Farmers Weekly NZ 9 January 2017 by AgriHQ

9 Citizen water monitors welcome but ... Vol 16 No 1, January 9, 2017

farmersweekly.co.nz

Billion-dollar beef battle won Nigel Stirling nigel.g.stirling@gmail.com

A RESOUNDING victory in a billion-dollar beef market battle has added weight to calls for greater use of the World Trade Organisation to defend New Zealand’s agricultural exports from rising protectionism. The Geneva-based body two days before Christmas released its ruling in favour of NZ and the United States in a longrunning row with Indonesia over restrictions on imports of beef and horticultural products. Since being introduced in 2011 the measures, which variously consisted of a ban on a wide range of cuts as well as a complex system of import permits, blocked up to 90% of NZ’s beef exports to Indonesia and cost the industry up to a billion dollars in lost sales. Consultations with the Indonesians in 2013 and 2014 came and went but left NZ unsatisfied as the country’s officials simply swapped one set of import restrictions for another. In 2015 NZ requested a panel of the WTO’s Dispute Settlement Body be convened to review the measures. The US joined as a colitigant soon after. In its judgement released on December 23 the Genevabased body rejected Indonesia’s arguments that the measures were defendable under international trade law and instead ruled that all 18 measures challenged by the complainants were illegal. A failure to bring itself into

line with the ruling would mean NZ could impose tariffs on Indonesian imports or seek compensation. Indonesia can appeal the ruling. It was the first case taken by NZ since its successful challenge in 2007 to a century-old ban on apple exports to Australia and extended its unbeaten run at the WTO to nine wins. It also came as the Government put the finishing touches to an overhaul of trade policy kicked off by Trade Minister Todd McClay soon after taking over from predecessor Tim Groser in late 2015. McClay said the review focused on ways of tackling trade barriers like those used by the Indonesians. One of the country’s top trade lawyers, former trade negotiator Tracey Epps, said protectionism hurtful to NZ exporters was on the rise and the Government should not just be taking cases it thinks it is guaranteed of winning. “If we have a very credible legal case and a strong interest commercially or some more systematic point of view where we want to ensure that things are interpreted a certain way and a message is sent, then I think we should bring those cases.” Epps said headline-grabbing threats by American presidentelect Donald Trump to slap a 35% tariff on imports from China to protect American jobs were just the tip of a larger trend to protectionism that increasingly included substantial non-tariff barriers to trade. A report last month by the NZ Institute of Economic Research showed non-tariff barriers

growing and costing the dairy industry $3.9b a year. In late 2015 the Dairy Companies Association wrote to McClay urging the Government not to shy away from using enforcement provisions in NZ’s free-trade agreements as well as the WTO to address non-tariff barriers and subsidies. The industry was awaiting further details of a guaranteed minimum price scheme for Canadian dairy farmers with the potential to suppress global milk powder prices, which it believes could be illegal under international trade law and a candidate for a joint case at the WTO along with other dairyproducing countries. The Government’s agricultural trade envoy Mike Petersen believes rising protectionism is likely to lead to NZ taking more cases to the WTO but cautions against taking aim indiscriminately against trading partners. “It is all very well to look at the WTO and trade disputes in isolation but you have to consider the wider economic and political relationship as well.” Petersen said NZ exporters faced a number of irritants in dealing with China, for example. However, trade was flowing well on the whole between the two and NZ would want to think carefully before it took a case to the WTO challenging its single biggest trading partner.

MORE LABEL BARRIER NEWSMAKER

P4 P14

SUPERDOGS: Primary Industries Ministry dog handlers Susan Palacio, left, and Lucy Telfar admire the new pups. Palacio works with Morley the harrier hound, who is the father of the pups. Telfar works with Clara the beagle, who is the mum.

Biosecurity superdogs born A litter of superdogs has been born to improve New Zealand’s future biosecurity. The Ministry for Primary Industries hoped a new breed of detector dog would produce its best biosecurity sniffers ever. Its detector beagle Clara gave birth to three male and three female puppies on November 24. The sire was Morley, a harrier hound. Both dogs work for MPI at airports and ports to sniff out food and plant materials that pose biosecurity risks. “It’s the first time anyone in the world has crossed a beagle and a harrier for detection work and we have very high expectations for this super-

breed,” detection technology manager Brett Hickman said. “The idea is to combine the height of the harrier with the proven biosecurity qualities of the beagles we have been breeding for nearly 20 years. “The result could be the perfect sniffing machine to keep unwanted pests out of NZ.” The new dogs would be about the size of a labrador. “Their extra height will make it easier for them to sniff backpacks carried by travellers or airport baggage stacked on trolleys.” MPI started using harriers as detector dogs last year. It has used beagles since 1996.

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NEWS

NEWSMAKER

Soil Moisture Anomaly (mm) at 9am January 6, 2017

14 Hold trade

3 Milk price safe despite GDT Global Dairy Trade prices eased back over the Christmas-New Year holiday period but the decline does not yet threaten the $6/kg farmgate milk payout forecast. The GDT index dropped 0.5% at the December 21 auction, followed by a 3.9% decrease on January 4.

4 Fruit sector star still rising The horticultural sector has been identified in the Ministry for Primary Industry’s latest Situation and Outlook for Primary Industries (SOPI) report as a star that continues to rise strongly into the new year and beyond.

6 Tourist boom hikes rural rates Rural districts hit with a deluge of tourists are taking matters into their own hands to avoid ratepayers being faced with major bills for local infrastructure to cope with the influx.

Milk price safe despite GDT �� 3 MPI predicts return to good times �� 3 Fruit sector star still rising �� 4 Varsities’ ag training money cut �� 5 Lincoln University revenue in decline �� 5 Directors survive election process �� 5 Tourist boom hikes rural rates �� 6 Bed tax not best option �� 6 Brokers predictions vary widely �� 7 Another factory for fast food �� 7 Roads key to secure future �� 8 Air freight takes off �� 8 New AngusPure promoter �� 8 Citizen water monitors okay but... �� 9 Wool price relief expected �� 10 PWC loss precedes payoffs �� 10 Dairy land demand up �� 11 Prices up on tight grain supply �� 12 Apple grower stalks improved earnings �� 12 New plant now above ground �� 13 Blue Sky board says hold �� 13

partners to account

60 Wetter than

It amounted to a billiondollar Christmas present for the country’s beef farmers. On December 22 the World Trade Organisation (WTO) upheld a challenge to rules used by Indonesia to restrict beef imports and which NZ claimed cost exporters up to a billion dollars in lost sales since 2011.

normal (mm)

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Drier than normal (mm)

OPINION 19 Meaty Matters Allan Barber takes a look at how farmers here and overseas find it tough to make a living and the uncertainty facing those in America and Britain. Editorial �� 16 Cartoon �� 16 Letters �� 16, 19 Pulpit �� 15 Alternative View �� 18 From the Ridge �� 18 Meaty Matters �� 19

REGULARS Real Estate �� 20-25 Employment �� 26 Classifieds �� 26 Livestock �� 27

MARKETS

32 New plan

ready to go

Farmers want Beef + Lamb NZ to step up its market development work and chairman James Parsons says a start is under way. The new plan would involve more development work in key, mature markets alongside the export companies, Parsons said.

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

Job

of the

Week

Dairy operations manager – A unique opportunity has arisen to manage the 350head dairy herd based on year-round calving at Sydney University’s Corstorphine Farm, Cobbitty. The role is responsible for the dayto-day management of the herd, operating and maintaining a 24-stand fully autonomous robotic milking platform and providing livestock as required to support the university’s commitment to research and teaching. For the full job description visit the Farmers Weekly jobs site www.farmersweeklyjobs. co.nz and click on Dairy category. To find all other agjobs click on All Categories. #agjobs at your fingertips.

Market Snapshot �� 28

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 9, 2017

Milk price safe despite GDT falls Hugh Stringleman hugh.stringleman@nzx.com GLOBAL Dairy Trade prices eased back over the Christmas-New Year holiday period but the decline does not yet threaten the $6/kg farmgate milk payout forecast. The GDT index dropped 0.5% at the December 21 auction, followed by a 3.9% decrease on January 4. The all-important whole milk powder (WMP) prices dropped US$300/tonne or 8% over the two GDT auctions but remained about $1300 higher than the start of the season and still underpinned the payout recovery. AgriHQ dairy analyst Susan Kilsby said the $6/kg payout forecast by Fonterra for this season should still be achievable. “At this point the $6 forecast remains safe so long as we don’t see a sharp drop in milk powder prices as the year progresses. “Low milk production should keep prices relatively well supported through the remainder of the current season.” The AgriHQ indicator fell 15c to $6.37/ kg milksolids after the January 4 auction. That was the computer model prediction based on current GDT prices, values in the dairy futures market and the results season-to-date. Kilsby said the recent unusually high margin for WMP over skim milk powder (SMP) was now contracting as SMP prices rose 3.5% over the two latest GDT sales.

This was not a bad thing because if WMP prices were too high for too long, HANG ON: Fonterra’s forcast payout of $6/kg milksolids should still be achievable, AgriHQ dairy analyst Susan Kilsby says. buyers tended to look for substitutes, perhaps nonLatin American imports were up 13% to dairy, and that affected demand in the the end of August. longer term. In late December Fonterra produced an The supply and demand fundamentals official forecast of milk collection for the didn’t change over the holiday season, season of 1.46 billion kilograms milksolids, analysts said. down 7% on the previous season. ASB Bank rural economist Nathan Penny maintained his prediction of a Make no mistake, the $6.50 payout because “lingering global production weakness” would support dairy industry is still going dairy prices well into 2017. through an adjustment of After the January 4 GDT the ASB sorts and it remains the most economists said the price drop was a consolidation and they were still upbeat vulnerable of all farming for the rest of the season. sectors. But while the dairy industry was recovering, sharemilkers remained under severe stress, Federated Farmers reported Dr William Rolleston after taking a survey of its members. Federated Farmers Nearly one in five sharemilkers said they were experiencing undue pressure from their banks, 13% reported dissatisfaction and a further 11% poor communication. “Make no mistake, the dairy industry is Fonterra’s New Zealand milk supply was still going through an adjustment of sorts down 5.7% in the first six months of the and it remains the most vulnerable of all season and its Australian collection was farming sectors,” federation president Dr down 9%. William Rolleston said. European Union milk production “It’s no surprise the Reserve Bank was down in September for the fourth continues to highlight dairy as one of the consecutive month, China’s dairy imports main risks for financial stability.” were up 26% in the year to October and

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MPI picks return to good times Hugh Stringleman hugh.stringleman@nzx.com

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3-4% annual increases as dairy farmers were incentivised by higher prices. MPI was bullish for the medium-term outlook in primary sector export revenue, expecting annual increases of more than 5% to reach $48b in 2021. China bought 22% of total primary sector exports, accounting for $8.3b in 2016. Three additional trading partners took about half what China did – the European Union (minus the United Kingdom), the United States and Australia. In 2016 dairy would account for 36% of primary sector export revenue, followed by meat and wool on 25%, forestry and

horticulture each 14% and seafood 5%. The value of the NZ dollar increased by 9% over the past year against the US dollar and by 13% against the UK pound so those currency movements were a big factor in the static overall sector revenue. MPI director-general Martyn Dunne said the report would be published quarterly from now on, rather than every six months. “This increased frequency will provide opportunities to better track the performance of our sectors, provide more relevant data and commentary and inform decision-making across government and industry.”

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RECOVERING dairy prices will bring a big boost to the national economy but not until 2018, the latest Ministry for Primary Industries Situation and Outlook Report says. Next year export revenue from the primary sector – agriculture, horticulture, seafood and forestry – would be similar to this year, about $36.6 billion. The dairy component would be up 3% to $13.7b, being an improvement more than offset by a reduction in meat and wool income, down $1b to $8.2b. In the following year MPI economists thought the dairy industry would be cooking with gas – up 24% to $17b. They also predicted dairy revenue would continue to rise thereafter by a more modest 6-7% a year to top $20b in 2021. Underpinning the dairy industry numbers were assumptions for a farmgate payout of $6.41/kg in 2017, followed by steadily rising $7-plus numbers for the four subsequent years. Crunching the numbers on a calendar year basis rather than by dairy season, MPI said milk production in New Zealand would fall by 3% in 2016 and 2017 then recover all of that in 2018, followed by

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

Fruit sector’s star still rising Richard Rennie richard.rennie@nzx.com THE horticultural sector has been identified in the Ministry for Primary Industry’s latest Situation and Outlook for Primary Industries (SOPI) report as a star that continues to rise strongly into the new year and beyond. It estimated the country’s entire horticultural crop could be worth $6.3 billion by 2021, with kiwifruit being the big diesel engine driving most of that growth. The kiwifruit industry’s own estimates were that it would be selling $4.25b of fruit by 2025. But while kiwifruit might be the big driver, the report also picked strong growth in exports from lower profile crops including avocadoes, pears, apples and wine. That growth in kiwifruit sales was expected however to take a check in this year’s harvest, dropping 4.4% to $1.6b after last year’s record crop. MPI’s estimate of the industry being worth $2.2b by 2021 appeared light against Zespri’s own estimates the industry would be generating $4.25b by 2025. The report estimated production of Green kiwifruit would fall in 2017 because of

lower spring flower numbers pushing final fruit volume back. While the kiwifruit growth story was relatively well known, the wine industry had continued a strong trajectory that was starting to push the $2b mark by the end of the decade.

The report took a conservative view on apple and pear prospects for 2017 after an exceptional run of crop and value growth driven by high demand from Asian markets.

Forecasts were for the sector to reach $1.7b this year, a 7% increase from last year despite some earthquake damage suffered in the key sauvignon blanc region of Marlborough and the impact taking 2% of production off the 2016 vintage that was held in storage at the time of the quake. Strong demand in core markets and a relatively weak New Zealand dollar were supporting

Horticulture Export Values (NZ$M 2016-18) Year

2016

2017

2018

Kiwifruit

1673

1600

1750

Wine

1558

1670

1750

Apples and pears

701

770

830

Fresh/processed vegies

612

620

640

Other horticultural

438

530

500

Total exports

4982

5190

5460

% Change

+17%

+4%

+5%

Source: MPI SOPI report, December 2016.

prices in the sector, with United States exports, in particular, still trending upwards with NZ being the fastest-growing source of imported wine by value to that market. The average imported price of $8 a litre put NZ second only to France in its average import price, with Marlborough sauvignon blanc a key driver of that growth. After a strong start and high expectations in the sector, China’s growth had slowed in recent years, growing only 3.5% in the past year compared to the 23% growth in the US. The Chinese slowdown came as a response to the Chinese government reducing expenditure. The Chinese market has been characterised by its preponderance of red wines, with syrah, cabernet and merlot varieties comprising 60% of sales, compared to the 95% of sales in the US that sauvignon Blanc comprised. The report took a conservative view on apple and pear prospects for 2017 after an exceptional run of crop and value growth driven by high demand from Asian markets. Future growth was estimated to be driven as much by increases in existing orchard productivity as it was by increased orchard area, with plantings expected to have increased to 11,000ha by 2020, up from 9800ha today. But the report threw a conservative light over the industry’s buoyancy with a cautionary tone on the need for better alignment of supply with market demand for niche varieties and rising global supply providing increased competition. The risk of a higher dollar in a depreciated Euro-UK pound environment was also seen as a risk to export volumes to those markets.

CHOICE: New Zealand wines are now secondly only to French on price in America.

Thanks to avocados experiencing an “on-year” for crop in 2017, that fruit was expected to reach an export volume record of 4.9 million trays to June 2017, totalling $149m in export values. With upcoming approval anticipated for access to China and significant growth experienced in Japan, South

Korea, Taiwan and India the sector’s prospects were looking firm with a reduced reliance on the traditional Australian off-peak market. Meantime, vegetable export growth was being led, perhaps unexpectedly, by onions with increased plantings of the red variety in particular being targeted for markets in Asia.

French move labelled a non-tariff barrier Neal Wallace neal.wallace@nzx.com A TWO-YEAR country of origin labelling trial in France for dairy and meat in processed foods was not expected to greatly affect New Zealand but was another case of market protection. The trial started on January 1 and meant foodstuffs containing more than 8% meat must indicate the countries of birth, rearing and slaughter. For milk and food with dairy ingredients, the requirement was for the label to state the country where the milking was done and where the milk was transformed. That information had to appear

in the list of ingredients, either immediately after the name of the relevant ingredient or at the bottom of the list. Italy, Lithuania and Portugal have adopted similar country of origin requirements for dairy products. Beef + Lamb NZ chairman James Parsons said his organisation supported country of origin labelling so long as it was not mandatory. NZ lamb sold in France was labelled accordingly and the trial would have little impact but Parsons said country of origin labelling could evolve in to a nontariff barrier if adopted widely. Meeting the labelling

requirements could disrupt processing, there were direct and auditing costs and it compromised market drivers. “Our fear is this can put a cost on the supply chain without adding value,” he said. Dairy Companies Association executive director Kimberly Crewther described it as a move in the wrong direction for trade. “They are a non-tariff barrier which has a chilling effect on trade by imposing additional costs and creating perceptions regarding quality or safety, that are not evidenced based.” Mandatory labelling should be reserved for issues of food safety and consumer interests in food’s

country of origin can be addressed through voluntary labelling, she said. Crewther said country of origin schemes had previously been challenged through the World Trade Organisation. When the trial ends in two years, the French Ministry of Agriculture would provide a report on the trial to the European Commission but there was no suggestion it could be rolled out among the 28 member nations. The initiative would have market repercussions, according to a statement from the European lobby group FoodDrinkEurope. Last year it said it “deeply regrets” the decision to impose

a mandatory measure that had negative supply-chain consequences, created difficulties with labelling and would mean higher costs for producers and consumers. “Moreover, of crucial importance in today’s context for Europe, this protectionist measure also sets an irreversible precedent for the fragmentation of the EU single market for foods and drinks.” The group said by allowing France to embark on the trial, the European Commission accepted there was a difference in quality between French produce and that produced elsewhere in the European Union.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

Varsities’ ag training money cut THE Government has clearly signalled its intentions for primary sector sub-degree training by reducing funding for universities and polytechnics and increasing it for private trainers. Following a competitive funding process the Tertiary Education Commission has allocated $27.69 million of the $35m it had available to 19 organisations providing levels 3 and 4 training in agriculture, horticulture and viticulture. That was a $500,000 increase on 2015 funding. Universities and polytechnics received less funding relative to private providers in this latest round because of “other applicants scoring higher in quality assessments and/or offering better value for money for the same provision,” the TEC said in a statement. Documents released by the commission said the panel allocating funding preferred providers offering NZ certificates over national or local certificates.

