Farmers Weekly NZ August 20 2018 by AgriHQ

3 The man at the top Vol 17 No 33, August 20, 2018

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Law to get tough Neal Wallace

neal.wallace@globalhq.co.nz

RIMARY Industries Ministry officers now have greater search and surveillance powers than police, lawyers say. The new law passed under urgency by Parliament strengthens the National Animal Identification and Tracking Act and allows officials to enter farms unannounced without a warrant to search for and seize items. Penalties under the changes vary from infringement fees of $400 up to fines of $200,000 and five years in jail. Ashburton law firm Tavendale and Partners partner Kirsten Maclean said the powers contradict claims MPI wants to work with farmers over the Mycoplasma bovis outbreak. The extent of MPI’s search and surveillance powers over farmers exceeds what police have over suspected drug dealers but, more significantly, add to the stress many farmers are already under dealing with the disease. “It flies in the face of all the messages that MPI wants to work alongside farmers to eradicate the disease.” The Government said the changes are needed because not all farmers comply with Nait and to assist with eradication but Maclean said the best hope of achieving that is to work collaboratively alongside farmers. “I do think this kind of law, introduced without consultation or being heard by a select

committee, will mean farmers see themselves below drug dealers.” Maclean said her firm is working with 30 farmers facing M bovis controls and while each case is different the farmers face stress and uncertainty. Her firm has avoided publicity but its lawyers are so aghast at the passing of legislation Maclean contacted Farmers Weekly to voice her concern. Having up to 10 officials go onto a farm where cows are being culled is stressful for the farmers, staff and stock. But now knowing officials can go onto a farm unannounced, without a warrant and seize property heightens that anxiety and uncertainty. National Party agriculture spokesman Nathan Guy said when in opposition the current coalition Government parties opposed the search and surveillance powers they passed in to law on Thursday. While acknowledging Nait laws need improving he said Labour, NZ First and the Greens in 2012 considered the same search and surveillance powers a breach of civil liberties. Guy said they are so extensive they should have been considered by a select committee but that was rejected by the Government. National proposed an amendment that an officer needs reasonable cause to suspect non-compliance with Nait before entering a property and a curb to powers to seize property without a warrant. “Unfortunately, both of these safeguard amendments were voted down by the Government.” National eventually voted in

The extent of MPI’s search and surveillance powers over farmers exceeds what police have over suspected drug dealers. Kirsten Maclean Taverndale and Partners

ACCUSED: Biosecurity Minister Damien O’Connor has been accused of giving agriculture officials greater powers over farmers than police have to deal with drug dealers.

favour of the changes because of the importance of the issue but also because the Government agreed to report back to Parliament in 12 months on how the surveillance and search powers are administered and used. Biosecurity Minister Damien O’Connor said the M bovis

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response highlighted problems with Nait that should have been fixed years ago. The changes align the Nait Act search powers with the Search and Surveillance Act, make it clear all animal movements must be declared to Nait even if the new location is not a registered Nait location and hold to account

those who fail to declare those movements. The Government is also making M bovis a notifiable organism under the Biosecurity Act, meaning people who suspect the presence of the disease in a new location must report it to MPI. “Since getting the Nait Review in April compliance activities have been stepped up with hundreds of on-farm checks, compliance warnings, stock truck checks and 39 infringement notices – compared with one in the previous five years,” O’Connor said. The amendments were welcomed by DairyNZ and Beef + Lamb NZ. DairyNZ chief executive Dr Tim Mackle said legislated changes are clearly necessary because some farmers have not fulfilled Nait obligations. B+LNZ policy and advocacy general manager Dave Harrison said the amendments represent a good first step towards improving the Nait system while meeting calls for stronger penalties and compliance action against farmers who put the industry at risk.

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NEWS

WEATHER OVERVIEW A big low is crossing New Zealand this week and will bring rain then showers and then a colder change for some but not all. We mentioned this colder change last week and now that we’re in the new week the outlook isn’t too bad. It will be colder for some regions for a time from Tuesday to Thursday with snow on the ranges and temperatures, especially by day, being average to below average. So, a colder week on the way means a slowing down of any pasture growth. But the days are getting longer, the sunlight hours are increasing and the coming weekend is looking mostly sunny and settled with mild noreasters a week from now.

7 Dollar fall good for ag exporters The best part of the latest fall in the kiwi dollar is that it was just a kiwi event, ASB Bank rural economist Nathan Penny says. All options open for sale cash �� 10 Land loss diminishes food supply �� 12

Newsmaker ��26

Wind

Rain With such a large low rolling in across NZ this week we can expect varying wind directions, which will mean a fairly even distribution of rain across the country. Wet weather also moves up the eastern coastline. Dry late week and this weekend.

Opinion ��28

The Kidd family has expanded its farming interests in the Auckland province with the purchase of a mediumsized dairy farm and some adjacent leased land for grazing at Shelly Beach on the south Kaipara Head.

Varying wind flows over the next few days. Winds aren’t too strong this week and the directions will vary as this large low crosses NZ. Perhaps a southeast lean mid to late week before fading thanks to an incoming high. For further information on the NZX PGI visit www.agrihq.co.nz/pgi

Highlights/ Extremes

Temperature A colder week with snow on the ranges and perhaps even a few flurries down to about 300m or 400m. Air flows this week partially come from the Southern Ocean so it will be cooler. Mildest north of Waikato and Bay of Plenty.

YFC champ adds dairying venture

Pasture Growth Index Above normal Near normal Below normal

7-DAY TRENDS

New Thinking ��27

ON FARM STORY

NZX PASTURE GROWTH INDEX – Next 15 days

Not too much in the way of extreme weather this week but a few highlights. There might be a few snow flurries around Queenstown and Wanaka. Wetter weather moves up the east coast after a recent dry spell. A cooler week.

14-DAY OUTLOOK

With so much warmer-than-average weather lately plus the sun coming out, pasture growth has occurred nationwide in recent weeks. A positive winter twist. With wildfires in Canada and America and a major drought in New South Wales we’re in a bubble of good weather for pasture growth. In saying that, this week has more air from over the Southern Ocean and that means a cool-down is coming, especially in the South Island. Slower pasture growth rates this week.

SOIL MOISTURE INDEX – 17/08/2018

REGULARS Real Estate ��34-39 Employment ��40 Classifieds ��41 Livestock ��41-43 Markets ��44-48 GlobalHQ is a farming family owned business that donates 1% of advertising revenue to the Rural Support Trust. Thanks to our Farmers Weekly and Dairy Farmer advertisers this week: $858. Need help now? You can talk to someone who understands the pressures of farming by phoning your local Rural Support Trust on 0800 787 254.

Source: WeatherWatch.co.nz

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For more weather information go to farmersweekly.co.nz/weather

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News

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Fonterra pauses to take stock Hugh Stringleman hugh.stringleman@globalhq.co.nz FONTERRA dropped another bombshell with the appointment of an interim chief executive, Miles Hurrell, to take over immediately from departing Dutch dairy industry veteran Theo Spierings. The internal promotion of Hurrell came as Fonterra’s directors reconsider the company’s direction of travel and its needs in a chief executive.

Appointing a new chief executive is the most critical decision a board will make. We will take all the time we need to find the right person. John Monaghan Fonterra An external recruitment process, started in November last year, is suspended in the meantime, chairman John Monaghan said. Hurrell has the right mix of talents and experience needed at this time and he will not be paid what former chairman John

Wilson called the eye-watering salary and bonuses that Spierings received. “Miles is the right person at present and has the full endorsement of the board and myself for the role,” Monaghan said. There is no timeframe for his tenure or the re-examination of the company’s “portfolio and direction” before appointing the next chief executive. “The board agreed we would not ideally change chairman and chief executive at the same time but we have to play the cards that have been dealt. “It is a great opportunity to take stock and determine the changes that may be needed. “Appointing a new chief executive is the most critical decision a board will make. “We will take all the time we need to find the right person.” Fonterra had not “preferred” a New Zealander, as NZ First politicians suggested it should when Theo Spierings’ departure was announced. Hurrell is the right member of the senior management team to lead at this time though they all could have fulfilled the interim role and it was good that he is a Kiwi, Monaghan said. Hurrell came to Fonterra after a brief spell at the Dairy Board and training in shipping line operations. The co-operative structure

MANTRA: More than once in his first day in Fonterra’s top job interim chief executive Miles Hurrell mentioned a focus on delivering on the co-op’s promises to stakeholders.

in NZ’s biggest export industry was his attraction for staying in Fonterra and tackling jobs around the world – Europe, the United States, the Middle East, Africa and Russia. He believes a lack of formal qualifications in dairy technology will not be a hinderance because of his subsequent 18 years of Fonterra experience and the expertise of fellow managers around him in all aspects of the business. Reluctant to pick his highest priority in the new job, Hurrell nevertheless repeated several times during his first day that he will focus on “delivering on our promises” to stakeholders. The stakeholders include shareholders, unitholders, the Government and regulatory authorities, 22,000 staff members, customers and the people of New

Zealand, as the country’s biggest company. His most-recent role as head of Farm Source included many personal contacts with dairy farmers and the immediate reactions from farmers to his appointment were all positive. However, Fonterra is 95% a global business and a chief executive must spend much time working on the export markets and with overseas consumers, he said. Back home in the senior team, the head of Fonterra Brands NZ is close to being appointed and a process has begun to fill Hurrell’s former Farm Source position. Reaction to Hurrell’s appointment was along the lines of “good luck” and “give him a go” and several farmers said he has always been great to deal with. Shareholders’ Council chairman

Duncan Coull said the move is stabilising for the co-operative and he has full confidence in Hurrell. Federated Farmers vicechairman and Fonterra supplier Andrew Hoggard said the past month or even year was not an example of how a smooth transition was supposed to be. “It is rather weird and there is probably more going on that we don’t know, that has to remain in the boardroom. “That is no reflection on Miles who is a bloody good bloke and will do a good job of reconciling the co-op to its farmers.” The elements of the strategy are right but Fonterra needs to work on its execution, Hoggard said. He is looking forward to the board candidate roadshow in September to see who is standing and what they have to say about the state of the co-op.

Lamb survival is the secret Justin and Deanna McCarthy farm northwest of Taihape at Tiriraukawa. They run 2000 Wairere Romney ewes and 100 MA Angus cows.

“Ten years ago we were topping out with 120% lambing and no lambs prime off mum. Today we expect 150 to 155% survival to sale, with a weaning weight in the early thirties and up to 800 POM. This is set up by a very low 12.5% wastage from scanning. We are also mating our hoggets and lambing at 90% from mating with weaning weights similar to the MA ewes. All our ewes and hoggets are completely unshepherded. The ability of our ewes to lose weight during lambing and lactation and then bounce back always surprises me, especially at weaning, when most are back at mating weight.”

“They are such good mothers I had to get pet lambs from the neighbour”.

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News

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Don’t rob farmers, Fonterra told Hugh Stringleman hugh.stringleman@globalhq.co.nz

FIX IT: Fonterra needs to address concerns around its strategy, earnings performance and capital structure, First NZ Capital research head Arie Dekker says.

aligned with its capital constraints. Dekker has analysed and reported on Fonterra’s structure and strategy since 2011. Following Fonterra’s downgrade announcements on August 10, Forsyth Barr analyst Chelsea Leadbetter expected earnings in the 2017-18 financial year, now concluded, to be about 25c a share. She is not convinced earnings will return to normal (45-55c) this financial year so she forecast 40.5c, from which a dividend of

The solution to more profit is right under your feet. Investing in a new Tru-Test plate meter has given Otorohanga dairy farmer Carl Watkins an accurate tool to assist his grazing management. Carl is contract milking 450 cows in a family operation and recently bringing two farms together, building a new cow shed and implementing new systems meant he was looking for a way to gather information about pasture covers and feed wedges, and make the right decisions. “It means I can be as strategic as possible in feed allocation and use that information in feed budgets and forecasting how we are tracking, to stick to our spring rotation plan.” Carl purchased a Tru-Test EC-09 Plate Meter about a month ago and has already completed two fortnightly farm walks using his new tool. “It’s certainly given me growth rates. I’m trying to keep covers around 2400 heading into calving, so it’s already proving its weight in gold.” The plate meter means Carl can make decisions about where cows are heading next and feed allocation in terms of dry matter and square meters. Using information collected, he is able to predict average growth rates.

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26c could be expected. As already signalled by the company, gearing on July 31 would have been about 49%, judging by the move-of-last-resort to trim the farmgate milk price by 5c/kg milksolids. The 15c of earnings in FY18 not already paid to shareholders by way of the interim dividend will be retained profits to strengthen the balance sheet and help make that gearing lower than it would have been. Former Fonterra director

“All I have to do is concentrate on walking the paddock and read the meter at the end – it’s pretty simple. It’s given me an accurate tool for my grazing management…I have no regrets.” Like Carl, using a Tru-Test plate meter allows you to accurately measure and monitor how much grass is growing on your farm at all times, and then act decisively. This simple tool makes the job of measuring and monitoring pasture covers quick and easy – but adds significant value to your bottom line. Our plate meters enable you to monitor pasture growth, calculate pasture and dry matter. This helps you to create effective feed budgets and make decisions on-farm with confidence. Know exactly how much feed you have over your whole farm, calculate the necessary cover levels and see ahead of time when you may be running into a feed deficit or surplus. The ability to clearly see the bigger feed picture on your farm allows you to take action quickly. This means you can make decisions, whether it is offloading stock or buying in feed in a deficit, or taking advantage of an opportunity to purchase and finish extra stock in a surplus.

Fonterra needs to address concerns around its strategy, earnings performance and a capital structure. Arie Dekker First NZ Capital situations when they arrive, creating shocks to the market and farmers’ budgets. Meanwhile, Fonterra said it had reached a settlement in legal proceedings with Guiney, including meeting her costs. In March Fonterra went to the High Court to get injunctions preventing media organisations from “using, publishing or otherwise disseminating confidential information” supplied by Guiney. In return she accused the directors of defamation when sending a letter to farmers saying she had leaked and misrepresented details of board discussions. After the settlement she was delighted with the outcome. “Common sense has eventually prevailed,” she said.

our pasture management software to make feed budgeting quick, easy and accurate. For those wanting the option to integrate with other farm software, the EC-20 Plate Meter equipped with Bluetooth® is accurate and robust for measuring pasture cover in grass paddocks. Complete with Android App for easy use and data management, the App displays covers and will download paddocks and upload covers to Agrinet and FarmIQ. Created using high quality materials, our plate meters are reliable and adjustable, to suit your preferences. Talk to your trusted retailer today about the right Tru-Test plate meter for you.

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FONTERRA’S earnings performance should not be supported by underpayment of its milk price to farmers, First NZ Capital research head Arie Dekker believes. The milk price is an important reference point for the whole dairy industry. For the second time since a capital restructure in 2012 Fonterra’s directors over-ruled the milk price setting mechanism to take money back from farmers before finalising the 2018 accounts. Dekker agreed with Fonterra’s intention of supporting the balance sheet but said that objective could have been achieved by a signal that no full year FY18 dividend would be paid and more earnings would be retained by the company in FY19. “Fonterra needs to address concerns around its strategy, earnings performance and a capital structure,” he said. Two things are important in Fonterra’s capital structure: Farmers should be provided with more flexibility on sharing up, given the pressures on milk supply, and Fonterra needs a strategy

Leonie Guiney said it is vital the co-operative maintains a strong balance sheet and the downgrade to milk price and dividend could have been avoided had the board acted earlier. Guiney said a prudent move would have been to suspend the 10c a share half-year dividend payment to fund the $400 million write-down in the value of Beingmate. But it had been forced to act by a potential risk to its credit rating, implied in the reference by Fonterra chairman John Monaghan to the need to maintain access to competitive interest rates. She said it showed the Fonterra board had delayed dealing with and managing negative news and the result was the milk price was being used to protect the balance sheet. “The decision at half-year was the issue. “As a dairy farmer I agree that looking after the balance sheet is the number one priority. It is disappointing the way it is being done.” Guiney was emphatic NZ needs Fonterra to be strong but its governance culture is hindering that, especially what she sees as an inability to deal with negative

News

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Farmers’ get out of jail card is gone Neal Wallace neal.wallace@globalhq.co.nz BANKS are no longer treating rising land prices as farming’s get out of jail free card and have started putting greater emphasis on cashflow when assessing loan applications. Dairy appears to be bearing the brunt of the change in emphasis as banks respond to volatile global prices, uncertainty about the impact of environmental compliance, controls over land use change, Mycoplasma bovis and wanting borrowers to shoulder more of the risk of the $40 billion of dairy debt. While the policy affects all rural borrowers there is little doubt banks are focused on dairy and sending a message they are no longer confident the buffer of a 20-year run of appreciating land values will continue, Massey University management school lecturer James Lockhart said. “Effectively, that is how the sector has been banked for the last 15 to 20 years.” The change in lending criteria effectively shifts risk from balance sheets to profit and loss accounts, which necessitates strong cashflow. The dairy sector is entering a more volatile cycle requiring robust farm balance sheets, ASB rural manager Richard Hegan says. Until the global financial crisis of 2008-09 food prices were relatively stable and volatility was low so farmers could carry more

debt. But since then there has been a significant dairy correction and ASB is talking to farmers about having balance sheet strength applicable to their business. Lockhart believes the uncertainty will encourage banks to require faster debt repayment from dairy farmers, as has been the case from the sheep and beef sector. “A lot of this is good because it has taken out a massive amount of speculation from the dairy industry from the last 10 years in particular.” It also shows banks are questioning whether the dairy industry can withstand another price shock. ANZ commercial and agri managing director Mark Hiddleston described appreciating land value as farming’s get out of jail free card but it is no longer guaranteed. Bank staff are looking more closely at how to generate profitable returns from farms and less on the underlying asset value. “That was a very old way of thinking and we’ve not been lending on that for some time.” Westpac agri head Mark Steed said volatile dairy prices in the last five years eroded farmer equity, which had been the foundation of the farm lending model. Add into the mix the impact and costs of recent floods and droughts, new environmental controls and now M bovis and

NOT US: Rabobank has never relied on land values when assessing loan applications, country manager Hayley Gourley says.

some farmers are making interestonly repayments. “It is not that we have changed our appetite or what we underwrite but we are looking for farmers to replenish their equity and get in a better shape after the dairy downturn,” Steed said.

This is good because it has taken out a massive amount of speculation from the dairy industry. James Lockhart Massey University Chartered Accountants rural advisory committee chairwoman Trudi Ballantyne said members had noted the change in emphasis. It is being applied to sheep, beef and dairy farmers and horticulturists and while lenders

maintain equity parameters, cashflow has taken on greater significance. ASB rural manager Richard Hegan said the global financial crisis then the dairy price crash showed the sector faced greater volatility and farmers had responded by generating better cashflow. “We see a need for farmers to think about the composition of their balance sheet and how to create resilience so they can deal with the next downturn.” Land price appreciation cannot be relied on to the degree it has been. “I get the sense large-scale land development has also slowed and farmers are looking at how to maximise cashflow from assets and how that cashflow supports borrowing,” Hegan said. ANZ commercial and agri managing director Mark Hiddleston said the impact of policies to restrict overseas owners and investors has not been fully tested.

He doesn’t think the land market is about to have a major price correction but values appear to have plateaued as farmers waited to see the impact of changes in banking emphasis, pending environmental restrictions, volatile milk prices and Mycoplasma bovis. Westpac agri head Mark Steed agreed the underlying value of farmland has not been tested following moves to restrict foreign owners and investors. Rabobank country banking general manager Hayley Gourley said the bank has not significantly changed its lending focus, which has always been on cashflow and business viability. Since the global financial crisis it has introduced “more extensive sensitising” of budgets looking at risk analysis, viability and collateral or security. BNZ agribusiness head Colin Mansbridge said cashflow or the ability to repay debt is the most important consideration in lending.

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News

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Dollar fall good for ag exporters Alan Williams alan.williams@globalhq.co.nz THE best part of the latest fall in the kiwi dollar is that it was just a kiwi event, ASB Bank rural economist Nathan Penny says. Other currencies didn’t fall against the US dollar at the same time, meaning overseas buyers of New Zealand’s farm exports were put in a stronger buying position. Penny compared the fall to just over US$0.65 to the fall from 0.70 in mid-June to around 0.67 in early August. That was part of a wider currency fall which had the Chinese yuan falling by a greater amount against the big dollar. Chinese consumers are big buyers of NZ farm exports, especially dairy, meat and horticulture. The yuan weakness showed up quickly in the Global Dairy Trade auctions. “We saw lower Chinese demand and prices fell about 9% in three auctions as buyers got a bit shy,” he said. “The latest fall in the dollar was because the Reserve Bank was very dovish and we notched that up on our own so that’s a good story for exporters.” Agriculture commodity prices have been buoyant but might have peaked. “They might have done their bit so the lower dollar is very timely.” The kiwi dollar has fallen more than 10% against the US dollar since mid-April. The lower exchange rate is also showing up in the high lamb prices – above $8/kg for October supply – and likely to help the beef farmgate price hold up the greater volumes of US domestic supply that is making the industry here a tad nervous. The lamb price might fall into the low $7s or high $6s range in peak season but that is still a fantastic level, he said. Sheep and beef farmers are paid as they supply stock so get a nearimmediate farmgate price benefit from the lower dollar while dairy farmers have delayed payments subject to quite long-term currency hedging.

The latest fall in the dollar was because the Reserve Bank was very dovish and we notched that up on our own so that’s a good story for exporters. Nathan Penny ASB

BOOST: With a lower dollar farmer spending might step up as the household sector slows down, ASB economist Nathan Penny says.

Penny believes Fonterra’s 201819 milk price forecast of $7/kg MS is too high because of where international prices sit – ASB’s call is $6.50 – but it will get the benefit of expected further falls in the dollar as it hedges the currency to cover forward sales. ASB was reviewing its payout forecast before the dollar’s latest fall but is comfortable with it now. A weaker Chinese yuan also has an impact on gold kiwifruit and apple returns because of the size of that market though apples are protected more by good sales in euro and yen, he said. Some of the major trading banks are reducing their dollar forecasts further after the RBNZ indicated a rise in the OCR will not happen till at least 2020, with potential for a rate cut in the short term if warranted by slow economic growth. Till a few weeks ago Westpac

strategist Imre Speizer expected the kiwi to fall to around US$0.64 about the middle of next year on higher US interest rates and currency. He now expects that point to be reached by the end of this year after the RBNZ’s dovish comments. Westpac believes the RBNZ might be a shade pessimistic – its growth expectation for the second (June) quarter is 0.5% compared to Westpac’s 1% estimate. The figure won’t be known till late September. For much of this year ASB was quite bullish on the dollar with a year-end forecast of US$0.72, more recently pushed lower to 0.68, and now under review again with Penny expecting a lower number. The most aggressive calls for a lower dollar have come from the ANZ Bank. Between its August 6 and August 13 Market Focus

reports it well and truly crunched its forecasts. The new end-of-month forecasts (with the previous numbers in brackets) are: Against the US dollar December US$0.62 (was 0.67), March to December next year 0.61 (was 0.66/0.65). Against the Australian dollar December A$0.89 (0.96), March 2019 0.87 (0.94), December 2019 0.87 (0.93). Against the Euro December €0.53 (0.57), March 2019 0.50 (0.54), December 2019 0.48 (0.51). Against sterling December £0.45 (was 0.49), March 2019 0.44 (0.47), December 2019 0.43 (0.45). Against the Yen December ¥65.10 (was 70.4), March 2019 62.2 (67.3), December 2019 58.6 (62.4). They are from the August 13 levels of: US$0.6585, A$0.9057, €0.5790, £0.5165 and ¥72.65. They are big changes with

potentially excellent farmgate price prospects though the economy would have to cope with much higher import costs. The BNZ, also in its August 13 Market Outlook, remains much less dovish. Its forecasts for December are US$0.70, A$0.93, €0.59, £0.51 and ¥77.0. For March and December next year, the respective forecasts are US$0.70 and 0.70, A$0.93 and 0.93, €0.57 and 0.54, £0.48 and 0.45 and ¥75.6 and 71.4. Low farmer confidence is in line with general business sentiment but Penny said there are good, rational reasons for this despite the good price returns – a poor winter and spring last year followed drought in many areas impacted on production, Mycoplasma bovis has been a big worry in some regions, there are compliance issues on water and environment and the US/China trade dispute. Some of those issues remain but the pointers from a good winter and prospects for spring are that production levels will be higher and there is more information on M bovis. ASB believes the sector can step up and provide some spending growth as the household sector slows down. “We’ll be watching farmer spending and investment over the next six months though it might be more for next year. “Returns are still good and the better weather and lower dollar might help lift the mood.”

