Farmers Weekly NZ 23 January 2017 by AgriHQ

18 Farmer now Supercity 2IC Vol 16 No 3, January 23, 2017

farmersweekly.co.nz

Conversion days over T

Neal Wallace neal.wallace@nzx.com

HE era of large tracts of land being converted to dairying is history, Waikato farmer Ian Elliott says. He recalled his father in 1951 turning bush at Lichfield into pasture and, more recently, Elliott bought forestry land off Carter Holt Harvey that he converted to dairying, ensuring water quality and the environment were protected. But the Waikato Regional Council’s Healthy Rivers programme put a cap on the nitrogen loading in the soil, making any land use intensification difficult, especially from forestry to dairying, he said. It was a similar story in Southland, which had been transformed in the last 25 years from a predominantly sheep and beef farming region to dairy, a shift Federated Farmers Southland dairy section chairman Graeme McKenzie said would be impossible under new environmental rules. Environment Southland’s new water and land plan meant converting to dairying or adding an existing runoff block or leased area to a milking platform required resource consent. The province has been split into nine physiographic zones and McKenzie said each had specific rules such as the area an individual farm may sow in winter crops. “Basically, what it is saying is physiographic zones are not based on water quality data but based

NO MORE: There will still be growth in all farming industries but big swings in land use won’t be seen again, Waikato dairy farmer Ian Elliott says on how water behaves through the system in that zone. “They have placed restrictions based on what might happen.” The zones did tell farmers how their land would behave, which was useful, but the policy overall locked in land use. Farmers were looking for definitions from the council, such as what constituted dairying to provide them with clarity. McKenzie did not think the tougher rules signalled an end to

improved farm productivity. “There will still be growth in all industries but the big swings in land use change probably won’t be seen on the scale seen in the past.” Elliott, the managing director of Trinity Farms, was optimistic about the future of dairying saying technology and innovation would provide answers. “Something will get legs in the next five to 10 years which we will be able to use to improve agricultural production and

will have a positive effect on the environment.” There would be rules and regulations included in council plans that were illogical but it was important farmers were part of the hearing process and that they focused on the bigger game. “I want clean rivers, it’s a great goal, and I want communities to thrive,” he said.

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NEWS

NEWSMAKER

Soil Moisture Anomaly (mm) at 9am January 20, 2017

18 Farm thinking to build

supercity

60 Wetter than

When Bill Cashmore built fences on his Orere Point farm he made certain they would be around in 50 years time by using eight wires and plenty of battens.

normal (mm)

OPINION

22 Alternative View

-10

Alan Emerson gives our young people more credit than the former PM.

-20

-30

Editorial �� 20

5 Spring weather brings dry

Cartoon �� 20

-50

Drier than normal (mm)

Letters �� 20-21

risk

Pulpit �� 19

The topic of many anguished post-holiday conversations, summer is proving a mixed bag for farmers and growers in Waikato and Bay of Plenty as both regions bent under almost unceasing westerly winds in recent weeks.

Alternative View �� 22 From the Ridge �� 23 Meaty Matters �� 23

Map reading tips

8 Retail sales hold the key

REGULARS

Building up the new, branded retail meat business in Germany is a key part of Silver Fern Farms’ strategy to boost its trading profits.

Real Estate �� 24-33 Employment �� 34 Classifieds �� 34-35 Livestock �� 35

11 NZ to move quick on UK

trade

Telford opens but future hangs �� 3

Spring weather brings dry risk �� 5 Tough rules curb dairy expansion �� 7 Retail sales hold the key �� 8 NZ story must be written fast �� 10

Green kiwifruit volumes falling �� 13

40 Quality wool wanted

Vandals slash environmentalists’ tyres �� 15

Good quality wool was sought after at this week’s Napier sale but more volumes with higher colour and vegetable content pushed the market generally lower.

Serious issues to get more money �� 16

Market Snapshot �� 36

Okay sought for new RHD strain �� 14

of the

Week

For the full job description visit the Farmers Weekly jobs site famersweeklyjobs.co.nz and click on Dairy category. To find all other agjobs click on All Categories. #agjobs at your fingertips.

Dairy prices marking time �� 4

NZ to move quick on UK trade �� 11

Job

Dairy farm managers – Southern Lights Organics is a new business venture transitioning a hub of dairy farms across Southland to organics. It is now looking for professional farm managers to lead the onfarm businesses on this exciting journey.

MARKETS

New Zealand will be one of the first movers to negotiate a post-Brexit trade position with the United Kingdom, Trade Minister Todd McClay says.

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

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

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

AgNZ closure is confirmed Neal Wallace neal.wallace@nzx.com

UNCERTAIN: The future of Telford is still unclear but it will open again this year.

Telford opens but future hangs Neal Wallace neal.wallace@nzx.com THE Taratahi Agricultural Training Centre board expects to decide in the next three months whether it will take over the delivery of education at Telford from Lincoln University. In the meantime enrolments have finally opened for the coming year at Lincoln University’s Telford Division after uncertainty late last year about the future of courses caused a delay in finalising programmes. Lincoln-Telford division interim director Joan Grace said the courses offered this year were the same as in previous years – the certificate in agriculture, diploma in agriculture and the diploma of rural veterinary technicians. Correspondence and distance education for certificates in apiculture knowledge, feed management knowledge and STAR and trades academy in

schools would continue to be offered. Taratahi chief executive Arthur Graves said due diligence and discussions were under way with Lincoln to decide if Taratahi would take over the delivery of education at Telford.

If we didn’t believe it was that important we wouldn’t be going there. Arthur Graves Taratahi While it was not a done deal, news Telford was operative this year was positive. It showed a commitment by Lincoln to the training campus and to southern farmers but Lincoln would not have made that commitment had there not

been meaningful discussions with another provider, he said. Adding the Telford campus was an opportunity for Taratahi but also important for the primary sector. “If we didn’t believe it was that important we wouldn’t be going there. “It is an important opportunity for Taratahi, which will consolidate us as a national organisation. “The second thing is there has been a lot of encouragement from industry for us to get involved and ensure Telford survives.” The core modules at both campuses were similar as were their origins though Taratahi was established earlier, in 1919, and Telford in 1964. Graves said Taratahi offered a more integrated farm education whereas Telford was based more on farm work experience. Both training institutes operated under acts of Parliament and Graves said the

Ministry for Primary Industries would be involved should the two merge. Grace said Lincoln, Taratahi and the Telford Farm Board, which runs the south Otago farm, had signed a statement of intent that covered the Telford discussions. That document included provision for the possible transfer to Taratahi of the education operations at Telford, including staff. Last November Lincoln made redundant four academic and 13 non academic staff from the Telford campus as part of a review of Lincoln operations to address financial difficulties and a static roll. Farm board chairman Murray Pilgrim said he was delighted at the progress between Lincoln and Taratahi. “A positive outcome will ensure the successful continuation of vocational training for the industry,” he said.

PGG Wrightson has confirmed it has closed its private training arm, AgNZ, which provided primary sector training for 452 students. Students enrolled last year and still to complete their course, believed to be about 105, would do so through the Western Institute of Technology, Taranaki, PGW human resources manager Rachel Shearer said. The closure affected 34 jobs made up of permanent employees, fixed term-casual employees and independent contractors. It has been a tough few months for sub-degree trainees with AgNZ, Landcorp and Lincoln-Telford division all cutting back off-campus, vocational and sub-degree courses, affecting about 3000 students. Lincoln-Telford decided last year to close all courses delivered by third-party providers after the Tertiary Education Commission found they had not been delivered in accordance with its contract and required a refund of $1.5 million. PGG Wrightson bought AgNZ in 1993 but chief executive Mark Dewdney said last year it was a small unit that no longer fitted the company’s core focus. It attracted annual TEC funding in “the single million dollars”. Courses offered included Future Farmer, a 44-week, full-time course covering all aspects of farm management, an introduction to rural skills aimed at school leavers, operating rural vehicles and equipment, organics and a new course on animal care for smallblock holders. The closure was one reason Landcorp had ceased its Future Farmer farm cadet scheme, which was run by AgNZ at its Aratiatia Station near Taupo. Landcorp said it was also having difficulty getting sufficient interest, attracting only half the eight to 10 needed to make it viable.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

Coast farmers look to next milk season Alan Williams alan.williams@nzx.com WEST Coast dairy farmers are close to the point where they need to focus on making sure their cows are in good shape for next milking season after yet another downpour gave this year’s production one more hit. Heavy rain landed on already saturated ground, making grass growth very difficult, the region’s Federated Farmers chairman Peter Langford said. Westland co-op milk tankers were unable to get to some areas to pick up milk on Thursday and some, which had picked up milk, were unable to get back to the Hokitika processing plant because of flooding. “Conditions are extremely bad,’’ Langford said. “It’s been wet since late September.” Many farmers had already cut back on milking. Langford, who farms at Karamea, was down

to milking once a day before Christmas. “You’ve just got to make sure the cows are okay, that you keep them in-calf and look after them for next season.” He believed most cows were holding their condition and should be able to build-up quickly once conditions improved. However, it might mean drying-off cows a bit earlier than the usual late-May to give them recovery time before winter. Langford’s production at was 11% down on last season. He expected a 15% fall by the end of milking but in the southern areas of Westland production was already down by that much. Farmers were hoping for a much higher milk payout by Westland co-op this season, compared to the $3.80kg/MS last season, to make up for the fall in production. “If we can get $5 or $5.50 that has to be a lot better but the February weather forecast isn’t looking flash so we’ve got to watch

the drop in production. “The message is not to spend money.” He hasn’t bought any palm kernel this year, even though he was able to cut only three paddocks for sileage in November, compared with 11 paddocks the year earlier. Langford culled some cows in early December and said the once-a-day milking was taking some pressure off. “We just seem to be scraping by with the grass each week.” The westerly storm causing havoc to West Coast farmers was also forecast to create major wind problems in North Canterbury but that didn’t happen though the major Arthurs and Lewis passes were closed for a time by the heavy rain. The weather did bring strong winds and some rain to the east but without causing problems, North Canterbury Federated Farmers chairwoman Lynda Murchison said.

SLIGHTLY DAMP: Though some rain has hit the South Island’s east coast weeks of strong winds mean drought remains a concern, North Canterbury Federated Farmers president Lynda Murchison says.

One benefit at this time of year was that the spray irrigators were all full of water, helping secure them against wind movement. The long-running drought remained the main concern for the province. “It’s wetter than for the last three summers, with good spring rains and then some regular falls of 10mm to 15mm at a time but we’ve just had three weeks of north-westerlies to dry the land out.”

With farmers still having low stocking rates, the summer growth meant there was still plenty of feed on farms even though land was bone dry at just below root level. “There’s been no rushing out to restock and that’s one of the issue for farmers. At what point can you get back to full production?’’ Essentially, she believed that would require two or three years of above average rain to refill the aquifers.

Dairy prices marking time at GDT events Hugh Stringleman hugh.stringleman@nzx.com INTERNATIONAL dairy prices marked time at the most recent Global Dairy Trade auction, resulting in little change to New Zealand dairy farmgate price predictions. AgriHQ dairy analyst Susan Kilsby said the revised payout forecast using the latest GDT prices was $6.40/ kg milksolids, compared with Fonterra’s forecast of $6 for the 2017 season. The most relevant whole milk powder (WMP) price at the GDT auction was US$3255/tonne and the NZX Dairy Derivatives market produced a futures price of US$3400 for May delivery the day after the auction. The comparison showed the futures market expected a slight rise in world prices before the end of the NZ dairy season, Kilsby said. “Tight milk supply from the southern hemisphere is expected to support WMP prices through to the end of the season. “Prices are expected to trade in a band near current levels as tight supply will prevent prices falling too far. “During the second half of 2016 WMP traded at a premium to other product streams but prices rebalanced quickly when more milk was directed into WMP production.

“Demand for WMP is steady but not excessive, which means the upside potential for prices for the remainder of this season is also capped,” Kilsby predicted. ASB rural economist Nathan Penny suggested Fonterra’s move to increase WMP tonnages put into the GDT auction sales channel had backfired. “In our view, the move to take advantage of higher WMP prices has come at a cost. “The extra WMP offered has depressed the price significantly compared to what we anticipated it would be and despite a higher weighting for higher-priced WMP, the overall result is likely to be a lower overall milk price.” Nonetheless, Penny stuck with his $6.50 payout forecast, with some added downside risk. Westpac had a milk price forecast of $6.20 because it expected some weakness in WMP prices to occur before the end of the season. “To us, markets look to have run a bit ahead of fundamentals through the latter part of last year, so some retracement hasn’t come as a surprise,” it said. “We think prices will ease a bit further in coming months as global supply begins to stabilise.”

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

Spring weather brings dry risk Richard Rennie richard.rennie@nzx.com THE topic of many anguished post-holiday conversations, summer is proving a mixed bag for farmers and growers in Waikato and Bay of Plenty as both regions bent under almost unceasing westerly winds in recent weeks. All districts north of Taupo were recording significant wind speeds well over 50kmh most days, with Tauranga experiencing average gusts of 50kmh in the past week, Hamilton 45kmh and Taupo 44kmh though gusts often topped 80kmh. The unusual spring-like pattern had also been accompanied by fewer sunshine hours but relatively little rain accompanying the high cloud cover. MetService meteorologist Claire Flynn said conditions were more typical of spring and attributed the pattern to the location of high pressure systems north of New Zealand. “Typically, over summer, we would expect to see these highs sitting lower over NZ but this is not happening at present so we are getting westerly winds below them moving higher up the country and really affecting areas like Bay of Plenty, Waikato, Coromandel and Auckland.” Only the Far North was relatively immune from the unusual wind patterns but it was now starting to bear the brunt of an ominously dry period. Weather patterns tracking out of the northern Pacific that often bore moisture-laden air had been absent to date, with the strong westerlies containing relatively little moisture for the areas most affected by them. Flynn said the pattern had been exacerbated by particularly intense low-pressure systems to the south of NZ fuelling the strength of the south-westerly

winds being experienced. While the pattern was somewhat unseasonal, the conditions were not significantly unusual and were not related to either El Nino or La Nina conditions, neither which were in play. The upside for pastoral farmers had been slightly cooler conditions but the drying effect of the winds was starting to show up in NIWA soil moisture data. NIWA maps put the soil moisture deficit for much of the North Island as markedly drier than the historical average. DairyNZ Waikato consulting officer team leader Phil Irvine said while grass cover around Waikato was good, it was also somewhat deceiving given how dry the soil

was below that feed cover. “Things are looking pretty good in south Waikato. We have seen it worse there, no doubt. But certainly central and north Waikato are drier than last year and significantly drier than average.” TotalAg Waikato base farm consultant Rob Macnab said there was a line roughly north of Rangiriri in north Waikato where things became decidedly crisper underfoot. “If you look around the Morrinvsville-Matamata district there is a lot of feed and no-one seems too worried. “It is surprising, though, cattle and lambs are still not finishing despite that feed being there and are not getting up to weight.”

He maintained stock were about three weeks behind in weight gains from where they should be and expected a rush for the processors before the Easter trade window closed. In Bay of Plenty, kiwifruit growers were watching a mixed game play out between Green and Gold crops, with Green expected to be down significantly at harvest while Gold’s profuse fruiting ability continued. A key concern for growers was the impact of wind rub on fledgling fruit, affecting quality and appearance at harvest. DairyNZ Bay of Plenty consulting officer team leader Sharon Morrell said her catchment was starting to dry out markedly. “Unless you are on soil

with particularly good waterholding capacity, like around Rerewhaakitu, you have been badly affected by the wind. Even in only the past four days from January 8 to 12 the NIWA moisture deficit has increased significantly.” Farmers catching up daily in dairy production to get back to last year’s levels were now facing the prospect of sliding back again. “Last summer we had good rain from Christmas onwards and it did not really stop until September.” Generally farmers were in a good position feed wise but more were starting to assess their summer options, including considering once-a-day milking earlier than usual. “It is not as severe as what we are seeing in Northland.”

Bees being blown away over summer CHALLENGING summer weather is making things tough for beekeepers and their thousands of busy charges. Wind, rain and cooler temperatures have done little to help establish strong hive production around the country, with levels of manuka honey, in particular, proving tougher to harvest in recent weeks. Apiculture New Zealand board member John Hartnell said beekeepers were noticing a stopstart nature to the weather, with a couple of fine days followed by three or four unsettled ones making it difficult for hives to build up a reserve of honey for harvest. “And we are also getting these very strong winds, which in turn knocks flowers off the trees. At Akaroa I noticed many, many petals blown off manuka trees.” In the South Island there were many trees reduced to flowering as low as 30-40% of usual.

“There has been a lot of moisture and we did not have a lot of heat, which makes flowering challenging.” However, there was no fear a lower manuka honey harvest would endanger the high-value product’s supply to overseas markets. “There are plenty of stocks around the country from last season, due to a tailing off in sales in the last quarter of last year.” The problems noted with manuka also extended to conventional clover honey. “What we really need for the last third of January is five to 10 days of settled weather to give hives a chance to pick up. “The window is closing pretty quickly.” Even a drop in wind speeds, which were regularly exceeding 70kmh through Canterbury, would be welcome. “I think we have had only one day so far you could sit outside.

We really need to see some settled weather.” The story was similar further north on the East Coast where Gisborne beekeeper and fellow Apiculture board member Barry Foster said there had been a marked lack of swarming among bee populations this year, indicating a lack of nectar in citrus crops. “It was also affected by having a very poor spring with a lot of up and down temperatures.” The next big concern for the honey industry was a possible increase in the giant willow aphid population, as willow trees started to shut down and sap flow became more conducive to supporting larger populations of the pest. The honey dew secreted by the aphids was collected by bees and taken to their hives where it crystallised, clogging processing equipment and creating a honey with a distinct apple flavour.

BITTER BLOW: Unsettled, windy weather has affected bees and reduced manuka and clover flowering this summer, Apiculture New Zealand board member John Hartnell says.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

Tough rules curb dairy expansion Neal Wallace neal.wallace@nzx.com

NO PUSH: Plenty of Southland dairy farms are for sale so there is little impetus for people to buy farms for conversion, MyFarm executive chairman Grant Rowan says.

nitrogen losses measured from 2009 to 2013. Environment Waikato’s Healthy Rivers scheme and the Bay of Plenty Regional Council in the Rotorua lakes catchment put caps on nutrients that could be applied to land. Other councils were also tightening rules around land intensification. Holgate said councils’ response was driven by community expectation of water quality and trends. The rules prescribed limits of what could be leached and set expectations of good management. MyFarm executive chairman Grant Rowan said the actual impact of Environment Southland’s winter grazing restrictions was unknown but it appeared to restrict cow numbers by limiting the impact on the environment of winter grazing. There were plenty of dairy

farms for sale so there was little impetus for people to buy farms for conversion. “Fundamental economics are the key driver and with milk prices getting close to $6 my belief is that they need to be well north of $6 to see a strong surge in dairy conversions.” Perrin Ag Consultants, Rotorua, managing director Lee Matheson said Environment Waikato’s Healthy Rivers scheme prevented a shift in land use unless it could be proved nutrient loss from the new use would not exceed current levels. The Bay of Plenty Regional Council’s imposition of a nutrient cap in the Rotorua lakes catchment made land use change a challenge, he said. “If you are going to convert a farm to dairy you obviously have to do it so you have a much smaller environmental footprint than it had previously.” Matheson had a client

converting land to dairy in the central North Island and believed future conversions would be small scale, integrated with other use, such as forestry, and with lower levels of financial gearing. Those conversions would be by existing landowners converting a run-off or buying a neighbouring property to add to an existing farm. Holgate said while the focus had been on dairy, the same restrictions applied to sheep and beef farmers. The grand-parenting of previous nitrogen fertiliser application levels meant there was little opportunity to sell sheep and beef land for converting to dairy. “It means they no longer have the capacity to convert to a dairy platform. “It loses that potential value as a land use option that it previously had.” ECan’s principle strategy advisor Ian Brown said the council-

Lee Matheson Perrin Ag Consultants imposed nutrient loss limits on properties meant farmers must not exceed the average loss measured from 2009-13. Farmers on land where nutrient losses exceeded the permitted threshold were required to prepare a farm environment plan for their property which was audited regularly and required to meet a minimum grade. Brown said converting to dairy or increasing cow numbers would be more difficult given the nutrient loss limits. “Farmers can increase cow numbers provided they don’t exceed their nutrient limit.” Environment Southland director of operations Jonathan Streat said the council’s Water and Land 2020 and Beyond document was in response to the Government’s National Policy for Freshwater Management. It split the province into nine physiographic groups according to geological and hydrological characteristics, which it used to identify where risks were in relation to land use and impacts on water quality. Streat said dairy conversions were not prohibited but were treated on a case by case basis. “The challenge for those applying for consents is to provide a business case that takes account of the risks to water quality and offers solutions to minimise them.”

