nzx.com MEANINGFUL meat processing plant rationalisation will be forced on some companies by the continuing fall in sheep and lamb kill numbers, Alliance Group chairman Murray Taggart told shareholders. Tallies had fallen by more than two million head since the last major plant closure, Alliance’s Mataura plant in Southland, he told the group’s annual meeting in Nelson on Thursday. That was putting pressure on balance sheets and profitability of businesses with uncompetitive cost structures. Alliance was achieving improved operational performance through its

transformation strategy and was “well-placed to thrive in this very competitive environment”. Re-elected as a director at the meeting, Taggart said farmers’ decisions to supply Alliance with livestock had not been as compelling in recent years as previously. He thanked them for doing so when the co-operative had not been as competitive as it would have liked to be. With the new group strategy the directors were confident their reason to supply Alliance would be more compelling this season and beyond. Taggart was re-elected with 25.2 million votes, based on the number of shares owned by shareholders. Sitting director Don Morrison was also returned, with 21.57m votes. The unsuccessful

candidate was Leon Black, who scored 19.3m votes. The Alliance strategy was focused on reducing costs through the business but as it progressed would move to capturing value from the marketplace, with several initiatives already under way, Taggart said. The last year had been a difficult one for both the co-operative and shareholding farmers. The world was awash with cheap protein such as chicken and pork, fed by weak international grain prices. Alliance did not attempt to compete with those meats with its own high-price lamb, beef, and venison cuts but lower-value parts of the animals did have to compete with them. However, confidence had lifted

BULLISH: Positive signs of economic growth are appearing around the world, Alliance chairman Murray Taggart told shareholders.

across several sheep meat markets in recent months and more positive signs of economic growth were appearing around the world. The signs augured well for a medium-term recovery in farmgate prices, though there was still a huge amount of work to do before Alliance delivered the level

of performance farmers expected. Thursday’s meeting was the first held by Alliance in Nelson. Its Stoke plant was the only sheep meat plant in the northern South Island and Taggart said that allowed the co-operative to offer timely, local processing capacity for earthquake-hit farmers.

Court asked to stop Healthy Rivers process Richard Rennie richard.rennie@nzx.com

UNTENABLE: The plan process cannot continue while part of it is withdrawn to deal with an iwi challenge, Beef + Lamb New Zealand environment expert Corina Jordan says.

A JUDICIAL review of the Healthy Rivers plan’s consultation process is being sought by farming groups that want it put on hold. An application for a judicial review was lodged in the High Court by Horticulture New Zealand, Federated Farmers, the Pukekohe Vegetable Growers Association, Waikato and Waipa deer farmers, Beef + Lamb NZ and the Primary Land Users Group. The application sought to put the process on hold until the dispute Hauraki iwi had with it was resolved. Hauraki iwi challenged the plan’s validity, given it covered

120,000ha subject to a Hauraki iwi Treaty of Waitangi claim. That represented about 11% of the plan’s catchment and extended from Morrinsville in the east, across north Waikato to Tuakau, encompassing part of the Hunua Ranges. It included the internationally recognised conservation area of the Whangamarino Wetland. Waikato Regional Council was in consultation with the iwi and suspended the submissions process on the iwi area while the process continued for the rest. B+LNZ North Island environmental policy manager Corina Jordan said it was untenable for the plan to continue through the submission process when part of its catchment was subject

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it was not workable when part was left out of the submissions process. “It is the process, not the plan itself that we have an issue with now.” Council chief executive Vaughan Payne said the iwi area of the plan could be reintroduced later next year, once the issue was resolved. However, some commentators questioned how quickly the whole plan could be re-started given the iwi was in Treaty negotiations that began in 2009. The settlement process was originally due to be settled last year but Treaty of Waitangi Negotiations Minister Chris Finlayson described the claims of Hauraki iwi as being “complex and overlapping”.

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to a challenge from iwi. “We want the plan to go on hold until the iwi issue is sorted. The main issue is one of transparency. “We do not think you can offer assurances the plan is the way forward when farmers in the upper catchment are wearing significant costs to protect those in the lower catchment.” Conversely the lower Waikato catchment was the most affected by the nutrients the plan intended to reduce, much of which flowed from the upper catchment zone. Jordan said she did not expect a decision until late January from the court. Waikato Federated Farmers president Chris Lewis said the federation remained committed to the plan in its whole form but

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Greaney at home as Tatua leader

LOCAL: Brendhan Greaney says he is lucky and privileged to be leading Tatua Co-operative.

Hugh Stringleman hugh.stringleman@nzx.com BRENDHAN Greaney feels right at home as the new chief executive of Tatua Co-operative Dairy Company and not just because he has served six years as operations general manager before his promotion. He was born and raised three

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kilometres down State Highway 26 from Tatuanui, at Waitoa, where his father Claude was a site manager for New Zealand Dairy Group. He used to grudgingly observe that Tatua regularly exceeded NZDG’s payout and when the younger Greaney joined Tatua in 2010 he said “They have always been a good company”. Waitoa, now a UHT citadel in Fonterra’s empire, is well within the 12km radius covering Tatua’s 100-plus supply farm catchment, from which the much smaller co-operative drew its familial strength. “I went to Waitoa Primary, along with NZDG employees’ and farmers’ children and then to St John’s College, Cambridge, past the plant of the ‘other company’ on the bus every day.” After gaining a business and finance degree at Waikato University Greaney spent four years mining in Western Australia before returning home and getting his first job in the dairy industry. That was as a packing operator in the NZDG Te Awamutu butter plant, from which he progressed to supervisor then plant manager. Greaney then joined the Dairy Board in Wellington as an analyst before being posted to joint venture plant management in Saudi Arabia for five years from 2001 to 2006. While never a process operator or engineer, he learned it was not necessary to know everything about dairy processing but to manage well and have confidence in the people around him. He was promoted first to operations manager then general manager of the Saudi joint venture, with 350 employees and its reach into surrounding Middle Eastern and African markets. The employer’s name changed to Fonterra and Greaney then spent four years in Singapore for Fonterra Brands, Asia, Middle East and Africa, as divisional operations general manager. With wife Paula, a teacher, and young son Nick, the lure of home was strong in 2010 when Tatua was recruiting an operations general manager as number two to chief executive Paul McGilvary, now just retired after eight years in the top job. At this month’s annual meeting Tatua chairman Stephen Allen said “After a professional, rigorous yet sensitive recruitment process, he was delighted to announce that one of our own people” had been appointed chief executive. Therefore Greaney’s appointment coincided with McGilvray’s departure as a highly respected chief executive. “Tatua is a family-oriented NZ company with roots in the local community, yet with global opportunities. “A seamless transition of leadership will provide confidence and stability for our customers, our staff and our shareholder families,” Allen said. Greaney said he was confident in his experience in technology and marketing, both operational and commercial, as the platform for the large and broad role before him. “I feel very lucky and privileged to have had the dairy industry career I have had and have been very well supported by the Tatua shareholders.” Did he envisage further changes to the already complex and highly tuned single-site dairy processor? “We produce a mixture of bulk ingredients and value-add products – we can invest in a targeted way to turn more milk into higher-value products and take our payouts still further away from commodity returns.”

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

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

SFF buys back legacy shares

NOT MOVING: It will take more than a mega-quake to put English farm worker Alex Williams off his job on a farm at the shake’s epicentre.

Neal Wallace neal.wallace@nzx.com

Shaky start to new job Alan Williams alan.williams@nzx.com “WHAT’S going on?” That was the question from young English farm worker Alex Williams to his housemate as the mid-November earthquake rattled just a week into his New Zealand working holiday. “Till he said earthquake, I didn’t have any idea what it was,” Williams said. “As soon as he said that I got outside and waited till it was over. “I hadn’t known anything about earthquakes. “They’re just something you see on the news.” Williams, 21, had just arrived for four months working for Waiau dairy farmer Don Galletly. The property was one of the worst affected with the milking shed badly damaged, leading to the farm’s milking cows being

transferred to other farms. “I couldn’t believe the damage. “Don’s driveway collapsed and other tracks were damaged and the dairy shed was wrecked,” Williams said. Apart from the big jolt itself a lot of the follow-up activities left a big impression on him – the way the 950 milking cows were trucked out to other farms over the next couple of days, the generosity of other folk in the area, with all the food brought in, and the overall sense of community. And his farm cottage was mostly undamaged. Williams comes from a sheepfarming family in Herefordshire, near the Welsh border. He came to NZ “for something a bit different and to miss the winter back home”. He was on the phone home within a half-hour of the quake.

“Mum asked me if I was coming home but I said not yet. “It will take more than that to make me go but I’m not in a hurry for another one.”

It will take more than that to make me go but I’m not in a hurry for another one. Alex Williams Englishman He’s here till the end of February. There’s been plenty to do in the meantime fixing fences and helping get the irrigation and stock water working as well as tending to the younger, non-

milking cows on the farm. Williams was impressed by lush pasture growth in North Canterbury and amazed by how quickly the land dried out after irrigation. Meanwhile, Galletly was working on engineering and insurance aspects of the wrecked dairy shed and pondering different designs. “It sounds like it will be a new shed,” he said. The stock water was all running and most of the irrigation equipment damage had been put right. The milking cows were away at 13 other farms. “I haven’t heard anything so no news is good news,” he said. The cows would be milked as part of the other herds with those farmers collecting the income and would return to Galletly in-calf when their season’s milking was over.

THE first cash dividend from Shanghai Maling’s purchase of half of Silver Fern Farms will be in the bank accounts of nearly 5500 holders of supplier investment shares in mid January. The 5486 holders of 5,371,732 supplier investment shares have been told the SFF Co-op was cancelling those shares at their face value of $1 each, effective from January 13. SFF Co-op chairman Rob Hewett said the shares were a legacy of the PPCS (now SFF) takeover of Richmond and while open to all shareholders, were primarily used to encourage North Island Richmond shareholders to buy shares in PPCS. Flush with its share of the $267 million from the sale of half the processing arm to Chinese meat processor and retailer Shanghai Maling, Hewett said SFF Co-op would use some of its $57m share of the sale proceeds to start the process of tidying up its share register. “We have three classes of shares and we really only need one.” Hewett said the co-op was going to focus only on surrendering the supplier investment shares at this stage. That left ordinary and rebate share classes still in circulation with ordinary shares able to be traded on the Unlisted exchange. Those two classes of shares would receive a 30c dividend which was expected to be paid by the end of February.

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Migrant labour outfit ripped off 75 workers Neal Wallace neal.wallace@nzx.com A PUKEKOHE horticultural labour contractor has been ordered to pay more than $430,000 in wage arrears and fines for numerous employment breaches involving migrant workers. Labour hire company Binde Enterprises, whose sole director and shareholder was Jujhar Singh, has been found guilty of numerous employment and wage breaches involving 75 staff. One employee gave evidence he worked between eight and nine hours a day for four days a week and was paid $290 cash each Friday, equivalent to $9 an hour. Binde Enterprises had an exclusive contract to provide labour to Pukekohe commercial agricultural company Sutherland Produce since January 2014. The Employment Relations Authority said labour inspectors visited Sutherland Produce in April 2015 and spoke to several Binde employees, after which it launched an investigation into the company’s non-compliance with minimum standards. The investigation found the employees, all migrant workers, had not been given employment agreements, the employer had had failed to keep

accurate records of wages, time, holidays, leave, its number of employees and had failed to pay minimum wages or holiday pay. The ruling said Sutherlands wrote to Binde reminding the company of its obligations under immigration and health and safety legislation and its labour supply contract. It was prosecuted under the Immigration Act but had since entered a labour supply agreement with Binde Recruit, which was incorporated in March this year and had Jujhar Singh as its sole director and shareholder. The ruling said Singh initially declined to provide investigators with information or reasons for his actions and when he finally did, authority member Andrew Dallas said he could not explain his failure to comment or engage in the investigation. Dallas said Singh appeared to blame advice from his previous accountant, that it was a mistake and his company did not seek to breach the law or harm his employees. It was the fault of administrative staff and “eight to 10” of the 75 employees were subcontractors to Binde. The costs included $209,000 in wages arrears and unpaid holiday pay, $220,000 in penalties and fines and $2800 in costs.

Rural employment practices criticised Neal Wallace neal.wallace@nzx.com

HORTICULTURE New Zealand chief executive Mike Chapman has taken exception to a study alleging exploitation of migrant workers saying it does not accurately reflect employment practices in the sector. The two-year University of Auckland Business School study interviewed 105 workers, migrants and people-trafficking advocacy groups and followed media stories about the experience of migrant and NZ-born workers. One of the report’s authors, Dr Christina Stringer said it “suggests exploitation of migrant and NZborn workers is widespread across many key industries, including horticulture, hospitality and construction.” In the horticulture and dairy sectors the study found temporary migrant workers rather than those born in NZ had been exploited. Chapman said exploitation of workers was not widespread or common in the horticulture sector which employed 60,000 people. He had issues with aspects of the report. “This particular piece of research does not accurately portray employment practices across horticulture and draws from a very small sample group of 105, of which it is not clear how many were employed in horticulture.” Stringer said university ethical constraints precluded her approaching workers, which could be seen as coercion, so she had to advertise for workers to approach her. From those initial meetings other workers spoke to her and she Chile, Argentina & Brazil was satisfied with her conclusion that the problem was widespread. Her research found those working for horticultural contractors were most at risk and her report mentioned Indian, Indonesian and Asian gangmasters setting up as contractors to exploit May/June 2017 fellow migrant workers. The report cited Explore this diverse migrant workers paying substantial fees to continent offering superb contractors for work, farms, food and wine with being made to work Latin flare and charm! From 12-hour days, seven days beef, dairy, sheep, arable a week for little pay or and horticulture visits to being made to work in the Pampas, Iguazu Falls, breach of immigration exciting Buenos Aires, Rio conditions. de Janeiro and more! She acknowledged it was difficult to police. More travel options... “Kiwifruit, for example, Chatham Islands Japan Europe Sth Africa & Vic. Falls Queensland there are so many USA Spain & Portugal UK & Ireland Canada & Alaska Scandinavia Western Australia... and more! contractors it is a huge task for the Ministry of Discover some of the Farm To Farm Tours Business, Innovation and world’s best farming, PO Box 239, Victoria St, Employment and the scenery and experiences Rangiora, 7440 in the company of like info@farmtofarm.co.nz Labour Inspectorate to Ph: 03 313 5855 minded travellers. police.” There were also cases of international students

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Ph: 0800 3838 747 www.farmtofarm.co.nz

COMMON: Auckland University researcher Dr Christina Stringer suggests exploitation of migrant workers is widespread in many sectors.

working for 55 hours a week and being paid $8 an hour. Stringer said illegal businesses undercut legitimate operations but the produce all ended up in the same supply chain. She urged large industry bodies and companies to take a stronger stand against those exploiting migrants. Chapman said it was up to government agencies to prosecute, if necessary, but when made aware of issues, Horticulture NZ worked with employers to ensure they had access to agreements or were appropriately trained. The report noted that changing demographics, growth in both dairy and horticulture and a shift away from family-owned units had created labour shortages. The recognised seasonal employer scheme allowed Pacific Islanders to work in orchards but it had not stopped illegal labour practices. Stringer said migrant dairy workers being exploited by sharemilkers was more common than by owner-operators, which could be because of financial pressure from recent plummeting milk prices. Migrant workers in Southland were positive about their experience, saying Federated Farmers and farmers had actively worked to improve working conditions. Other dairy workers also acknowledged conditions had improved in recent years and Stringer said that was because of the efforts of Federated Farmers and DairyNZ to educate employers and employees. It was an initiative she said the sector should continue with. Despite that, some migrants reported working from 3am to 8pm or 9pm, milking 1400 cows twice a day with one other person and having to kill 300 bull calves with a hammer. Recruiters were also found to

have charged migrants exorbitant application fees and made false promises of jobs and wages. The report also noted a 2014 study by MBIE which found 31 of 44 dairy farms visited were in breach of employment standards. “This finding is of concern.” DairyNZ chief executive Tim Mackle said the exploitation of any farm employee was not condoned or accepted. “As in any sector there will always be a handful of dairy businesses that fall short of managing their people in a respectful way but I assure you most dairy farmers around the country know full well that happy workers are essential for the smooth running of the farm.”

I assure you most dairy farmers around the country know full well that happy workers are essential for the smooth running of the farm. Dr Tim Mackle DairyNZ The report noted Filipino migrant workers were considered crucial to the dairy industry, especially in Southland, a fact highlighted in a table accompanying the report. In 2006-07 278 temporary work permits were issued for Filipino farm workers, a third of all temporary work permits issued that year, rising to 806 the following year and then increasing slowly to 1055 in 2012-013. In 2013-14 1359 permits were issued and in 2014-015 the figure reached 1746 making up 52% of all temporary work permits issued that year. There was a sudden decline in the 2015-16 year to 728, 47% of all temporary work permits issued.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Ag training murky and confused Neal Wallace neal.wallace@nzx.com THE future of agricultural training looks even more murky and confused after another week of uncertainty. Adding to questions of funding for training providers, simmering frustration and anger has boiled over with Mid Canterbury farmer and training provider Tony Plunkett describing it as an “industry in a real mess”. And Clutha Development chairman Rob Hewett joined in saying the secrecy surrounding the future of the Telford training farm in south Otago and the lack of communication between Lincoln, Telford staff, students and the southern community was poor. The provision of agricultural training was going through a realignment, in part because of Lincoln-Telford being ordered to repay the Tertiary Education Commission (TEC) $1.5 million. The refund followed the discovery third-party providers were under-delivering courses, prompting Lincoln-Telford to stop providing off-campus education by third parties.

SHAMBLES: Agricultural training is a mess with no certainty of continued funding, farmer and trainer Tony Plunkett says. Lincoln’s FarmSafe course was a victim of that decision and in addition PGG Wrightson was

MPI to help sort farm education Phil Edmonds phil.edmonds@nzx.com THE state of agricultural education is concerning the Government and the Primary Industries Ministry is feeling pressure to assist in finding solutions. Last week at Parliament MPI director-general Marytn Dunne said “Agricultural education is not in our hands but we are concerned about it and there does need to be, way beyond MPI’s responsibility, an overview of agricultural education.” Labour primary industries spokesman Damien O’Connor suggested recent changes to agricultural education delivery in the South Island were countering efforts being made to make the sector more attractive. “Telford is cutting back on its services and other polytechs have had their funding for agricultural services cut. “Despite all the talk about upskilling and training, all that is happening is migrant labour is coming into the industry to replace New Zealanders in jobs that should be skilled. “Despite all the rhetoric, we’re going severely in the wrong direction,” he said. Addressing the Primary Production Select Committee,

Dunne said he could not comment on the advice MPI had been giving Primary Industries Minister Nathan Guy on the issue but said MPI was in discussion about primary industries education often and the Government was pressuring it to assist where it could. “There is a growing concern around are we going to have enough people to get there. “But you can’t pressgang people into the sector. You have to show people that’s why our ambassadors are out there. “Without having people who are trained and capable and able to work in the primary industries space we have a problem going forward because all the aspirations we have will not be met unless we do. “That is widely understood and widely appreciated. I can’t go into detail but there are initiatives under way to address that on a regional basis.” Earlier this week it was revealed that South Island agricultural training provider Telford was likely to emerge smaller and with fewer staff next year as Taratahi Agricultural Training Centre and Southern Institute of Technology took over the delivery of education from Lincoln University.

considering closing its Agriculture NZ training arm and Landcorp its farm cadet scheme. Combining all those closures would mean the end of vocational training for about 3000 people. Plunkett was involved in a farm cadet scheme training six students a year over two years with funding and education from Lincoln-Telford but has been caught up in the restructuring and has no idea if he would get any money for next year. “This industry is in a real mess. How can you run a business like that? “We’ve got cadets coming next year and I don’t know how we are going to fund them.” The TEC said it “recovered” $2.4m of student achievement component (SAC) funding from Lincoln University’s operations. The funding was compensation to Lincoln for falling rolls after the Christchurch earthquakes but TEC chief executive Tim Fowler said the $2.4m would no longer be available to Telford and funding had been amended in line with falling student numbers. Taratahi Agricultural Training

Centre and the Southern Institute of Technology were continuing due diligence on taking over the provision of education at Telford, with a final decision imminent. One industry source accused Lincoln of blocking the transition of Telford students to university study by refusing to acknowledge Telford qualifications. Lincoln had previously said a reason for taking over Telford was to attract students doing subdegree studies into university courses such as its agriculture diploma. But Lincoln was rejecting Telford graduates because it would not recognise those passing Lincoln-Telford’s Level 3 Certificate in Agriculture as having met university preconditions, the source said. It was instead assessing those students’ university suitability on high school academic results, what he called “criteria that was two years out of date” and which for many Telford students were inadequate to gain access to university. Many struggled to find meaningful subjects at school,

choosing courses that focused on hands-on technology rather than subjects that gave university entrance literacy credits. “These students are literate, they just don’t have the credits to prove it.” The source said it appeared the main lure for Lincoln taking over Telford was accessing its $10m in cash reserves. “They did it for the money. They did it to get their hands on the $10m.” Hewett agreed saying it was immoral that Lincoln accessed Telford’s cash reserves when it had its own. “Taking that money out of Telford to prop up Lincoln was morally wrong,” he said. Retaining the Telford campus was vital because it was a significant employer of up to 60 staff and source of business in south Otago, which the community wanted to protect. It also provided a vital supply of skilled staff for farmers. Hewett had employed two Telford graduates and rated them highly, saying students with levels three and four qualifications filled a need for farmers.

