Farmers Weekly NZ August 6 2018

5 Fonterra’s A2 milk on sale Vol 17 No 31, August 6, 2018

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Lamb contracts top $8 Annette Scott annettescott@globalhq.co.nz

M

ONTHS of speculation have been put to bed as $8 or more a kilogram for lamb is confirmed in new season pricing contracts.

While prices upwards of $8 are reserved for the upper-end of the market, not many are paying far below that level.

But easing market prices against new season farmgate prices are creating some bumps in the market, making some processors concerned about unrealistic expectations.

New Zealand’s overseas lamb markets continue to deliver historically high prices but there are signals of headwinds affecting trading conditions and prices in some key markets.

The Europan Union market, which has been a strong performer in recent months, is suffering from a hot summer that has dampened demand.

While that is a typical seasonal trend for the EU, the downwards price movement this year is being felt more acutely by processors as margins become further squeezed, AgriHQ analyst Rachel Agnew said.

While the top has come off frozen prices in the EU it’s better news in the British market, which remains largely steady despite huge political uncertainty.

But Agnew said a red flag is flying around the Chinese market as a result of the US-China trade war.

There is evidence of a slowdown

BIG BUCKS: Alliance has offered $8.20/ kg minimum price contracts for Christmas lamb despite uncertainties about demand and prices.

in the Chinese economy with the Chinese yuan devalued significantly against the US dollar since talk of trade wars.

The currency devaluation is being felt by importers and lamb export prices are softening as they try to offset the weaker currency.

Prices for lamb flaps into China have eased as the currency has dropped and forequarters are also reportedly under some pressure.

With 35% of NZ lamb exports now going to China the sector’s fortunes will be linked to the outcome of negotiations between the US and China.

Alliance livestock general manager Heather Stacy said higher inventories of protein in the US and China have potential to affect demand for

NZ products in the medium term.

The unknown around Brexit is also a factor as some United Kingdom-EU companies are positioning themselves based more on speculation about what might happen through the negotiation phase.

Despite the uncertainties Alliance has announced its opening season minimum price contract for Christmas chilled lamb at $8.20/kg.

It begins in mid September for product shipped the first week in November.

“After this we will see pricing reduce into the New Year with the mix changing to a higher percentage of frozen product,” Stacy said.

Very high domestic UK prices have helped the co-op achieve

good levels but EU prices are under pressure.

“We have not seen the usual summer holiday consumption uptake and there are high inventories at high price points.”

Mutton prices remain strong at $5.35/kg because of limited supply.

“But as we head into spring and summer prices will come back as mutton price points align with the movement of lamb.

“But higher processing numbers over the past few years could see lower predicted slaughter volume that could allow prices to hold more sustainably,” Stacy said.

While falling short of suggesting a procurement war Anzco livestock manager Grant Bunting urged caution.

He confirmed Anzco’s opening

season headline rate will be around $8.

“And unless there’s a crash we will all be $7 in January.

“But in saying that I still think, despite some world implications, that demand is still very strong for lamb and greater than supply.”

Bunting said the sensitivity to China is based more on optimising the carcase in a market prepared to take the lower-cost cuts.

“There’s more to lamb than just dollars per kilogram.

“Legs are a UK proposition. We can all sell loins and racks but to optimise the whole carcase it’s right to be sensitive about China.

“The difficulty we have is translating how the domestic market sits in terms of how that is translated in domestic procurement.

“I don’t think it’s catastrophic but the producers are talking to us, indicating they are quite happy in the $7s if it’s more realistic.

“They’re saying we’ll take $8 if you are going to pay it but we are happy to take $7 over the whole season if it means it’s sustainable.”

Silver Fern Farms acting sales general manager Peter Robinson said because of high market prices SFF is carefully monitoring all global markets.

“The caution is not isolated to the China market. It applies to all of our lamb markets with particular pricing pressure being seen in Europe and the UK. “At this time we are not seeing pricing pressure on flaps and forequarters into China, as suggested, however, we are at the lowest production volumes of the year so this may change as the new season ramps up,” Robinson said.

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NEWS

WEATHER

4 No big rise

in calf kill expected

Dairy farmers should get a little more money for their bobby calves this season but meat companies don’t expect a big increase in slaughter tallies.

OVERVIEW WE’RE heading back to the westerly flow this week with plenty of west to northwest winds lifting temperatures above average again in many regions.

Warmest weather looks to be late week and this weekend when it’s possible the norwester is coming from Australia’s interior. If this occurs then daytime highs in the east of the North Island and maybe even Canterbury should reach the late teens or low 20C. Rain this week comes in from the west making for a wetter than normal week for the West Coast but a drier than normal week in eastern regions, which might be welcome after the recent rain, especially in the North Island’s east. Some frosts are possible but only light and well inland.

IHC scheme has options for farmers �������������������������� 20

Newsmaker ������������������������������������������������������28 New Thinking ��������������������������������������������������29 Opinion ������������������������������������������������������������30

Wind

Rain With the westerly flow returning the bulk of the rain falls in western areas though the North Island might be closer to higher air pressure so rainfall totals in the west there won’t be so high. Fairly dry in eastern New Zealand.

ON FARM STORY

A few places are seeing temperatures a little more normal lately after the warm spell last week but this week we’re again heading back to warmer than average in almost every region, if not all. Warmest weather arrives Friday/this weekend.

terrain rule the farm

Lambhill Station does not try to be anything but a large-scale breeding property. Managers Chris and Lucy Thomson know better than to try to supply prime stock, acutely aware the climate and terrain always have the last say.

Fairly light winds in many areas on Monday with the gusty noreasters near Gisborne and Hawke’s Bay drifting further out to sea. This week a westerly flow kicks back in across both islands and surges off and on in strength.

For further information on the NZX PGI visit www.agrihq.co.nz/pgi

Highlights/ Extremes

Temperature

34 Weather,

Pasture Growth Index Above normal Near normal Below normal

7-DAY TRENDS

World trade rules unravelling ���������������������������������������� 8 Kiwifruit needs more workers ������������������������������������� 11

NZX PASTURE GROWTH INDEX – Next 15 days

An active cold front on Tuesday crosses NZ with heavy rain in the west and maybe a few thunderstorms, as seen in Australia when this same front moved through.

West to northwest winds will surge up and down this week.

14-DAY OUTLOOK

A warmer than average trend will likely continue for a number of regions despite a brief cooldown over the weekend for some. Over the next few days temperatures are average to slightly above average and late week/this coming weekend should see warm norwesters from Australia. Frosts are few and far between this week and even in places that should be seeing them regularly they look light or non-existent.

Generally speaking, a positive outlook for some pasture growth, even if only slight.

SOIL MOISTURE INDEX – 03/08/2018

REGULARS Real Estate �������������������������������������������������36-40 Employment ����������������������������������������������������41 Classifieds ��������������������������������������������������41-42 Livestock ����������������������������������������������������������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: $1072. 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

This product is powered by NIWA Data

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

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News

FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

3

One farm to supply them all Hugh Stringleman hugh.stringleman@globalhq.co.nz A2 PROTEIN milk is returning to all supermarket and corner store cabinets throughout New Zealand some 16 years after it was launched here.

Fonterra Brands is bottling regular and lite A2 milk in one and two litre packs with supply from only one Manawatu dairy farm, processed at Fonterra’s Longburn site.

The Anchor-branded A2 distribution is North Island only, with full nationwide availability from October.

Fonterra is still consulting its farmer-shareholders on their options and willingness to convert to A2-A2 cow herds and the premium supply price has not been set.

However, retail prices for A2 milk are about 50c/litre higher than for Fonterra’s existing premium milks such as calciumenriched, full cream and addedprotein and comparable to those for organic milks.

Fonterra’s organic supply forecast is $8.10/kg milksolids or just under 10c/litre more than the general milk forecast price.

The then-unexpected relationship announcement between Fonterra and the a2 Milk Company in February contained an exclusive licensing agreement for production, distribution, sale and marketing of A2 fresh milk in NZ. In previous years A2 milk was available in fits and starts from much smaller licensed processors like Fresha Valley in Northland and Ridge Brands in Waikato.

It was originally launched with controversy by company founders Corran McLachlan and Howard Paterson, both of whom died in 2003, and the science behind A2 versus A1 milk proteins was hotly contested.

New a2 Milk chief executive

BUDDIES: Fonterra Brands acting sales director Grant Watson and a2 Milk chief executive Jayne Hrdlicka toast their partnership.

Photo: Fraser Newman

For the partnership there are many different pathways and we are exploring all of them.

Jayne Hrdlicka a2 Milk Jayne Hrdlicka, a former airline executive in Australia on her first visit to NZ for the company, said her husband had introduced it to their family five years ago and they had all subsequently benefited so she is keen to lead the company.

Three scientists are employed and trials and studies are being done around the world into the

apparent benefits of drinking A2 milk for some people.

“The team has accomplished a lot, founded on a genuine belief from the science that A2 is good for digestive health.”

The new Anchor bottles have the words “A2 … feel the difference” but do not make any further health benefit claims.

In mid July Hrdlicka took over from long-serving managing director Geoff Babidge, who saw the share price rise from 50c to $10 in four years and revenue increase from $150 million to $900m.

Revenue is mainly earned from liquid milk sales in Australia and A2 infant formula demand from China.

The strategic agreement with Fonterra also covers Australian A2 ingredients, nutritional milk

powder products for southeast Asia and the Middle East, branded butter and cheese, liquid milk in China and a possible jointly owned packing facility.

Depending on the supply premiums set and the ease of conversion Fonterra could be seeking hundreds of A2 herds in the medium term, here and in Australia.

Hrdlicka said A2 milk will be new to many NZ consumers despite the chequered history of availability and they will be able to get it from supermarkets, cafes and dairies.

“That makes a big difference because we shop at different times and in different places and if you can’t access a brand that can be frustrating for consumers.”

Fonterra Brands acting sales director Grant Watson said further

product forms of A2 will be dependent on consumer demand but flavoured milks, butter and cheese are possibilities.

“For the partnership there are many different pathways and we are exploring all of them,” Hrdlicka said.

Australasian company a2 Milk still has the field largely to itself around the world and its intellectual property protected as large volumes of alternative A2 products are not being manufactured.

Watson said Fonterra Brands is getting to understand the A2 demand while surveying farmers on their willingness to convert to A2 supply.

Part of the agreement with a2 Milk is the protein testing of cows and milk that leads to 100% verification for the consumers.

4

News

FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

No big rise in calf kill expected Hugh Stringleman hugh.stringleman@globalhq.co.nz DAIRY farmers should get a little more money for their bobby calves this season but meat companies don’t expect a big increase in slaughter tallies.

Higher prices overseas for skins and the lower value of the New Zealand dollar have enabled some meat companies to add up to 20c/ kg to their bobby calf schedules.

Others said they are paying the same as last winter and will be competitive with prevailing prices.

The range for medium calves, 13.5kg to 18kg carcaseweight, where most weights fall, is reportedly $1.85/kg to $2/kg.

Companies don’t want their actual schedule prices published.

One livestock manager said 5c-10c either way is not going to make much difference to farmers’ returns of $30 to $40 a head for four-day calves.

The biggest speculation before the slaughter season began was that Mycoplasma bovis disruption would cut back the numbers of dairy calves taken on and reared for the beef industry.

That would in turn lift the bobby calf kill numbers.

Although North Island meat processing plants are only into

STEADY: Bobby calf returns might be up slightly this year but processors don’t expect the kill to swell because of Mycoplasma bovis fears.

week two of a month of peak calf capacity they don’t expect seasonal numbers to be much higher, AgriHQ livestock analyst Rachel Agnew said.

The flip side of the bobby calf tallies is that the same numbers of calves will be reared this year for 100kg weaner sales, except in regions where M bovis has hit hardest.

“The bobby calf season has been slow getting started and the prevailing view at the Red Meat Conference among companies was that numbers will be similar

to last year,” Greenlea managing director Tony Egan said.

The major markets for calf trunks are the United States and China, both of which are expected to have ongoing demand similar to last year at slightly lower prices.

“The lower NZD and the better prices for skins and some other calf products have been passed on to farmers where possible.”

Affco national livestock manager Tom Young said another 20c has been added to the schedule this year and that mainly

came from the skins and the currency exchange.

It is business as usual for the calf rearers handling big numbers but some smaller rearers might have suspended operations.

Six Affco plants are processing bobbies at Moerewa, Rangiriri, Horotiu, Imlay, Malvern and Awarua.

Anzco livestock and agriculture manager Grant Bunting said the industry assumption was for higher numbers of bobby calves but it was too early to tell.

Three plants at Canterbury, Kokiri, Rakaia in the South Island and at Eltham in the North Island are processing bobbies.

The Ministry for Primary Industries has taken a long time to clarify its advice on calves from Restricted Place and Notice of Direction farms.

Silver Fern Farms said its prices were similar to last year’s schedule and it expects a repeat of the slaughter numbers though it is still early in the season.

It said market conditions are constrained as manufacturing markets have increased supplies of beef and other proteins.

“We have a better spread of sales across the markets we participate in. This will help us manage market risk and should

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After the transition period, it is important to allow animals in the mob to each get their allocation of forage, to ensure animals reach their performance targets.

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In addition to managing and utilising winter crops, cleaning up rank pasture over the winter period is also important. This promotes the growth of high quality grasses in the spring, maximising live weight gain in cattle and milk production in ewes.

help build demand in future years.

“The currency has helped to offset changes in the market,” it said.

SFF is processing bobbies at Waitoa, Takapau and Waitotara in the north and Pareora and Waitane in the south.

Livestock agents reported lower yardings of four-day calves but more paddock sales.

Last Tuesday only 700 calves were yarded at Frankton, Hamilton, whereas in previous years perhaps 2000 would have turned up.

Friesian bull calves made up to $250 and whiteheads to $280.

For dairy farmers M bovis precautions have been added to the new animal welfare regulations and declarations introduced last year.

Bobby calves should be clearly separated from the keeper calves, in their own pens with ramps, and everything disinfected after the pick-up truck left, farmers have been told.

MPI said trucks visiting farms pose a very low risk of spreading the disease.

“Transporting bobby calves and slinks to processing has negligible risk of spreading M bovis from infected farms to unaffected farms,” it said.

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News

FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

Farmers want more clarity on water rules Glenys Christian A PERFECT environmental storm is coming and farmers need greater clarity about what’s expected of them, Federated Farmers president Katie Milne says.

“But you’ve got to take your community with you,” she told the Environmental Defence Society’s conference in Auckland where speakers suggested the longer the delay in land use change the harder the transition will be.

“A lot of farmers have taken on their own issues and are getting on with solving them,” Milne said.

“There’s been a huge mind shift.”

Farmers accept some regulation will have to go with good management practice (GMP) and dairy companies are putting more

DELAY: The result of Simon Upton’s Overseer investigation will not be known till November.

supply credentials in place.

“It can be a slow burn but we are lifting everyone.”

While she is milking 200 cows now she might not be doing that in five or 10 years.

“But I will still have the land,” she said.