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TOUGHER environmental rules being adopted by regional councils will curb dairy conversions and herd expansion. While not banning the intensification of land or conversion to dairy, observers say council-imposed higher discharge thresholds and resource consents needed for activities associated with dairy farming effectively end the conversion of marginal land. It was still possible but more difficult to convert better classes of land. Councils were strengthening rules to limit the impact of nutrient leaching and sediment and effluent run-off and each council had its own approach. Rabobank’s sustainable farm systems manager Blake Holgate said councils tended to control the effects of land use intensification by requiring resource consents for activities other than converting the land, such as nitrogen leaching and run-off. Farmers wanting to increase cow numbers or production faced similar challenges. “A lot of councils have taken the grand-parenting approach to the application of nitrogen, which says ‘your future allocation will be based on past leaching levels’. “That becomes a restricting factor to increased cow numbers or increased production.” It would also curb the sale of sheep and beef land with potential for conversion to dairy. Environment Southland’s new water and land plan required consent to convert land to dairy and imposed rules around the area of land that could be devoted to winter grazing of cows in some parts of the province. Rules at Environment Canterbury allowed changes to farm operations within nutrient loss limits set for properties, which could exceed the average

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News

farmersweekly.co.nz – January 23, 2017

Retail sales hold the key Alan Williams alan.williams@nzx.com BUILDING up the new, branded retail meat business in Germany is a key part of Silver Fern Farms’ strategy to boost its trading profits. The company had invested a lot of money in the brand and marketing operations for the value-added trade, launched in March last year, covering beef, lamb and venison products, chairman Rob Hewett said. A new German marketing team had been put in place to build awareness of the premium, grass-fed products and the range was now stocked in more than 1000 stores. The up-front costs of the project were one of the factors in Silver Fern Farms suffering a net operating loss $7.5 million in its year ended September 30, a year described by Hewett as one of the toughest in a long time, especially for lamb but also in beef because of currency impacts. Experiencing the dual downturn at the same time had been difficult to cope with. The trading figures included a $5.5m cost of transferring venison processing to Pareora, near Timaru, and also building new cold storage there while there were also costs of shareholder meetings relating to the Shanghai Maling investment in the group. Otherwise the result was close to a break-even outcome, Hewett said. The value-add retail business made up about 5% of the total group business and with the benefit of the $267m capital injection from Shanghai Maling, the directors were targeting it to increase to 10% over the next four years or so as part of the move to a higher-value future. “If we can do that, it would be a real tipping point for us.” The domestic NZ market was becoming more important for Silver Fern and it was also used as a test-bed for the introduction of new products into bigger markets. Total value-add sales

AIMING HIGH: Silver Fern Farms wants to double its value-add retail sales over the next four years, chairman Rob Hewett says.

increased by 31% during the year. Silver Fern would also be working to increase the ratio of chilled product sold internationally, though it had also increased well, to more than 40% for beef and more than 30% for lamb in the latest year.

If we can do that, it would be a real tipping point for us. Rob Hewett Silver Fern Farms Silver Fern’s operating loss of $7.5m compared to a profit of $30.8m in the 2015 year ended September 30. Revenues fell to $2.2 billion from $2.5b. Many companies judged their earnings on the Ebitda measure (earnings before interest, tax, depreciation and amortisation). The figure for Silver Fern was $32.1m, down from $90.5m in 2015 and $68.5m the year before that. Lamb marketing was

difficult and compounded by the UK Brexit vote in June last year, which caused an overnight 35% lift in the value of the NZ dollar against sterling. Sheep meat volumes sent to the UK were not substantial but were high-value leg cuts and the UK was still the best paying market, Hewett said. The kiwi also strengthened against the euro and United States dollar and the currency “swings were very hard to deal with”. For beef, the US currency mix was the main issue but trading was also affected by the very high volumes of Australian beef pushed into the market early in the financial year. On top of the trading loss, Silver Fern also booked a oneoff write-down through the profit and loss account, in line with international accounting requirements, to value the business in line with the price being paid by Shanghai Maling for a half-share, rather than the historical book values. After an income tax expense of $700,000, the bottom line loss for the year was $30.6m, compared with a 2015 profit of $24.9m.

The company also took a $7.3m write-down through reserves (reversing earlier asset revaluations) so the total impairment charge was $30.3m. Operating cashflow remained positive but at $32.4m was well down on the $156.8m cashflow in 2015 and $91.5m in 2014. The latest balance date ratio of equity to total assets was 60%, steady with a year earlier. Total assets fell to $541m from $627m and shareholders’ equity to $324.4m from $368.4m. Group net debt fell to $107.2m from $121m in 2015 and $288.6m in 2014. Interest costs of $14.8m were half the previous year’s level. If the Shanghai Maling investment had been completed on September 30, the Silver Fern operating business would have had no core debt at balance date and would have had $90m in cash, Hewett said. That would have been in addition to $57m retained in the co-operative entity. Shanghai Maling and the Silver Fern Farms cooperative each owned half of the meat processing and exporting business.

Special dividend to be paid next month SILVER Fern Farms shareholders will get their share of a $34.5 million special dividend on February 14. The dividend of 30 cents a share on all ordinary shares and rebate shares follows the completion of Shanghai Maling’s $267m investment in SFF. Chairman Rob Hewett

said the special dividend would be welcome news to shareholders. “This is the first dividend shareholders have received since 2008. “Their support and patience as we have developed our Plate to Pasture value-added strategy over the past seven years has been critical to

Silver Fern Farms. “Following distribution of this dividend and the redemption of our Supplier Investment Shares completed last week, our co-operative will have distributed a total of $40m to shareholders.” Silver Fern Farms Cooperative now held a 50% share in a well-capitalised

Silver Fern Farms and about $17m in cash. The use of that cash would be determined by the co-operative board but was expected to be available for ongoing redemption of eligible Rebate Shares, running costs of the co-operative and potentially future distributions.

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News

10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

NZ story must be written fast Neal Wallace neal.wallace@nzx.com

COULD WORK: Creating a coherent message in a primary industries New Zealand story could be challenging but there are benefits from promoting NZ-grown, high-quality, natural products even if they are ingredients, Dairy Companies Association chairman Malcolm Bailey says.

THE Government is investigating the merits of a New Zealand Story brand to promote the value behind primary exports, an initiative that has the tentative support of industry. The merits of a NZ story were discussed by MPI’s strategic advisory group before Christmas but a spokesman stressed its work had just started and it was yet to consult exporters on their views, something it would do in coming months. The Meat Industry Association, Dairy Companies Association and Horticulture NZ all said they saw benefits from such a project. Special agricultural trade envoy Mike Petersen has been advocating for an authenticity brand similar to Ireland’s Origin Green to give consumers confidence NZ food products met welfare, environmental and quality standards. He warned competing food producers were already developing their own authenticity and provenance stories and NZ risked losing ground if it delayed further.

Petersen said the primary sector could no longer trade on the assumption the world wanted to buy its food and pay a premium for it because of its reputation. “That is not the case. “We need to demonstrate what our credentials are and we need to have proof that what we say, we do about how our food is produced. “We need to authenticate it.” MIA chairman John Loughlin described the NZ story as “a useful concept”. “To have a message that hangs together well and is underpinned by the right sort of action will be positive for NZ exporters.” Some companies had already embarked on their own branding programmes and Loughlin said the needs of the various sectors differed. For wine the regional indicator was important but to those supplying products used as ingredients, provenance was not as relevant. “It is an interesting concept and worth exploring to understand the details.” DCANZ chairman Malcolm Bailey agreed but said creating a coherent message or story could be challenging. “How do you pull those threads together because it has to be a simple story?” Some companies were excellent at marketing their products but Bailey said the question had to be whether products could be lifted to another advantageous level. There were benefits from promoting NZ-grown, highquality, natural products even if they were ingredients. “That is definitely a marketing position for us but how do you push it in a way people say ‘we get that’ and NZ products are deserving of earning a premium.” Hort NZ acting chief executive Richard Palmer said customers paid premium prices for quality, safe food and for the sustainable management and stewardship of the land. The industry had schemes to ensure food safety, traceability and sustainability and it had steps to mitigate counterfeiting, which were all messages to tell consumers. But, the best stories were about people, their intergenerational link to the sector, how they cared for the environment while growing quality fruit and vegetables. “We feel that story needs to be told within NZ and in our export

markets and Horticulture NZ is working on that.” Palmer saw benefits from collaboration. “So while Horticulture NZ is focused on telling our story, we would certainly welcome any opportunity to partner with others to educate people on where their food comes from and the values that come from the seed to the plate that are unique to this environment.”

In my view we need a programme within six months or we run the risk of falling behind. Mike Petersen Trade envoy A brand or NZ story needed to be owned by exporters rather than be a Government imposed scheme. Petersen saw the Government’s role providing assurance as an independent auditor. Those involved in the Te Hono leadership programme, representing leaders of a significant portion of the primary sector, would also discuss the merits in the coming months. Petersen said producers in other countries were developing their own authenticity brands which he saw as our competition, such as the United Kingdom’s red tractor brand to encourage local consumers to buy their products. That coincided with the growth of plant-based protein developed to replicate meat and milk with backers of the projects linking their support to disdain for factory farming, which could capture NZ by association. “It’s got to happen quickly. In my view we need a programme within six months or we run the risk of falling behind.” Ireland’s Origin Green brand was a commitment from Irish farmers and food and beverage manufacturers to sustainable production, reduced emissions, waste and energy use and improved social responsibility. So far 90,000 farms had been audited and carbon foot printed and 470 food and beverage manufacturers representing 95% of total food and drink exports were registered to participate.

TRUST: The Red Tractor food safety and quality logo is actively promoted to get consumers to buy British food.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

NZ to move quickly on UK agreement NEW Zealand will be one of the first movers to negotiate a post-Brexit trade position with the United Kingdom, Trade Minister Todd McClay says. Speaking to Farmers Weekly at the end of a week of meetings in Brussels concerning the launch of NZ’s formal free-trade agreement negotiations with the European Union, McClay said NZ would remain good friends with both the EU and the UK throughout the expected two years of the Brexit process. “We have a long-standing relationship with the UK, as we have with the EU, and will be working very hard to balance these interests over the next few years,” he said. “We’ve made it very clear to the EU that an FTA will be a prized development for NZ but so is our relationship with the UK. “I have therefore said

to Liam Fox (the UK government’s Brexit trade minister) that when the UK is legally able to take on obligations and is ready to do so, we would want to negotiate with them too. “I would expect, in fact, that we would be one of a small group of countries that would be first movers in negotiating with the UK. “While what happens following the triggering of Article 50 and the twoyear period of negotiations that will follow is very much an issue for the EU and UK alone, we’ll remain good friends to both and support both to the largest degree.” McClay’s comments followed a series of meetings in Brussels where he joined Prime Minister Bill English in talks with European Commission president Jean-Claude Juncker and EC trade commissioner Cecilia Malmstrom. “The talks have gone extremely well,” McClay

NZ could be EU’s gate to Asia-Pacific NEW Zealand can become the gateway to Asia-Pacific markets for European Union exporters, Trade Minister Todd McClay says. In addition to any direct trade benefits gained through a deal with Europe, the potential existed for NZ to become an increasingly important gateway to the Asia-Pacific market for EU businesses. “After visiting a number of EU member states over the last two years, I’ve been struck by the interest shown, particularly by small-medium size enterprises in using NZ as a base for gaining better access to Asia and the AsiaPacific market,” he said. “In that context, our negotiation objectives will include making sure businesses have fairer and more balanced two-way access for agricultural products, looking further up the value chain and seeking

to deliver an agreement that not only benefits the citizens of EU and NZ but also our SME business owners and workers.” NZ’s free-trade agreement with China, which came into force eight years ago, had allowed trade between the two countries to grow from a starting point of about $4 billion to more than $20b. NZ’s trade with the EU was already worth in excess of $21, a comparison McClay believed highlighted the enormous potential for future trade growth with the EU once the promised agreement was in place. “The big value of an EU FTA for NZ companies and for the national economy will be to have clear trading rules with a friendly partner, which we can both rely on to give businesses greater investment certainty than exists at present,” he said.

said, adding that they followed more than two years of preparatory work during which he’d engaged extensively both with the EC as a whole and with a number of EU member states. “I’ve personally had bilateral meetings with 21 of the 28 member states during that time and we’ve always been very well received.” McClay believed Juncker’s two to three year timetable for concluding an FTA was optimistic but achievable provided both parties took a pragmatic approach to the coming negotiations. “Both NZ and the EU will have issues of importance to discuss during the negotiations and that there will be sensitivities to be addressed,” he said. “Agriculture will certainly be one of these areas. “We have NZ companies, for example, that have invested heavily in the processing of agricultural and food products in Europe.

BOB EACH WAY: Trade Minister Todd McClay says the aim of a free-trade agreement with the European Union is both optimistic and achieveable.

I would expect, in fact, that we would be one of a small group of countries that would be first movers in negotiating with the UK.

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Todd McClay Trade Minister “While there are always issues which are difficult in any negotiation, the very best place to deal with these issues is as part of the negotiation process itself. “It is my hope, therefore, that both the EU and NZ will take a pragmatic and proactive approach to the negotiation and that we will, as a result, deliver outcomes that are good for industries on both sides.”

Britain wants freetrade deal with EU Colin Ley BRITAIN’S Prime Minister Theresa May has ruled out the prospect of the country having a continuing participation in the European Single Market or the European Union Customs Union. Instead, she intended to seek a free-trade deal with the EU as part of the United Kingdom’s post-Brexit relationship with it. May’s much-hyped Brexit priorities speech, delivered on Tuesday, was welcomed in part by UK farming bodies but also drew criticism on several points, not least the continuing confusion over the future rights of EU workers in the UK, which was seen as a vital issue for many farm and food businesses. The reaction from National Farmers Union council members was that the speech still left “legitimate and important concerns”, especially in relation to

the UK’s future trading relationship with the EU. Commenting specifically on the plan to negotiate an agreement with the EU, the NFU council said “We hope the prime minister’s ambition can be achieved but, as we know, these kind of deals normally take years to conclude and do not cover all products. “If a quick and comprehensive deal cannot be achieved it would be absolutely vital that there are appropriate phased arrangements to avoid a disruptive cliff-edge to allow Britain’s farmers to adapt.” The NFU would now seek urgent talks with the government about how a post-Brexit Britain could work for Britain’s food production and for detailed commitments on a suitable transition period. “We continue to urge the prime minister to ensure that British farming has a profitable, productive and resilient future post-Brexit .”

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

Green kiwifruit volumes falling Richard Rennie richard.rennie@nzx.com

ACCOUNTS DIFFER: There are two very different stories for kiwifruit volumes this yhear, Kiwifruit Vine Health chief executive Dr Barry O’Neil says.

tended to affect specific orchards. “We have seen its effect wane since we have had drier weather. “There are two very different stories this year, though, for crop levels. “The Gold crop is looking pretty good, possibly back strongly

on last year’s very good crop but still solid. The Green crop is significantly down on last year, by up to 25%.” Kiwifruit Growers chairman Doug Brown said that was attributed to the Green variety having a tough flowering last spring when there had been a

distinct lack of winter chilling to encourage bud burst. That combined with lower sunshine hours since then reduced the quality of Green buds. He also felt any production this year might be lower because of vines “taking a break” after two very high yielding seasons.

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A DIFFICULT spring flowering, wet conditions to Christmas and a touch of Psa have all contributed to a slide in expected Green kiwifruit volumes in the coming harvest. Bay of Plenty growers were reporting mixed levels of fruit loading on vines, ranging from reductions of as much as 50% on last year’s bumper harvest to minimal drops in volume. Despite some growers claiming Psa to have re-asserted itself with a vengeance, it appeared the effects were limited to specific at-risk orchards bearing the brunt, rather than any wholesale increase in the devastating disease’s presence. But one grower described how Psa seemed to have “turned turtle”, shifting from the tolerant new SunGold variety to have a greater affect than before on the Green Hayward vines. Bay grower Stu Moss said he had seen crops hit with losses of up to 50%, largely because of the disease. Kiwifruit Vine Health chief executive Dr Barry O’Neil said Psa would always be a problem requiring management but

Last year the industry reported a harvest of 90 million Green trays and 25m trays of Gold, back to pre-Psa volumes. A Zespri spokeswoman said it was still very early in the season to estimate total volumes accurately. She confirmed Green flower numbers and therefore fruit volumes were down for the 2017 season. “However, forecasts move a lot during the season and we generally don’t know accurate volume forecasts until well into harvest – also, the fruit is sizing well on the vines. “Taking all this into account, we’re still looking at the secondlargest crop in Zespri’s history.” She pointed to each season being different with climatic factors affecting volumes differently each year. “Contributing factors include low autumn sunshine this year, a warmer winter and significant increases in average yield over the past three seasons. “We are continuing to roll out our five-year market development strategy and over the five-year plan our strong total volume growth will continue as SunGold volumes increase to meet consumer demand around the world.”

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14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

Okay sought for new RHD strain

KEEP IT LEGAL: The applicants who want to release a new strain of RHD are determined there will not be a repeat of disorganised, illegal release in 1997.