STOP VELVETLEAF before it’s too late

FARMERS BEWARE

Velvetleaf is an invasive weed that was found in fodder beet crops this year. Velvetleaf produces thousands of seeds. If it’s not pulled out it will become a huge problem. Velvetleaf mature plant

If you planted fodder beet seed last season (2015), check your paddocks. If you find velvetleaf: • Contact MPI on 0800 80 99 66. • You’ll receive advice on managing velvetleaf.

Young velvetleaf plant

• Pull out velvetleaf plants before flowers go to seed. • Deep bury or dispose of the weeds in your farm offal pit. Full management advice is at:

www.mpi.govt.nz/alerts Velvetleaf seed pods

News

10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Trade talks prove tough going Nigel Stirling nigel.g.stirling@gmail.com TALKS touted as a vehicle through which China could seek to overtake America’s flagging leadership in setting international trade rules are themselves struggling to make headway. Negotiators from the 16 mainly Asian countries involved in the Regional Comprehensive Economic Partnership (RCEP) trade talks met this month in the Indonesian capital of Jakarta. Making presentations to the negotiators were representatives from regional business groups including Fiona Cooper-Clarke from the International Business Forum which includes among its members Fonterra, Zespri and meat exporter Anzco. Earlier this year leaders had instructed negotiators to redouble their efforts to bring about a speedy conclusion to the talks. But in spite of those directions RCEP looks set to miss yet another self-imposed deadline for completion by the end of this year

and enter its fifth year of talks, Cooper-Clarke said. Led by the ASEAN group of countries and including the southeast Asian group’s free-trade partners China, India, Japan, South Korea, Australia and New Zealand, the talks have suffered from members’ differing levels of ambition for freeing up trade and investment. Cooper-Clarke said the free traders in the group led by Australia and NZ and, to some extent, Japan faced continued resistance from India and others to freeing up agricultural trade. In Jakarta the former Fonterra executive made a presentation to negotiators in which she outlined the priorities from the talks for businesses in the region including elimination of tariffs on more than 90% of goods by tariff classification and also by export volume. “My understanding is that they are looking at something over 90% tariff elimination but the risk is that if you do not cover all key items of export interest by both tariff line and by value then some

of our key exports could miss out.” Asked if RCEP would gain extra momentum now United States President-elect Donald Trump had pledged to withdraw the US from the 12-country Trans Pacific Partnership (TPP) CooperClarke said countries involved in both would probably be now inclined to put more effort into RCEP though she had seen no evidence of that yet. “I suppose they all will. From our point of view in NZ we still want TPP to be done. “We still think it can be done but it means that progress needs to continue to be made in regional trade agreements including RCEP because it all helps build the case for the US remaining in the TPP.”

TALKING: International Business Forum representative Fiona Cooper-Clarke made a presentation to free-trade negotiators from 16 countries in Jakarta.

Although negotiators were playing their cards close to their chest, Cooper-Clarke said it was encouraging to hear consideration was being given to extending tariff reductions to all countries through a common tariff schedule. The alternative would have been a series of bilateral

negotiations that would have weakened the negotiating position of countries like NZ with smaller consumer markets and less to offer the bigger players. “It is one thing to offer a common concession but then you have to agree actually how much and by when and nobody gave anything away on that.”

Zespri unveils HQ design Richard Rennie richard.rennie@nzx.com THE community and growers will be among the beneficiaries of Zespri’s planned new headquarters due to begin construction in March. The $40 million head office included a community park open to the public as its front lawn while the ground floor of the building would be open to growers and industry representatives to visit at any time.

We are under 60 minutes from about 80% of our shareholders. David Hazlehurst From In an unveiling of the Mount Maunganui building’s design, Zespri chief financial officer David Hazlehurst said the centre was essential to future-proof the marketer against significant growth coming in the next few years.

“We are currently in a 1960s building designed to house 160 people that has 250 people and we expect to see our staff numbers grow to 340 people, with turnover growing from just over $2 billion this season to $4.25b by 2025.” The present building had only 58 car parks and struggled to cope with industry tour groups that visited by the busload every week. “We have the guests to give them a good understanding of the kiwifruit value chain with over 1000 external visitors a year plus a lot of industry-wide functions,” Hazelhurst said. The 4300 square metres building would provide a face to the industry but designers had also worked to ensure it was inclusive of the local community and growers. “We are under 60 minutes from about 80% of our shareholders. “We can communicate what consumers want all the way back to growers and want to have a facility that encourages that communication to happen.” The building was designed to be aligned to five-star energy and sustainability ratings, including a roof garden, grey water recycling, natural lighting emphasis and smart building management systems to optimise energy use.

NEW HOME: Zespri chief financial officer David Hazlehurst with a scale model of the new facility and drawings of the design concept.

Construction included the latest in sustainably sourced materials like “green mix” concrete with waste materials in its ingredients. The building’s façade was designed to incorporate some of that energy efficiency while also capturing aspects of kiwifruit vines in its design. The concept was still in play and the possibility of incorporating living kiwifruit vines had not yet been ruled out. “It is a very consultative process and we are open to input from

all our staff on their ideas,” Hazlehurst said. The present community park near the building was underused so Zespri was keen to have community consultation and involvement on how locals could make the most of the park that would rise out of the building’s creation. Before that, half the Zespri staff would have to be re-located around Tauranga to enable a major basement parking area to begin construction, followed by

the first stage of the above ground building. Designers were conscious of a 5m water table below the coastal site but Hazlehurst said the design had allowed for that in the basement carpark construction depth. Estimates were that the sea level was likely to rise by 1m in 100 years under global warming scenarios. The building had a 50-year design life with completion set for late 2018.

News

farmersweekly.co.nz – December 19, 2016

Use this

ON BOARD: A group of 24 rural industry participants has signed up to improve safety.

Farming heavy hitters sign the safety pledge A GROUP of 24 agricultural industry heavyweights has been established to try to make farming safer. The Agricultural Leaders’ Health and Safety Action Group includes co-operative processers and retailers, farming companies and producer groups. The group’s steering committee chairman Steven Carden said everyone wanted better health and safety and the idea was to learn from members’ experiences to make businesses healthier and safer and to provide tools and support for the wider industry. “A few of us got together and realised that rather than all individually grappling with the same problems there would be real benefits in working together and sharing the solutions. “If there are some simple, practical things that can make farming safer and

healthier then everyone is going to be better off.” Carden said the intention was to open membership to individual farmers and businesses and to use existing farming networks to achieve the goal of not just making farming safer but to sell NZ as the safest producer of food in the world. The plan was to use regional networks to involve farmers in improving health and safety, starting with regional workshops in the first quarter of 2017. From those workshops the goal was to agree to some objectives then try to better understand the sectors’ problems and what actions were required. Carden, who is also Landcorp chief executive, said the farming company found eight risks accounted for nearly 80% of incidents. The biggest risks were being struck by a cow in milking sheds, losing control or

coming off two-wheeled motorcycles, being struck by cattle, sheep or deer and losing control of a tractor, quad bike or side by side. Another objective was to work with contractors and determine how to keep them and farmers safe. Federated Farmers health and safety spokeswoman Katie Milne said farmers wanted more information on the causes of accidents and to have practical tools to make their farms safer. The initial members of the group were FMG, Landcorp, Ballance Agri-Nutrients, Fonterra, Ravensdown, Business Leaders’ Safety Forum, Farmlands Co-op, Ob Group, OnSide, Hopkins Farming, Dairy Holdings, Lone Star Farms, WorkSafe, DairyNZ, Milk NZ, Beef + Lamb NZ, LIC, Craigmore, AsureQuality, Silver Fern Farms, ACC, Farm Right, Ngai Tahu Farming and PKW Farms.

Sheep, beef confidence falls SHEEP and beef farmers’ confidence has taken a tumble on the weaker pricing outlook, according to the latest Rabobank quarterly survey. Slipping sentiment in the sector coincided with a pick-up in dairy farmer confidence as dairy commodity prices improved, Rabobank’s NZ country banking general manager Hayley Moynihan said. Given that offsetting trend, overall farmer confidence in their trading outlook was lower but still strong, she said. The net confidence level was a positive plus 25%, down from plus 35% in the previous quarter. Dairy farmer optimism was the highest since 2013 when average commodity prices were about the US$5000/tonne mark. General optimism in the sector was now 67% while 70% of farmers expected their own trading position to improve and only 3% expected it to get worse.

However, when the sheep and beef sector was added in, the overall positive level dropped to 39% (from 48% previously) and nearly half the sheep and beef group expected their own trading to worsen, with the net sector sentiment turning negative from positive in the previous quarter. They were likely to experience a tough year, Moynihan said. “Lamb prices have reached the seasonal peak with the lucrative United Kingdom and European Union Christmas trade now finished and returns had been about 10% lower than last year. “On the beef side, global prices are under pressure and the beef schedule is likely to weaken in 2017.” The report said the high NZ dollar, especially against UK sterling, was making life difficult for pastoral farmers, which was unfortunate because demand was improving in other overseas markets.

The pressure on the sector was the biggest contributor to the lower expectations for the broader agricultural economy. Horticulture growers remained very positive, though sentiment was slightly down on the previous quarter. They had been positive for the last five surveys, boosted by good growing conditions and especially strong pricing for kiwifruit and pipfruit in world markets, she said. Horticulturalists had the strong investment intentions, ahead of dairy farmers, with the sheep and beef farmers trailing. Dairying might have been expected to be looking at more investment given the confidence levels and continuing price increases, Moynihan said. However, with average debt at $2.60/ kg MS across the sector, many farmers were likely to put income gains towards debt reduction. The quarterly surveys involved about 450 farmers.

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12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

News

PWC fails to get mill default paid Alan Williams alan.williams@nzx.com

IN DISPUTE: A court case involving Bruce Woollen Mill continues with Primary Wool Co-operative failing to get an order for payment of a guarantee.

FARMER-OWNED Primary Wool Co-operative has failed in a High Court bid to get a $200,000 guarantee relating to the collapse of the Bruce Woollen Mill business in South Otago paid. In the court at Christchurch, Associate Judge John Matthews dismissed an application from PWC for a summary judgment ordering payment of the debt by John Robert Stevens, a director of Bruce Woollen Mill (BWM). The case was ongoing, with a further hearing

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expect about the middle of next year. The judge said evidence indicated Stevens had an “arguable defence” to being liable under the guarantee. There was evidence to show PWC caused or connived in the default “in a way which could have, and arguably did, prejudice the interests of Mr Stevens”. Two other grounds of defence submitted by Stevens against the application were not accepted by the judge. PWC had loaned the money to BWM, which provided security over the mill assets, and Stevens also signed a guarantee for the debt, applicable if the company went into receivership, which it did in October 2015. BWM also had other significant debts, including to Inland Revenue. In his ruling Judge Matthews said Stevens did not dispute that the $200,000 advance was made and that he had guaranteed repayment, nor that the debt had not been repaid in full or in part either by BWM or himself. A Stevens family trust was also a shareholder and secured creditor (ranking after PWC) in the mill company. The trust had appointed the receiver. PWC chairman Bay de Lautour was also a director of BWM. He was appointed by BWM’s majority shareholder Wool Equities, in which PWC was the largest shareholder, with a 5% stake. BWM receiver Iain Nellies eventually sold the BWM equipment and other assets to PWC for $350,000. However, in evidence at the mid-November hearing, Stevens said that before that happening he tried to get the receiver to agree to bring over an Australian expert to value the milling equipment. A preliminary discussion indicated a value of $750,000 to $800,000 (after costs) if the equipment was sold on a piece-by-piece basis to the highest bidder. Nellies did not take up the proposal. In a letter to him, Stevens said the “intent has always been to keep the plant operating in New Zealand and preferably Milton. However, we have reached the stage where the equipment needs to be realised for the best value possible”. Judge Matthews quoted a receivers’ report, issued just before the sale of the assets to PWC, that the mill and assets had been marketed but “no offers were received of a sufficient value to be able to be accepted by the secured creditors”. It was clear that the Stevens’ interests would not have been the creditors referred to, so it must have referred to PWC. “This is independent evidence supporting Mr Stevens’ view that the receiver came under the influence of PWC when deciding how to sell the assets. “The consequence was that rather than proceeding by a means which, on the limited but uncontradicted evidence before the court, may well have achieved a greater net sale price, the receiver actually sold all the plant, equipment and some stock to PWC for a sum which did not provide to the receiver enough money to meet BWM’s liability to its secured creditors”. None of the evidence referred to had been disputed by PWC during the court hearing, the judge said. While Stevens went to some lengths to try to obtain a better sale outcome “PWC was arguably influencing the decisions of the receivers on how they should proceed for reasons which the receivers say was preserving the industry.‘’ Stevens had seen that as PWC profiting from the receivership while leaving him exposed. Judge Matthews referred to Stevens’ evidence that he believed the directors of PWC had a grudge against him but there was no evidence of that or that PWC had acted in bad faith. In evidence, Stevens had also told the court de Lautour had “specifically requested” that the Stevens trust place BWM in receivership, out of concern that PWC as a co-operative should not be seen to be “throwing their weight around in the industry to place smaller companies into receivership”.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Beingmate clarity two years away IT WILL take up to two years to clarify how Beingmate Baby and Child will fare under new regulations governing infant formula in China, Fonterra chairman John Wilson says. The so-called Article 81 regulatory change means each legal entity will be allowed to have only three brands with three recipes for infant formula and that was expected to drastically cut the number of brands and labels on supermarket shelves in China from more than 2000 to about 200. The Shenzen-listed Beingmate, in which Fonterra has invested about $754 million, recently reported further operating losses for the third quarter of 2016. Following a dismal half-year performance where it reported a 214 million yuan loss, Beingmate reported negative earnings of 195m yuan for the quarter ending September 2016 and a net margin of negative 42%. Its share price was trading at 12.58 yuan, well down on the 18 yuan a share Fonterra paid for its 18.8% stake in March last year. Beingmate hasn’t paid dividends for some time. Many of the infant formula producers expected to be forced to exit the Chinese market have been clearing inventory, which has had a substantial impact on market prices and net margins in the past and current financial years. A shareholder in Fonterra’s unit fund asked for more information on the dairy co-operative’s China strategy at the annual fund meeting while the annual Fonterra Shareholders Council report has in-depth commentary on Beingmate, which it said had “quite rightly been of great interest to shareholders”. Wilson said the regulatory changes were challenging for all entities operating in China’s infant formula market but Fonterra had confidence Beingmate would come through the changes well

WAITING GAME: It is understandable shareholders are concerned about some issues in China but Beingmate is a long-term investment and Fonterra has to be in the Chinese market, Shareholders Council chairman Duncan Coull says.

and the board was monitoring it closely. “Historically, it has operated very well and every participant in that sector is under the sort of pressure Beingmate is under. “Beingmate has to grab the opportunities that present themselves because of that and that is our expectation of them.” Fonterra’s China strategy involved $1.6 billion of total capital investment in farms in China and the Beingmate partnership. Wilson said it was important to remember the investment in Beingmate was just one component of the partnership. There had been a 78% uplift in sales of Fonterra’s Anmum infant formula brand, a latecomer to the Chinese market, through Beingmate’s distribution network while production was starting to flow into Beingmate’s consumer businesses from its joint venture

Darnum plant in Australia following a lengthy delay in getting regulatory approvals. Fonterra was also starting to do some work with Beingmate to help make its own farms more efficient, using its capability to drive highquality fresh milk for the Chinese company’s own business. The Chinese farms were the only negative result in an otherwise positive annual result for Fonterra in the 2016 financial year. The 10 farms in two hubs produced an increased annual loss of $59m, up from $44m the prior year. Its level of milk production hit 230m litres, the level required to sustain a processing factory in China though Fonterra cut back on its original plan to produce 1b litres of milk from its own Chinese farms since the deal with Beingmate. The Shareholders Council

WA NG A N U I C O L L EG I AT E SCHOOL

annual report said it was important for Fonterra shareholder suppliers to view the investments in China as a whole, rather than as separate initiatives, though each investment must deliver returns to the co-op per its business case. Council chairman Duncan Coull said while it was understandable shareholders were concerned about some issues of late in China such as the stock market and regulatory changes, Beingmate was a long-term investment and China a market that Fonterra had to be in. One in four litres of Fonterra milk now ended up in China and Coull said it would be difficult to sell that amount anywhere else in the world. But the council expected to see significant returns on that investment over time, he said. It was also critical that

Beingmate adapted to the fastpaced shift to e-commerce occurring in China and that it allocated “significant resource into fast-tracking their ability in this area”. Coull said the council was also concerned about the downward trend in Fonterra’s share of the New Zealand milk market. It had dropped in the past year to 84.1% from 85.4% though overall milk volumes had grown. Fonterra and the council had strategies they were working on to try to shore up its share of the local milk pool, particularly given production was down an estimated 7% this season. “We don’t want to base our loyalty on the last payout because that leads us down a slippery slope. “We have to develop deeper connections,” he said. – BusinessDesk

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14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Land Champions

Plants to grow bigger than dairy Neal Wallace neal.wallace@nzx.com HORTICULTURE will become a bigger export earner than dairy, its leader Julian Raine predicts. As horticulture celebrated 100 years of being an organised industry and was labelled the economy’s star performer, Horticulture New Zealand president Julian Raine predicted greater things from a number of the sector’s industries. It had achieved significant milestones of employing 60,000 people and being the country’s fourth largest export earner. Horticulture NZ celebrated its centenary this year, an achievement former president Paul Hayward said in an address at the celebrations was achieved on the back of the foresight, courage, wisdom and leadership of its forebears. The celebrations marked 100 years since the formation of the NZ Fruitgrowers Federation, which had since merged with 21 other grower groups to form Horticulture NZ. Hayward described the October 1916 launch as “remarkable for its unanimity and for being the birthplace of an organisation destined to be the very hub and centre of the fruit industry”. And so it proved to be. A report by the Horticulture Export Authority said sector export earnings had grown 40% since 2014, falling just shy of $5 billion a year, adding that it was well placed to grow to $10b in exports by 2020. Primary Industries Minister Nathan Guy described it as the “star performer of the NZ economy”. “Horticulture has a goal of being a $10b industry by 2020 and they are well on the way,” Guy said. Raine, who is also a dairy farmer, agreed the sector was enjoying a purple patch as a result of earlier efforts that had started paying dividends. “We are on a bit of a roll at the moment but it has built up over time.” Fundamental to that success was the quality of NZ products, breeding programmes that enhanced that quality, investment in research and development, the ability of growers, food safety, traceability and market access. Raine said that had enabled Zespri to

become a $2b export industry and apples close to $1b. Exports of avocados, summerfruit, onions, squash and potatoes were all growing. “We are seeing not just one industry but a number of industries growing rapidly.” Raine had a bold prediction. “I predict that horticulture will eventually be bigger than dairy.” He based that on the advantages NZ growers had over those in other countries, the story NZ growers had to tell and the industry’s diversity. “I think we will overtake dairy and be in the number one export spot with a range of products.” Today’s horticulture sector was more resilient and diverse, backed by a broad marketing effort led by what Raine called NZ’s only global consumer brand, Zespri.

Horticulture has a goal of being a $10b industry by 2020 and they are well on the way. Nathan Guy Primary Industries Ministry Horticulture NZ represented the 22 producer groups in four areas: biosecurity, natural resources and the environment, attracting people to the sector and engaging in regulations. Hayward recalled that in 1916 growers recognised the need to control their destiny, to fund industry-good activities and to represent the interests of growers, which gave rise to the federation. That was done through an orchard tax of one shilling a planted acre, which was introduced in 1923 and controlled by the Government. The Orchard Levy Act of 1953 gave control of the money to the federation. In 1920 it established a trading arm to raise revenue but to also supply growers with equipment and supplies at reasonable prices. “The federation pursued this plan for the next 50 years which also included manufacture of sprayers and packhouse

OLD SCHOOL: The first meeting of the Fruitgrowers’ Federation in 1916.

equipment, fruit tree nursery and provision of seasonal finance.” Hayward said that by 1978 the industry was growing rapidly and the federation realised it could not be everything to everyone and it needed to change. It started divestment, beginning with fruit tree nurseries. In 1948 the Apple and Pear Marketing board was established but the 1978 Massey Report warned the pipfruit industry did not have a future, prompting the introduction of a grower levy. In 1982 the Citrus and Subtropical Councils amalgamated with the federation and three years later Fruitfed Supplies was formed, a commercial joint venture with the Apple and Pear Marketing Board to supply growers with products and services. The 1988 federation annual conference was a significant event at which growers agreed to 12 resolutions that asked the Government to establish the Kiwifruit Marketing Board. But three years later growers were fighting to retain the board after a disastrous marketing season that required the federation to contribute to a review. A new mandate for the board ultimately led to the establishment of Zespri. By 2002 discussions began with the federation, Vegfed and Berryfed. They led three years later to the establishment of Horticulture NZ. “Over 100 years the federation has built credible working relationships with a whole range of groups from Parliamentarians, government agencies, research facilities, universities, fruit tree nurseries, education and training sectors and other farming groups,” Hayward said. But as with those early days, the authority said the sector faced challenges, not least of all tariffs. In its two-yearly report, the authority calculated the tariff burden for 2014 at $190 million which was 22% less than the $241m it cost in 2012. It said NZ’s nine free trade agreements were delivering benefits. “This report confirms the real value of benefits from our trade agreements and our need to sustain efforts developing new agreements to maintain our international competitiveness,” authority chief executive Simon Hegarty said. An estimated 60% of the country’s fruit

BIG AS: Horticulture New Zealand president Julian Raine predicts horticulture will become the country’s biggest export.

and vegetables were exported but Hegarty noted non-tariff obstacles such as sanitary and phytosanitary measures and technical compliance were increasingly blocking trade. It was an issue Horticulture NZ chief executive Mike Chapman said could affect the sector’s growth and aim of being a $10b export earner by 2020. “NZ’s wealth is driven by our exports and anything the government can do to improve our ability to export adds to our country’s wealth,” he said. Raine said the sector faced several challenges including uncertain trading conditions following the Brexit vote and election victory of Donald Trump. Climate change would affect the sector as would genetically modified organisms in food and disruptive technology from new products mimicking food. The use of water, land availability and pollution were other issues facing horticulture in the coming years. In 20 years time Raine believed there would be more branded products such as Rocket apples and Proper crisps and new products such as red kiwifruit along with some that haven’t even been thought of yet. Robots and drones would be integral and mean staff would need new skills.