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News

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

NZ holds fire on Indonesia Nigel Stirling nigel.stirling@globalhq.co.nz NEW Zealand is keeping its trade retaliation guns holstered for the time being in its billion-dollar beef dispute with Indonesia. The Government has given Indonesia until the middle of next year to implement a World Trade Organisation ruling and amend legislation used to introduce import rules previously used to block NZ beef exports. NZ and the United States first won a ruling from the WTO against the trade barriers in 2016 but it was appealed against by the Indonesians. The WTO again ruled in favour of NZ and the US in November last year but the Indonesians are still to fully comply with the decision. Now the Americans have come out all guns blazing with a request to impose US$350m of retaliatory tariffs against Indonesian exports to the US. In a filing with the WTO in Geneva last week the US said it is seeking sanctions equal to the

damage done to its own export industries from the failure to remove all the trade barriers. A spokesman for Trade Minister David Parker said the Government is still considering its options.

NZ is consulting affected export industries on those barriers still in place. David Parker Trade Minister “Indonesia has amended a number of its regulations and brought several of the WTOinconsistent trade barriers into compliance but it has not yet fully complied with all rulings of the Appellate Body. “NZ is consulting affected export industries on those barriers still in place and discussing full compliance on these remaining

barriers with Indonesia. “We are doing this in close consultation with the US.” The Meat Industry Association’s trade and economic manager Sirma Karapeeva confirmed many of the regulations estimated to have led to a billion dollars in lost sales for NZ beef exporters between 2010 and 2015 – including an outright ban on secondary cuts and offal – have been rescinded by the Indonesians. However, the legislation that spawned the illegal import rules remains in place. “Unless that legislation is amended the risk is that new trade-distorting measures could be introduced in the future.” Despite that the industry is comfortable with the Government’s decision to give Indonesia till the middle of next year to make the legislative changes needed to bring it fully into compliance with the WTO ruling, Karapeeva said. The deadline is after the country’s presidential elections early next year.

Self-sufficiency in beef has been a feature of the past two elections and is likely to be so again. “Legislative change is always a lengthy and complex procedure, even in NZ, and I suspect taking it out past the elections would be more palatable, especially given the fundamental change that is necessary.” Parker’s spokesman said Indonesia will be flouting WTO rules if it reintroduces illegal trade barriers under the legislation it had been given extra time to repeal. Under WTO rules NZ would be within its rights to follow the US and impose tariffs equal to the damage done to its exporters if Indonesia fails to carry out the court’s rulings. However, that is rare with well over 80% of rulings from the WTO to date having been complied with voluntarily without resorting to retaliatory tariffs. Since Indonesia imposed import restrictions in 2010 it has sunk from being NZ’s third largest beef market to its eighth.

NO END: Though it has made some changes Indonesia has yet to fully eliminate its bans on beef products from New Zealand.

Wine industry in case against Canada Nigel Stirling nigel.stirling@globalhq.co.nz THE wine industry is confident its views will be represented in a lawsuit against restrictions on the sale of imported wines in Canada. The United States in January last year initiated a World Trade Organisation case against the cordoning off of imported wines in grocery stores in the Canadian province of British Columbia. NZ joined subsequent talks that failed to resolve the dispute

and will now take part in an upcoming court case as a third party. NZ Winegrowers lawyer Jeffrey Clarke said the industry opposes the restrictions both in principal and because they are likely to cost exporters tens of millions of dollars a year in lost sales. “It is important to pull Canada up because as a WTO signatory we do not want to let them get away with this. “We do not want to see this as the start of conduct that is allowed to happen.” While the industry had pushed

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the Government to join the US as a co-litigant it is satisfied its views will be represented as a third party. “We have said that is fine, we are happy to provide you with all the evidence that the Australians and the Americans need. “And we are doing that.” Earlier this year Australia sought talks with Canada to resolve a wider range of restrictions on imported wine as a precursor to a possible second WTO case. NZ is also part of those consultations.

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It is one of a dozen countries joining as third parties the case being brought by the US against Canada. Chapman Tripp trade law consultant Tracey Epps said initiating a WTO case or joining as a co-litigant is more expensive than being a third party to a complaint. “Typically, countries will join as third parties when they have a systematic interest in how the provisions at issue are interpreted or a general interest in seeing a country bring its measures into line

but will look to become a cocomplainant if, in addition, they have a strong commercial or political interest in the outcome.” Epps said fresh perspectives are often brought by third parties while at other times they simply reinforce evidence presented by the litigants. Canada is the NZ wine industry’s fourth largest market with $124m of sales last year. NZ has been involved in seven WTO lawsuits as a principal complainant and a third party in 40 other cases.

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News

10 FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

All option Alan Williams alan.williams@globalhq.co.nz

TOGETHER: Though the review of PGG Wrightson hasn’t finished there is every possibility the business left after the seeds division sale will stay as one, chief executive Ian Glasson says.

EXPANDING the Go product livestock funding business is one option for PGG Wrightson directors to consider when the seeds and grain business sale proceeds are in hand. The facility is popular with farmers for buying lambs and cattle and profitable for the group but is capital intensive and capital constrained, chief executive Ian Glasson said. About $40 million is invested and there are limits on “how much we can pour in”. The working capital required is a major part of the reduced group operating cashflow for the year ended June 30, with cashflow down to $5.76 million from $20.48m a year earlier. PGW had operating earnings of $70.2m for the year, right at the top of the guidance target, well ahead of the $64.6m in 2017 and virtually equal to the record 2016 figure. That was on total revenue of $1.19 billion, up from $1.132b. Several one-off charges and higher interest and finance costs and higher depreciation and tax made a big dent in earnings, leaving an after-tax profit of $18.88m, down from $46.3m a year earlier. Glasson said the board will have several options when the proposed $421m sale of the seed businesses is settled. A substantial return of capital to shareholders is an option that has been signalled. “It’s early days and we’ll complete the sale first. “We haven’t seen the full potential of the Go business yet and we don’t know how far we can go but we don’t think it will get hugely bigger in the short term.” Go Livestock involves PGW funding lamb and beef purchases for farmers. PGW retains the title over them while they are finished on farm. The company pockets the buy and sell transaction commissions plus a margin on the holding costs while the stock are fattened. The livestock business is the biggest part of its agency division, which achieved record operating earnings (Ebitda) of $20.1m, up 12% on the strong earnings the previous year. Glasson said higher sheep prices offset a lower number of dairy transactions. The wool business had also achieved excellent results with volumes returning to more normal levels as prices started to recover from their very low base of the last couple of years. The retail and water division also recorded strong revenues and earnings with Ebitda up 30% year-on-year. Retail has been consistently good, benefiting from what Glasson said is a focus on customers. That includes technical expertise and a commitment to add value. Though operating in a challenging sector with reduced irrigation

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BLUE Sky Meats achieved first-quarter earnings not far short of the results for the previous full year. Pre-tax profit for the three months ended June 30 were $3.7 million, shareholders were told at the annual meeting in early August. Good livestock flows, an extended operating season with optimum plant use and improving margins combined to produce the good results, chief executive Todd Grave said. It was the best first-quarter earnings in 10 years. The figures compared with a full-year pre-tax profit of $3.74m for the year ended March 31. That included a one-off charge for a writedown of just over $390,000 on a property to be sold but even allowing for that the operating improvement is significant. It is made more impressive by the fact that the

News

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

ns open for sale cash development the water business provided about half the Ebitda gain as it worked hard on efficiencies. The conditional sale of the grains arm is the first outcome of the group’s strategic review, begun in October. On completion of the sale the group will have a strong rural services business with revenue of more than $800m and good profitability – Ebitda of about $35m in the latest year, with seed and grain excluded. The remaining business will include seed and grain supply to farmers as part of a distribution agreement with the division’s buyer, DLF Seeds, “Farmers won’t see much difference in the business,” Glasson said. Though the strategic review is ongoing, there is every possibility the remaining business will be kept intact. “There’s no call on that yet. The board has made no decisions. It’s a real option.” The directors are paying a reduced final dividend of 1.25c a share with full tax credits, down from 2c last year. That makes a total 3c a share for the year, more than the 2.5c earnings a share. Deputy chairman Trevor Burt said the board considered the factors affecting the after-tax profit, the underlying trading performance and the reinvestment opportunities available. With the seeds sale not expected to settle for several months, Glasson wouldn’t indicate investment options, saying they are still hypothetical. The seed business reported lower Ebitda than the previous year, with very good NZ results more than offset by lower returns after difficult autumn conditions in Australia and South Americas, both hit by drought. Those businesses are in the sale. Domestically, the business had very good sales results with a new Raphno brassica product it developed and a new plantain called Ecotain is being well received. It reduces nitrate from the animal and in the ground. Glasson took issue with what he said was misleading comment in the market that the sale of the seed business means a loss of intellectual property. Seed development was done in joint ventures with the Crown, covering grassland, endophyte and forage and royalties from overseas sales would continue flowing into NZ. They are likely to increase because of the greater ability of Danish-based DLF to sell seed into northern hemisphere markets. In the livestock business Mycoplasma bovis did not affect livestock earnings but PGW had set-up a response team to help affected clients. “It’s causing a lot of trauma to those impacted and we’re doing what we can,” Glasson said. Real estate, part of the agency division, had a weak first half but improved in the second. PGW had indicated the June 2018 after-tax profit would be lower because of the absence of

property sale gains that bolstered the 2017 result. The latest result has $8m in provisions for holiday pay entitlements to staff for previous years and unrealised foreign exchange losses as the NZ dollar fell in value, as the company warned in mid-June. The net dollar impact of just over $4m was included in the finance costs where ordinary interest costs were also about $3.45m higher on increased borrowing. Glasson said the foreign exchange losses will be recovered as overseas sale receipts come through. There were also negative fair value adjustments on investments, and depreciation was higher on increased capital expenditure. The final dividend will be paid on October 3 on shares owned on September 4.

Where the money came from PGG Wrightson Year ended June 30 (all in NZ$) Revenue

Ebitda 2018

Precision Farming

2017

NPAT

2018

2017

Agency (incl livestock)

200m

190m

20.11m 17.99m

Retail and water

606m

562m

23.8m

18.29m 13.58m 11.56m

Seeds and grain

449m

312.6m

35.6m

37.04m

Group

1.19b

1.13b

2018

2017

10.4m

16.46m

9.34m

27.16m

70.17m 64.49m 18.88m 46.31m

Notes: • Division results exclude corporate costs, which are included in Group figures. •

Ebitda = earnings before interest, tax, depreciation, and amortisation.

•

NPAT = net profit after tax.

•

2017 Group NPAT: $8.8m in property gains, $6.1m net interest/finance costs, $2m fair value gain.

•

2018 Group NPAT: $8.2m holiday pay charge, $14.1m net interest/finance costs, $3.8m fair value loss.

n Blue Sky 2017 profit was the best annual result since 2011 and allowed the Southland meat processor to resume dividends after a two-year break. Stock flows into the Morton Mains plants were strong because of good on-farm growth conditions, Grave said. The company’s marketing team was able to maximise carcase value in the market, improving margins despite lamb schedule levels being near record highs. Like any company Blue Sky is prone to ups and downs and is working hard to mitigate the effects of down-periods on trading returns. Grave has pushed Blue Sky into producing higher yields from each carcase and selling more lamb as higher-value chilled product. The company is now planning a brand-based, value-add product. Chairman Scott O’Donnell told shareholders the company is up to the big challenge of a strategy that will take time and investment to achieve.

Success. Together.

News

12 FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Land loss diminishes food supply Richard Rennie richard.rennie@globalhq.co.nz

DILEMMA: Pukekohe growers’ land is being swallowed up by housing but regional plans banning land use intensification mean they have nowhere else to go.

Report affects whole nation A REPORT on threats to Pukekohe’s market gardens has implication for the whole country and should raise eyebrows, Federated Farmers president Katie Milne says. The findings of the Deloitte report commissioned by Horticulture New Zealand are a valuable tool in NZ’s fight to maintain the ability to feed itself. It found urban sprawl is threatening to swamp the fertile soils but regional council land use restrictions mean the growers have nowhere else to go. “Aucklanders are going to have to give up on their quarter acre backyard property dreams and vote in councils with the ability to town plan for future food

demand,” Milne said. “Auckland needs to grow up, not out.” Points from the report should raise eyebrows. They included that by 2050 the demand for fruit and vegetables will increase by 90% and significantly exceed estimated population growth of 30% and that between 2002 and 2016 there was a 30% reduction in vegetable growing land throughout NZ. And though Pukekohe accounts for just 3.8% of the country’s land in fruit and vegetable production it contributes 26% of the nation’s value of production of vegetables. “This whole report feels a bit

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like back to the future. “We used to have things like the Soil Preservation Act and the Town and Country Planning Act to look at these issues. “Problems like high land values and the lack of appropriate rating policies mean these special areas, like Pukekohe, are now seriously under threat. “We would encourage the Government to start moves to identify and protect the nation’s growing hubs around urban centres. “Fertile and productive soils are valuable and deserve to be protected. “Once we lose them under asphalt and concrete we will not get them back,” Milne said.

HIGH-VALUE soils at Pukekohe must be protected from ever increasing urban creep, a Deloitte report commissioned by Horticulture New Zealand says. NZ’s Food Story – The Pukekohe hub, a 60-page report, said the rich volcanic soils south of Auckland contribute more than $250 million a year to the economy despite being only 4300 hectares or .01% of Auckland’s land area. But pressure on South Auckland’s red soils is growing with demand for fruit and vegetables from Auckland alone expected to grow by 33% in the next 20 years. Nationally, NZ has also experienced a 30% reduction in vegetable growing land between 1996 and 2012. In the Auckland region alone 14% of the region’s Class 1 land or 10,000ha has or will be encroached by housing before 2040. The report’s authors make six recommendations endorsed by Hort NZ to secure the district’s future for food production while balancing the Auckland region’s growing population demands. They include a more considered planning approach to balancing housing and food demands, greater technology to manage intensified cropping and investing in new varieties of produce to meet conditions and preferences. Other recommendations include more funding for horticultural education to draw in talent, a commercially sharper supply chain and more certainty on water access to balance horticultural and domestic water demands. Hort NZ chief executive officer Mike Chapman said the report does not bring any significant surprises for him but does validate the sector’s concerns by backing them up with some sound data. At the heart of the organisation’s efforts is an intention to see a

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National Policy Statement (NPS) for Versatile Land and High Class Soils make progress through Parliament. The plan will aim to strike a balance between urban development and protecting prime growing areas like Pukekohe. The only protection the area gets is in Auckland’s Unitary plan that protects 2000ha of elite soil. However, a further 6000ha of next grade soils remain without protection, something Chapman hopes an NPS would change. Horticulturalists are getting a reasonable hearing from Auckland City councillors but the report adds more weight to efforts to protect those soils. Meantime, an NPS would be the starting point for a national approach to better food security and supply certainty for years to come. “An NPS would mean growers have more certainty for the next generation, they would know the land will be there specifically for growing and rates will not become urban rates. “What we have shown is that Auckland is losing good land for houses and its ability to feed itself with locally grown, fresh and plentiful fruit and vegetables will be threatened if growth continues the way it has.” In recent years a number of large-scale growers have moved parts of their operations to Waikato but Chapman said even that is no longer an option thanks to a notified regional plan change that prevents moves to intensive land use. A similar scenario is also playing out in Canterbury. “So our growers are really stuck – they cannot go somewhere else and are losing land in Auckland.”

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News

14 FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Foresters fear carbon auction’s implications Richard Rennie richard.rennie@globalhq.co.nz FOREST Owners Association president Peter Weir is troubled by Government proposals to use an auction system to allocate extra carbon units under a revised Emissions Trading Scheme. The proposal is for a sealed-bid, singleround auction where bidders submit their bids simultaneously. Each bidder can submit multiple bids, ultimately creating a demand curve ranking all bids from

UNSTABLE: Auctioning carbon credits will create huge uncertainty for foresters, Forest Owners Association president Peter Weir says.

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highest to lowest. A clearing price is then determined, where supply and demand meet. But Weir is concerned the proposal is going to cause more problems than it solves. It is one of several amendments proposed after consultation for the Climate Change Response Act. The purpose of having the auction is to set a clearing price for carbon units that helps a secondary market to grow, allowing auction participants to on-sell any surplus units or to buy any shortfall, maintaining market liquidity. “My concern is that these units are not going to be backed by anything, unlike the forestry units that are underpinned by trees. “This is like quantitative easing for carbon units, it is not a good thing.” When New Zealand subscribed to the first round of the Kyoto Agreement on climate change the units were backed by United Nations-sanctioned standards, called Assigned Amount Units. However, because NZ was not an signatory to the second round of Kyoto the units are no longer backed by the standard. Weir is also concerned no clear indications have been given by the Government at what point the auction will be initiated. “Auctioning will create huge uncertainty for foresters. “We do not know when the Government will intervene with the auction. Will they start when the carbon price goes to $40, $60?

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“This makes it hard for people who want to buy land to know at what point will the Government take the heat out of the market.” Weir said the carbon market already risks a liquidity crisis, partly as a result of a strong surge in carbon prices locally in recent weeks. Last week the carbon price was at $24.05 a unit, up from $18 a year ago. With the price capped at $25 a unit Weir said that value is starting to resemble a fixed carbon tax for emitters to work from. “Everyone will start to use the Government’s fixed price ($25) to settle any liability on NZ carbon units.” Even capping the market was odd when other trading markets are free to trade at whatever the market determines. “So it looks like a carbon tax rather than a true market value.” Overall though foresters are happy with most of the changes proposed. They include being able to get carbon credits until year 20 on a forest with no harvest liability to pay at felling. However, there was a sting in the rules. “When you harvest your forest it reverts to pre-1990 liability. If you change your land use you will be liable for the carbon cost. It’s excellent if you wish to stay in forestry, which this is trying to reinforce, but not if you want to change land use.” He also welcomed the retention of carbon in harvested wood products. “The current scheme makes no allowance for the fact carbon remains locked up in timber for potentially longer than the life of the tree it was produced from. “This is recognised internationally but here in NZ it doesn’t flow through for the benefit of forest growers or wood processors.” Anecdotal feedback from the industry is that interest from sheep and beef farmers in forestry is on the rise and any ability for carbon credits to rise over their $25 a unit cap will be further encouragement, he said.

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Mycoplasma bovis – latest update We are working hard to eradicate the cattle disease Mycoplasma bovis (M. bovis). Where it is found, we work closely with affected farmers to remove it from their farms and support them as they move forward. M. bovis is an animal welfare issue and has no impact on food safety or human health.

Another round of M. bovis bulk milk testing is taking place this spring. All dairy farms supplying milk will be tested. With the ultimate aim of eradicating M. bovis from New Zealand, this surveillance programme is essential to providing further assurance of previous non-detects. It will also help to identify any clusters of disease that could have gone undetected so far.

Facts at a glance:

RECOMMENDATIONS FOR MANAGING BULLS

• The vast majority of properties that have been tested as a result of tracking and tracing, have been cleared with no cases of M. bovis found. The total number of properties under movement restrictions (or pending restrictions) has fallen from about 350 in May to around 280 in August 2018.

The highest risk of spreading M. bovis is the movement of infected animals from one herd to another. Bulls who have been in contact with infected cows, and then moved to another herd are at risk of spreading infection.

• Since the disease was first detected in July last year, around 60 properties have been confirmed with M. bovis. Put in context, there are more than 20,000 dairy and beef farmers in New Zealand.

Bulls should arrive properly identified and with their movement history. If sourcing bulls, make sure you let the vendor or agent know that you expect these details. On arrival the bulls should be held separately from the main herd for at least seven days to assess their health, and to complete procedures such as drenching. If you have any concerns about the health of the bulls, contact your veterinarian before you mix the bulls with the herd.

All test samples will be taken as part of the normal milk collection process so farmers will not be required to do anything additional. Results will be provided to farmers in November.

The fight against M. bovis is a joint effort between MPI, DairyNZ and Beef + Lamb New Zealand; with significant support from:

Bulls leaving the farm

• Federated Farmers

One year old bulls

MPI believes mixing young animals at calf days and returning them to their home farm is not worth the risk under the current state of heightened biosecurity in New Zealand.

• 20 properties are now restocked, and another seven are in the process of restocking, after going through the process of depopulating and cleaning. Teams are working with the farmers on each property to help them recover and move forward.

• Rural Support Trust

Bulls arriving on farm – all ages

If the bulls are leased, then talk over the options with the owner.

• Dairy Companies Association of New Zealand

These bulls may be a risk for the spread of infection. The best indicator of the level of risk from these bulls is the health status of the herd the bulls have been running with.

• Rural Women NZ

Two year old (and older) bulls

This is a very stressful time for affected farmers and their families. Look out for your neighbours, friends and family and seek help if you are worried about their health or well-being.

Once mating is finished these bulls should be sent directly to slaughter. It is important that they go from the farm to the slaughter premises directly, not via saleyards or any other intermediate stopping point. If they are being held for further use (mating in autumn or spring 2019) then follow the recommendations for one year old bulls.

• New Zealand Veterinary Association • Meat Industry Association

CALF REARING Calves can become infected with M. bovis through direct contact with infected cattle, or by drinking milk from infected cows. Avoid trading milk if possible. If you have a farming operation that requires trading of calves or milk, you can take some simple steps to reduce the risk of spreading M. bovis. For more information about feeding, visit www.mpi.govt.nz/bovis.

www.mpi.govt.nz/bovis

MPB0053

BULK MILK SURVEILLANCE PROGRAMME

If the bulls are of dairy origin, the herd has been screened via bulk milk and discard milk tests, and the results show M. bovis infection is not detected, then the risk of these bulls spreading infection is lower than those from a property where test results are unavailable. If the bulls are from a beef property and M. bovis test results are unavailable, then the best indicator of the level of risk from these bulls remains the health status of the herd(s) the bulls have been running with – pay particular attention to the herd’s levels of mastitis and lameness.