Before investing in a Herd Home last year she worked out that if she needs to she can quickly convert it to a horticultural use.

Landcorp environment head Alison Dewes said GMP alone will not achieve the level of environmental improvement some areas need and farmers might be forced to change land use.

“You can’t talk about fiddling around the edges in some sensitive catchments,” she said.

Environment Ministry water director Martin Workman said

5

VIEWS: Federated Farmers president Katie Milne and Environment Ministry water director Martin Workman discussed the likely scenario facing farmers.

certainty of direction is required for farmers and work being done needs to be scaled up, such as in erosion where the present initiatives will result in a 300-year process.

“We need to do different things.”

He has sympathy for farmers who were encouraged to develop their farming operations where they shouldn’t have but it is now about shared responsibility and managing a complex future together.

Parliamentary Commissioner for the Environment Simon Upton said he had hoped to give some information on his investigation into Overseer but his report was likely to be delivered to the Government in November.

There has to be better understanding of nutrient transport through the soil and what models can do as well as improved communication of what is happening.

“Overseer stops at the root zone at a depth of 60 centimetres while nutrients translocate and that may be permanently,” he said.

As well as those gaps there is a variety of data sets and calibrations based on a small number of sites so extrapolations have to be made.

Even then there are big uncertainties with differences only metres apart because of attenuation. An uncertainty analysis of Overseer has never been done.

Major manufacturers have much more chance of changing their suppliers’ behaviour than regulators.

Vaughan Payne Waikato Regional Council When it comes to communication of water quality New Zealand had the greatest amount of the leastvaluable information and the least information about the most-valuable indicators. And different information interpreted differently means there is uncertainty about what is going on at a particular site.

Waikato Regional Council chief executive Vaughan Payne said

the right mind, skill and tool sets need to be applied for freshwater restoration.

But it is a complex problem that is developing all the time so collaboration has to be the mantra.

“Science is important but it is a social issue.”

There has to be prioritisation of where the best results can be achieved for the spending involved.

While he is tentatively more positive about the future the council’s Healthy Rivers plan is likely to end up with a change that looks nothing like that agreed to by its Consultative Stakeholder Group.

“Major manufacturers have much more chance of changing their suppliers’ behaviour than regulators.”

His sentiments were echoed by former Fish and Game chief executive Bryce Johnston who said more formal responsibility needs to be taken by industry groups for their suppliers.

And Dame Anne Salmond turned her sights on the forestry industry, which she said is getting away with murder, devastating the environment and not just in Tologa Bay. “Wake up,” she urged attendees.

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FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

7

Urban folk want food reassurance Annette Scott annettescott@globalhq.co.nz NOT long ago food producers were fully trusted by consumers of their produce but times have changed, Pipfruit New Zealand general manager Bruce Beaton says.

Speaking at the Horticulture NZ conference in Christchurch Beaton said while consumer preferences vary in each market, one strong global trend is the desire from consumers to know more about where their food comes from and who grows it.

But this consumer desire, coming in part from a loss of attachment to the land and food production, can be seen by growers as a huge opportunity, Beaton said.

“It’s a chance to leverage the authenticity of our growing story, to build a deeper relationship with our consumers and to add value to our brands by making people feel more positive about their food choice.

It’s critical now that growers recognise people have lost knowledge and direct connection with food production.

They are concerned about health risks, media hype and a complex food landscape.

Not long ago consumers had a very close, direct relationship with food.

“In NZ, even in the city suburbs, many of us had gardens at home and grew our own veges or otherwise you might go down to the local greengrocer where produce would be laid out in bulk and there probably wouldn’t be a brand attached, let alone a story.

“But you could trust it because you knew the people who ran the shop and besides you knew what good produce looked, smelled and felt like.

“You were a grower yourself or Grandad was and if you asked the grocer about the origin of the

we focus on research and development.

“In T&G Pipfruit we’ve created new, named and trademarked apple varieties that didn’t exist back in the good old days like Jazz, Envy and Pacific Rose apples.

People are trying to navigate through a food landscape that’s become unrecognisably complex, almost overnight.

Bruce Beaton Pipfruit NZ

BE REAL: Bruce Beaton says food producers today must genuinely live what they say they stand for because there’s no margin in fake authenticity.

Photo: Annette Scott

produce you’d hear what part of the country it came from.”

From the homegrown to retail, from the orchard to the table, the supply chain relationships were local, personal and high in trust.

But things have changed.

In 1900 only 14% of the world’s population lived in cities. By 2015 that number was 50% and for developed nations 75%.

In NZ and elsewhere population growth, housing intensification and other demographic changes mean far fewer people have vegetable gardens at home.

“Today there will be people, particularly younger people, who have never planted something in a garden, maybe never even picked fruit off a tree.”

While the scale of global food production is higher than ever

there’s been widespread loss of connection between people, land and food, Beaton said.

“At the same time we see a rise in anxiety about food, amplified by the rise of media and communication technology.

“These days people are anxious about additives, pesticides, genetically modified organisms, food miles, animal welfare, fats and sugars, environmental impacts.

“Consumers find themselves literally spoiled for choice, inundated with unreliable information and sophisticated marketing, not knowing who or what to trust.

“People are trying to navigate through a food landscape that’s become unrecognisably complex, almost overnight, trying to find

their way back to something authentic – back to good, honest food.

“This hunger for food you can trust has triggered an increasing demand for transparency and traceability of food.”

But the challenges are good news for his company, T&G Global, and others in horticulture, Beaton said.

“Our produce is manufactured by nature – people, plants and dirt.”

For us at T&G Global it also creates an interesting challenge.

“Firstly, we are a global company with growers all over the world. We’re not an artisan producer and we can’t pretend to be.

“Secondly, we’re an innovator.

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“So how do we tell an authentic and compelling origin story?

“In a global market our primary storytelling channels are online.

“Our trademarked varieties each have their own distinct websites and social media channels but a consistent approach to storytelling sits across them.

“And this is where our growers really become our heroes.

“If you visit JazzApple.com, for example, you can see exactly where the orchards are and meet the people who run them.

“The growers talk with pride about their family history and their beautiful growing conditions, be it anywhere from Lake Chelan in Washington to Hawke’s Bay – as well as what they love about growing the Jazz variety.”

Social media is now the number one channel for consumers around the world to ask for information.

And with sustainability, in particular, it should go without saying that it’s not just about the storytelling and the marketing.

“You have to genuinely live what you say you stand for.

“You can’t fake authenticity.”

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News

FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

World trade rules unravelling Bryan Gibson bryan.gibson@globalhq.co.nz THE global trade environment is going to get worse before it gets better as the rules-based system starts to fray and increased protectionism takes hold, a trade official says.

Ministry of Foreign Affairs and Trade deputy secretary Vangelis Vitalis told the Red Meat Sector conference in Napier more than 400 new trade barriers have been put in place this year.

“That’s the highest since 1995,” he said.

“There’s been a spike in tariffs of up to 30% internationally.

“It hasn’t yet hit the agricultural sector and to be brutally honest that’s because the agriculture sector has high levels of protection so you already face very high barriers.

“So, perversely, that may be the thing that’s preventing people from wanting to ratchet up the tariffs even further because their domestic sectors are already well protected.”

Vitalis said it is clear the rulesbased system governing trade is starting to unravel.

“The social licence for trade policy is fraying in Western countries.

“We’ve seen that in the European Union, we’ve seen that driving part of the Brexit referendum and we’ve certainly seen that with the election of President Trump.”

But that was countered by trade deals such as the Comprehensive and Progressive Trans Pacific

Partnership, which would ease some of the headwinds.

“Current FTAs save the red meat sector $200 million a year.

“Unfortunately, you still pay $231m a year in terms of access internationally.

“Once CPTPP comes into force, and we hope that will happen in January next year, it will cut a further $63m out of that.”

The future, above all, is still bright. I do expect things to get more challenging than they are now.

Vangelis Vitalis MFAT Vitalis said the EU and Britain want to split New Zealand’s red meat quota when Brexit occurs.

“I see no reason to move in the direction that the European Union and the United Kingdon want us to move.

“That’s a serious degredation of the access that was negotiated in good faith back in 1995.”

There is still no indication of just how embedded the UK will be in the EU post-Brexit so Vitalis thinks the move is premature.

“Why would we agree to unilaterally reduce our access at a point where we don’t know what the bottom line looks like?

“My comment on this is play it long, hold the line, play it out

and let’s see where the UK and the EU end up and keep reminding them that what they are doing is a unilateral move. They may think that’s okay because we’re a small country but we need to call them out on that.”

Subsidies are also a major issue with the United States planning to inject $12 billlion into its agriculture sector.

“It’s a very, very bad signal – it’s perfectly legal. The US, under its entitlements, they can spend up to $19b a year on their agricultural sector in terms of direct, tradedistorting support.

“That $12b of new cash will have an impact on you,” he told delegates.

“You won’t see it for another year or so by the time it starts to go through into pricing and so on but it will affect you.

“And it’s another reminder of how important it is we tackle these in the World Trade Organisation.”

A worry is that the EU will respond with its own subsidies, which it is also entitled to do.

Despite those issues Vitalis is relatively upbeat about the future, with ongoing work to create new trade agreements that will eventually bring more stability to global trade.

“The future, above all, is still bright.

“I do expect things to get more challenging than they are now, mainly because so far agriculture has been relatively protected from the challenges being thrown at us internationally.

“At some point these will hit you,” he said.

CONCERN: Foreign Affairs and Trade Ministry worries Europe might respond to America’s farm subsidies with more of its own.

Our farming not yet where it needs to be Bryan Gibson bryan.gibson@globalhq.co.nz

TARGET: There is room for New Zealand’s pastorally produced protein in world markets but not as commodities, Primary Industries Council chairman Lain Jager says.

PRIMARY Industry Council chairman Lain Jager has challenged farmers to think about their future and decide what sort of food producers they want to be in the next 30 years.

The council is an advisory group to Agriculture Minister Damien O’Connor.

“How should we be positioning ourselves when it comes to sustainable farming?” he asked the Red Meat Sector conference.

“Should we be positioning ourselves as laggards trying to ignore this whole idea of sustainability and go as slowly as we can?

“Should we be fast followers and look at what everyone is doing and then implement just slightly behind everyone else?

“Or is there an opportunity for us to position ourselves as worldleading, to develop the value chains, to develop the capability, to develop the technology, to invest in the research and development and put in place the incentive schemes so that we actually see this whole move to sustainable farming as an opportunity rather than as a threat?”

Jager said farmers must treat it as an opportunity.

“Once we’ve made that fundamental positioning decision as a country then the opportunity is for us to partner with the Government of today to ensure that our capability and our value chains are aligned so that we can compete effectively for the next 30 years.”

Jager said that worldwide, most plant-based proteins are positioned as commodities, whereas ruminant protein can be positioned in a premium way.

“And it needs to be because it’s environmentally more expensive to produce.

“Very simply, the protein production systems that exist today are not sustainable either for today’s needs or for our future needs.

“We need more protein and we need to evolve the protein supply system to be more sutainable.

The focus on this is going to get stronger.”

While ruminant production has a great impact on the environment some systems are more efficient than others.

“That’s important for New Zealand because in fact there are reasons to believe we have

a competitive advantage in that space.We’re a long way from markets, our land is expensive and our labour is expensive.

“We’re never going to be strong commodity exporters. That’s not what we can be.

“The opportunity for us is in the value-added space.

“Now, then, the hard question we need to ask ourselves is how well are we performing in the value-added space today and is our national capability effectively aligned to the creation of valueadded businesses?”

He said the meat industry is very strong on value-add.

“We have a long way to go but it’s going to be a team effort because we’re not where we need to be today.

“I absolutely believe there will be a market for our ruminant protein because we’re going to need more protein in the world.

“It’s true that our market share may drop but the total amount of ruminant protein will continue to increase.

“Sustainable farming will be an absolute requirement because of what’s happening globally.

“But more than that it’s a competitive opportunity for us in NZ.”

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News

10 FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

SFF changing its rules Neal Wallace neal.wallace@globalhq.co.nz SHAREHOLDERS will vote next month on whether to accept changes to the constitution of Silver Fern Farms co-operative.

Following feedback and 17 shareholder meetings, chairman Rob Hewett said some minor changes were made to the original proposal and they will be voted on at a special meeting on September 14.

The changes include increasing the number of directors from eight to 10, enhancing director succession and nurturing talent by offering governance experience to talented farmer shareholders.

After feedback the increase in directors would be nine instead of 10.

Five of them will be farmer-elected, three independent and one appointed farmer director for a three-year term.

The appointed farmer can be invited by the board to apply or put themselves forward but the appointment will be made

TALENT: Silver Fern Farms chairman Rob Hewett wants to develop the governance experience of farmers with talent.

The cooperative board has eight directors, of which five are farmer-elected and three independents.

by an independent panel.

If farmers want to stay on the board after one

term, they will have to seek election.

The idea is to offer governance experience to shareholders who have talent but are unsure what the role entails and are deterred by the electoral process.

With a requirement to appoint four directors to the Silver Fern Farms company, the operating entity owned with Shanghai Maling, the co-operative has to develop directors with governance

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experience, Hewett said.

The co-operative board has eight directors, of which five are farmer-elected and three independents.

A second recommendation to limit directors to three three-year terms remains. In the interests of continuity, the chairman can serve another two terms.

The recommended changes require approval from 75% of eligible votes cast.

Wool makes more gains AN EXCELLENT offering of pre-lamb, midmicron wool made further strong gains at Thursday’s Christchurch sale. The best results were for 25 and 26 micron wools, up by nearly $1/kg and well over $1 respectively.

Merino wool also benefited from the unprecedented offshore demand, PGG Wrightson South Island sales manager Dave Burridge said.

The crossbred market continued its difficult start to the season because of a slowdown in overseas sales, mainly to China. There was resistance from wool growers unwilling to sell below reserve prices and many lots were withdrawn.

That helped 31 to 35 micron wools to prices 3% to 5% higher than at the previous Christchurch sale on July 19. There was little change for wool 35.1

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micron and above.

Full wool (In micron number, cents per kilogram clean): 25 micron, $18.06, up 98c, 26, $15.40, up $1.19, 27, $13.06, up 50c, 28, $10.94, up 50c, 29, $8.82, down 60c, 30, $8.02, up 80c, 31, $6.24, up 80c, 32, $4.25, up 40c, 33, $3.90, up 10c, 34, $3.60, down 20c, 35, $3.44, steady, 36, $3.42, steady, 37, $3.43, up 2c, 38, $3.43, down 2c, 39, $3.43, steady.

Crossbred, second shear: 33 micron, 3 to 4 inches, $3.82kg/clean, up 5c, 2 to 3 inches, $3.65, up 20c, 35, 3 to 4 inches, $3.35, up 10c, 2 to 3 inches, $3.12, up 2c, 37, 3 to 4 inches, $3.30, up 3c, 2 to 3 inches, $3.08, steady, 39, 3 to 5 inches, $3.18, up 2c, 3 to 4 inches, $3.17, up 2c, 2 to 3 inches, $3.07, down 3c.