CURRENT CROP: Horticulture NZ’s class of 2016.

Land Champions

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Keeping the show in the Black Alan Williams alan.williams@nzx.com WITH their son poised to take on the top job, Bryce and Vicki Black say next year will be their last in an active role at the Canterbury A&P Show. “We think it’s a good time to finish and we’ll keep out of his way,” Bryce said. His grandfather was A&P society president in 1935, his own father got him involved and Bryce and Vicki’s son Tim will take on the president’s role in two years’ time. Bryce, now 86, became the main horse ring announcer in 1947 and retired only about 10 years ago. He’s trained all the announcers who have followed, including Tim, who is one of the main announcers now, as well as being the A&P junior vice president and head of the wool section. Bryce still takes his caravan in from Tai Tapu each year and parks it at the show ring entrance to show he’s not gone away. Vicki started competing with her horses at the show in the mid-1960s. There’s a photo in the A&P archives of her competing in 1966. When her competition days ended she took on volunteering

roles as well . . . as mounted ring clerk for a time then helping with the announcing alongside her husband. When Bryce retired she continued, helping one of his proteges, Justin Brown, calling the horses into the ring and still does that. “He still goes there and tells Justin and me what to do,” Vicki says.

It brings the town and country people together. Bryce Black Volunteer Bryce admits he sits in the caravan and gives orders “but no-one listens”. “We call it Bryce’s Box and I see all the old faces there. “They come and see me every year.” In everyone’s eyes, Bryce and Vicki are regarded as absolute stalwarts of the show. Bryce was awarded a silver water jug in 1988 to mark his 40 years of service then in 2004 became the Canterbury A&P Show’s inaugural Show Legend winner.

With a show history dating back so far, surely they must have met there? “No,” Vicki says. That happened the night before the Little River show in 1964. Bryce was a lamb buyer for Borthwicks based in Little River at the time and she and a friend had ridden their horses over from Wainui to be ready for competition the next day. Vicki’s story is that they were riding against each other at the show. “I beat him that year and he hasn’t forgotten.” Plenty of personality is the key to being a good ring announcer, to keep everyone interested, Bryce says. “Someone said to me that I should write a book with all the stories I’ve told.” After working for Borthwicks he managed a farm at Waiau then worked on the Department of Scientific and Industrial Research farm at Lincoln before retiring 26 years ago. However, the Canterbury show is never out of his system and even after they finish with the horse ring next year they’ll keep going back to the show itself. “It’s a very big event for Canterbury. It brings the town and country people together.”

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WINNERS: Vicki and Bryce Black with memories from shows past.

16 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Land Champions

STAND UP: Steve Maharey, delivering his last graduation speech, encouraged his academics to speak out and promised to back them provided they had the evidence to support their claims.

Shoot for the moon, Maharey says Richard Rennie richard.rennie@nzx.com IF the primary sector has the chance for a “moon shot” goal then departing Massey University vice-chancellor Steve Maharey might prove to be the primary sector’s lead astronaut. Maharey admits the one thing that has got his feet out of bed every morning for the past eight years is a belief New Zealand can become highly prosperous, supplying quality food to the 60 million people on the planet prepared to pay a premium for it. But to get there NZ needed a version of United States president John Kennedy’s “moon shot” goal, the one that inspired a nation to get to the moon before the decade was out. For NZ the goal was for the country’s name to be synonymous with high-quality food meeting expectations at every step of the value chain, not only in how it was grown but also in how it was packaged, marketed, distributed and identified by its final consumers. Kennedy’s moon shot goal spun out to produce a country with the highest calibre of rocket scientists, engineers and aeronautical innovators. Maharey maintained the same sort of spin-off benefits would accrue as New Zealanders started thinking of themselves as high-

end food producers, building a suite of skills around every aspect of production and marketing rather than just the first step, farming. “And I think we are very much on the cusp of that in regions like Marlborough. “There is a recognition of the role food plays in the regional economy and how it can transform that economy as all the individuals within it work to that goal of producing the absolute best they can to take to the world.” But he also saw the potential for regional food identities to work hand in hand with tourism, encouraging people visiting here to spend more on the same highvalue food they could buy when they got home. And it was an effort Maharey could take some credit for in his eight years as Massey University vice chancellor. Before stepping out of politics in 2007 he was minister of social services, broadcasting, education, research and youth affairs and reached the heights of fourth senior minister in Helen Clark’s cabinet. Despite the lack of “primary” in any of his cabinet titles, Maharey has managed in his time running Massey to turn the spotlight back onto the university’s agricultural roots. But he also managed to weave the rest of the primary sector’s

value chain into the university’s perspective, all captured under “food” rather than farming alone. “That has come about in part by talking a lot more about food rather than just about farming. “The message has been we cannot really make a living out of selling commodities and I am delighted with how the university has picked up from agriculture to move to agri-food to move right up the food chain.”

We have a lot of innovative products that just cannot get to scale and end up only selling into a relatively small NZ market. His championing of food expertise was also evidenced in the university’s support for Palmerston North’s FoodHQ as a centre of excellence for food industry innovation. That was backed by the university’s support of the NZ Food Awards to showcase the champions in food production and innovation. This year Maharey himself received the inaugural “services to the food industry” award for his commitment to and vision for the sector.

Maharey was convinced there was plenty of innovation and energy in the food sector but less so of its ability to make the leap into the wide world of global sales. “We have a lot of innovative products that just cannot get to scale and end up only selling into a relatively small NZ market. “That lack of avenue to scale is what will stop us achieving that moon shot.” While the wine industry had overcome that more often than not through foreign ownership he would rather see ownership retained locally and with it the innovative personalities and talent that started the ventures in the first place. Getting that scale was difficult but one company he saw as probably being able to make the leap out of the NZ nest was Lewis Road Creamery. “I suspect they now have the domestic base to go to export but too many are finding it difficult to make the jump.” He leaves Massey with roll numbers “gently” ramping up and he was confident many accounting, marketing and general science undergraduates would have their eyes open while there to the opportunities food production could bring to their careers. But his reign at Massey was also characterised by a benevolent

tolerance for his academic staff speaking out on sometimes controversial issues. Fresh water ecologist Dr Mike Joy led that charge, frequently sparring with dairy industry leaders, media columnists and other academics on the state of the country’s waterways. Maharey has no misgivings about staff fighting from their corner. “I have said to my academic staff I want you to be a public intellectual. “The university cannot agree or disagree with you. “What we are saying is as long as you can back your expertise with evidence, we will back you.” Despite some “heavy” exchanges with parties wanting the university to take a stance on certain issues he has never had second thoughts on the hands-off policy. Maharey said he usually ensured he had another job to go to before leaving the one he was in. However, this time around he admitted leaving things open, at least in terms of commitment to any one organisation. But he acknowledged his passion for a prosperous, productive food sector meant he was more than likely to continue pushing to see NZ achieve its moon shot sooner than later.

18 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Land Champions

Addressing hard choices with science Richard Rennie richard.rennie@nzx.com HAVING grown up with seven siblings Alison Dewes is no stranger to getting her voice heard and this year that voice has been heard more often and more stridently than ever before. The vet, ecologist and farmer has become the Jiminy Cricket conscience of farming while carefully explaining the intricacies of stocking rates, nitrate losses and diffuse discharges to a wider public. Her reasoned arguments have outlined why farming needs to step back from a proverbial cliff, from which a tumble will inflict social and environmental costs to the whole country. Dewes has brought a rock-solid, trans-disciplinary background to her arguments that have increasingly made her the got-to choice for both mainstream and rural media seeking comment on water quality issues and farming’s link to them. She agrees this year has seen a spike in that but points out there have been five years of quiet argument put forth before this year. However, the stridency of her case for reviewing farm systems has been stronger this year, thanks in part she believes, to a culmination of disruptive trends all coming together that threaten to derail modern farming systems, regardless of critics, legislation or markets. “I think we are reaching a sort of tipping point. “We are seeing an alignment of things including climate change, technology disruptors, concern over animal welfare, debt and pollution levels all over the country. “This year, that has come together because it sometimes takes a couple of tough years to prompt some navel gazing and soul searching. “You could argue the bonds are tightening around conventional farming systems and I have just had a heads-up a bit earlier than most.” That heads-up has come from a broad experience in farming that means Dewes cannot be simply dismissed as either uninformed or ignorant of modern farm systems and how they work. After training as a veterinarian she spent some years working for Anexa in Waikato while also sharemilking with her husband Mike. In the mid-nineties they shifted across the Tasman, ultimately buying and selling three farms including two dairy operations in Victoria near Warrnambool. She would also work as a quality assurance officer for Nestle milk processing while there. Her experience in Australia gave her an appreciation of the value of scarce water in a region that received only 650mm of rain a year and how best to manage it and protect it as the country grappled with crippling drought at the time. “Coming back in 2009 and

FATHER KNOWS BEST: Alison Dewes learnt from her vet father Harry Dewes to argue the point not the person and to back up claims with applied science.

seeing how we were using our own water resources, the contrast was huge. “I think we sometimes dismiss farming in Australia but they have developed better and careful management and allocation systems we are only just starting to address now.” Her time in Australia also included a stint with the Commonwealth Bank lending to farmers. That led to an understanding of the Australians’ wariness of debt that puts their average farm mortgage at half that of NZ farmers. This, in turn, came from an appreciation of commodity volatility coupled with water scarcity. Dewes’ realisation of how far behind NZ was in addressing water quality and allocation provided the prompt for her to return to university, studying at Waikato for a masters degree in science, ecology and environmental policy from 2012. That coincided with her also starting to voice her views on the pathway NZ farming and dairying in particular was heading down

with its increased stocking rates, greater inputs and a growth-atall-costs approach. Interestingly, in a debate that can get heated and even personal Dewes has managed to steer relatively smoothly around the usual barbs that get thrown. She points to her family background where her father Harry Dewes taught his many offspring to argue the point, not the person, and always back up claims with applied science. He was himself a renowned veterinarian, described as a lateral thinking expert in finding solutions to animal health problems, particularly in relation to trace elements. His views were also steeped with an appreciation of the need to be generous and appreciative of what one has. “He died never knowing who the philanthropist was who provided the funds for him to attend vet school in Sydney. “He came from a family that lost everything in floods during the 40s and he always encouraged us to take every chance that came our way.” He bred a talented clan that

included two veterinarians, professor of peace studies Dr Kate Dewes, a couple of physiotherapists and a doctor. The children’s talents were reinforced by significant doses of social capital and time invested by their music-teaching mother. Dewes is part of a growing tranche of trans-disciplinary individuals recognising that farming needs to reach beyond its traditional silos of knowledge to adapt to the pressures coming on it. She counts as a peer Amanda Bell, also a vet, fourth generation farmer and partner in her newly formed Rongoawai group working to optimise farm, land, water and social balances in farming communities. Dewes also regards Corina Jordan, recently appointed environmental manager for Beef + Lamb NZ as being of a similar ilk and background. Like her she crosses ground between the nuts and bolts of animal health and the challenges of environmental management in farming catchments. All are driven by a concern that NZ needs a vision for pastoral

I think it is more rewarding these days to be working with people who are engaging with the changes that need to be made, rather than fighting those who are not. agriculture that it presently does not have. More recently Dewes has opted to focus on the positives within farming systems. Through her Rongoawai business she is consulting farmers committed to lowering nutrient losses while still maintaining good profitability and sustainable farm systems. “I think it is more rewarding these days to be working with people who are engaging with the changes that need to be made, rather than fighting those who are not.”

Land Champions

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Versatile advocate for farmers Glenys Christian glenys.christian@nzx.com IT WAS the issue of sharemilker housing that spurred Penny Webster into action as an advocate for farmers. And since that debut 30 years ago she’s been Auckland Federated Farmers’ president, ACT member of Parliament, Mayor of Rodney and, most recently, chairwoman of Auckland City Council’s finance committee. She was born in the United Kingdom but her family settled in Hamilton in the 1950s. She trained as a primary school teacher after her OE, working in Kihikihi and Te Awamutu and raising her four daughters. After a move to Ruakaka she met Malcolm who had one son and two daughters. They’re now proud grandparents of 17 grandchildren between them. They went 50:50 sharemilking together at Maungatoroto and then Titoki. “My parents couldn’t believe I was milking cows,” she said. Malcolm was already a Young Farmers member so encouraged her to get involved, leading her to attend a Sharemilkers sub-section conference in Auckland. “I listened to a woman talking about the state of sharemilker housing and I couldn’t believe what I was hearing,” she said. “It was shocking. “I got up and said they had to insist their houses had running water and flush toilets.” The couple bought a 320 hectare sheep and beef farm at Hoteo on the Kaipara Harbour with two other partners in 1989. Malcolm planned the conversion and the couple sharemilked the property. But it wasn’t long before Penny attended a Federated Farmers’ meeting at Kaipara Flats, sat at the front and was elected its

representative at the Auckland province’s meetings. She went on to become Auckland president for six years. “The Resource Management Act had just come in and I was working with the council and farmers who were pushing back all the time,” she said. Auckland and Rodney were growing rapidly and farmers were seeing their land eaten up as well as coping with reverse sensitivity issues when all they wanted was a commonsense approach.

The last thing farmers need is council making them unproductive. Penny Webster Advocate She has seen some of the same problems repeating themselves with the Waikato Regional Council’s Healthy Rivers Wai Ora plan, championing farmer choice as to how nutrient leaching limits from their properties are reached rather than rules about land use options being imposed. “People don’t understand how much monitoring already goes on,” she said. Her answer back in the mid-90s was involvement in the setting up of the Awhitu Landcare Group, one of the first in the country, and the Auckland Regional Council’s Rural Advisory Panel. “I’ve always worked on the basis that we can do this if we come together and understand each other.” Her next move was into national politics when she got a call asking if she would be interested in standing for ACT.

At number eight on its list she never thought she would get in but served one term. And though she was on the Transport Select Committee she describes it as perhaps the most unproductive time of her career. In 2002 they sold their share of the Hoteo farm and bought a house at Snells Beach with Malcolm becoming a fencing contractor. But rather than having time to play golf, as she’d hoped, in 2004 she was approached to run for the Rodney Council. There she found divisions between farmer ratepayers and council staff who didn’t understand farming. In 2007 she became mayor when the previous mayor stepped down. “I really enjoyed that time as you could do things,” she said. Two moves she made were to divide the council’s area into east, west, north and south and appoint a senior planner to project manage resource consent applications, along with appointing independent commissioners. “There were better outcomes and things ran much more smoothly.” Amalgamation to form Auckland City Council in 2010 created more tensions between rural-based areas to the north and south of the city. As chairwoman of its finance committee for two terms she had to keep thinking of the bigger picture and be aware of the city’s many competing interests, saying it’s become a whipping boy for all sorts of issues. “I sometimes say Auckland’s 70% rural with a big parking lot in the middle,” she said. “The last thing farmers need is council making them unproductive.” Despite losing her seat at last

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RELAXED: Penny Webster at her Snells Beach home.

year’s elections she was very proud of her role in getting the council in behind the Ballance Farm Environment Awards and the Rural Advisory Panel’s “huge input” into its regional plan. She was co-chair of the Sea Change Spatial Plan for the Hauraki Gulf released in mid-December and also on

the national council of Local Government New Zealand where she chaired a working party looking at alternative ways to fund local government. And while she might miss the cut and thrust of council debate she certainly won’t miss the drive to that big parking lot every Monday to Friday.

Land Champions

20 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

No more bids for Emotions ran high as the last lamb went under the hammer at the Tinwald saleyards, marking the end of a 138-year era of trading sheep at the Mid Canterbury selling centre. Annette Scott was there.

EMOLITION of the Tinwald sale yards began before the last animals passed through its pens. Now calls of bidders, agents and auctioneers have died on the Mid Canterbury wind the five-hectare block of land owned by PGG Wrightson will be sold. The first recorded stock sale in Ashburton was held in 1864 at The Yards, Turtons Hotel. The first official livestock sale at Tinwald was on August 20 1878 in yards built on half an acre and designed to hold 400 cattle and up to 40,000 sheep. Sales were held fortnightly between the Ashburton Yards on one side of the Ashburton River and Tinwald on the other, in the days before there was a bridge. The Ashburton Yards were closed in 1919 and from 1920 until December 13, 2016, all livestock sales were held at the Tinwald hub. The first multi-agency association was formed in Mid Canterbury in 1940 to manage the saleyards. Members of the saleyard company included National Mortgage, New Zealand Loan Society, NZ Farmers, Wright Stevenson, Dalgety and Co and Pyne Gould Guinness. At the time of closure and for many years prior, the saleyards complex was

solely owned by PGW, which pulled the pin, announcing the closure of the saleyards back in September. Until the mid-1960s sheep bought for the local meat market were driven over the Ashburton River bridge and through the town to the local abattoir at the northern town boundary.

The cows have taken over. The locals had no say, the hierarchy called the decision. It’s not right but what do we know. Hugh Weir Farmer Increased traffic and faster vehicles put a halt to that but in those days the butcher trade was the biggest part of the weekly sales. Over the past 40 or so years the weekly sales have been mostly prime and store lambs from local farmers while the annual ewe fairs continued as seasonal feature events with cattle sales remaining hardy annuals in spring and autumn. In the 1980s heydays of sheep in Mid

Canterbury more than 300,000 head of stock traded through the Tinwald yards every year. But it has been many a year since the yards were full on sale days, PGG Wrightson livestock manager Greg Cook said. Stock numbers had continued to decrease as the focus of Mid Canterbury farming moved away from sheep and beef toward arable, dairy and dairysupport farming. “It was a big social event every Tuesday with farmers, agents and buyers coming together to catch up for a yarn. “Now only a dozen or so people attend the weekly sale as the buying is often done through livestock agents rather than by farmers themselves,” Cook said. Environmental regulations, animal welfare and health and safety compliance all played a big part in the decision to close Tinwald. Where stock would now be sold was being taken into consideration as plans unfolded. “We are very aware this will be a big change. We are working on solutions for all sellers and no one in the mix will be forgotten,” Cook said. The closest PGW saleyards for Mid Canterbury stock would now be Temuka or Canterbury Park.

LAST STAND: Together in Tinwald’s selling pens for the final time, Gre

No more yarns NEVILLE Holmes has an association of more than 60 years with the Tinwald saleyards. The retired Rokeby farmer was selling his two-tooths at Tinwald when there would be 35,000 yarded for the annual ewe fair.

He admitted his personal challenge each year was to top the market with his Border Corriedales. “I did it a couple of times so that was a bit of a bonus,” Holmes said. “I am absolutely gutted now it

has come to this. I still turned up every Tuesday for a yarn and a catch up. “I will really miss that and instead I will be at home now cursing and swearing about why this shouldn’t be,” Holmes said.

NO MORE: Hugh Weir, 84, sells lambs for the last time at Tinwald.

‘It’s not right’ FOR Methven farming and dog trialling stalwart Hugh Weir the closing marked the end of an era for sheep farming in Mid Canterbury. “The cows have taken over. “The locals had no say, the hierarchy called the decision. “It’s not right but what do we know,” the 84-year-old said. It was the end of a second sheep selling era for Weir who started buying and selling breeding

ewes through Tinwald when the Methven sale yards closed in the early 2000s. “It’s the nail in the coffin for the sheep industry in Mid Canterbury,” Weir said. Retired these days and running a few sheep on a three-hectare lifestyle block he was supporting the final Tinwald sale. “I had eight good prime lambs ready to go so I thought they better go in this sale.”

MANY YEARS: Farmer Neville Holmes, left, spent 60 years buying and selling at Tinwald with agent Tom Simmons for the last 22 years.

Land Champions

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Tinwald FOLLOWING SUIT: Veteran stock agent David Bruce laments the closure ahead of his own retirement next year.

‘It’s not progress’ THE final chapter of the Tinwald saleyards’ 138-year history was hotly debated as the ring of the auctioneer’s chant echoed around the livestock selling centre for the final time. December 13 was a sad day – a day most who turned up to honour the occasion said should never have come about. “It’s a sad day,” PGG Wrighston Mid Canterbury livestock agent of 50 years, David Bruce said. “They call it progress, we don’t,” the highly respected local identity said. “In 50 years I have worked with a tremendous amount of agents and clients. I will miss them all,” an emotional Bruce said. Come April, Bruce will also call it quits.

“It’s time to go but I will see the season out,” he said. Retired Mid Canterbury livestock agent Tom Simmons described the closing sale as a “sad affair”. “We have lost the hub of a sheep industry that has been known over the years for its farmers who produced some of the best sheep in the country,” Simmons said. “People all over the South Island came to Tinwald year after year to buy ewes bred by top class Mid Canterbury breeders. “While it’s following the meat industry trend it’s not helpful to the cause. “I feel for the farmers, they have very limited selling options now,” Simmons said.

eg Cook, left, and David Bruce clocked up a combined 74-years experience.