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A NEW strain of rabbit-killing RHD virus could be released this winter. Increasing immunity among rabbits means the existing RHDV1, or Czech strain, has become less effective and advocates say the RHDV1 K5, also known as the Korean strain, would overcome protective antibodies and improve kill rates by up to 40%. Federated Farmers South Canterbury high country section representative Andrew Simpson said the original RHD strain was still working to a point but growing immunity had allowed populations in some areas to recover, meaning a new, virulent strain was needed. Rabbits less than three months of age exposed to the Czech strain became immune, which resulted in the population returning to plague proportions in some parts of the South Island. “That is not necessarily throughout the whole island,” he said. An application has been made to the Environment Protection Authority and Ministry for Primary Industries for approval to import the strain with a target release window of April-June this year. Simpson said RHD was already established in NZ and the Korean strain was a derivative of that. The applicants were determined not to have a repeat of the disorganised release in 1997 when the virus was illegally released after officials rejected the import application. “We really want to make sure this release is done methodically and to the best possible advantage to maximise its impact.” When it became clear in 1997 that Ministry of Agriculture and Forestry officials would decline an import application lodged by regional councils and farming interests because of what they claimed was a lack of information, farmers smuggled in a sample of the virus, which had broken out of containment trials in Australia. A clandestine network of South Island farmers used a variety of backyard methods and recipes to spread the virus as widely and as quickly as possible so it could not be contained once officials realised. Simpson said this time the release process would be done at the right time and strategically to ensure the maximum impact. The approval process has been run as a Sustainable Farming Fund project and as part of that, Landcare Research would prepare a release and monitor strategy. The Korean variant of the virus has been approved for registration by the Australian Pesticides and Veterinary Medicines Authority and Simpson said an Australian release was planned for March-April this year. While the Czech strain infected only the European rabbit and there were no human health risks, Simpson said the virus in itself would not result in the eradication of the pest.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

Vandals attack green farmers Neal Wallace neal.wallace@nzx.com THE farmers attacked in what is being seen as an anti-irrigation protest by environmentalists won the 2015 Canterbury Ballance Farm Environment contest. It was believed 44 tyres on centre pivot irrigators were slashed by environmental vandals. Richard and Annabelle Subtil of the 12,000ha Omarama Station in the Mackenzie Basin woke last Saturday morning to discover the damage, which cost $30,000 to repair. Police believed it was an act of protest because the irrigators, which were working at the time, were 500-600m from the main road and because of the tone of subsequent social media traffic. “Social media stuff out there points in that direction,” Subtil said. The attack left him dumbfounded, saying he and everyone else who farmed on the banks of the Omarama Stream took care to ensure they did not affect water quality. “If these people think they are helping the situation then that is very sad and very disappointing.”

NOT SCENIC: A pile of ruined tyres provides a blot on the McKenzie Country landscape after they were slashed by vandals who attacked irrigators at Omarama Station.

The farmers voluntarily sampled water from the stream and gave the results to Environment Canterbury. A recent Cawthron Institute analysis of aquatic life and water quality in the stream described it as “excellent”. Subtil was working with several

science organisations and had installed lysimeters on irrigated paddocks to monitor the moisture and nutrient holding capability of the soil, with results showing losses to be negligible. The Central South Island Fish and Game office had been in contact with a message of support.

Subtil said he was not denying farming had negative impacts on the environment and had been open and committed to working with others to ensure he was doing all he could to reduce his impact. “We’re not saying we have got everything right but we’re working hard to make it right.” The state of the environment at Omarama Station was his generation’s legacy and he said he had no intention of leaving it polluted and degraded for the family’s fourth generation to inherit. Subtil said he was stepping up security as a result of the attack. Irrigation NZ chief executive Andrew Curtis said the attack was unusual and worrying and would do little to resolve differences of opinion. Irrigation had become contentious in the Mackenzie Basin where some people thought the golden landscape should not be altered. Curtis said the attack of the Subtils was illogical. “It makes no sense picking on someone who is a leader in irrigation and doing a really good job.”

It makes no sense picking on someone who is a leader in irrigation and doing a really good job. Andrew Curtis Irrigation NZ He suggested all irrigators improve their security. Before Christmas Curtis said his organisation decided to be proactive and engage with critics and was meeting Greenpeace. It would allow Greenpeace to air its concerns but to also learn what irrigators were doing to improve water quality, the time it would take for those steps to have an impact and the limitations imposed by councils. “We decided that this back and forth discussion was not productive, that you can only resolve differences if you go and have a conversation.” Similar invitations would be extended to Forest and Bird and Fish and Game.

Potato growers join biosecurity alliance POTATOES New Zealand has become the 14th industry body to sign a biosecurity agreement with the Government. The Government-Industry Agreement (GIA) for Biosecurity Readiness and Response was signed on Friday, 9 December by representatives at a potato farm at Koputaroa, north of Levin. Attendees included PNZ and Government representatives, Primary Industries Minister and Koputaroa dairy farmer Nathan Guy and the GIA Secretariat. The potato industry was worth $814 million a year. The country’s169 registered potato growers produced 479,000 tonnes of potatoes in 2015 from 10,700 hectare.

Like all other horticulture industries, the potato industry faced a number of biosecurity threats that could damage the industry. One at the forefront of people’s minds at the moment was the tomato potato psyllid (TPP), PNZ chairman Stuart Wright said. “MPI have really lifted their game in the biosecurity space, implementing a number of key initiatives to help with the early detection of pests and diseases. “PNZ considers it is important to play our part as potato farmers to help prepare for and minimise the potential impact from biosecurity pests and disease,” Wright said.

PNZ chief executive Chris Claridge said “Biosecurity prevention and planning are essential to ensure the commercial wellbeing of the potato and wider horticulture industries. “Potatoes are a much loved part of every New Zealander’s meals. “We need to protect potatoes from biosecurity pests and diseases to ensure future generations to come will continue to enjoy potatoes with their meals,” Claridge said. GIA Secretariat manager Steve Rich said “PNZ represents one of the larger vegetable crops and is a significant addition to the partnership.”

VITAL: Potato growers consider it important to play their part in biosecurity, Potatoes New Zealand chairman Stuart Wright says.

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16 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

News

Serious issues to get more money Hugh Stringleman hugh.stringleman@nzx.com JUST under $4 million of new grants were approved by AGMARDT in the 2016 financial year and it ended the year on June 30 with trust funds totalling $86m. The annual report said the number of grants increased by 15%, with 112 applications approved during the year. The largest portion of new grants was for agribusiness innovation, at $2.2m, or 56% of the total. AGMARDT’s capital funds returned 8.9% from investment, being slightly lower returns because of uncertainty and disruption in world markets. Total funds fell from $89m at the start of the year. However, the well-diversified and conservative investment position adopted by the AGMARDT trustees, increasing the strategic asset allocation at the expense of growth assets, served the trust well. Funds remained above the upper investment reserve level of $76m and, therefore, trustees committed to maintaining a consistent level of grants at about $4m in the 2017 financial year. The report mentioned some

THINK MORE: AGMARDT plans to fund more thought leadership, chairman Barry Brook says.

grant highlights, including the Spring Sheep Dairy market insight research in Taiwan and Korea for developing sheep milk products, NZ Merino placing senior executives in the United States, Farmshed Labs work on the FlashMate cow heat detector,

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3D printing using wool derived proteins at Otago University, Stock-X’s development of online livestock trading and a grant to Onside for a mobile health and safety management application for rural businesses. AGMARDT was a principal sponsor of the Te Hono Stanford Bootcamp movement and also jointly funded the Primary Industries Emerging Leaders Scholarship with the Ministry for Primary Industries. It continued to support the Nuffield and Kellogg joint venture, the Agri-Women’s Development Trust, St Paul’s Collegiate’s agricultural curriculum for secondary schools, Massey University and Food HQ, the ONGOING: AGMARDT is continuing to support St Paul’s Collegiate deputy Young Farmer Contest and the headmaster Peter Hampton’s agriculture curriculum. Young Horticulturalist competition. “It is our intention to expand in this thoughtleadership area by initiating and funding some research on serious issues likely to impact the primary sector and which warrant wider public debate,” AGMARDT chairman Barry Brook said. Examples of such issues were farming in a low-carbon quality of the event would be high, Alan Williams environment and genetic Hollander said. alan.williams@nzx.com modification. Entries were also expected from agricultural fencing, sheep NATIONAL and world champions dog trialling, several horse will be in line to be the inaugural sporting groups, the Highland New Zealand Rural Sports Award Games Association and gumboot winners. throwing, where NZ also had a The organisers are still waiting world champion. for nominations to be filed by “NZ is steeped in the tradition the January 31 deadline but the of rural sports and we should awards night, in Palmerston have had these awards years ago,” North on March 10, was already Hollander said. “We’re finally a sell-out with 360 people lined getting around to it.” up to see the winners and hear Hollander was also founder guest speaker, Olympic rowing and organiser of the NZ Rural champion Mahe Drysdale. Games, which would be held in A number of nominations Palmerston North on March 11 were already in but clubs and and 12. associations should be finalising Heading the sports awards other entrants now for the four judging panel was former All awards, organiser Steve Hollander Black great and founding board said. member of the Rural Games The categories were rural Trust, Sir Brian Lochore. Joining sportsman, rural sportswoman, him were former world shearing sponsored by NZ Rural Games champion Sir David Fagan, Trust, young sportsperson and Olympic equestrian medallist contribution to the rural sports Tinks Pottinger, Taranaki-King industry. Country MP Barbara Kuriger, NZ had a number of world Hollander and commentators champions in rural sports Craig Wiggins, Tony Leggett and including wood chopping, tree Jamie Mackay. climbing and shearing so the

Still time for games awards

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BUSY: Steve Hollander is the organiser and a judge for the rural sports awards and games.

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18 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

Newsmaker

FARMER IN THE CITY: New Auckland deputy mayor Bill Cashmore says the creation of the supercity was good for the rural sector becaue it got rid of a lot of rules and halted rural subdivision.

Farm thinking to build supercity After leaving school at 17 Bill Cashmore started at the bottom of the farming ladder and worked his way up. Then six years ago he thought the creation of Auckland as a supercity could cause problems for rural people so he got into politics and again started at the bottom and worked his way up. He is now second in charge. He told Glenys Christian about his aim to be not just a voice for rural people but to take a New Zealand Inc approach to the job.

HEN Bill Cashmore built fences on his Orere Point farm he made certain they would be around in 50 years time by using eight wires and plenty of battens. “You mightn’t put up so many but you were sure they would last,” he said. And now the new deputy mayor of Auckland is applying the same logic to the huge infrastructural issues the city faces. “You’ve got to build for the future,” he said. “Everything is coming at us faster so we need a New Zealand Inc approach.” The 59-year-old left school at 17 to go home and start at the bottom on the 1200 hectare farm settled by his ancestors in the 1880s when they arrived on horseback. In each generation since, one person has been able to buy the rest of their siblings out, allowing

a straight line of succession. After a few years a Meat Board fellowship allowed him to visit the United States then he travelled to Europe before heading back to the farm to eventually take it over. Today 3700 Romney ewes are run with 360 straight Angus cows on the home farm and 600ha of leased land nearby. A third of the ewes are put to a terminal sire with 4000 prime lambs going off the property every year. Over 95% calving rates are achieved but sheep and beef farming has mostly been a struggle for the last 35 years. The worst times were in the 1980s when he cut scrub and fenced around the area to pay the mortgages he and wife Lynnette, a nurse, held. Now son Robert is farm manager assisted by Willie Jenkins while the Cashmores’ other son, Benjamin, lives in Melbourne where he works for Crown Casinos.

Bill decided to get involved in local politics just six years ago when the Supercity was formed. “I could see it could be problematic for rural people with everything getting sucked into the city,” he said. A run-in with the former Manukau City Council persuaded him as to his response. “The only way to fight is from the inside.” He ran for the local board, became deputy chairman then, with the retirement of the local councillor, took over that position. He chairs the council’s Rural Advisory Panel then, when councillor Sir John Walker stood down, also became the chairman of council’s Audit and Risk Committee. That led to then Mayor Len Brown asking him to sit on the Auckland Transport Alignment Project with the Government, which took a collaborative approach to the many issues involved. “It stopped paralysis by endless analysis,” he said. With the recent election of new mayor Phil Goff he was named deputy, taking over from Penny Hulse. “I didn’t expect the mayor would pick another grey-haired guy,” he said. He’s settling into what he still calls Penny’s office, seeing the priority in his new role as ensuring

the work of council is well understood by politicians through working closely with central Government. He describes Auckland as the biggest rural district in the country “and probably the most diverse”. “People are doing the most amazing things and they have to be nurtured and cared for,” he said.

People are doing the most amazing things and they have to be nurtured and cared for.

He believes the council’s unitary plan is a great win for the rural sector because, through a collaborative approach, it’s got rid of a lot of rules inherited from previous councils and rural subdivision has been halted. But he fears for farmers affected by Waikato Regional Council’s Healthy Rivers Wai Ora plan. “People with skin in the game have been marginalised,” he said. “They’re angry and afraid. But all farmers are environmentalists at heart.” On his farm virgin bush pockets remain in all paddocks and streams have been fenced off

over the last 30 years as income allowed. Auckland Council’s evenhanded approach is seeing a reduction in non-complying urban water run-off such as that from roads or wastewater plants so water quality overall is heading in the right direction, he said. But the big unknown for rural areas is what science will deliver when it comes, for example, to improved stock feed. The recently released Sea Change Spatial Plan for the Hauraki Gulf will be a challenge for the council and likely to be “put up the drafting race”, he believes. “But parts will be lifted out and go into planning mechanisms.” The key is that all sectors understand their part in the process. “Everyone wants something perfect but they don’t want to pay.” He describes himself as still a farmer at heart despite his fitness routine now involving climbing 100 flights of stairs in the council’s office before his working day begins about 7am, rather than farm work. But there’s one thing about which he’s very certain. “I’m not ever going to stand for mayor,” he said. “You inherit everyone else’s potholes.”

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

Pizza cheese nearly didn’t stick Andrew Fletcher

Y NOW, you’ll probably know about Fonterra’s plan to build a new, $240 million mozzarella plant at Clandeboye, near Timaru. It will be the biggest food service investment in New Zealand dairy industry history and will make the co-op the largest manufacturer of mozzarella in the southern hemisphere. It is also understood to be one of the largest investments in implementing a new dairyprocessing technology anywhere in the world over the past decade. What you might not know is that Fonterra’s stunning success is a victory pulled from the jaws of potential defeat, a victory secured through great science supported by a world-class public-private investment programme. The co-op had commercialised the core of the new mozzarella technology some time ago. However, we didn’t fully understand how the different stages of the process contributed to the structure and performance of the final cheese so there were a number of quality issues with product from the original factory. There was a risk the first plant would be the last. But we believed we had a great technology. We realised that to take that great technology to commercial reality on a large scale we needed a better understanding of the fundamental structure of the cheese. We needed to build a body of science and technology that linked the changes that occur during the cheese-making process to the performance of the cheese all the way through to the consumer experience on the final pizza. For that to happen Fonterra needed a partner able to see the opportunity for the industry

and economy, one willing to support that build in capability by investing in different scientific disciplines that aligned with the co-op’s traditional strengths. The Transforming the Dairy Value Chain (TDVC) Primary Growth Partnership programme was that crucial support. It is part of a seven-year, $170m innovation programme led by commercial partners, including DairyNZ and Fonterra, and partnered by the Ministry for Primary Industries. It gave us the opportunity to look into the science of mozzarella, to seek a deeper understanding that would enable us to stretch our technology to its fullest extent.

It has enabled us to build a multiorganisational team that has brought together expertise in material science and polymer physics alongside our more traditional strengths in dairy chemistry and food engineering.

It has enabled us to build a multi-organisational team that has brought together expertise in material science and polymer physics alongside our more traditional strengths in dairy chemistry and food engineering. Some of that great work has been done in universities and research institutes around NZ and the rest of the globe. Much of it has come from a team of researchers at the Fonterra Research and Development Centre (FRDC) in Palmerston North. They have been focusing on the design of the commercial

scale plant, combining the scientific and technical insights with experience from the existing factory to produce a commercially viable process. The performance of mozzarella on a pizza is typically judged by subjective criteria – the extent the cheese stretches before it breaks and the number and colour of the blisters that form on the top when the pizza is cooked. Treating mozzarella like a physical material and applying tensile tests enabled us to see how the structure changes when force is applied and what structure leads to the best stretch. Using mathematical models and small-scale equipment we have been able to predict how the design and operation of mixing equipment will affect the finished cheese. From this, the process development team has been able to determine the optimum operating conditions for a plant producing many tonnes of cheese per hour, benefiting the performance of the existing plant and the design of the new one. This combination of in-depth scientific investigation coupled with practical application proved extremely powerful. Its success has been recognised around the world. Recently, an international panel of global dairy science experts, including Allen Foegeding from North Carolina State University and Erich Windhab from ETH Zurich, concluded the food structure design collaboration at FRDC was “one of the top three and possibly the top programme in the world”. That great science has helped the co-op take a bigger slice of a growing global market, to the benefit of the dairy industry and national economy. The researchers, technologists and scientists at FRDC and further afield are looking beyond the capital project to future product enhancements.

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SOMETHING TO SMILE ABOUT: Fonterra’s success in its mozzarella technology was a victory pulled from the jaws of potential defeat, its external research and development and portfolio general manager Andrew Fletcher says.

Studying the role of fat in delivering the baking and sensory properties has helped us to see how we might reduce or replace fat with other dairy components to create lower-fat mozzarella options. Further studies of the interactions between the structure, process and product make up the core of a food material science approach to innovation in other food products, including UHT whipping creams. In this application creams need to be stable in liquid form throughout the supply chain, be easily and quickly whipped to incorporate a large volume of air then remain stable in the form of attractive cake decorations for over 24 hours. These are just two of many products that will be developed and created using great science as part of the co-op’s plan to grow a $5 billion food-service business by 2023. They are a clear signal of Fonterra’s ambition to significantly boost its value-add business and also the value of public-private partnerships in supporting the great science needed to get there.

The

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Opinion

20 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

EDITORIAL

Keep producing the best food

Bryan Gibson

LETTERS

More letters P21

Farming’s enemies lie within I READ with enjoyment, if that is the correct description, Alan Emerson’s recent comments on the continual written and verbal abuse by Greenpeace of dairy farming. This has now reached a stage of indoctrination similar to that perpetuated by Hitler’s propaganda Minister Dr Goebbels on the virtues of Nazism and also on Communism by Lenin and his successors in Russia. As an ex dairy farmer I have always considered the main enemies of farming are those within our borders who again and again stress the evils of farming and the damage it is doing to our environment. Our concern seems to be a fixation on getting our products into protective overseas markets, when the

real insidious enemy is already inside our gates. A pity William Hogarth, the pictorial satirist, is not around. He would have had a field day. Naturally, this abuse by Greenpeace is politically motivated, directed like Communism in the 1920s at our idealistic, impressionable young, principally through the education system then by a constant stream of media releases; purporting the theory that only the Greens can save this country from ultimate pollution. This goes hand in hand with the perennial climate change diatribe, helped by those employed and paid by Governments to generate a state of fear as well as being a very successful method to increase indirect taxation by the back door. As Lenin so correctly stated

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No fire ALAN Emerson had a go at Greenpeace in his Alternative View article last week. I’m a kiwi who has been living in Malaysia for 20 years. I am quite well connected to the palm oil industry through my interest in biomass, bioenergy, biochar and agriculture. Emerson is way off the mark with his statements about burning palm kernel. Palm oil companies will sensibly try to maximise profits by selling waste or co-products at the best price. If New Zealand stopped buying, prices would reduce locally ... maybe to the point where it again becomes a cost to handle. Continued nexgt page

Letterof theWeek

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

“To establish Communism in a state one must first destroy that state.” In the 1920s and onwards this was actually recognised as solely a military solution. Since the end of the Cold War and the so-called demise of Communism, it has reformed itself into organisations like Greenpeace to promote its ultimate cause and objectives. Since the advent of our MMP electoral system and the amalgamation of rural electorates; power has been placed firmly into the urban centres. Political parties of necessity subscribe daily to bases of power. Agriculture regretfully lost out in the final analysis, despite and because it is a minority, in a minoritycontrolled Parliament.