Merino fleece: 17 micron, $29.24/kg clean, up 25c, 18, $26.10, up 22c, 20, $23.15, up 30c, 22, $22.13, up 10c.

News

FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

11

Kiwifruit needs more workers Alan Williams alan.williams@globalhq.co.nz

CRISIS: The kiwifruit industry already finds it hard to get enough staff as it needs 15,678 seasonal workers, but that number will increase to 22,700 in 2027.

Development to employ New Zealanders “under-utilised in the workforce”.

Other factors are fewer overseas people on working holiday visas choosing to work int the industry, the short-term nature of a lot of the work, reduced numbers of international students and what it describes as outdate preconceptions around pay rates and worker welfare.

The casual contracts also mean workers do not get paid for work stoppages, in wet weather for example, so other industries looked more attractive.

Pay rates have been improved, with pickers getting an average $20.95 an hour and rates for the more consistent and less demanding packhouse work being $16.13 an hour for unskilled staff, ahead of this year’s increase in the minimum wage. Skilled packhouse workers are at average rates of $19.23 an hour.

The industry is also planning for increased accommodation amenities.

The Growers report to the Government said the RSE scheme is critical for the industry with the overseas workers being

extremely efficient and reliable.

The are relied on for nightshift and weekend work as well as winter pruning where growers have difficulty recruiting New Zealanders.

As the numbers of RSE workers allocated to kiwifruit by the Government do not meet demand and fluctuate year-on-year there is a lack of certainty for the industry in investing in accommodation.

The seasonal kiwifruit work period, involving the several different activities, covers about 40 weeks from March to November with some people working right through.

Most of them are New Zealanders and Johnson said there is potential to move them into permanent roles to improve labour retention rates.

Most of the growth in production over the next decade will be in Gold fruit. Production trails the standard Green crop but by 2027 Gold will make up twothirds of total production and is more labour-intensive than Green.

The report said a mechanical harvester system is being tested but is at least five years away from practical implementation.

An automated system for winter pruning is unlikely in the next 10 years.

13000

EMPLOYING New Zealanders is the priority for the kiwifruit industry but a greater share of an increased number of Pacific Island workers will be needed to avert an ongoing seasonal labour crisis, the growers organisation says.

About 2000 of the 11,100 overseas workers allowed into NZ under the Recognised Seasonal Employer (RSE) scheme are allocated to the kiwifruit orchard and packhouse sector and NZ Kiwifruit Growers will be part of a wider horticulture industry request to the Government to increase those numbers, chief executive Nikki Johnson said.

Unless a lot more workers are attracted to the industry the country’s 2500 kiwifruit growers face severe seasonal labour shortages during several years of rapidly increasing production.

They started the latest harvest, packing and pruning season 1200 staff short of the required number, creating the risk fruit might not be picked in time to meet export standards, she said.

Publicity over the shortage brought in another 600 workers, New Zealanders and overseas backbackers who were able to turn

visitor permits into work permits under special immigration rules.

The labour shortage came earlier and was more severe than predicted.

The fruit was picked in time but the issue highlighted the need for industry and Government planning for future labour needs, Johnson said.

The highest labour-inputs are in fruit picking, the time-urgent task, and winter pruning, which is the most time-consuming.

Growers has presented a report to the Government describing the issues it faces and in time will be going back with requests for specific support to ensure there is a sustainable workforce.

Seasonal staffing needs are for about 15,678 seasonal workers but that will rise to about 22,700 by 2027 as the number of export trays increases to 190 million from 123m.

Some growers, mostly in Bay of Plenty, are investing heavily to double industry value by that year but a critical labour shortage would severely hamper that growth, Growers says.

The group’s analysis shows the staff shortages are caused by several factors including low unemployment rates. It is working with the Ministry of Social

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12 FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

Bad farmers might lose water Tim Fulton timfulton050@gmail.com IRRIGATION companies are telling shareholders they might lose supply if they can’t meet audited environmental standards.

Canterbury regional councillor Tom Lambie said he is aware of irrigation companies threatening to cut supply if they don’t improve bad grades from farm auditing.

Farmers subject to audits are graded from A to D. The As don’t get another audit for three years and the Ds are “immediately due for a serious talk with the council and maybe the irrigation company supplying their water,” Lambie said.

Several Canterbury irrigation schemes audit their shareholders directly on the council’s behalf.

Lambie said irrigation companies are generally doing a good job and there is competition among farmers to get top grades.

At the other end of the pressure scale some schemes are making it clear to shareholders they needed to step up their performance or lose water.

“They’re saying, if you get a C, we’re not happy and if you get a D, we’re having a discussion with you as to whether we are going to supply you water next year because you’re letting everyone else down,” Lambie said.

Irrigation New Zealand chief executive Andrew Curtis said while switching the shareholder off is the ultimate sanction, irrigation schemes use a cascade of interventions to help shareholders achieve the requirements.

Most provide practical training workshops for their shareholders - focusing on common issues and compelling those not meeting expectations to attend and upskill.

Some are also holding aimingfor-an-A workshops to encourage shareholders to go above and beyond.

A shareholder failing an audit might be asked to make improvements before another audit.

“To date these approaches have been sufficient to rectify any issues, noting the ultimate sanction of being switched-off looms in the background and ensures shareholder compliance.”

Lambie said a growing number of farmers treat auditing as an exercise in self improvement and some seem to relish the pressure, like a school exam or restaurant health rating.

If they receive a B, they want to know why the grade wasn’t better.

Canterbury farmers operate under a novel system called Good Management Practice (GMP), an agreement between the industry and the regional council on how

HOT CONTEST: Farmers compete to get top grades in watere use audits, Canterbury regional councillor Tom Lambie says. best to improve soil and water quality.

Lambie said GMP is based on a biological system so environmental improvements haven’t been as fast or far-reaching as some hoped.

The region’s water quality problems, like nitrate leaching, excessive phosphorous and sediment could be alleviated if farmers keep to GMP targets.

GMP is having an impact, Lambie said.

E coli levels have generally fallen in the six years since GMP was introduced and riparian planting is helping to buffer waterways from harmful, ag-related side effects.

“We’re saying this is not the end point but man we’ve made some progress.

“It’s a continuation of a whole lot of things.”

Lambie said New Zealanders are fundamentally more interested in what is leached into the environment than how it affects a particular farming sector.

Every catchment is affected by regional plans differently, reflecting a rainbow of land uses and environmental factors, like climate and soil variation.

The diversity in Canterbury ranges from the downlands and harder hill country of Hurunui in the north to the light, stony soil of the central plains and on to the lagoons and wetlands of coastal South Canterbury While Lambie is happy with region-wide progress on GMP, more work is needed over the next decade and probably longer to improve water quality. Clamps on farm outputs, like nitrate leaching, will continue if improvements are too low or slow.

“We’re saying plans can be reviewed after five years and they’ve got a 10-year shelf life. If that number is not good enough we are going to ask them to go down again.”

The key to GMP is making the principles relevant to every farming situation, whether it is

dairying, an arable producer or sheep and beef.

Asking farmers to now cut nutrient loads harder than originally planned is not a sign GMP has failed or been too lighthanded, he said.

In hindsight, given the way the provisions of the council’s land and water plan override previous regulations, it might have tried to introduced GMP earlier, Lambie said.

One of the tougher challenges was settling plan change 5, an agricultural behemoth that could limit the scale and intensity of farming in higher-density, dairyheavy catchments like Selwyn Waihora.

The existing plan change is ready to come into force but first has to survive an appeal by Irrigation NZ, representing seven irrigation companies, Federated Farmers and DairyNZ. Lambie hopes “We’re coming out the other end and it might not be too far away.”

Whatever the result, GMP has to be backed by science and that took a huge amount of time, as did extending the system to farmers.

So, while GMP does not have grand-fathering rights to maintain existing nutrient-use, it is a living document that can be changed over time, Lambie said.

Health alliance considers options for its future Neal Wallace neal.wallace@globalhq.co.nz THE rural health body forced in to recess earlier this year might have some life left in it yet.

The Rural Health Alliance Aotearoa New Zealand, which provides a united health voice for various rural organisations, was forced in to hibernation in April when the Government decided not to provide $600,000 to support its core activities.

But a board meeting next month might see the group

resurrected in some form.

Taranaki-King Country National Party MP Barbara Kuriger recently presented a 600-signature petition to Parliament, calling on the Government to deliver essential healthcare for rural New Zealanders.

While thanking Kuriger for her support alliance chairman Martin London said the board is meeting this month to discuss some good prospects.

While declining to elaborate on details, London said the meeting

will sort through priorities and strategy.

He said the alliance did not seek the National Party support and does not want to become involved in the politics around its future.

But Kuriger saw the alliance as crucial to delivering health care to rural New Zealanders, especially as dairy farmers in particular are under stress.

The alliance identifies priorities and solutions on the type and quality of health care needed and wellbeing of rural people.

Calling all applicants

However, health minister David Clark denied that the alliance’s funding had been cut.

“Documents released to the National Party earlier this year clearly show this,” he said.

RHAANZ had received Ministry of Health funding of $250,000 a year for the last three years for rural mental health initiatives.

“Unfortunately the alliance has declined to accept the same amount to continue this work for the 12 months beginning June 2018,” he said.

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O’Connor said he respected the work the alliance had done in advocating for rural communities and undertaking research and had told them so on numerous occasions.

“I am disappointed they have not accepted a new contract from the Ministry of Health this year.

“The Government is committed to a wide-ranging review of mental health services after the previous government ignored numerous pleas for help. This will include rural New Zealand’s needs.

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News

14 FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

Synlait building jobs to be done on time Alan Williams alan.williams@globalhq.co.nz

COMING SOON: Synlait’s liquid milk plant shold be completed by the end of the year despite the receivership of Ebert Construction.

IT’S noT what you grow.

IT’s who you grow.

SYNLAIT Milk will have its two big processing plant projects completed on time despite the involvment of failed building firm Ebert Construction.

Tetra Pak, the multinational food processing equipment supply group responsible for the projects, made the promise after Ebert went into receivership.

“We’re not in the habit of letting down customers

and we won’t let Synlait down,” Tetra Pak Oceania managing director Andrew Pooch said.

“The timelines are the important things for us and they will absolutely happen. This is a setback but not meeting those is not an option for us.”

The Tetra Pak and Ebert partnership has done all the major building for Synlait at its Dunsandel plant in Canterbury and is more than half-way through a $125 million project for a liquid dairy product packaging plant. They are also in the early stages of a $260m development of a new nutritional powders manufacturing plant at Pokeno in northern Waikato that will be Synlait’s second major operating site when commissioned for the 2019-20 season.

Ebert was put in receivership on Wednesday by its bank, at the request of its directors responding to mounting losses and expectations of more to come.

Pooch has been talking to the receivers – PWC accounting group’s Lara Bennett, John Fisk, and Richard Longman – about the prospects of Ebert carrying on with the work. If that can’t happen Pooch will put a contingency plan into place to get a replacement New Zealand construction group aboard and he expects Ebert employees will be keen to pick up their work for another employer.

We’re not in the habit of letting down customers and we won’t let Synlait down.

Andrew Pooch Tetra Pak As part of the Swedish and Swiss Tetra Pak group the Oceania business has a lot of support resources to call on, he said.

He is sure the Synlait projects were among the Ebert contracts performing well.

“Our payments are up to date, we’ve not been stringing them out for payment.”

The receivers halted all Ebert projects while they worked out the state of the business and a way to progress.

They said a number of poorly performing projects in Auckland had adversely affected its financial position. It has major hospital and apartment projects there.

Some reports quoted Fisk saying not all projects would be completed.

However, Ebert’s portfolio also included several well performing contracts, the receivers said in a statement.

Synlait said it remains confident in its relationship with Tetra Pak. Though Ebert activities were locked down while the receivers investigated the business, Tetra Pak, as the lead contractor, still has access to the Synlait sites and its non-Ebert sub-contractors continue working, Pooch said.

The tricky parts of the liquids packaging plant at Dunsandel are finished and the group is targeting completion by the end of this year.

Tetra Pak has had a 20-year relationship with Ebert and the receivership was a shock, he said.

“They’ve built most of the driers in NZ. They’ve been a great supplier to the industry and I hope they can work it through.”

If not, there are other companies in NZ that can do the work.

Ebert has done a lot of work for Fonterra over the years, including building the greenfields Darfield plant, and second biggest dairy processor Open Country Dairy was another customer.

Synlait’s liquid dairy packaging plant at Dunsandel is being built as part of its new milk supply partnership with Foodstuffs South Island and to provide export opportunities for Synlait.

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16 FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

Farm profits up, confidence down

ACCURACTE: The AirScan project can ensure fertiliser falls where it’s needed while avoiding unproductive, culturally sensitive and environmentally vulnerable areas.

Photo: Andy Bourne

Ravensdown PGP boosted RAVENSDOWN’S Primary Growth Partnership programme has been extended to cover more geographic areas so its research outputs will be valid for 90% of hill country.

The research involves aerial scanning of hill country farms combined with soil tests so a predictive model of soil fertility can be calibrated across the varied terrain.

New, additional funding has been made available by Ravensdown and the Ministry for Primary Industries on a 60:40 basis so North Canterbury and Southland can be modelled and tested.

The farmer-owned co-operative has committed to invest $564,000 to complete the work with MPI investing $376,200.

This PGP programme,

Pioneering to Precision, and an aligned Ravensdown funded programme investigating improved aerial spreading precision, is at the three-quarter mark on its seven-year journey.

The special aerial camera used by the programme scans 1000 hectares an hour.

The AirScans can be turned into a soil fertility map that directs a GPS-enabled topdressing aircraft with computer-controlled doors to deliver fertiliser where it’s needed.

On the farms using the aerial spreading precision service so far the system has ensured fertiliser was avoided for 14% of land either because it was ineffective, culturally sensitive or environmentally vulnerable.

The technology also makes it safer for pilots and can be better for productivity and the

environment, Ravensdown innovation and strategy general manager Mike Manning said.

“When it comes to the aerial scanning of hill country there will be some climate and soil differences which means you can’t necessarily take results from one part of the country and apply it to another.

“We’ve done a fair amount of calibrating actual soil results with modelled results across the east coast and central parts of the North Island, South Canterbury and Otago.

“While we wouldn’t expect the differences to be huge across many of these regions, it’s important to check,” he said.

Ravensdown is looking for farms in the newly-added areas who want to test their farm using the AirScan service.

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FARMER confidence has fallen to the lowest level in six years amid uncertainty over Government policies.

A net 39% of farmers surveyed are pessimistic about general economic conditions over the next 12 months, a deterioration from 34% who were pessimistic six months ago and 16% optimistic a year ago, according to the July Federated Farmers confidence survey.

The latest reading is the lowest level of confidence recorded in the survey since July 2012 and a fivefold increase in pessimism in the last 12 months.

Weakening farmer confidence echoes business sentiment surveys showing growing pessimism about the country’s economic fortunes, federation vice-president Andrew Hoggard said.