It also favoured providers offering training locally or having direct contact with students and where there was a “strong on-job focus”. Former Tertiary Education Minister Steven Joyce has previously voiced concern over the effectiveness and quality of training and introduced contestable funding to “reset subdegree agricultural training”. The aim was to improve the quality of training so it responded better to sector needs, had a clear employment or career path and provided better value for money. The latest funding allocation also reflected a move away from third-party training providers after some were found not to be adhering to their contracts. Agribusiness Training, Taratahi Agricultural Training Centre and Lincoln-Telford had all in the last two years been required to refund the TEC for the under delivery of courses. As well, in the last few months, several companies providing primary sector training for several thousand people have gone out of business.

In addition to those not meeting TEC contracts, PGG Wrightson has decided its AgNZ subsidiary no longer fitted its business model, Landcorp was ending its farm cadet scheme and Lincoln-Telford has stopped using third party training providers. In further changes, Lincoln was also expected to announce in the next few weeks that it was quitting its Telford division with training of the sub-degree courses to be provided by Taratahi, SIT and Primary ITO. The TEC had 26 eligible applications seeking funding for 2017 with 19 tertiary education organisations successful, of which two were new, 14 received more funding and five less. “We took a holistic view in allocating provision through the competitive process. “This included balancing a number of factors such as regional distribution of provision, learner needs and regional demand.” Northland, Waikato, Bay of Plenty, Gisborne, Hawke’s Bay, Taranaki, Nelson and Marlborough were allocated

WORRIED: Former Tertiary Education Minister Steven Joyce voiced concerns about the effectiveness and quality of agricultural training.

more money than previously because they were considered priority learning areas. Providers in Auckland, Wellington and Canterbury received less because of what the commission called the “less quality provision on offer”.

Lincoln University revenue has been in steady decline A GLANCE at the consolidated accounts for 2013 to 2015 shows Lincoln University’s financial problems stem from declining revenue. Documents from former Tertiary Education Minister Steven Joyce’s office showed Lincoln recorded successive net deficits of $382,000 in 2013, $110,000 in 2014 and $5.2 million in 2015. The 2015 net operating deficit was nearly $3m worse than budgeted and a $5.1m turnaround from 2014. Revenue had fallen more than $4m in the three years, from $117m in 2013 to $112.8m in 2015. Government funding fell from $41m in 2013 to $37.5m in 2014 before rising to $39m in 2015 while student fees also fell slightly over that period, from $9m to $8.7m. Revenue also included a $4.6m buffer provided by the

Tertiary Education Commission against falling rolls following the earthquake. International fees were steady at between $11.3m and $12.5m. Revenue was also hit by a 1.3% reduction in research projects, equivalent to $3.6m, and 3.4% reduction in trading revenue, equivalent to $800,000. The lid was kept on expenditure, which was consistent at just under $118m, helped by a $1.8m reduction in staff costs from 2014 and 2015. Net operating cashflow was positive $9.7m in 2013 but had been negative ever since, dropping to negative $3.2m in 2015, which was a $6m turnaround on the positive $3.2m budgeted for. Assets and equity recovered in 2015 after dipping from 2013 to 2014. Assets were valued at $260m in 2015, close to the 2013 value,

having dipped to $245m in 2014. Property, plant and equipment were valued at $170m and there was $6m of capital work in progress. Similarly, equity recovered from $196m in 2014 to $214m in 2015 but still lower than 2013 when it was $223m. After the impact of the 2010 earthquake was factored in, the university recorded a $17.9m profit for 2015 following a $1.7m deficit in 2014, aided by a $27.4m partial insurance payout. The university and its insurers agreed in December to a further $25m partial settlement covering damage to a further 96 assets including the Ivey West Memorial Hall. Last September insurers paid out $11.5m in a partial settlement for damage to 140 smaller buildings on the campus.

Directors survive election process SHEEP and beef farmers appear contented with their elected officials at least. Beef and Lamb NZ farmer directors George Tatham (Eastern North Island) and Andrew Morrison (Southern South Island) were both re-elected unopposed to the producer board. Similarly incumbent Silver Fern Farms directors Dan

Jex-Blake and Richard Young have been re-appointed to the Silver Fern Farms Co-operative board without the need for an election after no nominations were received. The two farmer directors were elected in 2013 under the banner of industry reform and backed by Meat Industry Excellence. Since their election SFF

has sold half its processing business to Chinese retailer and meat processor Shanghai Maling for $267 million. That jointly-owned entity has been renamed SFF Ltd, with the other half of the business owned by SFF Co-op. Jex-Blake and Young have beem appointed co-operative representatives on the board of SFF Ltd.

The TEC would in the next few weeks make public the successful applicants. A spokeswoman from Lincoln University said she could not comment on the impact on its sub-degree courses because key staff were on holiday.

HEAD OF ASSET DEVELOPMENT AND SERVICE DELIVERY This is a role with a difference… Sitting in the Senior Leadership team and working closely with the CEO of a large dairy focused agri-business, this role is responsible for ensuring a future focused approach to the management of business and farm assets. Alongside is a responsibility for identifying, managing and coordinating a whole of business approach to current and new asset management. Assets within the portfolio include all land, livestock and on-farm infrastructure and across the business these total approximately $460m of assets under management. The reporting team includes a mix of employed and third party contracted providers in areas as diverse as compliance monitoring, environment, livestock performance and capital project management. This is not a role for the feint hearted, it is a role for a strategist who knows how to lead and engage a professional team to manage risk, create a long-term sustainable plan and deliver results for all business stakeholders.

About you Critical will be your ability to look into the future around farm production systems, sustainability, technology and environmental management and identify risks, opportunities and challenges. Everyday you and your team will be identifying opportunities for efficiency gains and improved asset performance. To be successful you’ll have held a senior management role within a dairy farming business. You will have significant leadership and strategic planning experience, a track record for getting things done and will know what it takes to successfully lead accomplished professionals and develop partnerships with external service providers. Project management, farm development and greenfield site development would also be advantageous.

About the business TheLand is the dairy brand for Dakang, a chinese-owned business with dairy farming operations across New Zealand with farm clusters in the central North Island and Canterbury. These operations currently milk circa 26,000 cows. The business has a longterm strategy around dairy and primary production in New Zealand and critical to this is a focus on the long term sustainability and performance of their assets. With a focus for the first part of 2017 in aligning their assets under one national business unit the senior leadership team is being appointed and the pressure is on to establish plans and policies for whole of business implementation from June 2017.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

Tourist boom hikes rural rates Richard Rennie richard.rennie@nzx.com RURAL districts hit with a deluge of tourists are taking matters into their own hands to avoid ratepayers being faced with major bills for local infrastructure to cope with the influx. With New Zealand tourist numbers for 2016 well over the three million mark, many are making a beeline for iconic scenic spots in both islands, often in districts with only a few thousand ratepayers to fund council activities. The Coromandel Peninsula, used to grappling with the influx of Waikato and Auckland residents to holiday homes over summer, has already faced more than $60 million worth of wastewater upgrades in the past decade that pushed rates bills up by several hundred dollars a ratepayer. The plants for Whitianga, Whangamata and Pauanui were required to cope with a summer influx that pushed the population from its 26,000 permanent residents to well over 150,000 in early January. More recently, overseas and domestic visitor numbers had ramped up by 10% a year and Thames Coromandel District mayor Sandra Goudie said the council had been exploring options for funding the double-digit growth with user-pays options.

They included pay and display parking at popular Hot Water Beach. Estimates were that exercise raised almost $100,000 last year. Boat ramps around the Mercury Bay region were also now charged. There was also a proposal for visitors to Cathedral Cove near Hahei to be required to “pay, park and ride” to visit the attraction which was now drawing almost 150,000 people a year via a Department of Conservation walking track. “I think we are going to see quite a bit more of this going on. It is one of the most common sense ways to get a return on the demands this influx places on services,” Goudie said. The council would be examining how funds raised through such provisions could be passed on to wider infrastructure maintenance and development in the district. Over time she hoped such userpays provisions would shelter the district’s ratepayers from funding the growth. “We hope we come to a balance at some point so we are not constantly increasing rates here to keep up with things.” Some locals had objected to the Hot Water Beach pay and display carpark. “But I have said this is the deal, give it a go, it is primarily for visitors.”

We have a rating base of only 6500 and 87% of the land area is DoC estate. Hokitika now has 1.7 million visitors a year pass through it with people heading down to Fox and Franz Joseph Glaciers or up to Punakaiki Rocks. Bruce Smith Westland District

COSTLY: Thames Coromandel ratepayers have already faced bills of $60 million to upgrade wastewater services to cope with the influx of tourists, Mayor Sandra Goudie says.

The district was served by only one state highway, meaning the council also faced funding a high proportion of roading costs. Goudie said there was some hope the district’s remaining onelane bridges would be replaced sooner than later if the council offered rated contributions towards their construction through the Transport Agency. Further south, Westland District mayor Bruce Smith was resigned to coasters going it alone to help his district cope with similarly significant increases in visitor numbers. “We have a rating base of only 6500 and 87% of the land area is DoC estate. Hokitika now has 1.7 million visitors a year pass through it with people heading down to Fox and Franz Josef Glaciers or up to Punakaiki Rocks.” He was sceptical that despite the Government’s belief in tourism as an economic saviour for regions there would be much

coming his district’s way to help develop infrastructure. “In my personal experience, I look and see what central government of any party has done in the past to ease the burden on ratepayers and there has been very little. We are not going to be relying upon government.” As a new mayor he was acutely aware of how rural ratepayers had been deeply unhappy with constant rates rises over the past five years that had amounted to more than a 70% increase. “So, was there kick-back there at election time? Too right. That is why there is only one councillor left from the last council and that is why we had 63% voter turnout in the district. People felt strongly about it. “I think the farming sector at the moment is now probably pretty happy with the council and the experience on it. We have to operate more efficiently, stop filling our buildings with people.” Like Goudie he is looking harder

at user-pays options to fund the growth. Parking was already charged at Franz Josef and a per head charge on heliport users was now generating more than $300,000 a year, up from $30,000 only six years ago. The Hokitika River Gorge road carried 70,000 visitors to the site last year, up from 20,000 only five years ago and it required a $1.5m upgrade. “We are looking at a number of options on how we fund that.” But any funding had to focus on user-pays to reduce the drain on locals. “It also needs to be fair and it needs to be able to take care of itself as growth occurs.” He also noted the best thing a council could do was “get stuck in and improve its efficiency”. His sentiments were shared by fellow coaster, Federated Farmers local government spokeswoman Katie Milne. She cited her own experience living in Canada and paying for park use. She said attractions like Punakaiki could and should be charged. “People will not begrudge paying a fee when the funds are going to improved facilities there. In Canada they also had a locals rate below the tourists’ rate.”

Bed tax not best option for districts A RATES analyst and tourism operator has questioned whether a proposed bed tax is the best solution for small provincial districts struggling to cope with the infrastructure demands tourism is putting on them. Kauriglen proprietor Larry Mitchell of Puhoi had closely analysed district council financial performance in recent years, publishing regular updates and league table rankings for all councils. Operating on the edge of the Northland region that has experienced double-digit growth in tourist numbers, Mitchell said a bed tax would be a flawed means to try to generate income for local bodies to expand facilities. The bed tax proposal was raised late last year in a tourism infrastructure study, with about $2 a night a bed being proposed along with a $5 increase in the border clearance levy. The Government had expressed some support for the idea. If matched dollar for dollar

with central government funding the proposals were expected to generate $130 million to invest in local tourism infrastructure in regions where councils were struggling to come up with funds off small rural ratepayer bases. “I look on the bed tax as a pernicious tax by central government. It has so many loopholes and unforeseen consequences for the operators and districts. Smaller operators risk getting hit proportionately harder.” He also agreed with some industry leaders who cited the tax hitting disproportionately hard on only the accommodation part of the industry. “Restaurants, souvenir shops, supermarkets, clothing and camping stores, garages, hire car firms etc, etc, all benefit hugely from tourism. Why then just charge accommodation providers? “Central government needs to get some skin in this game and at the same time use some of its wider net revenue-raising

PILLOW TALK: A pernicious bed tax with many loopholes is not the solution for relieving rural ratepayers of the burden of paying for services to cope with tourists, rates activist and tourism operator Larry Mitchell says.

mechanisms to fund the gaps in tourism-related infrastructure.” Mitchell’s concerns over the proposed tax were shared by Westland Mayor Bruce Smith. His district’s rating base of only

6500 people had been severely hit with rate rises in recent years and was in no mood for further increases. “But the bed tax is as unfair as a pan tax we as a council examined for toilets to fund wastewater plants. “The bed tax will hit the small motel with 36 beds but the restaurant across the road that is serving 300 people a day does not have to contribute anything extra to the demand tourists visiting it bring.” Councils were increasingly seeking their own solutions to the tourism tsunami sweeping over their services. User-pays was becoming the obvious option to help reduce pressure on embattled rural ratepayers. West Coast farmer and Federated Farmers local government spokeswoman Katie Milne suggested more charges be put on the local attractions that drew tourists in the first place.

Mitchell agreed, citing the United States where tourists were charged admission fees to visit national parks. Individuals entering Yellowstone National Park, for example, are charged US$15 if on foot and US$30 if in a car. The tourism report issued late last year found NZ national parks were recovering only about 5% of average costs from userpays charges (usually hut fees) compared to 20% in Australia, Canada and the United States. Mitchell said other options that should be made available to councils could include allowing public-private accommodation in national park areas. Smith also questioned how much small districts would benefit from a higher departure tax levy. “As a district council, we have to look to options we can control and a departure/arrival tax is not something we can control. It is likely to result in a dirty great scrap for money we will not see.”

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

Brokers’ predictions vary widely Hugh Stringleman hugh.stringleman@nzx.com SHAREBROKERS vary widely in their expectations for Fonterra share prices in 2017, from status quo at $6.10 to a high of $7.85 by year’s end. One of those expecting a substantial increase was Craigs Investment Partners, which on December 23 published a research note containing a Fonterra Shareholders Fund (FSF) target price of $7.15. It was among three brokers who recommended buying the stock, plus one who said hold and another who said sell. “We have previously been cautious on FSF due to GDT price volatility and higher gearing, but recent financial results have demonstrated a stronger base, good management execution and debt levels reduced to more comfortable levels,” Craigs said. “FSF offers good value to shareholders at current levels and earnings growth should drive share price performance.” Craigs analysts thought Fonterra could repeat its 2016 financial year dividend of 40c/share in both of the next two financial years. They forecast earnings per share would increase from 51c in

2016 to 54c this year and 59c next year, from which they assumed Fonterra directors would pay 74% out in dividend this year and 70% the next. The transformation benefits were being delivered in higher margins from ingredients, food service and consumer products while Fonterra had reduced costs and worked hard on inventory management. The turnaround of the Australian business should be delivered in 2017, restoring its returns. Craigs said the forecast price/ earnings ratio (PE) was 11 times and the forecast gross yield on the share would be 6.7%. However, Forsyth Barr analyst James Bascand recently took an opposing view, saying earnings momentum had weakened and stream return volatility had reared its head again. He forecast earnings per share at 50.4c, at the lower end of the current guidance from the company of 50-60c. Therefore his rating was changed from neutral to underperform and the target price lowered by 5c to $6.10. Rising input costs would cut into margins for consumer and food service products and

UNCERTAIN: Market experts have differing views of dairy’s immediate future.

lower milk supply would reduce operating efficiencies, he said. Forsyth Barr agreed with Craigs on forecast PE and yield. In a Christmas update for investors First NZ Capital forecast a FSF gross dividend yield of 7.5%, slightly above the NZX50 average and a PE of 10 times, considerably more favourable for investors than the NZX50 average of 20 times and the A2 Milk level of 25 times. Late last year Fonterra marked four years of Trading Among Farmers (TAF) and the initial public offering in November 2012 of FSF units, when both supply shares and units were listed on the NZX exchange. In the past year dairy farmers traded a total of 4.5% of the

Fonterra Co-operative Group supply shares (FCG) among themselves in the closed market, with 12,728 trades having a total value of $434 million. At the end of the calendar year there were 1.604 billion supply shares in farmers’ hands, down 0.8% (13m shares) from the number issued at TAF launch. The market capitalisation was $9.64b. In contrast, the FSF investment unit market continued to be very active, with 20,000 trades totalling $600m in value, an average of $30,000 per trade. Market turnover was 80% of the 121m shares issued and there was only one substantial shareholder at year’s end with more than 5%.

FSF grew from 95m units to 121m over the past four years and now contained 7.5% of the total issued capital of Fonterra. Its own market capitalisation was $730m. Since the launch there had been 91,000 FSF unit trades and only 39,400 trades of FCG shares. FSF had traded more than $4b in value, versus $1.4b for FCG, reflecting the much longer-term nature of farmers’ ownership of Fonterra supply shares. The average transaction of FCG shares during the past four years was $35,000 or about 6000 shares at today’s value. The TAF model relied on the markets in FSF units and the FCG shares to be mirror images, providing an informed, liquid market for the setting of values. FSF/FCG values began 2017 at similar levels to January 2016 and January 2015. Both of the two previous years contained big dips in share/unit prices – down as low as $4.60 in June 2015 and $5.32 in June 2016. Since listing at $6.85 FSF hit a maximum of $8 in May 2013 and down to $4.60 at its lowest point. Disclosure: Hugh Stringleman is a FSF unit holder.