LAST CUPPA: Ann Craig, left, and June Steenson have enjoyed serving up the refreshments to sale yards customers – even the cheeky ones.

FINAL TIME: Old hands, from left, Trevor Addis, Neil McEwan, Selwyn Ride and Moss Tait clocked up more than 120 years combined as they celebrated the final hurrah at the Tinwald sale yards.

Crumbs! No more scones FOR 25 years local women Ann Craig and June Steenson have done the catering for all the Tinwald sales. The “catering ladies” not only whipped up the pikelets and scones, stuffed the sausages, cooked the chicken drums, baked the fruit cake and crafted the infamous club sandwiches but also shared many memories and friendships. Putting on their brave faces the pair laughed about the odd

misdemeanour over the years and recalled memories of the many farming families, some several generations, and agents, even the cheeky ones, they served hot drinks and food to for the past quarter century. “We will miss it and everyone heaps,” they said. For June it will be a chance now to lower her golf handicap and for Ann, “there will be more volunteering to pick up”, she said.

22 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Land Champions

A Gent of change for Kaipara Hugh Stringleman hugh.stringleman@nzx.com TWENTY-FOUR years in governance roles has taken Northland farmer Greg Gent around the world and back to his home in Kaipara District where he is now mayor of a formerly troubled and still heavily indebted council. The citizens of Kaipara District were not going to look a gift horse in the mouth when Gent rather unexpectedly announced his candidature for the recent local government elections. He outpolled three other mayoral candidates by a considerable margin. Yet Gent did not stand on a platform save that of good governance and his own record. He had no projects to promise and erected no billboards.

Interest rates are historically low and they won’t last that way for ever – our debt has to come down but that means other things don’t get done. Greg Gent Kaipara District Council He was entrusted by the voters to re-establish local direction over the only territorial authority among 67 in New Zealand to be run by government-appointed commissioners for the previous four years. Administration followed bitter factionalism and crippling debt leading to deadlock, caused in large part by the multi-million dollar overrun on a sewage scheme for Mangawhai, the second-largest settlement in Kaipara. Although one of his mayoral opponents led the Mangawhai rates revolt, Gent was not interested in re-running that battle but on moving on democratically. There was no getting away from the dichotomy of Kaipara, he said, being east and west communities of interest. The mayor and eight councillors have very little previous local government experience – one of the reasons why central government left a Crown manager and a Crown observer in place

to help with legacy issues and transition. Gent said it would have been irresponsible for the Government to have left Kaipara without some oversight but it did not receive any financial assistance different from that given to all district councils. The chief executive, Graham Sibery, had begun only in July and the council was a $60 million a year business with more than 100 staff members, making it one of the largest employers in the district. “We are spending the time before Christmas gelling as a group and getting ourselves all up to the same state of knowledge, about everything. “It is a diverse group but they all have to be financially literate – that’s non-negotiable.” The major decision before the people of Kaipara was the appropriate level of debt and how quickly the council moved to that number. Gent said the discussion needed to include the capital expenditure priorities for the future, especially what must be done. Of the urban areas, only Dargaville and Ruawai had both reticulated water and sewage while the other towns were yet to get full services. The raw numbers said Kaipara owned $65m but made no mention of the reduced ability of ratepayers in a lower socioeconomic district to manage repayments, Gent said. “Average household income in Dargaville is under $30,000 so we have to make a judgment call on what portion of council income goes on debt repayment and for how long. “Interest rates are historically low and they won’t last that way for ever – our debt has to come down but that means other things don’t get done.” Engagement with his new constituents doesn’t hold any fears for Gent, who said in his experience friends, family and casual acquaintances didn’t buttonhole him with their pet peeves. The degree of ceremony and the length of meetings were some things he would have to get used to. But he told council staff to put away the mayoral cloak and chain because he wouldn’t be wearing them. In his very short time in local government, Gent said it was easy to see where councillors could get into trouble. During their four years in

ON THE BRIDGE: New Kaipara Mayor Greg Gent of Ruawai is an experienced company director and dairy farmer. Photo: Hugh Stringleman

control, the commissioners had stabilised the council, introduced financial systems and accountability and brought a lot of jobs back in house that had been contracted out previously, with consequent lack of control and loss of intellectual property. “They were able to say no. The new council, me included, are also going to have to say no.” Gent began his governance career in 1993 when first elected to the board of the Northland Co-operative Dairy Company, of which he became chairman two years later.

He also served as executive chairman for a period and had to close the Dargaville nutritional products plant in 2000 with the loss of 94 jobs. He proceeded to chairmanship of Kiwi Co-operative Dairies after Northland merged with Kiwi and South Island Dairy Co-operative in 1999. Gent was then an inaugural director and deputy chairman of Fonterra Dairy Co-operative from 2001, retiring after the maximum 12 years or four terms. He was still chairman of Southern Cross Health Care,

chairman of Dairy Holdings, a former chairman for seven years of Farmers Mutual Group, a deputy chairman of Plant and Food Research and a former director of the Northland District Health Board and Equestrian NZ. He has been a keen, competitive horse rider though without time to participate now and with wife Ann Flood and four adult children owns four dairy farms at Ruawai. Fortnightly, Ann and he relieve the staff members on two farms, including the early starts for milking.

Land Champions

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Banker values respect, loyalty Neal Wallace neal.wallace@nzx.com IN EARLY January 1967 Allan Swallow boarded a train in Mosgiel, which took the schoolleaver over the hill to Dunedin and a job at government agency State Advances. Fifty years and several reincarnations later, Swallow will retire in April from the ANZ Bank and a career wholly based in Otago during which he has observed the highs and the lows of modern agricultural history and rural banking trends. They include being seconded during the economic reforms of the 1980s to work with farmers struggling to keep their farms afloat, squeezed by eroding equity, rising costs and interest rates and falling incomes. A decade later he witnessed the start of the transformation of traditional sheep and beef farming to dairy in areas such as south Otago and saw his total client loan book in the early 1990s rise to the equivalent of a single loan today. He has seen the focus of discussion with clients shift from investing in land development to funding water and environmental projects. He has seen how the 2007-08 global financial crisis introduced a raft of regulatory changes affecting banks and their clients and how the recent dairy correction shifted the focus of farmers to aspects other than growing production. Swallow says the common themes throughout his banking career were establishing relationships, respect and loyalty. “Nothing really has changed there,” he said. But all that lay in the future for the Taieri High School graduate who started his working life as an administrator at State Advances, a government agency that arranged loans for housing and farming. Swallow had completed an agricultural course while at high school but recalled the school’s career adviser gave him options of only government department jobs. The one he got involved administering farm funding and saw him shift to the Rural Bank when State Advances was split in to the bank and Housing Corporation. His Rural Bank job included processing the government’s livestock incentive scheme and land development loans, agricultural production encouragement policies of the former Prime Minister Rob Muldoon to grow the economy. Swallow said the taxpayer injection transformed the rural landscape, turning scrub to pasture and funding the upgrade of infrastructure such as new woolsheds and covered sheep yards. It also funded onfarm irrigation works as part of the governmentfunded lower Waitaki irrigation scheme in North Otago and the Maniototo scheme in Central Otago. In 1984 the David Lange-led

CLOSING THE BOOK. ANZ agri relationship manager Allan Swallow, left, from Dunedin is about to retire after 50 years working in rural banking so will no longer have chats with long time clients like Brian Keighley.

The client’s motivation becomes your motivation. Andrew Swallow ANZ fourth Labour Government was elected and found an economy in strife. One of its first initiatives was to cut taxpayer support of farmers. But by 1987 its economic reforms were taking a toll on farmers laden with 24% interest rates and low returns and Swallow was seconded to a mortgage restructuring role to visit those struggling the most. Options were to restructure their business so they could continue or arrange a dignified exit. “I had the unenviable task of giving people exit grants of roughly $20,000 if they had no equity. The cash and their tools were a chance to go to town and start over again.” He recalled that for the next six years he visited and worked with about 200 farmers throughout the South Island except in Marlborough and Canterbury

and said he soon learnt how to deal with an incredibly stressful situation. “I learnt very early on to get alongside them in their own homes. Getting invited in their home was seen as more human.” The other secret was to include their spouse or partner as they discussed options. Many were able to continue to farm but Swallow said it was a huge regret that he didn’t keep records and follow up what happened to them. It was while doing that job in the late 1980s that he learnt of the bank’s sale to Fletchers as part of the government’s annual Budget announcements. Three years later he had yet another new boss when it was bought by the National Bank. A decade later that bank was bought by the ANZ. By the early 1990s Swallow had moved into rural lending, initially looking after coastal Otago clients. For the last 23 years his patch was south Otago, an area he described as a reliable farming climate with some exceptionally high-performing farmers. In the latter stages of his career he was dealing with many second generation clients but he felt it important he did not take for granted that the new farm owners

wanted to deal with him. So he gave them the choice, continue having him as their banker or get someone else. Most stayed. In recent years he has noticed property amalgamations have reduced the number of farm owners and in the last few years there were fewer sharemilkers. “They are still there but the old adage of going to 50:50 sharemilking then buy a farm is increasingly difficult.” The scale of business and the prices of land and Fonterra shares were obstacles but equity partnerships had become another avenue to farm ownership. While the fundamentals of his job remained built on relationships, trust, respect and loyalty, the need to understand clients wanting to invest in a project was another aspect of the job that had not changed. It required finding out where their business was at and ultimately whether it would work. “It is about having all the information to enable them to come to a conclusion after looking at all of the evidence.” Swallow said that came down to the relationship, trust, respect and loyalty between the banker and the client. Watching his clients succeed

was a huge reward. He recalled a sharemilking couple buying their first farm and having the wife tell him one of the motivations was for the family to have their own kitchen after having nine during their sharemilking career. “The client’s motivation becomes your motivation,” he said. Swallow is from the old school, learning banking and finance skills on the job to the point he was comfortable dealing with the most complex set of business accounts. “I’m not over-qualified,” he quipped. The bank’s Otago senior relationship manager Bill Hodgson said that reflected his ability to listen, learn, focus and prepare in whatever he tried. Swallow said he has never dreaded getting out of bed and heading to work and now he was about to embark on retirement the bank had allowed him to make that transition by working short weeks for the past year, something he “appreciated immensely”. When he eventually finishes in April he will be kept busy with lots of outside interests including golf, fishing and whitebaiting, family and bowls, which his wife Janet was also heavily involved in.

Land Champions

24 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

You do your bit then stand aside Alan Williams alan.williams@nzx.com

HARD BARGAIN: Norm Williamson was part of the team that negotiated with Treasury to buy the Amuri water scheme. Treasury started at $26 million and settled for $580,000.

Treasury started out wanting $26m, Williamson said. After 18 months to two years of negotiation, the deal was done . . . at $580,000 plus taking over the liabilities. “They wanted the farmers to be the owners but the message they gave us was that they would find other buyers if they had to,” he said. “In fact, on a discounted cashflow basis, it was not producing any money. There was never a very big figure dropping out as profit.” When the schemes were set up, the Waiau was meant to have a supply cost to farmers of $13.50/ ha a year. Cost overruns took that to a massive $160/ha that no-one could afford. When the farmer company took over, the supply figure was set at $28/ha. “Getting that was our best step, a big achievement for Amuri farmers and it gave them control.”

At that time only about 9000ha of the 21,000ha scheme area was operating with irrigation. Earthworks for the border-dyke system of the day were expensive and took a long time. After the acquisition, farmers came back on board and with that came banking confidence then the dairy growth took off. There were nine dairy farms in the Amuri Basin in 1990 and about 36 just two years later. Now there are nearly 80 dairy farms. Bringing in new farms resulted in greater efficiencies, including reduced nitrate leeching, as the pipe scheme completed the move to virtually 100% spray irrigation from border-dyke. A highlight from Williamson’s time as chairman was the appointment of a general manager, reflecting the changes during the last six or seven years as development and environmental issues and the

expectations of the wider community required a more professional approach. “We needed a manager to push us in the right direction as we worked on our vision and strategy and the new piping scheme is a reflection of that with the overwhelming shareholder vote in support.” Amuri was being very well served by the incumbent, Andrew Barton, on issues such as regional plans, environmental presentations, the Hurunui management plan and other topics under the Canterbury Water Management Plan. Amuri had its nutrient budget well managed, dictating the level of nitrate discharge and all farmers under the scheme had an environmental plan, subject to auditing, Williamson said. “We’ve a very high level of irrigation efficiency now and we use the moisture readings onfarm to ensure that you’re

Letterof theWeek

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only irrigating when you need to be. The environmental plans and the audit are always improving.” Though the irrigation company hadn’t been set up to make profits, the returns were being provided in full to the farmer shareholders and overall wealth of the region, he said. The gains were also reflected in the diversity of the area, with the different nationalities involved in working there. Williamson arrived in North Canterbury in the mid-1980s after a post-graduate career in farm advisory and agriculture education and sharemilking in the North Island. He went to Culverden to manage one of the first dairy conversions there, running sheep for the first year before the borderdyke irrigation and dairy shed were established. From that, he moved into sharemilking and farm ownership.

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NORM Williamson wants to look back in five years and be able to say the board of Amuri Irrigation Co has done better than the one he led. This from the man who negotiated the purchase of the Amuri scheme from the Crown in the late-1980s and chaired the farmer-owned business for about 16 years up to his retirement a few months ago. “That’s what I want because it means we’re always making progress,” he said. One of Williamson’s last jobs as chairman was to sign off on the $85 million upgrade, involving new piping infrastructure, extending the land area that could be irrigated and which should future-proof the scheme for at least the next generation. The pipes were being laid now and were over-sized for current needs, giving the potential for both hydro-power development and water storage. That would be for a new board to decide. Williamson signalled about a year ago that getting the project to where it was now would be a good time for new leadership. “You do your bit then you stand aside.” Though he hadn’t been an active farmer for several years, he remained an ACIL shareholder, having 50/50 sharemilkers on his Culverden dairy farm. Williamson became involved when three smaller individual schemes – Balmoral, Waiau and Waiareka – merged and needed a secretary. In that role he led the negotiations with Treasury to buy the assets from the Crown. The economy was being deregulated and farming was struggling. North Canterbury was a dryland farming area. The 1975 Labour Government had promoted the schemes but in the 1980s farmers couldn’t afford the operating costs and another Labour administration wanted out.

Newsmaker

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Delivery key to top milk job Recently appointed Westland Milk Products chief executive Toni Brendish is confident the co-operative has a sound business strategy. It now needs to be driven to work effectively she told Annette Scott.

S THE dairy industry gains traction in its recovery from a tumultuous two-year downturn, Westland Milk Products has its own mistakes to rectify, new chief executive Toni Brendish says. Management of the co-operative was put under the spotlight at the annual meeting when retiring chairman Matt O’Regan admitted to shareholders that mistakes had been made over the past couple of years. While not divulging specific detail, he did acknowledge Westland’s latest assets, the D7 nutritional dryer and UHT plant, had not delivered on expectations in the first year of operation. But Brendish said mistakes were on the mend. After just three months at the helm of New Zealand’s second largest dairy co-operative, a distant second to Fonterra, with a turnover of $639 million, Brendish has made her presence felt. She knew what her job was and it was clear there was no time to waste. The Australian had spent a large part of her career with dairy group Danone as a managing director of Nutricia Australia and NZ and managing director of Danone units in Malaysia and Indonesia. Her immediate past was as vice president of DKSH (Thailand), a consumer goods distribution business in Bangkok, where she was living. When she applied for the Westland job the board was very transparent. “They did not put on any rose coloured glasses. “They were clear on what needs to happen and I could see what

they had expected had not been delivered,” she said. “I had been in a number of roles where I had to turn similar circumstances around. That was part of what attracted me to Westland.” Brendish, having been on the consumer side of business, was also keen for a new challenge. “To turn around people was a different and challenging aspect and living in NZ offered new opportunity. “I was eight years living in Asia and very happy but to breathe the fresh air again is really motivating.” Brendish was confident Westland was headed in the right direction. “I am very confident we have the ability to get there. “But I am also not shying away from the work ahead,” she said. While Westland’s strategy was not at fault, some aspects of its delivery had not been up to standard at both managerial and board level. Mismanagement, coupled with external market factors had produced the “beyond disappointing” result giving shareholders every right to be disgruntled, Brendish said. Changes had to be made and Brendish was brought on board. She moved quickly to restructure the senior management team, her vision for the company indicative of renewed confidence that Westland could close the door on its poor performing period. Brendish said Westland had the people, the structure and the means to be a top-end supplier of higher margin (value-added) products that would reduce the effect on its business of the volatile commodity cycle.

While the nutritionals dryer at Hokitika and the new UHT milk plant at Rolleston had not delivered the returns predicted, they were still highly valuable assets that would be used to produce greater volumes of higher-margin products. Westland was emphatically focused on the higher-margin strategy to expand new, specialist products and deliver into new markets. Renting its assets and exploring new consumer markets suggested Westland would be juggling balls. But Brendish said it was all about moving forward to remain a viable, highly successful, farmerowned co-operative that would justifiably earn and retain the loyalty of its 427 shareholders across West Coast and Canterbury. She was adamant the highermargin strategy was correct and problems with its delivery could be rectified. There was absolutely no intention to follow Fonterra’s footsteps. Westland had a rich and strong history with huge independence that was of immense benefit to being the right partner for customers, Brendish said. “It is not burdened by being large. It can be nimble and flexible and we come from the purest part of NZ.” Location and the freedom from a big co-operative were key marketing strengths. The UHT and nutritional product processing capability underpinned the strategy and as Westland moved both assets forward it was focused on strategic partnerships, rather than just being a trader, to cushion against cyclical extremes.

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DIRECTION: Westland Milk Products new chief executive Toni Brendish knows what her jobs is and says there’s no time to waste. Photo: Annette Scott

“Partnerships are important for us to develop innovative and progressive working relationships with partners that can share competence, technologies and insights to drive innovation and higher-margin products.” There was capacity at Hokitika and at Rolleston that presented opportunities. Westland had formed a joint venture with its largest nutritional powder customer, Ausnutria, to blend and can nutritional products at Rolleston and was in negotiation with two significant customers keen to use the UHT plant. Brendish had acted quickly to implement a new structure in the senior management team. “It’s a really great team with a great amount of talent but it’s important the team knows the direction it needs to be going. “I give that direction with full commitment and accountability. “People need to know where they are going and I need to show them that.” When it came to accountability there would be some tough decisions to make, Brendish said. How people worked out of the silo and into a functional team was about taking the inefficiency out of the business. Already 47 projects had been identified for attention. “I am a great believer in visible

leadership but the best ideas come from the people who are doing the stuff. “I meet every week with the core team. I am there to listen and hear, giving the focus needed to make it happen.” A new chief financial officer was being sought and would hopefully be appointed in the next three months, Brendish said. “Westland as an organisation needs to drive to a higher level of performance and when that is not happening we need to make it happen – not let it sink. “My focus is to extract more dollars out every amount of milk Westland shareholders produce and return that in value to shareholders.” She said the fact that 43,000 babies were born in China each day was a compelling reason to back Westland’s move into producing infant milk powder for the Chinese market. She also suggested there were opportunities in China and elsewhere in the higher-margin space, including expansion into specialist adult nutritional products. Brendish and husband Mark have made Christchurch their home but Brendish spends a fair amount of time at the Hokitika plant every week. She will also spend time overseas leading Westland’s international marketing outreach.

Opinion

26 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

Milk bubbling, beef off the boil From the Ridge

Steve Wyn-Harris

ANOTHER year draws to a close. We have a New Prime Minister, Bill English, but I feel just the same. Maybe when Bill has a change in the Cabinet next week things may feel different. These are tough times for those in North Canterbury and the Kaikoura Coast. Keep your chins up as best you can. At last, there’s some light at the end of the tunnel for the unfortunate dairy sector of the last couple of years and now the prospect of at least breaking even for many and a nice little profit for those savvy folks with low-cost production and little debt, which are mostly the mum and dad operations. They are type of businesses the big corporates dismissed a few years ago as uneconomic, lacking scale and of a bygone era. But they are still here and not carrying the accrued losses of the big fellows. However, the debt in the dairy sector has increased these last few years and that remains a concern.

BUGGER: Wool, talk about disappointing, Trev.