The ANZ business outlook survey showed New Zealand business confidence reached a 10-year low in July, with headline confidence and firms’ views of their own prospects dropping.

“There seems to be a fear factor at play here.

“Farmers are feeling very uncertain about what the coalition Government will do next on key issues such as water regulations, climate change and industrial relations.”

The pessimism about the economic outlook is a sour note among the otherwise generally positive indicators in the latest survey, with farmer optimism increasing in all areas except their continuing negative perceptions of the economy, he said.

“We should take heart that perceptions of farm profitability, production and spending have become more positive and that farm debt levels have dropped slightly since the January survey.”

Expectations for farm profitability over the next 12 months are up slightly with 30% expecting an improvement and 48% expecting profits to remain stable.

Dairy and arable farmers are noticeably more optimistic about profitability than they were in the January survey.

However, meat and wool farmers are noticeably less optimistic, perhaps reflecting a concern the past season’s excellent farmgate prices might not be sustained this season, he said.

In a ranking of their greatest concerns, regulation and compliance costs remain the top issue and the survey noted heightened concern about pests, diseases and biosecurity, thought to be driven by the stress and uncertainty caused by the campaign to eradicate Mycoplasma bovis.

Climate change policy and the Emissions Trading Scheme were the third-biggest concern, reflecting farmer uncertainty over the Government’s more ambitious approach to reducing greenhouse gas emissions and concern agriculture’s biological emissions might be included in the ETS even though there are no significant mitigating actions farmers can put in place yet, Hoggard said.

The online survey received 1113 responses from farmers in four industry groups in 24 provinces.

– BusinessDesk

1⁄3 1⁄3 1⁄3 DEPOSIT

IN 12 MONTHS

IN 24 MONTHS

News

FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

17

New goods take Fonterra 48 hours Glenys Christian MAKING more efficient use of data has let Fonterra put potential new products to consumer taste panels much more rapidly and cheaply.

Fonterra global design general manager Nigel Adler told the Amazon Web Services Transformation Day in Auckland the co-op reaches a billion people every day.

“We excel at dairy and innovation is at the core of everything we do,” he said.

Its supply chain starts on farms and putting its grass-to-glass philosophy in place came with a wealth of data.

“We are always looking at new ways to use it,” he said.

A good on-farm example is the use of moisture probes to better manage irrigation timing and volumes, resulting in less energy, water and fertiliser being used.

And using data to predict flavour profiles of new products makes it easier to match them to consumer tastes.

Experimenting to get the taste preferred by people in countries it wants to sell to is quicker because the number of times new products have to be made and refined is reduced. With less research and development required new products can be tested by sensory panels at an earlier stage and

NO HORIZON: Fonterra global design general managere Nigel Adler says the scope of data use is limitless.

then, if they are well received, be on the market quickly.

“The scope of how we use data is limitless,” he said.

Adler, who has had more than 20 years experience in information technology, is a member of Fonterra’s architect and design leadership team and sponsors the data programme that includes Fonterra’s advanced analytics platform, data quality management, master data management and data governance.

The co-op previously had a classic spiderweb of multiple, old

data streams, which was not a smart or agile structure.

So it set up a data quality team to catalogue and build rules around what it saw as a very valuable resource. An analytics centre of expertise was also established, for which key people were employed, so there was one forum identifying data, prioritising it and deploying the talent required.

Its aim was to test and learn quickly, within 48 hours, at low cost.

A data hub was created and advanced data analytic labs were used as pop-ups.

“We can do a one-off load of data into them,” he said.

Once relevant data is identified a data engineer loads it into the hub, meaning time is saved by not searching a large pool of data. Data scientists then use a test and learn process before industrialisation, which can be plugged into the data hub.

With the centre of expertise manned by 100 data professionals in New Zealand and overseas only high-value data is being used, which in one instance saw 1000 features reduced to 13, taking just 48 hours to process rather than the three months it would have previously.

“The journey has only started for us and an incredible future awaits us,” he said.

Afterwards Adler said Fonterra made good use of the Web Services platform, which was being set up almost like an app store.

“Data scientists need to be able to be able to use different tools and they can plug into any system supporting them,” he said.

While Fonterra has a Number 8 wire culture it can’t always generate ideas itself, so Web Services engineers work with its trained team as well as doing some work themselves. With its goal of getting results in 48 hours, testing and learning can be done rapidly.

And the failing-fast strategy can be done at a very low cost.

As well as data engineers Fonterra also uses citizen data scientists around the world, he said.

While they can be employed in other areas of the business they are very savvy with data in their particular fields and often have the advantage of being close to the market as well.

“Being a truly data-driven organisation is one of our goals,” Adler said.

“We have sensors on everything from milk tankers to manufacturing plants to containers.

“But how do we bring that data to a place where we can do something with it? The data hub is

driving better decisions.”

As well as working with Fonterra and LIC, Web Services brought venture capital companies looking to invest in agricultural technology to this country last year. And it recently held agridays in both Christchurch and Hamilton where representatives of global agritech businesses such as John Deere spoke to local startup companies about how new technology can help them.

The journey has only started for us and an incredible future awaits us.

Nigel Adler Fonterra Web Servicves country manager Tim Dacombe-Bird said it can go global in minutes with the richness of its platform and pace of innovation.

Asia Pacific manager Ed Lenta said NZ is doing amazing things in innovation.

The country’s Number 8 wire heritage shows through in innovations such as Fonterra thinking differently about data and analytics.

United States groups voice concerns about lab-grown food CONTROVERSY about regulatory control of lab-grown meat has made United Stares agriculture and consumer groups anxious.

That surfaced at a recent US Food and Drug Administration open meeting for public comment on cell-based technology.

FDA commissioner Dr Scott

Gottlieb advocated for continued regulatory oversight of a rapidly developing, cellbased, meat food sector.

He highlighted the FDA’s experience monitoring cellcultured medical materials and other innovative products.

“Efforts in the private sector to develop food products using

cell-cultured technology are fully under way.

“Food products derived from these techniques are likely to reach consumers in the near future.”

Gottlieb said the FDA embraces technological advances in food safety and is taking steps to modernise f ood safety activities in a

prevention-oriented framework.

However, consumer groups and US meat industry officials have voiced concerns over the FDA’s continued involvement.

Many believe the US Department of Agriculture (USDA) food safety and inspection service’s participation would ensure a level playing field

through product label scrutiny not applicable under FDA jurisdiction.

West Coast cell-cultured meat companies at the meeting represented their industry as sustainable and therefore beneficial for both consumers and the environment.

They advocated for continued FDA authority.

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News

18 FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

Farmers urged to get onto councils Neal Wallace neal.wallace@globalhq.co.nz

STAND: Farmers are being urged to take a more active role in governing Fish and Game, which many see as anti-farming.

FARMERS are being urged to stand at the forthcoming Fish and Game New Zealand council elections, with an industry leader saying the organisation needs more balanced representation.

Federated Farmers Southland meat and wool chairwoman Bernadette Hunt said there is no coordinated campaign to overthrow Fish and Game’s

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leaders but there is a prevailing view among farmers the organisation is anti-farming.

Many find it galling fishing and hunting licences, in-part paid for by farmers, are being used by Fish and Game to fund attacks unfairly singling out the sector.

“It is felt strongly that there is an anti-farmer sentiment by Fish and Game, whereas it is not just up to farmers to maintain waterways.

“There is strong evidence that high E coli levels in Southland rivers are caused by ducks but Fish and Game is not doing anything about it.”

The organisation needs to better represent the broad cross-section of licence holders, many of whom are farmers, she said.

Nominations for election to the organisation’s 12 councils open on August 13 with voting closing on October 12 and results announced on October 20.

Federated Farmers wants to work constructively with Fish and Game and Hunt said the two groups are meeting shortly to try to resolve differences and find common ground with Fish and Game’s appeal against Environment Southland’s Water and Land Plan.

The group’s appeal included a request to remove from the council’s objectives the words primary production in reference to recognising water and land as an “enabler of primary production and the economic, social and cultural wellbeing of the region”.

Hunt said that had angered many farmers who said it denied the fact the primary sector is the key economic activity in Southland and is another example of an attack on farming by Fish and Game.

A spokesman for Fish and Game NZ said any licence holder can stand for election to one of the organisation’s 12 councils.

He said farmers are already represented on many councils and chair the North Canterbury and West Coast councils.

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ENTRIES are open for the Ballance Farm Environment Awards for 2018-19.

The awards are organised by the New Zealand Farm Environment Trust, a charity set up to promote sustainable farming and growing.

“There’s a lot of discussion about the need for the primary sector to tell our stories,” chairwoman Joannne van Polanen, who farms in Mid-Canterbury, said.

“The awards provide an opportunity for farmers and growers to share the positive actions they are involved in with their local community and a wider audience.”

National judging co-ordinator Andrea Hanna said all farmers and growers, including orchardists, vegetable growers and viticulturists, can enter.

“Each entrant is visited by a small group of rural professionals who identify opportunities to improve the financial and environmental sustainability of the farm business.

“It’s not just targeted at top farmers.

“The awards are an important opportunity to grow and learn from others.”

Judges have a wide range of skills and look at all parts of a farming business. Judging is done in a relaxed and friendly manner and climate factors are taken into account.

Entries close on October 31. Entrants and award winners will be showcased in regional functions next autumn.

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News

20 FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

IHC scheme develops options for farmers Annette Scott annettescott@globalhq.co.nz WHILE Mycoplasma bovis caused the canning of the annual IHC calf fundraising scheme it has not stopped farmers getting in behind the national organisation.

The rural community is rallying around IHC’s efforts to find other ways to reach a $1 million target without increasing the risk of spreading M bovis, IHC national fundraising manager Greg Millar said.

IHC last month made the call to suspend its transfer and sales of livestock as part of its Calf and Rural Scheme that has been running for 33 years.

But options have been taken on board to ensure rural communities can still support a fundraising scheme for IHC. DairyNZ, Allflex and PGG Wrightson Livestock have offered support by creating an innovative way farmers can still donate an animal.

In DairyNZ’s latest issue of Inside Dairy there’s a special pink eartag farmers can attach to a calf they commit to rearing alongside

their replacement heifers or dairy beef.

Farmers send the pink-tagged calf as part of their normal sale of surplus calves with the proceeds going to IHC.

We aren’t out of the woods just yet, we’ve reached just 15% of our funding target so we still have a long way to go.

Greg Millar IHC “IHC is encouraged by the generosity from the rural community but naturally we will be monitoring closely to see if this will translate into donations to meet our fundraising target,” Millar said.

“This isn’t an easy time for farmers but they have continued to show such generosity and

support for IHC and the Calf and Rural Scheme.

“We aren’t out of the woods just yet. We’ve reached just 15% of our funding target and so we still have a long way to go.”

IHC canvassers still touring the country to meet farmers have reported unwavering support based on IHC’s decision to suspend crucial aspects of the Calf and Rural Scheme.

“We’re grateful that so many people around New Zealand have backed our decision and not only that have rallied to come up with alternative solutions to make up for what could have been a funding shortfall.”

“This is a real testament to the hard work, innovation and generosity that farmers around the country have shown us since the scheme began in 1984.”

Millar said the cumulative impact of the individual efforts will have a real effect on the lives and futures of people with intellectual disabilities.

“This disease isn’t going to affect who we are, our sense of community or what we do,” Millar said.

EYE TO EYE: Three-year-old Evie Lauridsen posed for a winning photograph of the 2017 calf scheme photo contest. It was taken by her sister Nyla Lauridsen, the winner of the youngest section for children seven years and under.

And it’s not just the rural community banding together to help. When self-proclaimed townie, Hastings teacher Jacky Braid, realised the likely impact on the Calf and Rural Scheme fundraiser she decided to act.

Braid sent the word out to her Twitter followers with the idea of pooling enough money to buy one or two calves.

In less than two weeks 72 people from as far away as the United States and Austria contributed $2100 to pay for seven virtual calves, Millar said.

IHC encourages people keen to support people with intellectual disabilities to head to www.ihc.

org.nz/pledge and donate.

They can take part in the virtual rural scheme by donating $300 (or $25 a month) in lieu of livestock, register a calf to IHC to rear alongside replacement heifers or dairy beef then send as part of the normal sale of surplus calves or register a pledge of any other species of livestock or other sector produce such as a tonne of grain, a bale or two of silage.

Millar said all farmers can participate in IHC’s revamped Rural Fundraising Scheme and the organisation welcomes all innovative solutions to have farmers and rural communities on board.

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News

FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

21

Keytone expects rapid expansion Hugh Stringleman hugh.stringleman@globalhq.co.nz

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AUSTRALASIA’S newest listed dairy company, Keytone Dairy Corporation, in Christchurch, is a small enterprise with big plans and 1150 new shareholders.

Chairman Bernard Kavanagh, an Australian dairy industry veteran from Warrnambool, Western Victoria, said Keytone has begun building to treble its blending and packing capacity with a third of the funds raised from an initial public offering.

It plans to take annual manufacturing throughput from 1500 tonnes to 5000 tonnes and will use mainly New Zealand ingredients sourced from the bigger dairy processors, he said.

A further third of the capital will go to recruiting and paying more staff, including executive salaries and directors’ fees.

Keytone listed on the Australian Stock Exchange in mid-July after raising A$15 million through the retail and institutional sale of 75 million shares at 20c.

The new investors will have half of the issued capital along with 25% by founders James Gong and spouse Vivienne Cheung and 25% by the venture capital fund Long Hill Capital, based in Shanghai.

Gong is a former Westland Milk Products sales and marketing manager who went out on his own in 2011 in leased premises in Christchurch to blend, pack and market dairy powders and dry nutritional products.

He is managing director and chief executive of Keytone.

Cheung was a co-founder and chief operating officer.

Keytone produces commercial whole and skim milk powder as well as other dairy powder blends under its proprietary brands, which are KeyDairy, KeyHealth and FaceClear.

It recently added a proprietary goat milk powder sold through

the Chinese e-commerce platform JD.com.

The company also contractpacks a range of powdered dairy products for major supermarkets, retail chains, dairy producers and other customers in NZ and China, under their private label brands.

One of those is the Woolworths private label in Countdown NZ stores.

The main ingredients come from Fonterra, Open Country Dairy, Synlait and Westland.

It plans to expand the product range into sports and seniors nutrition, bioactive blends, infant, child and mother formulas, milk shake powders and animal nutrition.

Keytone has a soughtafter China Certification and Accreditation Administration (CNCA) registration, a prerequisite for importation of dairy products into the People’s Republic of China, but not an infant formula licence at this stage.

It is also halal-certified, enabling exports into Muslim countries.

Under the previous GongCheung and Long Hill ownership, Keytone had annual revenue of about NZ$2m, not a large platform on which to stand an IPO of A$15m.

Kavanagh said the company had a short history of growing production, revenue and earnings.

“The production facility has now reached capacity and has limitations.

“A year ago land in the Izone Business Park, Rolleston, was purchased and construction of a new facility has begun, which we expect will be operational by the end of March next year.