Fast food means fast track for cheese factory Hugh Stringleman hugh.stringleman@nzx.com BURGEONING demand for Fonterra’s individually quickfrozen (IQF) mozzarella cheese has driven planning for another $240 million plant to be built on the Clandeboye site, South Canterbury. It would take nearly two years to build, open in September 2018 and double the site’s IQF mozzarella output. Fonterra said it was the biggest single investment into food

Richie McCaw

service capacity on the way to expanding the added-value division to $5 billion revenue by 2023. It was an add-on to the $1.4b capital works programme over 30 months that included $400m of consumer and food service processing capacity. IQF mozzarella took six hours to make instead of the traditional three months and the uniformity and user efficiency of the product catapulted Fonterra’s expanding food service business. China’s fast food appetite drove

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demand and IQF mozzarella already topped more than half of all pizzas eaten there, Fonterra’s global consumer and food service chief operating officer Jacqueline Chow said. Already, 40% of urban Chinese ate at western-style fast food outlets once a week and the use of dairy in food service had grown 30% in five years. Once made in the traditional way and frozen for transport, mozzarella clumped together and produced uneven crumb and distribution over pizzas.

The IQF version stayed flowable and uniform and was therefore more cost-efficient for giant fast food franchisees like China’s Yum Foods. The IQF innovation came from Fonterra’s Research and Development Centre in Palmerston North and was one of the co-operative’s most-tightly kept secrets, global operations head Robert Spurway said. The first IQF plant began at Clandeboye in 2008 and was enlarged at a cost of $72m last year.

The expansion would be on new ground alongside existing facilities and include whey and lactose processing along with waste water treatment upgrading. “Driving strong returns will always be at the heart of our business and turning our farmers’ milk into higher value products is key to this,” Spurway said. “At the same time, we are required to accept and process all milk which has meant we have needed to focus on capacity first rather than always investing in the highest value products.”

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

Roads key to secure future Annette Scott annette.scott@nzx.com RESILIENT roads rather than coastal shipping are the way to future-proof the South Island against major disasters, Federated Farmers president Dr William Rolleston says. “There is a competitive shipping model out there for ports but I don’t see that as particularly useful to the current predicament. “Government, over time, has put huge amounts of money into KiwiRail to the detriment of ports funding and now rail is wiped out so that just shows how vulnerable it is.” If the government did the same “picking winners” when it came to ports it would not be helpful, Rolleston said. “The key message is coastal shipping needs to be regulated by government as to how it works – practical costs for the right reasons so it can financially compete with land transport. “Ports of national significance subject to political influence might be an outcome but would not be seen as the best solution,” he said. “Frankly, I don’t see why one container needs to go out of Picton when we have Lyttleton, Timaru and Port Chalmers where there is commercial opportunity for ships to take containers to the

North Island and that would take the pressure of the main routes to Picton.” As for the road network, that was a complex issue that for farmers and rural communities was not just about the state highways. Fresh produce and livestock transport were the big difficulties for farming industries, Rolleston said. He was not convinced the alternative route was a viable option worth upgrading to state highway status. “Provided we can maintain the links, I think some inconvenience (to rebuild SH1) over the next two years or so might be the best spend and that means also maintaining the inland links for farmers.” Meantime, KiwiRail has entered the coastal shipping freight market with a new NZ Connect service. NZ Connect had been developed with the support of Ports of Auckland, Lyttleton Port and ANL Shipping. KiwiRail chief executive Peter Reidy said the disruption to NZ’s key supply route would continue for many months as the rail and road links were rebuilt. “Coming up with an alternative way of shifting freight for our customers is important and

BAD CHOICE: The Government “picking winners” to be ports of national significance would not be helpful to transport security, Federated Farmers president William Rolleston says.

KiwiRail is pleased it has been able to do this so quickly.” The new service would shift cargo from Auckland’s Wiri Inland Port and KiwiRail’s Southdown Freight Hub to Lyttleton’s Midland Port or KiwiRail’s Christchurch terminal

via ANL Shipping services. A plan to extend the service to include the return of freight from the South Island to the North Island was being finalised and expected to be announced soon, Reidy said. From Melbourne, ANL’s

managing director John Lines said ANL was committed to the new partnership supporting KiwiRail with the shipping company having ample capacity from Auckland to Lyttleton and further around the NZ coast.

Air freight takes off faster than shipping Hugh Stringleman hugh.stringleman@nzx.com AIR freight exports have increased nearly three times faster than sea freight value over the past five years but remain just under 5% of the total export revenue in the primary sector. The Ministry for Primary Industries said live rock lobsters or crayfish headed the list of air travellers, worth $317 million annually, and typified the lighter,

higher-value exports that went by air rather than sea. Other leading air freight products included “innovative processed foods”, live horses, chilled lamb and fresh cherries. MPI said in its December quarterly Situation and Outlook Report that air freight was at least 10 times more expensive than sea freight and so it suited only products with a short shelf-life or high value. Air freight exports earned 5% of

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leading to demand for chilled products. Air freight to China had grown from $17m annually to $537m in 2016 since the signing of the free-trade agreement with New Zealand in 2008. During that time the number of aircraft departures from NZ had grown by 20%, including a number of new routes to Chinese cities. Most air-freighted products

travelled in the holds of passenger aircraft, MPI said. Fresh cherries worth $65m flew to mainly Asian markets in the year to end June 2016, aimed at the Chinese New Year celebrations. But NZ cherries had to compete with other high-value products from NZ for aircraft space in January and with global leader Chile, which exported 25% of its crop to China by air and picked five times more cherries than NZ.

New promoter for AngusPure

Farm Manager

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the revenue but represented only 0.3% of total tonnage. China took almost all exported live lobster, at prices that exceeded $100/kg in 2016, MPI said. On average, air-freighted products were 18 times more expensive than sea-freighted ones. Growing tourism and expanding e-commerce were among the factors driving up air freight, along with rising incomes in key markets such as China,

ANGUSPURE has appointed Kim Lowe to the new job of national territory manager. She will start next month. Lowe will visit stud and commercial Angus cattle farmers, encourage the use of AngusPure Source and Trace tags and educate producers about AngusPure. Since raising her family Lowe has worked in agriculture for the past 15 years, most recently as a territory manager for Zee Tags in the lower North Island. “I am very excited to take on this new role with AngusPure, particularly to be learning more about the traceability and genetics side of things, the crucial elements that go into producing premium quality AngusPure beef. “This will grow both the supply and

NEW JOB: AngusPure has appointed Kim Lowe to promote the brand to farmers.

demand for the product, an outcome that is undoubtedly positive for the industry.” AngusPure established the role to grow

and secure the future of the AngusPure brand. It partnered with 36 studs to set up the new role.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

Ian MacKenzie in a developed area of a creek on his farm where mudfish and eels share the waters. Many hours have been spent planting areas along the creek by Ian and his wife in an effort to protect the mudfish species.

Citizen water monitors okay but ... Richard Rennie richard.rennie@nzx.com USE of citizen scientists to monitor water quality has been met with a cautious welcome from Federated Farmers and farmers already monitoring water quality in streams and rivers. Recent research from NIWA has claimed volunteers monitoring water quality brought gains in access to new data and increased community engagement on water way quality and values. NIWA freshwater ecologist Dr Richard Storey found some volunteers believed involvement in water quality had become “lifechanging” for them. To get better modelling and understanding of freshwater required increased data and Storey said volunteers could contribute by doing monitoring beyond what

regional councils and researchers could achieve on their own. “Streams are a bit like blood vessels. Councils monitor the arteries and big veins but the capillaries need monitoring as well,” he said. Federated Farmers resource management spokesman Chris Allen said there was a place for community volunteers who wanted to regularly monitor water quality. However, it should be done without any agenda or bias on what the outcomes of testing might be. Allen said he would be nervous about volunteer collections of water samples if the aim was to fire bullets at a particular sector. “But as long as the information is collected consistently it would be good to know that what we are doing is impacting upon the problem.

“Fencing waterways may help sediment losses but may not reduce nitrate losses if you still have problems with birds in the waterway as well.” Volunteers typically used simpler equipment and Storey’s work revealed data reliability was strongest when it came to measuring water temperature, electrical conductivity, water clarity and algae growth but less accurate for E. coli bacteria levels. Canterbury farmer and federation water spokesman Ian MacKenzie said any monitoring might be best done under an umbrella group, as had been done in his Hinds district. “We wanted to continuously monitor nitrate levels in the district’s drains. Environment Canterbury provided a proxy tool for nitrate estimation and

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DairyNZ provided the means to correlate that correctly. “We are a relatively representative group, Fish and Game did the sampling and it worked well. “We ended up with good information we all agree on regardless of background.” His concern was that zealous volunteers with their own agendas might derail an honest attempt to deliver additional data for freshwater monitoring. “But I would hope that ultimately they would be found out. It is critical people do it for the right reasons.” Storey also said professional support from regional councils was crucial to ensure the monitoring was done correctly. Volunteers in his research had found learning from scientists was one of the main rewards from taking part.

Mackenzie said it was also vital the samples were taken regularly to iron out anomalies that could arise from weather events. His group had been monitoring nitrate levels for 18 months and had proved invaluable in validating existing data. He had noted a Ballance Farm Environment award winner one year who had taken major steps to improve water quality on a Bay of Plenty farm by plantings and riparian restoration. “That was a classic case where the council did not have the resources at the time to measure the water quality in those waterways. “To have had citizens measuring it would have given us some good numbers over and above the feel-good factor such restoration brings,” he said.

News

10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

Wool price relief expected soon Alan Williams alan.williams@nzx.com THE first North and South Island wool auctions of the year are both on Thursday, putting further early pressure on the market, but there are signs of a better outlook. After being in freefall through the second half of last year, strongwool prices were an average 30% to 40% off earlier highs and the trend could continue initially, with upward of 14,000 bales on offer in Napier and up to 8500 in Christchurch. Expectations were the passin level could exceed 20%, PGG Wrightson auctioneer and South Island wool manager Dave Burridge said. The auction dates were normally week about. However, he thought the “worst of the storm” might be over. That would come as a relief to sheep farmers, many of whom were storing wool rather than accepting low prices. Talk around the market was that as many as 114,000 bales, which could have been expected to have been on offer, had not been sighted this season, Federated Farmers meat and fibre chairman Rick Powdrell said. Indications were they were being stored in farm woolsheds or brokers’ stores. Wool prices were really disappointing and with lamb prices also weaker had put pressure on the many farmers unable to diversify greatly from sheep. Burridge agreed significant

MISSING: About 114,000 bales of wool expected to be on offer have not been sighted, Federated Farmers meat and fibre chairman Rick Powdrell says.

volumes had been held back. The wool price had fallen so far that countries that hadn’t been strong buyers for a considerable time, such as India, the United States and European nations, were finding the values at the right levels to re-enter. “China is still very quiet but there is more inquiry about,” he said. As well, the kiwi dollar had eased, helping the wool market. A wet summer in many areas

had an effect on wool quality, including greater colour, but Burridge was still hoping for at least some stabilisation in early wool auctions this year and even a 2% to 3% rise before long. At the final December sale in Christchurch, prices fell 3% to 5% from earlier poor results and with a pass-in rate of 27% for the 7300 bales on offer. “There’s some resistance from growers to the prices being below expectations,” Burridge said then.

“We’re advising them that unless they don’t need the cash or if they’re expecting prices to be considerably higher, there’s no point offering at the next sale.” However, most farmers needed the cashflow. Bay of Plenty farmer Powdrell could step up his cattle numbers to offset the disappointing lamb and wool returns, compounded by slower pre-Christmas lamb growth. A bonus was that the season had been a bumper one for

putting weight on cattle. Powdrell’s wool had been sent to auction and he would meet the market. “I normally sell on contract but there was nothing from my company for the pre-Christmas shear. There was a contract for later on but I haven’t taken that up yet. It wasn’t good enough.” A change in fashion tastes in the Chinese market was largely behind the fall in crossbred wool prices. Middle class consumers had moved away from the strong wools to fine wools over the past several months, adding to pressure already in place from the slowdown in the economy there. Strong-wool values were back near where they were in the “dark old days” of 2009. In the two to three years up till about April last year wool had “punched above its weight” in price terms, being at a premium to synthetic fibres, Burridge said. For strong wools, the market was now hoping there might be a turnaround in demand from the biggest market coinciding with Chinese New Year demand later this month, with a firmer tone through February and onwards. That was when a lot of Chinese central government decisions were made on business policy for the year ahead. Second shear wool was a real struggle and some farmers who normally second sheared about now were starting to think about running their flock full wool through to winter.

PWC loss precedes expected pay-offs Alan Williams alan.williams@nzx.com Primary Wool Co-operative (PWC) has made a loss for the first time in several years, the result of falling wool volumes, but believes two of its major initiatives are about to pay-off. The loss for the year ended June 30 was $422,000, compared with a $368,870 profit a year earlier. Farmer/shareholders got $467,000 in rebates on wool they sold through the co-operative, up from $379,000 the year before. Higher rebate levels were partly a result of a bigger shareholder base, with 38 new names on the register, adding more wool to be sold through auction, chairman Bay de Lautour said. The co-op also sold woolpacks to shareholders at a discount and that trade also increased. A large part of the PWC business was done through the Carrfields Primary Wool (CP Wool) joint venture, in which PWC shared equal ownership with the Carr Group. CP Wool had increased market share at auction but had a 3% fall in volume as sheep numbers continued to fall and drought in some areas led to lower wool weights. The group believed the outlook

We believe we’ve got a serious, vertically integrated business from wool to showroom now. It’s a very robust model CP Wool/PWC was strong for two of its business ventures, the Christchurch-based NZ Yarns spinning company and the Just Shorn wool carpet brand, both supplied with wool by PWC shareholders. New Zealand carpet sales were ahead of expectations though there was a limited range in the market. A relaunch of Just Shorn was planned in the United States, using the upmarket hard-flooring retailer Carlisle. The Just Shorn revamp covered production and in-market activity. The bulk of the yarn being used for the carpets would now be made by NZ Yarns, increasing the scale of that business, CP Wool chairman and PWC director Howie Gardner said. “We believe we’ve got a serious, vertically integrated business from wool to showroom now. It’s a very robust model.” NZ Yarns made a loss in the

GROWING: Primary Wool Co-operative added 38 new suppliers last financial year, increasing wool volumes, chairman Bay de Lautour says.

June 2016 year, affecting the PWC group result, but had diversified its markets and had initiatives under way so the future looked good. Sheep farmers were being hit by the fall in the wool price after Chinese buying dropped away but

that also helped the profitability of businesses such as NZ Yarns and Just Shorn, because their core raw material got cheaper. There was no sign of the price fall reversing any time soon, Gardner said. The market change had pushed

some private buyers out of the market but the uncertainty was constraining remaining players from aggressively buying. “We’re carefully considering how we will operate in the market,” he said. “People who know a lot more than I do say this is unprecedented and it would be foolhardy to rush in.” Some farmers would be able store their wool till prices recovered but others might not be able to afford to. At the end of the trading year, CP Wool paid a $1 million dividend to the two shareholders, which they then lent back to the company. “Neither parent shareholder needed the money so it was put back in to support the NZ Yarns turnaround.” At balance date, PWC had assets of $4.48m and liabilities of $2.03m. The 50% share in CP Wool had a book value of $1.34m, down from $2.25m a year earlier and reflecting a move from profit to a loss by the subsidiary and the impact of the dividend payment. The co-operative still had a significant shareholder loan from de Lautour but the annual report said repayment was not required till sufficient funds were released from the CP Wool investment.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

Dairy demand is up but buyers cautious Alan Williams alan.williams@nzx.com DAIRY farm prices are well up on a year ago but buyers remain cautious and thorough in their due diligence. Increases in milk price forecasts were welcomed but buyers knew they wouldn’t improve cashflows because most of the benefit would not come through till October, Real Estate Institute rural spokesman Bryan Peacocke said. Nationally, the median price for dairy farms sold in the three months to November 30 rose to $47,385/ha on 45 sales, from $40,716/ha in the three months to the end of October (17 sales) and from $35,554/ha on the November period in 2015 (42 sales). That was a year-on-year median price gain of 33%, institute figures showed. Its Dairy Farm Price Index, which unlike the median figure adjusted for differences in farm size and location, rose 4.1% on a year ago. There had been some very good dairy farm sales in Waikato, though there had not been many listings of second and third tier properties to test that part of the market, Peacocke said. In the greater Waikato and Waipa region, confusion stemming from the regional council’s Healthy Rivers regulation was affecting the market for sheep and beef and dairy support farms. Dairy farms were not affected because they had detailed nutrient records, largely through Fonterra’s efforts, but the same could not be said for other farm types and there might be implications for farm buyers who wanted to increase stocking levels or change the land use. Good quality Taranaki farms were selling strongly but the general tone remained cautious. It was early in the dairy selling season in Southland but there was evidence of a 5% to 10% gap between vendors’ and buyers’ expectations. Buyers were generally local. A pattern of the dairy farm market was that there weren’t enough top-end properties to cater for demand and many of those potential buyers would not buy second or third level properties, Peacocke said. At the bottom end of the market there were indications vendors were starting to take the best price offered. They were farmers under some pressure because of the milk payout levels and thinking that a pick-up in prices offered a good time to sell.

Elsewhere in the rural market, there were really good sale levels of finishing and arable farms in Canterbury at very strong prices and also good volumes of sheep and beef farms in Otago. The sheep and beef property market had a “quiet confidence” about it and people were prepared to trade. In Northland there weren’t enough good farms being offered to meet demand. A strong horticultural block market had been highlighted since the end of November by a sale of a Gold variety kiwifruit block in western Bay of Plenty at $800,000/canopy ha.