We’ve had a great run on beef in recent years but it is slowly going off the boil. That hasn’t flowed through to the store markets but there are some expensive cattle out there that might yield some thin margins next year. But it’s been good while it lasted. Sheep meat has been disappointing and I would say might get messy in the first couple of months of the new

year as animals flow to the meat companies in greater numbers. An optimist might hope the new kid on the block, a merger of Silver Fern Farms and Shanghai Maling might improve matters. Certainly, those of us supplying the company will want to see it at the front of the pack in what it pays its loyal suppliers instead of its past history – or else. Wool, talk about disappointing, Trev. A couple of years of half-decent

returns perked sheep farmers up but now we are back where we started. My own wool buyer has been bestowed with accolades during the year and after each award the wool price has fallen – possibly just an unfortunate coincidence. World events like Brexit, Trump’s election, Russian imperialism, the horrors for civilians in places like Aleppo and Mosul make one despair but on the other hand well pleased to live in this little corner of paradise. On the home front, from a personal perspective, things have been just swell. After 24 years of nurturing children, our youngest son fledged and Jane and I found ourselves at home on our own once again. I took to it much easier as three sons progressing through their teenage years is a battle of who is top dog. No longer able to wrestle myself into the position, a gentle reminder than in today’s world, the fellow with the cash reigns supreme. Jane found it a tougher proposition but the strong maternal instincts saw a regular flow of Red Cross parcels and a great help to an ailing NZ Post. Two of them have graduated this year and two are in full time employment. Last year when I suggested the youngest go for plan B and

become an electrician exclaimed “don’t crush my dreams” so of course we have backed him in his goal of becoming a cameraman. Have a look at the YouTube link further down of the drone clip he did of our farm. A three week visit to Japan was excellent and has encouraged me to do something similar again in the future. My old dog died, leaving one very average pooch to help me run 3500 stock units but providence has stepped in as the other day I found a tiny puppy abandoned by some low-life in the water table and have christened him Ditch. I don’t think it is a whippet or St Bernard so you never know, it might turn out useful. He’s certainly grateful to be rehomed. Thanks for reading the column during the year and for the many emails that come in. Have a great festive season, catch up with family and friends and get a decent break. Steve

Watch the video at: https://www.youtube. com/watch?v=s_aUHcdzZA&feature=youtu.be

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

Nation’s backbone needs supporting RECENTLY I have been fortunate to compere three well-run fundraising or informative events where rural people contributed to the well-being of the community. To me, this is a privilege, however, none of them will help fill Santa’s sack this Christmas, nor the sacks of the many volunteers who spent many more hours organising the events than my cameo appearance as their front man. The first event was the MidCanterbury dairy calf fundraiser where more than 80 bull calves were raised by local dairy farmers and donated to the rugby union for the benefit of junior players next season. The huge effort in the logistics of collecting the calves and facilitating all the paperwork to be able to sell them as a mob, plus the pride shown in calves produced, was there for all to see as we celebrated the efforts of all concerned and the funds raised. The next event was a Zonta women’s fundraising quiz night and auction. The items donated were good quality and made for another successful evening to benefit some young women as they make their way in the professional world.

The Voice

Craig Wiggins

I love a good auction and to be able to have fun while calling for bids is something I’ll always put my hand up for. The next event was run at the Lincoln University dairy farm as an open day for anyone interested to take a look at an operating dairy unit. It was well attended by many urbanites where demonstrations from many supporting industries were informative and well attended. The cows were milked for all to see and the tanker driver demonstrated the procedures for transporting and testing the milk to ensure consumer confidence in what they bought. Thanks to all those who freely gave up their Saturday to educate the 1400-odd people who attended and to the organisers who wanted to show a realistic view of many good onfarm

practises and environmental strategies. It is this dedication to community and the primary industry that will be seen many times over as the rebuild of the earthquake-damaged areas is done. It has already been huge as we witnessed so many leave their own lives at the drop of a hat, those who jumped in a car and drove as far as they could to offer labour, the many appeals, Give a Little pages and donations that were freely given and flown to those in need by the rural air force of private and agricultural pilots. That is the real strength of New Zealand. The task off supporting those in such a remote area was greater than expected and will continue to be a mammoth task for all of NZ to contribute to. I hope we don’t see as many an issue arising from this event as we are hearing about of those people still waiting for their problems to be sorted after the damaged caused in the Christchurch earthquakes. There is a real risk that those affected in the latest events will suffer delays in support because of the lower population combined with poor internet services both before and after the earthquakes

ATTRACTIVE: An open day at the Lincoln University dairy farm was well attended by urbanites.

in the remotest rural areas made worse by the lack of empathy of many an urban dweller wanting their own infrastructure improvements attended to. These will take their attention away from the damaged rural areas as they are stuck in their cars on the way to work each day. Many a farmer will have the ability to help clear a road or transport stock and deliver supplies in support of the rebuild. They might not have a hi-vis vest nor a health and safety plan for the tasks required but they will have the common sense and ability to revert to the way this country was built by rolling up their sleeves and cranking up the machinery they own to attack the first slip in sight, which might be stopping the mail lady from delivering the drench required for the lambs at weaning or the first

load of prime lambs heading to the works. My advice to the bureaucrats is let them. Water finds its own level and I bet the rural vessel of ability will overflow with the talent behind the now wonky farmgate. To the rest of the country, don’t lose sight of the need to support this region in any way possible as your life continues. This will be a national burden as was Christchurch but with fewer people involved. The people who now need your help are the same sort of people who donate their time and funds freely at the events I listed at the start of this article to insure a strong local community. They probably won’t ask for help but they are still the backbone of NZ and deserve support until their lives and community are restored.

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

WORRY: Hong Kong is a cause for concern for New Zealand beef exporters with much Brazilian meat going through its grey channels to China.

Uncertain outlook for next year THE surprises keep coming as we approach the New Year. After Brexit and Donald Trump we might have thought we had had enough surprises for one year but now, on virtually the same day, John Key has announced his resignation as prime minister and, probably of greater global significance, Italian PM Matteo Renzi has lost the constitutional referendum, which resulted in the Euro hitting its lowest level against the United States dollar for 30 months and plunged stock markets into a state of uncertainty. Coincidentally, Trump is doing his best to upset the Chinese sooner than predicted by accepting a phone call from the Taiwan premier, which no US president or president-elect has done since the US broke off diplomatic relations in 1979.

Meaty Matters

Allan Barber

The writing is already on the wall for the TPP. So, if we are honest, nobody can forecast what will happen to global trade next year, nor to exchange rates and investment markets. What we do know for certain is the relative shortage of New Zealand’s red meat and dairy output because of production decisions made by farmers in response to poor returns and, in

the short term, inclement weather, whether the impact of drought, wet winter and cold spring in various parts of the country. The Beef + Lamb Economic Service’s New Season Outlook forecasts relatively little change in exports based on a 3% decrease in sheep numbers offset by a 2.8% increase in beef cattle to June 2016, though dairy cattle are 0.9% down because of the lower milk price, which has started to rise only in the last month. Any impact on herd numbers will not occur until next year’s calving. For the 2016-17 year slaughter numbers for all species are predicted to decrease slightly but that is not expected to have a significant effect on export receipts as a whole. The Economic Service expects

BALANCING: Demand from China for both mutton and lamb will almost certainly offset the European weakness to some extent.

a small decrease in sheep meat export receipts as a result of slightly lower tonnage and receipts affected by the lower exchange rates for the pound post-Brexit though it is still unclear if the Supreme Court will allow Britain to trigger Article 50 or if Parliament will vote in favour of it in any case. It is impossible to predict changes to export revenues amid so much uncertainty in our major markets but anything other than a decrease would be staggering because of the effect of reduced volumes and weaker pound and euro. Demand from China for both mutton and lamb will almost certainly offset the European weakness to some extent. Conversely, Europe will have no direct impact on NZ prime beef exports but Asia is expected to provide the best prospects for increased values with China, Japan, Taiwan and Korea the main markets. The duty disadvantage in comparison with Australian exports to Japan will continue to present a headwind. Another factor causing concern is the growth of Brazilian exports to China, much of it grey market trade through Hong Kong. American demand for manufacturing beef, which accounts for about half NZ’s beef exports, will be sensitive to the internal US cow kill, the NZ dollar exchange rate and the state of the American economy. The Economic Service predicts a 2.5% decrease in price, taking these factors into account, while the overall beef kill will be down 1.5% but these factors will be offset by higher carcase weights because of a lower proportion of cull cows in the kill. After two years in the doldrums the dairy sector looks much more promising with the payout pitched at $6 a kilogram of milksolids, a

dollar above the average breakeven position, a result that looked totally unlikely less than six months ago. This improvement occurred because of a tightening of the global supply pattern, notably lower milk production in NZ and in the European Union, which rose strongly when the milk quota cap was removed.

So, 2017 will be a very interesting year beset by political and consequently economic uncertainty though I suspect nothing much will have changed in 12 months.

Although it is tempting to think the dairy recovery will be permanent, the present outlook is driven purely and simply by availability rather than a change to high-value, non-commodity production. There has not yet been a shift in the fundamental structure of the dairy industry, which is still driven by farmer ownership and control. So, 2017 will be a very interesting year beset by political and consequently economic uncertainty though I suspect nothing much will have changed in 12 months. Companies and farmers alike will have to run a tight ship to ensure an acceptable performance but as always there will be opportunities that the bold will seize to their advantage.

Your View Allan Barber is a meat industry commentator: allan@barberstrategic. co.nz, http://allanbarber.wordpress. com

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Real Estate

THE NEW ZEALAND FARMERS WEEKLY – December 19, 2016

NE W

LI ST IN G

FOR SALE HILLCOTE FOREST KANAKANIA ROAD, Gisborne

79HA GRAZING BLOCK WITH POTENTIAL Located close to Opunake at the top of Kaweora Road, is this 79 hectares of flat to easy contour farm with plenty of potential. The property is serviced by a central race with good quality infrastructure including hay barn, large set of cattle yards, sheep yards with small three stand woolshed and bridge. The 14 large paddocks are conventional fenced, with 7 wire post and batten plus electrics. With so much to offer, this farm is a "must have" to add to your property portfolio.

Upper Kaweora Road, Opunake, Taranaki Tenders Close 1pm, Mon 30 Jan 2017 (unless sold prior)

View 11-12pm, 22 Dec, 5 Jan, 12 Jan

www.bayleys.co.nz/522224

Matt Muggeridge

M 027 237 8661 B 06 759 5191 matt.muggeridge@bayleys.co.nz

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

FOR SALE

GISBORNE - CUTOVER LAND CLOSE TO PORT!

MAIN STREET – OTOROHANGA Fully leased with three fabulous tenants, solid block and aluminium commercial building, great strategic location.

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.

318ha freehold land

263ha net stock area

49km to port

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.

Excellent infrastructure in place

TENDERS CLOSE Friday 3 February 2017 at 4.00pm WARWICK SEARLE 021 362 778

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Great off street parking. Secure leases return $35,100 pa + gst + o/g Phone/Text Owner, Pete 0274 701 181

Contact me today for a full information memorandum.

www.cbre.co.nz/49177570Q4 CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)

Versatile Lifestyle Farmlet

SOUTHERN WIDE REAL ESTATE

EXCEPTIONAL DAIRY FARM

Excellent location just off SH3 between Maxwell and Waitotara. Just 10 minutes to Kai Iwi primary and 20 minutes to Whanganui city and its comprehensive range of secondary schools. There is 22.6779ha (56.0370 acres) more or less of which an estimated 20ha are flat to undulating free draining Egmont loam growing fertile pastures. There is a range of ancillary buildings that would support horses (racing or sport), calf rearing, heifer grazing etc. Very good water from a local, recently upgraded water scheme. The property is very well fenced with separate sheep and cattle yards, plus horse boxes and handling yards.

$11,045,000 + GST (IF ANY), 262.98 HA FH •

•

OPEN DAYS: Thursday 26 and Sunday 29 January 2017, 12.30-2.00pm. Thursday 2 and Sunday 5 February 2017, 12.30-2.00pm.

Phone Mike Johnston 027 272 4044

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AUCTION (unless sold prior) Thursday 11am, 16 February 2017 at Waitotara Hotel

Matthew McDonald Ph (06) 765 5599 Cell 0274 814 648 Nicole McDonald Ph 0274 355 650 Mike Johnston Ph 027 272 4044 www.matthewandco.co.nz

•

Web Ref SWI1763

An exceptional property in all respects. Converted to a very high standard, this predominantly flat farm is well set up and very well located in the Waianiwa district. Featuring a seven year old 60-bail rotary shed with DeLaval plant, auto cup removers, auto drafting and a grain/meal feeding system. The property has three very good dwellings and numerous farm buildings suitable for large scale dairying. Current season’s budget 285,000kg MS from approx 660 cows at peak, but on track for 290,000kg MS plus. Approximately 380 cows wintered at home. Excellent internal lanes, with the farm serviced by Fraser Road. The property is for genuine sale for June 2017 delivery with stock, plant and shares available by separate negotiation.

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Complimented by a circa 1990’s open plan family home set in established grounds, up a tree lined driveway... a haven for your relaxation and enjoyment. A well cared for quality property that has been developed with vision, now awaiting new owners. Interested? Contact us at your earliest convenience.

Brett Lucas m 0274 351 361 e brett.lucas@swre.co.nz

Hargest House, Level One, 62 Deveron Street, Invercargill 9810 p 03 218 2795 e southland@swre.co.nz w www.southernwide.co.nz

RURAL rural@propertybrokers.co.nz 0800 FOR LAND

Property Brokers Limited Licensed under the Real Estate Agents Act 2008

Preliminary notice - Hirawai - 603 ha

TENDER WEB ID PR52997

DANNEVIRKE 304 Otope Road Property Brokers are privileged to bring to the market Hirawai, an exeptionally well located sheep and beef breeding/finishing property 5 kms east of Dannevirke. Hirawai features an estimated 510 ha of tractor country including 70 ha of alluvial flats along the boundary of the Manawatu river a recreational playground. An aesthetically pleasing property with extensive wetlands, well tended wood lots and native plantings. Infrastructure includes centrally located 5 stand woolshed, 3 x cattle yards, 2 smaller woolsheds and 2 x satelite sheepyards with accommodation provided by

three homes with the main home a superior 4 bedroom, 2 bathroom recently refurbished family home. Superior soil types, fertility and infrastructure all within a stones throw of Dannevirke, Hirawai certainly warrants inspection.

TENDER

VIEW By Appointment TENDER closes Thursday 9th March, 2017 at 2.00pm, (unless sold prior), Lloyd Dobson and Pringle, 9 Ward Street, Dannevirke

Veiwings from 27th January 2017.

Jared Brock

Mobile 027 449 5496 Office 06 376 4823 Home 06 376 6341 jared@propertybrokers.co.nz

Pat Portas

Mobile 027 447 0612 Office 06 928 0521 Home 06 855 8330 patp@propertybrokers.co.nz

Size and scope

WEB ID DR53092

DANNEVIRKE 647 Oporae Road This 716 ha easy, medium to steep hill country offers real potential for the expanding farmer. Some great cropping paddocks allow for growing supplement feed. A good 4 stand woolshed with 450np facilities. Implement/haysheds and good sheep and cattle yards assist stock management. A five bedroom homestead plus shearers quarters and an older home provides room for growth and housing of staff and family alike. This farm has strong stock finishing capabilities and is available for sale by auction. Call Jim to make a booking to view today.

www.propertybrokers.co.nz

AUCTION

VIEW By Appointment AUCTION 2.00pm, Thu 16th Feb, 2017, (unless sold prior), Dannevirke Service and Citizens Club Princess Street Dannevirke Jim Crispin

Mobile 027 717 8862 Office 06 374 8102 Home 06 374 6768 jimc@propertybrokers.co.nz

5 1

Get your SOLD on with us 664 Arapuni Road, Te Awamutu Sold for: $5.7m plus GST if any Area: 118.7ha Brian Peacocke

Takapau Sold for: $6,120,000.00 Area: 217.177ha Pat Portas

Bideford, Wairarapa Sold for: $3,608,000 Area: 1152ha Blair Stevens

8 Grice Road, Maihiihi, Te Awamutu Area: 71ha Neville Kemp

316 Wardville Road, Matamata Area: 79ha Neville Jacques

1152 Dromore Hatfield Rd, Ashburton Area: 228.3704ha Robin Ford

Waipukurau Sold for: $2,400,000.00 Area: 122.594ha Pat Portas

Gordonton Road, Hamilton Area: 98ha Mike Fraser-Jones

214 McCoskery Rd, Waitahuna Area: 259.2857ha John Faulks

100 Douglas Road, Circle Hill Area: 422.0131ha Andrew Booth

Akitio Area: 1410ha Jared Brock and Phil Wilson

Razorback Road & Barber Road, Bombay Area: 52ha Mike Fraser-Jones

1293 Tiniroto Road, Wairoa Area: 2562ha Warwick Searle & Jeremy Keating

1980 Northbank Road, Marlborough Sold for: $5,850,000 Area: 410ha Mark Terry & Ken McLeod

288 Plantation Road, Onga Onga Sold for: $3,000,000 Area: 114.9307ha Sam Twigg and Andy Hunter

400 Riverside Road, Winton Sold for: $3.6M + GST if any Area: 122.6557ha Andrew Patterson & Ian Russell

186 Mt Munro Rd, Mauriceville Sold for: $2,310,000 Area: 302.1639ha Andy Scott & Gary Patrick

Heddon Road, Hamilton Area: 63ha Peter Kelly & Mark Dawe

107 Kiwi Road, Pirongia Area: 72ha Neville Kemp

Pahiatua Sold for: $6,125,000.00 Area: 674ha Jared Brock and Phil Wilson

1028 Hurunui Bluff Rd, Hurunui Area: 958.0308ha Ben Turner

1045 Nicholls Road, Flemington Sold for: $1,750,000 Area: 172.773ha Sam Twigg and Andy Hunter

Puketoi Runs Road, Maniototo Area: 918.9039ha John Faulks

Waikari Area: 656ha Peter Crean

875 Waitahora Rd, Dannevirke Area: 158ha Tony Rasmussen

Tahuna Sold for: $2,200,000 Area: 51.9ha Michael Swney & Allister Coombe

701 Paerau Road, Styx Area: 1546ha Ray Kean

Reeve Road Sold for: $1M Area: 74ha Phil Goldsmith

103 Turu Road, Oaonui, Taranaki Area: 130.6124ha John Blundell

Oreipunga Road, Cambridge Sold for: $4,270,000 + GST (if any) Area: 80ha Wendy Flavell & Alistair Scown

1435 Kimbolton Road, Cheltenham Area: 116ha Peter Barnett

Hawarden Area: 2400ha Peter Crean

238 Under Hill Rd, Featherston Sold for: $1,700,000 Area: 102ha Andy Scott & Gary Patrick

Churchill East Rd, Te Kauwhata Area: 140ha Karl Davis, Lee Carter & Peter Kelly

Masterton Sold for: $3,250,000 Area: 426.3777ha Paul Joblin

3361 SH2, Waipukurau Sold for: $4,000,000 Area: 175.0265ha Sam Twigg and Andy Hunter

388 Spur Road, Pongaroa Sold for: $3,100,000 Area: 1132.4761ha Wayne McDonagh

Kimbolton Sold for: $14,325 per hectare Area: 178ha Peter Woodward

o s Scargill

Area: 201ha Peter Green

Alloair Forest, SH6, Havelock Area: 95ha Warwick Searle

68 Okoroire Road, Tirau Sold for: $9,310,000 + GST (if any) Sold Area: A rea: 179ha Mike M ike Fraser-Jones & Sam Troughton

Potaka Station 787 Reu Reu Road, Feilding Area: 1181ha Peter Barnett

d l o 471 Sainsbury Road, Pirongia Area: 125ha Neville Kemp

245 Dover Road, Okato, Taranaki Area: 119.0128ha John Blundell

Pahiatua Sold for: $1,290,000.00 Area: 211ha Jared Brock & Phil Wilson

Area: 197ha Peter Crean

75 Waitahuna West Road, Lawrence Area: 284.0903ha Doug Warhurst

294 Wataroa Rd, Pungarehu, Taranaki Area: 80.0656ha John Blundell

230 Taruna Road, Hawarden Area: 583.04ha Ben Turner

591 Mangatutu Rd, Te Awamutu Sold for: $3.5m plus GST if any Area: 85.12ha Howard Ashmore

Hallett Road Sold for: $3.375M Area: 66.62ha Phil Goldsmith & Eileen Goldsmith

169 Forman-Jury Rd, Carterton Sold for: $6,500,000 Area: 662.9510ha Andy Scott & Gary Patrick

Tenfoot Road, Taupiri Sold for: $3,500,00 + GST (if any) Area: 65ha Mike Fraser-Jones

Masterton Sold for: $4,600,000 Area: 966.4905ha Paul Joblin

551 Valley Road, Colyton Area: 96ha Peter Barnett

Whitikahu Road, Whitikahu Sold for: $7,100,00 + GST (if any) Area: 148ha Karl Davis & Mike Fraser-Jones

Ashburton Sold for: $5,800,000 Area: 226ha Greg Jopson

434 Hatuma Road, Waipukurau Sold for: $1,090,000 Area: 59.895ha bare land Sam Twigg and Andy Hunter

510 Kawakawa-Orere Road, Kawakawa Bay Sold for: $1.35m Area: 223ha Jeremy Keating & Warwick Searle

Geraldine Area: 81.845ha Richard Scott

307 Broxton Road, Hawarden Area: 401ha Ben Turner

Feilding Area: 204.5683ha Blair Cottrill & Stuart Sutherland

153 Dow & 290 Granton Roads, Outram Outram Area: 194.9571ha Ray Kean

Finlayson F inlayson Road, Maramarua Area: 70ha Area: Karl K arl Davis & Lee Carter

485 Te Tahi Road, Pirongia Area: 102ha Neville Kemp

347 Butlers Road, Fairlie Area: 333ha Ben Turner & Nick Young

629 Hiranui Road Waipukurau Area: 489ha Duncan McKinnon & Tony Rasmussen

Ex-Cheese Factory 208-214 Mill Road, Kaikoura Area: 9389sqm Jeremy Keating

Waiou Road, Waipukurau Sold for: $1,600,000 Area: 125.1380ha bare land Sam Twigg and Andy Hunter

Pigeon Bay Area: 209.2872ha Hamish Anderson

Turakina, Rangitikei Sold for: $1,500,000 plus GST Area: 52.6562ha Richard White

624 Greta Rroad, Greta Valley Area: 137.6722ha Bayleys Canterbury

Culverden Area: 227.3995ha Bruce Hoban

Eketahuna Sold for: $1,290,000.00 Area: 281ha Jared Brock

945 Waitahora Rd, Dannevirke Area: 393ha Tony Rasmussen

149 Brydone Glencoe Rd, Gore Sold for: $2.5M + GST if any Area: 94.5447ha Darrell Duncan & Bill McDonald

Bowman Road, Hamilton Sold for: $3,300,000 + GST (if any) Area: 74.5ha Scott Macdonald & Mark Dawe

539 Paiawa Road, Whangarei Area: 104ha Warwick Searle

Waipara

All companies in this composite ad are Licensed under the REA Act 2008

Phone Shirley on 0800 85 25 80 for more information

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Real estate agents are judged on results. We’re happy to be judged on the same basis. We deliver more buyers, better service, greater support and extra value.