Spring is the best time to test for M. bovis because infected animals are more likely to shed the bacteria after a stressful period, such as calving and the start of lactation.

Farmers can find out more about the programme at www.mpi.govt.nz/bovis or ask your local dairy company representative.

CALF DAYS

We recommend that, while the M. bovis eradication programme is underway, schools and other groups managing calf days look for alternatives. It could become a ‘pet day’ with other pets and animals, or you could use technology and come up with an innovative compromise. Calf Club NZ has launched an ‘online calf club’, find out more and register at calfclubnz.co.nz.

BUYING STOCK The infected and most suspicious farms are in lockdown and cannot trade stock. When purchasing stock, do your homework about the original source of the cattle, their health history, and find out what milk was used when they were reared – whole milk or calf milk replacer. If you don’t like the answers, don’t buy the animals. Always apply good biosecurity measures when introducing new animals to your farm, like keeping them separate from the rest of the herd for seven days to observe their health. Always complete your NAIT records. Knowing where your cows have been is crucial to understanding and preventing the spread of disease. DairyNZ has a helpful pre-purchase checklist: www.dairynz.co.nz/pre-purchase.

For more information: www.dairynz.co.nz/mbovis www.beeflambnz.com

www.rural-support.org.nz

News

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Storing water more than irrigation Richard Rennie richard.rennie@globalhq.co.nz LOOKING harder at the benefits of water storage might help win the hearts and minds of New Zealanders more effectively than simply pushing the benefits of irrigation, Irrigation New Zealand chairwoman Nicky Hyslop says. A year after what proved to be an acrimonious election stoush between irrigators and the Labour Party there has been some acknowledgement on both sides of the debate that better communication and co-operation is needed, she said. For INZ that might involve taking a step back from the “I” word in the organisation’s title and better explaining the social, environmental and economic benefits water storage can deliver and that irrigation is only one outcome. She points to the community benefits promised by the stalled Hunter Downs project in terms of domestic water supply to Waimate and Timaru. “And there are the promised benefits coming out of the Rangitata Diversion Race Management’s Klondyke proposal, environmentally taking pressure off the aquifer from bore supply and run-of-river take. Klondyke has been able to clearly demonstrate a commitment to land stewardship.” The 53 million cubic metre proposal has recently been given the green light by independent commissioners granting 22 consents relating to the storage pond. The intense environmental scrutiny it got means it will boost local stream flows, providing flora and fauna habitat and support recreational activity on what amounts to the largest storage area in Australasia. Hyslop said having a broader spectrum of uses in mind when developing such schemes can only help get communities on board with them. She acknowledged some reasonable questions have been asked about the outcome of projects and the industry has to

accept responsibility that not everything was done to best practice in the past. She is also aware getting better public acceptance will help project backers get their schemes over the line in Wellington if the Government has confidence the voting public supports any positive steps it might take in supporting projects.

We know we have a lot of good news stories out there. Nicky Hyslop Irrigation NZ Hyslop is heartened the primary industry is now working more closely across sectors on projects relating to water quality and more efficient water management. INZ has worked since 2011 to establish tight consent conditions alongside farm environment plans for new irrigation developments while all schemes are also implementing nutrient management monitoring to reflect individual resource consent conditions. It is refreshing its strategy that aims to better publicise what the core standards are. It also intends to make accessible, transparent data available on scheme performance. “We know we have a lot of good news stories out there but the public also want to see the numbers behind these too.” She agrees there has been some battle fatigue among all parties after a combative decade of rapid industry growth as environmental standards struggle to catch up. She describes relations with the Labour Government as relatively positive. However, some concerns remain about whether Government policy will override regional efforts on nutrient management. She accepts the Government is about to seek greater consistency

in how regional councils achieve goals in water quality but is concerned a rule set in Wellington might override the controls set regionally that reflect individual catchment issues. Hyslop acknowledges the challenges facing irrigation scheme backers now the Crown Irrigation Investment Fund has dried up. As with public perceptions she believes stepping back and considering storage schemes on a more holistic, multi-use basis might be a way forward for publicprivate partnerships in future. As rural communities work to upgrade drinking water quality, for example, storage schemes might mean quality water is a funded outcome in that scheme. “There will always be ongoing issues on the cost versus economic return. It’s a huge commitment from farmers that puts them out of their comfort zone but the history of schemes are that uptake will initially be slow but after five years they often reach capacity.”

CONVINCE ME: People have to be educated on the benefits of water storage and that irrigation is only one outcome, Irrigation New Zealand chairwoman Nicky Hyslop says.

Rule no-one wanted is dumped AN APPEAL against Environment Canterbury’s Plan Change 5 nutrient modelling rules has been resolved with a major win achieved for irrigators, IrrigationNZ says. A hearing panel on the change proposed a new requirement that would have effectively required all older spray irrigation systems in Canterbury to be replaced with new ones by 2020. It was estimated the change would cost irrigators $300 million. All parties to the appeal agreed an error in law had been made when the panel introduced it as a new requirement because no submitter had asked for the change. IrrigationNZ tested 300 irrigation systems in Ashburton and Selwyn districts over two summers and found older

spray irrigation systems can achieve good levels of water efficiency if regular checking and maintenance is done. “IrrigationNZ spent a lot of time on this appeal,” chief executive Andrew Curtis said. “We knew the decision by the hearing panel would have wide-ranging impacts so we commissioned an independent Aqualinc report, which showed there were huge costs to implement this change. “We are very pleased that the appeal has ruled out this rule that no one requested,” he said. The rules around irrigation systems will now be the same as those notified in the Plan Change consultation. The new rules will still require older spray irrigation systems operating on light soils be upgraded and are estimated to cost irrigators about $80m.

Irrigators are already investing in modernising their systems as they age and need replacing. That is reflected in Agricultural Production Census data showing the amount of Canterbury land irrigated with modern spray systems increased from 89% in 2012 to 95% in 2017. Worldwide, only 14% of irrigated land is irrigated with spray or drip systems and 86% of land is irrigated through flood systems, which are less efficient. IrrigationNZ said there is still a lot of work to be done to on more detailed requirements around nutrient modelling for irrigation. “As part of their Farm Environment Plan irrigators have to show how they are achieving good management practice across a range of areas.”

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FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Cash drought blights water plans Richard Rennie richard.rennie@globalhq.co.nz HAVING the Crown Irrigation Investment Fund plug pulled has left some big holes for projects around the country in the past 12 months. At least 65,000 hectares of potential irrigation are covered by projects threatened by funding issues as backers struggle to fill the gap. The $115 million Hunter Downs project in Canterbury got only $4m over four years from the fund and is now scrambling to secure more money from farmer shareholders. The project has already been scaled down from 21,000ha to 12,000ha and still failed to reach the point where all shares are farmer owned. A deal with businessman Gary Rooney secured $18.5m and farmers are being asked to reassess their commitment. Its disclosure document said the company can’t attract enough farmer support to secure funding. It outlines how the project has decided to restructure, with the company becoming an investor alongside Rooney Holdings, in a new Hunter Downs Water Scheme Company. Hunter Downs chairman Andrew Fraser was reluctant to comment on the latest fundraising round, wanting to give farmers

some time to consider the offer before it closes in four weeks. Further north the Hurunui Water Project received about $3m from the Crown before the scheme dried up post-election and earlier this year 194 farmers were asked to put $63m towards the $230m scheme. But the mid July deadline found the scheme short, with enough raised to cover only 5200ha of the proposed 21,000ha. Project chief executive Chris Pile said that was below the threshold but the commitment remained to continue the scheme. Other funders for the scheme include the Rooney Group, which invested several million into the scheme’s original design. The Hurunui District Council proposed investing $500,000 but that has proved controversial. Pile is also cautious of speaking on possible funding sources. “But the scheme is not dead and the need for it certainly has not changed. “The region will be impacted by climate change and even now we are coming into an El Nino period which will bring water issues.” Investment efforts will include making another approach to farmers but he doubts that will get the project over the line. “There is no silver bullet for this. It will be a combination of funding from a number of different sources.”

QUIET: Hunter Downs Water Scheme chairman Andrew Fraser is reluctant to talk about funding.

The ability to prove irrigation is an enabler for downstream industry and community water use is critical and the project hopes to have funding options scoped out in less than a year. Pile lamented the loss of Crown funding. He had hoped

the Government would see some sense around the value of such schemes but that does not appear to be the case. Wairarapa Water project director Michael Bassett-Foss believes the region’s 30,000ha project is in the best heart it has ever been in his

five-year involvement. The $200m project received $3.5m of Crown money. It has been less vulnerable than some of the southern projects to losing Crown funding because of the scheme’s timing, he said. “Perhaps if we had been a bit further down the process in terms of sourcing funding it may have been an impact. “But we are only now in what will be a 12-month phase of validating and quantifying all the benefits of the project, not just irrigation, in order to align our funding sources, whether they be councils, farmers, banks or other interests.” The scheme is also blessed by not having to be created in one single 30,000ha play, instead rolling out in 8000ha lots or even less if necessary. “We are also now in an environment where we have a much clearer idea about the implications of the regional water plan. “This requires river flows to be maintained and water storage will help achieve that, benefitting both the environment and recreational users.” Greater understanding of climate change impact is also pushing community and council awareness about the need to have storage facilities for communities as much as for farming, he said.

Irrigation’s appeal is in dairy profits Richard Rennie richard.rennie@globalhq.co.nz TWO agricultural economists agree irrigation projects are a fraught investment and will always struggle to provide an equitable return to investors while delivering affordable water to farmers. Massey University agri-business Professor Hamish Gow and agrieconomist Peter Fraser say the option to go dairying on irrigated land, rather than the ability to source irrigation, is the reason some past schemes have got off the ground and why future schemes might struggle. “Even before the Crown Irrigation Investment Fund was canned irrigation investment has always been tough. All our cheap rivers to use for water storage are gone. You can enhance existing schemes like the Rangitata Diversion Race with storage but starting from scratch, that is very expensive,” Fraser said. While dam schemes are complex, at their simplest level it comes down to the cost of a scheme and investors’ decent rate of return exceeding what farmers are prepared to pay for the water from it. The Ruataniwha scheme, where at its most optimistic, water had been costed out at about 28c a cubic metre, is a typical example. But Fraser maintained the most farmers can afford to pay for water is 10c and the cheapest in the country is from the Opuha dam at

about 8c a cubic metre. Fraser’s estimates for the proposed Waimea dam scheme are 60c a cubic metre based on latest but ever-rising estimates on that dam’s construction. Dams built on NZ’s young geography face extra costs because of unstable land, earthquake risks and high river flows. “Schemes like Opuha cannot be replicated any more and that’s aside from the money Alan Hubbard put into it.

Dairy is effectively the pricesetter for schemes. Peter Fraser Agri-economist “Dairy is effectively the pricesetter for schemes. It forms 53% of Opuha, it’s been the highvalue, high-volume anchor store in that investment. “But it is getting harder to do dairy in some of these catchments and returns have been lower, removing that main anchor user from projects like the Wairarapa scheme.” Dairying accounts for 47% of all irrigated land use in NZ, with sheep and beef at 23%. Fraser said dam construction can be likened to ship building, where scale always rules in

construction economics. “You may build a box that is 1 cubic metre but double the sides and height and you end up with 8 cubic metres and you get the volume but you need the volume of demand also on hand from big users, namely dairy.” However, if dairy is not an option, supporters talk about other high-value opportunities like seed crops and horticulture. But Fraser said those sectors are relatively small with specialty seeds at about 7000ha and hops, for example, about 700ha. “So if you started supplying those specialty areas with more crop from irrigated areas what do we think will happen to the return from those crops? “They will no longer be the high-value crops we were drawn to.” Even crops like stonefruit, pipfruit and grapes at 34,000ha would be susceptible to oversupply, assuming the skills to grow such specialty crops were even available. Gow said dairying has, over the last decade, provided a template for capitalising on the higher earnings irrigated land brings. “This has been a template that is well serviced by advisers and people skilled at putting it in place and farmers new to it feel comfortable with it. “Beyond that, a lot of farmers in NZ are paralysed by uncertainty with new investment because it may compromise their capital

wealth position so why put that at risk investing in land use they know little about?” Add in a layer of environmental regulations around today’s farming operations, which are only likely to get tighter, and their appetite to grab a higher-value land use through irrigation is only dampened further. “Then you have biosecurity uncertainty, banks wanting principal payments and not only interest and uncertain secondary finance. “The only upside is the OCR is stable for the next two years but that’s not enough.” Demographics also play a part. The average age of sheep and beef farmers is about 59. “So if you are 50-60 you will look at it and say ‘why would I?’ (irrigate). Am I really going to get the benefit with a 10-year window before it even starts? “That leaves you with a small group of progressive younger farmers who are top of their game with enough debt paid off.” But the slow-burn learning in sheep and beef farming and one-off receipts for livestock income mean the sector by nature has to be more risk averse, again reducing appetite to throw investment into a new farm system. “So that leaves you needing two generations to be engaged on irrigation and you may need corporate money, in a dry-stock sector dominated by owner-

INERT: A lot of farmers in NZ are paralysed by uncertainty with new investment because it may compromise their capital wealth position, Professor Hamish Gow says.

operators, compared to dairying.” Gow also laments an information culture in NZ that lacks impartiality when it comes to providing farmers with good data on irrigation returns and economics. “We have a competitive funding model and you will not get people standing up and challenging the status quo. “There is no open or transparent process for people to go out and provide analysis. Government does not have an open policy where all analysis is openly shared with the rest of the country.” He compares that to the United States, which ranks highly for sharing data openly through its Agriculture Research Service in the US Department of Agriculture.

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News

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Councils say criticism is unfair in the region, saying there were 899. The ambiguity arose about whether three others were dairy A FOREST and Bird report critical farms, being herds of less than 20 of how dairy farm resource cows, making them a permitted consents are managed is activity under council rules. misleading, regional councils “The reality is that this is as say. much around the interpretation Council leaders said they found of the information provided as it numerous errors in the report is the facts that we provided,” he compiled from information said. gathered from regional councils Forest and Bird also claimed for the 2016-17 year from Local Environment Southland and other Government Official Information councils gave farmers 24 hours’ and Meetings Act requests. notice before an inspection and This information was used to didn’t follow up all significant rate councils according to how non-compliance issues. well they carried out compliance, Smith that was not the case monitoring and enforcement of in Southland, where typically, dairy farm consents. Forest and Bird said councils are farmers were advised 15 to 20 minutes before an inspection inconsistent, especially related to and all significant breaches are seriously non-compliant farms, followed up. defined by an environmentally Last year the council prosecuted damaging activity occurring or six dairy farmers, issued 91 likely to occur because of poor abatement notices, 22 formal practice. warnings and 39 infringement It also said about 5000 farms notices. nationally, 3350 of them in Smith and Waikato Regional Waikato, were not monitored for Council resource use director dairy effluent compliance in that Chris McLay said had Forest and year. Bird allowed a peer review of its Environment Southland was report the errors would have been rated E but its policy, planning UP: FIXING COMPLIANCE, MONITORING and regulatoryCLEANING services director AND ENFORCEMENT IN THE DAIRYdiscovered. SECTOR Waikato was graded F and Vin Smith dismissed accusations McLay said contrary to claims the council did not know how the council did not take any many consented dairy farms are Neal Wallace neal.wallace@globalhq.co.nz

FLEXIBILITY: Councils have to be practical about when and where not to enforce rules, Local Government New Zealand regional councils spokesman Doug Leeder says.

prosecutions during the period under review, it took four and issued more than 180 enforcement actions. “While no one likes to be rated

COUNCIL REPORT CARDS Forest & Bird rated regional councils’ performance in relation to detecting and responding to dairy effluent serious non-compliance.

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poorly I am confident we are doing a good job. “The Waikato farming sector is well aware that when we find non-compliance we hold people to account. “Only in the past week a Waikato farming company was convicted and fined $41,000 for environmental breaches. “That is a clear message in anyone’s books,” he said. “We are at a place now where a significant portion of the farming population have or are attempting to improve their systems and working with them one-on-one has helped,” McLay said. McLay and Horizons Regional Council chief executive Michael McCartney said giving 24 hours notice of a visit enables staff to meet those who make decisions on farms. McCartney, who is also the convenor of the regional council chief executive’s group, acknowledged councils are open to scrutiny but there was no clarity about how Forest and Bird would use the data or an opportunity to peer review its findings and as a result there were numerous errors, including claims made about his council. The organisation gave Horizons a D, accusing it of not following up 18 significant non-compliance breaches, a fact McCartney said was wrong. In the 2016-17 year it pursued 26 cases of significant non-compliance, issued 10 infringement notices and 21 abatement notices. Some farms had more than one compliance breach. He said he was not being defensive but the report needs balancing. “I think some of that needs clarity.” McCartney said 95% of farmers in his region are compliant and frequency of council inspections is based on risk, the proximity

to sensitive catchments and compliance history. A recognised top operator with modern, well performing infrastructure is visited less regularly. Local Government NZ regional chairman Doug Leeder said councils, the Minister for the Environment and Ministry for the Environment are looking at councils’ performance on compliance, monitoring and enforcement. “The minister, ministry and councils all wanted satisfaction that all that can practically be done is being done.” Leeder said risk, topography, environment, climate and the type of consent issued should determine the frequency of monitoring, not statutory annual visits as advocated by Forest and Bird. Councils need to be practical. He gave the example of a Bay of Plenty council requirement that effluent ponds maintain at least a 30cm freeboard. In extended wet weather when irrigation is not possible, enforcement of that rule is not practical. Forest and Bird also claimed the collection of data and the Ministry for the Environment’s reporting of national compliance monitoring and enforcement is inadequate. But it did offer tentative praise to the dairy sector. “While there have been many meaningful improvements in reducing dairy effluent pollution entering waterways there is still significant work to be done. “To date most councils have been unable to achieve 100% legal compliance for dairy effluent disposal.” The document said councils reporting annually against the Dairy Accord goals is the only national report on industry compliance, which is insufficient.

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News

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Farming not Maori’s best asset

Calf Rearing & Herd

August 2018

Health

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Read all about calving and herd health. We also featured Jodie Heaps, the Dairy Business of the Year winner.

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The latest Dairy Farmer hit letterboxes on 6th August, have you read yours?

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to best fit investments that provide greater returns with the right balance between income and growth.” Three-year average returns varied across the group with the upper quartile for return on assets almost twice that of the lower quartile, it said. The Maori economy is estimated to encompass $50 billion in assets or about 6% of the nation’s total asset base and represents a rapidly growing segment of the wider New Zealand economy. Since the first settlement under

“Both fishing and farming face increasing sustainability scrutiny and, along with forestry, all three are threatened with disruption from alternatives being developed by science and technology,” the report said. “However, these assets have largely been returned to iwi through settlements or have been purchased with cultural considerations in mind and are generally considered not for sale. “This places increased pressure on the rest of the assets to ensure they are allocated or re-allocated

Harrison said one of the hardest commercial decisions iwi face is whether to distribute or reinvest profits. “There is pressure to increase returns and distributions, driven by growing populations hungry to see the tangible fruits of their tribe’s treaty settlement. “Opposing the need for strong financial return is the deep responsibility iwi and hapu carry as kaitiaki, often creating challenges in balancing risk and reward.” The overall trend for postsettlement iwi has similarities to a start-up business where initially capital growth is modest before it starts to build, he said. “At one end we see iwi with recent treaty settlements typically benefiting from asset transfers and revaluations and low initial operating costs. Meanwhile, iwi who settled more than 10 years ago are seeing the advantage of having miles on the clock. However, some of those four to nine years are showing signs of stalling or consolidating.” The report found the overall proportions invested in various asset classes remains reasonably stable. – BusinessDesk

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MORE THAN MONEY: Maori investments take cultural considerations into account rather than just counting returns.

the Waitangi Tribunal process in 1989 in respect of land at Waitomo Caves, Maori businesses have become economic powerhouses with investments in hotels, farms, forests, bus companies and shopping malls. “Maori investment has historically been focused in key industries such as farming, forestry and fisheries. “While strong ties to these industries remain, Maori are strengthening their footprint in other sectors. For example, we’ve seen a number of recent investments in tourism, horticulture and commercial property which is exciting for iwi,” Harrison said. ANZ found the biggest year-onyear growth from 2015 to 2017 was from transport and infrastructure, up 33%, and tourism, up 30%, both from growth in existing businesses and new acquisitions. Cash and managed funds grew 19% from treaty settlement receipts and general growth in financial markets while agricultural investments also grew 19% from investment and some treaty negotiated transfers/ purchases. Forestry returned 9% and property 8% from a mix of investment and revaluations.

THE poorest performing Maori investments are in farming, often favoured for cultural rather than economic considerations, ANZ Bank says. Its latest annual Iwi Investment Insights report, Te Tirohanga Whanui, said Maori get the best returns from putting their money in managed funds. ANZ evaluated the asset base of 34 iwi and hapu, finding the commercial assets of the combined group have increased by just over $1 billion or 12% to $5.4b since 2015. The most common asset in the top quartile for underlying returns is the significant holdings in managed funds that have performed well in recent years. On the flip side, most iwi and hapu in the lower quartile are actively managing big farms. “In many cases cultural reasons were an important driver in the investment decision,” ANZ Maori relationships head David Harrison said. “This highlights noneconomic considerations may be impacting financial outcomes.” Iwi have about a third of their assets in the primary sector, which means they are exposed to commodity cycles as well as new challenges confronting many of the industries.

News

24 FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

New scheme to grow horticulturalists A NEW horticulture apprenticeship scheme is an initial step to alleviate a skill shortage in a sector crying out for capability throughout its supply chain. Launched at the 2018 Horticulture Conference in Christchurch by Agriculture Minister Damien O’Connor, the Apprenticeship in Horticulture Production was developed by Primary ITO.

The apprenticeship signals to future talent that employers are willing to invest in their development.

Horticulture New Zealand president Julian Raine said now is the perfect time to start a career in horticulture. “Horticulture is the industry to be in. “We have people wanting to join us and we need more people.” The sector will need an extra 25,000 people in the next 10 years and they will have to be smart and tech savvy. Primary ITO chief executive Dr

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Linda Sissons said the three-year apprenticeship programme, which will employ 100 people a year, is a first step to creating a premium path for aspiring leaders in the horticulture sector. The apprentices will be supported in their professional development by their employer, Primary ITO and off-site training providers. “The apprenticeship signals to future talent that employers are willing to invest in their development.” It also shifts the conversation from seasonal labour to a longterm career option in what is a buoyant sector of the economy. The programme, which allows apprentices to earn as they learn, takes the different needs of the different industries in the sector into account. Apprentices will work through a typical season of whichever industry the apprentice chooses to ensure they start at the right time for both employer and employee. For Canterbury-based vegetable grower Robin Oakley the apprenticeship programme could not come soon enough. Employing 30 people fulltime, he relies on holiday and Recognised Seasonal Employer workers for his business to function.