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T’S been a strange couple of months, weather-wise. Spring has refused to surrender to summer and the wind is driving everyone crazy. I spent more time sitting by the fire than swimming over Christmas and New Year. Summer appears to be a tale of two halves with the east very dry and the west very wet. Here in Manawatu the grass is still growing and everything’s a lovely shade of green. With the constant springlike wind and the rain I’m not sure it’s optimum farming weather, though. Of course Northland, Hawke’s Bay and North Canterbury are very dry and farming there is challenging. As I write the country is being blasted by wind and rain though the dry south has copped the wind and not the rain. Here’s hoping Northland gets a good drenching. The winds of change are blowing through the United States and Donald Trump will have taken the oath and been sworn in as president by now. Global markets seem optimistic about his leadership plans, with growth in investment and jobs predicted. His aversion to global trade and plans to close the US border are making the rest of the world edgy. With Brexit in motion there will be changes aplenty for exporters in the near future, though the New Zealand Government seems positive after a recent trip through the United Kingdom and Europe. Interestingly, a front-page story in an English language Chinese newspaper last week outlined the Chinese government’s plans to embrace global trade, to fill the void created by an inward-looking US. It also wanted to lead the way in clean energy, something the rest of the world will applaud. While the world is changing, what shouldn’t change here is our commitment to producing the best food we can. There are people out there who want to buy high-quality meat, dairy and fruit and ours is the best going. As long as we continue this, we’ll be sure to find a market for our exports, wherever it may be.

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

Rapid reactions Paradise lost Sometimes, when I read farming magazines, I struggle to reconcile the content with actual farming life.

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

David Fullerton What a great read this was. It mirrored our young lives and upbringing as well.Paradise lost, sadly yes I have to agree!

Wool sales difficult The market for strong wools remained difficult at Thursday’s first auctions of the year. @GreenhillStud Our main shear was done before Xmas; wool still waits on farm. Hoping for a lift in strong wool price, but likely another sinking commodity. Follow us: @NZFarmersWeekly

FW Poll Will there be a new run on dairy conversions now the milk price is looking up? Yes No bit.ly/FWpolls Last week’s poll:How important will water quality be in the upcoming general election? One of the most important 0% Just one of many issues 83% Not that important 17%

NEW ADDITION: Waikato’s Heather O’Neill took this picture of Damara sheep Johnny and Clover with their new ewe lamb.

LETTERS It won’t be burnt. The default option for disposal would be back into the plantation as a mulch. Not a lot of composting is going on but that’s another story. Open burning by plantation companies comes with large fines. Yes, I know about the haze issue – another story. My guess is, if the palm kernel value dropped because of reduced exports then more of it would end up in the belly of local herds. Maybe the best possible result considering the biosecurity risks I see in its export, knowing what goes on in this part of the world, and the poor C-cycle outcomes from exporting bulky, low-value biomass. Trevor Richards Malaysia

Join MIE THE personal commentary of former Silver Fern Farms chief executive Keith Cooper (Farmers Weekly, January 9) cannot stand unchallenged. What is highly significant in Cooper’s offering is the conformation of the high level of personal antagonism between the various main players in the industry then and probably today. Personal conflict not cooperation still rules the industry. Cooper recalls the PPCS v Richmond debacle. It would seem to this very day that Cooper and his fellow, then senior colleagues, (Barnett, Pringle, Garden) did not understand that the PPCS hostile takeover of Richmond was all for the wrong reasons.

It is well established internationally that most takeovers fail because of directors not understanding the need for a natural symmetry between the merging companies – ie, a processor and the marketer to ensure real success. Mergers/takeovers will fail to deliver promised benefits to shareholders because of a desire for power and control by one company’s directors in a futile attempt at rationalisation by force. It is believed that PPCS then lost 30% of market share because of the takeover. Today, the numbers are worse. SFF has lost about 50% of the sheep meat market since the takeover of Richmond. In 2002 PPCS and Richmond had a combined total of 88,943 tonnes

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of the sheep meat quota or about 40% share. In 2017 SFF has 48,236 tonnes of the quota or 21% share. Cooper writes of integrity. He should have also quoted the words of High Court Judge William Young who refers to “gross commercial misconduct” on the part of PPCS. Integrity Mr Cooper? Really? He now laments in his letter the failure of a single pricing structure for SFF. As chief executive of SFF, Cooper had the opportunity to implement a raft of changes based on (especially) a new culture to the marketing of New Zealand red meat to the world. Nothing changed The reality of today’s SFF structure can be sheeted home to the stewardship of the company in large measure to the “Richmond affair”. As for

Cooper’s belief in farmer control of the processing industry, I really don’t know whether to laugh or cry. Perhaps he should join Meat Industry Excellence. Gerry Eckhoff Alexandra

Letters to the Editor Letters must be no more than 450 words and submitted on the condition The New Zealand Farmers Weekly has the right to, and license third parties to, reproduce in electronic form and communicate these letters. Letters may also be edited for space and legal reasons. Names, addresses and phone numbers must be included. Letters with pen names will generally not be considered for publication.

Opinion

22 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

Skills training needs investment I DIDN’T appreciate seeing a statement attributed to then prime minister John Key under the headline New Zealand needs migrants as some Kiwis are lazy and on drugs. It was in the British Guardian newspaper and went on to say “The NZ Prime Minister John Key has said the country is forced to rely on overseas workers to fill jobs because some Kiwis lack a strong work ethic and may have problems with drugs.” Unsurprisingly, I disagree and would respectfully suggest the Government spend more time in the provinces and not judge the country by Auckland standards. I must also confess to having a higher opinion of NZ workers than the Government does. The issue is that we encouraged 70,000 immigrants here while there were 200,000 Kiwis unemployed. More telling is the 74,000 Kiwis between the ages of 15 and 24 who are not in employment, training or education. Those people are our future. We ignore them and leave them on the scrap heap at our peril. I know and understand the arguments over New Zealanders not having the necessary skills but that suggests to me a severe lack of Government investment. Warwick Quin of the Building and Construction Industry Training Organisation said the Government didn’t train effectively for the best part of seven years. What that meant is that we had a depleted workforce and imported people for the Christchurch rebuild. We’re going to have a similar issue with Kaikoura. The Government can fix the

Alternative View

Alan Emerson

problem tomorrow if it has the will. All it takes is investment and if we can waste the thick end of $30 million on a flag referendum and $100m for plush offices for MPs and their hangers-on surely we can invest a similar amount in our youngsters’ future by getting serious about training.

Those people are our future. We ignore them and leave them on the scrap heap at our peril.

Investing in building industry and agriculture training are no brainers but the Government is messing with that as well. Introducing contestable funding for training when that system wrecked science is beyond me. The other issue I have is the wages paid to immigrant workers. We’ve seen enough evidence of major exploitation of foreign workers, which achieves the added bonus for employers of driving down the wages of local workers. That probably explains the employer lobby’s single-minded

focus on increasing immigration. Cynically, the flood of immigrants artificially boosts GDP which the Government desperately needs – so for GDP growth don’t read exports or bricks and mortar, read immigration. Achieving that by casting aspersions on Kiwis’ work ethic and fitness is reprehensible. We have local youngsters who aren’t in full-time employment but are good workers and drugfree. They’ll take whatever work is going while desperately applying for a job, any job. I’m also unimpressed with the Government claim about prospective workers on drugs. For a start, I’m unaware of any local issue with drugs. As far as Auckland is concerned I have no idea. Retired Police Association boss Greg O’Connor warned about the P problem but the Government has done little. In fact, it has effectively encouraged the habit by pegging police numbers and then insisting they attend every burglary. So, in my view, the basic problem of unemployed New Zealanders is Governmentinduced. For a start, there is a severe underinvestment in training and a total lack of matching skills with opportunities. That is exacerbated by the education scandal that has Kiwi 10-year-olds as the worst at maths and science in the Englishspeaking world. How are we going to develop a skilled workforce from that base? On the bright side, in provincial Wairarapa there is a real effort being made to get youngsters into work. It is called YETE which stands for Youth Education Training

WRONG: Former prime minister John Key’s statement that young Kiwis were lazy and on drugs was not appreciated.

and Employment with full-time co-ordinator Josie Whaanga who came out of Taratahi training farm. The initiative started 18 months ago, funding is in place and the training starts next month. Youngsters can get a Licence to Work. Whaanga said the initiative aimed to get young people workready and for it to be accessible to all. It wanted to ensure young people in Wairarapa had the chance to access work and be employable. The reaction from Wairarapa employers has been superb. It is totally funded locally by councils, community groups and organisations. Masterton Mayor Lyn Patterson said YETE was a pathway for every

student that took them from school to work. It was about making sure local youngsters had the skills employers needed. It was getting local schools, employers, community groups and whanau all working together so youngsters had a future. So, the Government should come to Wairarapa and see how we support our young people into work. See what we can achieve on our own. Sadly, they will remain in Auckland while slagging Kiwi youngsters.

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

The man who wants to pick up more clicks The Voice

Craig Wiggins

IN OUR lifetime we have and will see many changes but none are as hard to make sense of as the increased power of social media likes and clicks over physical assets and family security. It has become more important in today’s youth and urban dwellers to be seen on social media on holiday in a foreign land or to be seen to be part of some trendy cause than it is to secure an asset such as a house or land. The driver for this is the unobtainability of a house or land and the transient, voyeuristic lifestyle many live. Many a modern person would feel trapped in the quintessential kiwi dream of days gone by, a home and security.

That is galaxies apart from the rural person who wants nothing more than take on a role as caretaker of the land, live his or her dream and have security in physical assets. The problem with this is that the first lifestyle leaves a false sense of reality and the need to stand for something to empower their being. It also lacks community spirit as life is lived in the mobile device full of like-minded communities one can join with a click of a mouse and not having to live with people in the real world where many personalities and needs make up a community. That could also be said for rural people, however, because of the lack of internet until now, one must still be a part of the community around them and take notice, understand and help others of a slightly different make-up. This is the strength of rural NZ. The problem for NZ is that the tide has changed. Many can undermine the way NZ is seen by the world simply by posting a hot topic and having it shared internationally.

In recent weeks we’ve seen so many negative news stories on farming and many other rural activities all reported by media trying to increase the number of clicks they get to give them more market share. Many a vegan or anti-farming group has gained a position of power over the public perception of rural activities by securing numbers on their pages, in turn putting pressure on lawmakers and politicians to adhere to their point of view. However, we have something in rural NZ that the internet person doesn’t have and that is the ability to be realistic. We see what needs doing, we help our neighbours and we care for our community and environment contrary to the belief of many a group who have a crusade to rid the world of farms and all that is bad in their minds. The problem is we get on with it and don’t need the clicks or post likes to give us strength. That, unfortunately, is our downfall! If we don’t get more traction in the modern world of social media

and mainstream media we are doomed. The negative pressure on rural NZ from anti-groups and the effect it must be having on our markets internationally will be huge.

If we don’t get more traction in the modern world of social media and mainstream media we are doomed.

Let’s face it there are not many positive stories being told. The anti-brigade have ramped up the negativity against what we do and it seems to be working. The Greenpeace adverts are now deemed to be correct and appropriate by the Advertising Standards Authority and are now worldwide news. Many commentators say Brexit and Trump are the real people of the world revolting against the trend of social media and

unrealistic ideals running their countries. We, in rural NZ, can certainly improve things on the way we are perceived and importance in our country’s well-being. We just have to put our stories out there the good things we are doing, the plans that are in place to improve the environment, the thousands of dollars spent on research and development of farm sustainability and make sure the cream rises to the top, host the many industry awards, put pressure on media to get it right and support the industry, not preach to the converted. We must make sure those who are not up to scratch are improved or removed, be seen to be proud of what we do and stand together as an industry. If there is not some serious action to counteract the unrealistic views of those empowered by clicks and soon, I have a real concern for NZ as a profitable, sustainable farming nation. We must get our own stories out and make sure we get more clicks than those who undermine this world we live for.

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

PPCS stoush led to latest move Meaty Matters

Allan Barber

IT WAS a bit of a surprise to see Keith Cooper’s name on the letters page of Farmers Weekly considering his restraint over the last couple of years since his retirement to Middlemarch but, obviously, the appointment of Sam Robinson to the board of Silver Fern Farms as the Shanghai Maling representative provoked him to respond. His main point concerned PPCS’s original approach to buy the Freesia Investments shares, which Richmond’s board fought against so hard. Last week Steve Wyn-Harris took Cooper to task on the grounds of selective memory of what actually happened during the bitter but ultimately successful campaign by PPCS to buy Richmond. I must confess my recollection of events, without being in any way personally involved, is closer to Wyn-Harris’ perspective than Cooper’s and I still remember clearly Ron Clarke’s superb last column on the topic, just before he died, which was an eloquent attack on what he considered PPCS’s underhand approach. Wyn-Harris’ point about there

being no purpose in removing the scabs from healed sores is valid and he is also correct about the near-disastrous impact of the takeover on the combined company’s business and therefore financial performance during the following decade. That is what led irrevocably to the search for a new, major shareholder and the deal with Shanghai Maling. The latest annual, three-year moving average European Union and United States quota figures, analysed last week by Alan Williams, are compelling evidence of why this was necessary. The news for SFF, based on its declining sheep meat market share, is particularly dire, whereas the company has largely maintained its beef market share over the period. A look back at the 2006 figures provides an even sharper perspective on how processing volumes and market shares have moved over a 10-year period. Again sheep meat provides a much starker illustration of changing market supply patterns than beef. SFF has been by far the biggest sheep meat loser, falling from almost 33% share including Frasertown Meats in 2006 to 22% in 2016 with a further reduction of quota entitlement for 2017, equivalent to a loss of more than 26,000 tonnes or 35% of its 2006 figure. I assume the latest single year would paint an even worse picture than the three-year average.

Conversely its deep south competitor, Alliance, has largely maintained its position over the same period. The largest beneficiaries of SFF’s reduced share have been Anzco, whose entitlement more than doubled, Ovation, up by 43%, and Affco, up nearly 40%. Greenlea and Alliance have made the biggest beef gains during the 10 years, with increases of 53% and 42% respectively, while Anzco and UBP have also gained solid ground. SFF lost a small amount of share, though with the Wallace Meats volume added to the 2006 figures the volume loss amounts to 10,000 tonnes. Of the other big players, Affco has largely stood still between 2006 and 2016, though it had lost both volume and share in the intervening years before recovering the losses. This analysis demonstrates a degree of fluidity in farmers’ supply patterns but provides no conclusive evidence of any desire for a particular ownership structure, whether co-operative or privately owned. If there is an obvious conclusion it must be that the meat processing sector has shown itself to be totally unsuited to publicly listed ownership, as demonstrated by the positive impact on Affco of Talley’s’ ownership and investment since that familyowned company bought out the other shareholders and de-listed. The other conclusion is the enormous damage to customer

OLD WOUNDS: The appointment by Shanghai Maling of Sam Robinson, above, to the PPCS board provoked former Silver Fern Farms chief executive Keith Cooper into taking the scabs of healed sores.

or supplier relations that can be caused by a hostile takeover with the added fallout of straitened financial resources leading to lack of investment in aging assets and resultant loss of a competitive cost structure. There can be no doubt Richmond suppliers defected from PPCS then SFF in the North Island after the change of ownership while gains by Talley’sowned South Pacific Meats and CMP in the South Island have hit SFF’s volumes there as well. At the same time, Alliance has been able to protect its market share, though there have as yet been no signs of actual gain. SFF’s latest published annual result for the 2016 year confirms the evidence of its lower revenue and declining share of quota. In contrast to 2015 when the company made a pre-tax operating profit of $61.6 million on turnover of $2.45 billion, the latest year produced a $7.3m loss on turnover, 11.6% or nearly $300m lower. In comparison Alliance’s result, while not brilliant, was profitable and an improvement on the previous year.

Regardless of whether Cooper’s fears Shanghai Maling might remove SFF’s head office from Dunedin are justified, the more pressing need is for SFF to bed down its new shareholding structure, take advantage of its dramatically improved balance sheet and, above all, convince its suppliers to stay with it. Evidence at present suggests this last challenge will prove the hardest of all to achieve. On a completely different topic, over Auckland Anniversary Weekend the Warkworth A&P Show celebrates its 150th anniversary, which is a momentous achievement of which I, as chairman, am enormously proud. Everybody associated with the show is keeping fingers crossed for a fine weekend and relatively freeflowing traffic on SH1 to ensure everybody can get there to enjoy the occasion.

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

Storm fails to put rain where it’s needed From the Ridge

Steve Wyn-Harris

dams last autumn which didn’t fill properly, crops tend to be poor and even looking from my place to the Ruahine foothills, they are brown there as well, which is unusual. So, there is a lot of frantic destocking now. In praise of test cricket. Now, I know many of you are not likely to be fans of cricket let alone test cricket but bear with me for a few moments. A lot of folk just can’t get that you can have a sports game that can run for five days but can often still end in a draw. We live in an age of instant gratification with short spans of concentration required. Even cricket has progressed from 50 overs to 20 overs. But I like it that test cricket

still exists in the world. It’s a long deliberate game of skill, stamina, patience, bravery and strategy. A fast-paced frantic world with fiveday test cricket is a better place for all of us. The first test last week against Bangladesh was an excellent example of these virtues. I don’t have the ability to sit around all day watching cricket, sadly, but catch up with a bit at lunch and after work. I was fortunate to see Shakib al Hasan get his maiden double century and go on to to achieve his country’s highest test score. How could the Black Caps avoid a defeat trying to chase 595 over the next three days? By some superb batting by Latham and then with our own 539 any fool could see it would be an inevitable draw. More fool me because the Kiwi bowling attack stepped up to get the poor Bangladeshis out for 160 giving our batsmen time in the final session, which I did watch, to chase the deficit. Kane Williamson, now one

of the best batsmen in cricket in all forms of the game, carried his bat for 104 for a most unlikely and exciting victory. The New Zealand team now has the record of winning a test after conceding the most runs in the first innings with the old mark

being the Aussies in 1894. See, test cricket can still be cool, exciting and relevant.

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

SOMETHING’S HAPPENING HERE…. New Year, New Strategy, New Opportunities • Southland – the heart of NZ’s dairying future • Organics – a future-proof strategy for decades to come • Corporate farming – the way forward for those looking for progressive dairy farming careers Southern Lights Organics is a new business venture transitioning a hub of dairy farms across Southland to organics. They are now looking for professional Farm Managers to lead their onfarm businesses on this exciting journey. Are you: • An experienced dairy farm manager? • Someone who knows the importance of following a system and delivering to precise standards? • An ‘early adopter’ who can engage their team and bring them along on the journey? • Someone who’s looking to challenge themselves and expand their dairying career horizons? If you enjoy being part of a wider team, have an eye for detail and are looking for a new challenge to expand your knowledge then this may just what you are looking for. Take a look at www.no8hr.co.nz (Ref#8HR808) for more information and to apply for these exciting opportunities. Applications close 29 January 2017

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

LK0085779©

NORTHLAND has been getting some media attention as to how dry it is up there but Central Hawke’s Bay and up to Hastings and Napier are also in a very dry patch as the NIWA soil moisture maps depict. My area has had just 70mm of rain since the beginning of October. Others have had less. However, we were wet going into October so it only began to bite by mid-November. From that point, many of us wean, get rid of lambs and old ewes and were hooking into the killable cattle. The other saving grace was that most of us had been unable to restock properly from last year’s autumn drought and frankly few have ever returned to the stocking rates we had before the three cumulative droughts that began in 2007-08. The only respite we got from last week’s storm that flooded parts of the South Island, brought hail and snow and gale winds to others was that the gales we had were cool rather than the hot ones we have been experiencing. Coastal areas are running into water issues, having cleaned out

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A WORLD OF POSSIBILITIES

GAME ON

Venison prices are at their highest level in years. Is now the time to invest in a deer farm?