“The emerging new channelsto-market in China require funding and we have other opportunities to pursue in different geographic regions.

“After the IPO plan was announced, the prospectus was

INSIDE: Keytone Dairy’s factory in Christchurch.

FOUNDER: James Gong left Westland to set up his own company.

issued and investor roadshows held in NZ, Australia, Singapore and Hong Kong. The offer was heavily over-subscribed.

“It has been very pleasing that the investors believe in the

VETERAN: Keytone chairman Bernard Kavanagh is a veteran of the Australian dairy industry.

growth plans and prospects of the company.

“Our focus is to complete the expansion and talk with customers to utilise the new

capacity as quickly as possible.”

On the first day of trading, July 18, more than 50m shares were traded and the price went up to 36c.

The market capitalisation is about A$50m.

Kavanagh said he hasn’t had a chance to look at the share register but there is a mix of retail and institutional investors.

Gong said Keytone is also pursuing organic certification and will seek new partnerships and distribution arrangements to leverage its clean, green, pristine NZ credentials.

“We believe the business is riding a giant wave of changes in food consumption and incomes outside of the Western world.

“During its short history Keytone Dairy has proven that it can develop, manufacture, sell and export a range of dairy products and achieve growth in a short period of time, from a standing start.”

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News

22 FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

A specialist in lily production WILLIAM (Bill) Doreen was a pioneer in New Zealand’s flower farming industry and more specifically in the development of lily growing both here and internationally.

Doreen, aged 89, died on July 15 in Levin where he and wife Carol lived since 1953 after moving from Wellington. Carol died on December 15 last year.

As a boy Doreen had an uncle who owned a plant nursery near Fielding, which he visited often and was inspired by.

By 1948 Doreen had finished school and worked at Wellington Botanical Gardens as an apprentice gardener. During his job interview Doreen asked if he could be considered for a place at Massey Agricultural College to study for a diploma in horticulture. After working at the gardens for 12 months his wish was granted. It was an opportunity he did not waste and in 1950 got his diploma.

Doreen caught the eye of Massey’s botany head Dr John Yeates, an accomplished plant breeder. He invited Doreen to work with him in his spare time.

He became Doreen’s mentor and friend and instilled in him an inherent passion for lilies.

He returned to the gardens

AUTHORITY: Bill Doreen was a world authority on lilies and an officer of many horticulture organisation worldwide.

and in 1951 completed his apprenticeship before moving in1953 to take up a year-long position as a nursery manager in Levin while the owner Phil Gardner was away climbing the Himalayas. Doreen then became ground supervisor for a new sanatorium being built in Levin.

He designed and planted the grounds and created a substantial vegetable garden on half an acre.

Surplus vegetables were sold to a local grocer.

Doreen and Carol spent what little spare cash they had building up lily stock. After a year they had some larger bulbs they could market. That was perfect timing as his job at the sanatorium ended when a cure for tuberculosis was discovered.

In 1958 they bought 4ha in Fairfield Road, Levin.

Doreen carried on with a milk run he had bought while breaking in the property that was to become Fairfield Bulb Farms.

He initially established it on 1.2ha with bulbs being grown in rotation while clearing and preparing the rest of the property.

By 1968 they had the largest lily growing operation in New Zealand and the company took on the name Lilies International.

Doreen supplied lilies to decorate Government House during a visit

by Queen Elizabeth and appeared on a national television gardening programme.

Hybridisation was a special passion.

Doreen developed many, most notably the white lily known as Casablanca (or Snowdrift in the United States). Initially hybridisation was by crosspollination but in the 1980s Doreen built and equipped his own tissue culture laboratory and developed techniques that received international recognition.

He was especially successful in work with Oriental and Asiatic varieties.

His work on developing upward-facing flowers was a game changer. That made lilies more popular with florists, being less prone to damage in transport and

aesthetically more appealing in arrangements.

Doreen travelled globally as a sought-after guest speaker at conventions and conferences.

He was invited to join several US judging panels after spending three months in America studying. Bulbs and cut flowers were exported throughout the world from their Fairfield Road enterprise.

He was 1997 NZ Horticulturalist of the Year and in 1998 he was awarded the E H Wilson Medal – the highest annual award made by the North American Lily Society.

The book he wrote in his retirement, Lily Species from Throughout the World, is just one legacy he left behind of his contribution in the industry.

He held numerous offices in horticultural organisations worldwide.

The Doreens are survived by their four children who all had an association with the floriculture industry. Warwick was part of the home enterprise. Jonathan worked in research and operated a nursey of his own in Levin. Murray worked closely with his father, gaining a Diploma in Horticulture and establishing his parallel business, Flowers Corp, Rosemary is a qualified florist.

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News

FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

23

Fonterra improves world standing Stephen Bell stephen.bell@globalhq.co.nz FONTERRA has improved its standing among the world’s top dairy companies as turnover by the 20 biggest operators increased last year by 7.2% in United States dollar terms.

And that growth is expected to continue with Rabobank predicting the global market to expand by at least 30% in both volume and value in the next few decades, fuelled by population and income growth and ubanisation.

The kiwi co-operative lifted one place to fifth on the list with turnover of US$13.7 billion, swapping places with FrieslandCampina which had US$13.6b turnover.

Swiss firm Nestle topped the list with US$24.2b with French outfit Lactaclis second at US$19.9b and another French firm, Danone, which operates in New Zealand, third with US$17.6b.

Two Chinese firms operating in NZ also make the list.

Yili, which runs the Oceania Dairy factory at Glenavy, is ninth with turnover of US$9.9b and rounding out the top 10 is Mengniu, which runs the Yashili plant at Pokeno and also supplies Danone, with US$8.8b.

Canadian firm Saputo, which beat out Fonterra’s bid for control of Australia’s Murray Goulburn, improved its position from ninth to eighth US$10.8b.

The Rabobank report, to which NZ analyst Emma Higgins contributed, said co-operatives still dominated the global scene in 2017 but are being challenged as mergers and acquisitions rise, China considers international growth and disruptors arrive.

Dairy farmers in co-ops are struggling with creating supplier versus shareholder value.

“This is allocating capitalinvesting in their farmer operation rather than growing their cooperative’s shareholder value through mergers and acquisitions of plant expansions.

“The expectations of many farmer-co-operative members to

THE ALL NEW

There is an opportunity for non-China based companies to increase their presence and participation in the Chinese market and dairy sector.

Rabobank receive the maximum milk price has left the co-operative with limited funds to support future growth.

“Also, dairy co-operatives face a constant battle to find the right and-or innovative structure to help access outside capital, with the high-profile failure of Murray Goulburn leading co-operative boards to be more risk-averse.”

Internationally, Chinese companies face the need to integreate non-Chinese management as they consider

TOP 10: Mengniu, which runs the Yashili plant at Pokeno, is among the world’s leading dairy companies.

growth opportunities around the globe.

“Increased collaboration between Chinese and nonChinese companies in China has the potential to create a pipeline of global management talent.

“At the same time there is an opportunity for non-China based companies to increase their

presence and participation in the Chinese market and dairy sector.”

And Yili and Mengniu will need to make international acquisitions to achieve their ambitions to become leading global companies.

They had combined sales growth of 9% last year following a more difficult time in 2016.

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FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

25

Others move on protein protection THE United States Food and Drug Administration and the European Union have tightened controls on what food products can use terms traditionally associated with meat and dairy but the New Zealand sectors are yet to move.

Bodies representing NZ’s red meat and dairy industries have previously said securing rights to terms such as milk and steak are not a high priority and the Primary Industries Ministry has no application for such protection.

The FDA has registered its intent to enforce bans on products such as soy and almond drinks being called milk, rules that already exist but administration commissioner Scott Gottlieb said had not been enforced.

In NZ what can be called milk and meat is defined by the Food Standards Code, which covers labelling and composition of food for sale in NZ and Australia.

“However, there is some ability to qualify these terms for non-meat or dairy products that may be similar in their form or the way they are used, for example soy milk, rice milk or a vegetarian sausage, which were clearly not dairy or meat products,” an MPI spokesman said.

The code requires foods to be labelled with a name or description that is sufficient to indicate its true nature.

“Such terms are also subject to fair trading legislation, which means their use must not be misleading to consumers.”

The code, administered by Food Standards Australia, said unless prescribed, the name of the food must accurately indicate its true nature.

Products such as milk, sausages or meat pie must be milk, sausage or meat pie as defined by the code.

Meat products must contain a minimum portion of meat flesh.

There is an exception if the context makes it clear the food is not a food as determined by the code, such as a soy sausage or soy milk clearly labelled as soy, signifying that the product is not meat or milk.

FSANZ does not have enforcement powers but MPI does.

Anyone can apply to have the code amended but no requests have been

made to protect terms traditionally linked to animal protein products.

The USFDA said only the product of a lactated animal can be called milk but Gottlieb said it had never been enforced even though “an almond doesn’t lactate”.

Gottlieb said the USFDA has to notify and consult on its change in posture. He expects it to be sued.

“Invariably we are going to get sued.”

While its policy referred to lactating animals dictionaries talked about milk coming from lactating animals or nuts.

Meat products must contain a minimum portion of meat flesh.

“So, there are going to be people make a counter argument that almond can be called milk.”

The process of notifying its intent to clamp down on what products can use dairy terms will take at least a year, he said.

The United States Cattlemen’s Association has testified before the USFDA the term meat relates exclusively to a protein food product harvested from the flesh of an animal, which excludes cultured cell products.

A levy on cattle sales is used to fund consumer marketing programmes for beef, which suppliers of non-animal protein would benefit from.

The European Union Court of Justice last year ruled terms such as milk, butter and cheese can be used only for milk products derived from animals and not for plant-based products This year the French Parliament amended its Agriculture Bill to prohibit any products largely based on nonanimal products from using terms traditionally associated with meat.

That means France has banned plantbased products from using terms such as vegetarian sausages, vegan cheese or soy milk or companies risk fines of over NZ$500,000.

Beef + Lamb NZ’s market development manager Nick Beeby said the organisation needed to carefully weigh up the implications of taking a proprietary stance versus focusing on NZ’s competitive advantage.

INACTION: No one in New Zealand has applied for name protection for traditional meat and dairy products.

“We’re gathering information and in early discussions with our partners in the primary sector, so we can make an informed decision on the next steps.”

Beeby said research showed untapped global demand for antibioticfree, hormone-free natural beef and lamb for which consumers were prepared to pay premium prices.

Meanwhile, a key ingredient, heme, in the Impossible Foods plant protein burger has been given FDA approval.

Heme, a genetically modified organism, gives the burger its deep blood-red colour when cooked.

But to get approval Impossible Foods tested heme on rats, a move that split many vegans who have railed on social media between those who viewed it as a necessary step towards the end goal of finding a plant-based alternative to meat and those who refused to compromise their opposition to animal testing.

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.

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 board-appointed 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.

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News

FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

27

Micro-credentials to target biosecurity

RECEIVE: People who enter the Ahuwhenua Trophy for Maori farming get significants benefits from their involvement, organising committee chairman Kingi Smiler says.

Entries open for the Ahuwhenua Trophy MAORI sheep and beef farmers can now enter the Ahuwhenua Trophy, Te Puni Kokiri Excellence in Maori Farming Award 2019.

Ahuwhenua Trophy management committee chairman Kingi Smiler said Maori sheep and beef farmers throughout the country are doing great things on their land and the Ahuwhenua Trophy competition offers them a great opportunity to showcase their efforts to their peers and others in the primary sector.

Many Maori farmers are leading the way in terms of developing and implementing long-term, sustainable practices on their land as kaitiaki as well as embracing new technologies.

It is important the wider community understands that and there is no better way of doing it than by entering the competition, he said.

“While there is great prestige attached to winning the competition, all those who enter gain significant benefits. Their farms will be judged by a panel of experts who can give them invaluable feedback which will help them improve and grow their businesses.

“Past entrants, finalists and winners all speak highly about the value they have gained from being part of the competition and getting good independent advice.”

Kingi has issued a special

plea to farm consultants and other rural professionals to support the competition and to encourage Maori trusts, incorporations and individual whanau to consider entering the competition.

Too often some Maori farmers don’t realise just how good their farms are and a word of encouragement from rural professionals will often be the catalyst for them to enter.

Maori are a major player in our sector and they bring both scale and innovation.

Andrew Morrison B+LNZ

“The Ahuwhenua Trophy is an iconic taonga and throughout its existence it has built up a rich cultural and spiritual history as well as being a symbol of excellence in farming.

“The past the entrants, finalists and winners of the trophy have all played a huge part in growing the legacy of Sir Apirana Ngata and Lord Bledisloe who inaugurated the competition and acting as role models for others,” he said.

The 2019 competition was

launched by Beef + Lamb New Zealand chairman Andrew Morrison at the Red Meat Sector conference in Napier.

“The Red Meat Sector conference is the perfect forum to launch the 2019 Ahuwhenua Trophy competition for sheep and beef.

“Maori are a major player in our sector and they bring both scale and innovation, which contribute hugely to our sheep and beef exports and the strength of the NZ economy.

“The Ahuwhenua Trophy provides not only an opportunity to showcase the achievements and sustainable practices of Maori farmers but also to put the spotlight on the whole of the sheep and beef sector,” he said.

Ahuwhenua is about kaitiakitanga, which is inclusive of stewardship, lifting productivity and the performance of people, the care of land and water resources and linking to value chains and consumers.

Some of the recent champions of the Ahuwhenua Trophy for Sheep and Beef are Wairarapa Moana, Pakarae Whangara Partnership, Atihau-Whanganui; Te Awahohonu Trust and Nuku and Bart Hadfield.

Entry forms and further details about 2019 competition will be on the Ahuwhenua Trophy website in the next few weeks.

THE introduction of microcredentials and new, stand-alone courses will help the Primary ITO respond to pressing industry demands, including those created by the attemplt to eradicate Mycoplasma bovis.

Education Minister Chis Hipkins said the Government is introducing a micro-credential system as part of New Zealand’s regulated education and training system.

Primary ITO chief executive Dr Linda Sissons said the bitesized courses will give people working in the primary sector the flexibility to pick up the skills and knowledge they need, as they need them and upskill around seasonal and issues-based demands.

“The Primary ITO is ready to go.

“We have been developing and piloting 14 different microcredential courses in partnership with DairyNZ, the Horticultural Capability Group and Otago Polytechnic.

“We lead the professional development of people in the primary sector and these timeefficient courses will help us prepare for and quickly respond to their demands, including for proactive responses to pressing biosecurity threats,” Sissons said.

“Unwanted pests and diseases create animal welfare and productivity issues.

“They inflict significant damage to our industry and to NZ’s wider environment, economy and international reputation.

“There is no dedicated suite

of qualifications which provide vocational biosecurity skills to NZ’s primary sector and we are urgently working with our industry and NZ Qualifications Authority to change this.

“NZ is the world’s top dairy exporter and diseases like M bovis devastate our farmers’ livelihoods.