Where he sees the void appearing is in senior management roles as there are simply not the skilled people coming through to replace those nearing retirement.

While he appreciates the work done by the RSE workers, who are in the country for only a short-term, he wants New Zealanders on a pathway to learn about the industry both on and

Otago Uni rejigs its rural health

200x71.67

agrievents RMPP Action Network – Facilitator training courses For rural professionals or farmers looking to run an Action Group under RMPP Action Network. No course fees. Register at www.actionnetwork.co.nz/training Lead Facilitator workshops • Whangarei 3 & 4 September • Hawkes Bay 20 & 21 September • East Coast/Gisborne 16 & 17 October • Christchurch 7 & 8 December

Neal Wallace neal.wallace@globalhq.co.nz

Action Network Fundamentals & Extension Design workshops • Hamilton 19 & 20 September • Whangarei 9 & 10 October • Hawke’s Bay 17 & 18 October • Invercargill 24 & 25 October • East Coast/Gisborne 13 & 14 November • Christchurch 12 & 13 December For more info contact info@actionnetwork.co.nz Thursday 27/09/18 Rural Business Network Effective Industry Collaboration for Environmental Gains - Rebecca Hyde Venue: Barge Showgrounds Events Centre, Whangarei Time: 5:30pm - 7:30pm Website: https://my.youngfarmers.co.nz/rbn/events

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Wednesday 31/10/18 Rural Business Network Positioning for a very different future Dr Warren Parker Venue: Barge Showgrounds Events Centre, Whangarei Time: 5:30pm - 7:30pm Website: https://my.youngfarmers.co.nz/rbn/events Saturday 1/12/18 Whangarei A&P Show – One Epic Show Day Venue: Barge Showgrounds, Maunu Road, Whangarei Time: 9.00am start Trade sites & Entries contact Chris 09 4383109 ext 3 website: www.whangareishow.co.nz

BACKERS: Primary ITO chief executive Dr Linda Sissons, Horticulture New Zealand president Julian Raine, centre, and Agriculture Minister Damien O’Connor at the launch of the horticulture apprenticeship scheme in Christchurch.

Should your important event be listed here? Ph 0800 85 25 80 or email adcopy@globalhq.co.nz

A NEW administration structure for the rural sections of the Otago University’s medical school should result in more staff working in the regions and research into rural health issues. The dedicated section on rural health will combine all the units and leadership dealing with rural health in the general practice and rural health department. Section head Garry Nixon said the new structure should result in more health professionals living and working in rural communities, better streamlining of undergraduate and post-graduate postings to rural practices and greater research into rural health issues. “It has been made clear by the university to the section that there is an expectation the research side of things be given quite a lot of priority so there should be a strengthening of rural health research in the university.” Existing research investigated the health workforce and education and diagnostics but Nixon said the volume was small compared to research done in rural Canada and Australia. The new section will provide commentary and interpretation related to the health needs of rural communities. It is also a step towards the creation of a national school of rural health, a proposal by the university

in conjunction with Auckland University, Auckland University of Technology and the College of General Practitioners. That proposal, being considered by the Government, would see various tertiary providers and professional bodies share infrastructure and resources in rural communities.

The new section will provide commentary and interpretation related to the health needs of rural communities.

“A national school of rural health would need a home within each of the partner institutions and this would help set up the Dunedin school of medicine and department of general practice and rural health to potentially be that home within the University of Otago,” Nixon said. “Importantly, it will increase the number of staff living and working in rural communities, help ensure teaching in these communities is more co-ordinated as well as increasing capacity for rural research.” Waikato University has also proposed establishing a medical school specialising in rural health. A spokesman for said that proposal is still being considered by the Government.

off-farm and develop their skills. “This is something that hasn’t come too soon.” “It’s music to a grower’s ears. It’s rain and sunshine all at once.”

DairyNZ board seeks farmer DAIRY farmers with governance and leadership experience and a keen eye on the sector’s future should consider a role on DairyNZ’s board. This year one farmer is being elected to the board, with candidate nominations opening on Tuesday, August 21. Chairman Jim van der Poel said it is an opportunity for a dairy farmer to bring their sector experience and strategic thinking to the board table. “As a director you are in a unique position to influence and shape the direction of DairyNZ and the dairy sector and we are keen to tap into some of the talented, skilled and business-savvy dairy farmers we have. “We are looking for someone who has the best interests of all NZ dairy farmers at heart and leadership and governance experience. “Our board works with a broad range of stakeholders from our dairy farmers through to government and communities so their people skills and ability to engage with all sorts of people are crucial.” An interest in the Dairy Tomorrow strategy, broad dairy sector knowledge, strong business skills and some exposure to research and development principles are also preferred. The DairyNZ board consists of five farmer-elected directors and three boardappointed directors. Nominations are also being sought for a farmer to join the DairyNZ directors remuneration committee. All farmers paying a levy on milksolids can stand for the positions. Candidate nominations will be open August 21-September 14. Voting opens for dairy levy payers on October 1. Results will be released at the annual meeting on October 31.

News

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Farmers won’t drop second shear round Neal Wallace neal.wallace@globalhq.co.nz FACTORS other than cost will determine whether farmers continue with second shearing, industry leaders say. With shearing rates increasing by up to 25% and most crossbred wool returns continuing to languish around the cost of production there have been suggestions farmers might switch to annual shearing to cut costs. But brokers and farmers said animal health and farm management benefits from second shearing outweigh the cost for most. Shearing contractors have increased pay to stem the loss of experienced shearers and shed hands to Australia and to make the jobs more attractive to young people. Wairarapa sheep farmer and Federated Farmers provincial

president William Beetham won’t abandon second shearing because it suits his system. “If there is a bit extra cost it does not appear to be changing the attitude of farmers away from second shearing.” Of greater concern to him is the value of the fibre than harvesting costs but he is considering other ways to reduce his shearing bill. “One of the things I will look at is delaying lamb shearing, sending more to the processors before being shorn.” Another option farmers are looking at is to investigate employing shearers on an open shed basis, allowing the farmer to work in the shed themselves and employ fewer wool handlers. Beetham said farmers understand the need to improve incomes but the bigger issue is the future of wool. The growing backlash against

FACTORS: Shearing sheep takes account of factors like animal welfare as well as the cost.

the environmental impact of man-made fibres is creating an opportunity for wool but quality has to be maintained. PGG Wrightson wool manager Grant Edwards said while there has been some discussion among farmers about changing shearing patterns, management benefits

will have to be considered. The crossbred wool market is challenging but second shear wool is in demand and a decline in quality from cost-cutting would be of concern. NZ Wool Services chief executive John Dawson said the market for second shear wool is

quite positive, albeit at a certain price. He urged farmers to stay loyal to wool saying consumers are starting to push back against man-made fibres, which will eventually benefit wool. Such benefits will take time to flow to wool prices but he is optimistic it will happen.

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26 FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Newsmaker

Belt and Road leads to riches Rather than looking for trade deals New Zealand would do better by improving its technology and connectivity to the rest of the world then making itself an integral part of China’s Belt and Road as a hub for trade with South America and the Pacific visiting foreign policy expert Professor Wang Yiwei of Renmin University says. Tim Fulton heard what he had to say.

EW Zealand is chasing shrinking profit from bilateral free-trade deals when it should be pursuing shared global connectivity, Chinese foreign policy expert Professor Wang Yiwei says. Future economic growth from cutting import tariff rates is forecast to be no more than 5% compared to 10-15% from initiatives like China’s Belt and Road strategy, he told a Christchurch audience. “We should have a new kind of innovation to make globalisation work,” the academic, former diplomat and author said on his first visit to New Zealand and the South Pacific. China is investing billions in land and maritime connections around the world, most notably on the ancient Silk Route between Asia and Europe but also in Africa and Pacific nations like Fiji, Samoa and Tonga. From 2008-11 Wang was a diplomat at the Chinese Mission to the European Union and is director of the Centre for European Studies at Renmin University of China, where he specialises in Belt and Road policy and EU-China relations. Wang offered NZ a heads-up on China’s geopolitical goals, saying traditional approaches to globalisation, like the singleminded pursuit of bilateral free-trade deals will soon become antiquated. He argues while other world

powers like the United States act like Atlas holding up the globe, China is trying to pump air into the globe. “China provides,” he said. As the author of several books on Chinese foreign policy Wang said Belt and Road can help NZ become a hub in a network of international ports. Many associate the policy with financing for infrastructure like railways creating a new Eurasian land bridge but it is actually about connecting people and economies, he said. It is not about China exerting financial or political influence at the expense of other nations. Africa still has 500 million people living without electricity and India has 300m in the same position. “We need a more inclusive globalisation,” he said. “Geopolitics divided the world, mutual connectivity can unite it.” Wang’s message of shared prosperity did not resonate entirely with his audience at Canterbury University. One man leaving the lecture hall after Wang’s talk turned to a friend and said “What’s good for China is good for everyone, surprise, surprise”. A controversial part of Wang’s lecture, hosted by the NZ Institute of International Affairs, was his backing for Pakistan’s claim over the Kashmir region, an ongoing source of tension between Pakistan and China’s historic economic and political rival, India.

We should have a new kind of innovation to make globalisation work. Professor Wang Yiwei Renmin University

CHOOSE: New Zealand can make only 5% more income from bilateral trade deals but up to 14% from shared global connectivity, Professor Wang Yiwei of Renmin University says.

Wang said Pakistan is a great friend of China and its investment in Pakistani infrastructure, which started in the 1960s, will help it rise from a potential failed state to a global middle power by 2030. A Pakistani post-graduate student at Canterbury suggested to Wang that China’s support for Pakistan is bolstering its military capability and creating a deep state within the country that makes the world more unstable. Wang said China does not pick sides nor does it expect

investment and trading partners to follow its direction. “I think that’s a misunderstanding about Chinese culture. Chinese culture is a learning culture. Like we learn Buddhism from India but we never sell (Chinese) Taoism to India or any other countries.” Wang said NZ is already anticipating the future of Belt and Road trade with automated port technology that moves goods faster than people. More investment in digitisation

of shipping services and customs facilities could help NZ renovate and promote its existing free-trade trade agreements. Belt and Road would benefit NZ more than continuing to look for tariff cuts in milk exports to China, for example. Citing a McKinsey consultancy study Wang said the maximum economic growth from a tariffbased, country-to-country approach to trade is 5% compared to 15% from mutual global connectivity. NZ could be an economic hub for the movement of goods and services from Asia to South America and the Pacific Rim if it concentrates on digital innovation, he said. “A new hub in a mutually connected world, not just bilaterally. All this milk that sells to China, it’s not enough. You need to have a more innovative culture, digitising ports and all kinds of new ways.” Wang said it is up to NZ if it wants to benefit from China’s method and he disagrees the country is pushing “soft power” through Belt and Road investment. “Soft power in Chinese understanding is not teaching other people lessons. You cannot guarantee you are the teacher.” China itself learnt from the West then internalised and adapted the teaching to suit its own culture. NZ could do the same embracing Belt and Road, he said.

New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Menu a regional food road map Italy’s Tuscany region is steeped in culinary tradition, reinforced and even stereotyped by the expectations of millions of tourists. But one restaurant in Florence is taking a different approach to traditional menu fare while acknowledging and even deferring to the farmers whose produce features. Richard Rennie visited to sample the food, and talk to its managers about how Foody Farm is turning traditional Tuscan cuisine on its head.

HEN Foody Farm opened its doors a year ago in the Tuscan capital of Florence, its owners had already spent six months developing the restaurant’s unique menu. The eclectic selection they came up with captures latest trends in customer eating habits and the move away from heavy main meals. Instead, it acknowledges touring taste buds enjoy sampling a broad range of tastes, textures and approaches to traditional cuisine. That includes incorporating a mix of street food style servings, using different cuts of meat and adding a fun element. Dishes range from samples of cheeses from three species of animal, slow-cooked chicken and hay-wrapped steaks to old fashioned burgers with regional sausage patties. It is an extensive, multipage menu, almost a regional culinary road map that encourages customers to mix and match their meal preferences and ultimately complete their journey with a deeper appreciation of the region’s artisan operators. But rather than sequester chefs away in the back kitchen to develop the combinations themselves, Foody Farm’s owners stepped out into the Tuscan countryside to talk to the region’s leading farmers who use traditional methods of production and were happy to see their work showcased in often nontraditional food styles. “Typically, if you set up a

restaurant in Italy you start with this catalogue that contains everything Italian and just tick the boxes on what you want to include,” Foody Farm operations manager Luca Salamini said. “Our question to that was, ‘why put something on the menu someone else has chosen?’ so we went straight to the farmers themselves.” Despite outsider perceptions the Italian food scene is an artisan, hand-crafted industry comprising multiple smallscale operators the reality is the country’s food industry is often hugely industrialised. Often only a few small family operations survive, making their particular product in the shadow of enormous global operations.

The result really was that these farmers, these producer groups wrote the menu. Luca Salamini Foody Farm A key requirement for Foody Farm was to respect the limited capacity the chosen artisans had, to be sure they would not overstretch farmers’ ability to offer regular supply of a product and to match it with a dish that would accommodate that. The legwork through the Tuscan countryside resulted in a

network of about 15 farmers and farmer cooperatives committing to the Foody Farm philosophy. For some it was the first time they had ever been personally approached by a restaurant wanting to showcase their particular product. “The result really was that these farmers, these producer groups wrote the menu.” The products include a fascinating mix of meats, cheeses and produce, sometimes served with touching simplicity that ensures the product is the hero of the plate and palate. Well up in the forested back blocks of Tuscany Salamini hunted down a farmer whose pigs roamed in the Casentinesi National Park and would come running out of the trees when he sounded a klaxon. Their pork is showcased on a sliced cold meat dish with multiple types of salamis on offer. Salamini said the most difficult to source product was freerange chicken, solved when he came across a family business in Cortona that had been running since 1960. Their special breed features in a

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sandwich that has it slow cooked, served with scrambled egg and truffles, lettuce, mayo and another farmer’s Maremma bacon with fries. Alternately, it comes simply roasted, cooked for 12 hours at only 72C. “What we wanted to do was to take our diners on a journey from where the food came from. And we wanted to be able to do it at a price they could afford, not what you would pay in a Michelin star type restaurant.” Foody Farm had tipped over some preconceptions about pricing. One top-end restaurant dropped a farmer who had decided to also supply the more egalitarian dining outlet. Typical menu prices easily accommodate both the locals’ and tourists’ budgets. The opportunity is also there

for diners to visit any of the farmers supplying the restaurant. Salamini says the operators have deliberately avoided hanging the business’ marketing around the descriptor Tuscan, something they believe has become as abused as used. “Locals took a bit of time to accept us and sometimes have taken a couple of visits to adjust. “They are finding just how extensive the menu is and that they can dig deeper into the dishes, exploring the complexity when they return next time.”

Opinion

28 FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

EDITORIAL

Homegrown talent on the front bench

ONTERRA’S new interim chief executive Miles Hurrell has jumped into his new role with enthusiasm and the best wishes of farmershareholders. Many dairy farmers have met him as chief operating officer of Farm Source, the largely successful rebranding and redevelopment of RD1 over the past four years. Few would have been aware of his earlier decade in leadership roles offshore – in Europe, the United States, Middle East, Africa and Russia – and his management courses at some of the world’s best leadership institutes. Still only 44, his dairy industry experience reaches back to the Dairy Board, when he joined the shipping division in 2000. That combination of home-grown talent, tertiary training, overseas experience, senior management and good relationships with farmers is what Fonterra has within its massed ranks and what all shareholders hope will lead the cooperative in the future. Hurrell was perhaps the least obvious candidate for internal promotion to chief executive from what chairman John Monaghan calls a talented and capable front bench. To push the rugby analogy, Fonterra has skilled managers playing great games in specialist positions all over the world. Monaghan’s short time as chairman has been very eventful. He now wants to take as long as necessary to review the company’s profile and direction before resuming the chief executive appointment process. That could mean almost anything and the time frame is open-ended. Farmers might hope he will elucidate at the annual meeting, to be held at the Lichfield plant in south Waikato in early November. But a change in Fonterra’s strategy would not be smart, nor would it be welcomed. Many aspects of what it does here and abroad have added value to milk prices, the environment and the personal development of thousands of employees. Fix the Beingmate connection and make sure earnings and dividends are not regularly dragged down by high milk prices and Fonterra would be the multinational leader of this can-do country. Your call now, Miles Hurrell, and we all wish you well.

Hugh Stringleman

LETTERS

Fonterra’s board drops the ball I WISH I was a cartoonist because it would be apt to show a board of fat cats on million dollar salaries, dressed in unused farmers’ attire, planning their next overseas trips while their shareholders (owners) languish in the bowels of public opinion. Not only has Fonterra’s board been fumbling the ball, they have decimated the entire playing field. They are symbolic of AIM, Arrogant, Ignorant and Mislead. I have to smile with sadness as the fishing industry whose leaders, no doubt having learnt how not to turn public opinion against your own industry, have embarked on an impressive and successful propaganda mission that portrays their members as the life blood of the oceans while the two Fs have sided with whinging city folk and painted

their stakeholders and farmers as environmental terrorists only finding out way too late just how much damage they have caused. To then attempt to embark on a damage control campaign well after the horse has bolted by employing an ex rugby player delivering milk to kiddies in his very own helicopter as some sort of means to unravel the immense damage, simply beggers belief. I guess it is not difficult to see the resemblance between multi-million dollar salaries and ex All blacks flying around in helicopters. Fonterra incompetence is fast becoming a reality and on a daily basis. China failed as too will India. It’s a pity we dairy farmers don’t wake up, realise the con and demand immediate change. Really, I doubt if God himself

would demand a $5 million plus salary and if he did, he sure as heck would have done a far better job. Dave Blackley Northland

Desperate attempt THE article (Disruptors are here, Annette Scott, 9-7-2018) on the GE burger goes to show how desperate the GE industry is to try to get us to accept GE. The article failed to report the plant-based protein burger is genetically engineered and the United States Food and Drug Administration has said the GE component does not meet the safety standards required for regulation. I have to ask why the extensive media attention when non-GE plantbased protein burgers have been available for many years? Now we have AgResearch’s expensive and unwanted GE ryegrass that is still at the starting line.

After unimpressive results from US field trials, AgResearch has acknowledged it has not been able to measure any significant outcomes in its two-month GE ryegrass field trials. The AgResearch GM ryegrass has been in development since 2001 and was intended to be commercially available in 2004. In 2012, trials were done in Australia and now after 17 years, the proclaimed benefits remain just supposition and the data on these trials remain confidential. AgResearch must be called to account and redirect its funds into supporting and developing existing non GE forages. The GM ryegrass project threatens the foundation of farmer resilience and quality of agricultural produce. Claire Bleakley President , GE-Free NZ

Letterof theWeek EDITOR Bryan Gibson 06 323 1519 bryan.gibson@globalhq.co.nz EDITORIAL Stephen Bell 06 323 0769 editorial@globalhq.co.nz Neal Wallace 03 474 9240 neal.wallace@globalhq.co.nz Annette Scott 03 308 4001 annette.scott@globalhq.co.nz Hugh Stringleman 09 432 8594 hugh.stringleman@globalhq.co.nz Alan Williams 03 359 3511 alan.williams@globalhq.co.nz Richard Rennie 07 552 6176 richard.rennie@globalhq.co.nz Nigel Stirling 021 136 5570 nigel.stirling@globalhq.co.nz

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Opinion

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Frustrated farmers not penalised Martyn Dunne

ROFESSOR Keith Woodford is a regular and lively commentator on a range of agricultural issues, bringing an independent viewpoint and frequently challenging the status quo. Woodford is a scientist and it is unfortunate he has not brought a strong evidence base to some of his latest views concerning Mycoplasma bovis and the management of the eradication programme. While there is no denying farmers affected by M bovis are experiencing a difficult time, I strongly reject claims the Ministry of Primary Industries is being deliberately slow to compensate farmers who have voiced their frustrations and that MPI is making life difficult for farmers and staff to speak out. The M bovis response is challenging enough for all concerned. It does not need hearsay and unfounded speculation thrown into the mix by somebody of Woodford’s status. The biosecurity compensation process is enshrined in legislation and we have highly competent, experienced staff running it. They have my complete support. We are conscious of the importance of paying compensation in a timely manner. But rigour is required to ensure fairness to farmers and that taxpayer and, eventually, industry funds are being used appropriately. Straightforward claims are being processed quickly – complex claims naturally take longer. At the time of writing, MPI had paid out nearly 70% of the $23.6 million value of assessed M bovis claims. MPI accepts that in some cases good communication and

NOT THE SAME: Farming is going to change significantly regardless of the outcome of the Mycoplasma bovis response, Primary Industries Ministry director-general Martyn Dunne says.

I am acutely aware that every decision we make, while made for the good of our national herd, can have distressing implications for individual farmers.

support for farmers has taken longer than we would have liked. This is something I know the response team is working hard to improve. We won’t always get it right but we will make every effort to fix known problems as they arise. MPI is working closely with industry partners on all aspects of

the M bovis response. It is the largest biosecurity response done in this country, involving several hundred people. This joint effort includes staff from MPI, Dairy New Zealand and Beef + Lamb NZ, scientists and other industry experts. There is significant support from Federated Farmers, Rural Support Trust, Rural Women, the Dairy Companies Association, Veterinary Association and the Meat Industry Association. I can confirm, despite Woodford’s claims to the contrary, MPI is working closely with OSPRI, which manages the Nait system. I am aware some farmers are still experiencing difficulties as they go through the process and I encourage them to raise any issues with their incident control

point manager, who can escalate them as required. In addition, other agencies such as those I’ve mentioned can provide support. I am acutely aware that every decision we make, while made for the good of our national herd, can have distressing implications for individual farmers. I want to assure those families that we do not take these decisions lightly. As noted in an earlier Farmers Weekly article, MPI recently hosted a group of affected farmers in Wellington. That was a valuable opportunity for us to hear directly from farmers, listen to their concerns and to agree on solutions. By the end of their visit they were better informed of the complexity of the operation and the processes that underpin its execution. That initiative was in addition to the more than 80 farmer meetings we have had on M bovis all over the country. Far from discouraging farmers from speaking out, as Woodford incorrectly suggests, we encourage them to tell us how we can better support them. The M bovis response team is working closely with field staff, farmers and industry experts to ensure the communication process and information provided to affected farmers is fit-forpurpose, timely and not causing affected farmers undue stress. We want to give farmers under surveillance or movement restrictions certainty around the process and provide them with support as they go through this challenging time. While I am conscious this will be of little comfort to those who are under restriction, the response is making progress. As of today 28 farmers have had their IP status removed and are moving forwards with their farming business.

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MPI is looking at what additional support we can provide them during their recovery phase. It’s important the communication and support is ongoing, even as farmers come out the other side of the process. Farming in NZ is going to change significantly for a lot of people, regardless of the outcome of the response. We must work together to remain vigilant and observe good biosecurity hygiene to ensure we remain disease-free. Having previously met Woodford to consider M bovis issues he has raised we remain open to constructive dialogue with him. MPI, DairyNZ and B+LNZ, which are running the eradication programme, are not immune to criticism and, in fact, it can and has been helpful. But we would like it to be based in fact.