CLUB TOGETHER

How sports clubs are making rural New Zealand a better place in which to live and raise a family.

127 FEATURING

FARM, HORTICULTURE AND LIFESTYLE PROPERTIES FOR SALE ISSUE 2 – 2016

PARIHOHONU STATION; EMERALD OF OTOKO

5022 Matawai Road, Otoko, Gisborne

Held in the same family since 1892, Parihohonu has long been regarded as the emerald of Otoko - one of the Gisborne regionâ&#x20AC;&#x2122;s premium farming districts. 749 hectares in size, Parihohonu is nestled in a very sheltered, mostly northerly aspect basin with its own micro-climate.

Auction 1pm,

Fenced into 47 paddocks, the farm has excellent natural water from creeks and springs, some of which are reticulated to troughs in many paddocks. The station has a very appealing balance of contour with significant portions of tractor country, which have been cultivated and resown in superior pasture species or are planted in feed crops. Parihohonu has three homes; the main homestead has four bedrooms and is set in manicured grounds and gardens featuring magnificent specimen trees. There is a second three bedroom managerâ&#x20AC;&#x2122;s home and another older three bedroom home. Other improvements include a two bin 280 tonne capacity airstrip, and a half share in a substantial 6 stand woolshed and 3,000 SU covered yard complex, one house, and two cottages.

Fri 3 Mar 2017, (unless sold prior) 10 Reads Quay, Gisborne View by appointment www.bayleys.co.nz/2750312

James Macpherson

Simon Bousfield

M 021 488 018 M 027 665 8778 B 06 868 5188 B 06 868 5188 james.macpherson@bayleys.co.nz simon.bousfield@bayleys.co.nz MACPHERSON MORICE LTD, BAYLEYS LICENSED UNDER THE REA ACT 2008.

MACPHERSON MORICE LTD, BAYLEYS LICENSED UNDER THE REA ACT 2008.

Regional Hill Country Farm of the Year Award winner in 2012, Parihohonu has delivered lambing percentages and livestock performances considerably and consistently above the district average. Just 50 kilometres from Gisborne via State Highway 2, this property is essential viewing

www.bayleys.co.nz

"ZOHS FARM" LARGE HILL COUNTRY BREEDING UNIT (828 HECTARES)

Northern Rangitikei Centrally located on Zohs Road only 9 kilometres off State Highway 1 at Mangaweka. Zohs Farm offers quality hill country soils suitable for intensive pastoral farming with a balance of contours ranging from approximately 30 hectares of easy rolling with the balance medium hills and steeper faces. The property is very well fenced to 33 main paddocks with reliable water from spring fed dams and creeks. It consistently winters 4000 ewes and 1400 hoggets, plus 155 cows, 50 heifers and up to 125 steers. Improvements include a four bedroom villa, 3-bay implement shed, 4-stand woolshed with large covered yards and four sets of satellite yards, plus tidy cattle yards and new load out yards adjacent to the road. Zohs Farm presents an opportunity to secure a large quality hill country breeding unit in a strong and tightly held farming district.

Deadline Private Treaty Offers Close Thurs 9 Mar 2017 (unless sold prior) View by appointment www.bayleys.co.nz/3100051

Pete Stratton M 027 484 7078 B 06 388 0098 A/h 06 388 0568 peter.stratton@bayleys.co.nz COAST TO COAST LTD, BAYLEYS LICENSED UNDER THE REA ACT 2008.

ITâ&#x20AC;&#x2122;S ALL HERE

Eketahuna 184 South Road No 2 184 South Road No 2 is the ideal dairy farm. Currently milking 400 plus cows producing 160,000kgMS. This farm is in superb order with excellent amenities including two homes, dairy shed featuring 36 aside with an in-shed feeding system, herd home, a number of implement sheds, calf rearing sheds, high quality lane system and an up to date effluent system consented until 2040. Flat and rolling contour, only 20 minutes north east of Masterton in the summer safe south Tararua district 10 minutes from Eketahuna. If you are looking for a low cost working operation with top infrastructure in what is considered to be one of the safer farming environments in the country, then look no further.

Tenders Close 4pm, Tues 28 Feb 2017 (unless sold prior) View by appointment www.bayleys.co.nz/3150406 Lindsay Watts M 027 246 2542 lindsay.watts@bayleys.co.nz

Rob Deal M 027 241 4775 rob.deal@bayleys.co.nz COAST TO COAST LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

www.bayleys.co.nz

152 HECTARE WATERFRONT ESTATE

New Plymouth, Taranaki

35 Sutton Road, Omata

International Tender 1pm, Thurs 23 Feb 2017 (unless sold prior) 81 Powderham Street, New Plymouth View 12-1pm, Wed 25 Jan & 1 Feb 2017 www.bayleys.co.nz/522214

Mark Monckton M 021 724 833 B 06 759 5284 mark.monckton@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

NE W

LI ST IN G

First time to the market in 170 years the stunning Coastal property located on the Surf Highway, Waireka and Sutton Roads has been associated with the Jury family since 1847. With spectacular Coastal and Mountain Views including Taranaki, Ruapehu and Ngaruahoe the 152 hectare property is on New Plymouths doorstep and envied by many. Areas of Native Bush in QEII and rolling farmland overlooking a Coastal Marine Reserve all add to the appeal of the farm currently utilised for Dairy Farming. Spread over eight Titles with a 1920s Villa, two cottages and farm buildings there are numerous options to purchase as a complete unit or create a superior Lifestyle subdivision in a prime location. Situated on the West Coast of the North Island the City of New Plymouth has previously been named as the Worldâ&#x20AC;&#x2122;s most livable City and is renowned for its Parks, Gardens and Coastal walkway bordering the Tasman Sea.

GOOD SCALE - GREAT PROPERTY This all flat 210 hectare dairy unit is located an hour southeast of Rotorua in the heart of Galatea. Currently 400 cows are milked with a three year production average of 142,500 milk solids. A 7.6 hectare lease block is attached to the rear of the farm. The 40ASHB is centrally located and feeds 110 paddocks via a well-formed race system. Effluent is pumped from a sump through hydrants to a travelling irrigator covering 24 hectares. The 57 hectare block has a

436 Haumea Road, Galatea

104.6HA TARANAKI DAIRY FARM

132 Goodwin Road, Okato, Taranaki

Tenders Close 2pm,

Here is an opportunity to own a farm with good scale and amenities.

Tenders Close 1pm,

Thurs 23 Feb 2017 (unless sold prior) 1092 Fenton Street, Rotorua

Thurs 9 Feb 2017 shed, workshops, PKE shed and wide races which make it a pleasure (unless sold prior) 81 Powderham Street, New Plymouth to run.

View 12-1pm Wed 25 Jan & 1 Feb

www.bayleys.co.nz/812339

Scott Macdonald

main water source is from a deep bore at the dairy, pressure fed

M 027 753 3854 B 07 834 3847 scott.macdonald@bayleys.co.nz

through 40mm lines to troughs in all paddocks. Both water systems

Ben Hickson

K-line irrigation system with water sourced from a large spring. The

have Syntec in-line dispensers. There is a good range of support

M 021 433 283 B 07 349 5366

buildings including three dwellings plus a two bedroom sleepout. This ben.hickson@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, is a very well set up unit in a recognised dairying district. LICENSED UNDER THE REA ACT 2008.

This farm comes with a 30 aside herringbone cowshed, huge calf

View 1-2pm, Jan 25 and Feb 1

The great contour means the farm is predominately mowable. With a history of good fertiliser being applied and being in an area where you can feel summer safe, an even growth curve can be expected. One very nice three bedroom plus office home and another three bedroom home with plenty of garaging completes this very tidy

www.bayleys.co.nz/522246

John Blundell M 027 240 2827 B 06 759 5195 john.blundell@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

package. A 57.6ha neighbouring farm owned by a separate vendor is also for sale and would knit in nicely if an even larger unit was required.

Open Days Wed 25 Jan & 1 Feb 12-1pm

www.bayleys.co.nz

farmersweekly.co.nz/realestate 0800 85 25 80

FOR LEASE - SCALE AND LOCATION

Real Estate

Tenders Close

Approximately 300ha is being offered for long term lease in a prime

Thurs 16 Feb 2017

location at Halkett on the outskirts of Christchurch. The lessors have committed to undertaking an extensive irrigation development sourced from Central Plains Water Limited within the first two years

SHERWOOD FOREST

Halkett

Hayes Road

THE NEW ZEALAND FARMERS WEEKLY – January 23, 2017

1pm,

View by appointment www.bayleys.co.nz/553902

Dean Pugh

Holme Station

1201 Pareora River Road

Deadline Sale

"Sherwood Forest" with its abundant wild life and park like settings.

Wed 8 Feb 2017

A practical well designed rural homestead with modern open plan living, commanding views over manicured lawns to "Sherwood Forest". The large master bedroom occupies the western wing, a

1pm,

View by appointment www.bayleys.co.nz/553812

Noel May

completion. A house may be available for a lessees own use. With a

M 027 335 6303 B 03 375 4728 dean.pugh@bayleys.co.nz

second formal lounge, large mudroom/laundry, double garaging plus

M 021 457 643 B 03 687 1227 noel.may@bayleys.co.nz

range of soil types, woolshed, granary, three haysheds, fertiliser

Mark Clyne

many more features add to this home. Situated 19km from Timaru

Nick Young

history, and good subdivision, this is already a well developed farm.

M 027 531 2964 mark.clyne@bayleys.co.nz

CBD, this very tidy well presented 216ha farm offers a modern four

M 027 437 7820 nick.young@bayleys.co.nz

of the lease and which will cover approximately 214ha on

Options exist to lease the whole property or one of two distinct blocks, each with its own irrigation supply.

WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

further three generous sized bedrooms are on the eastern wing, a

stand woolshed, implement shed with lockup workshop and steel cattle yards (Te Pari). Stock water scheme has been completely

Act quickly - this district is renowned for its livestock and arable

upgraded. This property is within the proposed Hunter Downs

production

Irrigation Scheme. Around 200 walnut trees have been planted.

www.bayleys.co.nz

WHALAN AND PARTNERS LTD, BAYLEYS LICENSED UNDER THE REA ACT 2008.

All companies within this composite are Members of Bayleys Realty Group

10 Maunga Road, Pukeatua, Waikato

Tender

While the mountain helps provide good rainfall within this district our vendors have a reliable two-bore water system, well reticulated around the farm.

View Wednesday’s Jan 25th, Feb 1st, 8th, 15th – 11am - 1pm 10 Maunga Road, Pukeatua, Waikato

Recently milked on as an organic farm the soils and pasture reflect sustained, balanced and correct nutrient inputs over a lengthy period offering a good opportunity now to maximise your return on investment. The current owners have operated a very low cost, low input farming model with all young stock staying on the farm all year.

Website & ID number: rwteawamutu.co.nz/ID#TEA22498

On the market by way of Tender this property is well presented, lays well for the sun and has a good mix of contour. You need to check this one out! Call Neville Kemp for further information and plan to be at the Open Days!

Contact Neville Kemp Mob 027 271 9801 A/h 07 871 9801 Email: neville.kemp@raywhite.com www.nevillekemp.co.nz

Rosetown Realty Ltd Licensed (REAA 2008)

LK0085338©

79ha dairy farm with 20ASHB located east of Te Awamutu in the beautiful Pukeatua district with Mt Maungatautari as a stunning backdrop to the Daniel Davies built modern 4-bedroom farm homestead.

Tender closes on Wednesday February 22nd 2017. All Tenders need to be delivered to Ray White Te Awamutu office, 223 Alexandra St, Te Awamutu, no later than 4pm. Highest or any Tender not necessarily accepted. Price will be plus GST (if any). (May not be sold prior).

DAIRY – JUST THE RIGHT SIZE!

THE NEW ZEALAND FARMERS WEEKLY – January 23, 2017

Real Estate

farmersweekly.co.nz/realestate 0800 85 25 80

SOUTHERN WIDE REAL ESTATE

GLADBROOK STATION, MIDDLEMARCH

GENUINE SALE BY GENUINE VENDOR

593.0961 HA

TENDER

LK0085334

• 196Ha FH. Can be sold as one entire property or as four separate lots or a combination. Lot 1 - 46ha with all improvements, Lot 2 - 30ha bare land, Lot 3 - 74ha bare land and Lot 4 - 44ha bare land. • Magnificent historic homestead, set in a stunning setting, this gracious homestead features a spacious lounge, formal and casual dining areas, kitchen and servery, five bedrooms, two bathrooms, sunroom, plus many more features. • Three other accommodation units which have been utilised in the accommodation industry, all in excellent condition. • Numerous farm buildings include wool shed, stables, etc. Land is predominantly flat with area running up to base of the Rock and Pillar mountain range. • Has been utilised for bull beef in the past also suitable as a sheep and beef finishing block or dairy run off. • This is undoubtedly a feature property ideal as a total property or as separate lots. Tender Closing 12 Noon, Friday 10th February 2017. 21 Macandrew Road Web Ref SWDR1177 Dunedin 9012 RAY KEAN DOUG WARHURST p 03 466 3105 M: 0274 357 478 M: 0274 660 247

BY NEGOTIATION

1680 MAHINERANGI ROAD, BLACK ROCK A very well balanced 593ha productive and attractive breeding/finishing unit situated just 28km from Outram and 50km from Dunedin. Comprising the original adjacent properties known as Hillcroft and Pinelee, it has a predominately northerly aspect with well subdivided broad paddock ridges and interspersed gullies. Improvements include a refurbished 3-bedroom home set in mature well sheltered surrounds plus a tidy 2-bedroom home. 2 x 3 stand RB shearing sheds and covered yards, deer and cattle handling facilities plus various other outbuildings. Seldom available the opportunity to purchase a well developed, versatile breeding and finishing 6,000su sheep/beef/deer unit with good location.

21 Macandrew Road Dunedin 9012 p 03 466 3105

Web Ref SWDR1142

RAY KEAN M: 0274 357 478

LK0085657

PRESTIGIOUS RURAL PROPERTY - OTAGO

JOHN FAULKS M: 0274 525 800

WWW.SOUTHERNWIDE.CO.NZ

23 KLIFDEN ROAD, OTUREHUA TENDER

RURAL Office 0800 FOR LAND

Property Brokers Limited Licensed REAA 2008

Size and scope

Chance to purchase this well balanced fattening unit. Currently carrying breeding beef with calves at foot plus dairy heifers and trading cattle. The terraces and lower rolling hills are irrigated by gravity fed K-line with irrigation dams added for updated stock water scheme and further irrigation of the farm. There is a 4-bedroom farm house on the property, with new kitchen and enlarged living area. Also numerous sheds, large workshop and woolshed. This would be a great first farm or addition to an existing property. Phone Wes for more information. Tender closing 4pm Thursday 16th February 2017 at Southern Wide Real Estate, 84 Centennial Avenue, Alexandra Web Ref SWCR10852

WES FLANNERY M: 027 210 6536 E: wes.flannery@southernwide.co.nz

84 Centennial Avenue, Alexandra p 03 440 2163

LK0085742

BEEF BREEDING, DAIRY UNIT – 484.7200HA 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 assists 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.

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

www.propertybrokers.co.nz

5 1

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – January 23, 2017

TE N D ER

IRRIGATED DAIRY UNIT - VALUE FOR MONEY & SET UP FOR INVESTORS 228 Battersea Road, Greytown, South Wairarapa 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 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 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 225,000230,000kg 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.

214 hectares Tender www.nzr.nz/W014 Tender Closes 4pm Thur 23 Feb 2017 NZR, 1st Floor, 16 Perry St, Masterton Blair Stevens AREINZ 06 370 9199 | 027 527 7007 blair@nzr.nz NZR Real Estate Limited | Licensed REAA 2008

For Sale NEW LISTING

North Otago | Oamaru 2,457 Hectares Pisgah Downs. A mid-altitude run situated in the Kakanui mountain range, 53km inland from the rural servicing town of Oamaru. The property consists of a four bedroom weatherboard homestead with farm support buildings comprising of a 4-stand woolshed and sheep yards (750 night pens) and two cattle yards. Shearing quarters (old) and musters/hunters hut. Subdivided into 10 blocks with a good standard of conventional fences. Situated between McKenzie Road and the south branch of the Maerewhenua River with majority clean, open easy tussock hill country. Potential to increase production with subdivision, cultivation and fertiliser. | Property ID TU10901

Licensed under REAA 2008

OPEN DAY

Deadline Sale Closing 4pm, Monday 27 February 2017

Inspection By appointment

Contact Merv Dalziel 027 439 5823 Barry Kingan 027 229 5046

Pio Pio | 638 Tiki Tiki Road 169 Hectares Breeding And Finishing - Multiple Opportunities Here • 169 hectares approximately (subject to final survey of one title) • Excellent location, 9km from Pio Pio, 24km from Te Kuiti • Mairoa Ash soil, gravity fed spring water • Very good large family home • Very good smaller woolshed, yards, loading facilities • Well subdivided, 27 main paddocks, good fences • Contour flat, easy and medium to steeper hill Please bring ATV to open day (helmets mandatory) | Property ID TK1023

Deadline Sale Closing 4pm, Friday 10 February 2017 (unless sold prior)

Open Day Wednesday 25 January 1.00 to 3.00pm

Contact Kevin Wrenn 021 136 6843 Les Old 027 248 2667

THE NEW ZEALAND FARMERS WEEKLY – January 23, 2017

Real Estate

farmersweekly.co.nz/realestate 0800 85 25 80

RURAL | LIFESTYLE | RESIDENTIAL

Licenced under REAA 2008

AUCTION

Golden Acres Orchard - 48b Old Highway A stunning boutique lodge style home and cottage on 7.28ha of land. This is the ultimate lifestyle? 0.96 canha of G3 GOLD Kiwifruit with full canopy, on excellent structures. Over 0.6 canha of high producing Green Kiwifruit on agbeam. You could add value here by tendering for G3 licence and grafting this block. Approximately 200 large healthy avocado trees carrying good crop. Purchase includes the valuable Autumn kiwifruit harvests. Aound 2ha additional land utilised by this property (paper roads). Extra grazing for cattle or horses and the Waipapa River for swimming, on the boundary.