SHORTAGE: Demand for top dairy farms is not being met.

100% of farms have toxoplasmosis present. 88% of farms have campylobacter present. So what are the odds?

Farm sale prices show confidence ABORTION STORMS. TWO DISEASES. TWO VACCINES.

When you think abortion storms, you probably think toxoplasmosis. Toxoplasmosis is everywhere and any ewe that contracts it may abort. But campylobacter also causes abortion, is nearly as prevalent and equally as deadly. Campylobacter can cost you 20-30% of your lambs.

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A NORTH Island East Coast hill country farm has sold for more than $1000 a stock unit carrying capacity, an exceptional price, according to the sales agent. The 394ha Glen Innis farm at Hangaroa sold at auction in mid-December for $3.35 million. There were six identified buyers prepared to bid and the opening bid was $2m, highlighting the level of demand, PGG Wrightson agent Arn Smith said. Two local bidders were still in the bidding at $3m. “As the rateable value was $2.2m, the sale price exceeded that by more than 50%, showing just what a positive result this was,” Smith said. The buyers were long-standing local farmers owning two nearby farms. Glen Innis is about 35km southwest of Gisborne. Wrightson agents in eastern Bay of Plenty sold a 66ha dairy farm at Awaker at auction for $3.7m. At $55,000/ha, the sale set a new benchmark for dairy farming properties in the area, Te Puke agent Dave McLaren said. There were seven registered bidders. The buyers were already farming in the Awakeri area. Over the last three seasons the farm produced more than 70,000kg MS a year from 200 cows.

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News

12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

Prices up on tight grain supply Annette Scott annette.scott@nzx.com A LIFT in demand, particularly from dairy farmers, has tightened the grain market with prices pushing up accordingly. AgriHQ analyst Amy Van Ossenbruggen said increased demand for all feed grains was particularly noticeable from the dairy industry though feed manufacturers were also buying extra grain. “Dairy farmers seem to have all jumped into the spot market at the same time, making up for feed that wasn’t contracted earlier in the year,” she said. Supply was becoming short but some growers were prepared to carry over stocks given there was still an expectation that dairy demand would push prices up further. Van Ossenbruggen said growers were reluctant to commit to contracts for much of the new season crop because they preferred to wait and see how the crop performed first. Crop condition in the South Island looked excellent for the time of season following good rainfall through the growing season, though crops could do with a bit more sunshine. In the North Island crop condition was mixed and seemed to depend on region. “Crops look okay in some areas but in others some crops are so poor that they have had to be replanted.” Most crop damage was caused by wet conditions, Van Ossenbruggen said.

The issue of moving grain from the South Island to the North Island continued to be an ongoing balancing act against imported grains. There was some coastal shipping into Whanganui and Taranaki that was tending to be the cheapest option. But Van Ossenbruggen said it did require the ability to store additional product. Trucking was attracting the steepest premium over rail, up to 70% in some cases. It was expected less domestic grain would be shipped into the North Island this year because of the extra cost so more imported feed was likely to be used. With continuing and challenging economic conditions industry data indicated the total area sown in wheat, barley and oats this season would be down about 7% on 2015 Meanwhile, seed breeders and industry experts toured several Mid Canterbury cropping farms to learn about new varieties of cereal being developed specifically for New Zealand growing conditions. While the wet spring had caused some disease pressure on both the barley and wheat trials, the tour did reveal some pleasant surprises, NZ Plant Breeders and Research Association general manager Thomas Chin said. Autumn was warm and crops were looking quite strong going into spring, which tended to increase lodging pressure in crops, he said. There were also a lot of aphids

MASS ASSESSMENT: Checking out a trial crop of spring barley at Methven were, from left, Tim Dale of SeedForce, Glen Simmonds, MaltEurope, Nick Brooks and Ian Ormandy, PGG Wrightson Seed.

flying into winter, increasing the risk of virus disease in cereals. “But while they found some disease pressure due to the wet spring, crops are looking very good where disease has been well controlled,” Chin said. The tour was an annual opportunity for agronomists, seed company representatives, merchandisers, traders, millers and other end users to assess new varieties and their performance across a different range of soils and irrigated and non-irrigated sites. Plant form and structure, yield estimates and disease resistance were key factors under scrutiny. “It was good to have

agronomists, grain buyers and producers together at the same time to assess the crop, especially given the arable industry acknowledged people were taking notice of South Island cereals both for milling and for animal feed purposes,” Chin said. NZ-produced grains, the kind brewers, millers and bakers wanted, were traceable and were consistently reliable in quality – an advantage over grains sourced from offshore, he said. “What’s more, NZ grain growers are world leaders in terms of yield. They have held or currently hold the world record barley and wheat harvest yields. “They are also competitive with

imported product,” Chin said. Cereal breeders invested substantial research into developing the best grain cultivars and the process could take up to 10 years before a new variety was released to farmers. “Total cost to produce a new cultivar could be much as $1 million from start to finish. “This is why the plant breeding industry is such a strong advocate for payment of royalties on licensed sowing seed, based on sales to growers,” Chin said. “These moneys provide the ongoing funding to ultimately develop further and better cultivars for both farmers and end users.”

Apple grower stalks improved earnings Alan Williams alan.williams@nzx.com APPLE grower Scales Corporation starts the new year with a new Hawke’s Bay acquisition and access to a new bright red apple variety targeted at Asian markets on top of another earnings upgrade. The listed agribusiness group achieved a 46% return, including dividends, for shareholders last year and has an early 2017 dividend to look forward to as well as a rosy outlook. The early-December profit upgrade followed a season of big sales volumes and strong prices for its biggest subsidiary, the Mr Apple business. The operating earnings (Ebitda) for the year ended December 31 were now expected to be $66 million to $69m, up from the earlier estimate of $55m to $62m. The expected earnings would also be a solid gain on last year’s Ebitda of $61.4m. Apple yields from the Hawke’s Bay subsidiary Mr Apple were above budgeted levels and were pretty much sold out ahead of year-end, group managing director Andy Borland said.

REALIST: Scales Corporation deals with biological assets subject to weather so likes a number it can be confident in, general manager Andy Borland says.

The newer Fuji and Diva varieties had sold very well into Asian markets and his “old favourite” Royal Gala had been a big part of the growth. “It’s our biggest variety by volume and it ate incredibly well this year so the quality was there and there was strong demand around the world.” Scales’ other two divisions,

Storage and Logistics and Food Ingredients, also had good years, with a record likely for the Food business. Ahead of year-end, the directors announced an 8c a share interim dividend, paid on January 18, well up on the 6.5c equivalent dividend last year. The after-tax profit for the year was expected to be between

$37.2m and $39.4m, again well up on the previous guidance, and fairly similar to the actual 2015 figure of $38.9m. Scales had a history of underpromising and over-delivering, leading to suggestions it was over-cautious in its forecasts but Borland said the agri-business group was dealing in biological assets subject to variable weather so preferred to be realistic in its budgeting. “We just like a number that we can be confident in.” For 2017, it now forecast Ebitda in the $55m to $62m range, with lower budgeted volumes and revenues from Mr Apple. “That market is a long way off and we think the world is a bit tighter than it was so we have to wait and see,” Borland said. This year would feature volumes and earnings from the new $20.5m Longview orchard and brand acquisition in Hawke’s Bay plus expected retail gains in China from the relationship with shareholder China Resources. Longview came aboard in early November and was expected to increase group earnings share by about 4% this year. It brought in another 85ha of orchard land and

30ha of land for planting. It had been classed by the China Fruit Marketing Association as one of the top 10 brands of fruit imported in 2016. The business also brought increased post-harvest capacity for the group. Offsetting the positives, the fall in sterling since the Brexit vote in June was a negative. Britain was a big market for Mr Apple. The group had been well-hedged ahead of the latest selling season but next season would be different at current cross-rates. Looking ahead, Mr Apple was also part of the group launching the new Dazzle apple variety, developed in New Zealand. It was a big, red, sweet-tasting fruit targeted at the Asian market. It was described as one of the biggest apple variety launches since Royal Gala decades ago and was expected to provide about a million cartons of sales by 2028. All NZ growers would be able to grow the fruit and all fruit exporters would be able to sell it. Scales shares ended 2016 on the NZX at about $3.36, after starting out at $2.30. Sharebroker CraigsIP said the group’s recent results were stunning and it had a 12-month price target of $3.50 a share.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

New plant now above ground Neal Wallace neal.wallace@nzx.com CONSTRUCTION of the country’s newest dairy processing plant will become more visible with the letting of tenders for above-ground work at the new Southland plant. Earthworks have been completed and Mataura Valley Milk director Aaron Moody said aboveground work at the joint Chinese-New Zealand owned factory near Gore was starting with a target opening date of August 2018. Expressions of interest from potential suppliers had exceeded the factory’s milk requirement but Moody said the next step was transferring that interest into supply contracts. The $200 million nutritional powders factory was being funded by local interests and the China Animal Husbandry Group, which would hold 71.8% of the shares. The pharmaceutical standard plant would produce infant formula, ultra-high temperature (UHT) cream and small amounts of skim milk powder with plans to have it operating all year round.

GOING UP: Looking at construction of the Mataura Valley Milk processing plant at McNab near Gore are engineering site manager Brent Robinson, left, and process site manager Sam Scott.

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DIRECTORS of Blue Sky Meats, the target of a takeover by Chinese company NZ Binxi Foods, are recommending shareholders wait before considering the offer. In a letter to shareholders chairman Scott O’Donnell said Binxi’s offer coincided with a new board and management but also the start of work on a new strategic plan from which there were initial signs improved earnings would result. Binxi was offering $2.20 a share, a price independent adviser Campbell MacPherson calculated as being at the high end of its assessed value range of $1.93 to $2.21 a share. It was also at a 69% premium to the most recent trades on the Unlisted exchange of $1.30 a share. Blue Sky directors also confirmed Binxi was now its third largest shareholder, holding 13.53% of shares. Those shares were bought from 14 shareholders at $2.20 a share, the majority from company founder and former chairman Graham Cooney and his wife Jill. The three other largest shareholders were Lowe Corporation with 17.95%, which has twice before tried to take over the company or increase its stake, H W Richardson Group with 14.43% and Blue Star Corporation, 11.25%. Earlier this year the board started the process of finding a suitable buyer for the business after which Binxi accumulated its stake. O’Donnell said the new three-year strategic plan would achieve significant operational efficiency and business improvement and provide opportunities to grow revenue. Campbell MacPherson described Blue Sky’s financial performance as volatile, operating on low earning margins that reflected its position as a small player in the red meat processing sector. It believed there was a low likelihood of another offer being made for the shares and that Binxi’s stake would block any competing full takeover offer. O’Donnell said the board would provide an update to shareholders this week and follow that with an informal meeting of shareholders in Invercargill on January 20.

Newsmaker

14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

LAST RESORT: Trade Minister Todd McClay says the Government is working on a range of measures to tackle trade barriers but litigation remains the final option.

EXPERIENCED: Tracey Epps working at lead legal counsel for New Zealand during the Trans Pacific Partnership negotiations.

Hold trade partners to account They are expensive and have been used only sparingly in New Zealand’s history. But one of the country’s top trade lawyers, Tracey Epps, says the Government shouldn’t shy away from taking cases against protectionist trading partners to the World Trade Organisation. She tells Nigel Stirling why.

T AMOUNTED to a billiondollar Christmas present for the country’s beef farmers. On December 22 the World Trade Organisation (WTO) upheld a challenge to rules used by Indonesia to restrict beef imports and which NZ claimed cost exporters up to a billion dollars in lost sales since 2011. It was NZ’s first time before the WTO’s dispute settlement body in Geneva since its successful challenge to Australia’s apples ban in the mid-2000s and its ninth straight win since the body was established two decades ago. Lawyer Tracey Epps, who was an adviser to the Ministry of Foreign Affairs and Trade during the Australian apples case, says the Government shouldn’t just take cases it is certain it will win. “If we have a very credible legal case and a strong interest commercially or some more systematic point of view where we want to ensure that things are interpreted a certain way and a message is sent, then I think we should bring those cases.” Epps speaks from a position of authority as one of the country’s top trade lawyers. She was lead legal counsel for NZ during the Trans Pacific Partnership (TPP) trade negotiations. Late last year she joined topend law firm Chapman Tripp as it bolstered its ranks in response to what it sees as backlash against free trade around the world and the likelihood of more trade litigation.

While United States presidentelect Donald Trump’s has been grabbing headlines with his threat to use a 35% tariff to restore American jobs lost overseas, Epps says that is merely the latest example of rising protectionism. A report last month by the NZ Institute of Economic Research on trade protectionism in the AsiaPacific region showed non-tariff measures annually cost the dairy industry nearly $4b and the meat industry $1b. While tariffs imposed a 15% cost to the dairy trade, that rose to a whopping 58% once non-tariff barriers were added. Epps says the WTO’s Uruguay round of global trade talks in the mid-1990s secured for the first time upper limits on tariffs but the positive effect that had on freeing up trade was undermined as new barriers sprung up in their place. Just because a country’s government signed a tariff-busting trade deal doesn’t mean its domestic industries suddenly give up lobbying to keep competition from imports out. “Countries have turned to non-tariff barriers as a way of protecting their domestic sectors.” In 2009 NZ and Australia signed what is regarded as one of its better trade deals with the ASEAN bloc of countries including Indonesia. The agreement provided for tariff elimination on 99% of products to key ASEAN markets by 2020.

But, mindful of election promises by successive Indonesian presidents to make the country self-sufficient in beef, officials in Jakarta devised regulations to shut out imports and boost its own farmers. Arguing its case before the WTO panel last year, lawyers for the Indonesian government claimed the measures were justified on food safety grounds and to protect public morals. Citing problems with the sale of thawed and refrozen meat in the past, the Indonesians said continuing to allow the sale of imported frozen beef at the country’s traditional wet markets represented an unacceptable risk to public health though NZ produced evidence that Indonesian state-owned companies continued to sell frozen beef at the same markets. Epps said it was not unusual for food safety concerns to be used as a front for protectionism. “A lot of the time measures may serve two purposes. They may serve a legitimate health and safety purpose but they also have the effect of protecting a domestic industry.” While such measures were defendable under international trade law they had to be based on science. “In terms of the WTO, they have tried to reach a balance … countries are allowed to make regulations to protect health and safety. There is no question about that. “But at the same time these agreements are there to provide trade liberalisation and ensure that countries are not discriminating against products from other countries and putting in place trade barriers that are unnecessary.” Epps said the beauty of the WTO dispute system was that it was in a

judicial setting which elevated trade disputes above the pushand-shove of global politics. “If we bring a case against the US – which we have done before – and the US gets a ruling from the WTO, it is in its own interests to comply because it wants other countries to comply when it brings its own cases against them. “So, it is a positive for a small country like NZ but we need to use it as well.” Epps’s message likely has a supporter in the dairy industry which in late 2015 wrote to Trade Minister Todd McClay reminding him of the potential contained in the enforcement provisions of NZ’s free-trade agreements as well as the WTO dispute processes as a means to tackle barriers to trade. Soon after that, McClay announced a “once in a generation” update of NZ’s trade policy. Announcing the overhaul McClay said having trade deals either completed or under negotiation with 90% of NZ’s export markets, the Government was ready to shift its emphasis to ensuring those agreements were working for exporters and achieving their aim of facilitating trade in the markets concerned. Reacting to the December 22 ruling by the WTO panel against Indonesia McClay said the Government was working on a range of measures to tackle trade barriers but litigation would remain a last resort. Epps said with it proving increasingly difficult to get new trade deals over the line governments internationally were turning to stronger enforcement of existing ones. That would prove to sceptical voters that free trade was not a one-way transaction benefiting multinationals exploiting cheap

We should be bringing cases because actually we need to make the point that countries cannot be allowed to get away with this. Tracey Epps Chapman Tripp

foreign labour but instead could create jobs and raise incomes for local workers if trading partners were made to play by the rules. But she believes it will be up to exporters if they want a similar hard-line approach from the NZ government. The first step would be to ensure officials were made aware where and how exports were being blocked. “It is something that industry may have to work a bit harder on putting their case to Government. “NZ has in the past had a high threshold when deciding whether or not to bring a case. “One is how strong is the commercial interest and the other is there a systematic interest … if countries are interpreting agreements in a way that is just not right or we can see they are putting in place measures not based on science. “Even if we are not sure of the commercial outcome we should be bringing cases because actually we need to make the point that countries cannot be allowed to get away with this. “If you let one get away with it then you let everyone gets away with it.”

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

Looking back to paradise lost Mary Tipoki

OMETIMES, when I read farming magazines, I struggle to reconcile the content with actual

farming life. Growing up in Whangamomona, a village way back in the hills of Taranaki, it never occurred to me that my father was doing anything other than what he loved to do. We never saw or heard of money so I presumed it was all for fun. My father had been to war so perhaps the relief and gratitude he had returned and bought his own farm was enough to keep him going. He did not need the drive for profit, just the drive for life. The first sound every morning, after the clanks associated with the lighting of the coal range, was the clank of the milk bucket as he started out to milk the cow simply by putting the stool under Bunty’s flank and pulling the tits. As we never knew that milk could come from the shop in a bottle I suppose poor Bunty milked until she dropped. There was the odd calf, and then she was milked again. There was always milk and lots of cream – just as well because milk was the only alternative to water, which I was not so fond of. After the cow milking Dad made his lunch, which consisted of a half a loaf of bread, a pot of plum jam and his billy with a jar each of milk, sugar and tea. That is what he walked the hills of Whanga on every day, no frills for him. He shoved all this into a tucker bag which was a sugar sack with two stones tied in each corner and secured with string, which he then slung over his back. With a quick goodbye to Mum, left with the little ones around her legs, he was off on his horse with dogs trailing behind, gone for the day to roam the hills that he loved and tend his sheep and cattle.