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

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Opinion

30 FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Spray keeps grocery bills down From the Ridge

Steve Wyn-Harris

I’M THINKING about the big technological farming advances I’ve embraced over my 35 years that have made a big impact on the way I and others farm. Electric fencing on hill country allowing greater subdivision and much improved grazing management and feed allocation is right up there.

It’s the perfect chemical, which why it is used so widely. Sheep breeding tools like SIL, DNA analysis, SNP chips, CT and ultrasound scanning and finally the realisation feeding highperformance sheep properly gives productivity unimaginable three or four decades ago. And the use of glyphosate has vastly improved our ability to efficiently get crops and pastures sown without the use of the plough and create clean seed beds. It has been a terrific chemical. It is absorbed through foliage and transported to the growing points in the roots and leaves and growth stops within hours. Cultivation

can begin within a few days. It is effective on actively growing plants and cannot prevent seeds from germinating. It adheres strongly to soil particles, limiting surface and ground water pollution. It is readily degraded by soil microbes. When used appropriately and according to the label it is safe for humans and other lifeforms. And it’s relatively cheap. It’s the perfect chemical, which why it is used so widely. But in recent years, given how much is used around the world, it’s in the sights of the greenies, activists, idealists and the uninformed. There have been many studies into its safety with very little evidence it is dangerous when used appropriately. The benefits far outweigh the risks. However, the World Health Organisation in 2015 classified glyphosate as probably carcinogenic in humans. That added it to a category of things such as sunlight, household bleach, hairspray, alcohol, toast and a myriad of others used in daily life. You are likely aware of the United States case of Dewayne Johnson who is dying of nonHodgkin lymphoma. He took Monsanto to court claiming Roundup caused it. The jury has just found in his favour and awarded him US$289 million in damages but Monsanto is appealing and Johnson will be dead before that case is heard. I would have thought a strong defence would have been that if he had done as the

NO WORRIES: Glyphosate is safe when used appropriately and according to the instructions.

label recommended and taken precautions he wouldn’t have got crook and it might just as easily have been the fumes from his car or the stuff he cleaned the shower with that got him. This verdict will open the floodgates for thousands of other cases, I imagine. Closer to home we have just heard Massey University’s Professor John Potter recommend restricting the use of the product and even banning it for many uses. He suggests pulling the weeds or using flame throwers and is

welcome to come to my farm for a spot of rouging. One might be wondering just what is going down there at Massey, once proud to be supportive of agriculture. So before putting the boot in again, one should point out that Potter’s colleague Kerry Harrington, a lecturer on weeds is on record as saying it is no more hazardous than being a hairdresser, a shift worker mucking up your circadian rhythms or burning wood in the fireplace. We will see a lot more alarmist and knee-jerk reactions

The produce perils of city living scooter in the great avo heist earlier this year but a few months ago our four crabapple trees were stripped naked, as were our neighbour’s feijoa trees. It was a great upset in our household because we’d already lost our feijoas to an infestation of guava moths. The beggars lay their eggs in baby fruit, the caterpillars hatch and eat the farmersweeklyjobs.co.nz inside so you open up the fruit to 2IC find a fat creepyAgribusiness crawly. Farm Manager We put a lot of Fencer General Livestock Co-Ordinator love into nursing Manager our feijoa trees to

HOMEGROWN produce is hot property where I live in Auckland – woe to you if your avocado tree is in sight of the street. We don’t have a tree of gold nor did I see the thieves on a mobility

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maturity but guava apple moths know no boundaries. We could put traps out to catch them, spray and hope but if our neighbours and their neighbours have the moth and don’t do the same there’s no point. Which is how the cattle disease Mycoplasma bovis came into my consciousness. Being forced to get rid of something you’ve put a lot of work into is devastating. M bovis is a bacterial disease that can cause untreatable mastitis, abortion and arthritis in cows but is harmless to humans. In the city we feel a bit distanced from the impact of this disease, perhaps because there’s no threat to food safety so we can confidently continue buying homegrown meat and milk.

Contact Debbie Brown 06 323 0765 or email classifieds@globalhq.co.nz

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DANGERS: City life throws up the risk of fruit predators, both insect and human.

But reading the stories of farmers whose calves suffer from incurable illness brings it home pretty quickly. Since the Ministry for Primary Industries announced M bovis had been discovered on a South Island farm in the middle of last year the number of properties confirmed as being infected with the disease has risen to more than 50. The Government will cull about 126,000 cattle in an attempt to rid the country of M bovis in a phased eradication costing $886 million including compensation to farmers. Culling cattle becaue of disease must be a horrible process for farmers to go through. They wouldn’t want their animals to suffer or the disease to be passed on but all that work into raising the livestock, for what? Then there’s a process to clean the farm before it can be restocked. This all takes time and I imagine compensation goes only so far. It’s not just livestock at stake, it’s future livelihoods. It’d be naive to think city dwellers won’t feel the impact of M bovis on our economy and national psyche. This is really a confidence game. If farmers lose confidence

to this foolish jury’s verdict. If glyphosate is removed from use, the alternatives are more dangerous to lifeforms and much tougher on the environment. I wonder if those protestors about to gird their loins to fight the good fight would be so fervent if they realised that removing tools like glyphosate will see their grocery bill skyrocket.

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

Town Talk

Amy Williams

they’ll reduce their spending, including investing in their businesses and the local economy. Culling livestock is stressful and the impact on farmers and their families shouldn’t be underestimated. We know imported threats to New Zealand produce and livestock are nothing new – just think of myrtle rust, velvetleaf, bonamia ostreae in Stewart Island oysters, painted apple moth, kauri dieback, Psa in kiwifruit. However, an imported disease that affects our dairy industry is one to take notice of – it could be worse. M bovis is a test scenario for how the Government and industry manage and prevent further incursions. As for me, when we eventually replant feijoas it’ll be with more preventive measures against the guava moth. And I’ll be hoping farmers can successfully restock their farms and rebuild their livelihoods.

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

Nait has long way to go Meaty Matters

Allan Barber

FINGER POINTED: Farmers’ failure to comply is blamed for most of Nait’s problems.

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

you can trust www.fegold.co.nz

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One farmer has written to his MP to express his continuing frustration with Nait, beginning with the statement “I have not yet met a farmer in NZ who believes that Nait works or their records correspond to farm records – in my own case they have never had it right since it started (I know because I scan in and out) and even when I tell them their records are wrong they don’t believe me. I still have 22 animals on my Nait

The recommendations target a major improvement in all these areas, some of which require operational or procedural fixes and others a regulatory solution. Part of the original justification for Nait was the commercial benefit of maintaining market access and ultimately attracting a premium for full traceability. At this point I believe the only quantifiable commercial benefit so far is a reduction in the cost of TB eradication. It will require a lot of hard work on everybody’s part – the Primary Industries Ministry, Beef + Lamb NZ, DairyNZ and, above all, Nait and farmers – to lift the performance of this frustratingly slow and underachieving system to where it needs to be. The jury is out on whether this review has successfully captured all the problems.

However, there is nothing in there that admits sometimes the farmer might be right and Nait wrong and how to fix it but a blanket assumption the farmer must have entered the wrong information. Nearly half the recommendations address problems with animal location, registration, movement recording and identification devices. I understand the benefit of MINDA was overestimated while reliance on Farms Online for property details also proved to be a problem, hence the decision to specify Land Information NZ as the sole source of farm boundary and ownership information. Movement recording and animal identification have been affected by a variety of causes: faulty data entry, tags issued for a different property or no Nait number, tag losses, insufficient controls on tag supply and unreliability of manual Animal Status Declaration forms while electronic ASDs have not been introduced as quickly as ideally hoped for.

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There is nothing in there that admits sometimes the farmer might be right and Nait wrong.

records that do not exist.” In discussion with a member of the review team I was told the main problem is farmer failure to comply with Nait recording requirements. According to the review the rate of farmer compliance within 96 hours has averaged less than 60% since inception, though it is improving slowly and reached 70% for the first time in January this year. It seems that doesn’t necessarily invalidate the benefit of the traceability system because that level of compliance is considered useful for meeting overall traceability objectives in case of a disease outbreak. But it suggests it will be a struggle to get the percentage much higher unless Nait can build its credibility with farmers whose Nait records don’t match up with their own. There are 38 recommendations to address the issues identified, covering animal identification, recording and location, roles and responsibilities of the participants, the Nait system and compliance.

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competitive position depends on being at least level with our rivals. The big question is whether the review has successfully identified the problems and come up with recommendations to fix them.

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NAIT is like a long running soap opera viewers can watch faithfully for a couple of years, go back to after a long absence and find nothing much has changed. It was first thought of in 2004, took eight years of argument, design, business case preparation and readings in Parliament and was finally implemented in July 2012 with a three-year lead-in for cattle. In 2016 a review was started and finally completed in May this year and presented to Agriculture Minister Damien O’Connor. When it finally saw the light of day you could have been forgiven for thinking it would be a review of all the reasons Nait doesn’t yet appear to be working properly but I understand it was always intended to be a routine review of the programme after three years in operation. I searched the report in vain for a succinct statement of the problems identified as obstacles to the achievement of the original goal of establishing a “worldrecognised animal identification and tracing system” to meet consumer demands for safe and disease-free food. However, the report is more concerned with very lengthy and verbose statements of the background to the introduction of Nait than it is with sheeting home responsibility for the fact New Zealand still doesn’t have a system capable of providing assurance to consumers in the event of a disease outbreak or food safety scare. We have reached this point 14 years after the industry began talking about it, six years after the programme’s introduction and two years after the start of the review. The report compares NZ’s later adoption of a traceability scheme than other countries, notably Australia’s NLIS, as though that excuses us for being behind the eight ball at a time when our

32 FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

On Farm Story

YFC champ adds dairying venture The Kidd family has expanded its farming interests in the Auckland province with the purchase of a medium-sized dairy farm and some adjacent leased land for grazing at Shelly Beach on the south Kaipara Head. Hugh Stringleman went to hear about the new venture.

HE Kidds have gone to Philadelphia, in the United States, for the wedding of son Hamish, a New Yorkbased investment banker, to an American woman. Conversations on the long flights and while away among parents Richard and Dianne, of Whenuanui Farm, Helensville, their three sons and their respective partners will feature the latest expansion of the family farming enterprise.

David and his wife Janine have bought a 118ha dairy farm with considerable family support and employed experienced contract milkers James and Kylie Somerville. The new 360-cow herd is well advanced in calving and the goal for James and David is to supply 120,000kg milksolids on contract to Fonterra this season. They have also leased an adjacent 117ha to make an effective milking platform of about 140ha, about 60% of which

STRONGER: David, left, his mother Dianne and father Richard Kidd have farming businesses across three properties within an hour’s drive of Auckland.

is drained marine clay flats, plus on-farm grazing for dry stock. It is near the 550ha McEwanKidd Partnership beef finishing business in which David and Janine now have a 12.5% equity share, Richard and Dianne 37.5% and the McEwans 50%. Richard and Dianne are the 2016 Gordon Stephenson Trophy winners and won the Supreme Award in the inaugural Ballance Farm Environment Awards for Auckland province that year. They are second-generation farmers of the now-enlarged 376ha Whenuanui Farm, an Angus cattle breeding and sheep breeding and lamb finishing showpiece property less than an hour from Auckland. Richard has featured in many promotions for beef and lamb, mainly for Countdown supermarkets, supplied through Auckland Meat Processors’ plant at Otahuhu. David is equally well known as the 2014 FMG Young Farmer of the Year, the first national winner from the Northern region in nearly 50 years. He and Janine returned to south Kaipara Head in 2012 after six years in rural banking in Waikato and West Australia and have two children, Evelyn, aged 3, and Ava, 11 months. Janine continues her work as an occupational therapist on contract to ACC. David was also a 2017 Nuffield scholar and has a Massey University applied science in agriculture degree. He was the agricultural student of the year in 2005.

QUICKER: A $900 weaner steer takes longer to achieve the same return as a $700 weaner dairy bull, David Kidd says.

The Nuffield experience of meeting other scholars from eight countries and hearing about their entrepreneurial efforts set David buzzing. “We spend a lot of time finding excuses for not doing things but while we are in the prime of our careers, opportunities should be grasped. “Our subsequent decision to go dairy farming was partly because the nearby farm tender came up and with the support of Richard and Dianne we thought ‘why not?’. “I am treading that pathway of farming and leadership that many earlier generations of NZ farmers have trodden before. “It has always been a challenge but perhaps now what you can earn versus the capital costs of farming make it harder.” Especially in Auckland province, where land valuations have a periurban dimension and the landuse environmental expectations are growing quickly. Friesian and Friesian-cross dairy cows were sourced from several different herds in lower Northland at an average price of $1600. James is rearing the herd replacements and David the non-replacements with a view to selling the dairy-beef weaners into the neighbouring beef finishing system. Buyers have been found for the beef-cross heifers not needed by the Kidds. David has an objection to the bobby calf slaughter system, by way of its public relations and sustainability, so the combination of dairy and beef finishing is ideal. “I will know where my bull

calves are coming from and how well they have been reared so it closes the loop and should be repeatable in coming years.” As regards location, the proximity of David’s two operations to the home farm facilitates some sharing of equipment and advisory sessions with Richard. Going dairying also effectively spreads the farming risks across milk as well as red meats. The two Shelly Beach farms have to stay financially separate

On Farm Story

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

this year, providing a very visible boost to the permanent ryegrass and kikuyu content. July 1 stocking was 760 R1 Friesian bulls, 200 R2 bulls, 140 R1 Angus steers (ex Whenuanui) and 100 R2 steers. Everything is on a 40-day rotation through 1ha blocks and two-day shifts, with the aim to go round 2.5 or three times between June 1 and September 10.

We spend a lot of time finding excuses for not doing things but while we are in the prime of our careers, opportunities should be grasped. David Kidd Farmer

OPPORTUNITY: 2014 Young Farmer of the Year David Kidd has “closed the circle” with dairy cows and dairy-beef finishing.

and stand on their own merits. However, the recent winter pasture growth and David’s inability to plan ahead before settlement date means some offfarm grazing might be needed for dairy livestock in the first season. He bought 100 tonnes of maize silage and that is being fed out at 5kg/cow/day until the anticipated pasture supply and demand balance date of September 10. Nitrogen had been flown on to both farms and the warm start to August boosted growth rates. Six years of farming at Shelly Beach have seen significant operational changes as well as the YFC and Nuffield challenges and the birth of two daughters. David and Janine jumped at the

CONSULTATION: Shelly Beach farm worker Mark Davidson on the ATV with boss David Kidd.

chance to go farming when family friends the McEwans bought what was a traditional sheep and beef breeding property and Richard and Dianne helped with livestock. The partnership has made considerable structural changes. First to go were the sheep because of the available infrastructure, the north’s animal health challenges and the better prospects ahead in finishing beef cattle, partly sourced from Whenuanui’s Angus cattle. Then David got involved with the Red Meat Profit Partnership and Greenlea Meats, the Egan family-owned beef processing and exporting company. “With professional help we were able to reassess the whole

business and look at the pros and cons of different farming options.” The partnership was then running breeding cows, heifers, steers and bulls. The main objective was to finish beef cattle for slaughter before their second winter, something dairy-beef bulls can achieve in an average of 22 months for 270kg carcase weights. Steers take closer to 30 months at Kaipara on lower-energy, kikuyu-dominant pastures and potentially cause much more hoof damage to soil profiles in their second winter. “Heifer finishing doesn’t fit with bulls on the same farm so they went, along with the breeding cows.”

Asked why he had departed from his father’s prime beef specialisation David said a $900 weaner steer takes longer to achieve the same return as a $700 weaner dairy bull. “They pay much the same schedule price but the bull gets there more quickly.” Was bull beef at variance with his Nuffield study emphasis on national environmental and welfare objectives in grass-fed farming systems? David said the RMPP was designed to get the whole NZ farming system working more closely. “I know a lot more about which markets pay best for what products, such as the primal cuts ex bulls that go into Asian markets and the value of their coproducts. “We also have to farm for today and secure our future – perhaps in the future consumers will pay more for higher-quality, grass-fed beef. “Nationwide, our livestock numbers are not going to increase by much so the next logical way of getting progress for the whole industry is to bring the companies and farmers closer. “Greenlea can use us as a sounding board and we can learn more about demand for our products. “In the past meat companies and livestock farmers haven’t been well aligned and it is better for everyone if we don’t try to second guess what the companies and prices are going to do.” The beef farm had 250ha of undersowing with annual ryegrass

David is helped by employee Mark Davidson and on the dairy farm the Somervilles have employed a helper. David and Mark do their own tractor work and have in the past gone through summer crops to renew pastures while using maize and chicory. “The partnership has spent a lot on water reticulation to every cattle system, on building soil fertility and making pasture improvements. “But we can’t fix everything with the dollars available.” Some 80ha of the beef farm is drained marine flats but in winter the water doesn’t move laterally so just sits. “Kikuyu comes back quickly no matter what else is sowed although tall fescue has been the most successful here.” Ease of calving will be the main breeding value for Angus bulls over the dairy heifers and in the past the Kidds had bought from breeders John Bayly and Chris Biddles, both in Northland. David isn’t averse to trying Simmental and Charolais but James had already impressed on him that milk is their number one product, not dairy-beef calves. The new farm could be suited to winter milking, to fit the grass curve even better and to lift the payout. David is a strong co-operative supporter and Fonterra’s contract route to share ownership will ensure his loyalty in return, despite the processor alternatives opening up in northern Waikato. His milk is going to Takanini, Auckland but will soon switch to Maungaturoto or Kauri. Te Rapa isn’t an option because of motorway congestion in South Auckland.

>> Video link: bit.ly/OFSKidd

g n i tt Si

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THE DESTINATION FOR RURAL REAL ESTATE WEB ID TAR02018 OHAUITI 782C, 816 and 836 Ohauiti Road 153 ha preferably sold as one unit but in three titles so there are options. 8 ha in one title, flat to rolling contour, with a three bed home plus office and magnificent views of the Bay and Mt Maunganui. 145 ha in two titles with various shedding and a 100 year old home. Flat to rolling contour with some steeper sidlings, excellent fences and raceways, 103 paddocks, boundaries on two streams. Currently running 350 beef cattle and some dairy grazing. Situated 12km to Tauranga this is an excellent run-off, support block.

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FOR SALE INGHAMS PORTFOLIO Matamata, Waitoa and Putaruru

LONG LEASE INGHAM ASSETS CBRE as the exclusive agent is offering the opportunity to acquire the Freehold Interest in six facilities leased to Inghams including the Hatchery, Processing Plant and Breeder Farms in New Zealand. Inghams is a long-running firm and one of the leading producers of poultry products across Australia and New Zealand. + Net annual rental of approximately $5.8 million + Long WALE of 21 years + Strong international covenant + ASX Listed parent company + Multiple further lease renewal options + 181ha (approx.) total land area across six locations + The farm land is available for acquisition and offers are sought from potential purchasers

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Real Estate

FARMERS WEEKLY – August 20, 2018

farmersweekly.co.nz/realestate 0800 85 25 80

New Zealand’s leading rural real estate company RURAL | LIFESTYLE | RESIDENTIAL

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Holland Road Comprising 42.76ha (more or less) of compressed peat soils with central lane and dissecting all 32+ paddocks for the length of the property. Water is via a bore with town water at boundary if required. Currently used for maize cropping and rotated with annual grass for support dairy grazing and fertilised on a regular basis. A set of cattle yards with central lane and pump shed complete the picture. This property is in an excellent location close to Hamilton. pggwre.co.nz/MAT28641

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The best and largest orchard to be presented to the market for quite some time. A true trophy property. 14.8ha with 11 can ha and around 1100 x 16 year old Hass avocado trees carrying a great crop. Around 30,000 trays of fruit hanging ready for harvest. Most of the machinery and all of the crop are included in the sale. The manager of 16 years wishes to stay on and says the orchard is still improving. Job done. This location is life at its best. pggwre.co.nz/TAR28700

Trevor Kenny M 021 791 643

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TENDER (Unless Sold By Private Treaty) Closes 4.00pm, Tuesday, 11 September VIEW 11.00-12.00pm, Wed, 22 August 11.00-12.00pm, Wed, 29 August

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PGG Wrightson Real Estate Limited, licensed under REAA 2008

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QUALITY DAIRY FARM

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• This quality property is located on the outskirts of Palmerston North and is 76 hectares in 4 titles including lovely scattered bush. • Currently milking cows and would be suited to any agricultural activity with resource consent for intensive agriculture along with a recent upgrade to the cowshed effluent system. • Facilities include a 16 aside dairy, machinery shed, good hay shed. • With silt loam soils this could be a great chance to add a forage and heifer block to your current dairy business. • Call Les to inspect this property.

• Your opportunity to own this quality dairy farm in full production. • Situated in Northern Horowhenua and very well laid out with central laneways, rotary dairy and 600 cow feed pad. • 170 hectares in three titles with a great mix of Kairanga silt loam and Pukepuke sandy loam soils. • Three good family homes. • Our vendors are looking to retire and have priced this property to sell at $7.5 mil land and buildings. • Call Les to inspect this property.

• Have you ever wanted to go fishing in between milking? Well this is your chance to do just that. • This 525 acre property located in the central Horowhenua has all the features that you and your family would love. • A good mix of flat to rolling contour that has the ability to winter cows. • Modern herringbone dairy along and nice five bedroom family home. • With growth in this area who knows how great this farm could be as an investment in the future. • Call Les to inspect this property.

Sallan Realty

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THE DESTINATION FOR RURAL REAL ESTATE

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Connect with the right audience at farmersweekly.co.nz/realestate

LES CAIN 0274 420 582

Licensed Agent REAA 2008

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Ring Fence Your Investment

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Employment

FENCER GENERAL

SHEPHERD GENERAL

Leefield Station in the Waihopai Valley has a proud history as a leading Marlborough Angus and Romney breeding / finishing property wintering 6000su alongside an 800ha vineyard development.

The property in total is 2165ha. Farm effective area of 1000ha of which 900ha is rolling hill to steep. Winter vineyard grazing further increases productivity.

An opportunity has arisen for a proven Fencer General to join the Leefield Station team. The ideal candidate will bring with them the following experience in:

An opportunity has arisen for a proven Shepherd General to join the Leefield Station team.

• • • • • • • •

Repair and new fencing on hill country Electric fencing Maintaining water systems Stockwork in yards and handpiece work Weed management Vehicle maintenance Capable tractor driver First class attitude to Health and Safety, Animal Welfare and Environmental Management • A general can-do attitude with a willingness to turn your hand to any job on the farm

We are looking for someone who has made Farming their career – the ideal candidate will bring with them the following: • A minimum of 3 years farming experience • Attention to detail in stock performance and forage management; • First class attitude to Health and Safety, Animal Welfare and Environmental Management. • Preferably minimum 2 working dogs • A general can-do attitude with a willingness to turn your hand to any job on the farm

We offer a competitive remuneration and benefits package.

We offer a competitive remuneration and benefits package, including a house. Primary schools within 10 minutes and colleges within 20 minutes on sealed roads. School bus at gate.