Whakamarama AUCTION (Unless Sold Prior) 1.00pm, Tuesday, 28 February BNZ Business Centre, 607 Cameron Road, Tauranga OPEN DAY 1.00 - 2.00pm Sunday, 5, 12 & 19 February

Vendors are very motivated to sell! This is a premium property with great cash flow. Go online to see the property video and contact Andrew for more information. www.pggwre.co.nz ID: TAR25260

Andrew Fowler B 07 571 5797 M 027 275 2244

pggwre.co.nz

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

farmersweekly.co.nz/realestate

RURAL | LIFESTYLE | RESIDENTIAL

Licenced under REAA 2008

NEW LISTING

Mount Stalker

North Otago

• 7,900ha (19,521 acres) comprising 2,300ha freehold and 5,600ha pastoral lease • An excellent balance of arable downlands (approx 700ha) reliable oversown/topdressed hill and clean tussock country • The quality improvements include a five bedroom homestead, a second three bedroom home, six stand raised board woolshed and covered yards complex, self-contained shearers quarters, large workshop, implement and storage sheds, aircraft hangar, excellent sheep, cattle and deer handling facilities plus an all weather equestrian arena • Wintering 14,000 stock units the property offers a range of income streams from sheep, cattle, utilisation of the large deer fenced area plus the deer facilities, a substantial future contribution from the extensive maturing forestry woodlots plus the native bush provides an abundance of wild game for hunting and adds another feature to an impressive large scale farm property www.pggwre.co.nz ID: OAM25215

PRICE ON APPLICATION Plus GST (if any)

Laurie Farmer M 027 435 7535 Alan Turner M 027 454 4222 Barry Meikle M 027 436 5131 Paul Brown M 027 432 6864

TENDER

Versatile Unit With Options

Ongaonga

• Well-appointed versatile unit situated in a good farming locality • 40.5997 hectares (100.32 acres) approximately of flat land • Solid three-bedroom homestead is set in established grounds • Good facilities includes three bay implement shed, three bay shed (incorporating shearing board and two horse stalls). Sheep and cattle yards plus small milking shed and two-cup plant • Property would suit calf rearing, cattle trading and winter finishing

TENDER

www.pggwre.co.nz ID: WPK25137

Plus GST (if any) (Unless Sold Prior) Closes 3.00pm, Thursday 16 Feb PGG Wrightson Real Estate 12 Takapau Road Waipukurau

Doug Harvey B 06 858 6069 M 027 262 6153

pggwre.co.nz

RURAL | LIFESTYLE | RESIDENTIAL

Licenced under REAA 2008

FINAL NOTICE

AUCTION

Often Sought Seldom Found

Matamata

Dairy Farm/Support Block

Putaruru

This 4.5 ha block of quality, flat land a few minutes out of Matamata, couldn´t be more perfect. Currently run as an equine and grazing block, this attractive property would lend itself to any number of options. Fenced into 12 paddocks with a ring race around the property, makes for easy management or an exercise track for the horses. Support buildings include a single garage, office, stock yards and handling facilities along with a near new three bay Goldpine building with two extremely well constructed horse boxes. Opportunities like this don´t come often!

AUCTION

• • • • •

AUCTION

www.pggwre.co.nz ID: PUT25235

(Unless Sold Prior) 11am, Thurs, 9 Feb, NI Kindergarten Conference Centre, Putaruru OPEN DAYS 1-2pm, Thurs, 19, 26 January and 10-11am, Sunday, 22 January, 214 STATION ROAD

69.1125 Ha, milking 180 cows Flat-to-rolling contour with some steeper sidlings Three bedroom home and skyline garage 12 ASHB cow shed, 3 x 3 bay half round barns Situated on the edge of Lake Arapuni options are plenty for this unique property, milk cows, run heifers, grow maize, catch trout and go water skiing. What more could one want?

(Unless Sold Prior) 11:00am, Thursday, 9 February, NI Kindergarten Conference Centre, 6 Glenshea Street, Putaruru OPEN DAY 10:00-11:00am, Thursday, 26 Jan, 2 Feb, 1190 LAKE ARAPUNI RD

www.pggwre.co.nz ID: PUT25167

Richard Leach B 07 882 1485 M 027 472 7785

TENDER

70 Hectares - Two Titles

Pukekawa

35 Hectares Pukekawa Central

Pukekawa

• Presently dairy - suitable market garden, stud farm and lifestyle uses • Well subdivided as dairy farm with central races • 16 aside HB shed and several support buildings and haybarns • Comfortable three bedroom brick home overlooking farm • You can farm from the breakfast table • Vendors reluctantly moving off farm to Pukekohe

TENDER

• Presently dairy support and market gardening • Mixture of cropping contour and some sidlings • Spacious three bedroom home less than 1km from Pukekawa Golf Club • 2km from Pukekawa Primary School • Haybarn and old disused cowshed • Presently large areas cut baleage and 16 acres leased to neighbour for carrots • Gas pipeline goes through property • Water from pump for grazing

TENDER

www.pggwre.co.nz ID: PUK25265 www.barfoot.co.nz ID: 587458

Richard Wright B 09 237 2040 M 027 454 6000

www.pggwre.co.nz ID: PUK25261 www.barfoot.co.nz ID: 587657

Richard Wright B 09 237 2040 M 027 454 6000

(unless sold prior) Closes 4.00pm Thursday, 2 March OPEN DAYS Wednesdays 1.00pm - 2.00pm 1,8, 15 February 311 Hunt Road, Pukekawa

Ian Croft B 09 237 8310 M 021 753 096

(unless sold prior) Closes 4.00pm Thursday, 2 March OPEN DAYS Wednesdays 2.30pm - 3.30pm 1, 8, 15 February 70 Logan Road, Pukekawa

Ian Croft B 09 237 8310 M 021 753 096

pggwre.co.nz

Employment

CONTRACT MILKER

THE NEW ZEALAND FARMERS WEEKLY – January 23, 2017

SHEEP GENETICS MANAGER

Owl Farm Demonstration Manager

300 Cows, Hamilton

Cambridge

We require an exceptional stockman to join our team to drive our industry leading sheep genetic programme and continue the impressive genetic and production progress we have made over recent years. Whilst experience with genetics would be an advantage, it is not a pre requisite for this position as we have a strong support team in place but the right attitude and an interest and aptitude to learn is.

Owl Farm is a demonstration dairy farm developed between St Peters School Cambridge and Lincoln University which commenced operations in 2014. This 150ha, 400 cow dairy farm utilises good farm practice and scientific monitoring to represent an exemplar in dairy production, financial management, environmental and people performance, while maintaining the highest standards of health and safety.

Our client has an excellent 97ha farm just 12km from Chartwell shopping centre. The farm is flat and is very well set up with a 36 a side Herringbone Dairy and produces around 100,000kgMS per year from a system 2/3 farming philosophy. The farm was converted 10 years ago, so all the infrastructure is just 10 years old and in good repair.

This unique role is part co-ordinator, part implementer, part liaison and most part leader. To be successful in this role you will understand the dairy industry intimately and are likely to already be in a role either on a farm or servicing farmers.

We are seeking a quality operator who will farm this place as if it were their own and have a proven history of performing to a high standard in all the key areas (including people, profitable production, farm maintenance and communication with their owners).

An attractive remuneration package is offered with an excellent four-bedroom home and numerous other benefits. Interested applicants should send their CV with the contact details of at least three referees to office@mountlinton.co.nz.

This important role requires a person who is passionate about the industry and is not afraid of speaking in a public forum. The ideal applicant will have a tertiary qualification in one of the following; agriculture, business, environment or similar and have at least five years’ work experience since graduating.

Applications close on the 6th February 2017. For further information, please contact Ceri Lewis on 021 678 809, or for a full job description please email Joss at office@mountlinton.co.nz

If this is you and you want to be a key part of this exciting journey on Owl Farm with its key partners; St Peters School, Lincoln University, Opus, LIC, PGG Wrightson Seeds, DairyNZ, Ballance, Fonterra Farm Source and Westpac, then apply now.

The successful applicants will enjoy all the benefits of a ‘new’ farm on the outskirts of Hamilton, including the use of a good three bedroom house.

To apply either email your CV to jobs@fegan.co.nz, or call us on 07 823 0117 Applications close: 3pm Friday 3 February

STATION HANDS

www.fegan.co.nz

Human Resources • Recruitment

0085309

PROGRAMME 2017

Applications are Open for our 2017 Scholarship Programme

PGG Wrightson is New Zealand’s largest nationwide provider of products and services to the rural sector. PGG Wrightson Real Estate is one of New Zealand’s largest single full-service real estate companies. We are helping grow the country through our knowledge, service and expertise.

· One-on-one mentoring · $1,000 investment towards personal profile marketing

For the 2017 Scholarship Programme, we are looking for lifestyle specialists who will transition into rural specialists over a period of time. These opportunities are available at any one of our offices in New Zealand, so whether you’re looking for that next challenge or simply want to kick-start a new career in this exciting industry then apply today!

We are looking for highly-motivated individuals that are looking to step-up their

career so if you’re this person, our Lifestyle Scholarship Programme could be for you!

Applications close 4pm, 13 February 2017. To find out more and apply, visit pggwre.co.nz/careers and follow the links.

An iconic South Wairarapa coastal property of 6618ha requires a competent Livestock Manager and a Shepherd General both with excellent stockmanship. These are separate roles. The property farms sheep and beef, deer, and bees. We are looking for self-starters who are hard working, diligent, and up for a challenge. Being a team player who works well and communicates well with others is essential. Additional requirements: • Have a good standard of horse riding competence; • Possess your own saddle; • Possess a strong team of at least two huntaways and one heading dog. For all inquiries, phone 06 307 8850. Evenings preferred. To apply for the position, email your CV along with a short cover letter with and contact details of three professional referees to dan.riddiford@paradise.net.nz

Classifieds 0800 85 25 80

Under the Human Rights Act, 1993, it is unlawful, apart from some exceptions, for employment advertisements to restrict applicants because of their sex, marital status, religious belief, colour, race, national origins, age, family status, or sexual orientation. Advertisements that discriminate in any way will not be published.

Interviews over phone if applicant wishes to further apply after reading booklet.

Farm Manager SHEEP AND BEEF

TWINBRIDGES is an easy rolling hill country, breeding/finishing unit. Located 45 minutes north of Feilding, 5 minutes from Apiti Village and 50 minutes from Taihape. The farm is 800ha running 8000su. Comprising of 3600 ewes,1000 hoggets, 300 breeding cows and 150 R1 cattle.

We are looking for a suitable candidate who will: • Have experience with both breeding and finishing stock • Work day-to-day with one other labour unit • Be comfortable being in a team of seven highly motivated, enthusiastic people • Have good communication skills • Be honest, reliable and resilient • Have pride and respect of the workplace and house provided • Be able to start in April 2017 There is a comfortable, warm 4-bedroom house provided and Apiti Primary School is less than 10 minutes away.

Send CV to Sam Brown: sam.mhbrown@gmail.com or phone 0274 454 054 for more info.

MAKURI LIME

Ohingaiti

Specialising in Livestock and bulk cartage, (fertiliser, lime, metal etc)

AGRICULTURAL LIME: High calcium content Fine particle size Easy spreading Trace element mixing available RACE LIME: Long lasting compaction Soft on cows feet Other Uses include: Driveways Forestry roads Horse arenas Shed ﬂoors Wet areas/Gateways

Servicing Manawatu, Rangitikei regions as well as nationwide. Providing a prompt & friendly service with an immaculate fleet of trucks and experienced operators.

Ph: Clint Davis 0274 746 800/06 322 9707 Email: cdtrucking@xtra.co.nz

Extremely competitive pricing throughout lower North Island. Bulk order discounts apply. Delivery Available/Pick up welcome. Enquiries

LK0084844©

LK0085777©

If you sound like a suitable applicant we will email you back with info booklet on station and job so you can see if station will suit you.

Classifieds

CD TRUCKING LTD

SEE PAGE 23 FARM MANAGER POSITIONS

If interested in applying please email: kate@noreenadownsstation.com

This is a new position due to the purchase of POTAKA STATION and the two properties work in together.

EMPLOYMENT ADVERTISEMENTS

Licensed REAA 2008

The work also includes station and homestead maintenance and a lot of cattle yard work.

LK0085776©

Scholarship 2017

· All course and licensing expenses paid during the six month scholarship term

• All applicants must be of clean, tidy and sober work habits • Be able to ride a two wheel motorbike safely • Must be able to work cattle in a quite, calm and safe manner • Able to fence, weld, fix things and have mechanical skills • Have a valid drivers licence upon application and work period.

LIVESTOCK MANAGER & SHEPHERD GENERAL Te Awaiti Station

185x130.71

· Competitive remuneration for the scholarship period

Cattle station in the Pilbara of Western Australia are looking for station hands for the 2017 mustering season who like working cattle quietly.

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To apply either email your CV to jobs@ fegan.co.nz, or call us on 07 823 0117

PGG Wrightson Real Estate Scholarship Programme offers:

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jobs.farmersweekly.co.nz 0800 85 25 80

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Phone Matt 06 376 3900

welcome

Livestock

THE NZ FARMERS WEEKLY Classifieds HIGH INDEXING JERSEY & JERSEY

CROSS HERD FOR SALE FOR SALE BW 143/50Autumn PW calving 161/67 100% cows. 70RA Ayrshire and Friesian cows, capital for line, due to calve (in top 10Cross AllMABreeds NZ ) from

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

DOGS FOR SALE BRIAN BURKE, NZ Champ 1984 and 5 times NZ Champ finalist, available to train your working dog. In three weeks he will transform your heading dog into a productive asset for the farm. Contact Brian 06 343 9561 for further details and pricing (heading dogs only). TEAM OF 4 TOP working bitches, ex-SI. Now in New Plymouth. Two Heading and two paddock and yard dogs. Phone 027 315 2810 or evenings 06 755 0289. HEADING PUPS. Bloodlines by ‘Hyde’ L Smith’s ‘Skelt’ and G. Anderson’s ‘Jeff’. ‘Bron’ full sister to D.Wallace’s ‘Toi’. Phone Ken White 03 571 6079. See: dogblacks.co.nz and through FB. FORTY HUNTAWAYS, Heading, Handies from $400. Deliverable. 07 315 5553. Mike Hughes.

DOGS WANTED 12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195. CA$H BUYER, QUICK sale! No one pays more! 07 315 5553. Mike Hughes. HEADING, HUNTAWAY, handy, backing dogs or bitches, 2-6 years. Top money paid. Phone Ginger Timms 03 202 5590 or 027 289 7615.

FARM MAPPING YOUR FARM MAPPED showing paddock sizes. Priced from $600 for 100ha. Phone 0800 433 855. farmmapping.co.nz

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

23/7/17 to AB CRV Friesian, tailed crossbred bulls

out 30/12/16, 400kgs ms herd on foothills Outstanding genetics & potential toaverage be one of of Kaimai Ranges. Nice quality good uddered the countries leading suppliers of Genetics to size cows. Balance of herd 50 cows are the dairy industrymedium for years to come. Full details Jersey. Asking $2000 + GST. In-calf heifers also available. available. available for all above herds. Enquiries to the Records sole marketing agents:

FERTILISER

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

All enquiries to:

Brian Robinson Brian Robinson BRLL 241 0051 PH: 0272 410051Phone: or 07027 8583132

GOATS Gary WANTED Falkner

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.

330 Frsn/ Frsn x Cows, BW91, PW109, RA99% Calving 20th July, Ave 420M/S, 1730 hec. $2,180.00 Richard Todd 0274 942 544 238 Frsn Cows, BW65, PW65, RA93% Calving 20th July, 35yrs One Owner. $2,150.00 Brad Osborne 0272 431 816 200 Frsn/ Frsn x Cows, BW71, PW78, RA89% Calving 20th July, Computer Split out 520 Cows. Young Herd. $1,900.00 Todd Van Berlo 0275 297 748 125 XBred Cows, BW78, PW96, RA87% Calving 18th July. Young Herd, 2yr to 4yrs. $2,050.00 Chris Leuthart 0274 936 594 240 Frsn Incalf Heifers, BW69, PW82 Calving 19th July to Jersey Bull. Well Grown. Delivery 1st May. $1,500.00 Dean Evans 0272 431 092 90 Frsn Incalf Heifers, BW96, PW93 Calving 18th July, Jersey Bull. Well Grown. Delivery 20th March. $1,650.00 Dean Evans 0272 431 092

LIVESTOCK ADVERTISING 0800 85 25 80 • farmersweekly.co.nz

GRAZING AVAILABLE for 140+ cattle. Bulls optional. Located south of Kaitaia. Phone 021 083 04279. GRAZING AVAILABLE. Could handle up to 50 head of cattle. Good rates. Raglan area. Phone 07 825 4423.

LEASE LAND WANTED EXPERIENCED FARMER running sheep and beef, looking for land to lease in Manawatu / Rangitikei area. Phone 027 4520 723.

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

VINTAGE AUCTION NZ’s PREMIER VINTAGE machinery auction. Stratford, Saturday 4th March. A lifetime of dedicated collecting, sold under the hammer. Complete dispersal sale. For catalogues go to www. agonline.co.nz/sales/ upcoming

A man is driving with his wife at his side and his mother-in-law in the backseat. They’re travelling down the highway and the whole time the women just won’t leave the poor guy alone, they are constantly badgering him. His mother-in-law says, “You’re driving too fast!” His wife says, “Stay to the left!” After several more orders from both of them the man finally pulls over to the side of the road, breaks down and barks at his wife, “Who’s driving this car - you or your mother?”

TEXELS AS A TERMINAL SIRE • 2kg to 3kg lighter liveweight to get the same carcass weight • Have a higher yield carcass • Kill before onset of facial eczema • Thrive better when times are tough • Crosses extremely well with any breed of ewe

www.nzsheep.co.nz/texel

SILVER SHEEP EAST FRIESIAN Est 1999 • Flock #62

Simply the best genetics

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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

Forinformation all enquiries: 0274 333 381 For on factsRoss behindDyer the years of breeding

For information on facts behind the years of breeding refer to our website www.dyerlivestock.co.nz refer to our website www.dyerlivestock.co.nz

WAIKATO PREMIER RAM FAIR THURSDAY 26th JANUARY FRANKTON SALEYARDS 11.am – Meat Breeds 12 Noon – Wool Breeds

For further information please contact: NZFLL Stud Stock PGGW Genetics Brent Bougen Cam Heggie 027 210 4698 025 018 182 07 848 2544 07 855 0448

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

• Most lambs killed before autumn

POWER CABLE

Prices include delivery to your door!

2,300 x 2Average tooth Scanning 2,200 x 4 2007 tooth 177% since

1,750x x26tooth tooth 1,400 x 4 year 2,300 2,200 x 4 tooth 1,800x x65tooth year 8001,400 x Wet dry 1,750 x 4 year 1,800 x 5 year 800 x Wet dry For all enquiries: Ross Dyer 0274 333 381

GLEN ORKNEY MERINOS

• Kill more lambs off the mothers

We could save you hundreds of $$

HOMES FARM SHEDS SUBDIVISIONS PUMPS

Average Scanning since 2007 Best line177% of ewes offered in many years

WOOL BREEDS 39 x Romney Rams 6 x Border Leicester Rams 12 x Perendale Rams 4 x Cheviot Rams 8 x Romdale Rams

Are you looking in the right direction?

SALE TALK

GRAZING AVAILABLE

(Lunch Provided)

Best line of ewes offered in many years

MEAT BREEDS 76 x Poll Dorset Rams 67 x Suffolk Rams 3 x Southdown Rams 12 x Polltex Rams 6 x South Suffolk Rams 12 x Sufftex Rams

Jersey Marketing Service PH: 027 482 8771 or 07 846 4491

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.