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – December 19, 2016

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 230,000kg MS. 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.

New Zealand’s leading rural real estate company

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. Open days 16 Dec 2016 at 1pm and 13th Jan 2017 at 1pm. Report at 1pm with your own 4x4 bike and helmet.

Licenced under REAA 2008

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

pggwre.co.nz

Centrally located in Tihoi, our clients have a mature 370ha dairy unit supported by a 290ha run-off contiguous to the platform, making the business fully self-sufficient. The dairy platform supports 900 cows and deploys a system 2/3; the unit is stocked at 2.5 cows to the hectare and milked through a 50-aside Herringbone shed with AutopulsC and Protrack.

Working between the two properties this role will offer you autonomy and flexibility. Key requirements for this position include strong knowledge and experience in fencing and general farming skills, from water reticulation to yard work. Both properties are improving their infrastructure and our clients are keen for you to express your skills and make your mark on their business!

STOCK MANAGER

Drumpeel Farms requires an experienced Stock Manager to drive our high performing stock finishing operation, located 15km south of Hastings. We are a family farming business comprising beef and lamb finishing as well as mixed cropping. Our stock enterprise currently finishes 10,000 lambs each season and 1500 beef bulls, totaling around 20,000su.

Duties: • Be actively involved in the running of the properties • Responsible for all livestock personnel with regard to performance, training and health and safety • Setting projected financial outcomes in conjunction with General Manager • Ensure stock performance and feed requirements meet financial targets • Manage animal welfare and meet environmental expectations • Maintaining records and monthly reports for management

RECRUITMENT & HR Register to receive job alerts on www.ruraldirections.co.nz

To be successful, you must be tidy, have good planning and organisational skills, display exceptional care for stock and maintain good animal health practices. You will also have an inquisitive mind and be willing to share in the learnings of knowledgeable operators. On offer is a 4-bedroom home with office and three other dwellings for your staff members. Partner work opportunities are available onfarm and there is a school bus at the gate to a popular local primary school.

The successful applicant will demonstrate strong people management skills; proven ability to meet targets; enthusiasm; confidence to introduce new ideas to the business; and strong communication with management and owners.

For more information, or to fill out an application, please visit www.ruraldirections.co.nz or phone the Rural Directions team in confidence on 0800 475 465 (Reference # 6053).

On-farm accommodation will be available. Access to a range of schools and school buses is available. Remuneration to be negotiated with successful applicant.

Applications close 5pm Monday 9th January 2017

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RECRUITMENT & HR

Indonesia based Chief Dairy Husbandry Advisor / Dairy Husbandry Advisor

Please email your C.V. to office@drumpeelfarms.co.nz For more information please contact Hugh 027 444 1224

The AgriBusiness Development Group, is looking for a Chief Dairy Husbandry Advisor / Dairy Husbandry Advisor, based in Central Java, Indonesia, to provide hands-on technical and management leadership to dairy farmers and local project staff, and to manage the operational activities of a dairy development project. The Project is funded by the New Zealand and Indonesian Governments, designed to achieve the following outcomes:

National Livestock Account Manager INFORM – EXCHANGE – GROW

i. Improved quality and supply of local milk; and

Looking to take your media sales career further?

ii. Improved dairy farm productivity and profitability such that dairy farming families enjoy a good standard of living.

The grass is greener over here. Trust us.

Working with focus farmers and farmer groups, the aim is to establish more profitable farming systems that can then be transferred out to other farmers in the province. The role of the Chief Dairy Husbandry Advisor / Dairy Husbandry Advisor will include: • Managing a team of locally based staff; • Liaising with the development partners; • Developing a simple approach that leads to practical and relevant improvement in farming practices; • Coaching and mentoring farm extension officers; • Ensuring that appropriate farm recording schemes are maintained; • Implementation of work plans and managing budgets; • Providing timely reports on project activities; • Developing sound project planning, implementation, management and monitoring and evaluation systems.

So when an opportunity comes along where you can blend your knowledge of livestock with your media nous, passion for new technology and knack for sales, you know this is one worth grabbing by the horns.

Experience in South East Asian dairying systems will be an advantage but not essential. The ability to adapt NZ farming principles for small holders with limited land, farming in tropical conditions, will be critical. That and the skills to train farmers and local advisors in the application of the adapted farming practices.

Looking for a diverse, multi-dimensional role? Here’s one that will pass muster. For those rare moments when the thrill of the sale alone doesn’t push you, you’ll be inspired and energised, as you:

For more information or to apply please contact: Fay Oxenham, The AgriBusiness Group P.O Box 85016, Lincoln University, Lincoln 7647 fay@agribusinessgroup.com

• Chat to people from many walks of life: farmers, livestock representatives and more, to determine their advertising needs

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We are NZX Agri. We are New Zealand’s leading specialist provider and trusted source of independent agribusiness information, news and data insights across both the print and online realms. Through our content, we assist businesses with a stake in NZ agriculture to make intelligent business decisions, whether behind the farm gate or in the boardroom. We’re currently on the lookout for a talented livestock media sales professional to join our team. And it sounds like you’d be a perfect fit.

• Nurture your client relationships with care and attention to detail • Identify opportunities for growth and develop relationships to facilitate these

We would like to take this opportunity to thank you all for your support through 2016. Your business is appreciated and we look forward to continuing this relationship in 2017. Wishing you and your families a very Merry Christmas and safe and happy New Year.

Debbie and the team at NZ Farmers Weekly.

• Achieve sales targets and manage your revenue pipeline You’ll love that sense of autonomy as you hit the road to visit clients - (full NZ Drivers License required). In doing so, your knowledge of the livestock industry will also come in handy: you’ll want to know your Herefords from your Hampshires! And your previous media sales experience and confidence with computers will both stand you in excellent stead, as will your willingness to learn new skills. In exchange for your hard work, you’ll be well rewarded: a competitive salary awaits, along with the full support of a fantastic team. Joining us means plenty of career development opportunities when you’re feeling especially motivated. Sound great? Then don’t delay - apply now! To apply for this job go to: http://talentpropellerjobs.co.nz & enter ref code: 3237184.

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We are now closed for the Christmas and New Year period. We will be returning Tuesday January 4. Our first issue back is January 9 with the booking and material deadline Wednesday January 4.

www.farmersweeklyjobs.co.nz

We think there’s something magical about the land. And so do you.

Ag jobs at your fingertips

Applications close 5pm Monday 9th January 2017

Contact: John Crowley, John Crowley Consulting. 00 353 23 884 9854. john@crowleyconsulting.ie

We are interested in the applications of either a highly competent Dairy Farm Manager (with a validated staff management record) looking to move up into Contract or a current Contract Milker. The job demands large herd experience, strong people and pasture management skills and a good understanding of technology and reporting.

With an excellent remuneration package on offer and several different housing options available, this role offers flexibility and variety. The real appeal of this role will be working in a progressive team in a varied work environment that rewards for a self-motivated personality. For more information, or to fill out an application, please visit www.ruraldirections.co.nz or phone the Rural Directions team in confidence on 0800 475 465 (Reference # 2419).

Good conditions and salary.

Highly regarded within the industry, the Kidd Family Trust has a reputation for offering outstanding support and position longevity to their Contract Milkers. The Owners have clarity of their own support role and are motivated to share their intellectual property and be regularly engaged with the appointee for a win-win outcome. There are structured monthly meetings with the Farm Advisor, Owners and Contract Milker promoting a unified approach to business planning and its execution.

To be proficient in this role, you will need a high level of energy, show initiative, good practical skills and be able to take ownership of this position. You will be provided with a work vehicle and will have the opportunity to have your own working dog if desired.

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Due to the progression of our client’s farming business, we are excited to offer this newly developed Fencer/General Hand position. Comprising a total of 1600ha, the two properties based just out of Napier and Putere complement each other, running sheep and beef breeding and some finishing.

To assist in the operation and management of intensive dairy enterprise in Southern Ireland.

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Hawke’s Bay

West Taupo

Dairy Farm Staff required:

Farm Manager/Contract Milker

Fencer/General Hand

Classifieds

Employment

December 19, 2016

Classifieds

Classifieds 0800 85 25 80

PERSONAL

JUST COUNTRY Dating Service

Genuine country clients wanting to meet farming guys & gals.

We cover Horowhenua, Manawatu, Wanganui, Ruapehu, Taupo & Taranaki regions.

So call us on 027 390 9189

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No internet! As we personally meet all our clients to ensure the right match.

We are country people so we work for you!

ANIMAL HANDLING

ANIMAL SUPPLEMENTS

DOGS FOR SALE

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

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

SELLING 40 DOGS over holidays! 07 315 5553. Mike Hughes. 12-MONTH HUNTAWAY dog, black. Keen, good manners. Just needs work. $800. Phone 06 388 9122. BEARDIE HUNTAWAY pups. 3 months, two vaccinations, $450, Phone 06 863 9815.

BOOK AN AD. For only $2.00 + gst per word you can book a word only ad in The NZ Farmers Weekly Classifieds section. Phone Debbie on 0800 85 25 80 to book in or email classifieds@ nzx.com

EXPERIENCED HAY RUNNERS available in Rodney and Auckland. Phone 027 284 6636. Nicola.

STOP BIRDS NOW!

DOGS FOR SALE

ZON BIRDSCARER

DE HORNER

Phone: +64 6 357 2454 HOOF TRIMMER

EARMARKERS

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electro-tek@xtra.co.nz

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

CONTRACTORS

w w w. e l e c t r o t e k . c o . n z P.O. Box 30, Palmerston North 4440, NZ

ATTENTION FARMERS

POWER CABLE We could save you hundreds of $$

HOMES FARM SHEDS SUBDIVISIONS PUMPS

WANTED. HEADING DOGS to train by experienced trainer. Will spend up to 6 weeks if needed. Pick up possible. Please phone 027 912 1531. 3-YEAR-OLD all round Handy Huntaway bitch. 3-YEAR strong eye Heading dog. 14-MONTH Huntaway bitch. Two young dogs, Heading and Huntaway, nice pets. Phone 04 472 2351. HEADING DOG 4½ years. Mainstay. Good mustering dog. $3000. Phone 06 844 4705.

Livestock 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.

HEADING PLAIN EYE pups, b&w, well marked. Proven parents. $300. Phone 07 871 9698.

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. CA$H BUYER! QUICK $ALE! No one buys or pays more! 07 315 5553. Mike Hughes.

12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195.

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

GRAZING AVAILABLE GRAZING AVAILABLE for 140+ cattle. Bulls optional. Located south of Kaitaia. Phone 09 408 4110 or 021 083 04279. WHANGAREI AREA. Easy rolling land. Trough water. Phone 09 459 1383 or 021 043 1655. BOOK AN AD. For only $2.00 + gst per word you can book a word only ad in The NZ Farmers Weekly Classifieds section. Phone Debbie Brown on 0800 85 25 80 to book in or email classifieds@nzx.com

FOR SALE

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

HALFBREED SADDLES HIGH COUNTRY SADDLERY. NZ designed, hand made in USA. Shop near Taupo. 0508 4 SADDLES. Website: h i g h c o u n t r y s a d d l e r y. co.nz

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

MACHINERY FOR SALE CLAAS 4 ROW MAIZE combine. LARGE maize holding bin. 4 ROW side dresser. 4 ROW maize planter. TWO wheel controlled off set discs. 3.5 MTR roller. SIX furrow plough. FORD 7840 tractor, 4000 hours. MF tractor with digger. 1000 gallon tank on wheels. CLEARANCE SALE. 027 286 2418 or 06 862 7769.

PUMPS HIGH PRESSURE WATER PUMPS, suitable on high headlifts. Low energy usage for single/3-phase motors, waterwheel and turbine drives. Low maintenance costs and easy to service. Enquiries phone 04 526 4415, email sales@hydra-cell.co.nz

WANTED TO BUY PROMAX DOG BOX wanted for 3-4 dogs for flat deck ute. Phone 06 388 0644. Taihape.

For friendly & professional advice CALL 0800 843 0987 Fax: 07 843 0992 Email: power@thecableshop.co.nz THE CABLE SHOP WAIKATO www.thecableshop.co.nz

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Prices include delivery to your door!

T H IN K P R EB UILT

CLASSIFIEDS REACH EVERY FARMER IN NZ FROM MONDAY

500 Coopworth/East Friesian Ewe Lambs for sale Top Coopworth and East Friesian genetics speciﬁcally bred for milking. Available early Feb 2017 (price negotiable)

Please contact Simon Carthew 027 226 2262

LK0085239©

SALE TALK

ANNUAL ON FARM LAMB SALE Drysdale & Ferndale Stations Lilburn Family Turakina Valley Hunterville Mon 9 Jan 2017, 1pm Starting at Drysdale 5000 Shorn W/F C/O Lambs 600 Shorn B/F Lambs Genuine hill country station lambs. Renowned for their shifting ability. Rebate commission payable to outside Agents by arrangement with auctioneers. Further Inquiries Paul Peterson PGW Hunterville 0274 449 176 06 322 8332

Two Otago university students, Simon and Matt, are walking through the Octagon early one Saturday night when a beggar approaches them asking for spare change. Simon adamantly rejects the man in disgust. Matt, on the other hand, whips out his wallet, pulls out a couple of five dollar bills and gladly hands them over to the beggar with a smile. The beggar thanks him kindly and lets them continue on their way. Simon is outraged by his friend’s act of generosity. “What on earth did you do that for?” shouts Simon. “You know he’s only going to use it on drugs or booze!!!” Matt replies, “What... and we weren’t?”

Advertise in the NZ Farmers Weekly $2.00 + GST per word - Please print clearly

SOLID – PRACTICAL WELL INSULATED – AFFORDABLE

Name:

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

Phone: Address: Email:

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

LK0084976©

Heading: Advert to read:

We are now closed for the Christmas and New Year period. We will be returning Tuesday January 4.

100 Mixed Age Ewes 40 1 shear Ewes 50 Ewe Lambs 50 Ram Lambs These are approximate tallies. Further inquiries Callum Dunnett – PGW Alan or Lois Paton – Vendors

0275 908 612 03 329 5736

A/c Stonehenge Charolais Angela Reed Te Kuiti Tuesday 4th April 2017

Thames Valley Genetic Leaders High

25 Mixed-age BW Jersey cows Bull Sale 7 1st calved heifers (I) Friday 16thheifers September, Start 14 R3-year (RWB) 11.15am (J) Paeroa Saleyards 11 R2-year heifers (L) Comprising: 15 Weaner heifers (M)

We would like to take this opportunity to thank you all for your support through 2016.

Debbie and the team at NZ Farmers Weekly.

AG & LM PATON Springston Sale being held at Canterbury Park Fri 3 March 2017, commencing 1pm

Preliminary Notice

Our first issue back is January 9 with the booking and material deadline Wednesday January 4.

Your business is appreciated and we look forward to continuing this relationship in 2017. Wishing you and your families a very Merry Christmas and safe and happy New Year.

FAIRBURN TEXEL STUD DISPERSAL SALE

7 2yr Bulls

For all enquiries or to book inspection contact 27 1yr Bulls Vendor: Our vendors, Crescent Genetics (Townshend Angela 07 878 8716 Family)Reed and Little River Jerseys (Brewster 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

Family) are again proud to be offering a line PGG Wrightson Genetics: of outstandingly genetically superior, Cam Heggie 027 bred, 501 8182

well grown, High BW 2 and 1 year bulls for purchasers’ selection. Backed by generations Buy and sellbreeding livestock atthe offering has a BW of selective average of 167 with BWs up to 188 (new indices). All Bulls BVD tested Negative.

LK0085333©

NEW HOMES

top 10 All Breeds for NZ )

THE NEW ZEALAND FARMERS WEEKLY – December 19, 2016

ows contracted to LIC for 2011 matings calve from 16-7-12, 6.5 weeks ey and Kiwi cross ed to be 420 cows after non nt, culls, older cows & 5% rejection calving portion of herd ion last Spring season 347kgs ms/cow, Mid February Delivery s ms/ha, on rolling to steeper 250no Jersey Crosspalm and 550kernel Jersey, allor G3maize profiled, ed farm, meal,

Livestock 0800 85 25 80

Sloane Livestock LIMITED

to the sole marketing agents:

LK0085356©

rketing Service 2 8771 or 07 846 4491

FOR SALE

1 YR R ANG ANG & ANG x STEERS TEERS 350-‐400kgs 350-‐400kgs 200-‐370kgs 1 1 Y R H EIFERS MIXED AGE BREEDING EWES M/SEX TERMINAL MALE LAMBS AMBS 28-‐34 kgs

Hogget mating – the untapped potential on your farm.

Start calving 7/4/17, two cycles All enquiries Karl Foster 027 482 0488

Only 4 % of the national lamb kill are hogget lambs.

97 IC Autumn calving Friesian heifers [with Jersey bull] $1600ono

STOCK REQUIRED

LK0085340©

recorded, due to calve from 18/7/17, 280 head mated to LIC sexed Crossbred semen, balance to eplacement stock also in-calf. available LIC PSS, will be scanned Asking $1800 + GST For Sale g genetics & potential to be one of Jersey weaner bulls, 50, all recorded and G3 es leading suppliers of Genetics to profiled, ave BW 106 dustryWanted for years to come. Full details Autumn calving Jersey or Crossbred cows or heifers

Think Coopworth

370-‐420kgs 1 1 YR FRIESIAN BULLS

RANGITAIKI STATION STATION On On Farm Ewe Sale ale

www.coopworthgenetics.co.nz

PINE PARK

STOCK FOR SALE

350kgs 1 YR FRIESIAN BULLS

LK0085286©

IN MILK DAIRY HERD FOR SALE

10,000 Ewes -‐ 7 FFebruary ebruary 2017 017

www.dyerlivestock.co.nz

Ross Dyer 0274 274 333 333 381

www.carrfieldslivestock.co.nz 150 Frn/FrsnX Herd BW87 PW94 DTC 16/7 to Frsn/Jrsy Approximately 100 after select etc. Low imp/SCC 4 herd tests $1950 – John Price 027 594 2544

Terminals

270 Jrsy Cow Herd DTC 20/7 Low inputs 370ms/cow I/C to NM Jrsy/ Hfd, well uddered, low SCC $1600 – John Price 027 594 2544

TUAKAU HEIFER SALE Thursday 5th Jan 2017 at 12 noon

27 Autumn calving C/O cows BW62 PW97 DTC 1/3 I/C to Hfd. ½ Frsn , ½ FrsnX from vendors own herd $1800 – Keith West 027 2149180

• SUFFOLK • SUFFTEX • • SUFFOLK X TEXEL POLL DORSET • • TEXEL X POLL DORSET •

14th Annual Heifer Sale 750 x 15-month heifers Comprising of approximately

• 700 Ewes • SIL Recorded • Carcass Scanned •

280 x Angus, 270 x BWF, 200 x Exotic

LK0085083©

A/c OJ & M Cathcart

CONTACT: EDWARD SHERRIFF 06 327 6591

TUAKAU STEER FAIR Comprising of 200 x 2-year steers

Est 1951 Farmed on Taihape hill country 500 – 700 mtrs

Meaty Muscle Makes Money

1250 x 15-month Angus, Angus

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

MATAROA CHEVIOTS

Fairlea Texels

Tuesday 10th Jan 2017 at 12 noon

64 High Index Frsn I/C Heifers BW126 PW138 DTC 25/8 Can stay on existing grazing until required $1450. Immediate del. Paul Kane 027 286 9279 LK0085241©

All enquiries to: Brian Robinson nson BRLL Phone: 027 241 0051 10051Selwyn or 07Donald 8583132 Phone: 0274 378 375 Luke Gilbert Phone: 0278 492 112 ner

Livestock

Hereford & Exotic steers

TUAKAU 15-MONTH DAIRY BEEF STEER FAIR Thursday 12th Jan 2017

Craig Chamberlain 0275 320 253

FEILDING UPCOMING SALES

Barry Cleaver – Mataroa, RD 1, Taihape Ph: 06 388 7871 Fx: 06 388 7872 Email: barrycleaver@slingshot.co.nz

Email: fairleatexels@xtra.co.nz

*Suftex first-cross rams also available

Puketoro Station

1st Annual On Farm Sale - Tues 10th Jan 2017 2754 Ihungia Road, Tokomaru Bay at 12 Noon

6500 Sheep / 450 Steers

Feilding Store Thurs 22nd Dec

750 Perendale 2th Ewes, 750 Coopdale 2th Ewes 900 Perendale 5yr Ewes, 600 Perendale 6yr Ewes 600 Romdale 6yr Ewes, 700 1 Year Perendale Ewes 2200 Perendale Male Lambs 29kg ave 450 Top 1 Year Angus Steers (380 to 400kg)

First Sale of 2017 Feilding Store Fri 6th Jan

The sale ewes scanned 174% and weaned 155% and will be presented in very good condition, November shorn, Romdales are St Leger bred X Tukemokihi Station - The Male lambs will be 27kg minimum The Steers will be sold at the conclusion of the Sheep Please use the Ihungia Road (Sign Posted) from Tokomaru bay Lunch & Light refreshments provided

Feilding Prime Mon 9th Jan Feilding Bullock

Contact: Shane Scott 0274 956031 for further enquiries Full Details on our Website or Facebook Central Livestock Limited

LK0085249©

Thurs 12th Jan Fri 13th Jan

1808 Makino Rd, RD 9, Feilding 4779

McNeil Farming Limited

Last sale of 2016

Feilding Store

FOR SALE ON FARM FROM MID DECEMBER

Ph: 06 328 8710 Fax: 06 328 8712 Mob: 027 226 5784

All enquiries to: Dave Anderson 0274 981 201

Call Hugh & Helen Winder on 0800 328 877

www.centrallivestock.co.nz - Ph 0800 833834

LK0085306©

150 x Angus/ Friesian

Easy Care | High Lamb Survival | Enquiries Welcome

www.mataroacheviots.co.nz

Craigneuk Dorset Down Stud Annual on Farm Sale Friday 13th January 2017 200 Terminal Rams On offer: Dorset Down, South Dorset, Texel Poll Dorset Cross • All fully recorded in SIL and Studfax. • Autumn scan. Grown in the harsh Maniototo climate. Also 50 specially selected Craigneuk Halfbred Rams Specially bred to to fit the Smartwool Contracts 22-25 micron cutting up to 6.5 kilos of Wool.