Please apply via email with a brief covering letter and a current CV to: greg@leefieldstation.co.nz or for further information please contact Greg Crombie on 027 551 1011

A position description is available upon request. Applicants must have the legal right to work in New Zealand to be considered for this role.

Applications close 5pm, Sunday 2 September 2018

FARMERS WEEKLY – August 20, 2018

Manuka SA – CHILE Technical Assistant Manuka SA is primarily a New Zealand owned company that develops and operates dairy farms in the south of Chile. The company is committed to adopting New Zealand dairy farming techniques, and is seeking to aggressively implement a pasture based milk production strategy. In the 2018/19 season the company will milk approximately 35,000 cows across 47 dairy units. The Technical Assistant will be a ‘knowledge resource’ for the CEO and senior members of the Production Team, assisting them to execute the Business Plan to grow Manuka SA to 67 dairy units by 2023/24. Reporting to the CEO, the position supports the company operations by seeking out information that can be adapted to provide profitable and sustainable growth. The applicant must: • be able to recognise excellence in pastoral dairy farming and have an understanding of farm production models and systems • know where to source relevant information in NZ and other countries • have a high degree of computer literacy with particular emphasis on MS Excel and Power Point • be able to adapt to a rapidly growing business and work in a team environment • be prepared to learn Spanish • have excellent problem solving skills and proven ability in quantitative and qualitative analysis • have excellent communication skills, both written and oral • be prepared to commit for a 3 to 5 year period • be self-motivated and preferably hold an agri-based tertiary qualification Please forward expressions of interest or CVs to: Max Kennedy kennedys@xtra.co.nz Cell: 0274 973 835

Tractor/Machinery operator

Multiple Roles Pukemiro Station Training Farm ADB Williams Trust is a 1440ha operation with the main 930ha property, Pukemiro Station, located at Otope Road, 12km South East of Dannevirke. It is supported by a 385ha summer safe block located at Coonoor, 30 minutes southeast of Otope Road. This well-structured business is set up to include the Pukemiro Station Cadetship which is a two year farming cadetship accepting three cadets each year. Their vision is to help young men and women develop their careers in agriculture and foster them along that path.

Tuatahi Farming Partnership is a progressive and growing farming business formed in 2010 by two Maori Incorporations. The Partnership engages professional management and is governed by a Board of Directors. Tuatahi is seeking two high level Operations Managers for two of its three Stations located in the Central North Island. The Operations Manager will report directly to the General Manager.

For more information please contact Lloyd Brenssell on 027 2018 181, and send CV with application to: fernvale@farmside.co.nz

Moerangi/Oraukura Station is a sheep, beef and deer breeding operation with a bull finishing unit, 2572 eff ha running 25,350su. This property is farmed under a nitrogen cap being predominantly located in the Lake Taupo Catchment.

TradeMe listing #1731614706

Responsibilities - this is a working manager’s position with the following key areas of responsibility: • Development of Strategy directly associated with the farm unit in conjunction with the Executive Team and Board • Planning, executing, reviewing and reporting against farm targets • Operational Management – covering all areas including budgeting, targets, resource requirements and reporting • Financial Management and Control • HR – management, recruiting, training, mentoring • Asset Management • Identify Opportunities, analyse and implement

RUN OFF YOUR FEET?

The Applicants need to have demonstrated: • leadership skills working in a team environment • the ability to develop people including themselves • high levels of competency in all technical and financial aspects of pastoral farming with a high level of industry knowledge LK0093961©

Advertise your vacancy in Farmers Weekly Plus receive added value of online free of charge*

These roles are new positions within the Partnership due to current and future growth to strengthen and secure a high level management team for the future. This is a rare opportunity to join a major farming enterprise that has expansion in its sights. The position offers the successful candidates the prospects of significant career and skill development. Applications should be made directly to Tuatahi Farming LP General Manager, Barry Pope. Email:tuatahi@tuatahi.co.nz or phone 07 386 5751, 021 501 377.

The closing date for applications is Friday 14 September, 2018

LK0093911©

Accommodation is a 3-bedroom house at Ettrick. A competitive remuneration package to suit experience, including additional benefits.

Manunui Station is a hill country sheep breeding/finishing and cattle finishing operation, 1700 eff ha running 17,200su.

If you have a desire to teach, mentor and inspire young people, these roles will interest you!

RECRUITMENT & HR

Ideal experience would include: • Hill country tractor operating • Excavator operating experience preferable but not necessary • Diesel machinery knowledge preferable but not necessary • Record keeping is an important part of the position, the right candidate would be technology literate.

– Central Plateau

Block Manager – Reference #2469 As Block Manager of the Coonoor Block your primary focus will be to grow out the replacement ewe lambs; this is an integral part of the overall farming operation. Once grown through to 2-tooths they are sent back to Pukemiro Station; therefore your ability to reach the set KPI weights for the hoggets/2-tooths will be paramount. This position will also suit an individual who has a desire to teach and mentor people. A second year Cadet will come out to the property on a daily basis to assist with the running of the property and you will be charged with growing their practical farming skills and knowledge ensuring their passion for the primary industry continues to flourish. Your friendly, enthusiastic and approachable communication style and good planning skills will provide the platform for you to fully support the Cadets and share your learnings.

Applications close 5pm, Monday 3rd September 2018

Fernvale Genetics Ltd is recruiting for a skilled tractor and machinery operator to join a highly motivated team of young staff around Moa Flat. We run over five farms, covering varied land types in West and Central Otago. This position has a great deal of variety and would suit an individual who enjoys being part of a team.

Operations Managers

Farm Maintenance Manager – Reference #2468 Your primary focus in this role will be to drive the annual maintenance plan with your core responsibilities being farm maintenance, farm/ environmental enhancement and development, carpentry work and general tasks. In conjunction with the Farm Manager and Stock Manager you will be responsible for planning general farm maintenance tasks for the Cadets and driving this aspect of the training programme to ensure these are completed to a high standard. You will lead by example with your high skill level in fencing, tractor work, carpentry and general maintenance.

To find out more about these opportunities or to apply, please visit www.ruraldirections.co.nz or phone the Rural Directions team in confidence on 06 871 0450.

Ag jobs at your fingertips • www.farmersweeklyjobs.co.nz

Phone Debbie Brown 0800 85 25 80 or email classifieds@globalhq.co.nz *Available for one month or until close of application

LK0093909©

classifieds@globalhq.co.nz – 0800 85 25 80

LK0093907©

classifieds@globalhq.co.nz – 0800 85 25 80

VETMARKER

Classifieds

LAMB DOCKING / TAILING CHUTE

With automatic release and spray system. www.vetmarker.co.nz 0800 DOCKER (362 537)

LK0093733©

ANIMAL HANDLING

EARMARKERS

BIRDSCARER DE HORNER HOOF TRIMMER

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 CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance. Unbeatable pricing. Phone 06 835 6863. www.craigcojetters.com

FOR SALE

POWER CABLE We could save you hundreds of $$

HOMES FARM SHEDS SUBDIVISIONS PUMPS

SELLING

SOMETHING?

Prices include delivery to your door!

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

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

ATTENTION FARMERS 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 INTERESTED IN BEING certified Non-GMO or Organic? Questions? Visit our website: www. farmorganic.org

BIRDS/POULTRY LK0093222©

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

PH DEBBIE 0800 85 25 80

PULLETS HY-LINE brown, great layers. 07 824 1762. Website: eurekapoultryfarm.weebly. com – Have fresh eggs each day!!!

FARMERS

Livestock CALF TRAILER MATS SOFT, DURABLE, FREE draining rubber mats. Easy to clean. Call to order on 0800 686 287 – www. numat.co.nz

DOGS FOR SALE HUNTAWAY PUPS, 14 weeks, $250. Phone 06 863 9815. MASSIVE TWO DAY dog clearance sale! August 31st and September 1st, Opotiki. 70 dogs $500-$2500. 45 day exchangeable trial. Trade in your dog! By appointment only! www.youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553. WHATATUTU DOG SALE. CHANGE of date and venue. Saturday 1st September at Otara Station, 319 Whatatutu Road, Te Karaka, Gisborne. Sale starts at 12 noon. Enquiries Allen Irwin 06 862 3618 or email: toromirostation@ gmail.com TUX NATIONAL HANDY yard dog trial. Wanganui Centre. 14 & 15 September 2018. Papahaua Station Raetihi. New and novice competitors welcome. Enquiries and entries phone 027 262 3622. amyleemcdougal@ yahoo.co.nz - entries close 1 September.

DOGS WANTED

LK0093741©

• Do you need new farm tracks or upgrade existing ones? • Or have you metal that could be used for crushing? We do: • On site metal crushing • Metal supply and cartage • Upgrade existing tracks and drainage • Retaining wall construction • River protection and stream maintenance • All types of earthworks and metal contracting

12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195. QUICK EASY SALE! Buying 400 dogs annually South and North Islands! No trial or breeding required. No one buys or pays more! www.youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553. FOR ONLY $2.10 + gst per word you can book a word only ad in Farmers Weekly. Ph Debbie 0800 85 25 80.

Tim McColl Contracting Ltd

FARM MAPPING

Kiwitea, Feilding

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

Tim McColl, Owner / Operator

Ltd

Mobile: 027 446 3383 | A/hrs: 06 328 9851 Email: timmccollcontractingld@xtra.co.nz

All types of earthwoks and metal contacting

TH IN K P REB UILT

Notice of Election - DairyNZ Board of Directors - DairyNZ Directors Remuneration Committee Invitation for 2018 candidate nominations – two positions available In October, two elections will take place for DairyNZ Incorporated – one election for one farmer-elected director for the Board of DairyNZ Incorporated and a second election for one member of the Directors Remuneration Committee.

NEW HOMES

Registered levy-paying dairy farmers are invited to nominate candidates to fill these two positions.

SOLID – PRACTICAL WELL INSULATED – AFFORDABLE

All farmers paying a levy on milksolids to DairyNZ are eligible to stand for either election. An information pack outlining desired criteria and nomination requirements for the positions can be obtained from the Returning Officer.

Our homes are built using the same materials & quality as an onsite build. Easily transported to almost anywhere in the North Island. Plans range from

Nominations must be received by the Returning Officer by 12noon on Friday, 14 September 2018.

Elections

one bedroom to four bedroom

If more candidates than the required nominations are received, elections will be carried out by postal and internet voting using the STV (single transferable vote) voting method. Votes will be weighted by annual milksolids production. Voter packs will be posted on 1 October 2018 to all registered DairyNZ levy payers, with voting closing at 12noon on Tuesday, 30 October 2018.

First Home – Farm House

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

LK0093236©

Investment – Beach Bach

The DairyNZ Annual General Meeting will be held in Invercargill on Wednesday, 31 October 2018. Election results will be announced at the meeting. For further details contact the Returning Officer as below. Anthony Morton Returning Officer – DairyNZ Incorporated 0800 666 043 iro@electionz.com

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

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. E S T A B L I S H E D FURNITURE REMOVAL business for sale based in Taupo, 0274 525 301 for enquiries. HILUX ALLOY FLAT deck tray. $1500 ONO. Phone 027 499 4045. Waikato.

GOATS WANTED

WAIROA CATTLE SALE Thursday 30th August, 11am Start Opening entries: A/c Cricklewood Stn

100 2yr Ang Strs 60 1yr Ang Strs A/c Tangihau Stn 80 2yr Ang Strs A/c Mangatawhiti Stn 60 1yr Ang & Ang/Hfd X Strs A/c Te Tiki Stn 50 1yr Ang Strs A/c Pihanui Stn 40 1yr Ang Strs Grand opportunity to purchase home bred station cattle. Enquiries: Ian Rissetto 06 838 8604 / 0274 449 347 Mason Birrell 06 838 7091 / 0274 967 253 Hamish Forrester 0276 012 351

FERAL GOATS WANTED. All head counted, payment on pick-up, pick-up within 24 hours. Prices based on works schedule. Experienced musterers available. Phone Bill and Vicky Le Feuvre 07 893 8916. GOATS WANTED. All weights. All breeds. Prompt service. Payment on pick up. My on farm prices will not be beaten. Phone David Hutchings 07 895 8845 or 0274 519 249. Feral goats mustered on a 50/50 share basis. GOATS. 40 YEARS experience mustering feral cattle and feral goats anywhere in NZ. 50% owner (no costs). 50% musterer (all costs). Phone Kerry Coulter 027 494 4194.

GRAZING AVAILABLE HOGGET AND EWE GRAZING available. Eketahuna. Phone 06 375 8537.

HORTICULTURE

Helping grow the country

Classifieds

CLASSIFIEDS

REACH EVERY FARMER IN NZ FROM MONDAY Advertise in the NZ Farmers Weekly $2.10 + GST per word - Please print clearly Name: Phone: Address: Email: Heading: Advert to read:

NZ KELP. FRESH, wild ocean harvested giant kelp. The world’s richest source of natural iodine. Dried and milled for use in agriculture and horticulture. Growth promotant / stock health food. As seen on Country Calendar. Orders to: 03 322 6115 or info@nzkelp.co.nz HERITAGE APPLE TREES. Farm pack specials. www.tastytrees. co.nz – Phone 09 408 5443 or text 027 346 7645.

LIVESTOCK FOR SALE RED DEVON BULLS, R1. Pure bred. Closed herds/ closed breeding groups. BVD tested negative and vaccinated. Quiet and easy to handle. See trademe 1715598465.

PROPERTY WANTED HOUSE FOR REMOVAL wanted. North Island. Phone 021 0274 5654.

WEED SPRAYING BOOM SPRAY. Broad acre, brush weed control, total vegetation. Hilux gun and hose units x 2 and mist blowers for gorse, broome, blackberry control. Covering Lower North Island. Phone 06 375 8660 or 021 396 447, email kingbilly718@gmail.com

WORK WANTED HILL COUNTRY FARM Management position wanted by hard working couple in Marlborough/ Tasman areas. Email: runcountry14@gmail.com or phone 022 0955 465.

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

livestock@globalhq.co.nz – 0800 85 25 80

STOCK REQUIRED

FARMERS WEEKLY – August 20, 2018

PINE PARK RAMS

CLEARING SALE – PLANT

SIL EWES or EWES or LAMBS R2 YR STEERS 400-500kgs

FRIDAY 31ST AUGUST Commencing at 1:30pm A/- COVENEY CONTRACTING 60 B Gap Road East No 1 RD, Winton

R2 YR ANG & XBRED HEIFERS

R1 & R2 YR FRIES BULLS

R1 YR ANG & ANG X STEERS

SIL Carcass Scanned FE Testing Edward Sherriff 06 327 6591 021 704 778

Carrfields Livestock have received instructions from Coveney Contracting to offer for sale the following plant due to a downsizing of the contracting business.

www.dyerlivestock.co.nz

Ross Dyer 0274 333 381 A Financing Solution For Your Farm E info@rdlfinance.co.nz

In-Milk Cows, Heifers & Autumn Calvers We have various lines of In-Milk cows/heifers and Herds available for delivery from now through to January. This also includes lines of Autumn calvers.

Wanted for Immediate Delivery Rising 2yr and weaner heifers.

Wanted for June Delivery We have strong early enquiry from buyers wanting to secure Herds and In-Calf Heifers for June 2019 delivery including sought after A2A2 cows and heifers. Call Kaneo or Webby for more info.

Buyer Register LK0093964©

Or email: paul.kane@carrfields.co.nz philip.webb@carrfields.co.nz

www.carrfieldslivestock.co.nz

2013 Fendt 828 (4480 hours) 2014 Case Puma CVT230 (3630 hours) Overum 6 Furrow plough Overum 5 Furrow plough Kuhn 5 mtr Power harrow Kuhn 3 mtr Power harrow Kuhn 3 mtr Integra drill 2015 Cross engineering fodderbeet destoner washer & chipper Austin Roller c/w Hatzenbichler airseeder 7 mtr leveller 6 mtr leveller 6 mtr leveller & harrows 4 ag Supergrubber 300 3 mtr Case discs 3 mtr Howard rotary hoe 2.5 mtr rotary hoe 14 foot chain harrows 10 x 5 trailer 1500 ltr diesel tank c/w motor 2000 ltr diesel tank and stand Willet 2 furrow swamp plough Tandem axle hay trailer 7 mtr double axle transport trailer for drill etc PTO Auger 3 bay dog kennels Comet P48 spray unit Steel bridge frame PTO Lincoln welder generator Assortment of tractor tyres 1990 Hilux 4x4 D/Cab (335,000km) 2009 BT50 D/Cab (270,000km) 2012 Ranger D/Cab (230,000km) 2003 Compass Rallye 634 Caravan Suzuki Eiger 4x4 (21,000km)

SALE TALK

YEARLING BULL & HEIFER SALE 12 noon Tuesday, 11th September, 2018 Karamu, 662 Rangitatau East Rd, Wanganui

ANGUS

YEARLING BULL & HEIFER SALE

ON OFFER: 30 yearling bulls • 35 yearling heifers

12 noon Tuesday, September 25, 2007

A wife was making breakfast of fried Karamu, 662 Rangitatau East Rd, eggs for her husband. Wanganui ENQUIRIES TO: Suddenly, her On offer: Lindsay Johnstone 027 445 3211 husband burst into the 25 yearling bulls kitchen. 30 yearling heifers, which Lin will Johnstone be sold in lots027 445 3213 “Careful,” he said, PGG WRIGHTSON AGENTS: “CAREFUL! Put in  All cattle BVD & EBL tested trainedStewart 027 280 2688 some more butter!  All cattle electric fence Callum Oh my gosh! You’re  TB status C10 Ken Roberts 027 591 8042 cooking too many at  Vet inspected once. TOO MANY!  Quiet temperament Turn them! TURN INQUIRIES TO: / Heather Dell Sale THEM NOW! WeLin Johnstone Stokman Lindsay Johnstone 9795Yearling Angus Bulls need more butter. 06 342 9833 Selling 06-34285 W & K AGENTS WHERE are we Blair Robinson Don Newland 35 18mth Commercial Angus Heifers going to get MORE027 491 9974 027 242 4878 BUTTER? They’re Wednesday going to STICK! Careful. CAREFUL! 19 September I said be CAREFUL! 2018 - 1pm You NEVER listen NEW!!!!!! - Sale at Farm to me when you’re 1708 Te Kopia Road cooking! Never! Turn Waikite Valley them! Hurry up! Have Rotorua you LOST your mind? Don’t forget to salt them. You know you always forget to salt NZ Breed them. Use the Salt. Average EBV’s on * Well grown - suitable for heifers Average our Sale Bulls USE THE SALT! THE or cows SALT!” ENQUIRIES TO: Calv Ease +1.3 +.0 The wife stared at him. CHRIS MCRAE (CARRFIELDS LIVESTOCK) Gestation Lgth -5.5 -3.9 * Excellent temperments “What in the world is 0274 342 169GroWTH & meAT mIlK & mATernAl feeD effICIenCY Birth Weight +2.2 +4.3 wrong with you? You STEVEN COVENEY 0274 313 424 * BVD Tested and vaccinated 400 Day +85 +77 think I don’t know 600 Day +108 +106 * C10 status - EBV recorded how to fry a couple of Self Replacing +146 +108 eggs?” * Stokman Bulls Angus Pure +165 +127 The husband calmly FOR MORE - Fertility and semen tested replied, “I just wanted LIVESTOCK Call for a catalogue or view - i 50K tested for enhanced EBVs to show you what it ADVERTISING rd on www.angusnz.com 33 AnnuAl on fArm Bull feels like when I’m SAle th driving!” PGG Wrightson Cam Heggie 027 501 8182 Mark & Sherrie Stokman Neil Heather

LK0093857©

230-280kg

RANUI

FE Coopworth FE Romney x Coop Texel x Coopworth Suffolk Suftex Texel x Poll Dorset

LK0093719©

STORE LAMBS 28-40kg

To register txt your name with your requirements and email to: Kaneo: 027 286 9279 or Webby: 027 801 8057

Livestock

CELEBRATING 50 YEARS OF BREEDING POLL HEREFORD BULLS FOR THE BEEF INDUSTRY 1962 - 2012

SEE PAGE 41

Your Angus Bull Source

LK0093963©

TE TAUMATA POLL HEREFORDS

June 7

2012 at 12pmSam Wright 027 443 0905

To view our bull sale catalogue PREDICTABLE PROFITABLE pictures of sale lots go to: PERFORMANCE GENETICS www.tetaumata.co.nz

Pete Henderson 027 475 4895 Steve Wattum 027 493 4484 & Central Livestock: Shane Scott 027 495 6031

Romney and Border Leicester Rams free Taking DelIVerY orders now BVD VACCInATeD

161 Hossack Rd Ext Paradise Valley Road Rotorua Rotorua 07 3332446 • 0276404028 027 421 4050 • 07 357 2142 mtkiwi@farmside.co.nz neil-heather@xtra.co.nz

Young Herd Sire Te Taumata Banjo 10302

LIVESTOCK ADVERTISING TB C10 CArCASe SCAnneD

Beef Industry Driven Performance from a true dryland farm POLL HEREFORDS Est. 1962 Alistair & Eileen McWilliam Ph 06 372 7861 • www.tetaumata.co.nz

PHONE Alistair & Eileen 06 372 7861 or Jim 06 372 7718 Email: studstock@tetaumata.co.n NIGEL www.tetaumata.co.nz 150 Te Kopi Road, RD 4 Masterton 5884, RAMSDEN 0800 85 25 80

Te Taumata Genetics

craigmore

polled herefords YEARLING BULL SALE

Monday 10th September 2018, at 12.30pm Luncheon available

On A/C D.B & S.E Henderson At the stud property: 429 Rukuhia Road, RD 2, Ohaupo 93 Registered Well Grown Bulls All bulls SNP DNA tested to verify parentage and improve accuracy of EBVs

Craigmore Hereford bulls carry the Hereford Blue tag.

Lot 1: Craigmore Anzac 17231

Delivery can be delayed until 1st October 2018

For further information or inspection, please contact: Vendors: David 07 825 2677, 021 166 1389 or the selling agents: PGG Wrightson: Vaughan Larsen 027 801 4599, Cam Heggie 027 501 8182

LK0093837©

We have bulls that will suit beef and dairy farmers www.craigmoreherefords.co.nz

Livestock

FARMERS WEEKLY – August 20, 2018

livestock@globalhq.co.nz – 0800 85 25 80

SERVICE BULLS BUY NOW. PAY LATER.

HUKAROA

With 0% interest on your Service Bull purchases with Farm Source Livestock Bull Plan.*

POLLED HEREFORDS

FOR BUTTS, NUTS AND GUTS

*T&Cs apply. No repayments due until 31 January 2019. A $50 admin fee applies.

ANNUAL ON-FARM BULL SALE

Friday 7 September 2018

on your Service Bull purchases with Farm Source Livestock at auction or in paddock during Sept - Nov 2018. Fonterra suppliers only. T&Cs apply: For full terms & conditions visit NZFARMSOURCE.CO.NZ/LIVESTOCK

Kokonga East Road, off Waikaretu Valley Road, RD5 Tuakau Kokonga Farm is approximately 40 minutes from Ngaruawahia, 50 minutes from Mercer, Rangiriri and Huntly via Glen Murray.