(Lunch Provided)

2nd February 2017 @ 12 noon

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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

Due to calve from 16-7-12, 6.5 weeks JUNEcross 2017 DELIVERY HERDS AB Jersey and Kiwi Friesian Cross cows, 70, in-calf • Estimated toFriesian be and420 cows after non heifers 18, average BW across line 82, PW 106, pregnant, culls,dueolder cows & to calve from 4/7/17 5% to AB rejection Friesian, tailed • Production last 347kgs ms/cow, Angus season and Ayrshire bulls out 20/12/16, 420kgs ms herd average from 380 cows. of herd 1000kgs ms/ha, on rolling to Balance steeper Ayrshire and Jersey already sold. contoured farm, no meal, palm kernel or maize FORESTRY Asking $2000 + GST for cows. fed. WANTED CRV bred, Friesian and Friesian Cross herd, 120 NATIVE FOREST • Young replacement stock also available cows, BW 40, PW 68 RA 99%, due to calve from FOR MILLING also

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

Matea Road – TAUPO 2 Matea FebruaryRoad 2017 –@TAUPO 12 noon

RANGITAIKI STATION nd

WAIKATO HERDS FOR SALE

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ATTENTION FARMERS

•

RANGITAIKI STATION

1/3/17 until 10/5/17, in-calf to AB Ayrshire, Friesian and Hereford, tailed with Hereford and contracted to LIC forAsking 2011$2000 matings Angus, immediate delivery. + GST.

• 40 selected rams to sell • Only East Friesian stud in NZ to eye-muscle scan for meat production • Rams are brucellosis accredited • Limited number available • Rams semen available for AI (NZ and overseas)

• Traits for growth rates, survivability, milking and mothering ability from years of experience • All pedigrees can be traced back to original imported rams • Ewes have been selected over the past 15 years • Bred from the coldest place in NZ and now in the driest place in NZ!

Contact: M.R. Skelton Central Otago 03 448 8545

www.carrfieldslivestock.co.nz 115 Frsn/FrsnX Herd BW79 PW117 RA92% DTC 20/7 to AB Frsn/KiwiX DTC in 22 days, Spring content of herd, TQ big framed, capacity cows. $2350. Val Ditchfield 027 573 7480 70 Frsn/FrsnX Autumn C/O Cows, BW83 PW105 RA 97% DTC 25/3 VIC to Hfrd, 6 week calving, bull out 30/7, EBL free, Top condition. $1800. Max Hutchings 027 538 4961 I/C Heifers 300 Frn/FrsnX I/C Heifers BW104 PW121 DTC 20/7 to Jrsy 380kg LW, bull out 1/1, Up to BW175, 200 Hfrs BW90+ I/C to Rec Jrsy. $1650. Val Ditchfield 027 573 7480

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

Gumboots Work Boots www.thesocklady.co.nz • Many cows

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ANIMAL HEALTH

Merino Mid Sock

56 Frn/FrsnX I/C Heifers BW80 DTC 20/7 sync to AB CRV Xbred Tailed Jrsy bulls, out 24/12, 380kg LW, Actual Hfrs sired by LIC. $1750. Andrew Gordon 027 487 2044

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

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

Livestock 0800 85 25 80

MARKET SNAPSHOT

IN PARTNERSHIP WITH

Grain & Feed

MILK PRICE FORECAST ($/KGMS) 2016-17

AGRIHQ 2016-17

6.00

6.40

AS OF 18/11/2016

AS OF 19/01/2017

MILK PRICE COMPARISON

$/kgMS

SHEEP MEAT

DOMESTIC

FONTERRA 2016-17

8 7 6 5 4 3 Jun 16

Sheep

Last week

Prior week

Last year

Canterbury (NZ$/t)

WMP GDT PRICES AND NZX FUTURES

5.05

5.00

327

350

NI mutton (20kg)

3.00

2.40

286

284

305

SI lamb (17kg)

5.10

4.85

Feed Barley

281

290

SI mutton (20kg)

3.00

2.20

232

Export markets (NZ$/kg) 7.47

7.43

7.34

239

236

UK CKT lamb leg

Maize Grain

370

367

352

PKE

240

238

229

* 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.

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

6.5

Last week

Prior week

5.0

Last year

CBOT futures (NZ$/t)

4.5

Wheat - Nearest

218

220

269

Corn - Nearest

201

198

223

306

307

375 364

2500

Feed Wheat

247

267

332

2000

Feed Barley

236

233

333

1500 Mar 16 Jun 16 Sep 16 C2 Fonterra WMP

PKE (US$/t) 102

103

Ex-Malaysia

US$/t

5005.0 4004.5 3004.0 OctOct

DecDec

Prior week

vs 4 weeks ago

WMP

3350

3380

3550

SMP

2600

2700

AMF

5380

Butter

4280

Last week

Prior week

Last year

Last week

Prior week

Last year

2775

Urea

482

575

29 micron

6.65

8.95

5200

5470

Super

317

330

35 micron

3.75

3.98

5.95

4210

4400

DAP

875

39 micron

3.65

3.75

5.80

739

3500 3250 Apr

May

Jun

Jul

4 w eeks ago

Sharemarket Briefing IT WAS a mixed week for markets with investor sentiment waning in the lead-up to several key political events. The first was the speech from British Prime Minister Theresa May. As was expected May called for a hard Brexit, giving Britain a clean break from the single European market. Britain is determined to regain control of migration and that was a key reason the vote to leave was successful. The other major event was the inauguration of President Donald Trump. There has been plenty of caution attributed to this event. Investors have also been subdued on the global scene as they await the start of the corporate earnings season. Following the Trump Bump, investors are looking for a solid earnings season and will be hoping for a positive outlook to support the high share prices. Expectations were for a bigger than 0.6% Global Dairy Trade increase as dairy futures were well higher before the auction. Commentators remain upbeat on the outlook for the dairy sector for 2017 with many believing that there will be further upside to the current forecast payout from Fonterra. Market commentary provided by Craigs Investment Partners

9597

S&P/FW AG EQUITY

11268

S&P/NZX 50 INDEX

7062

S&P/NZX 10 INDEX

7132

$/kg

250 150 Jan 13

NZ venison 60kg stag

5.5

600

c/k kg (net)

350

NZ$/t

US$/t

3750

35 micron wool price

6.5

CANTERBURY FEED PRICES 450

S&P/FW PRIMARY SECTOR

This yr

(NZ$/kg)

4000

Latest price

Last yr

AugAug

NZ average (NZ$/t)

WMP FUTURES - VS FOUR WEEKS AGO

Mar

JunJun

WOOL

* price as at close of business on Thursday

Feb

AprApr

FERTILISER

Last price*

3000

FebFeb

5‐yr ave

NZX DAIRY FUTURES (US$/T) Nearby contract

$/kg

270

NZ venison 60kg stag

5.5

600

c/kkg (net)

274

Dec 16 Mar 17 NZX WMP Futures

South Island 1 7kg lamb

6.5 6.0

ASW Wheat

3000

6.0 5.5

INTERNATIONAL

APW Wheat

3500

North Island 17kg lamb

7.0

Australia (NZ$/t) 4000

Last year

5.05

Feed Wheat

Waikato (NZ$/t)

Dec 16 AgriHQ Seasonal

Last week Prior week

NI lamb (17kg)

Milling Wheat

PKE

Sep 16 AgriHQ Spot Fonterra forecast

Slaughter price (NZ$/kg)

$/kg

Dairy

Jan 14 Feed barley

Jan 15

Jan 16 PKE spot

Jan 17

300

3.5

Oct Oct

Dec Dec

Feb Feb

AprApr Last yr

JunJun AugAug This yr

Dollar Watch

YTD High

YTD Low

Auckland International Airport Limited

6.76

6.79

6.31

Fletcher Building Limited

10.38

10.86

10.23

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

2.72 3.53 8.84 3.10 8.47 4.94 3.23 7.39

2.73 3.70 8.91 3.10 8.47 4.95 3.30 7.70

2.57 3.41 8.60 2.94 8.17 4.65 3.15 7.25

Listed Agri Shares

4.5

400

5‐yr ave

Top 10 by Market Cap Company

500

5pm, close of market, Thursday

Company

YTD High

YTD Low

The a2 Milk Company Limited

2.270

2.360

2.060

Cavalier Corporation Limited

0.740

0.760

0.720

Comvita Limited

7.840

8.020

7.630

Delegat Group Limited

5.800

5.650

Foley Family Wines Limited

1.490

Fonterra Shareholders' Fund (NS)

6.250

6.300

5.990

Livestock Improvement Corporation Ltd (NS)

2.550

2.600

2.550

New Zealand King Salmon Investments Ltd

1.380

1.410

1.270

PGG Wrightson Limited

0.530

0.490

Sanford Limited (NS)

6.970

7.020

6.700

Scales Corporation Limited

3.490

3.530

3.320

Seeka Limited

4.560

4.600

4.500

Tegel Group Holdings Limited

1.360

1.460

1.340

S&P/FW Primary Sector

9597

9636

9307

S&P/FW Agriculture Equity

11268

11330

10899

S&P/NZX 50 Index

7062

7075

6971

S&P/NZX 10 Index

7132

7174

7047

MARKETS were ready for This Prior Last NZD vs volatility going into the week week year weekend’s inauguration USD 0.7162 0.7130 0.6492 of the new United States EUR 0.6740 0.6703 0.5967 president. Donald Trump had AUD 0.9500 0.9501 0.9294 promised to go straight GBP 0.5821 0.5858 0.4567 to work, scrapping the Correct as of 9am last Friday negotiated TPP trade agreement, in which New Zealand was involved, and also taking a knife to the NAFTA deal with Mexico and Canada. Those currencies had been impacted and while the TPP was not in force, scrapping it would be a negative for NZ, ASB Bank institutional currency dealer Tim Kelleher said. He still expects the kiwi dollar to remain firm because of the economy’s strength and to trade within the US$0.69 to 0.73 trading range of the last several months, noting it had squeezed off the low end of the range in the last couple of weeks. Further into the year, the kiwi could drift lower as the US dollar builds strength. The kiwi had touched £0.60 since the start of January but was back closer to 0.58 last week as the UK detailed its Brexit plans. Kelleher reckons sterling could weaken again through March as more Brexit risk works through. With elections in important Eurozone countries this year, he says the NZ/euro cross is a tricky one to pick, except that it should stay in the €0.65 to 0.70 range. With what is happening in the US, UK and Europe, the next few months will be fascinating for currency watchers, Kelleher said. Alan Williams

Markets

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

SI SLAUGHTER STAG

35 MICRON WOOL

SI SLAUGHTER LAMB

($/KG)

TRADITIONAL BULLS, 575KG PLUS, AT RANGIURU

($/KG)

3.75

8.10

5.10

2.74

high lights

$75-$80

$1140-$1250

Heavier store lambs at Canterbury Park

Traditional 1yr steers, 395-465kg, at Wellsford

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

Last week

Prior week

Last year

NI Steer (300kg)

5.30

5.15

NI Bull (300kg)

5.00

5.05

5.10

NI Cow (200kg)

3.85

3.90

SI Steer (300kg)

5.20

5.00

SI Bull (300kg)

4.75

4.70

4.55

SI Cow (200kg)

3.80

3.50

US imported 95CL bull

6.36

6.08

6.51

US domestic 90CL cow

6.41

6.21

6.96

Export markets (NZ$/kg)

North Island steer (300kg)

6.5

$/kg

6.0 5.5 5.0 4.5 4.0

BIG CALL: Auctioneers at work at last week’s Stratford Ewe Fair. South Island steer (300kg)

6.0 5.5

NZ venison 60kg stag

c/k kg (net)

$/kg

600 5.0 500 4.5 400

4.0

300

3.5

Oct Oct

Dec Dec

Feb Feb

5‐yr ave

Apr Apr

Jun Jun

Last yr

Aug Aug This yr

VENISON Slaughter price (NZ$/kg)

Last week Prior week

Last year

NI Stag (60kg)

8.10

7.20

NI Hind (50kg)

8.00

7.10

SI Stag (60kg)

8.10

7.20

SI Hind (50kg)

8.00

7.10

New Zealand venison (60kg Stag)

9.5 8.5 $/kg

NZ venison 60kg stag

600 7.5

c/k kg (net)

Photo: Ross Nolly

More photos: farmersweekly.co.nz

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

Solid results at weaner sales W EANER calves have continued to sell well, even this late in the season. This has particularly been the case in the South Island where prices have barely moved in more than two months. Given the relative expensiveness of older store cattle and the mediocre position lamb finds itself in, it’s not surprising to see buyers flock calves, especially with the lower capital outlay required for

these. It’s continued to be a tough task finding homes for store lambs in the North Island, however consistent rainfall in the South Island have kept results there positive. NORTHLAND NORTHLAND A yarding of 500 cattle sold better than expected at KAIKOHE given the dry conditions affecting most of the Northland region, Vaughan Vujcich from PGG Wrightson reported. Two-year beef bulls made $2.65-

$2.70/kg, with Friesians at $2.40$2.45/kg. Two-year Hereford-Friesian and Angus-cross heifers weren’t far off their brothers, making $2.60/kg. Traditional two-year bulls achieved $2.60-$2.68/kg, easing to $2.40/kg for Friesians. One-year cattle performed better than expected as prices actually rose on the last offering. Hereford-Friesian, Angus-Friesian and Charolais

Continued page 38

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Markets

38 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017 Hereford steers ranged across $2.80-$3.02/kg, while HerefordFriesian heifers went for $2.64$2.70/kg. Weaner Friesian bulls 110-150kg still sold well at $500-$570, though 110kg Friesian heifers were just $400-$420. The only signs of weakness was among the boner cows. Heavier Friesians managed $1.70-$1.75/kg, but this fell back to $1.40-$1.60/kg for lighter types. Dry conditions brought out a large yarding of cattle at WELLSFORD, but buying power wasn’t able to match this increase, bringing the market back on previous sales. Two-year cattle were mainly limited to steers which made $2.54-$2.61/kg, though a few Hereford-Friesian heifers were $1135-$1140. A decent number of heavy oneyear Angus-Friesian steers made $1060-$1165, while equivalent traditional lines achieved $1140$1250. More moderate weighted exotic-cross lines made $995$1105. Most one-year heifers were Hereford-Friesian, making $900-$1010. Hereford-Friesian weaner steers still sold well enough at $550-$605, though similar sized heifers only managed $460-$525. Friesian bulls at 143kg made $518-$552. AUCKLAND AUCKLAND Firm prices were on the menu at PUKEKOHE, even with dryer conditions causing some concern among locals. Quality was strong throughout the offering, especially among the two-year steers. These steers made $1240-$1650, or an equivalent of $2.60-$2.70/kg. One-year crossbred steers made $865-$1080, $2.70-$2.90/kg, with other oneyear heifers making $885-$1080, $2.51-$2.58/kg. Murray Grey’s were the pick of the weaner calves, making as much as $690 for steers and $680 for heifers. Overall, medium sized weaner steers made $505-$690, easing to $320-$360 for smaller types. Medium weaner crossbred heifers were $460-$535, with smaller types $330-$410. Good prime steers were $2.69/ kg, with medium prime heifers at $2.52-$2.64/kg, and boner cows $1.32-$1.70/kg. COUNTIES COUNTIES TUAKAU hosted a big yarding of over 1000 store cattle last Thursday, PGG Wrightson agent Chris Elliott reported. Buyer numbers were down and with conditions starting to dry out, the market for most classes eased by 10-30c/kg. The offering included some larger steers at around 560kg, which traded at $2.60-$2.63/kg, with others at 485-490kg making $2.70-$2.74/kg. Another lot at 370kg earned $2.83/kg and good Angus steers, 404-461kg, $2.85$2.87/kg. Some recently weaned Angus steers at 290kg fetched $3.44/kg, $1000, and autumn-born whiteface steers, 233kg, $3.56/kg, $830. Prices for lighter weaners eased, with those at 110-120kg making $580-$600 and 110-120kg steers $540-$560. Most beef and Friesian bulls at 350-450kg returned $2.40-$2.60/ kg. Friesian weaners, 160kg, made $500 and a 130kg lot $420.

LEAN IN: Buyers at last week’s Stratford Ewe Fair.

Photo: Ross Nolly

More photos: farmersweekly.co.nz

The yarding included a line of whiteface and Angus cows, 515kg, with calves at foot, which sold at $1390 per unit. Most of the heavier heifers, 400kg-plus, sold at around $2.50/ kg and some 240kg whiteface weaners made $3.30/kg, $790. Weaner heifers sold reasonably well. The heavier lots, 120kg-plus, earned $500-$600 and lighter heifers, 90-110kg, $370-$450. Almost 600 cattle were presented at last Wednesday’s prime sale and the market eased on the previous week. The steer section included a nice line of big exotic steers at 843kg, which traded at $2.60/kg. Other lots in the 650-1000kg weight bracket made $2.59-$2.73/kg. The next cut at 580-650kg earned $2.50-$2.71/ kg, with lighter lots fetching $2.35$2.71/kg. The bigger heifers sold comparatively well. A handful of heavier lots, 580-650kg, returned $2.56-$2.61/kg. The top heifer rate of $2.75/kg was paid for good Charolais heifers in the 480-580kg range. Others sold from $2.61/kg. Lighter dairytype heifers, 400-580kg, made $1.82-$2.38/kg. A small entry of beef cows sold for around $2.00/kg. The market for good Friesian cows was strong, with 580-650kg lots earning $1.88$2.00/kg. Medium cows averaged $1.74/kg and lighter boners $1.50/ kg. The yarding included another big line-up of ex-service bulls, with most making $2.20-$2.75/kg. A Hereford lot weighing around 500kg fetched $3.08/kg and Jerseytype bulls $2.00-$2.38/kg. About 1500 ewes and lambs were on offer at last Monday’s sheep sale. Heavy prime lambs traded at $85-$102, with the next cut making $70-$82. Most store lambs returned $48-$60. The ewe market was solid and the best of the ewes fetched $70-$90. Mediums ewes made $55-$70 and lighter sorts sold down to $38. BAY OF PLENTY BAY OF PLENTY Numbers came back a little at RANGIURU. Bull numbers saw the largest decline, though these were

counteracted by a decent sized offering of steers. Three-year eased slightly on the previous sale, as Hereford 622708kg made $1690-$1980. Lighter two-year Jersey bulls did prove very popular, mostly trading at just $870-$1010. Two-year steers were mainly beef-cross lines 512-546kg which consistently made $1300$1360. Two-year heifers saw some weakness, as Hereford-Friesian lines 465-538kg all traded at $1190$1350. There wasn’t an abundance of one-year steers available, however a decent number of Friesian 329-358kg did make $875-$950. Hereford-Friesian heifers 303350kg of the same age met similar interest to past weeks at $810$945. Yearling bulls were mainly Jersey’s which sold at $590-$660 for 300-312kg and $780-$820 for 356-408kg. There was a reasonable amount of variety in the weaner calf market. Hereford-Friesian steers 121-123kg made $600 and Friesian bulls 113-150kg were $400-$500. A large yarding of sheep sold well. Prime lambs started at $84.50 for lighter types, lifting to $94 for mediums and $110.50 for heavies. Prime ewes maxed out at $79, dropping to $67 and $40 for the two cuts below. Heavy store lambs made $67, with mediums $59 and lighter pens $43. WAIKATO Even more cattle came out of the woodwork at FRANKTON, with older steers and yearling cattle especially well represented. Weaker schedules translated into a softer market for two-year steers. Traditional lines 549-627kg eased to $2.62-$2.69/kg with equivalent Hereford-Friesian’s at $2.60- $2.61/kg. Two-year heifers were mainly dairy or dairy cross, generally making $2.45-$2.48/kg for 472-517kg. Beef bulls 615kg plus made $2.68-$2.73/kg. Traditional one-year steers 345393kg went for $1025-$1120, with Hereford-Friesian’s 340-424kg at $950-$1110 and Angus 303-342kg making $945-$1050. Yearling 321-408kg Hereford-cross heifers went for $880-$950 and 343-418kg