“There is strong demand from the sector to improve biosecurity measures and they will be keen to embrace this unique new learning opportunity,” Primary ITO national dairy group manager Gordon Findlay said.

Unwanted pests and diseases create animal welfare and productivity issues.

The Primary ITO is also working with the horticulture industry to develop practical onthe-job courses to help orchards and farms respond to and prevent biosecurity threats such as myrtle rust.

“Farming, fishing and horticulture form the backbone of the NZ’s economy and we must ensure our people remain at the cutting edge of producing sustainable, low-carbon and trusted food for the world.

“We are looking forward to engaging with the sector and developing the bite-sized courses it needs,” Sissons said.

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28 FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

Egan tackles industry issues Tim Egan’s passion for horticulture and commitment to the industry were honoured at the Horticulture New Zealand conference in Christchurch.

He talked to Annette Scott about what drives his enthusiasm.

G

ISBORNE grower and orchardist Tim Egan has always enjoyed growing fruit.

He thrives on the challenges each new season brings and he is enthusiastic about the promotion of horticulture.

Egan has a vision for regional prosperity and sustainability through economic growth and is one of the key influencers who lobbied the Government to fund a horticulture co-ordinator in Gisborne.

Supported by the Tipu Advisory Board, chaired by Egan, the coordinator’s mandate is to drive the approach for the future workforce for local horticulture, bringing together growers and potential employees.

He is also chairman of the Gisborne Labour Governance Group and a director of Illawarra, a 40 hectare enterprise encompassing apples, kiwifruit and vineyards.

It was that service and commitment to the industry that earned Egan the President’s Trophy 2018, awarded to a successful grower and business leader demonstrating commitment in developing the industry.

The winner of the award is cited as being a person who has a huge passion for anything to do with growing, which spans not only his work in the orchards but also work with people who make the horticulture industry tick.

“I am delighted and honoured to receive the award but on the other hand I do get a lot of satisfaction from my involvement in the industry,” Egan said.

So what lights his fire?

“I’ve always enjoyed growing fruit. Every season is different and every year brings new challenges.

“It’s so satisfying harvesting a crop of fruit and knowing that it’s a healthy, delicious product that’s going to be enjoyed all over the world.”

Egan said the horticulture industry has seen massive changes in the past 30 years.

“Integrated fruit production in pipfruit, kiwifruit and grapes means we’re using biological controls, pest monitoring and only spraying with chemicals when absolutely necessary.

“Orchards and vineyards are teaming with life and seeing how nature solves problems is absolutely fascinating.

Key industry issues include the importance of quality training and qualifications for horticulture and the need to address regional water management issues.

“I’m passionate about the sustainability of our industry and of our environment.

“One of biggest kicks I got out of the trip to conference 2018 in Christchurch was seeing the enthusiasm our two Young Fruit Grower of the Year representatives had for the future of our industry.

THE PRESIDENT’S MAN: Gisborne orchardist and grower Tim Egan is supported by his partner Natalya Sandbrook as he receives the Horticulture New Zealand President’s Trophy in Christchurch.

“These young growers, Matt Gom and Krista Manual, are coming home to set up a local young grower group that will see our up and coming managers and leaders benefit from networking and learning opportunities outside of the annual competition.”

One of the many things Egan loves about the horticulture industry is growers’ willingness to help and support each other and collaborate to ensure great initiatives are supported and implemented.

One of these initiatives is the collaboration between the Ministry of Social Development and local growers to start addressing some of the issues surrounding the industry’s growth and the area’s reasonably high unemployment rate.

Gisborne is an example of this with the establishment of its advisory board and appointment of Rawinia Parata to the coordinator role for the future workforce project known as the Tipu Project, a subset of the Gisborne Governance Group.

“We’ve been really lucky to have Rawinia in a paid role to create the identity and drive the project forward.

“It’s always hard when you’re a group of passionate volunteers

with great ideas but limited available time.”

Egan said Parata’s done a great job creating a website tool with funding secured from the local Eastland Community Trust and he hopes the Tipu Project will be up and running in the next month.

Once under way Tipu will connect local employers with local jobseekers while underpinning that connection with excellent pastoral care and engagement with social services where required.

Tipu will also directly engage with the industry and the workforce.

“While the project has limited funding at this stage, once we get a few runs on the board I’m confident that Tipu will become a business-as-usual part of our industry.”

A humbled Egan is not taking all the glory for winning the award.

“Being able to be a part of so many industry-good initiatives is really only made possible by my wonderful partner Natalya.

We’re a great team and we’re both passionate about the sustainability of our industry and our region.”

They are proud of their Illawarra operation.

“We have a great team here at Illawarra, we’ve got a permanent staff of seven and both Natalya and I are really proud of the one-team culture that everyone contributes to.

“It’s fantastic to be able to grow products that people want to buy, for companies that can market them well,” Egan said.

It’s always hard when you’re a group of passionate volunteers with great idea’s but limited available time.

Tim Egan Orchardist “T&G Global and Zespri are doing a really good job for growers and we’re on the right track in terms of growing the right varieties for our region.”

In presenting Egan with the President’s Trophy, Horticulture NZ said there’s never been any doubt about Egan’s passion for the industry, nor his trust and integrity.

“With a vision for a prosperous Tairawhiti and sustainability through economic growth in the Gisborne region, Tim was one of the key influencers who lobbied the previous Government to fund a horticulture co-ordinator in Gisborne,” the citation read.

A researcher who worked closely with Egan spoke of his sincere approach to reducing labour issues and growing the talent at hand.

“He has been heavily involved in the promotion of horticulture in the Gisborne region and he spent large amounts of time organising and participating at the horticulture stand at the careers expo.

“He also facilitated talks with high school students keen to work in the primary industry.”

While Egan has been involved in the horticulture industry for many years he is not about to give anything away.

He has work to finish and there’ll be something else to start for sure, he said.

And that’s in keeping with the spirit of the President’s Trophy that looks to honour people with a passion for working on behalf of the industry in NZ and for someone who has a commitment to developing as a business leader and successful grower.

New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

29

DOUBLE WHAMMY: The on-farm biosecurity controls for Mycoplasma bovis and bovine viral diarrhoea are the same so farmers can make progress on both, Massey University lecturer Carolyn Gates says.

Bovine disease can be wiped out Beef cattle and dairy farmers are being asked to help design possible disease control schemes for bovine viral diarrhoea (BVD).

Massey University and the national BVD steering committee of the Veterinary Association have published an innovative website questionnaire and talked to Hugh Stringleman about the campaign.

W

IDESPREAD bovine viral diarrhoea infectious cattle disease costs New Zealand farmers an estimated $150 million a year, money that could be saved if a national eradication scheme is successful.

Massey University epidemiologist Carolyn Gates said unlike other infectious cattle diseases such as Johne’s and tuberculosis, effective tools are available to clear BVD and other countries have done so.

But Gates and national BVD steering committee chairman Roger Ellison said a national eradication scheme is not their call.

The dairy and beef cattle industries, especially farmers themselves, will need to know the scope, costs, benefits and timeframe for moving from voluntary to more co-ordinated controls.

An informed decision can then be made about future schemes.

Hence the new campaign to encourage farmers to contribute their own experiences with BVD, especially those with tailored management plans.

A third of dairy farms and twothirds of beef farms are actively infected with the virus.

For many farmers BVD sits in the too-hard or not-now baskets and some believe in natural vaccination – allowing a

NEW AGE: The bovine viral diaerrhoea steering committee waants to create a new system to empower farmers to shape the future of managing animal health issues, chairman Roger Ellison says.

persistently infected animal to spread disease exposure.

Ellison, a veterinary pathologist and Waikato dairy farmer, said the more information the project gathers the better the support that can be provided to help manage the disease.

“Every farm has different management styles, risk factors and priorities that will influence what the optimal strategy would look like for their herd.

“We want to create a new system that empowers farmers to shape the future of managing

animal health issues that impact their business in a way that will have the biggest impact for industry at the lowest cost to individual farms.

“Farmers can tell us what is working for them. We know the prevalence of the disease is dropping on dairy farms but on beef farms we just don’t know.

“In my opinion BVD has been costing the cattle industry far too much, for far too long,” he said.

On his own 70ha, 225-cow Matamata dairy farm and separate runoff BVD-related spending is $1500 to $2000 a year.

That includes vaccinating yearling heifer replacements, screening all keeper calves and testing new animals like breeding bulls.

On the plus side, after an earlier outbreak of disease both properties are now BVD-free and have been double boundary fenced recently to help guard against Mycoplasma bovis.

Unlike M bovis, the diagnostic test for BVD is 99.9% accurate and the identification and disposal of infected cattle results in a diseasefree herd.

Ellison has chaired the association’s BVD committee since 2011 and has seen a lot of progress in that time.

For example, it is now rare to see a breeding bull advertised for sale without a BVD-free certificate, which in itself has resulted in a big reduction in the disease’s spread.

The steering committee has also

co-ordinated veterinary opinion on BVD so conflicting advice is not being given to farmers.

Project manager Gates, a senior lecturer in epidemiology in the School of Veterinary Science, said BVD control is a challenge but achievable with farmer help.

BVD has been costing the cattle industry far too much, for far too long.

Roger Ellison Veterinary Assn “We know based on the experiences from seven European countries with national BVD control programmes that this can substantially improve herd health and performance.

“But we also know NZ pastoral farming systems are very diverse and certainly very different from the intensive production systems in the northern hemisphere.

“So the one-size-fits-all BVD control frameworks that have worked in Europe may not be the most cost-effective or practical here.

“That is why we are asking as many farmers as possible to tell us how BVD currently impacts their business and what control measures would be practical for

them to implement so that we can build a better picture of the BVD situation here and make more intelligent decisions around disease control,” Gates said.

The results from the computer simulation models based on this information will be presented to farmers and the industry in July 2019 allowing them to choose a strategy with the biggest longterm benefits for everyone.

Options include continuing voluntary control, phased compulsory control over several years and fast-track, mandatory control as quickly as possible using legislation.

Gates, who trained in the United States and Scotland, said a big attraction of her Massey appointment was a chance to help design a national disease control scheme, if it is what farmers want.

While in Edinburgh she used data from the Scottish equivalent of Nait to plan a BVD eradication scheme.

The on-farm biosecurity aspects of M bovis will be applicable to BVD so farmers will make progress on both fronts.

“We have good BVD vaccines and good diagnostic tests, unlike M bovis.”

Farmers who want to be involved in the campaign can register at bvdfree.org.nz/getinvolved Information will be gathered from farmers for 10 months from now to May.

Opinion

30 FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

EDITORIAL

We must play the long trade game

O

NE of the keys to keeping a community, district or nation running smoothly is having everyone acknowledge and obey

the rules.

Rules, of course, are policed by some sort of governing or independent body so if someone does something amiss they can be judged by the rules they agreed to adhere to.

So far, so good.

According to trade specialist Vangelis Vitalis the global rules of trade are beginning to erode, which is problematic for a nation like New Zealand that depends on trade to make a buck and build all those important things like schools and hospitals.

He says other nations – we’re looking at you United Kingdom and United States – aren’t so keen to engage with the international community.

They apparently don’t see the value in working together for mutual benefit. So, you end up with Brexit and the UK and the European Union wanting to slice up our red meat quota there before Brexit deal is even done.

And you end up with tariffs being dumped on products from a specific nation.

But wait! There’s the World Trade Organisation. It will take a look at these tariffs and sort it all out.

Well, Vitalis says its ability to pass judgment on grievances is lessening, with a lack of judges to rule on cases and a lack of will from various nations to play by the rules. So what’s the solution?

Vitalis tells us we need to continue to play by the rules, play the long game. And we need to continue to work on those free-trade agreements that will lock in access for our exporters for the long term. If our free-trade sandpit gets big enough and profitable enough, maybe some of those who’ve been unwilling to play will join in.

Bryan Gibson

LETTERS

Farmer voice must be in tune AN OPEN letter to our industry groups.

In a recent issue of Farmers Weekly Alan Emerson called for one group to represent and advocate for our primary industries.

Emerson went on to state the collection of tribes and silo mentality is largely ineffective and costing farmers a fortune.

We have discussed this issue at our last two Rural Advocacy Network meetings as many farmers share Emerson’s view.

One of our actions was to write to our industry groups and Emerson’s article provides the platform to do this.

In the freshwater planning process we have seen a fragmented rural voice and at times conflicting rural sector views driven by self-interest.

Federated Farmers is caught in the middle, compromising its effectiveness.

Duplication is rife with some farmers paying up to five or six times for industry advocacy.

At the same meetings we can see Beef + LambNZ, DairyNZ, irrigation companies, fertiliser companies, Federated Farmers and Fonterra all with paid staff advocating on behalf of farmers.

Frustrated with the disparate and weak industry voice, farmers are forming their own groups, thus further fragmenting the rural voice.

Our request is for our industry groups to participate in an independently facilitated process with the goal of presenting to farmers a

proposal of how a single industry voice might look.

We believe our industry needs to openly acknowledge agriculture’s role in proven environmental issues.

However, we expect a strong challenge to misinformation, inadequate science and unreasonable or unjustified regulations. Farmers face a range of audits and duplication of compliance requirements.

Simplifying and streamlining these requirements is a high priority.

Farmers do need to embrace environmental stewardship but it must be done in a way that takes farmers on the journey and is in the best interests of rural communities not individual sectors.

It is vital any generic

industry voice is in tune with grassroots farmers.

Jamie McFadden Rural Advocacy Network The Rural Advocacy Network is based in Hurunui, advocates for rural communities and has representation across a range of sector interests.

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

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 6, 2018

31

We have no plan for the future Jack Keeys

N

EW Zealand’s primary industries are not prepared for the rise of synthetic food and alternative

proteins.

I recently attended the ProteinTech conference in Auckland and was extremely underwhelmed – not by the conference but by the state of our industry in the presence of looming, complete disruption.

Synthetic foods and alternative proteins have the potential to eliminate our country’s largest industry, cut our export earnings and collapse our economy.

Yet, despite the potential size of this challenge, there is complete disconnect between many of the leading primary industries organisations. We are very far away from developing a clear strategy.

When will these technologies become a real competitor?

What will the competition actually look like?

What will future market segments look like?

What strategies will we implement to cope with this new and unprecedented competition?

It appears the answer to all of these questions is: We really don’t know.

That just isn’t good enough.

Perhaps some of our problemsolvers and thought leaders don’t want to play their cards too early but is that just being hopeful?

Even if there are conversations occurring behind closed doors, is that really enough?

An obvious and common example of learning from the past is NZ’s wool sector and its transition from one of the most significant income-earners to what is now essentially a system cost with only a few niche winners remaining.

There are very useful lessons to be learnt from that collapse caused by synthetic competition.

But what must also be understood is the different global and competitive landscape we now operate in. Competitor investment is higher, technology

The

Pulpit

has increased, the world is more globalised and the pace of change is guaranteed to be exponentially faster. That means our coordinated and strategic approach must be a lot faster too.