For more information contact Johnny Duncan 027 327 2372 or Roger Keach PGGW Otago Livestock Genetics 027 432 5766

LK0084723©

450 x Hereford/ Friesian

LK0084964©

LK0085252©

Comprising of approximately

MARKET SNAPSHOT

IN PARTNERSHIP WITH

Grain & Feed

MILK PRICE FORECAST ($/KGMS) 2016-17

AGRIHQ 2016-17

6.00

6.61

AS OF 18/11/2016

AS OF 08/12/2016

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

5.40

5.20

327

360

NI mutton (20kg)

2.90

2.75

283

279

308

SI lamb (17kg)

5.30

5.35

5.20

Feed Barley

271

265

292

SI mutton (20kg)

2.85

2.60

228

Export markets (NZ$/kg) 7.69

7.74

7.34

232

230

UK CKT lamb leg

Maize Grain

367

360

355

PKE

231

224

222

* 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

INTERNATIONAL Prior week

Last year

Wheat - Nearest

214

203

266

Corn - Nearest

199

194

220

5.0

CBOT futures (NZ$/t)

4.5

294

289

383

3000

ASW Wheat

277

269

369

2500

Feed Wheat

263

204

340

2000

Feed Barley

239

234

330

PKE (US$/t) Ex-Malaysia

110

112

South Island 1 7kg lamb

6.5 6.0

NZ venison 60kg stag

5.5 600

$/kg

APW Wheat

Nov 16 Feb 17 NZX WMP Futures

6.0 5.5

Last week

3500

1500 Feb 16 May 16 Aug 16 C2 Fonterra WMP

North Island 17kg lamb

7.0

Australia (NZ$/t)

4000

500 5.0 400 4.5 300

4.0Oct Oct

Dec

Feb

5‐yr ave NZX DAIRY FUTURES (US$/T) Nearby contract

Prior week

vs 4 weeks ago

WMP

3660

3520

3460

SMP

2660

2650

AMF

5450

Butter

4375

Last week

Prior week

Last year

Prior week

Last year

2560

Urea

460

575

6.80

9.15

5400

5220

Super

310

330

35 micron

3.90

4.00

5.70

4375

4350

DAP

875

39 micron

3.90

5.54

783

784

Mar

Apr

May

Jun

Sharemarket Briefing LAST Monday John Key gave his last address as Prime Minister and Bill English and Paula Bennett were sworn in. The market will take this positively in the short-term. English is well regarded by the business and investment community, both here and offshore, representing stability and reliability. We are upbeat on the prospects for the economy in 2017. Strong migration, construction and tourism are all providing support, unemployment is below 5% and business confidence is above historic averages. The impact of the dairy rebound will also provide a boost to many regions. The general election will create some uncertainty in 2017. Though we don’t see it as a major risk to the economic outlook, National will find it much harder this time. Coalitions will be more important and there is a genuine chance of a change of government. The buoyant economy should ensure another solid year of sharemarket returns, albeit at more subdued levels than the last few years. The S&P/NZX 50 has averaged a stunning 16.1% over the last five years (more than doubling during that period). This is well above the long-term average of 8.7% a year. Market commentary provided by Craigs Investment Partners

S&P/NZX 50 INDEX

6749

S&P/NZX 10 INDEX

6812

$/kg

250

4 weeks ago

NZ venison 60kg stag

5.5 600

c/k kg (net)

NZ$/t

US$/t

6.0

350

150 Dec 12

35 micron wool price

6.5

CANTERBURY FEED PRICES

3250

10431

This yr

6.65

3500

9126

Aug

Last week

3750

S&P/FW AG EQUITY

Last yr

Aug

29 micron

450

S&P/FW PRIMARY SECTOR

Jun

(NZ$/kg)

4000

Latest price

Jun

NZ average (NZ$/t)

WMP FUTURES - VS FOUR WEEKS AGO

Feb

Apr

WOOL

* price as at close of business on Thursday

Jan

Apr

FERTILISER

Last price*

3000

Last year

5.30

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

Dec 13 Feed barley

Dec 14

Dec 15 Dec 16 PKE spot

YTD High

YTD Low

Auckland International Airport Limited

6.30

7.75

5.21

Fletcher Building Limited

10.35

11.14

6.56

Meridian Energy Limited Spark New Zealand Limited Fisher & Paykel Healthcare Corporation Ltd Mercury NZ Limited (NS) Ryman Healthcare Limited Contact Energy Limited Vector Limited Z Energy Limited

2.52 3.40 8.31 2.94 8.05 4.60 3.14 7.19

3.07 4.01 10.93 3.34 9.86 5.49 3.55 8.90

2.23 3.10 8.13 2.53 7.78 4.35 3.06 5.82

Listed Agri Shares

400 4.5 300

4.0

Oct Oct

Dec Dec 5‐yr ave

Feb Feb

Apr Apr Last yr

Jun Jun

Aug Aug This yr

Dollar Watch

Top 10 by Market Cap Company

500 5.0

5pm, close of market, Thursday

Company

YTD High

YTD Low

The a2 Milk Company Limited

2.080

2.610

1.070

Cavalier Corporation Limited

0.760

0.950

0.520

Comvita Limited

8.650

13.000

8.180

Delegat Group Limited

5.700

6.400

5.500

Foley Family Wines Limited

1.350

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 (NS)

6.710

6.800

5.400

Scales Corporation Limited

3.230

3.550

2.160

SeaDragon Limited

0.008

0.016

0.008

Seeka Limited

4.600

4.850

3.300

Tegel Group Holdings Limited

1.290

1.800

1.290

S&P/FW Primary Sector

9126

9881

8021

S&P/FW Agriculture Equity

10431

11663

8987

S&P/NZX 50 Index

6749

7571

5934

S&P/NZX 10 Index

6812

7805

5890

HAWKISH talk by the This Prior Last United States Fed pushed NZD vs week week year the kiwi dollar down by USD 0.7040 0.7069 0.6695 about US2c during the EUR 0.6754 0.6642 0.6195 week but the currency AUD 0.9560 0.9543 0.9412 should still be resilient GBP 0.5656 0.5623 0.4497 through next year, ASB Bank institutional currency Correct as of 9am last Friday dealer Tim Kelleher said. It fell from just above US$0.72 to just above 0.70, close to Kelleher’s earlier forecasts. With the Fed forecasting three interest rate rises next year on top of last week’s nudge higher, the big dollar will be in strong demand. It gained on all the other currencies. The impact of greenback buying will be offset to an extent by the continuing strength of the New Zealand economy, Kelleher said. He expects a 0.71 rate in March, slipping to 0.69 by September. He warned the Fed’s forecasts were not always a good indicator of what eventually happens but for now that is what the news is and that’s US dollar-bullish. ASB expects the kiwi to remain firm to stronger on the other important cross rates, including a push up to £0.582 in March then to 0.61 in September. On the euro cross for the same months, the estimates are €0.676 and €0.69 and for the yen up to ¥83 and ¥84. The bank isn’t in the group expecting parity with the Aussie dollar, with calls of A0.945 for March and 0.96 in September. There’s a lot of very ordinary Aussie data at the moment. Alan Williams

Markets

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016

CANTERBURY FEED BARLEY

US IMPORTED 95CL BULL

NI SLAUGHTER MUTTON

($/T)

(NZ$/KG)

2-YEAR BEEF-FRIESIAN HEIFERS, 425-525KG AT FRANKTON

($/KG)

($/KG LW)

6.03

271

2.90

Cattle & Deer BEEF Slaughter price (NZ$/kg)

Last week

Prior week

Last year

NI Steer (300kg)

5.40

5.45

5.40

NI Bull (300kg)

5.15

5.30

5.40

NI Cow (200kg)

4.00

4.20

SI Steer (300kg)

5.20

5.30

SI Bull (300kg)

4.70

SI Cow (200kg)

3.80

3.75

Export markets (NZ$/kg) US imported 95CL bull

6.03

6.16

6.11

US domestic 90CL cow

5.95

5.92

6.38

North Island steer (300kg)

6.5 $/kg

6.0 5.5 5.0 4.5 4.0 South Island steer (300kg) 6.0

NZ venison 60kg stag

5.5

c/k kg (net)$/kg

600 5.0 500 4.5

400 4.0

300 3.5

Oct Oct

Dec Dec

Feb Feb

Apr Apr

5‐yr ave

Jun Jun

Last yr

Aug Aug This yr

VENISON Slaughter price (NZ$/kg)

Last week Prior week

Last year

NI Stag (60kg)

8.10

7.15

NI Hind (50kg)

8.00

7.05

SI Stag (60kg)

8.10

7.15

SI Hind (50kg)

8.00

7.05

New Zealand venison (60kg Stag)

9.5 8.5 $/kg

NZ venison 60kg stag

c/k kg (net)

600 7.5 500 6.5 400

300

5.5

Oct Oct

Dec Dec 5‐yr ave

Feb Feb

Apr Apr Last yr

Jun Jun

Aug Aug This yr

2.62

$2.01-$2.11/kg $64-$77 high lights Hereford cows, 592- Medium to good 683kg, at Temuka

store male lambs at Stortford Lodge

Last bids at Tinwald

t was the end of an era in Mid Canterbury as Tinwald sale yard held its final sale last Tuesday, and a good crowd gathered to see the last hammer fall on the sheep pens. NORTHLAND NORTHLAND Another good sized yarding of cattle were offered at KAIKOHE last Wednesday, though drying conditions and easing schedules did have an impact on prices. The weaner market was the highlight, with prices strong again on the back of high demand for the younger cattle, PGG Wrightson agent Vaughan Vujcich reported. Three-year steers kicked off proceedings, and Hereford-Friesian, South Devon-cross and Angus-cross sold for $2.65-$2.75/kg. Prices eased by 10-15 cents per kilogram for 2-year steers, and beef-cross and exotic-cross returned $2.70/kg. Angus-cross bulls sold for $2.70/kg also, while a small offering of heifers were mainly beefcross and fetched $2.60-$2.65/kg. In the 1-year pens Angus and Hereford-Friesian steers traded at $2.95-$3.05/kg, with heifers of similar breeding returning $2.70-$2.90/kg. Angus-cross and Friesian bulls, 280320kg, sold for $2.70-$2.80/kg, with autumn-born lines earning $3.20#3.30/kg.. The weaner section was the highlight, and 100kg Friesian bulls made $500-$550, with beef-Friesian strong at $520-$620. Heifers, 100110kg, ranged from $420-$500, with most at the top end of that range. Cow numbers have slowed and a small offering sold well, with heavy types at $2/kg, and medium $1.85/kg. Another strong market at WELLSFORD last Monday was the result of the continuing grass market, and some buyers replacing finished stock. Throughput was again above traditional levels as vendors chase the strong prices, and again they were rewarded. Hereford-Friesian 2-year steers were of medium to good quality and at 469-598kg, sold for $2.64-$2.78/

kg, with Angus, 468kg, earning $2.88/ kg. Yearling cattle made up the bulk of the sale and the ever popular beefFriesian lines reached new levels. Good weighted lines, 350-395kg, returned $1125-$1260, with over 100 offered, and lighter Hereford-Friesian, 278-338kg, fetched $915-$1125, $3.29$3.33/kg. Demand was also strong for 1-year Friesian bulls, 364-396kg, which sold for $1020-$1080. Heifer prices eased slightly though were still strong, and 319-384kg Hereford-Friesian made $880-$1050, with Angus-Friesian, 281298kg, earning $830-$850. The weaners were hot property, with most steers making $510-$645, Friesian bulls, $480-$590, and heifers, $400-$550. For full reports on these sales visit agrihq.co.nz/farmer AUCKLAND AUCKLAND The strong run of prices looks set to carry through to the end of the year at PUKEKOHE, with plenty of interest in a big yarding of younger cattle on Saturday December 10. Prime cattle continued to sell well, and steers, 541-785kg, sold for $2.62$2.75/kg. The top heifers, 500-637kg, made $2.67-$2.70/kg, and next cut, 426-450kg, $2.58-$2.71/kg. The store section was top heavy with weaner cattle, though a few older lines were offered. Two-year steers made similar values as the prime at $2.65-$2.74/kg, while lesser quality 15-month crossbred, 275-314kg, sold for $850-$1030. Crossbred heifers, 292307kg, returned $760-$845. Weaner prices reflected very strong demand, despite some mixed breeding in the pens. The best of the steers were small crossbred lines at 103-128kg, but they still managed $500-$600, while 80-83kg returned $380-$420. A similar result in the heifer pens saw HerefordFriesian, 108-112kg lines sell for $510-$530, and crossbred, 100-103kg, $460-$505. COUNTIES COUNTIES TUAKAU’s last store cattle sale for

the year attracted a good bench of buyers and the market for all classes remained firm, PGG Wrightson agent Kane Needham reported. About 650 steers, heifers and bulls were on offer, with the heavier Hereford-Friesian steers, 480-525kg, trading at $2.75-$2.85/kg. HerefordFriesian 15-month steers, 400-465kg, made $2.94-$3.04/kg, and 1-year Angus, 297-337kg, returned $950$1120. Black-bodied Hereford-Friesian weaner steers, 110-140kg, fetched $660-$740 and a line of Friesian bulls, 380kg, made $1070. In the heifer section 1-year, 330380kg, traded at $945-$1055, with Angus, 283kg making $930. Black Hereford-Friesian weaner heifers, 120kg, sold at $520. About 500 cattle were yarded at last Wednesday’s prime sale, and the market for steers, heifers and cows eased by around 5-10c/kg. Most of the heavier steers returned $2.74-$2.77/kg, and medium $2.68-$2.74/kg. Lighter beef and Friesian lines earned $2.58$2.65/kg. Heavy heifers sold at $2.64-$2.69/ kg, and local trade $2.56-$2.63/kg. Beef cows traded at $1.95-$2.06/kg, with the heavier boners earning $1.72-$1.86/kg. Medium boners made $1.60-$1.67/kg and lighter cows $1.40-$1.55/kg. The sale drew another big offering of exservice bulls and prices were similar to the previous week. Most of the heavier beef-type bulls sold at $2.67-$2.80/kg, and Jersey bulls earned $2.50-$2.60/kg. Almost 2000 ewes and lambs were presented at last Monday’s sheep sale. The heavier prime lambs made $100$107 and mediums $85-$100. Good store lambs fetched $65-$75, medium $50-$60 and light $40-$50. The best of the prime ewes fetched $65-$80, and light-medium $40-$60. BAY OF PLENTY BAY OF PLENTY Cull dairy cows and ex-service bulls joined the usual store cattle at RANGIURU last Tuesday, as vendors tidy up prior to the Christmas break.

Continued page 38

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38 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016 A bigger volume and easing schedules resulted in a softer market, though prices were still high. The top boner cows traded at $1.90-$1.96/kg, with the next cut earning $1.68-$1.80/kg. Prime steers, and the heavier 2-year olds, sold to $2.69-$2.79/kg, though 4 Hereford, 770kg, managed $3.00/ kg. Lighter 2-year HerefordFriesian, 361-367kg, returned $3.05-$3.13/kg. Ex-service Hereford bulls sold on a steady market, with 594-648kg making $2.85-$2.95/kg, while 2-year Friesian, 373kg, returned $2.73/kg. The 2-year heifer section was one of the largest, and included some top lines of Hereford-Friesian. Most weighed 472-549kg, and sold for $2.60$2.69/kg, putting the top line up to $1430. Yearling prices eased, with Hereford-Friesian steers, 357385kg, making $1080-$1145, and Angus heifers, 313-321kg, $895. Weaner’s continued to sell to recent high levels and HerefordFriesian heifers, 89-110kg, fetched $440-$490, beef-cross steers, 102-135kg, $480-$570, and Friesian bulls, 92-136kg, $420-$530. The biggest yarding this season of lambs kept auctioneers busy, with 740 primes and 127 store lambs offered, as well as 350 ewes. Prime lambs traded at $77-$102, stores $49-$76, and ewes, $30-$80. For full reports on these sales visit agrihq.co.nz/farmer WAIKATO Sales at FRANKTON have been consistent for the past few months, and prices were mainly steady again last Wednesday, for a yarding over 900 head. Results were mixed in the 2-year pens however, with HerefordFriesian steers, 485-561kg, trading at $2.68-$2.80/kg on a slightly softer market, while the heifer equivalent, 436-538kg, sold over a very tight range at $2.61-$2.64/kg, with prices mainly steady. AngusHereford steers, 448-525kg, sold well at $2.75-$2.84/kg. Hereford bulls from the dairy farms also featured, and 6 3-year, 648kg, made $2.78/kg, while 2-year, 494kg, returned $3.00/kg.

Steers and bulls dominated the 1-year section, and the heavy end of the steers sold to high demand. Hereford-Friesian, 289-341kg, sold for $970-$1065, and made up the bulk of the section, with most other lines small. The bull pens offered up a good mix of beef and dairy lines, with Angus-cross and Hereford-cross, 328-414kg, making $900-$1150, and Friesian, 389-424kg, $1040-$1155. Heifer numbers were lower, but again Hereford-Friesian was in the spotlight, and 277-309kg fetched $860-$970. Weaner numbers continuing to climb at the dairy-beef weaner sale held last Thursday. Heifers had to be sold outside due to over 1500 bulls selling in the rostrum, and while prices didn’t climb, they held the high levels. Most heifers were HerefordFriesian and sold for $440-$530, with Angus-Friesian at $458-$500. Bulls weighed heavier than last sale with fewer lines under 100kg. Friesian, 105-115kg, sold for $495$530, with 120kg plus earning $520-$690. Autumn-born lines traded at $610-$725. Hereford-Friesian, 100110kg, sold on a steady market at $570-$600, while a big offering of Hereford-cross, 90-110kg, returned $400-$500. TAUPO held its monthly cattle sale last Thursday, and good grass covers in local areas saw them dominate the market, with little left for outside buyers to take home, Shane Scott from Central Livestock Limited reported. Older cattle numbers were limited in the yarding of 580, and lighter beef-Friesian, 362-392kg, sold well at $3.11-$3.12/kg. Most of the action was in the 1-year and weaner pens, and Angus-cross steers, 218-268kg, made $770-$920, while their sisters, 213-227kg, returned $720$775. Straight Angus heifers, 215-261kg sold for $730-$870, and Herefordcross, 250-291kg, $800-$930. Friesian bulls were quality types, with 1-year, 318-380kg, making $900-$1080, while weaners, 88128kg, returned $455-$560. Most weaner heifers traded at $365$485.