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Pulpit

Sometimes we got to go with him. He always walked the same pace on the hills and we had to run to catch up. Twice in the day he stopped to boil the billy. Our job was to scurry around collecting sticks to light the fire and soon the billy would be boiling. Then out came the loaf of bread and pot of jam and the feast was ready, which was just as well because we were always starving after so much hill climbing. One of the benefits of a large family was always having a ready labour force. No matter if it was shearing, docking, drafting or mustering we were often called on to lend a hand. Docking consisted of all us kids holding the scrim while Dad tried to direct the bellowing ewes and lambs safely into its clutches. What pandemonium but what excitement. Eventually the tails and balls were dealt to, ears were clipped, tallies taken and we all moved on to the next paddock to repeat the performance. How we loved it. Shearing was also fantastic. I can still see the leading dog heading the flock of a thousandodd ewes down the main street of

Whangamomona after the muster and destined for the woolshed. The heat, dust, barking of the dogs, drone of the shearing machines, sweat of the shearers and urgency of the shed hands is all etched into my memory. Meal and tea breaks in the shed back in the day were a sight to behold. The women rose to the occasion with all manner of carefully prepared savouries, sandwiches, asparagus rolls, sponge cakes, butterfly cakes, chocolate cakes, scones, things to make your eyes pop. Perhaps my favourite time was lambing. Scouring the hills for ewes in trouble was my forte. The lambing beat was done on foot or occasionally on horseback although the wet and slushy nature of the hills meant it was more walking the horse than riding. No stone was left unturned to ensure that every animal got a good chance at life. Any motherless lambs were taken into the woolshed and mothered onto ewes that had lost their lambs. One day my father had several ewes in the shed waiting for lambs but there were eventually more lambs wanting mothers than mothers to be had. Tired and wanting to get home before dark he plonked the last three lambs in with the last remaining potential mother. All night I was anxious to see if the mothering would be successful. Next morning the ewe with the three lambs was feeding and fussing over all of them. How happy I was. There could not have been much money in farming at that time. On our farm we had a river that had to be crossed to access the back paddocks. There was a flying fox operated by a winch which you could sit on to be transported across or during

HEAVEN: A life not dominated by materialism was priceless, Mary Tipoki reflects.

the summer when the river was low it could be forded. Of course the stock were always driven through the water which could be a dangerous business and was always accompanied by much drama with dogs barking, swearing, horses splashing and clearly what I now recognise as anxiety on the part of my father and uncles. One day it was decided to build a bridge. There were no engineer’s plans, no resource consents, no health and safety requirements. I remember my father drawing plans on the back of his yellow Park Drive tobacco packet. The actual construction of the bridge holds such wonderful memories. The bridge lasted for at least 50 years and saved stock and men much time and energy linking paddock to paddock. We have a wonderful photo of my father crossing the bridge on his horse with dogs at foot and a huge smile on his face. Stories were a big part of life back then. Whenever the men got together around the table, usually at

mealtimes, there would be marvellous stories better than any on television, which, of course, was yet to come. How lucky I feel to have been part of those times, to have received an oral history that is absolutely priceless. What I am now inclined to think is that it was not only the stories that are priceless but the life at that time itself, a life that was not dominated by materialism, as we had very little. It was about love for our life, love for what we did, an appreciation for where we were and what we had without any particular thought or intrusion into our lives to suggest that there was anything else. Looking back, I think it was a kind of paradise really.

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

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A unique opportunity to see and learn about Fonterra’s investment in China. Visit one of their dairy farms and meet with key staff in Beijing and Shanghai. Also participate in our longest running tour (since 1966), which has never ceased to amaze travellers on this exciting adventure. Explore China to see some major agricultural developments across this vast country and marvel at the extraordinary feats of engineering and ingenuity that have defined this ancient culture. Visit many cultural highlights. Stops on the side of the road to talk to local farmers are a unique feature of this tour. Extend your stay with a luxury Yangtze River Cruise.

Meet with farmers, enjoy the sights and experience the culture. Farm visits include dairy, sheep, beef and cropping. Find out what New Zealand farmers and companies are doing in South America. Visit Santiago, Valparaiso, Osorno and Puerto Mont in Chile. Cross the Andes through the scenic Lake District to beautiful Bariloche in Argentina. Tango in the exciting city of Buenos Aires and see the Plaza de Mayo and the Recoleta where Evita Peron is buried and walk through the Liniers Livestock Market where about 7,000 cattle are sold daily.

Discover the fascinating culture and heritage of Central and Eastern Europe and the diversity of agricultural practices across six countries. Contrast traditional farming methods with modern styles of agricultural production. Emotionally moving World War II sites. See architecture stretching over a thousand years in stunning Prague, one of the world’s most beautiful cities and explore charming towns and cities with cobbled streets and narrow passageways along the River Danube, the second longest river in Europe. Extend your tour to Romania where you visit Bran Castle and stay in Viscri Village.

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Opinion

16 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

EDITORIAL Not time for a lie down

Stephen Bell

LETTERS

More letters P19

Flaws cause integrity worries FOR obvious reasons I have stood back from the changes Silver Fern Farms (soon to be renamed Shanghai Fern Farms, I hear) has been embarking on over the past two years – silent, understanding and supportive. However, on day of settlement some flaws and worrying things have occurred. I make my commentary with a statement ringing in my ears, which I will not attribute, being: “integrity is everything, without integrity what do you have? – you have nothing”. The shape of the meat industry today can be traced back to decisions made in the late 1990s. Without betraying confidences of the day, I was privy to the discussions around the time of the acrimonious and protracted PPCS situation with Richmond. I suggest Alliance would have had the confidence, based on known sector ownership, to acquire AFFCO. Had Richmond, led by Sam Robinson as chairman and John Loughlin as chief

executive, not led and promoted the resistance to the PPCS acquisition of the NZ Meat Producer Board’s shareholding (for their own reasons) we might well have a very different industry ownership structure, even collaborative and largely farmer-owned model. But we don’t. We should reflect on who had most to do with that. To be clear, I am in no way suggesting the subsequent reactions were the best decisions. So, I now observe the governance appointments to the new SFF joint-venture board – does that stand for Shanghai Fern Farms yet? My beef is around integrity of governance and conflicts of interest – matters of principle. Shanghai Maling has appointed Robinson as its representative to the board, as opposed to being appointed from a skill-based perspective. Robinson and I have previously crossed swords. As chairman of AgResearch he appointed Loughlin to the AgResearch board.

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Given Robinson’s leadership of AgResearch I am very concerned for the future of the Silver Fern Farms’ national office in Dunedin and the retention of the quality staff they currently employ. What, you may say? Well, sorry Rob (Hewett), look in the mirror and you will see a laser on your forehead as Hawke’s Bay finally retaliates and Robinson takes the chair as the Shanghai Maling “representative”. The one blessing that might occur, is Robinson, as representative of his Chinese masters, overseeing the adoption of the old Chinese “one policy” and have Silver Fern Farms implement a single livestock procurement pricing model and stop the pricing differentiation between Central Otago and South Canterbury along with the North Island versus South Island differential. Now, that would be a very Merry Christmas. Keith Cooper Middlemarch

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

My issue was that Loughlin was a meat company director at the time and was being appointed to an organisation targeting a range of meat companies, giving rise to the obvious perception or reality of issues of director conflict (remember one cannot delete what has been said at a board meeting or read in other board papers as hard as one might try). It was at this point Silver Fern Farms advised it would not use AgResearch. This situation has now recurred with Robinson being on the AgResearch and Silver Fern Farms boards, possibly to Silver Fern Farms’ advantage this time. Robinson had shared his views with me over the acrimonious period of the PPCS/Richmond situation, around Dunedin being the wrong place for a national company, challenges around attracting being limited and the inconvenience to international customers. This is consistent with AgResearch’s recent abandonment of Invermay in Dunedin.

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NEW year has come with a new set of challenges for farmers and while many of them come from beyond the farmgate and, indeed, from beyond our borders that doesn’t mean farmers should do nothing about them and apply pressure where necessary to gain traction for their cause. All in the agricultural sector know farmers are doing all they can on the land to improve efficiency, productivity and profit by using better genetics, precision agriculture and new technology, whether that be in their management systems or in farm practice. However, the bigger issues encompassing the sector are not going away. This year will see much uncertainty as Donald Trump settles in as American president and the Europeans try to sort out the post-Brexit free-for-all. There is also an unknown quantity in China in terms of its demand for dairy, meat and wool – all sectors that could do with some good news to improve confidence and bring some stability. The big issue looming for the year is the increasing trend for countries to find non-tariff barriers to protect their farmers from imports. It’s a major issue, especially for a country that has championed free trade for three decades. Those barriers combined with import and export subsidies make life much harder for Kiwi farmers. The industry must keep the pressure on politicians and industry groups, both here and abroad, to be unrelenting in their pursuit of a level playing field. The win at the World Trade Organisation against Indonesia shows just how big the stakes are but also that New Zealand can win. There is talk more such cases should be made but also a warning a scatter-gun approach might do more harm than good. However, this and other tools as well as diplomacy should be used to show the world that though NZ is small it won’t be pushed around and will stick up for itself.

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Opinion

18 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

Politicians, cats and canaries THERE were a lot of contenders and some exciting new categories in the Farmers Weekly Emmies 2016. Quote of the Year West Coast MP and Labour primary industry spokesman Damien O’Connor when asked for his opinion on the Labour-Greens marriage. “The Greens are like a canary in a coal mine, good for warning about issues.” Then came the punch line. “You wouldn’t want a canary running the mine.” Well said sir. Quote of the Year 2 Prime Minister Bill English insisting he hadn’t demoted Judith Collins, who lost key portfolios and cascaded down the cabinet rankings. Unbelievable. Ridiculous Waste of Time and Money, (WOFTAM) To a cat called Mordecai that wanted to stay in a tree but instead its owners insisted it was rescued. It involved the Fire Service, whose officer fell out of the tree, the ambulance service and a rescue helicopter – for a cat. Two points, the sights you see when you don’t have a rifle and I’ve never seen a dead cat up a tree. The WOFTAM 2 Former Prime Minister John Key for his stupid and ridiculous, egodriven waste of money on the flag referendum. Proud to be a Kiwi The Government for having the cojones to sponsor the United Nations resolution opposing the illegal Israeli colonisation

of the Palestine West Bank that was passed with one abstention. Well done. It did take courage especially as Foreign Affairs Minister Murray McCully suffered an abusive phone call from the Israeli PM telling him the resolution amounted to a “declaration of war”. Interestingly the Australians claimed they wouldn’t have voted for the resolution, which is unsurprising considering their human rights record. The NZ Jews also supported their Israeli colleagues’ illegal antics. Goering Jackboot Parliamentary Services staff who censored a Labour MP’s email. That really did happen in NZ in 2016. For the record, I don’t believe Parliamentary Services would do anything without political sanction. Business Person of the Year Steven Joyce. His Government inherited the vibrant jewel in the crown of state-owned enterprises, Solid Energy in 2008, finally bankrupting it with 10 times the 2008 debt just four years later. Has an after-politics career with the NZ Initiative. Unbelievable Meanness ACC for refusing a soldier with post-traumatic stress disorder any compensation. The soldier who’d experienced an horrific tour of Afghanistan had major issues. Who would serve for their country with an ACC behaving like that? The good news is that the soldier took ACC to court and won. The bad news is that ACC will wear this award with pride.

Alternative View

Alan Emerson

Ridiculously Stupid Auckland Council which spent $500,000 on a new slogan. The slogan, The Place Desired by Many, wasn’t worth $2. Next time they decide to change their image in Auckland they’d get a better result by putting some cash on the bar of the Tinui Pub. Flat Earth Society The Ashburton District Council. On one hand they allowed a foreign company to take water for free so they could sell it overseas and on the other they insisted that the good citizens of Mayfield drank treated water from a stock race. Totally Out of Touch Former Prime Minister John Key for claiming we need migrants as “some Kiwis are lazy and on drugs”. He needs to get out of central Auckland and meet real people. Political Correctness Gone Mad The Marlborough Council for insisting organisers of a quilting convention serve “substantial food” if they wanted to provide a glass of local wine. Nibbles and cheese and biscuits wouldn’t cut it. This was after the participants were told they had to

GONE BUT NOT FORGOTTEN: Former Prime Minister John Key features prominently in the Farmers Weekly Emmies.

get electrical certificates for their sewing machines, a truly shocking state of affairs. Born to Fail Our education system for teaching our 10-year-olds to be the worst at maths in the Englishspeaking world with a similar result for science. It is an absolute indictment of our education system and will cost NZ dearly in the future. More Money Than Sense Former Food Safety Minister Jo Goodhew who flew to Brisbane for the Australia-NZ Forum on Food Regulation to discuss mandatory palm oil labelling. They couldn’t make a decision so appointed a sub-committee to investigate. What a criminal waste of money. We won’t introduce country of origin labelling for food products or carry sugar warnings but we’ll investigate labelling palm oil.

Snout in the Trough Speaker David Carter who proudly announced a $100 million new building to house MPs and staff. The Government showed total incompetence when it came to fixing our housing crisis but can throw $100m at a building for just 120 privileged MP’s and their hangers-on. Dollars to donuts the building will come in well over the price tag. The money would be better spent elsewhere. Dollar Each Way The Police for blaming motorists for the high holiday road toll. If the road toll dropped it would be due to good policing.

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

Celebrity death watch the thing for 2017 A NEW year full of promise and hope or maybe one of uncertainty and anxiety after the cards we were dealt last year? The best show in town, which we all have ringside seats to, will be watching the Trump presidency unfold. I’m over the shock and dismay and now quite interested to see what actually happens. Interested might be an understatement; fascinated is a better descriptor. The show starts the end of next week with his inauguration in Washington. Presidents Obama, Bush junior, Clinton and Carter will be there despite not voting for him but Bush senior won’t be going. And like a trooper, Hillary will be there to stand by her man. He’s had a bit of trouble gathering the musical talent for the event given the antipathy those in show business have shown towards him. Elton John, Celine Dion, Garth Brooks and rock band KISS have all declined invitations to perform along with

From the Ridge

Steve Wyn-Harris

a good number of others. British singer Rebecca Ferguson said she would but only if she can sing Strange Fruit. It’s a fantastic song from the 1930s protesting against American racism sung by Billie Holliday and I’d love to see it performed at this event, adding extra irony as if any were needed but I suspect the organisers will decline her offer. However, there will be many other than me just busting to see the Mormon Tabernacle Choir perform but without those members who don’t fancy the idea. And the Radio City Rockettes could be better than expected.

GONE: Zsa Zsa Gabor was one of the celebrities who died in 2016.

Also heading to Washington, apparently, will be some 200,000 protestors. The man might be better than most are expecting. He has already shown what he says has little to do with what he does. But the position of president of the United States requires delicate diplomacy of the very highest order and that might be his and

everyone else’s undoing. He has not shown a light touch. We have just seen the Indonesian military cease all activity with the Aussies over a perceived slight from a mere note on a noticeboard spotted by one of their solders. Perhaps he’ll be a target for some nut job but the Secret Service kept Obama alive in a

country where a lot of folk weren’t so happy about him either. And Pence could actually be a worse proposition anyway. Another thing to watch out for in 2017 is all the people you have heard of who will end up dead. Perhaps we will be as incredulous as during 2016 when celebrity after celebrity popped their clogs – Bowie, Prince, Carrie Fisher, Debbie Reynolds, Zsa Zsa Gabor, George Martin and Leonard Cohen to name a few. The latter four were well into their 80s so keep an eye on other old folk you have heard of. Nowadays, with the culture of celebrity and all sorts of media reporting on them, you will know of thousands if not tens of thousands so steel yourself for further bad news. What should be more surprising are folk like Keith Richards, David Crosby, Hugh Hefner, Jack Nicholson and Ozzy Osbourne still here and showing a misspent youth is not always the route to an early grave.