With synthetic foods and alternative proteins now having commercialised products, significant investment and following multiple consumer trends I expect our entire industry would have an established, widely understood path to guide success into the future. We don’t.

The conversation of our primary industries needs to mature very quickly from disconnected and underwhelming to a collaborative, confident and clear direction.

So what needs to happen?

Starting with the obvious is developing our industry structure.

There must be a clear alignment of NZ’s stance across all industry players – alignment not just within certain sectors but from farmers to marketers to growers to industry bodies to processors to technologists to government.

An appropriately structured industry alignment can enable clear and consistent messaging to international markets for all products and services from NZ while maintaining the opportunity for agility and niche operations by individual sectors or companies.

Once that is established we can move to the real conversation, deciding what our primary

production landscape should look like.

I believe we should not be choosing between either highvalue, conventional production or high-tech, modern production. We should be a world leader in both.

NZ’s pasture based, freerange, non-genetically modified, antibiotic-free, high safety and quality products can and do lead the world. Selecting this as our industry strategy is the easy option. It requires little change and shifts all pressure to those marketing our products to do so in the best way.

But what happens if the next generation of consumers demands any animal death related to food production is unjustifiable?

What if Ireland, Sweden, Canada or other competitors with similar offerings outcompete us?

And what if a single mistake is made that tarnishes the reputation relied on in this strategy? The risks are clear.

NZ also has some of the world’s leading scientists and innovators.

There is substantial opportunity to be a global leader in specialised niches using synthetic technologies. That is particularly appealing with integration of NZ’s completely unique flora and fauna, which provide a valuable and protectable genetic basis to leverage for future synthetic foods or alternative proteins.

But what if consumers decide they will not buy any food that is processed, genetically modified or produced in a laboratory?

What if we can’t compete with the overseas investment in alternative production or don’t properly communicate our value proposition? Again, the risks are clear.

Therefore, NZ should not spend the next decade arguing between conventional or modern food production or traditional production verus genetic modification. We should acknowledge limiting our opportunities is much more damaging than liberalising our science.

We should ignite the potential for these opportunities to be

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recognised now while we can still be early adopters and before we are left too far behind.

And enabling the two broad production methods, both traditional and modern techniques, actually opens a third and perhaps even more exciting opportunity in which NZ could be a world leader.

Traditionally-produced meat and milk have nutritional composition that cannot be competed against, even by top-technology synthetic food in the short and medium-term.

The efficiency of synthetic food production offers opportunity to benefit the environment, animal welfare and global food shortages.

When the products of these two production mechanisms are combined they can enhance each other – maximum nutrition products combined with increased-efficiency foods.

This combination of value can be recognised together with the relatively new science evolving in the space of nutrient synergies.

Combining certain products and preparing them in specific ways can greatly increase the bioavailability of nutrition to

the human body. These nutrient synergies aren’t marketed and consumers haven’t been educated.

There is a clear opportunity for NZ to be a global leader and use this as a point of difference.

The result of all of this is three separate but integrated opportunities for our industry.

Traditional high-value food options for those consumers who don’t like change and won’t eat synthetic foods.

Commodity-based, high-volume production of synthetic food or alternative proteins to target the consumers who seek efficiently produced or more vegan-based foods.

And foods that cross both categories based on nutrient synergies, for the educated consumers who align themselves with the latest science and nutrition.

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

Opinion

32 FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

New chairman won’t make any difference Alternative View

Alan Emerson

I DON’T see the changes at the top of Fonterra having much effect on the co-operative’s direction or performance.

In 2012 Fonterra shareholder equity was $6.7 billion, the same as it is this year. In 2012 it collected 1493 million kilograms of milk, in 2018 the figure was 1480m kilos.

I don’t see any major change looking ahead to 2024 but I’d be happy to be proved wrong.

Blaming the downsizing of the board for a lack of experience among directors is interesting.

An alternative view would be that the Fonterra board’s gerrymandering of its selection process guaranteed inexperience would occur.

I was also intrigued the announcement was made just a few days after nominations for directors closed.

I look forward to seeing the names put forward and will be fascinated to see if the $7 milk payout figure remains intact.

I also wonder how long John Monaghan will retain his role as chairman.

It is interesting times for our largest company.

All that said, the biggest issue Fonterra and the entire dairy industry faces is the Dairy Industry Restructuring Act, (DIRA).

I believe the process is both robust and consultative.

The stakes are high. The future of the dairy industry will be shaped by the consultative process.

There are several issues that should be addressed.

The first is that we have areas in New Zealand where there is no competition for milk supply. The dominant operator, Fonterra, has a monopoly.

How you solve that problem won’t be easy but we do need to encourage nationwide competition.

Having said that, there are areas where there is considerable competition for milk and farmers benefit from that.

Then there’s going to be the question as to how far the review will go.

Will it get into environmental issues, thus encouraging submissions from the likes of Greenpeace and Forest and Bird?

I believe that is possible.

What Fonterra officially wants is spelled out in a predictable article in the name of then director Monaghan.

Fonterra doesn’t like the open entry provisions where it must

accept supply from new entrants.

It believes there’s enough competition.

The Monaghan article said open entry has the potential to lead to excess manufacturing capacity and will hold back moves up the value chain, ultimately resulting in business failures.

There’s also the problem of environmental and animal welfare issues.

There isn’t a lot of moving up the value chain now and my view is the Fonterra supplier exodus will create excess manufacturing capacity for it. Legislation won’t change that.

I also believe it is possible open entry will be tightened to include both location of the farm and farming practices.

The raw milk provision is another issue for Fonterra with the mega co-op believing we should back NZ companies and not subsidise foreign entities.

Finally, it wants a clearer path to deregulation.

My view is the raw milk provision was necessary at the establishment phase but less so now.

I can’t see any clear path to deregulation.

The end result will be decided politically and that is where Fonterra has real issues.

Even with a new chairman it has certainly burnt its bridges with NZ First and won’t have a lot of friends in the Greens. It has also done

NO CURE: Appointing a new chairman, John Monaghan, won’t fix Fonterra’s ills.

everything it could to get offside with Labour.

The Fonterra rumour factory has been in overdrive from wanting to be able to sell 49% of the co-operative to splitting the shares to production and value-added parcels to allowing non-farmer directors to chair the organisation.

I don’t believe any of that is politically realistic.

Credit Suisse is critical of Fonterra’s performance and recommends splitting the cooperative.

I understand the Credit Suisse business case for the split.

My view is we have successful co-operatives in NZ. Ravensdown and Ballance are really successful as is Tatua.

It isn’t the co-operative structure that’s at fault, it is the management and governance of the entity amply evidenced by Fonterra’s Chinese debacle.

There has been no growth in equity and a $6.5b debt. That

sits squarely with the board and management.

Agriculture Minister Damien O’Connor’s view is “Fonterra is our largest and most important company. Changes are needed and my view is that it’s as much about management and governance as structure. Individual dairy farmers must take responsibility for the company and get involved at all levels.”

I totally agree. If farmers don’t take charge of the process I strongly believe the future of the co-operative that is Fonterra is extremely bleak.

It is time for farmers to make their voices heard.

It is the farmers who have credibility. The board and management don’t, even with a new chairman.

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

Our ordinary is someone’s extraordinary Off the Cuff

Andrew Stewart

TOO often we can get caught in the trap of heads-down, bums-up farming without taking time for reflection on why we are actually doing what we do.

And sometimes it takes the eyes of a stranger to give fresh perspective and insight that is more valuable than gold.

For those who have gone through life without an aha moment, I truly feel for you.

These wonderful, life-changing epiphanies happen at the most unexpected times and lead you down the most extraordinary paths.

My wife Kylie and I have had a few over the years with various levels of harmony and success. But one that really sticks in my mind was the realisation our modest hill country sheep and beef farm tucked away in a corner of Rangitikei can be a life-changing experience for someone who walks in off the street.

Ting was a petite and polite

young Asian student who happened to visit our farm to get a change of scenery from the bland landscape of university.

After spending some time with her we felt obliged to ask if she had enjoyed herself, as you do wonder with some people.

Her response was that it was the best experience she had enjoyed in New Zealand in nearly two years.

Hang on a minute, did we hear that right?

How could gazing out at lush grass, feeding pet lambs and touching a few woolly sheep have such a profound impact?

It was then that the realisation dawned on us that through a different set of eyes what we see to be ordinary, others find extraordinary.

Since this lightbulb moment over 10 years ago our business has evolved considerably.

Back then I would have described us as a typical, youngish farming couple with a great opportunity to farm in our own right thanks to the efforts of generations past.

Today we are parents, sheep and beef farmers, tree planters, water quality improvers, tourism operators and event managers of a mud run among other things.

Through a decade of hard graft, persistence, lateral thinking,

PERCEPTION: Others have different views of farming to those doing the job.

ambition and even tragedies our business and lives have evolved in ways that we could not have dreamed possible.

Now I am not suggesting every farm in NZ has to become a tourism operation but one thing I have been taught by being a tourism operator is to look at our business, environment and myself through an outsider’s pair of eyes.

Our guests are normally well educated, enthusiastic consumers of the products we produce who hail from all corners of the globe. They ask confronting and insightful questions that actually make me pause to consider why we actually do that the way that we do.

We need to incorporate more of that thinking in all aspects of farming.

There has been much commentary of late about disrupters on the horizon.

Mark my words, they are not coming, they are already here.

Kiwi farmers have long been touted as world leaders in agriculture but when it comes to self-promotion and self-analysis we can certainly improve.

We need to move away from a philosophy where we farm behind closed gates and throw our gates open and farm like the whole world is watching, because it is.

Primary Industries Minister Damien O’Connor was recently

quoted saying “Agriculture is our noblest profession. This is an absolutely core component of our existence. People expect food to be delivered. But there is a complete disconnect to the realities of how it has been produced.”

As farmers we need to take these sorts of statements as seriously as a heart attack.

The days of relying on others to champion our industry are gone.

We need to stand up and shout from the rooftops all the positive aspects of farming in this country or we risk being run over by the bus that is the global economy.

It might be the way we interact within our communities, our portrayal of ourselves to the urban masses or our knowledge of where our exported products are ending up.

All of these facets need our hard work and attention as much as the lush green farms that we call home.

I am the first to admit I do not have all the answers but I can predict the future. If we, as an industry, make this investment in ourselves today the riches we will reap in future years will be beyond our current comprehension.

And remember that simple mantra that enriched our lives all those years ago.

Our ordinary is to someone else extraordinary.

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

33

Confidence despite headwinds Meaty Matters

Allan Barber

SINCE I attended the 2016 Red Meat Sector conference having missed last year’s, several things have changed considerably: two years ago Donald Trump wasn’t United States president, Silver Fern Farms hadn’t concluded its capital-raising with a Chinese investor, alternative proteins and non-meat burgers weren’t on the industry’s radar and there was little recognition of the need for a Red Meat Story.

This year the conference programme acknowledged those changes by focusing on disruption to global trade, the China influence, heightened consumer expectations, the effects of the digital revolution and the importance of building consumer trust by telling our story about product provenance, traceability and environmental credibility.

The conference was very well attended by farmers, processors and service providers, all of whom are optimistic about meeting the challenges ahead of an industry that has faced many different threats to its survival in the past 140 years.

The conference’s first session set the scene domestically and internationally with political commentator Colin James

giving his perceptive insight into the outlook up to and beyond the next election and trade negotiator Vangelis Vitalis’ unique perspective on the challenges and opportunities presented by growing protectionism and freetrade agreements.

James noted the disproportionate influence in government of New Zealand First and the Greens with the former needing to tread a fine line between differentiating itself without being disruptive while the latter’s tension between social and environmental issues could result in internal conflict.

Vitalis emphasised the stability of trade rules since the Uruguay round in 1995, which are now starting to fray under threat from global trade wars, notably between the US and China and the uncertainty of Britain’s relationship with the European Union after Brexit.

He expressed serious concern about the possibility of NZ being caught in the crossfire, especially because exporters are more important to employment and the economy than non-exporters.

On balance, his view is the future is still bright, citing the opportunities arising from the Comprehensive and Progressive Trans Pacific Partnership, scheduled to be signed in November and to take effect early next year, and other freetrade agreements but there will be bumps in the road with agriculture at risk.

Primary Industry Council chairman Lain Jager talked about the importance of ruminant proteins, which contribute nearly

30% of global protein supply. The outlook is good because the world will need more protein to feed its growing population and, as a result, the volume of ruminant protein will also grow but sustainability will be an essential requirement.

Rabobank China specialist Tim Hunt described the opportunity and complexity presented by that fast-growing market, underlined by the rate of increase in NZ’s exports in the decade since the free-trade deal was concluded, moving from 5% to 20% year on year.

China is resource poor, notably in the low area of arable land and amount of fresh water, while it remembers times of embargo, famine and mismanagement of resources.

Therefore, it has concerns about food safety and quality but must decide which products to supply internally or to import.

Strategically, staples it believes it must source domestically include wheat, rice and corn while dairy and beef are not considered strategic and slow growth in internal production will mean supply constraints will be offset by imports.

Import growth in beef is estimated at 24% a year while sheep meat will also grow strongly, particularly via e-commerce.

As shown by dairy and infant formula, first mover advantage is considerable and can be achieved by building brand recognition through a combination of provenance, adding value and choice of the right Chinese partner.

The day’s second session

GOOD FOR US: Internal production of beef and dairy products are not considered strategic in China so slow growth will be offset by imports, Rabobank China specialist Tim Hunt says.

covered the notion of disruption and how to adapt to a fastchanging world.

Productivity Commissioner Murray Sherwin talked about the need, both political and environmental, to move to a stable and credible low-emissions economy by means of emissions policy, legislation and institutions, regulation and policy and innovation and investment.

He drew a distinction between long and short-lived gases, the first requiring net zero inflows compared with the second, like methane, which should ideally balance outflow and inflow.

Methane is different from other gases and should therefore be treated differently when setting

the appropriate emission charge though accurate onfarm measurement presents a challenge.

Kaila Colbin, a climate project ambassador who has trained with Al Gore and is a director of ChristchurchNZ and an expert in exponential technologies, introduced the conference to the law of accelerating returns across a range of technologies, the principle of exponential growth, which our brains are not wired to understand, and the fact it is impossible to predict the future from the past.

She illustrated these with the examples of the exponential reduction in cost of LED lighting which has made indoor farming 100 times more profitable and the downward cost curve of producing alternative protein meat, which still has some way to fall.

The last presentation was by Mahyar Osanlouy, a research scientist and blockchain expert, who told the conference about the potential to create provenance and consumer trust by the use of blockchain technology that can provide a totally secure, shared transaction ledger providing guaranteed traceability and customer visibility.

It sounds to me like a solution to the unreliability of Nait.

A well designed conference reinforced by stimulating presentations.

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

Kind winter bodes well for a good spring Steve Wyn-Harris

SPRING is in sight.

The winter has been kind to us here.

We’ve heard of the mud and dreary conditions that many of you have endured.

We had a wet autumn and June but the tap suddenly turned off at the beginning of July and we recorded just 28mm for the month. It was one of the driest Julys I’ve recorded. It’s usually our wettest month.