Hereford-Friesian were $950-$955. All 339-389kg Friesian and beefcross bulls made $895-$990. Mixed age dairy cows 490-643kg were traded at $1.53-$1.62/kg. TARANAKI TARANAKI A yarding of around 275 cattle consisted of mostly bulls at STRATFORD on Tuesday, Stephen Sutton from New Zealand Farmers Livestock reported. Hereford bulls were well sought after, making up to $1600-$1800 or around $3.00/kg. A solid grass market meant cows were also in demand, trading at $1.75/kg. Wednesday sale had the added bonus of a ewe fair. Around 3000 ewes met better than expected interest, as two-tooth’s made $140$186, five-year ewes $80-$105, and mixed age lines $75-$90. These were around $10-$15 more per head than a year ago. Heavy mixed sex store lambs were $65-$85, while mediums made $50-$60 and the tail-end $35-$40. A few Suffolk and Suffolk-Texel rams made $350-$500, with Perendales $200-$350. One-year beef steers 300-340kg sold very strongly at $3.10-$3.15/ kg, with lesser cross-bred lines $2.65-$2.90/kg. One-year heifers were $2.75/kg plus. POVERTY BAY POVERTY BAY Just a small yarding of sheep were traded at MATAWHERO, where prices were in line with what was achieved in neighbouring areas. Ewe lambs struggled to meet, as lighter lines made $40-$44.50, and mediums $50. Other male lines were all medium in size, making $53-$64.50. The lighter tier of prime lambs ranged made $64.50-$65, rising to $77-$84 for much of the rest, though one line did make $98. Prime ewes all made $64-$75. HAWKE’S BAY HAWKE’S BAY Both the prime ewe and lamb markets were stable at STORTFORD LODGE. Ewe numbers eased back, but what was available sold to expectation given the relative strength of mutton schedules right now. Most good

condition ewes were $69-$79, with medium types $63-$69 and lighter lines generally $55-$66. Heavier prime lambs went mainly for $78-$89, easing to $69.50-$73 for forward-store lines. Cattle numbers were slim with only steers coming out in any sort of volume. All but one line of steers made $2.65-$2.75/kg, while some beef-type cows made $1.88-$1.89/ kg. A lack of local buying power due to the dry conditions meant store lambs stayed at the same lows reached the week beforehand. Nearly half the offering were medium male lambs which traded at $55-$60. Heavy lines didn’t fare much better, generally making $57-$71.50. Lighter and medium conditioned mixed age ewes made $55-$65. There was a big yarding of store cattle available, but the market for these held up reasonably well all things considered. Two-year steers met decent interest as traditional 480-513kg made $2.89-$3.00/kg with similar 568-655kg at $2.80$2.89/kg. Two-year traditional and Hereford-Friesian heifers 447491kg made $1185-$1290, or $2.63$2.66/kg. One-year cattle felt most of the weakness as per kilo rates generally weren’t far off older cattle. Angus steers 314-368kg traded at $950-$1092, while 400416kg were $1170-$1235. Yearling Angus heifers 275-302kg went for $800-$892 and Hereford-Friesian 232-288kg achieved $660-$770. Weaner calves were in short supply, but Friesian bull lines were consistent at $447-$490 for 105119kg. MANAWATU MANAWATU A yarding just over 1500 store lambs sold to a similar level as neighbouring saleyards at DANNEVIRKE. The average rate for the entire store offering was $56, as ewe lambs made anywhere between $49 and $66, while male lambs were $41-$66. The peak for the sale was $68. A little less than 900 prime ewes made an average of $69, reaching as high as $98.50. Prime lambs were low, and what was traded made $73.50-$94.20. It was a repeat of the previous sale at RONGOTEA with weaners and ex-service bulls making up the bulk of the large yarding, Darryl Harwood from New Zealand Farmers Livestock reported. Three-year Hereford bulls, 875kg, made $2.29/kg or $2000, while 542-607kg two-year bulls of the same breed went up to $1660, $2.52-$3.02/kg. Two-year Friesian bulls 444-538kg achieved $2.48$2.68/kg, easing to $2.03-$2.33/kg for 392-636kg Jersey’s. Cross-bred and Shorthorn bulls 475-491kg made $2.53-$2.57/kg and $2.73/kg respectively. Hereford-Friesian 430kg topped out the per kilo rates among the two-year steer offering at $1180, $2.74/kg, while Angus-cross 345kg were $2.62/kg, and Friesian’s 444538kg ranged across $2.18-$2.56/ kg. Two-year 425kg HerefordFriesian heifers achieved $2.52/ kg, rising to $2.67/kg for 472kg Angus-cross. The yearling cattle offering was small, with only a single line of steers, 357kg Hereford-Friesian, making $1085, or $3.03/kg.

Markets

Bidding on one-year and 18 month Hereford-Friesian heifers was consistent, at $2.87-$2.93/kg for 344-387kg and $2.77/kg for 310kg. One-year Jersey bulls 312-392kg went for $2.20-$2.29/kg. Weaner Friesian bulls 105-117kg went up to $450, at $3.26-$3.91/ kg, with cross-bred lines 115-144kg only making as much as $415. Hereford-Friesian bulls 130-133kg went as high as $570, while Anguscross 100-119kg peaked at $535. Hereford-Friesian weaner steers 96-120kg sold for as much as $570, while heifers of the same weight reached up to $515. Beef cows with calf at foot made $1070. Boner Friesian cows 552-629kg sold at $1.65-$1.68/kg, while crossbred 512-519kg were $1.64-$1.71/ kg. Two-tooth ewes made $90, with mixed age at $45-$57. Mixed sex store lambs went for $61-$78. Ex-service bulls and dairy cows made up the numbers in the cattle pens at the FEILDING prime sale. Cows didn’t find much interest from the buying bench, easing to $1.50-$1.60/kg for 470kg plus Friesian lines. Beef and Friesian bulls 480kg plus were $2.73-$2.87/ kg, but lighter Jersey’s softened to $2.18-$2.27/kg. Prime lamb numbers halved and prices lifted marginally as a result. All prime lambs made $81-$113. Prime ewes continued to sell to a good level. Heavier types were in shorter supply, making $82-$86.50, with much of the rest medium conditioned, making $63-$81. A larger entry of store lambs from the dry areas of central and coastal Hawkes Bay dominated what was only a moderate yarding of store lambs on Friday. Vendors would have been pleased at sale returns well ahead of those likely at local yards, albeit those returns are still inadequate. The top sale prices were paid for local woolly blackface lambs with bloom as the ram lambs made $77.50-$78 with the ewe lambs at $74.50. The better and medium lambs eased slightly but the longer term lambs firmed with quite a wide range in cents/kg and ewe lambs are still in low numbers. Sheep (6,850): ewes (33), $77; lambs; 36-40 kg, $74-$78; 31-35 kg, $66.50-$76; 16.5-30 kg, $46.50$65.50. Large numbers of older steers have been sold recently which kept the lid on steer prices, although 25 Angus sold for $1760 ($3.02). The lack of buyers took around 20 cents/kg off eighteen month steer prices with the tops making $1465 ($3.10). This drop was also experienced in the eighteen month heifer section which was also affected by dairy heifer entries. A dozen Hereford/Friesians sold for $1130 ($2.64) but only one pen of Angus heifers sold for $3/kg. The older bull section had more entries of Hereford and Jersey service bulls which distorted the sale returns. Eighteen month Jerseys were also offered but, if only the meat bulls were considered, the younger bulls were reasonably steady with the heaviest Friesians selling for $1345 ($2.63). Cattle (1,027): steers; R3, 394587 kg, $1060-$1760; R2, 250-472 kg, $730-$1465; bulls; R3, 440-622 kg, $1010-$1725; R2, 354-510 kg,

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017

heifers were Hereford-Friesian, with 100-120kg making $525$580 and 85-100kg at $440-$500. Hereford-Friesian steers 105-145kg were $560-$590

GET MOVING: Moving stock at last week’s Stratford Ewe Fair.

Photo: Ross Nolly

More photos: farmersweekly.co.nz

$1035-$1345; R2 Jersey, 305-402 kg, $650-$880; heifers; R3, 387-487 kg, $1040-$1310; R2, 281-432 kg, $750-$1130. For full reports on these sales visit agrihq.co.nz/farmer CANTERBURY CANTERBURY Feed is hardening off a little through Canterbury, which meant good interest in short-term store cattle at CANTERBURY PARK. A decent sized gallery of buyers weren’t able to bring store lamb prices has high as last week, but they still sold well overall. Medium-to-good lambs were $69$75, while lighter lines were mostly $54-$65. Heavier prime lambs felt some weakness, dropping too they made $100-$108. Mediums were $90-$100 and lighter lines $80-$87. Prime ewes actually lifted $5-$10 on the previous sale. Heavier lines were generally $90-$116, with more moderate pens $70-$86. Prime steers 515kg plus mostly traded at $2.82-$2.97/kg, though forward store lines were even more sought after at $3.00-$3.13/ kg. Prime bulls 519-610kg were making $2.60-$2.69/kg. Prime heifers 458-513kg fetched $2.70$2.81/kg, though the odd forward store line went as high as $2.96/kg. The first store offering of the new year sold to expectations. Angus-cross steers 333-380kg made $1120-$1270 while Herefordcross steers 316-348kg went for $1025-$1100. Angus-Hereford heifers 326-415kg all made $1030$1260. The weaner market eased on last year to $405-$420 for 92-102kg

Friesian bulls. Hereford-Friesian heifers 138-148kg made $500-$575 and 132-157kg steers $520-$600. There wasn’t a great deal of change in either volumes yarded or prices paid when compared to the previous sale at COALGATE. There was solid interest through the prime lamb offering. Much of the sale made $110-$116, while the rest were spread across $81-$99. Heavier types consistently made more than $100, even going as high as $132, though the bulk of mixed aged lines were $92-$99. There was a little easing found in the store lamb trade. The ceiling remained at $80 for the heavier end, though the majority went for $65-$75. A handful of breeding ewes sold well at $107-$117. Prime steers 570-720kg nearly all made $2.85-$2.88/kg, though one 545kg line went up to $3.03/kg. Heavy prime heifers 512-558kg were only just behind their brothers at $2.75- $2.84/kg, easing to $2.62-$2.66/kg for 466-490kg. One-year steers were in short supply, peaking at $2.91-$3.00/ kg for 237-406kg traditional lines. Small one-year heifers sold decently at $710-$835 for traditional 231-261kg, while 340390kg Hereford-Friesian’s made $910-$1065. Weaner Friesian bulls dipped down to just $390-$420 for 8994kg, rising to $445-$460 for 117132kg. Most weaner heifers were 122-123kg Friesian-Jersey, making only $320-$330, though 127kg Murray Grey-cross did well at $500. SOUTH CANTERBURY SOUTH CANTERBURY The week started off with good

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results across both the prime cattle and sheep sales at TEMUKA. Prime cattle were in abundance due to a yarding of nearly more than 400 ex-service bulls. Friesian bulls 489-840kg were very consistent at $2.51-$2.60/kg, while Hereford bulls 546-579kg made $2.65-$2.77/kg. Jersey bulls were varied, but $2.48-$2.62/kg covered most 448585kg. Prime Friesian cows were mainly $1.70-$1.85/kg, though traditional lines 610kg plus made $1.90-$2.04/kg. Some beef type prime steers 525kg plus were $2.85-$2.95/ kg though much of the rest were $2.75-$2.85/kg. Traditional and Hereford-Friesian heifers 445kg plus made $2.69-$2.83/kg. A small influx of heavier lambs into the prime pens saw just under a third make $110-$120. Much of the rest were $90-$109. It was more of the same for prime ewes. The very best were $130, while good types managed $110-$119 and the rest were spread across $60-$99. The store lamb pens had a selection of mostly lighter lines, selling at $59-$70. Medium and heavier lines began at $65 but went up to $76. A handful of MA store ewes were $80-$99 More than 3000 calves changed hands at the weaner calf sale, where prices were only down a little on the previous calf sale around a month ago. Friesian bull calves 100-115kg made $470-$520, with $530-$610 covering 120-150kg. Prices were more mixed for Herefrod-Friesian lines, but 105-125kg were generally $560-$600. The vast majority of

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OTAGO OTAGO There was a good sized yarding of sheep at the BALCLUTHA sale, Barry Osborne from PGG Wrightson reported. A quality yarding of prime lambs sold to recent values. Heavy types ranged across $98-$109, easing to $88-96 for mediums and $79-$85 for the lighter end. The prime ewe market was stable for the small number that were available. Better lines made $95-$118, mediums $87-$93, and much of the rest $77-$81. Store lambs were only of average quality, selling to the same level as on-farm sales. Top lines made $77$82, medium pens were $72.5-$73 and lighter lambs $55-$67. Buyers from Hawkes Bay, Feilding, Marlborough, Canterbury, Southland and Otago attended the Craigneuk stud ram sale in the Maniototo, Central Otago, earlier this month. Roger Keach a PGG Wrightson genetics representative reported a quality offering of Dorset Down, South Dorset, three-quarter Dorset, Texel-Poll Dorset and half Bred Rams. The 98 Dorset Down rams sold averaged $1052, 48 South Dorset rams averaged $1037, 44 threequarter Dorset rams averaged $984, 20 Texel-Poll Dorset rams averaged $845 and 49 half bred rams averaged $1178. SOUTHLAND SOUTHLAND There were large yardings of both prime and store cattle at LORNEVILLE, however this did not detract from prices, which were generally better than the week before. Good conditioned prime cows peaked at $1.75-$1.80/kg for 500550kg, with medium condition 450-500kg making $1.65-$1.75/kg and 400-450kg lines $1.50-$1.60/ kg. Prime steers 400-450kg were $2.50-$2.60/kg, while similar heifers actually sold better at $2.60-$2.70/kg. Ex-service bulls made up the rest of the prime yarding. Beef types 500kg plus were $2.50-$260/kg, easing to $2.30-$2.40/kg for heavy dairy types and $2.10-$2.20/kg for lighter dairy bulls. In the store line-up, one-year 360-370kg Hereford-cross and Friesian steers went for $1060$1070, $2.90-$2.95/kg, while twoyear bulls 440-490kg were $2.60$2.70/kg. Weaner calves were mostly Hereford-Friesian types, as 130kg plus bulls were $550-$630 and 100-130kg made $400-$500. Heifers 100-130kg achieved $420$460, rising to $480-$580 for 130kg and above. A few mixed age run-with-bull cows made $1160. A smaller yarding of both prime and store sheep found good interest, leading to pricing firming on the previous sale. Heavy prime lambs made $91-$99, mediums were $82.50-$90, and the lighter lines $75-$81. Top prime ewes were $94-$116, with moderate pens $75-$90 and the rest mostly $66-$70. The better end of store lambs made $75-$80, easing to $68-$72 for medium types and $58-$65 for lighter pens.

Markets

40 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 23, 2017 WAIKATO MAIZE GRAIN

NI SLAUGHTER LAMB

NI SLAUGHTER BULL

($/T)

($/KG)

TRADITIONAL PRIME COWS, 575KG PLUS, AT TEMUKA

($/KG)

370

5.10

5.00

2.03

high lights

Quality wool wanted Alan Williams alan.williams@nzx.com

OOD quality wool was sought after at last week’s Napier sale but more volumes with higher colour and vegetable content pushed the market generally lower. With Chinese buyers still largely out of the market till the end of the Chinese new year holidays at the start of next month, trading remained subdued, AgrHQ analyst Shaye Lee said. Chinese buying of strong wool was at very reduced levels in the latter part of last year and it would be a “wait and see” situation when they returned. “The market needs those buyers back,” Lee said. With the peak of the wool supply season between now and the end of March coinciding with a lull in demand, average to poorer type wools would continue to be heavily discounted. Some were 4% to 7% cheaper, quite a drop following the big slide in prices through the second half of last year, she said. “These wools not up to quality highlight the soft footing we have in the market.” Among Napier prices full wool 35 micron traded up to $3.73/kg clean, off 22c from a week earlier. A 36 micron price was $3.87/kg clean, just 2c lower,

WAIT AND SEE: AgriHQ analyst Shaye Lee expects downward pressure on wool prices to ease when Chinese buyers return to the market.

and steady were 37 micron at $3.83 and finer cross-wool 30 micron at $3.86. For second-shear wool, good three to four inch 39 micron rose 25c to $3.92/kg clean and two to three inch was at $3.83, plus 15c. Good 30 micron lambs’ wool, two to three inches, was at $4.37, up 22c on a week earlier. Of the 9236 bales on offer in Napier, the pass-in rate was 17%. That was much higher

than the less than 10% pass-in rate at this time last year but it was positive that the rate wasn’t increasing over the high levels in recent sales. Most of the buying was from the United Kingdom and western Europe, Middle East, India, Australia and New Zealand carpet mills. Lee expected the return of Chinese buying should offset to some degree the dampening of price

expectations over the rest of the peak supply season through to the end of March. The NZ dollar remaining elevated, at US$0.7168 at sale time, added to the pressure on prices but was a side-factor to the underlying weak demand, she said. The market would remain under pressure this week, with both a North Island sale of about 8850 bales and South Island sale with up to 9600 bales on Thursday.

$470-$570

$125-$150

Friesian bulls calves, 100-130kg, at Temuka Calf Sale

Most moderate and good two-tooths at Feilding Ewe Fair

Steady start to the New Year DAIRY markets have started 2017 steadily after lifting sharply in the later part of 2016. Markets are relatively balanced. Prices are expected to bump along near current levels Susan Kilsby for the rest of the 2016-17 dairy AgriHQ Analyst season. Global milk supply remains tight and will stay that way at least until northern hemisphere milk supply cranks up in the second quarter of the year. Supply from Oceania is expected to remain tight throughout the season as poor weather and financial constraints limit output. The drop in milk production in both New Zealand and Australia this season means dairy products from these countries are achieving premiums in the global market. However, when price differentials get too great we start to see some buyers altering their buying patterns in favour of product from other countries. The tight supply out of NZ was responsible for the whole milk powder (WMP) price lifting far above the price for skim milk powder in the later part of 2016. That has now corrected because more milk was directed into WMP, alleviating tight supply. Demand for dairy products remains robust in most of our larger markets. Steady buying from Asia is offsetting weaker demand from the Middle East and north Africa, where economies are slowing because of low returns from oil. Milk fat remains in high demand because consumers’ dietary trends in developed nations favour natural products over artificial products. The AgriHQ milk price forecast sits at $6.40/ kg of milksolids for this season. Milk price futures are priced at $6.30/kg MS for this season and at $6.40/kg MS for next season. susan.kilsby@nzx.com

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