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

Making a dollar getting harder WHEN sheep and beef farmers grumpily ponder their forecast returns for 2016-17 they might be able to take some comfort from the precarious state of farmers in Europe, particularly in Britain where they face even more uncertainty of income. Private Eye’s Bio-Waste Spreader column contrasts the rhetoric of the Environment Secretary Andrea Leadsom saying farm subsidies must be abolished post-Brexit with a report by her own ministry, the Department of Environment, Food and Rural Affairs (Defra), which found British farmers would be unable to keep going without them. In the 2014-15 year dairy farms were the most profitable averaging £12,700, whereas cropping farms made £100, lowland livestock farms (most like our sheep and beef) lost £10,900 and grain growers did even worse. Those profits or losses came before farmers paid themselves any wages or drawings. The only thing keeping them afloat is the average European Union subsidy of £25,000 which Leadsom would like to get rid of. Apparently, one solution suggested by Farms Minister George Eustace would be to pay something that looks remarkably like the Single Farm Payment, which applies across the EU and which anti-EU Tories like Leadsom and Eustace have been rubbishing for years. Subsidies make up an average of 25% of farm revenue across the EU while in Norway and Switzerland farmers receive government assistance of more than twice that amount. In Canada farmers receive almost 20% of their revenue from subsidies and even in the United States they make up 10%. In contrast it appears New Zealand farmers going cold turkey

Meaty Matters

Allan Barber

over 30 years ago have done something all other agricultural producing nations have found impossible. That might be cold comfort for sheep and beef farmers tired of seeing their profits decline year on year but the fact remains they have been profitable every year, even marginally in 2007-08, which was at a 50-year low. Conversely in 2011-12 average farm profit was $131,100, similar to 2001-02 but 10 years between such highs is clearly unsatisfactory. This sort of trend produces land use changes as landowners try to find the option producing the best returns. But there doesn’t seem to be any clues in the rest of the world about how to avoid the commodity trap and achieve consistently high returns. London market intelligence firm Euromonitor International reports global meat consumption rose 2% in 2015 because of increased consumption in emerging markets but the main area of growth was in chicken and pork with the Middle East and Africa and Asia Pacific being the only regions to post an increase in beef and veal consumption. Consumption in North America declined 3.1% and in Latin America by 3.7%. All meat consumption in Western Europe declined with beef and veal coming down by 1% while in the US pork rose by 8% and chicken by 5% as consumers

CONTRADICTORY: British Environment Secretary Andrea Leadsom is at odds with her own ministry over the removal of farm subsidies.

driven by dietary concerns chased leaner meats. It is difficult to fathom how NZ agricultural producers in general and, more specifically, red meat producers will be able to buck global trends driven by many factors including regional population growth, health and diet, growth of convenience foods, relative economic prosperity and future technological developments in protein production. As an exporting country NZ needs to be acutely aware of what global consumers actually want their food to deliver, how that is changing and how quickly. What is certain is the increasing importance of maintaining or improving our environmental performance as a means of underpinning our brand reputation. Food provenance has become a critical success factor, particularly in traditional, developed markets. It is no longer enough to rely on

NZ’s slightly ragged claim to be 100% pure but we must actually demonstrate the truth of such a claim and build a brand story around it. In a world that might be retreating from the removal of trade barriers, it will be essential to improve our reputation for product quality at every stage of the value chain. With all due respect to the dairy industry’s efforts to introduce stringent environmental standards, it doesn’t appear to be winning the public relations battle with some commentators increasingly gaining air time to criticise water quality. This battle must be won if NZ is to build a brand story based on quality of production, environmental performance and provenance. In a world where synthetic proteins will be able to simulate the taste and texture of meat, it won’t be enough to supply undifferentiated beef and lamb

and expect to receive a premium price for it. To satisfy the demands of the wealthiest 1% of the world’s population it will be essential to provide a differentiated food experience targeted at the precise needs of particular market segments. However, these markets must be carefully developed before farmers can expect to be rewarded with a premium for what they produce, unless they meet a tightly defined specification for a product that can be marketed directly to an end consumer willing to pay more than usual for it. As is evident from the incomes earned by United Kingdom farmers before subsidies, there is no easy route to higher levels of profitability.

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

LETTERS

Meat companies can fix the taste issue

I AM writing around this topic again because I read another article on taste research, presumably this one was put out by Headwaters. Headwaters is essentially an entity that breeds composite sheep, a cross between Romney, Texel, Finn and Perendale breeds as stated in the article. As I understand it, its rams are sold to shareholder farmers of the entity. I am unaware whether this breed is now what is considered stabilised or not. By this I mean whether they still introduce outside purebreds eg a Romney ram. If not, it is stabilised and no additional hybrid vigour is being introduced. I read the article and again it repeats the importance of polyunsaturated intramuscular fat and omega-3 fatty acids being key factors in succulent tasty lamb.

I am certainly not saying this is not correct but I do think you will find that if they have 30,000 lambs meeting such criteria then there will be millions of other lambs around the country that would also fulfil such criteria. If what they are doing is indeed the benchmark, why isn’t Alliance rolling this out for all its suppliers, given the suggestion there might be a premium for good tasting lamb one day – wow, what a radical idea that is, a day all of us are looking forward to. There are many things that go into taste. I understand, for example, that Alliance acknowledges that if the meat yield gets too high then the eating quality of such a lamb seriously diminishes. Similarly, others would argue that very fast-growing lambs are also not that tasty because such animals lack a covering of

fat, which does seem at odds with what was written in the Headwaters article. I’d love to see the data on this. Generally, as with most things, there is balance to be struck between meat yield and growth. It’s a rarity to find an animal high on both. I have stated this before. Historically, if you asked someone considered a stockman and one who likes to eat decent lamb or mutton, then almost every time the answer will be the best eating lamb is either a Southdown or Merino cross lamb. The explanation being that both of these breeds have very fine wool and as such that translates into fine textured meat that is succulent and very tasty. When is a company like Alliance actually going to fund some research to verify whether this is true. If, indeed, it is true then we

already have established breeds that will provide the consumer with a very enjoyable lamb eating experience. I almost always only ever eat Southdown cross mutton or lamb and I have never ever had a visitor not blown away by how nice it was. It would be good to know if this could be done on a national basis. The comments in this Headwaters article regarding fat, namely the focus on moving away from lean meat and having some fat cover on your ewe flock, is certainly not something unique to Headwaters. Most breeders worth their salt today are focusing on this, indeed even SIL (Sheep Improvement) have acknowledged that rewarding animals with no fat with high EBVs is not right and results in a sheep that you don’t want. There are many breeders who

have tried to keep a balance between growth and doing ability (yes, fat). Condition scoring your ewes regularly and culling those hard doing ewes is one way that every farmer in the country can easily improve this aspect of our sheep. I do think that one of the quickest ways to improve the taste of lamb, apart from all the research that many groups and breeders are doing (not just Headwaters), would be for meat companies to quite simply pay a premium for those lambs that are ready to kill, ie they are thriving and in good order and they have some fat cover as opposed to so many lambs that are killed on weight alone but are hard and extremely lean. Who wants to eat that? Ike Williams Waidale Rams

LARGE SCALE EASY CONTOURED FARMING PLATFORM

Waihue Road, Dargaville

This landmark property contains approximately 416ha (subject to final survey) of superior soil types, 3km from the main service centre and with a proven history of bull farming, cropping, grazing, finishing and dairy support. Never before offered for sale, the "Northern Wairoa Flax Company" has been in our Vendor’s ownership since the mid 1940’s when it was renown as the key supplier of flax rope and hemp. This property now boasts in excess of 330ha of flat to easy rolling highly fertile soil types which produce high tonnage of grain maize and is also utilised as intensive dairy support. As a further demonstration of its versatile nature the property has a past history as an intensive bull farm, finishing 1,000 Friesian bullocks per year to median carcass weights of 320kg. Benefitted by a great location, good water supply, fertile soil types, extensive subdivision and a good range of farm buildings and improvements, this property will impress. Offering an elevated 1970’s five bedroom home, this property is a working farm that is not overcapitalised by excess buildings. With all capital costs met, all that is required is for you to determine if its best suited as dairy support, dairy conversion, and beef or cropping.

Tenders Close 2pm, Fri 3 Feb 2017

Not to be overlooked, so call today for a viewing. View the video here https://vimeo.com/195730894

www.bayleys.co.nz

84 Walton Street, Whangarei (will not be sold prior)

View phone for viewing times www.bayleys.co.nz/1020039

Catherine Stewart

Tony Grindle

M 027 356 5031 B 0800 422 959

M 021 432 308 B 0800 80 20 40

catherine.stewart@bayleys.co.nz

tony.grindle@bayleys.co.nz

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

Real Estate

farmersweekly.co.nz/realestate 0800 85 25 80

NE W

LI ST IN G

THE NEW ZEALAND FARMERS WEEKLY â&#x20AC;&#x201C; January 9, 2017

IRRIGATED SCALE AT $25KG/MS

Tasman

SHERWOOD FOREST

Holme Station

Fern Flat Road, Murchison

For Sale $6,850,000 +GST (if any) View by appointment

1201 Pareora River Road

Deadline Sale

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

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

1pm, Wed 8 Feb 2017

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

www.bayleys.co.nz/4131616

A practical well designed rural homestead with modern open plan

providing supplement and winter grazing. 44 ASHB shed, auto cup removers, in-shed feed system, new effluent system recently installed. Good fertiliser and regrassing history. Well supported with numerous sheds and outbuildings including three dwellings. Located within close proximity to Murchison and several service amenities, approximately 1 Â˝ hour commute to Nelson.

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

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

living, commanding views over manicured lawns to "Sherwood Forest". The large master bedroom occupies the western wing, a

Noel May

Leeon Johnston

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

M 021 460 294 leeon.johnston@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

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

Nick Young

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

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

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

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

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

upgraded. This property is within the proposed Hunter Downs Irrigation Scheme. Around 200 walnut trees have been planted.

All companies within this composite are Members of Bayleys Realty Group

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

www.bayleys.co.nz

214 hectares For Sale www.nzr.nz/W014

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

RURAL rural@propertybrokers.co.nz 0800 FOR LAND

Property Brokers Limited Licensed under the Real Estate Agents Act 2008

Flat and tidy 12 ha lifestyle block

Home, lake, stables - 10 ha lifestyle

WEB ID MTL53361 TURAKINA 1433b State Highway 3 (Blk 2) View By Appointment Located on SH3 in Turakina this tidy 12 ha (stfs) block of flat Rangitikei land is set well back off the road in a lovely setting and features a three bedroom cottage. Fenced into 8 paddocks with a laneway system giving access to most paddocks, there is scope for a range of farming options. Rangitikei has a very temperate climate, strong economy and some of the finest schools and education facilities catering to all levels. Also available is the adjoining 10 ha property, refer to the listing Richard White MTL53359 on our website. Mobile 027 442 6171 • Three bedroom cottage Office 06 327 0070 • 12 ha (stfs) flat land Home 06 342 3702 richardw@propertybrokers.co.nz • Good location

BY NEGOTIATION

WEB ID MTL53359 TURAKINA 1433b State Highway 3 (Blk 1) View By Appointment This is your chance to secure this highly specked 10 ha (stfs) property. Packed with features including a private lake, stabling for 32 horses as well as support buildings. The four bedroom homestead dates back to the early 1900's, has recently been reroofed and is set in mature garden surroundings. Adjacent to the Stables is an equestrian arena and 2 round pens. The property would have appeal to horse enthusiasts, but has multiple use options such as calf rearing, or perhaps a storage facility. Richard White There is also a decommissioned 6 stand cowshed.

BY NEGOTIATION

Mobile 027 442 6171 Office 06 327 0070 Home 06 342 3702 richardw@propertybrokers.co.nz

4 1

Size and scope

WEB ID DR53092

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

www.propertybrokers.co.nz

AUCTION

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

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

5 1

THE NEW ZEALAND FARMERS WEEKLY – January 9, 2017

Real Estate

farmersweekly.co.nz/realestate 0800 85 25 80

SOUTHLAND

Riverton, 521 Orepuki Riverton Highway

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

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

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

Stock and Fonterra shares available at valuation.

Murray Jackson P 03 214 4080 M 021 754 417 E murray@harcourtsinv.co.nz

HOLMWOOD REAL ESTATE Licensed Agent REAA 2008

Invercargill

0085132

185x130.71 Hillcote Forest

FOR SALE HILLCOTE FOREST KANAKANIA ROAD, Gisborne

GISBORNE - CUTOVER LAND CLOSE TO PORT! Hillcote Forest offers a unique opportunity to secure 318ha of second rotation cutover ‘P89’ forestry land. The existing crop harvest is expected to be finished within 18 to 24 months. The land is located 49km north-west of Gisborne in a proven high growth area with options including replanting to grow another productive crop, and benefiting from the demand for carbon or exploring the options of a large scale Manuka plantation.

318ha freehold land

263ha net stock area

49km to port

Excellent infrastructure in place

Contact me today for a full information memorandum. TENDERS CLOSE Friday 3 February 2017 at 4.00pm WARWICK SEARLE 021 362 778

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

WAITAHINGA | 1371 Rangitatatau East Road, Paparangi This attractive 5000 su hill country breeding unit is superbly located only 25 mins from Wanganui that possesses beautiful big views towards the coast and beyond. Contour consists of predominantly medium to steeper hill country along with approx. 100 ha of undulating cultivatable country. Features include excellent abundant natural water, large seams of metal shell rock ideal for tracking and top conventional fencing throughout. Infrastructure includes a 5-stand wool shed / covered yards, cattle yards and a 1950´s 3-bedroom home. Open days 16 Dec 2016 at 1pm and 13th Jan 2017 at 1pm. Report at 1pm with your own 4x4 bike and helmet.

LK0085011

Gravity water to all 60 paddocks and subdivided by 2 -wire electrics.

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

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – January 9, 2017

RURAL | LIFESTYLE | RESIDENTIAL

Licenced under REAA 2008

pggwre.co.nz

New Zealand's leading rural real estate company TENDER

EXCEPTIONAL DAIRY FARM

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 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 two-cup cow shed • Property would suit calf rearing, cattle trading and winter finishing. Has grown lucerne and green feed

www.pggwre.co.nz ID: WPK25137

farmersweekly.co.nz

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

•

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

LK0085525

•

Web Ref SWI1763

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

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

Licensed under REAA 2008

TENDER

Plus GST (if any) (Unless Sold Prior) Closes 3.00pm, Thursday, 16 February PGGWRE, 12 Takapau Road, Waipukurau

Doug Harvey B 06 858 6069 M 027 262 6153

pggwre.co.nz

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

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SOUTHERN WIDE REAL ESTATE

RURAL | LIFESTYLE | RESIDENTIAL

Licenced under REAA 2008

AUCTION

Dairy Farm/Support Block

Putaruru

• 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? www.pggwre.co.nz ID: PUT25167

AUCTION (Unless Sold Prior) 11:00am, Thursday, 9 February, NI Kindergarten Conference Centre, 6 Glenshea Street, Putaruru OPEN DAY 10:00-11:00am, Thursday, 12, 19, 26 January, 2 February, 1190 LAKE ARAPUNI ROAD

Richard Leach B 07 882 1485 M 027 472 7785

AUCTION

NEW LISTING

Kaiwaiwai Runoff - 27.7ha

South Wairarapa

Dairy Farm With Options

Central Southland

This fertile 27.7ha runoff, faithfully farmed since the early 1970´s, comes to market for genuine sale. Set up for dairy support, options also include cropping, supplement production or lifestyle farming. Consented for irrigation, fenced into 15 paddocks and metalled laneway, great flexibility here for a range of enterprises. Good quality soils, top fertiliser history and careful drainage lines. Half round hay barn and cattle yards. Overall, this well located rural block offers an enviable range of options, including purchase of lifestyle homes on 3370m2 or 8500m2 sections.

AUCTION

• Well set up 256.2367ha dairy unit with excellent infrastructure, 14km from Winton • 50 bail rotary dairy shed with all the bells and whistles • Good calf rearing facilities including Lely Robotic feed systems • 2016/17 season estimating 275,000kg MS from 580 cows • Consent for 750 cows, expires 2022 • Four good family sized homes on the property • Option to purchase additional 160ha run-off, 3km from milking platform

$10.5M

www.pggwre.co.nz ID: MAS25091

Plus GST (if any) (Unless Sold Prior) Three lots for sale, 11.00am, Thursday, 2 February South Wairarapa Working Men’s Club, Main Street, Greytown

John Murray B 06 377 5181 M 027 493 3759 H 06 372 5717

www.pggwre.co.nz ID: INV25015

Plus GST (if any)

Ian Russell AREINZ B 03 211 3125 M 027 478 6517 H 03 217 6100

pggwre.co.nz

Employment

Classifieds

0085309

185x130.71 Scholarship 2017

PROGRAMME 2017

Applications are Open

ATTENTION FARMERS

DOGS FOR SALE

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

YOUNG HEADING and Huntaways. Top working bloodlines. View our website www.ringwaykennels.co.nz Join us on Facebook: Working dogs New Zealand. Phone 027 248 7704.

ANIMAL HEALTH

FORTY WORKING DOGS $1000-$2500. Ship NZ Wide. 07 315 5553. Mike Hughes.

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

for our 2017 Scholarship Programme

ANIMAL HANDLING

PGG Wrightson is New Zealand’s largest nationwide provider of products and services to the rural sector.

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

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.

PGG Wrightson Real Estate Scholarship Programme offers: · Competitive remuneration for the scholarship period · All course and licensing expenses paid during the six month scholarship term · 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!

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

We are looking for highly-motivated

DOGS WANTED

WORKING DOGS. 5 year old Huntaway. 3 YEAR old Huntaway AND 12 month old Heading dog. Phone 027 305 3006. Wairarapa. 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). HEAD AND HUNT pups, proven cross, money back guarantee, $450. Phone 07 312 4762.

DOGS WANTED CA$H BUYER, QUICK $ALE! No one pays more! 07 315 5553. Mike Hughes.

12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195. HEADING, HUNTAWAY, handy, backing dogs or bitches, 2-6 years. Top money paid. Phone Ginger Timms 03 202 5590 or 027 289 7615.

FERTILISER

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

FORESTRY WANTED

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

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.

FARM MAPPING

LIVESTOCK FOR SALE

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

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

STOCK FEED

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

Applications close 4pm, 13 February 2017.

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

LK0084844©

To find out more and apply, visit pggwre.co.nz/careers and follow the links. Licensed REAA 2008

National Livestock Account Manager

Phone Matt 06 376 3900

welcome

DAIRY OPERATIONS MANAGER

INFORM – EXCHANGE – GROW

• Fully autonomous robotic milking platform

Looking to take your media sales career further?

• Leadership & communication

The grass is greener over here. Trust us.

• South West Sydney

A unique opportunity has arisen to manage the 350-head dairy herd based on year-round calving at Sydney University’s Corstorphine Farm, Cobbitty. The role is responsible for the day to day management of the herd, operating & maintaining a 24 stand fully Autonomous Robotic Milking platform, and providing livestock as required to support the University’s commitment to research & teaching.

We think there’s something magical about the land. And so do you. So when an opportunity comes along where you can blend your knowledge of livestock with your media nous, passion for new technology and knack for sales, you know this is one worth grabbing by the horns. We are NZX Agri. We are New Zealand’s leading specialist provider and trusted source of independent agribusiness information, news and data insights across both the print and online realms. Through our content, we assist businesses with a stake in NZ agriculture to make intelligent business decisions, whether behind the farm gate or in the boardroom. We’re currently on the lookout for a talented livestock media sales professional to join our team. And it sounds like you’d be a perfect fit.