TARANAKI TARANAKI While a quieter week was on the cards for STRATFORD, ex-service bulls bumped up numbers last Tuesday, and a moderate yarding of cattle were offered last Wednesday, New Zealand Farmers Livestock agent Stephen Sutton reported. Prices for the bulls eased in line with schedules, and $2.80-$2.88/kg was common for the heavy types, while a small offering of boner cows made $1.70-$1.90/kg. Following the cattle fair the previous week, numbers were moderate at 340 last Wednesday, and the market for younger cattle was strong. Two-year steers, 500590kg, sold to $2.90-$2.96/kg, with most bulls, 460-508kg, and making $2.88-$2.98/kg. Demand for the younger cattle did not waver, and few 1-year steers traded under $800, with Hereford-cross, 320-332kg, making $870-$955, while 1-year HerefordFriesian, 295-365kg, returned $890-$1115. Heifer numbers were low, but Hereford-Friesian, 305361kg, were popular, and sold for $870-$1070, with lesser quality Hereford-cross, 280-317kg, making $830-$910. Weaner numbers were low though the quality lines sold to current high levels. POVERTY BAY POVERTY BAY Store lamb numbers may have halved at MATAWHERO last week, but this did not act to support prices, especially for medium and heavier lines. Medium lines were making $53.50-$63 regardless of sex, while only a single heavier pen went for $70. Lighter male lines made $47$51, while ewes were a bit more mixed, ranging across $41-$51 for all but the very small types. There were only a few prime ewes and lambs available. The ewes largely made $70-$75, while lambs were $78.50-$90. HAWKE’S BAY HAWKE’S BAY Plenty of buyers and limited numbers of store cattle meant another strong day in the rostrum at STORTFORD LODGE last Wednesday, while lambs were heavier than they looked and prices eased as a result. A larger offering of prime lambs

meant more substance to the market last Monday, though at 215, the volume is still low. Prices for heavy ewes and lambs eased, while in the rostrum steers held their value. Prime lambs sold with mixed results, with heavy lambs easing to $94-$105, while lighter types and forward stores made $75-$90. All lines were mixed sex. Heavy ewe prices eased to $76-$87, while medium to good made $67-$75, and light, $50-$65. Angus cattle again featured in the rostrum, and steers, 563-645kg, made$2.76-$2.80/kg, while the heifer market eased, with 468642kg returning $2.70-$2.72/kg. Cow prices also came off the highs of late, with Angus, 580-589kg, making $2.01/kg, and AngusHereford, 609kg, $2.03/kg. Store lamb numbers were similar to the previous week and included forward, well covered male and mixed sex lines. Prices eased as the weights were underestimated, and medium to good males made $64-$77, while similar weighted mixed sex returned $61-$71. Light ewe lambs were popular, and sold for $38-$48. A large buying gallery gathered for a moderate yarding of store cattle, which resulted in a very strong market. Specially advertised 2-year Angus & Angus-Hereford steers featured, with 501-607kg earning $3.08-$3.10/kg, and a line of 452kg, $3.27/kg. HerefordFriesian, 558kg, sold for $3.01/ kg, with two small lines of beef heifers trading at $2.73-$2.83/ kg. No 1-year steers were offered, but nearly 90 heifers sold well. Simmental-Hereford, 314kg, returned $1030, while Angus and Angus-Hereford, 253-271kg, made $870-$905. Autumn-born Hereford-Friesian, 161-199kg, sold for $565-$620, while AngusHereford steers, 157kg, made $675. Around 3000 more ewes were on offer compared to a year ago at the ewe fair on Friday, but this didn’t make much different to prices. Ewes found strong interest across the board, despite the mediocre position of the lamb sector. Four-tooth were nearly all heavier types, generally making $115-$121, though a few lines were

$123.50-$130. Quality was a little more varied among the five-year offering. Medium types traded at $80-$82.50, while lighter lines made $64-$76.50. Good quality pens still mostly made $97-$100. Mixed age lines were similarly popular, helped by very good quality throughout these lines. They nearly all made $104-$112. For full reports on these sales visit agrihq.co.nz/farmer MANAWATU MANAWATU Plenty of interest right up to the last sale for 2016 saw another strong market at RONGOTEA last Wednesday. A big selection of cattle sold to an enthusiastic bench of buyers, New Zealand Farmers Livestock agent Darryl Harwood reported. Few prime cattle were offered, but Hereford-Friesian cows, runwith-the-bull sold for $1.93-$1.97/ kg. Heavy boner Friesian sold to $1.74-$1.77/kg, while lighter crossbred lines returned $1.69$1.77/kg. The store section kicked off with 2-year Jersey bulls, 318-405kg, at $2.18-$2.32/kg, and HerefordFriesian, 392-425kg, $2.74-$2.89/ kg. Just one line apiece in the steer and heifer pens saw beef steers, 610kg, make $2.70/kg, and Friesian heifers, 418kg, $2.41/kg. There was more action in the 1-year pens with good numbers of all classes. Hereford-Friesian steers, 289-355kg, fetched $930$1070, with Friesian and crossbred trading at $690-$720. A big offering of bulls sold well and Friesian, 200-360kg, made $650-$1010, with Hereford-Friesian, 307-420kg, returning $870-$1180. Crossbred, 222-260kg, made $620-$960. In the heifer pens Hereford-Friesian, 220-390kg, sold over a wide range at $620-$1080. Weaner and calf prices continued their strong run and Hereford-Friesian steers, 80-120kg, made $400-$600, and heifers 7893kg, $450-$535, with heifer calves trading at $210-$260. Angus-cross heifers, 95-102kg, sold for $485$510, and calves, $325. Like the 1-year section it was the bulls that dominated, and Friesian, 122-190kg, returned $465-$650, with lighter weights at $465-$505.

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Markets

Hereford-Friesian numbers were limited and 87kg sold for $515, while the calves returned $210$260. Baconers sold for $90-$160, and weaner pigs, $45-$85. Mixed age ewes returned $49-$60, while in the lamb pens the better types made $59-$80, with a small tail at $30-$53. Lamb prices regained some of the ground lost the previous week at FEILDING, while a bigger offering of ewes sold with mixed results. The yarding of just over 1600 prime lambs sold on a firm market at $90-$120, while the store offering made $65-$90. Ewe numbers increased to 3800, and prices eased for the top lines, with good at $83-$93, and medium, $59$78. Light ewes held their value at $40-$60. The rostrum was relatively quiet again, though included some feature lines. Two Friesian steers, 825kg, sold for $2.66/kg to make $2195, while ex-service Hereford bulls, 725-790kg, made $2.83-$2.85/kg. Cows were the main feature, and a nice line up of Angus, 507-524kg, sold for $1.97$2.01/kg, while Friesian, 567574kg, made $1.80-$1.87/kg. Over 2000 dairy-beef weaners were offered at Feilding last Thursday, and buyers took the last opportunity to buy from big numbers this year. Medium Friesian bull calves firmed, with 110-120kg making $540-$595, with heavy and light types steady at $565-$605, and $460-$550 respectively. HerefordFriesian bulls and heifers offered up more weight in the pens, and the bulls, 100kg plus, sold for $600-$680, with 129-145kg heifers earning $580-$640. Lighter heifers, 88-98kg, returned $430-$460. The sheep yarding was not as large as advertised at Friday’s store sale but it must be uncertain if that caused the lamb sale prices to increase but they certainly did. A regular buyer outbid everybody on the heaviest lambs, which increased 15-20 cents/kg (or $4-5/ head) above last week and the light-medium lambs lifted more than 10 cents/kg with competitive bidding on all pens. The top price was $95 for 246 mixed sex blackface lambs with most of the yarding light-medium lambs and some pens of shorn lambs selling well, such is the state of wool. Sheep (7,257): ewes (277), $41-$81; lambs (6,980); 31-37 kg, $84-$95, $2.47-$2.70; 26-30 kg, $65-$80.50, $2.43-$2.98; 21-25 kg, $52-$68, $2.47-$3.02. It was a big week for the cattle drovers with over 2,000 dairy beef weaners, predominantly Friesian bulls, selling on Thursday to solid demand, especially from East Coast buyers, and the medium Friesians particularly strong with most calves including the heifers weighing more than the last dairy beef weaner sale. The Friday store cattle sale attracted big entries, especially of yearling steers but the buying benches did not look as full as usual. The cattle were again presented in forward condition as has become usual. $1900 ($3.00) bought the heaviest steers, 15 Hereford/Shorthorn three year olds with $1810 ($2.95) for a dozen Charolais cross two year olds and straight Angus steers selling

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016 for a premium and older steers selling firmly. Angus yearlings also sold well – twenty for $1535 ($3.21) – but over 700 yearling steers weighed the market down somewhat. Bulls were not inspiring today with regard to numbers and prices in the older bull and younger bull sections although 8 solid South Devon cross yearlings presented well at $1270 ($2.80). Heifers also were in the shadow of the steers but were firm enough on low, by comparison, numbers. 14 Hereford/Friesian two year heifers made $1370 ($2.82) with an attractive line of a dozen Simmental cross yearlings making $1110 ($3.26). Cattle: steers; 3yr (27), 607-633 kg, $1660-$1900; 2yr (353), 1310642 kg, $855-$1810; 1yr (724), 192477 kg, $740-$1535; bulls; 2yr (73), 380-546 kg, $1060-$1590; 1yr (83), 207-452 kg, $600-$1270; heifers; 2yr (96), 281-485 kg, $830-$1370; 1yr (), to 363 kg, to $1115. For full reports on these sales visit agrihq.co.nz/farmer CANTERBURY CANTERBURY Heavy ewes and lambs eased at CANTERBURY PARK last Tuesday, while recent rain and good grass growth kept the competition in the store pens. Store lambs numbered nearly 2800 and sold to solid interest from the buying bench, with most mixed sex. Very light lines sold over $3/kg at $58-$68, with medium making $63-$72, and the better end, $73$87. A small offering of male lambs returned $61-$74, and Corriedalecross mixed sex fetched $58-$73. Heavy prime lambs eased in line with softening schedules and limited space, trading at $100$117, with the remainder making $80-$99. Ewes held their value, and heavy types traded at $98-$114, medium to good $83-$96 and light, $48-$69. Prime cattle prices were steady, despite easing schedules, and heavy steers sold for $2.80-$2.90/ kg, with forward stores at $2.95$3.05/kg. The heifers were mainly local trade, and returned $2.66$2.75/kg, with higher yielding types up to $2.80-$2.92/kg. Cows sold well and the top beef lines made $1.97-$2.12/kg. The last store cattle sale for this year was well supported, despite the offering being a mix of breed and quality as vendors tidy up. Most cattle sold were 15-month, and Angus-cross steers, 295319kg, made $1020-$1080, while Hereford-cross and Angus-cross heifers, 280-317kg, returned $900$1075. Weaner steers were mainly Shorthorn-cross which sold for $540-$715, and Friesian bulls, 7089kg, returned $370-$440. Prime ewes made up nearly half of a big yarding of sheep at

COALGATE last Thursday, as more farmers wean and offload. Sheep numbers lifted to 6800, with 3200 of these found in the ewe pens. Despite the big number the market held up well, with the majority heavy ewes that traded at $90-$110, and a small lighter end at $60-$89. Lambs also came forward in decent numbers with an almost even split between store and prime. Both markets were steady, though most store lambs were light to medium types at $60-$69, with better types at $72-$81. Prime lamb prices were steady, with the bulk trading at $90-$119, and top lines up to $124. Heavy prime cattle sold at steady levels, while pressure from easing schedules softened local trade types. Angus steers made premiums at $2.90-$2.96/kg, while other heavy lines sold for $2.83-$2.87/kg. Local trade types eased to $2.75-$2.85/kg, with beef heifers, 440-515kg, also softening to $2.72-$2.81/kg, while dairy lines made $2.36-$2.60/kg. Cows mainly traded at $1.76-$1.94/kg for the heavier types. Weaner bulls featured in a decent sized store cattle that was mainly small lines of mixed quality. 2-year Hereford-cross heifers, 383-433kg, sold for $2.61-$2.63/ kg, while weaner Friesian bull sales were exceptional, with 108-134kg making $500-$580, and HerefordFriesian, 95kg, $540. For full reports on these sales visit agrihq.co.nz/farmer MID CANTERBURY MID CANTERBURY A large crowd gathered last Tuesday to mark the final sale to be held at the TINWALD saleyards. A yarding of more than 1500 prime sheep was offered with prices holding firm in all sections. With solid demand for heavy lambs the best of the spring lambs fetched $127. The abundance of good feed in the South Island saw store lambs keenly sought, with good forward Down-cross lambs selling up to $86 ,while crossbred cryptorchid lambs sold from $76-$79 and medium $68-$74. Ewes and lambs all counted ranged from $67-$76. In the prime sheep section heavy spring lambs fetched $116-$127, medium $104$115 and light $80-$95. Heavy hoggets sold from $103-$110, medium $85-$97 and light $70-$81.Heavy woolly ewes realised $113-$122, medium $95$110 and light $65-$80. SOUTH CANTERBURY SOUTH CANTERBURY Store lambs sold better at auction last Monday at TEMUKA than in the paddock, as demand for a moderate sized yarding was solid. Heavy prime lambs and ewes eased, with cattle prices mainly steady.

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Store lamb numbers lifted to 1700, and were mainly forward mixed sex. Price eased slightly, and light mixed sex made $57-$66, with medium-good earning $70-$82. Heavy prime lamb prices eased as processors fill up, and these traded at $100-$119, with medium types steady at $80-$99. The ewe market repeated that pattern, and heavy ewes eased to $90-$108, with medium and light lines steady at $70-$89 and $60-$69 respectively. Cattle numbers increased as more buyers look to take advantage of the strong prices, and prices held the previous week’s level. Angus and Hereford steers, 560-750kg, sold for $2.75-$2.84/ kg, with the tops over $2000, and Hereford-Friesian, 475-708kg, $2.72-$2.80/kg. Angus heifers, 509522kg, made $2.76-$2.85/kg, and Hereford-Friesian, $2.65-$2.74/ kg. Ex-service bulls bumped up numbers and a line of 22 Friesian, 543kg, made $2.60/kg, while a big offering of Jersey, 484-590kg, sold well at $2.55-$2.67/kg. A big consignment of Hereford cows sold on a per line basis, but in general the better yielding types made $2.00-$2.11/kg, and the next cut, $1.80-$1.90/kg. A busy day turned into a hectic one last Thursday, as a much larger offering of calves in particular was sent to sale, with vendors looking to take advantage of the very high prices on offer. A total yarding of 1400 store cattle included over 600 bulls calves, though all found homes for good prices. Very few older cattle were penned, though 1-year numbers were high and vendors well rewarded. In the steer pens Hereford-Friesian, 316-440kg, made $1020-$1380, and Murray Grey-cross, 335-367kg, $1170$1270. Quality was mixed in the heifer pens, and Hereford-Friesian, 259-312kg, sold for $845-$1020, and Hereford-cross and Charolaiscross, 362kg, $1130-$1340. A good sized offering of Friesian heifers, 317-349kg, earned $925-$1015. Friesian bull calves sold very well, with the top lines right up to fair prices, though lesser quality types eased. Friesian, 85-100kg, made $440-$480, and 110-125kg, $540-$570. Hereford-Friesian heifers, 77-90kg, generally made $430-$510. OTAGO OTAGO There was plenty of action at BALCLUTHA last Wednesday, with store cattle offered, and a larger yarding of prime lambs and ewes, Barry Osborne from PGG Wrightson reported. Prime lamb numbers are starting to gain momentum, though prices eased in line with schedules. Heavy lambs sold for $100-$111, medium $89-$99, and light $81-$88. Ewe

+ +

quality was very good, and strong demand saw this market hold at recent levels. Heavy ewes traded at $98-$107, medium $90-$97, and light $80-$88, with hoggets fetching $73-$90. A small yarding of medium quality store lambs sold very well, with top lines fetching $72-$77, medium $62-$67 and light $46. Grass-derived demand meant strong competition in the cattle pens, where a very good quality yarding of store cattle were offered. Angus steers, 529kg, sold for $3.00/kg, with Simmental-cross, 374kg, at $3.29/kg. Yearling prices cracked $1000 in some cases, with Charolais-cross steers, 408kg, making $1400, and Simmentalcross heifers, 336kg, up to $1200. Friesian bulls calves, 104kg, traded at $455. SOUTHLAND SOUTHLAND Vendors took one of the last opportunities for 2016 to offload cattle into LORNEVILLE last Tuesday, with a big yarding of both prime and store. Prices reflected strong competition, especially for good quality 1-year cattle. Sheep numbers were very low, and prime lambs sold for $96-$105 for heavy lines, with medium at $86-$91, and light $75-$81. Ewes continued their strong price run, and heavy types sold for $92$116, medium $70-$90, and light $50-$65, with 2-tooths trading at $60-$75. In the store section lamb prices mainly held and tops fetched $75$82, medium $68-$73, and light $60-$65. Prime cattle sold on a steady market across all classes. Steer numbers were limited, and 450550kg returned $2.60-$2.75/kg, with good beef heifers, 450-600kg making similar values at $2.50$2.70/kg. Good dairy heifers, 400kg and heavier earned $2.30-$2.40/kg, with lighter types at $2.00-$2.20/ kg. Good heavy bulls sold well at $2.50-$2.60/kg. In the cow pens the high yielding types fetched $1.80$2.00/kg, medium $1.60-$1.70/kg, and light, $1.10-$1.30/kg. The store cattle section was the main feature of the whole sale, with good quality animals offered and prices to match. Charolais-cross, 1-year steers were hot property, and at 439kg, sold for $1340, with their sisters, 263-293kg, earning $850-$1170. Angus-cross heifers, 380kg, returned $1040. One line of Friesian bulls was also offered, and at 350kg, sold for $950. Friesian bulls also featured in the weaner pens, with good lines, 120kg plus, earning $430-$460, and 85-110kg, $330-$400. Hereford-cross bulls, 100-130kg, sold for $480-$520. Store lambs were hot property at CHARLTON last Thursday, with a good gallery of buyers following the sale, PGG Wrightson agent Greg Clearwater reported. A large yarding of store lambs was offered and top lines managed $80, with medium types earning $73-$78, and light $72, with few lines selling under that level. Prime numbers were moderate and prime lambs eased in line with schedules, with heavy types earning $105, medium $85-$90, and light $78. Ewes sold on a steady market and the tops made $98, medium $80-$88, and light $55-$70. Good quality 2-tooths traded at $95, with medium at $83$88. Rams sold for $67-$81.

Markets

40 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 19, 2016 NI SLAUGHTER BULL

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Tinwald bows out Annette Scott annette.scott@nzx.com

HE hub of Mid Canterbury’s livestock trading sold stock for the final time last Tuesday marking the end of a once-thriving sheep industry in the district. As he opened the lastever weekly sale PGG Wrighston Mid Canterbury livestock manager Greg Cook welcomed a large gathering of farmers, transport operators and drivers, former yardmen and past and present livestock agents. “This a big turnout to acknowledge the history that goes with the end of an era for Tinwald,” Cook said. The big yarding of more than 1500 prime sheep was a fitting farewell for 138 years of memories for the local farming community, he said. Cook himself had clocked up 24 years of selling at the yards but was flanked by one or two fellow livestock representatives with up to 50 years of saleyard tales to share. “It’s good to see such a turnout and many familiar faces from days past,” Cook said. “And it’s a fitting tribute to send Tinwald off with such a good line-up of lambs.” Staff and clients were treated to a farewell lunch after the sale. While in the past the Tinwald saleyards had played

FINAL HOORAH: Auctioneer John Farrell, assisted by Alex Horn, right, and Greg Cook and David Bruce in the pen, had the honour of taking the bids at the final sale where the top prime lamb fetched $127. Photo: Annette Scott

a key economic and social role in the wider community that had changed over the past 25 years, Cook said. Stock numbers had continued to decline as the focus of Mid Canterbury farming moved away from sheep and beef toward arable, dairy and dairy-support farming. Health and safety, environmental and animal health requirements had also contributed to the decision to close the saleyards. While there would be no job losses in the Mid Canterbury livestock team, Cook acknowledged it would Medium affect local vendors. AS/NZS Fromimpact January the option of approved

selling livestock via a saleyard auction would either be the Temuka saleyards Monday sale or the Canterbury Park Tuesday sale. Cook assured farmers the local team would continue to take care of local livestock business. Details about a central collection point for trucking stock to the vendor’s choice of sale would hopefully be confirmed by the end of the year, he said. Meanwhile, the United Kingdom market was out of favour for lamb exports with the volume of lamb exported through November down 16% down on the same month last year.

AgriHQ analyst Rachel Agnew reported the difficult trading environment in the UK and European Union markets had affected sales through the month, even given this was a key period for Christmas chilled sales. Shipments to the UK were down 38% on the same time last season, which dropped market share from 23% in 2015 to 20% this year. Sales to Germany declined by 21% on last year while shipments to China dropped by 21% with market share for the month dropping from 29% last year to 27% this year.

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Weaner Friesian bulls, 125-150kg, at Feilding

Heavy mixed age ewes at Stortford Lodge ewe fair

Year splits species by prices earned THIS year has been one of the more challenging for sheep farmers with facial eczema, bad weather and low prices for lambs hard to stomach. Ewe prices have been okay and the cull ewe market held Suz Bremner AgriHQ Analyst up well throughout its duration. The store lamb market has finished the year in a similar vein to how it started last season and as one optimistic farmer recently pointed out “Well, it could be worse”. In the cattle market record prices were set in 2015 and smashed in 2016 as demand for store cattle just kept climbing, helped by good grass growth in spring and solid schedule prices. Good quality, straight beef lines are hard to find because of dairy conversion and a reduction over the years of the beef herds while those that are offered are snapped up quick. Prime cattle have also held the previous year’s stronger prices right through 2016. Weaner and dairy beef calf markets have been exceptional, with prices exceeding 2015 levels by hundreds of dollars. A shift from dairy grazing helped both the store and calf markets, as did other changes to farming policies. The dairy industry’s year was a game of two halves, with commodity prices low throughout the first half of the year and any extra spending was halted. Many opted to cull cows into auction throughout the year to keep cashflow going and that saw a much wider spread and a larger volume of cull dairy cows traded throughout the year. Milk prices lifted in the second half which took the pressure off. The sale yard family sadly lost some wellknown characters over the past year, including Barrie Gordon and Laurence Redshaw. The year has ended with another sale yard falling victim to the changing face of farming, with the last hammer falling at Tinwald last Tuesday. On a more cheery note, though, I would like to wish everyone a very Merry Christmas and a safe and happy holiday. suz.bremner@nzx.com

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Normally up to $195

145

Terms and Conditions: Offers valid December 2016 only or while stocks last. Prices include GST and are subject to change. Products may not be available in all stores but may be ordered on request. Prices do not include delivery, delivery costs are additional. Images are for illustrative purposes only.

Freephone 0800 10 22 76

www.pggwrightson.co.nz

Helping grow the country