LIVESTOCK ADVERTISING

12 NOON - UNDER COVER PAULSEN ROAD, WAERENGA TE KAUWHATA, NORTH WAIKATO

Bred, reared and raised naturally on strong hill country 93 quiet, easy-calving Hereford bulls 2 year olds & yearlings

FREE GRAZING UNTIL 1 OCTOBER 2018 BVD tested clear and twice vaccinated Tb C10

SECURE YOUR SERVICE BULLS NOW

PHONE NIGEL RAMSDEN 0800 85 25 80

Talk to your local Livestock Agent, on 0800 548 339 or email NZFSS.LIVESTOCK@FONTERRA.COM

MEAT-MAKERS Inaugural Sale

LK0093658©

PLUS EARN

ALL BULLS FERTILITY & SEMEN TESTED Enquiries to: Dean

& Lisa Hansen 07 826 7817 or 0274 40 30 24

TURANGANUI ROMNEYS

September 13, 2018 at 2PM 216 Wiltons Road Carterton

3/4 Angus 1/4 Simmental - TAG 7350

3/4 Simmental 1/4 Angus - TAG 7415

“Since using Turanganui rams the incredible mothering ability of the ewes and survival traits has enabled us to achieve 150% to sale on steep exposed coastal terrain”. 3/4 Simmental 1/4 Angus - TAG 7407

Tony, Joy and Phil Redwood Okoha, Anakoha Bay, Marlborough Sounds

3/4 Angus 1/4 Simmental - TAG 7398

40 Years of Proven Performance 30 Top Quality Simmental Angus Bulls

Holmes Warren

06 307 7802

Michael Warren

06 307 7841 0274 465 312 RD 2 FEATHERSTON 5772

Todd Candy

0274 795 006 LK0093698©

For more information or a catalogue contact us: John McFadzean 06 - 372 - 7045 Johnie McFadzean 06 - 379 - 7401 / 027 - 429 - 5777 Steve Olds PGG Wrightson 06 - 375 - 8060 / 027 - 595 - 3387

MARKET SNAPSHOT

Dairy

Grain & Feed

MILK PRICE FORECAST ($/KGMS) 2018-19

SHEEP MEAT

DOMESTIC

FONTERRA 2018-19

AGRIHQ 2018-19

7.00

6.40

AS OF 24/05/2018

AS OF 09/08/2018

MILK PRICE COMPARISON

Last week

Prior week

Last year

Canterbury (NZ$/t) 421

340

NI mutton (20kg)

5.15

4.10

419

353

SI lamb (17kg)

8.10

8.05

6.65

Feed Barley

414

413

361

SI mutton (20kg)

5.30

5.40

4.15

219

Export markets (NZ$/kg) 8.71

8.68

8.33

6.5

Maize Grain

433

418

6.0

PKE

325

324

220

WMP GDT PRICES AND NZX FUTURES

324

UK CKT lamb leg

7.5

INTERNATIONAL Last week

Prior week

Last year

Wheat - Nearest

302

313

234

Corn - Nearest

218

219

201

578

412

354

6.5 5.5

CBOT futures (NZ$/t)

4.5

552

483

343

Feed Wheat

549

479

273

2500

Feed Barley

529

489

327

2000 Oct 17 Jan 18 Apr 18 C2 Fonter r a WMP

PKE (US$/t) Ex-Malaysia

147

138

South Island 17kg lamb

8.5 7.5

NZ venison 60kg stag

600

$/kg

ASW Wheat

3000

Jul 18 Oct 18 NZX WMP Futur es

North Island 17kg lamb

8.5

* 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.

APW Wheat

3500 US$/t

325

Australia (NZ$/t)

4000

6.5

500

4005.5 300

4.5 Oct Oct

Dec

Prior week

vs 4 weeks ago

WMP

2940

2960

2950

SMP

1995

AMF

5675

Butter

4750

Last week

Prior week

Last year

Last yr

Aug

This yr

Last week

Prior week

Last year

1935

Urea

503

485

477

3.19

3.10

2.82

5675

5730

Super

304

309

Nth Isl 37m

3.40

3.20

3.05

4975

5050

DAP

702

Sth Isl 35m

4.55

3.10

750

CANTERBURY FEED PRICES

350

c/k kg (net)

250

2950 Nov

Latest price

Dec

Jan

Feb

4 w eeks ago

Sharemarket Briefing GLOBAL markets fell in unison last Monday following the financial crisis in Turkey that saw its currency plunge to an alltime low. It remained a bumpy week for markets as trade wars persisted. However, despite the turbulence, the ASX 200 hit a fresh decade high following a recent surge in the healthcare sector. Reporting season is in full swing both in New Zealand and Australia, with a number of heavyweights reporting this week. There are a number of disputes causing friction between the United States and Turkey at the moment, including diverging interests in Syria and US objections to Ankara’s ambition to buy Russian defence systems. Turkey also detained US pastor Andrew Brunson. Brunson is accused of backing a coup attempt against the Turkish president in 2016 and is being tried on terrorism charges, charges he has denied. Last week Trump doubled tariffs on imports of Turkish steel and aluminium and said they won’t remove the tariffs even if the pastor is freed. The Trump administration is committed to bringing Brunson home and has threatened further action if required. Market commentary provided by Craigs Investment Partners

S&P/NZX 50 INDEX

8999

S&P/NZX 10 INDEX

8749

150 Aug 14

NZ venison 60kg stag

4.5

600

$/kg

3000

Coarse xbred wool indicator

5.5

NZ$/t

US$/t

Aug

Jun

Coarse xbred ind.

450

16590

Jun

(NZ$/kg)

3050

S&P/FW PRIMARY SECTOR EQUITY

Apr

NZ average (NZ$/t)

WMP FUTURES - VS FOUR WEEKS AGO

Oct

Apr

WOOL

* price as at close of business on Thursday

Sep

Feb

FERTILISER

Last price*

2900

Feb

5‐yr ave

NZX DAIRY FUTURES (US$/T) Nearby contract

6.85

421

7.0

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

8.20

422

Waikato (NZ$/t)

Jun 18 Aug 18 AgriHQ Seasonal

Last year

8.25

Feed Wheat PKE

Apr 18 AgriHQ Spot Fonterra forecast

Last week Prior week

NI lamb (17kg)

Milling Wheat

7.5

5.5 Feb 18

Slaughter price (NZ$/kg)

c/kkg (net)

$/kgMS

Sheep

$/kg

Aug 15 Feed barley

Aug 16

Aug 17 PKE spot

3.5

400 300

2.5

Oct

Jul

Dec

Sep

5‐yr ave

Feb

Nov

Apr

Jan

Last yr

Jun

Mar

Aug

May

Jul

This yr

Dollar Watch

Top 10 by Market Cap Company

YTD High

YTD Low

Fisher & Paykel Healthcare Corporation Ltd

14.96

15.50

11.92

Auckland International Airport Limited

6.81

6.99

6.11

Meridian Energy Limited The a2 Milk Company Limited Spark New Zealand Limited Ryman Healthcare Limited Fletcher Building Limited Mercury NZ Limited (NS) Contact Energy Limited Air New Zealand Limited (NS)

3.14 10.82 3.93 12.87 6.90 3.37 5.81 3.32

3.22 14.62 3.94 13.20 7.96 3.45 5.96 3.43

2.75 7.66 3.28 10.27 5.74 3.08 5.15 2.86

Listed Agri Shares

500

5pm, close of market, Thursday

Company

YTD High

YTD Low

The a2 Milk Company Limited

10.820

14.620

7.660

Comvita Limited

5.680

9.210

5.600

Delegat Group Limited

9.950

9.990

7.510

Foley Family Wines Limited

1.480

1.610

1.400

Fonterra Shareholders' Fund (NS)

4.880

6.660

4.800

Livestock Improvement Corporation Ltd (NS)

0.730

3.000

0.700

New Zealand King Salmon Investments Ltd

2.870

2.990

1.840

PGG Wrightson Limited

0.680

0.720

0.560

Sanford Limited (NS)

7.600

8.500

7.350

Scales Corporation Limited

4.690

5.000

4.350

Seeka Limited

6.400

7.010

5.800

Synlait Milk Limited (NS)

10.950

11.650

6.260 3.100

T&G Global Limited

3.100

3.300

Tegel Group Holdings Limited

1.140

1.240

0.810

S&P/NZX Primary Sector Equity

16590

17332

14417

S&P/NZX 50 Index

8999

9084

8059

S&P/NZX 10 Index

8749

8848

7640

WORLD political events This Prior Last NZD vs could push the kiwi week week year sharply up or down and USD 0.6601 0.6608 0.7317 the outcome is full of EUR 0.5796 0.573 0.6207 uncertainty and risk, BNZ 0.9068 0.8962 0.9214 strategist Jason Wong says. AUD GBP 0.5187 0.515 0.5669 United States President Donald Trump is due to Correct as of 9am last Friday announce early next month whether he will extend tariffs on Chinese imports. If he does, the fallout could push the New Zealand dollar down a couple of cents against the US dollar. If he doesn’t the kiwi could rise by the same amount. Trump is playing hardball with China ahead of the US mid-term elections in November because that is politically popular. Once the elections are done he could become more conciliatory. “So, depending on what happens, you could have the dollar at 0.63 at the end of September and 0.68 or 0.69 at the end of December. You can’t put too much emphasis on forecasts at the moment.” Elsewhere in this issue, the BNZ is quoted with higher NZ$/ US$ forecasts at around the 0.70 level. Wong said they are older forecasts based on a best-case scenario and about to be revised, reflecting the downside risks, both domestic (weak business confidence and dovish RBNZ) as well as the global questions. There are historic very high levels of short, speculative positions in the kiwi, which normally might suggest a potential recovery but higher US interest rates than NZ rates make that more unlikely now, he said. Alan Williams

Markets

WAIKATO PKE

NI SLAUGHTER LAMB

SI SLAUGHTER MUTTON

($/T)

($/KG)

R2 HEREFORD-FRIESIAN STEERS, 320-410KG, AT TARANAKI

($/KG)

($/KG LW)

8.25

325

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

5.30

3.36-3.44

high lights

$231-$234

$3.20-$3.40/kg

5-year Romney ewes, scanned 175-189% at Stortford Lodge

R1 Hereford-Friesian steers, 270-325kg, at Wellsford R1 Steer Fair

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

Last week

Prior week

Last year

NI Steer (300kg)

5.70

5.60

5.50

NI Bull (300kg)

5.40

5.35

NI Cow (200kg)

4.50

4.35

SI Steer (300kg)

5.65

5.55

5.35

SI Bull (300kg)

5.30

5.05

SI Cow (200kg)

4.50

4.30

US imported 95CL bull

6.63

6.68

6.74

US domestic 90CL cow

7.09

7.00

7.04

ME FIRST: Store lambs at the Coalgate sale yards in 2015.

Export markets (NZ$/kg)

North Island steer (300kg)

6.0

$/kg

5.5 5.0

4.0 South Island steer (300kg)

6.0

NZ venison 60kg stag

c/k kg (net)$/kg

5.5

600 5.0

500 4.5 400

300 4.0

Oct Oct

Dec Dec

Feb Feb

5‐yr ave

Apr Apr

Jun Jun

Aug Aug

Last yr

This yr

VENISON Slaughter price (NZ$/kg)

Last week Prior week

Last year

NI Stag (60kg)

11.20

9.25

NI Hind (50kg)

11.10

9.15

SI Stag (60kg)

11.40

9.25

SI Hind (50kg)

11.30

9.15

New Zealand venison (60kg Stag)

c/k kg (net) $/kg

11 10

NZ venison 60kg stag

600 9 500 8

400 7

300 6

Oct Oct

Dec Dec

Feb Feb

5‐yr ave

Apr Apr Last yr

Jun Jun

Aug Aug This yr

Exciting week at the sale yards

ALE yards around the country were busy for a variety of reasons last week, with the likes of Wellsford and Taranaki holding cattle fairs, and Feilding holding their annual Feilding/Marton Hogget Fair. Record prices were hit at the hogget fair, with the top male lines selling to $240-$250. NORTHLAND NORTHLAND The market at KAIKOHE last Wednesday tracked along at similar levels to the week prior with early spring demand picking up, PGG Wrightson agent Vaughan Vujcich reported. Medium R2 steers traded at $2.80$2.92/kg, though small numbers of better types managed to sell to $2.90-$3.02/kg. Beef-cross and

Friesian bulls earned $2.75/kg while good demand for beef-cross heifers meant they firmed to $2.80-$2.90/kg. R1 steers sold at similar levels to the previous week while the heifer pens offered up a few feature lines of beefFriesian, which met a keen bench and made $900-$920, $3.05-$3.10/ kg. Bulls in this age group were mixed and beef-cross mainly traded at $3.10$3.20/kg, though other off-bred lines dropped to $2.85/kg. The cow market continued its strong run with empty lines selling up to $2.20/kg, and a line of heavy, vetted-in-calf dairy cows, $2.58/kg. This year heifers were split out from the boys at the WELLSFORD yearling fair, with these being sold the following day. Similar numbers of buyers made the trip in. R2 heifers loosely sold in two cuts.

The 415-470kg lines were mainly Hereford-Friesian or Hereford-cross, all making $2.90-$3.00/kg. Lighter pens, 315-360kg, came in a variety of different breeds, but that didn’t appear to make difference on pricing, usually making $2.75-$2.85/kg. Two lines of 355-375kg Hereford-Friesians were stronger than the rest though at $2.90-$2.95/kg. Action was mainly centred around the yearling lines. Breed had little bearing on the 255-285kg heifers, which frequently made $3.00$3.15kg, $800-$875, though three lines of 250-285kg Charolais-cross were $3.10-$3.30/kg. The next band were 225-245kg which sold for $735$790, $3.15-$3.30/kg on all but the odd occasion. Exotics and straight

Continued page 46

29, 2017

NOVEMBER

EYE LIVESTOCK TTLE TARANAKI CA

WHAT’S HAPPENING AT YOUR SALEYARD?

2.47

2.96

2.86

2.73

Store cattle

not enough475n good but while Angus-Friesian, Localisededrai $2.82/kg, $2.74-$2.77/ off the pace at on a quiet note VIEWPOINT

Suz Bremner

225 - 245KG

310KG

350 - 415KG

400 - 505KG

1-YEA R HEIFE BEEF/ DAIRY

1-YEA R STEER BEEF/ DAIRY

2-YEA R STEER BEEF/ DAIRY

tallies

Weaner 13

Steer Heifer

1-year 112

2-year+ 34 9

Total 159

2-YEAR STEER Dev x Ang/Fr Ang/Fr Ang/Jer Ang/Jer Here/Fr

Jer

1400

540 475 - 506 401 - 445 366

M/G M

546 492 377

2 R

2-YEAR HEIFE Ang/Fr

Here/Jer Fr & Fr x

M/G

Jer x

Ang/Fr Here/Fr

M/G

L/M

530 370 467 315 451 320

4.0

$/kg

$/hd 1140

452

Fr x

Weight

Cond.

Tally

1300 - 1400 1090 - 1200 940 1542 1220 600 1455 910 1285 800 1060 400

3.5

2.52

3.0

2.59

2.5

2.74 - 2.77 2.70 - 2.72

2.0 100kg

200kg

300kg Steers

500kg 400kg Heifers

2.82 2.48 1.59 2.75 2.46 2.75 2.54 2.35 1.25

ph 0800 85

info@agrihq.co.nz

600kg

2.57

SUBSCRIBE TODAY AT AGRIHQ.CO.NZ/FARMER

agriHQ.co.nz

Beef/Dairy

STORE CATT

Receive comprehensive liveweight-based results from the entire sale even when you can’t make it there yourself. Sign up to LivestockEye reports and keep your head in the game.

0800 85 25 80

3 Bull ed , were November finish apart from a doozy 506kg s-Jersey, 401-445kg, return 297 Cow 62 Angu sale, 169 upted the kg. -$2.77/kg. at the Taranaki 19 m that interr Total and two $2.74 of a thunderstor a mixed bunch cattle were Heifers were reached A total of 340 auctioning. cons isted beef-Friesian gh main ly small lines of other lines well below tallies Total penn ed, thou three over Prime cattle all Cow just with /kg 15kg, with Bull Heifer 40 of smal l lines localised $2.75 Ex-service Red bulls, 688-7 Steer 20 ite the odd /kg. 1 getting that. 10 head. Desp 19 ged $2.94-$3.00 and some areas hit and itions on mana had to be quite light to thunderstorm Lines yesterday, cond steer pens, up to 25mls drying out in the 1-year n tallies rties are still old effect pass $3.00/kg Hereford-Friesia Store cattle most prope ever-popular causing a two-f g to but the a few occasions. 1500 on fast, which is comin that cattle ge 10kg, quality did mana h were 308-3 them. of more mixed offered thoug buyers to greet at $2.92- 1200 sale and fewer sold over a very tight Mostsold on a steady market 900 sian, and er Angus-Frie Prime steers what was a /kg, with heavi s. -$2.88/kg on 600 is tight. $2.97 g similar value range of $2.83 as processor space/kg. 335-381kg, makin1-year heifers could 300 softer market $1.75-$1.82 20-Dec The best the 6/kg for 6-Dec -$2.5 0 Boner cows made pens included some $2.52 22-Nov This year age was 8-Nov this was Last year The 2-year steer albeit in very small man n, but again 5-yr ave riesia y, ord-F nice lines of qualit best of the bunch Heref tion of the quality. the reflec a and at , ers, 546kg numb ($/kg) ord-Friesian, steers and heifers was three Heref

25 80

grihq.co.nz

web agrihq.co.nz

email info@a

2398HQV2

4.5

Markets

46 FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018

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Hereford’s made up the strongest end of this range. Interest in anything lighter was decided by its quality, where the better 185-215kg heifers were $675-$755, $3.45$3.60/kg.

bodied Hereford-Friesian, 107kg, made $550. Heifer prices were strong. Good R1 Angus, 345kg, made $3.06/kg, $1055, and lighter Hereford-Friesian, 186kg, $740.

AUCKLAND AUCKLAND Demand for finished cattle is very strong but few available, and that meant increased auction prices at PUKEKOHE on Saturday August 11. Early spring demand for store cattle also continued to improve. Heavy prime heifers were the highlight, with 551kg pushing to $3.10/kg, outpricing the steers which reached $3.06/kg for 526kg. Second cuts of both the steers and heifers, 489-493kg, made $2.90-$2.98/kg. Boner cows were once again variable with lesser-bred lines, 477kg, making $1.76/kg, though better yielding types sold up to $2.10/kg. Bids came freely in the store pens and R2 steers, 418438kg, traded at $2.87-$3.01/ kg, while heifers, 366-468kg, returned $2.84-$2.90/kg. Medium 15-month steers, 346-360kg, earned $940$1060, though traded under $3.00/kg, with 332kg heifers very similar at $960. Light R1 heifers, 218-219kg, made $635-$715. Demand was solid for crossbred weaner steers and a line of 141kg sold for $710, putting them at $5.02/kg. Other lines, 145kg, made $505. Heifers, 115kg, also exceeded $5.00/kg when they sold for $590, while 108kg returned $435.

WAIKATO With sale day at FRANKTON coinciding with the PPTA teachers strike last Wednesday buyers were joined by a few country kids for the day. It was a solid sale. R2 Hereford-Friesian heifers, 415-456kg, were steady at $2.87-$2.89/kg, while Hereford-cross, 387-395kg, softened to $2.86-$2.89/kg. A consignment of autumnborn R2 Hereford-Friesian heifers, 314-332kg, were well received and managed a solid $2.76-$2.83/kg. Beef bred R1 steers. 222-232kg were steady at $760-$765, with dairy blood lines, 211-240kg, softer at $745-$760. Ten 236kg Angus heifers found new homes at $795, and an annual draft line of purebred Hereford, 149231kg, were a highlight at $590-$790. Dairy based lines dominated the R1 bull pens and 173-249kg traded at $585-$670. Autumn-born weaner Hereford heifers, 92113kg, sold to $340-$427, and Hereford-Friesian, 101-116kg, $432-$530. Hereford-cross bulls, 106-110kg, softened to $365-$530, though HerefordFriesian, 112kg, and Friesian, 132kg, improved to $650 and $635 respectively. Lighter Friesian, 80-84kg, managed $280-$320. The prime steer market improved with Hereford, 565637kg earning $3.10-$3.12/ kg, and Hereford-Friesian, 578-623kg, fetching $2.96$3.11/kg. Prime heifers were very well presented and strong local trade demand pushed prices along, all heifers 477506kg traded over a tight band of $2.92-$2.96/kg.

COUNTIES COUNTIES Sheep prices took another jump at TUAKAU last week, with the best prime lambs selling up to $214, Karl Chitham of Carrfields Livestock reported. Light-medium primes sold from $150 and store lambs made $90-$141. Ewe prices were also strong. The top prime ewes earned $190 and good-medium, $140-$173. Steer and heifer prices lifted by 10c/kg at last Wednesday’s prime cattle sale, although numbers were fairly limited. The best of the prime steers, a 720kg Hereford-Friesian lot, sold at $3.15/kg, with good trade steers making $2.85-$3.04/kg. Heavy heifers, 450-550kg, traded at $2.90$3.05/kg and exotic beef cows, 745kg, $2.68/kg. Heavy, well-conditioned Friesian cows fetched up to $2.24/kg, and lighter boners sold from $1.70/kg. Another small yarding meant last Thursday’s store cattle sale was over fairly quickly, but with spring just around the corner and a reasonable bench of buyers on hand, the market for the better cattle was firm. The yarding included a wide range of smaller lots. Most of the good Hereford-Friesian R2 steers, 400-450kg, traded at $3.00-$3.13/kg. Weaner steers were in short supply. Red-

BAY OF PLENTY BAY OF PLENTY Temperamental weather did not dampen demand at RANGIURU last Tuesday, with all classes bar the boner cows showing improvement. The sheep yarding was mostly lambs and two regular buyers dominated. Prime lambs sold to $195.50, while store types ranged from $126 up to $177. Kicking off with the prime cattle in the rostrum there was a noted lift for local trade types. HerefordFriesian heifers, 454-474kg, lifted to $2.97-$3.06/kg, and Simmental-cross, 490kg, $3.12/kg. The one market to show a softening was the boner cows as Friesian, 415-475kg, eased to $2.00/ kg. A line of R3 South Devon bulls made $2050, $3.17/kg. The pick of the R2 steers were Hereford-cross, 342-397kg, $3.01-$3.10/kg, though other lines easily surpassed $3.00/kg as just one pen dropped below $1000. Heifers were limited and all Hereford-cross and Hereford-Friesian traded at $2.85-$2.91/kg. The R1 section kicked

off with a consignment of Hereford-Friesian steers and 260-272kg made $870-$890, $3.27-$3.35/kg, while 240kg sold to $840, $3.50/kg. Per head budgets meant the lighter end of the HerefordFriesian pens exceeded $4.00/ kg. Traditional heifers featured as an annual draft consignment was penned. Angus & Angus-Hereford, 284-294kg, made $970-$1010, $3.43-$3.44/kg, while straight Angus, 260kg, fetched $950, $3.65/kg. However the red heifers, 278kg, exceeded those levels at $1095, $3.94/kg. TARANAKI TARANAKI It was the older cattle’s time to shine at the August cattle fair at TARANAKI last Wednesday, though R1 cattle still had a very good following. 300 R2 steers sold on a very strong market. BeefFriesian, 323-411kg, lifted to $3.34-$3.44/kg, while AngusFriesian, 420-544kg, sold to $3.12-$3.21/kg. Herefordcross, 350-431kg, returned $3.13-$3.29/kg. Heifer prices also took a lift in the older pens and with weights fairly consistent most fell in a 330350kg range. At this weight 10 Hereford-Friesian sold for a premium of $3.31/kg, while Charolais-cross came in at $3.03-$3.12/kg, and AngusFriesian $2.97-$3.04/kg. In the R1 cattle exoticcross steers, 233-270kg, sold up to $4.03-$4.13/kg. Angus-Friesian, 205-264kg, fetched $790-$930, with the lighter end up to $3.85/kg. A consignment of well-bred Hereford-Friesian heifers, 304335kg, sold for $965-$1030, while Angus-Friesian, 194226kg, returned $650-$750.