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

WORK WANTED ARE YOU LOOKING for a reliable, conscientious, experienced shepherdgeneral for your finishing block? We are a semiretired farming couple looking for a position on a smaller block. Own dogs/ kennels etc. North Rodney - Kaipara - Whangarei area. Work for rent could apply. Phone 09 423 9066.

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

Reporting to the General Manager Farm Assets and Operations and liaising with the faculty of Science, the dairy provides a context platform for current research into voluntary cow traffic through milking platforms as well as providing livestock for teaching veterinary and agricultural students. The position will require a manager with practical dairy skills, strategic vision, strong work ethic, well developed leadership skills and empathy towards research activities conducted in a farm environment. The position will also suit somebody with a thirst for knowledge around data capture and the analysing of results.

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

To be successful in this exciting but demanding position, you will have:

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

•

Extensive knowledge & experience in dairy operations and farm management (including knowledge and commitment to current WHS policies and procedures)

•

Sound economic based knowledge of pasture production and experience in profitable milk production using a grass based and supplementary feeding system

•

Qualifications in Agricultural Science, Rural Business Management or equivalent (ideally including further qualifications in AI)

•

Demonstrated capacity to think flexibly with strong leadership and mentoring qualities

•

Highly developed communications and strategic planning skills

•

Sound computer literacy with proven farm budgeting (farm revenue, expenditure and capital)

•

Well-developed reporting skills

• Nurture your client relationships with care and attention to detail • Identify opportunities for growth and develop relationships to facilitate these • Achieve sales targets and manage your revenue pipeline You’ll love that sense of autonomy as you hit the road to visit clients - (full NZ Drivers License required). In doing so, your knowledge of the livestock industry will also come in handy: you’ll want to know your Herefords from your Hampshires! And your previous media sales experience and confidence with computers will both stand you in excellent stead, as will your willingness to learn new skills. In exchange for your hard work, you’ll be well rewarded: a competitive salary awaits, along with the full support of a fantastic team. Joining us means plenty of career development opportunities when you’re feeling especially motivated. LK00885357©

Sound great? Then don’t delay - apply now! To apply for this job go to: http://talentpropellerjobs.co.nz & enter ref code: 3237184.

GOATS WANTED

FERAL GOATS WANTED. All head counted, payment on pick-up, pick-up within 24hours. Prices based on works schedule. Experienced musterers available. Phone Bill and Vicky Le Feuvre 07 893 8916.

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

MAKURI LIME

individuals that are looking to step-up their

FOR SALE

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.

This is a rare employment opportunity as it combines both dairy farm management and research at the forefront of industry. A remuneration package commensurate with the skills and experience required will be on offer for the successful candidate. To enquire please call Dave Compton or Mick Hay on 07 959 1868 or apply via www.rimfireresources.com.au

BRISBANE

SYDNEY

MELBOURNE

SEE PAGE 5 HEAD OF ASSET DEVELOPMENT AND SERVICE DELIVERY ROLE

SEE PAGE 8 FARM MANAGER ROLE

BW 143/50 PW 161/67 RA 100% Livestock 0800 85 25 80 (in top 10 All Breeds for NZ )

Livestock • •

Tuesday 17th January at 12pm

A/C Invernia Holdings Georgetown, North Otago

1900 1½-year steers 100 2½-year steers Large lines of traditionally bred hill country cattle

Wednesday February 8th 2017 at 1:30pm Comprising approximately: 800 Friesian bull calves 60 Friesian 18-month bulls 20 Friesian 18-month steers

Annual Lines: Roto Partnership Aranui Station Matawhitia Station The Shades Inzevar Mt Zion I&C Frecklington Marahau Farm

All calves dehorned, drenched and weaned off nurse cows in December. TB Status C10 1% Rebate to outside companies Further inquiries: Barry Fox 0274 393 317, a/h 03 434 3018 Mark Yeates 0275 904 217, a/h 03 434 7980 PGG Wrightson Oamaru

Buy and sell livestock at

IN MILK DAIRY HERD FOR SALE

800 2th Rom Ewes For Sale 200 2th Coop FE Ewes 400 4th Rom Ewes Outstanding genetics & potential to be and one Jersey weaner bulls, 50, all recorded G3 of 2000 5yr Rom Ewes profiled, ave BW 106 the countries leading suppliers of Genetics to 100 6th Rom Ewes 1500 MA Rom Ewes Wanted the dairy industry for years to come. Full details Annual drafts included from: RF & KM Smith, Autumn calving Jersey or Crossbred cows or available. Couldrey Farms Ltd, Man O’War Farm Ltd, heifers HD Orton Ltd, Farfields Farm, Ngati Paoa Trust, Oldbury Farms Ltd, Ashmole Farms Ltd, Enquiries to the sole marketing agents: Boscabel Downs Ltd, S Fleming All enquiries to: For further details contact: Graeme Chitty 0275Robinson 904826 Brian Stephen Hickey 0274 041288

Brian Robinson

BRLL Phone: 027 241 0051 PH: 0272 410051Selwyn or 07Donald 8583132

LK0085373©

LK0085457©

Tuesday 24th January at 12 noon 400 heifers Enquiries: Harvey Falloon 0274 429 955

Many cows contracted to LIC for 2011 matings Due to calve from 16-7-12, 6.5 weeks AB Jersey and Kiwi cross • Estimated to be 420 cows after non Spring calving portion of herd Tuakau Ewe Fair pregnant, culls, older cows & 5% rejection Mid February Delivery Production last season 347kgs ms/cow, Friday 13th January 2017 • 12 noon start 1000kgs ms/ha, onCrossrolling to all steeper 250 Jersey and 550 Jersey, G3 profiled, 6000 Ewes Comprising: recorded, due to calve from 18/7/17, 280 head contoured farm, no meal, palm kernel or maize 750 genuine capital stock Coopworth ewes mated to LIC sexed Crossbred semen, balance to with 22yrs of breeding to Nikau Coopworth fed. LIC PSS, will be scanned in-calf. Rams, 3yr, 4yr, 5yr ewes – Nikau Rams FE • Young replacement stock also available Gold Asking $1800 + GST

24th ANNUAL ON FARM WEANED CALF AUCTION

FORDELL CATTLE FAIRS

LK0085356©

THE NEW ZEALAND FARMERS WEEKLY – January 9, 2017

Phone: 0274 378 375 Luke Gilbert Phone: 0278 492 112

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

Buy and sell livestock at

Fairlea Texels

PINE PARK

Meaty Muscle Makes Money

Terminals

TEXEL IN YOUR EWES GIVES YOU A DAM GOOD ADVANTAGE

CONTACT: EDWARD SHERRIFF 06 327 6591

• Minimal metabolic diseases • Good foragers with an excellent feed conversion efficiency • They require less kg drymatter for every kg of bodyweight • Dag free • Excellent mothering ability • Hardy ewes, adaptable to a variety of feed and climatic conditions • Great temperament • Strong maternal instinct • High bulk wool • Easy to manage

SILVER SHEEP EAST FRIESIAN Est 1999 • Flock #62

LIVESTOCK ADVERTISING Have ewe heard the most successful place to advertise your livestock is in The NZ Farmers Weekly?

www.carrfieldslivestock.co.nz

• 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!

480 KiwiX Herd BW93 PW115 RA98% DTC 26/7 to KiwiX 6 weeks AI, tailed Frsn, Low SCC, 440ms, Top Herd. $2100 Max Hutchings 027 538 4961 297 Frsn/FrsnX (20% Jrsy) BW41 PW61 DTC 23/7 to Frsn 4 wks AI, tailed Hereford, Low SCC, 450 ms/cow, Hilly Farm $1950. Val Ditchfield 027 573 7480 I/C Heifers 129 KiwiX I/C Heifers BW115 PW127 RA98% DTC 18/7 Nat Mated to Jrsy bull, Well grown capital stock, SPS. $1700 Max Hutchings 027 538 4961 AD0085502©

LK0083844©

Simply the best genetics

www.nzsheep.co.nz/texel

To advertise Phone 0800 85 25 80

*Suftex first-cross rams also available

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

SALE TALK A cattle buyer was in Mexico looking for cattle and stopped at a cantina for refreshment and dinner. While sipping his tequila, he noticed a sizzling, scrumptious-looking platter being served at the next table. It look good and the aroma was wonderful, so he asked the waiter, “What is that you just served that guy over there?” The waiter replied, “Ah, Señor, those are the bull’s testicles from the bullfight.… A delicacy!” The cattle buyer said, “Sounds good. Bring me an order!” The waiter replied, “So sorry, Señor. There is only one serving per day because there is only one bullfight each day. Come back tomorrow and we will save you this delicacy!” He returned the next evening and was served the delicacy of the day. After taking a few bites and inspecting the contents of his platter, he called the waiter over and said, “These are delicious, but a lot smaller than the ones you served yesterday! Why is that?” The waiter shrugged his shoulders and replied, “Si, Señor, sometimes the bull wins”.

LK0084964©

• 700 Ewes • SIL Recorded • Carcass Scanned •

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

150 Frsn/FrsnX I/C Heifers BW105 PW108 DTC 3/7 2 Rnds AI to Frsn/FrsnX, tailed Jrsy,390kgs+ mid Dec $1900 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

AD0085501©

Please contact Simon Carthew 027 226 2262

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

NZ CHEVIOT The magic behind the Perendale USE A REGISTERED CHEVIOT RAM FOR: • Better constitution, mobility and longevity • Less labour and costs • High worm tolerance • Potential for heavy carcase weights with top grades • Unrivalled for hogget lambing survival • More and better quality stock to sell

For further information contact the secretary Phone 03 318 8260 • jcpascoe@xtra.co.nz See our website www.cheviotsheepnz.com

LK0084972©

Available early Feb 2017 (price negotiable)

LK0085355©

Top Coopworth and East Friesian genetics speciﬁcally bred for milking.

AD0085527©

500 Coopworth/East Friesian Ewe Lambs for sale

MARKET SNAPSHOT

IN PARTNERSHIP WITH

Dairy

Grain & Feed

MILK PRICE FORECAST ($/KGMS) 2016-17

AGRIHQ 2016-17

6.00

6.37

AS OF 18/11/2016

AS OF 05/01/2017

Last week

Prior week

Last year

NI lamb (17kg)

5.15

5.30

5.10

Milling Wheat

327

350

NI mutton (20kg)

2.90

2.60

Feed Wheat

283

307

SI lamb (17kg)

5.20

5.30

5.10

Feed Barley

279

290

SI mutton (20kg)

2.85

2.50

PKE

233

225

Export markets (NZ$/kg) 7.69

7.74

7.34

Canterbury (NZ$/t)

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

Maize Grain

367

355

PKE

236

232

223

Last week

Prior week

Last year

Wheat - Nearest

214

203

266

Corn - Nearest

199

194

220

APW Wheat

293

365

ASW Wheat

275

350

2500

Feed Wheat

269

323

2000

Feed Barley

233

317

1500 Mar 16 Jun 16 Sep 16 C2 Fonterra WMP

PKE (US$/t) 104

104

WMP GDT PRICES AND NZX FUTURES

North Island 17kg lamb 7.0

* 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. Prices are accurate as of December 23.

INTERNATIONAL

6.5

5.0 4.5

3000

Jun 17 Dec 16 Mar 17 NZX WMP Futures

Ex-Malaysia

6.0

5005.0 400

4.5

300

4.0 Oct Oct

Last price*

Last week

Prior week

Last year

NZ average (NZ$/t) Prior week

vs 4 weeks ago

Urea

460

575

310

330

783

784

875

WMP

3240

3525

3540

Super

SMP

2625

2730

2680

DAP

AMF

5330

5350

5380

Butter

4300

4400

US$/t

3500

Dec 14

Dec 15

Feed barley

3250 3000

Dec 13

Feb

Mar

Apr

Latest price

May

Jun

Jul

Ravensdown sells old site Ravensdown has sold the site of its fertiliser store as work continues on a massive, $30-million facility on nearby land. “It’s not so much the end of an era but the start of a new chapter for Ravensdown in the Taranaki, Western North Island regional manager Mike Davey, who has been with the co-op for more than 50 years, said. His father also worked at the New Plymouth site. “Lots of local farmers are interested in how the new store being built next door is going to help them. “It’s exciting for New Plymouth too because our rebuild programme freed up the existing land for other developers. “The sale of the current site is an important milestone in our project as it helps to fund the new 14ha store next door. “We’re happy with the outcome – there was no shortage of interest which is an indicator that the Taranaki economy is trucking along. “There’s obviously a lot of interest in what the current site is going to be used for but the commercial agreement means that this can’t be disclosed yet,” he said.

S&P/FW PRIMARY SECTOR

9307

S&P/FW AG EQUITY

10899

S&P/NZX 50 INDEX

6976

S&P/NZX 10 INDEX

7075

PKE spot

Top 10 by Market Cap Company

4 w eeks ago

Dec 16

YTD High

5.76

5.77

YTD Low 4.20

Spark New Zealand Limited

3.25

3.54

2.64

Meridian Energy Limited Fletcher Building Limited Fisher & Paykel Healthcare Corporation Limited Ryman Healthcare Limited Mercury NZ Limited (NS) Contact Energy Limited Air New Zealand Limited (NS) Vector Limited

2.30 7.37

2.55 9.01

2.04 6.71

8.56

8.90

5.82

8.60 2.89 4.79 2.98 3.13

8.60 3.56 7.30 3.02 3.45

7.05 2.38 4.54 2.35 2.80

Listed Agri Shares

5pm, close of market, Thursday

Company

YTD High

YTD Low

The a2 Milk Company Limited

2.300

2.610

1.050

Cavalier Corporation Limited

0.810

0.950

0.520

Comvita Limited

9.280

13.000

8.150

Delegat Group Limited

5.800

6.400

5.500

Foley Family Wines Limited

1.500

1.700

1.300

Fonterra Shareholders' Fund (NS)

5.940

6.120

5.310

Livestock Improvement Corporation Ltd (NS)

2.600

4.100

2.100

New Zealand King Salmon Investments Ltd

1.180

1.190

1.050

PGG Wrightson Limited

0.465

0.540

0.380

Sanford Limited (NS)

6.670

6.800

5.400

Scales Corporation Limited

3.500

3.550

2.160

SeaDragon Limited

0.009

0.016

0.008

Seeka Limited

4.500

4.850

3.280

Tegel Group Holdings Limited

1.510

1.800

1.440

S&P/FW Primary Sector

9307

9326

9307

S&P/FW Agriculture Equity

10899

10958

10899

S&P/NZX 50 Index

6976

6974

S&P/NZX 10 Index

7075

7079

7075

Jun

Last yr

Aug

This yr

29 micron

6.65

6.80

9.15

35 micron

3.90

4.00

5.70

39 micron

3.90

5.54

35 micron wool price

5.5

NZ venison 60kg stag

500 4.5 400 300 3.5 Oct Oct

Dec Dec 5‐yr ave

Auckland International Airport Limited

Apr

Last year

$/kg

NZ$/t

150 Dec 12

Apr

Prior week

600

250

3750

Feb

Last week

6.5

350

4000

Feb

(NZ$/kg)

450

WMP FUTURES - VS FOUR WEEKS AGO

Dec

WOOL

CANTERBURY FEED PRICES

* price as at close of business on Thursday

Dec

5‐yr ave

c/k kg (net)

Nearby contract

NZ venison 60kg stag

6005.5

FERTILISER NZX DAIRY FUTURES (US$/T)

South Island 1 7kg lamb

6.5

$/kg

3500

6.0 5.5

CBOT futures (NZ$/t)

Australia (NZ$/t)

4000

Last year

Prices are accurate as of December 23.

$/kg

Nov 16 AgriHQ Seasonal

Last week Prior week

UK CKT lamb leg

Waikato (NZ$/t)

Aug 16 AgriHQ Spot Fonterra forecast

Slaughter price (NZ$/kg)

c/kkg (net)

$/kgMS

MILK PRICE COMPARISON

US$/t

SHEEP MEAT

DOMESTIC

FONTERRA 2016-17

8 7 6 5 4 3 May 16

Sheep

Feb Feb

Apr Apr Last yr

JunJun

AugAug This yr

Dollar Watch ONE of the biggest United This Prior Last States banks says investors NZD vs week week year should not be too sure of USD 0.7040 0.7069 0.6695 the US dollar rising with EUR 0.6754 0.6642 0.6195 expected higher interest rates. AUD 0.9560 0.9543 0.9412 “Our guess is the GBP 0.5656 0.5623 0.4497 dollar is likely to surprise Correct as of 9am last Friday the consensus this year by moving lower,” Wells Fargo capital management unit chief investment strategist Jim Paulsen said in a recent commentary. Most New Zealand foreign exchange analysts are among those expecting the big dollar to rise, including against the kiwi dollar, as the Federal Reserve makes a projected two or three interest rate rises through this year. Generally, those rising rates would be expected to attract foreign buying of the greenback, pushing it higher. However, Paulsen says the major influence will be the reason for higher interest rates, higher inflation expectations rather than the actual rate rises. His charts show that several times since the early 1970s the rise in rates has been accompanied by a lower US dollar. “Higher inflation erodes the real purchasing power value of the US dollar. Often, when the Fed raises rates, because inflation accelerates, the real rate of interest declines, causing the dollar to weaken.” The latest major surge in the US dollar, back in 2014, happened at a time when interest rates were unchanged but there was a near-halving in inflation expectations to about 1.5%. He expects inflation to average 3% over this year. Alan Williams

Markets

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

NI SLAUGHTER LAMB

NI SLAUGHTER BULL

MIXED AGE PRIME EWES AT

($/KG)

PRIME LAMBS AT COALGATE

($/HD)

5.00

5.15

$69-$82.50

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

Last week

Prior week

Last year

NI Steer (300kg)

5.30

5.40

5.20

NI Bull (300kg)

5.00

5.15

5.20

NI Cow (200kg)

3.85

4.00

SI Steer (300kg)

5.20

SI Bull (300kg)

4.70

4.60

SI Cow (200kg)

3.80

3.65

US imported 95CL bull

6.03

6.16

6.11

US domestic 90CL cow

5.95

5.92

6.38

$82-$108

high lights

$890-$935

$60-$77

1yr beef heifers, 315330kg, at Frankton

Medium and good quality store lambs at Coalgate

Quiet start to 2017

Export markets (NZ$/kg)

Prices are accurate as of December 23.