POVERTY BAY POVERTY BAY Options were very limited at MATAWHERO. Heavy male and ram store lambs were $175.50-$182 while heavy and good ewe lambs made $152-$170.50. Good ram lambs made $156. Prime ewes all made $134-$140.50, while a single pen of heavy prime lambs took top dollar at $206. HAWKE’S BAY HAWKE’S BAY The talking point of the STORTFORD LODGE sales last week was the high prices paid for scanned-in-lamb ewes while all lambs continue their strong run. Just 20 prime cattle were offered last Monday. Fifteen of those were 615kg in-calf Angus & AngusHereford cows and they sold at $2.50/kg. Plenty of support was on the rails in the sheep section and with throughput declining there was more pressure put on buyers. The lamb market was exceptionally strong with lifts shown right across the board. More of the lambs were heavy types and at least $171 was needed. Top price of $230 was shared between a line of very heavy ram lambs and two very heavy mixed sex. Other very heavy male and ram lines strengthened to $206.50-$229, as did heavy lines earning

$180-$211. Ewe lambs were equally as strong with the seven top lambs returning $223.50. Other very heavy lines lifted to $201-$212, and heavy, $192.50-$209. Good types were solid at $185-$191. In the ewe market top types lifted while very good to lighter ewes were steady to easing. Very heavy types strengthened to $170-$187 and heavy $150-$160. Very good lines were steady at $149-$149.50 while medium and good types softened to $122-$127. The lighter end also eased to $88-$115. The cattle on Wednesday met plenty of demand. R2 lines were scrutinised closely, 361kg Angus and 344kg Angus-cross heifers were solid returning $3.02/ kg and $2.98kg respectively. Nineteen Simmental-cross yearling heifers, 265kg, fetched $930, with Angus, 217-315kg, earning $760-$860. A consignment of specially advertised R1 Friesian bulls was drafted into two lines with the first 22 head, 237kg, managing $770, and their lighter brothers, 225kg, right on their tails at $760. Out in the sheep section the lamb market was very strong, as were ewes with lambs-at-foot. However, scanned-in-lamb ewes were the big talking point. Ewes with scanning percentages of 175-189% earned $231-$240, and lines scanned at 125% also managed strong returns at $189. Dry ewes made solid returns and 2-4 tooth lines traded at $133, and mixed age $154.50$160. Ewes with lambs-at-foot improved for some on last week’s record breaking levels. A line of 43 medium-good Romney ewes with 52 lambs fetched $126.50 all counted, while remaining medium to medium good types with multiples traded at $115-$125. The market softened slightly for light-medium types with single lambs, they managed $98-$114. Lamb throughput remains high and vendors could certainly not be disappointed with returns. Cryptorchid lambs were solid to lifting for the majority with good types managing $167.80 and heavy $189. Males were firm at the heavier and lighter ends, earning $173.50-$178.50, and $134.50-$154 respectively. However good male lines eased to $149.50-$167. Good to heavy ram lambs were steady at $161, while mixed sex lines eased for most with medium-good to good trading at $147.50-$156, and lightmedium to medium $120$140. Top ewe lambs returned $187, while the majority were good types and traded at $152.65-$171.50. Lightmedium to medium lines also lifted to $120-$151. MANAWATU MANAWATU Most of the action at RONGOTEA last Wednesday was in the heifer pens, with a good mix of types through both the R2 and R1 sections.

Markets

A line of R2 Friesian steers, 505kg, made $2.48/kg, but bulls proved to be harder work and all breeds traded at $2.24-$2.36/kg for 360460kg. The top Hereford-Friesian heifer line sold to $3.03/kg but most of the mainly beef-cross line-up traded at $2.45-$2.56/ kg. Empty Friesian heifers, 345465kg, sold for $2.02-$2.54/kg. Good Hereford-Friesian R1 steers, 243kg, managed $860, with the balance of the section beef-cross and exotic lines, 270-275kg, which traded at $750-$780. Exotic bulls had good weight at 322kg and sold for $840. The R1 heifer pens reflected the older heifer section. Red Devon, 295kg, and Charolais-cross, 310kg, were a highlight, selling for $875 and $995 respectively, while Hereford-Friesian, 205-232kg, ranged from $670 to $760. Belted Galloway, 167-205kg, were good shopping at $510-$590. That left just the weaners and calves though buyers were selective through these pens. Weaner steers traded at $450$460, but better bred heifers made $530-$550. A bigger bull section had Hereford-Friesian, 116-125kg, earning $480-$490 and White Galloway, 100-111kg, $450. Big Friesian bull calves made $150$230 and smaller types, $80-$140. The top Hereford-Friesian reached $150-$230 and medium, $100$140, while Angus-cross sold for $135-$145. In the heifer pens Hereford-Friesian sold to $100$155 and Angus-cross and White Galloway, $100-$155. Ewes with lambs-at-foot made $101 all counted, and mixed sex lambs, $125-$170. Sheep throughput was typically low at FEILDING last Monday as the lamb focus is on Wednesday’s hogget fair. Lamb numbers dropped to nearly 1700 and were mainly heavy types with few trading below $180. Top male and mixed sex made $193-$225, with heavy ewe lambs earning $170$184. Most mixed age ewes were medium-good to good and traded at $129-$143, while very good 2-tooths sold to $154-$157. A line of Friesian-cross cows with calves sold for $1131. Friesian & Friesian-cross cows, 540-572kg, made the most consistent values at $2.20/kg. Focus for feeder calf buyers was on the better types and as a result the lighter end eased in the 430 head yarding. The better Friesian bulls sold to $190-$240, but lighter types eased to $80-$110. Top Hereford-Friesian made $200$255 and medium $110-$160. That gap was repeated in the heifer pens with good types up to $130$180, but medium at $35-$60. Bidders arrived in good numbers at the FEILDING Marton Hogget Fair, seemingly aware it would probably be the last chance this year to secure large numbers of heavy lambs. There were 20,000 hoggets yarded. Very heavy male pens were heavily sought after, and eight separate pens were bid up to $240-$250. Other very heavy males made $210-$232, with straight heavies at $193-$206 while good-to-medium types were $170-$184.50. Four early pens of heavy ewe lambs were $195-$205 but otherwise these heavy and good types were $170-$186. The backend were mainly medium quality,

FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018 making $153-$169.50, while a few light pens achieved $130-$149. Quality calves continued to sell well at MANFIELD PARK last Thursday, though lesser lines are still harder work. Around 350 calves were offered and big Friesian bulls made $160-$200, medium $100-$150, and small, $60-$90. Friesian-cross sold to $200-$255, and $160$185 for medium types. A good line of Hereford-Friesian heifers were a highlight as they sold to $185. Other good calves made $130-$180 and medium $30-$90. Angus-cross fetched $80-$130. The FEILDING store cattle sale offered up a small, but largely quality mixture of cattle. Beef-Friesian and other beefcross R2 steers, 410-505kg, were $3.05-$3.15/kg, but 400-430kg traditional types made a premium at $3.40/kg, with a single 545kg Angus line also firm at $3.30/kg. Good traditional and HerefordFriesian heifers, 320-385kg, made $2.90-$3.00/kg. A single pen of 530kg R2 Friesian bulls was unchanged at $3.05/kg. A large selection of R1 beef steers and heifers attracted good interest. Angus, 210-285kg, were arguably the strongest of the steers at $4.20-$4.30/kg, whereas other 205-275kg traditional and exotic lines were $3.90-$4.05/ kg. Some 305-335kg Angus steers made $1190-$1300, $3.90-$3.95/ kg. Exotic and Hereford-Friesian R1 heifers, 205-290kg, were similar to each other at $3.45-$3.70/kg, but two pens of 220-255kg Angus were $3.80-$4.15/kg, $910-$965. Heavy R1 bulls were popular as 330355kg Friesians made $3.30-$3.40/ kg while 325-335kg Charolaiscross and Shorthorn-cross sold at $3.65-$3.80/kg. Other 210-240kg beef-cross bulls made $3.45$3.75/kg. It was a bit of a ghost town in the sheep pens because of the hogget fair two days earlier. The main feature was several pens of ewes with lambs-at-foot. Four lines of good ewes with a mixture of twin and single lambs were very solid selling at $123-$129 all counted, while three pens of more medium ewes with single lambs were $110-$115 all counted. Good Romney ewes, SIL 182%, were chased to $212, but few other inlamb ewes were offered. Store lambs only just hit 3000 head. Small lines and mixed quality were common, but as a whole trading was similar to the week prior. Very few heavy pens were available, but one mixed sex line made $208, while a two other heavy male and mixed sex pens were $175-$178. Other decent male and mixed sex lambs were $156-$168, while medium or lighter types ranged across $123$141. The difference between heavy and good ewe lambs was next to nothing, mainly selling for $160$169. The mediums were $128$140, while the light pens made $95-$120. CANTERBURY CANTERBURY It was another relatively quiet day at the COALGATE sale yards for both sheep and cattle last Thursday. Store lamb numbers took a bit of a lift, helped by a consignment of very good ewe lambs that topped the section at

$160-$165. Most other lines of mixed sex traded at $141-$159, with lighter types earning $80$113. The prime lamb section included lambs that were best described as forward store and as such a few traded at $155-$169, but a firm market meant $190 plus was common for heavier types. Ewe numbers were very low but despite the low number there was something for most budgets with a small top end making $236-$256, and most other lines, $140-$188. Dairy cows more than dominated a moderate yarding of prime cattle, making up nearly 60% of the total tally, while the balance was split evenly through the steer and heifer pens. Cow prices firmed and 482-584kg sold over a tight band of $1.99-$2.06/ kg. A lot of the steers were medium types and of those straight beef, 480-483kg, pushed to $3.09-$3.15/ kg, while all other lines sold at levels of $2.96-$3.06/kg. Price tags of $2.94/kg for heifers was very common through weights from 445kg up to 585kg, with second cuts trading at $2.80-$2.84/kg. The store section was not really worth a mention and the only stand-out lines were R2 heifers, 400kg, at $2.85/kg, and six Hereford-cross R1 steers, 173kg, $570. Larger numbers at the CANTERBURY PARK prime cattle sale wasn’t enough to prevent pricing rising yet again Between 5c/kg and 10c/kg was added to the majority of the prime steer market, with big gains through the lighter types. The core of the traditional and exotics were 550-635kg, making $3.04-$3.11/ kg. Other steers at similar weights were $2.96-$3.00/kg. High yielding options, 645-710kg, nearly all made $3.04-$3.12/kg. Beef-cross steers, 500-555kg, were regularly bought at $2.98-$3.07/kg, though some 440-500kg forward-store lines were up to $3.08-$3.13/kg. The heaviest and lightest heifers really took off. Belgium Blue and Limousin-cross, 560-675kg, easily matched the steer market at $3.06$3.13/kg. Two large lines of 430460kg forward-store Angus heifers sold at an impressive $3.01-$3.02/ kg. More standard heifers were steady or a touch harder to shift. As a general rule 470-545kg beefcross and some Belgium Blue heifers were $2.84-$2.95/kg. Two Friesian cows sold roughly to the same level as past weeks, with the heavier 625kg cow making $2.04/kg. In typical mid-winter fashion there was only limited options in the sheep pens. Most lines sold to a similar or slightly softer market to a week ago. Mixed quality and breeding saw a small decrease in pricing in the store lambs. Good and heavy pens of all sexes were mainly $159-$165, while mediums were $146-$156. A few light lambs made $132-$141. It was another firm prime lamb auction, with the median price remaining locked in at $189/ hd. Top lambs were comfortably clocking in above $200, with mediums floating around $180$200. Anything that was prime rather than forward-store was at least $170. Prime ewes were restricted to the smallest selection since early

April. Sales sat at the same level as last week as anything half-decent made $140-$170 and heavy lines were $180-$239. Light ewes were mainly $110-$138. SOUTH CANTERBURY SOUTH CANTERBURY Sheep numbers lifted at TEMUKA last Monday, and prices followed. Lifting local trade schedules meant strong demand for all prime cattle, while the store cattle market also improved. A consignment of forward store and prime lambs from Pitt Island helped push store numbers to nearly 4400 head. With that in mind prices in this section resembled the prime market, with a good portion across all classes selling at $179 and better, and up to $195 for mixed sex and a line of very heavy ewe lambs. Top price in the store pens was $202 for a line of 11 heavy halfbred. Medium to medium-good mixed sex traded at $149-$167, and good ewe lambs, $150-$162. A consignment of Merino males sold for $143-$164. The sale did not let up in the prime lamb pens and 87% of those offered sold for $170-$217, with a quarter at $200 or more. A larger ewe section offered up plenty of variety and with prices steady they ranged from $100 up to $260. Lifting schedules and the hunt for local trade cattle in particular lifted demand in the rostrum. Prime steers sold on a steady market across all weights and a small entry of Angus, 553-660kg, made a premium at $3.05-$3.07/ kg. The heavier end of a large entry of Hereford-cross made steady returns of $2.97-$3.06/kg, though 484-550kg softened to $2.90$2.99/kg. Heavy beef-cross heifers sold on a firm market at $2.98/kg for 615660kg, with a few lines exceeding $3.00/kg. Second cut Herefordcross, 460-600kg, traded at $2.76$2.86/kg. Boner Friesian heifers, 430-440kg, returned $2.26-$2.35/ kg, though lighter lines, 393-405kg, eased to $2.10-$2.20/kg. The cow market had a softer tone as Friesian, 570-690kg, eased to $2.05-$2.14/kg, and 490-553kg, $1.99-$2.08/kg. A small yarding of Hereford-and Hereford-cross was split down the middle, with heavier lines at 603kg making $2.29-$2.33/kg, while 522-535kg returned $2.03-$2.10/kg. A bigger yarding of 960 store cattle sold on a buoyant market last Thursday. Just over 200 heifers could be found in the R2 pens with Hereford blood prominent throughout. Demand notably lifted and while the yarding had a split of Hereford-Simmental and Hereford-Friesian there really was no breed preference shown, with most 390-490kg trading at $2.92$3.08/kg. Lighter Hereford, 357383kg, managed $3.11-$3.12/kg. The highlight in the R1 pens was a consignment of stationbred Angus steers from Ranfurly. Sold in six straight black lines and one of Angus & Angus-Hereford, all exceeded $1000 and sold to $1270. Those 229-241kg, traded at $4.39-$4.50/kg, and 266-279kg, $4.06-$4.16/kg. The only other lines of significance were Friesian, 219-224kg, $3.11-$3.21/kg. The R1 heifers and bulls proved to be a bit harder to shift. Hereford-Friesian heifers, 226kg,

sold for $800, while DevonHereford from the Chatham’s, 176258kg, returned $670-$910. Their brothers were found in the bull pens where they sold on a softer market as 223-270kg fetched $750$930. Friesian bulls, 219-257kg, were also buy-able at $680-$790. OTAGO OTAGO Lack of numbers continued to keep the ball firmly in the vendor’s court at BALCLUTHA last Wednesday, with all classes once again strong, PGG Wrightson agent Alex Horn reported. Store lambs sold up to $130$156 for the best of the bunch, while medium types made $120$130 and light, $110-$120. A line of crossbred, medium type mixed age ewes that were scanned-inlamb 150% sold well at $212. Both prime ewe and lamb numbers are trending down as both seasons wind down, but that simply meant more competition for less supply and firmed the market. Heavy prime lambs sold for $170-$190, medium $150$170, and lighter, $130-$150. Ewes cracked $200 as heavy lines sold to $190-$201, while medium types were firm at $130-$180 and light, $100-$130. Rams fetched $60-$90. SOUTHLAND SOUTHLAND The sale yards continue to be an attractive option for remaining lambs and at LORNEVILLE last Tuesday high prices were once again the order of the day. The lighter end of the store lambs sold on a firm market with most making $80-$125. The top and second cuts made steady returns at $140-$150 and $120$130 respectively. Budgets over $200 were required for breeding ewes as 2-tooths sold up to $235 and mixed age, $200-$210. Small budgets were not allowed for in the prime pens but the regular buyers are now more than accustomed to that and continue to push each other along. Heavy lambs made $170-$200, with medium types holding value at $160-$178 and likewise lighter lines at $145-$158. Prices also varied little in the ewe pens, with heavy types sustaining levels of $170-$200, medium $150-$168, and light, $80-$140. Rams varied from $40 up to $90. Local trade cattle are hot property around the country, which is keeping plenty of heat in all prime markets. Steers, 550kg plus, sold for $2.75-$2.85/kg, though were bettered by heifers, 500kg plus, at $2.78-$2.88/kg. Bulls 600-900kg and of good yield sold for $2.60-$2.90/kg. In the cow pens heavy types sold to $1.95$2.05/kg, medium $1.80-$1.90/ kg, and lighter dairy, 350-450kg, $1.70/kg. Good quality store cattle were easy to re-home though lesser sorts were off the pace. R2 Angus steers and heifers around 340kg sold for $1170, $3.44/kg to be a highlight, and Angus-cross heifers, 437kg, were solid at $2.95/kg. Friesian heifers, 324kg, returned $2.56/kg. In the R1 pens medium Hereford-cross steers, 149kg, sold for $550, and heifers, 138kg, were not far behind at $535. Friesian bulls were variable as 185-225kg sold for $575-$590, with the lighter end selling up to $3.10/kg, but the heavier type’s only $2.62/kg.

Markets

48 FARMERS WEEKLY – farmersweekly.co.nz – August 20, 2018 COARSE WOOL INDICATOR

NI SLAUGHTER STEER

SI SLAUGHTER STAG

($/KG)

GOOD MIXED SEX LAMBS AT TEMUKA

($/KG)

($/HD)

5.70

3.19

11.40

high $240-$250 lights Very heavy male

165

hoggets at Feilding Marton Hogget Fair

Grain shortage on the cards

What’s the impact of M bovis on store cattle?

This also helps to tighten up on environmental and biosecurity risks.

AS THE spring cattle fairs get under way many are watching with interest to see what impact Mycoplasma bovis will have. There is a clear divide in impact on the store cattle sales with results different either side Suz Bremner of Cook Strait. AgriHQ Analyst Most sale yards around the North Island have now seen an upwards trend in the volume of better quality cattle penned as vendors look to hit the favorable spring markets. After what we can now say was a mild and mostly beneficial winter, apart from being a bit soggy underfoot, spring flushes are already noticeable and buyers in some areas are entering the market earlier. This has meant a solid start to spring markets, especially for beef cattle and to a lesser degree beef-dairy. Prices are at or slightly above levels posted a year ago and there has been little impact from the disease, aside from more awareness of the origins of cattle. Beef herds are still largely viewed as low risk so the impact seen is minimal. For beefdairy and dairy dry stock such as bulls the Nait system is being well used – as best that it can – to ensure the cattle are not from high risk areas. It is a different story in some areas of the South Island though, especially through South Canterbury. Up till now the market has been harder work than usual for dairy and beef-dairy. There is caution in the air but as a big Temuka store cattle sale proved last week if the grass is there and outlooks are good buyers will bite the bullet and carry on, with perhaps a bit more homework done on animal history. Cattle from the Chatham Islands have been subjected to a lift in interest as, given their remote location, the risk of the disease is essentially non-existent so buyers are lessening their risk by concentrating on these cattle. A strong focus on improving breeding over the years on the islands has seen what used to be known as wild cattle morph into good-quality, mainly beef-exoticcross animals and buyers are certainly not at any disadvantage taking these cattle on. suz.bremner@nzx.com

Karen Williams Federated Farmers

up on environmental and biosecurity risks.” The survey indicates a predicted reduction in feed barley and milling wheat but with many variations and options open to farmers. The next AIMI survey in October will provide an indication of what has actually been planted. Williams said growers encourage farmers contact their sources to procure domestically produced and quality assured grain now so it can be put in the ground. “If farmers wait to commit to grain later in the year it may be committed elsewhere, so be proactive,” she said. The overall survey results show growers are positive about the future for arable farming. “This is certainly helped by pricing positivity and good options available in the milling industry should farmers wish to take them.” Federated Farmers encourages growers to have timely conversations about prices to ensure they are a fair reflection of current market value, she said.

DON’T HESITATE: Federated Farmers arable chairwoman Karen Williams warns farmers if they wait to commit to grain later in the year it might be committed elsewhere.

levels indicated in April. “Farmers will be hoping for good spring conditions to complete planting,” Williams said. While unsold stocks of feed wheat are slightly higher than this time last year, 68,300 tonnes compared to 63,600t in 2017, unsold quantities of the five other crops, particularly feed barley, are less than in 2017. “We should also point out that arable sector

representatives have noted quite a bit of activity since the July survey, especially with feed wheat finding a home.” Williams said domestic grain use by the livestock industry is more positive because of the closer price parity with imported supplement feeds and moves away from the use of imported supplementary feeds such as palm kernel. “This also helps to tighten

R1 Angus steers, 230280kg, at Temuka Store Cattle Sale

MORE FROM AGRIHQ: MARKET SNAPSHOT MARKET WRAP

P44 P45

FW 0093915 08/18 120 x 265mm

ESPITE a lower yielding 2017 season growers remain positive about the future of cropping but there’s less seed going in the ground this year. According to the latest Arable Industry Marketing Initiative (AIMI) report plantings for cereals are back following difficult autumnwinter periods in some areas. Total hectares sown in wheat and barley this season are predicted to decrease by about 8% but Federated Farmers arable chairwoman Karen Williams said growers are positive about future prospects. AIMI results from the July cereal survey confirm average yields are down compared to last season. Milling and feed wheat yields are down 12%, malting barley is down 9%, feed barley down 10%, milling oats down 17% and feed oats down 6%. “This is no surprise and reflects variable growing conditions – hot, dry, wet, cold throughout the key crop establishment periods in late spring and early summer,” Williams said. “Compounding that, autumn-winter sowing has been difficult in some areas with some crops drowned out. “Almost 20% of farmers who responded to the survey said they are either resowing or had not put in crops because of the wet conditions.” Overall, autumn-winter sowing is down 15% on the

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