North Island steer (300kg)

6.5 $/kg

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

NZ venison 60kg stag

5.5

600 c/k kg (net)

$/kg

5.0 500

OUT OF LUCK: Graeme Sievers drove from Ohau near Levin to attend Friday’s Feilding sale hoping to buy some weaner calves but left empty handed, saying there was little on offer that appealed.

4.5 400 4.0 300 3.5 Oct Oct

Dec Feb Dec Feb 5‐yr ave

Apr Apr Last yr

Jun Jun

Aug Aug This yr

VENISON Slaughter price (NZ$/kg)

Last week Prior week

Last year

NI Stag (60kg)

8.10

7.10

NI Hind (50kg)

8.00

7.00

SI Stag (60kg)

8.10

7.10

SI Hind (50kg)

8.00

7.00

New Zealand venison (60kg Stag)

9.5

c/k kg (net) $/kg

8.5

NZ venison 60kg stag

600 7.5 500

6.5 400

300

5.5

Oct Oct

Dec Dec 5‐yr ave

Feb Feb

Apr Apr Last yr

Jun Jun

Aug Aug This yr

More photos: farmersweekly.co.nz

ith the working week starting last Wednesday, some sale yards were in action, though most sales were small. Bucking the trend was Te Kuiti, which held cattle fairs, and Feilding, where 9000 lambs and 1000 cattle were sold last Friday. POVERTY BAY POVERTY BAY A QUIET start to the New Year at MATAWHERO on Friday saw a total of 420 sheep offered, with the feature being above-market prices for store ewes. Most of the yarding was store lambs, with 250 on the books, and while most were lighter types, good demand for the quality lines saw prices slightly up on last year. Light ewe lambs traded at $33-$57,

with similar males making $34-$57. Top price was $72 for a small line of mixed sex. Prime lamb numbers were low at 41, with most males, earning $90-$108, and a small second cut at $72-$77. The feature of the sale was the store ewe offering, with the two top lines making $70-$71.75, with prices similar to a small prime offering at $70-$82. For full reports on these sales visit agrihq.co.nz/farmer WAIKATO Even a combined prime and store cattle sale did not draw out many numbers at FRANKTON last Wednesday, with about 90 cattle in total. A large portion of the offering was cows in the prime and boner pens,

and four prime Hereford, 550kg, sold for $1.90/kg, with medium types trading at $1.70-$1.78/kg. Lighter dairy and crossbred lines returned $1.46-$1.60/kg. The only other section of significance was the 18-month heifers and exotic-cross lines made up the bulk of the 24 offered. All lines weighed 315-360kg and made $2.72$2.83/kg. Two- year Hereford-Friesian heifers, 525kg, sold for $1354 at $2.58/kg. For full reports on these sales visit agrihq.co.nz/farmer TARANAKI TARANAKI Ex-service bulls featured at STRATFORD last Wednesday, with 200

Continued page 30

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30 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

BUSY MAN: PGG Wrightson agent Phil Transom checks out some of the lambs on offer at Friday’s Feilding sale having spent the morning at the cattle auction. He described the cattle market as very strong, driven by demand from throughout the central North Island. More photos: farmersweekly.co.nz

purchased to fatten, while 18-month, 300-350kg, sold to the dairy farms for $850-$900. MANAWATU MANAWATU Weaners made up the lion’s share of the RONGOTEA sale on Wednesday, and no sale for two weeks only helped to strengthen the demand as buyers look to restock. Numbers were low for the first sale of the year, with around 120 offered, of which 90 were found in the weaner pens. Calves were noted for their

absence, which is unusual given the time of year, but good grass growth over the break meant plenty of feed at home for them, New Zealand Farmers Livestock agent Darryl Harwood reported. Older cattle numbers were limited, but 2-year Angus bulls featured, and at 537-547kg, sold for $2.78/kg, with Friesian, 615kg, at $2.59/kg, and crossbred, 475kg, $2.46/kg. In the heifer pens, HerefordFriesian, 464kg, and the better crossbred, 355kg, made $2.60$2.65/kg, with a lighter crossbred

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Hereford bulls made $1750, $3.72/ kg, but these will become service bulls in the dairy industry. Overall the meat bulls like Friesians eased. Eighteen-month heifers firmed like their brothers. Useful exoticcross heifers were in demand with 20 South Devon-cross making up to $1240, $2.98/kg, and the traditionally bred heifers hovered around the $3/kg level. Weaner bulls and heifers in low numbers closed the day. Cattle (1,027): steers; 1yr, 261-567 kg, $820-$1755; bulls; 2yr, 456-656 kg, $2.37-$2.84; 1yr, 232-476 kg, $590-$1750; Weaner, 100-140kg, $305-$540; heifers; 2yr, 436-537 kg, $2.64-$2.85; 1yr, 251-416 kg, $850-$1240; Weaner, 106-118 kg, $455-$535; cows, 546 kg, $2.10. CANTERBURY CANTERBURY COALGATE kicked off the year with a respectable yarding of sheep last Thursday, led by just over 1000 prime ewes. Prices were steady, and top ewes made $80$110, medium $60-$78 and light, $50-$58. Nearly 1000 lambs were also offered, though were split between the prime and store pens. Prime lamb prices eased in line with schedules, and most traded at $82-$108. Quality was mixed in the store lamb pens, though prices were steady. Top lambs sold for $70$77, medium $60-$67, and light, $38-$59. The cattle pens were quiet with ex-service and bull calves the main features, though prime heifers stood out. A small offering of heifers sold over a tight range at $2.76-$2.78/ kg for 466-514kg, while most of the older bulls, 442-487kg, made $2.50-$2.55/kg. Friesian bull calves dominated the store pens, with 200 on offer. Most were from one property and were light at 79-86kg, but prices lifted to $430-$450. A heavier line at 106kg sold for $490, while Murray-Grey steers, 72-85kg, fetched $430.

For full reports on these sales visit agrihq.co.nz/farmer

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offered. The rest of the pens were empty, with good rain through wider Taranaki alleviating any pressure to offload. The heavier bulls sold above schedule by 10-15 cents per kilogram, with 3-year and older beef bulls making $2.80-$2.85/kg, $1700-$2100. Lighter Hereford, 450-550kg, were picked up to use in the dairy herds, and as such were making $3-$3.40/kg, $1600-$1700, with very active bidding from the bench. Two-year Jersey bulls were

line, 338kg, earning $2.23/kg. A small offering of beef-cross boner cows, 400kg, sold for $1.80/kg. In the yearling pens Friesian bulls, 345kg, and Jersey bulls, 412kg, both made $900, while Hereford-Friesian heifers, 255kg, returned $650. Autumn-born crossbred steers, 213kg, sold for $600, and bulls, 216kg, $700. Weaner prices lifted slightly on the last sale of 2016, and HerefordFriesian steers, 116-119kg, sold for $605, while heifers of similar breeding, 82-138kg, fetched $425$530. Simmental-cross, 107kg, returned $490. Bulls were the main feature and Friesian, 100-110kg, made $420-$460, and HerefordFriesian and Angus-cross, 104105kg, $565. Sheep numbers were low and consisted of ewes with lambs-atfoot at $49, and mixed age ewes, $64. A small offering of lambs sold for $71 for mixed sex, with ram lambs earning $57. All bar 200 of the total yarding were store lambs, and prices reflected strong demand, as fatteners look to restock after the break. Cryptorchid lambs traded at $51-$85, with most in the higher end of the price range. Ewe lambs sold for $53-$78, with mixed sex trading at $44-$83. It was an unseasonal cool day for the first store sale at FEILDING last Friday, with only a moderately sized yarding of lambs and cattle on offer. Most attending the lamb sale were just observing trends which were definitely easing but perhaps not as much as could be expected. Shorn lambs clearly sold at a premium to the woolly lambs, and most of the pens contained male lambs which lifted the overall average weight. Top price was $84 for 122 shorn cryptorchid lambs with good bloom, having been weaned six weeks. Top lambs sold for $72-$84, medium $53-$72, and light, $39-$60. Top young, exotic-bred steers were the highlight of the cattle sale with 13 Simmental-cross selling for $1755, $3.09/kg, in a section that generally firmed. There were no older steers or weaner steers offered at all. Bulls struggled although 10

Markets

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 9, 2017

Fonterra pushes milk message Hugh Stringleman hugh.stringleman@nzx.com DAIRY’S nutritional rehabilitation was promoted to New Zealand consumers for seven days early in the New Year by Fonterra, drawing on its own scientific knowledge. A Fresh Start with Dairy campaign ran from January 1 to 7 on social media, in cafes and in print because consumers were interested in making positive lifestyle choices at this time of the year, the co-operative said. Global consumer and food service chief operating officer Jacqueline Chow said dairy products were among the most important sources of protein and energy and an integral part of the diets of six billion people worldwide, yet 800 million people still did not get enough food to live a healthy life. “Despite being part of the solution, here at home dairy’s image is being chipped away by dietary fads and special interest groups.”

Throughout the first week in January Fonterra’s campaign promoted the goodness of dairy, she said. It tackled some urban myths like dairy foods making people fat, but was mostly aimed at getting New Zealanders to enjoy more of the world’s best dairy foods, made in their own back yard. Fonterra was not promoting its brands but the benefits of dairy consumption. “By defending dairy from its detractors, our competitors may benefit. “But if we don’t champion dairy in NZ, nobody will,” Chow said in a message to Fonterra farmers. The campaign had several components, including requests for consumers to make a fresh start with dairy products, abandon the anti-dairy myths, take in more dairy calcium and protein, restore butter use in cooking and learn about dairy’s suitability for modern food trends. It addressed some of the

MESSAGE: The Fonterra posters promoting dairy products in New Zealand.

commonly perceived downsides like asthma, lactose intolerance, weight problems and the risk of heart disease. More than 60 scientific papers were cited on the Fonterra website, for readers who wanted to know more. For many years Fonterra had shared such nutritional facts with

its international customers and now saw the need to do so in NZ. Chow said the Fresh Start with Dairy campaign followed on from 4:31AM, the Book of Commitments, the Trusted Goodness seal launch and the Purest Dairy television campaign. All of the promotional initiatives

over the past 12 months had begun to improve Fonterra’s reputation at home, she said. Fonterra commissioned quarterly public opinion surveys, alongside those of its farmershareholders, which included questions about brand awareness and business name recognition and reputation.

Atkins Ranch gets GM-free tick in US Richard Rennie richard.rennie@nzx.com A KIWI lamb company has gone beyond simply “clean and green” to establish a solid foothold in the lucrative North American premium red meat market. Atkins Ranch, known in New Zealand until last year as Lean Meats, has become the first lamb exporter to gain full non GMO accreditation in the United States, through that country’s non-GMO project. The non-GMO project was a non profit organisation created in 2007 when two grocery stores started the initiative. It now had 2800 verified brands representing nearly 40,000 products and more than US$19 billion in sales. It offered third-party, independent verification for non GMO foods and products. Atkins Ranch was supplied by 100 farmers in NZ, selling lamb and lamb products largely through the Whole Foods Markets through the US and Canada. Supply chain manager Pat Maher said market sophistication had moved up a level around the world, with consumers no longer settling for “clean and green” as a selling proposition. “Being clean and green is just expected by consumers and you have to go to the next level of expectation. “For NZ commercial farming systems to go organic is pretty hard to do, so we have gone to the next level which is non-GMO. “We are also working towards animal welfare standards that put us at the forefront of how consumers expect their animals to be treated in their lifetimes.” That was validated by the company also being the first in the world to gain Global

BONA FIDE: Stock manager Gerald Cushing on Charlie Pattison’s Waiwhero Station in Hawke’s Bay, which is an Atkins Ranch supplier and a GAP Step 4 accredited supplier to Atkins Ranch.

Animal Partnership (GAP) Step 4 accreditation. That laid out specific standards and expectations for how the animals were treated at each stage of their lifespan, including requirements they be only naturally mated and not spend time in cages or confinement. “That is driven by consumers wanting assurances that lambs have been treated well.” Waipari Station, one of Atkins Ranch suppliers, was the first farm off the ranks to receive the accreditation, with 60 farms targeted to be compliant by year’s end. Maher said the debate over

whether regions should be able to declare themselves GE-free raised some important issues for NZ to address in terms of production versus value expectations for exported food. “There is a certain level of argument there that GM will increase production from behind the farmgate. “But this raises the question about whether we want to increase the volume we sell as commodities or do we want to increase the value, when consumers are asking and are prepared to pay for GM-free products.” Lean Meats adopted its US

brand Atkins Ranch as the company name following the death of founder John Atkins in 2015. The word “ranch” had greater resonance with US consumers, compared to “farm”, which Maher said most associate with hog operations. Supply into the premium market was mainly via 280 Whole Foods Markets, outlets Maher described as “Nosh on steroids”. “They aim to provide the full shopping experience with the full range of food products that have an emphasis on being healthy, organic, well produced and very high quality.”

He said “grass-fed” was becoming increasingly in vogue in the US. “The nutritional value of grass-fed produce is particularly important now.” The company was watching with interest results from the Omega lamb Headwaters project, which was exploring potential improved health qualities of grass-fed lamb including lower levels of saturated fat, higher polyunsaturated fats and healthy omega-3 oils. The Primary Growth Partnership had $25 million invested by the Government and industry and ran until 2022.

Markets

32 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – Janaury 9, 2017 WAIKATO PALM KERNEL

35 MICRON WOOL

LIGHT STORE LAMBS AT MATAWHERO

($/T)

($/KG)

FRIESIAN BULL CALVES, 80-85KG, AT COALGATE

($/HD)

236

3.90

$50-$59

$430-$450

high lights

New plan ready to go Alan Williams alan.williams@nzx.com FARMERS want Beef + Lamb NZ to step up its market development work and chairman James Parsons says a start is under way. The new plan would involve more development work in key, mature markets alongside the export companies, Parsons said. Promotions would be made only if companies were prepared to follow through with products and had already helped to develop the strategy. The initiatives came at a time when the latest survey of sheep and beef farm confidence showed the sector went into Christmas with confidence at just 32%, down from just over 40% previously and reflecting meat and wool prices and weather patterns. Farmers whose income was largely from sheep had significantly less confidence than the overall figure, dragged up by still-confident beef producers with a positive impact, especially in Northland and Waikato, Parsons said. He took heart from an increase in farmer satisfaction with B+LNZ, up 7% to 53%, indicating the industry-good agency was doing better and improved communications meant farmers also better understood the work it was doing. However, 79% of farmers said promoting NZ beef and lamb in international markets was a very important activity but only 37% thought it was

READY: Beef + Lamb New Zealand’s new market strategy is ready to go, chairman James Parsons says. doing a good job in that area. “As farmers, we’re never generally satisfied with prices and if I was doing the survey I would say that too,” was Parsons’ response. “It’s understandable. We can do better and that’s the reason for our new market development strategy.” Historically, B+LNZ had worked to create new markets but once they were established the development had been left to the companies. That had been changing in recent years and now the cross-sector collaboration was strongly supported by both farmer and exporter views sought by the group. There was already a

successful example of that approach in the German lamb market, where B+LNZ had led in-store presentations, partnering exporters and German importers, Parsons said. As a result, it had built up from low volumes to being a significant market for NZ and other countries had adopted the same marketing approach. Another potential opportunity was in promoting NZ grass-fed beef in the United States, both for prime cuts and in the manufacturing market, and there could also be gains there for grassfed lambs because lamb consumption per person was very low.

Any grass-fed promotion project was “not locked and loaded” yet and it was too early to give details on other plans being considered. The work was all designed to add confidence to the red meat sector because that was the key to farmers investing, he said. There had also been a lot of work around that in the Red Meat Profit Partnership (RMPP) project, which had found high-performing farmers retained their confidence regardless of product price levels. One of the aims of RMPP was to understand how that was achieved and transfer the knowledge to other farmers.

$70-$85

$2.76-$2.78/kg

Good Cryptorchid lambs at Dannevirke

Prime heifers, 466514kg, at Coalgate

Calm before the storm STOCK sales for 2017 have kicked off quietly with many farmers using the short week following New Year celebrations to extend their holiday. Suz Bremner For farmers, of course, there AgriHQ Analyst is always something to be done onfarm but selling stock was not a priority last week and the sales that have been held have been very small. Perhaps everyone is still reeling from the fact that 2016 has indeed finished and 2017 is upon us. Many areas gained some rain on paddocks over the break and, coupled with mild temperatures, the quality of feed has improved, which has taken off any pressure to sell. Buyers looking to restock will be chomping at the bit to do so and the first few weeks should see strong results posted, with young cattle prices, in particular, expected to continue their strong run. Past the first few weeks though, the markets will be weather driven and if more areas dry out like Hawke’s Bay has, that will change the store market. Time will tell. Hold onto your hats for week two of the year though because this is when all the action starts. All yards will be back into the swing of regular sales and extras including ewe fairs and onfarm auctions also fill up the calendar across the country. Truckloads of ewes will be heading into North Island sale yards, including Stortford Lodge, Dannevirke, Matawhero and Tuakau, plus some of the smaller yards in Waikato and at Taumarunui. A few onfarm lamb sales are also calendared in the North Island though most of this action will be in the South Island, with many salegoers heading into the hills to buy lambs. The rest of January will be busy with more cattle and ewe fairs on the cards across the country, which means my holiday is well and truly over. suz.bremner@nzx.com

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