There is rain forecast this coming weekend and it will surely rain at some stage through lambing so I’m not yet concerned about the prospects for the spring ahead.

However, the dry July has made farming conditions very pleasant.

I’ve been able to choose when to vaccinate ewes rather than waiting for weather windows, as is often the case.

Speaking of vaccinating, last

night’s Vet Services newsletter resulted in an exchange of emails between my mate the author, Richard Hilson, and myself.

He advocates vaccinating at four to five weeks and I was schooled decades ago that though the vaccine boxes say two to four weeks it’s better to be nearer the two weeks, a practice I’ve religiously followed.

He accused me of not reading his past preaching on the matter and was adamant he was right but wouldn’t supply me with any sort of peer-reviewed paper as proof.

But he was convincing enough that I’ll move this policy out to a month before the start of lambing in future.

The ewes tupped well with a good scanning and I was able to work them hard enough in the first trimester that I got some weight off and to date have had only four bearings.

Hopefully, I’m not tempting fate, as with most things it’s dicing with danger to make these sorts of statements.

Because they’ve been fed well over the last five weeks there have been no cases of metabolic issues and the girls have just started lambing with good birth-weight lambs and full udders.

I’ll be catching and tagging stud

lambs when they start hitting the ground in 10 to 12 days.

I’ve bought several mobs of yearling bulls in recent weeks.

We’ve asked as many questions as possible about their provenance and the agents have been good at chasing information to ensure we do all we can not to import Mycoplasma bovis.

I wouldn’t have been surprised to have had a call from the Primary Industries Ministry because of purchases from past years but to date haven’t.

I’ve got a few mates who are bull finishers and they have and are now going through the process of testing to see what might be lurking.

They report the time waiting for results is unnecessarily long and causes further disruption and stress.

The arriving yearlings get a quarantine drench and a six-inone and because it has been dry underfoot have been able to stay on pasture, mopping up the last of the rough feed.

I’m just starting now to get wires up on crops and beginning to breakfeed so that has been a bonus couple of weeks of not having to do that daily chore with several mobs.

However, all good things come

to an end and I’ll be shifting several mobs sometime next week Your View as I tour around the farm checking Steve Wyn-Harris is a Central lambing ewes.

Hawke’s Bay sheep and beef farmer.

The other benefit of the dry swyn@xtra.co.nz month was that the fencer came and had good conditions to replace the fences that I’d pulled out and were destroyed by the forestry harvest.

It’s great what a farmersweeklyjobs.co.nz couple of young fellows with a Agribusiness flash ramming Farm Manager machine can Fencer achieve in a few Livestock Co-Ordinator weeks.

Livestock Representative I haven’t been Manager able to graze Shepherd most of my hills Shepherd/General properly or at all Stock Supervisor since February Stockperson so it is good to Tractor/Truck/Machinery have brand-new, Operator stockproof fences up there.

Employers: Advertise your vacancy in the So, a busy employment section of the Farmers Weekly physical five to six and as added value it will be uploaded to weeks ahead but farmersweeklyjobs.co.nz for one month or close of application.

I reckon I’m up for the challenge Contact Debbie Brown 06 323 0765 for yet another or email classifieds@globalhq.co.nz season.

RURAL SECTOR

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From the Ridge

On Farm Story

34 FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

Weather, terrain rule the farm Otago’s Lambhill Station is remote, steep and exposed but through strategic investment and careful management it is achieving commendable levels of production. Neal Wallace met managers Chris and Lucy Thomson.

L

AMBHILL Station does not try to be anything but a large-scale breeding property.

Managers Chris and Lucy Thomson know better than to try to supply prime stock, acutely aware the climate and terrain always have the last say.

In many respects the weaknesses of the 22,000-stock unit Otago sheep and beef, hill-country property are also its strengths and knowing exactly where those boundaries lie and making early decisions are the keys to managing it.

The remote 4560ha station traverses rolling to steep hills above the inland reaches of the Taieri River, sitting at the end of a road between Strath Taieri and east Otago, an hour’s drive northwest of Dunedin.

Access to the station is across a joint road and rail bridge on the Taieri Gorge Railway line, which takes tourists between Dunedin and Middlemarch.

In the 13 years the Thomsons have managed the farm they have almost doubled its carrying capacity through an extensive regrassing, fertiliser and development programme.

Chris Thomson said it was never the aim to turn Lambhill into an intensive finishing property.

Its elevation, rising from 180m at the river to 700m above sea level, steep valleys and exposure to all elements of the weather limits options but also means they have to be prepared to make early decisions.

Grass stops growing in mid May and starts again in early September. In between Thomson has had snow 1m deep at the top of the farm and 70cm deep at the house.

Annual rainfall varies from 550mm to 800mm but does not always fall at the optimum time

while prevailing west to northwest winds can dry the ground out.

“It’s not a property you can ever plan on. There is no irrigation so you’ve got to do what the property allows you to do,” he said.

The weather in December determines Lambhill’s season so in November they wean ewes mated to a terminal sire to provide a quick-sale mob if needed.

“If it gets hot and dry by December it can impact pretty quickly.”

His focus, therefore, is primarily looking after his capital stock and is vital to make early decisions on whether to quit or retain trading animals.

“I don’t think an early decision is ever a wrong decision.”

Thomson and his agent Rob Fowler from Rural Livestock have developed a network of regular buyers for store lambs and cattle, keen to use the shifting ability of Lambhill stock.

A west Otago buyer has bought his lambs in recent years, last January buying up to 8000 at 30kg to 32kg liveweight. Two regular buyers, one from the Taieri and another from Dunsandel, have bought his Angus cattle.

They usually winter the calves and sell them in spring, the steers at 360kg to 370kg, but because of price and demand this year most were sold as autumn calves.

The Thomsons finished what stock the season allows and some years have fattened up to 7000 lambs at 17kg to 20kg.

This year they are wintering a

IN CHARGE: Chris Thomson manages Lambhill Station in Otago.

DIFFICULT: Access to Lambhill Station, centre, is via deep gorges and steep hills.

further 60 to 70 steers because they have the feed.

Traditionally, they don’t finish prime cattle and intend keeping options for the steers being wintered.

Come December the last thing I want is 200 steers running around trying to put weight on.

“Come December the last thing I want is 200 steers running around trying to put weight on.”

The limitations caused by the climate and topography do not prevent them from achieving commendable productivity.

Their 10,800 Romney

ewes lambed 140% last year unshepherded and their 680 mixed-aged Angus cows and rising two-year heifers calve between 90% and 92%.

Pregnancy scanning of ewes this year revealled they mated to a terminal sire at 190%, mixed aged at 185% and two tooths at 170%.

“I don’t think I need them to scan any higher. There are plenty of lambs in them.”

They put a ram over hoggets and a bull over yearling heifers to boost production.

The cut-off weight for the hoggets is 40kg and 2500 took the ram while 213 heifers went to the bull at 399kg.

Thomson said his two-tooths went to the ram at 68kg so lambing them as a hoggets has had no adverse impact.

As much as the Thomsons might curse the extreme climate it has its benefits.

Each year they grow about 250ha of turnips or second crop kale but ground conditions in winter are usually dry or dry very quickly after rain, meaning crop use is high.

Spring is usually reliable and after grazing most cropping paddocks need only a herbicide spray and are then direct drilled with grass or kale.

The cropping and regrassing programme is central to managing Lambhill.

About 1100ha of the property has been cultivated with a further 350ha developed through the spray and pray method.

Cover and roughage feed for stock wintered on crop comes from the undeveloped gullies and hillsides.

The property’s relative remoteness makes it difficult to source hay and silage contractors but Thomson views crops as a cheaper and better source feed than hay and silage.

“It is hard to grow grass here as it is and at the time of the year

that it grows the best you have to shut it up to make silage and then spend thousands of dollars turning good quality grass into maintenance feed then spend three months of the year feeding it out,” he said.

The focus for the last 13 years has been to replace the brown top and poor-quality forage with a more productive pasture based on cocksfoot, a variety that hangs on when it gets dry but bounces back quickly when it rains.

Ryegrass struggles in Lambhill’s harsh environment.

“If drought does not get it, grass grub or porina will.”

Other than having cocksfoot as the foundation variety, Thomson tries to tailor the pasture mix to the soil and location, variously using red and white clovers, fescue, plantain and other new varieties.

Quality and quantity are traded off for persistence.

“It is just about finding out the best species for the environment.

Persistence is important.”

Reversion to the original forage species is a constant challenge and Thomson is prepared to resow ground if needed to ensure a strong sward and to build up fertility.

“If it does not perform then I get rid of it.”

He has worked some paddocks twice in his time at Lambhill where the oldest pasture less than 10 years old.

The prevalence of young grass gives him a massive productivity boost.

Thomson measured pasture growth and off his young grass paddocks he was getting 10,000kg to 12,000kg of drymatter a hectare a year compared to 5000kg to 6000kg drymatter off the older blocks.

Fertility was very low when he arrived and has slowly been built up.

On Farm Story

FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

35

WORKERS: Chris Thomson and his team of dogs overlooking Lambhill Station.

READY FOR ACTION: One of Chris Thomson’s working dogs.

This year he added urea to his fertiliser mix to encourage growth of the nitrogen-hungry cocksfoot.

On 350ha of less accessible land he has found the spray and pray technique works well.

The process of aerial application of herbicide then grass seed has lifted carrying capacity on those areas from one to two stock units a hectare to six or seven, providing another source of productive pasture.

Lambhill was largely undeveloped when bought and Thomson said they have been fortunate to have the support of their owner to invest in capital fertiliser, a new woolshed and this year they completed a stock water scheme to 700ha.

The gravity-fed system taps into an aquifer 200m under one of the highest points on the farm and it now feeds 75 troughs through a 25km pipe network.

Stock previously relied on natural water in the gullies and Thomson said having easier and reliable access through this scheme should help productivity and animal health, especially when the weather is hot and dry.

A programme of subdivision has seen the station split up into 50ha paddocks but some 700ha native blocks remain. A lane provides easy access through one side of the property.

The remoteness of Lambhill offers other challenges as well.

EATING WELL: Lambhill ewe hoggets and cull heifers on a kale crop.

Thomson said sowing crops and pasture is the most important job of the year and has to be done at the optimum time, which isn’t always when a contractor is available.

That prompted the decision to buy a tractor and direct drill and employ a tractor driver-cum handyman.

“The timing is really important,” he said.

In addition to the tractor driver he employs a shepherd to help him run the farm with Lucy looking after the books and administration.

Thomson said it is a small but busy team which, together with suppliers, is invaluable in making the business work.

The Three O’clock River splits the station in two, hence the decision to build another woolshed beside the homestead to reduce stock movement.

The steep access out of the river valley means stock trucks have to be towed up the road to the new woolshed and fertiliser transshipped from trailers parked in the valley.

Similarly, access to the original woolshed is steep and difficult with trucks having to trans-ship stock to trailers at the bottom of the hill.

Their three children have been home-schooled but this year their youngest daughter makes the 35-minute journey to Outram School, a twice-daily trip done

It’s not a property you can ever plan on.

There is no irrigation so you’ve got to do what the property allows you to do.

week about with a neighbour.

Thomson said access issues add to the time and cost but soon became an accepted part of everyday management.

It is a simple system with simple goals, albeit largely determined by the property’s challenging environment and terrain.

36 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

Real Estate

DOWN: Sales of arable and greazing farms have fallen 25% and 28% respecitvely.

Signs good for spring market Alan Williams alan.williams@globalhq.co.nz

T

OUGHER rules on overseas investment in farms look to be having an impact on sales while the industry waits to see how Mycoplasma bovis affects the market in the spring.

Information being received by the Real Estate Institute is that overseas buyers are becoming frustrated by the delays and resulting expense in the Overseas Investment Office (OIO) consent process, the institute’s rural spokesman Brian Peacocke said.

“The OIO appears to be looking for reasons to say no to an application rather than reasons to say yes,” he said.

Peacocke’s business, Pastoral Realty group, has been involved in

one of the applications, where the investor withdrew.

“They pulled the pin. It was just too hard.”

Overseas buyers were never a large part of the New Zealand rural real estate sector but were significant in buying bigger blocks.

“Our experience in the South Island is that they are prepared to pay more and there may be some frustration among vendors not able to get those prices.”

The M bovis virus is also affecting farm sales, with the latest institute report mentioning it as an issue being watched closely in Northland, Waikato, Hawke’s Bay, Taranaki, Wairarapa/Wellington, Otago and Southland.

In the important Waikato dairying region, Peacocke, who is based there, expects increased listings in the spring but said

there will be much discussion on biosecurity measures to cope with the risk of the virus.

The Ministry for Primary Industries is bulk-testing milk supply in a process that might take the next three or four months to complete through to conclusive results.

If an increase in the rate is confirmed that will slow down the rate of sales and the doubt and speculation is already resulting in a lot of work for the legal profession in forming clauses in the documentation to protect both buyers and sellers.

Peacocke was speaking after publication of the institute’s commentary for June, which showed a fourth successive year of quieter activity in the three-month period covered.

The 2015 numbers were 479, then 472 in 2016, 459, last year,

REBOUND: Dairy farmers had dropped out of the dairy support land market but agents expect it might pick up again as they set up for self-contained operations in the Mycoplasma bovis era.

and a drop to 427 in the latest three-month period.

Dairy farm sales have eased back a shade over that time and there has been a big drop in grazing property sales.

“Dairy farmers have dropped out of the dairy-support market in that time but we think that might pick up again now.”

This is a result of the M bovis situation, with reports from agencies in Taranaki, Wairarapa/ Wellington, Otago and Southland recording renewed interest as farmers seek to be self-contained in their off-season grazing management.

The report also shows a 17% drop in overall farm sales in the year to June, to 1480, compared to the previous year.

The biggest falls in sales were in the arable sector, down 25%, and grazing farms, down 28%.

Some of the fall came down to availability of properties, Peacocke said.

Nearly all product groups are achieving good prices with wool being about the only exception but being more than offset by high lamb and mutton returns.

“Farmers enjoying the good incomes might see that as a good reason to hold on and as we get into spring some might also be asking if that might be a good time to sell.”

In Waikato the poor late winterspring period last year wasn’t an easy time to sell farms and the improved conditions coupled with some difficulties getting good staff in some areas might make the decision easier this year.

“Signals we’re seeing suggest there will be some moves made after calving is finished, though we did have similar signals last year.”

Nationally, there is very good demand for sheep and beef properties and that is evident in the good prices achieved in Otago and also Canterbury, where there

are very few properties available.

Demand is also strong on the east coast of the North Island though pricing is not as strong there.

Good finishing land is scarce to buy because of the large dairy take-up in previous years.

Dairy farmers have dropped out of the dairy-support market in that time but we think that might pick up again now.

Brian Peacocke Real Estate Institute “We had thought that some of the second and third tier dairying land might come back to dairy support or running heifers or for finishing but we’re not seeing that yet.”

One move being noticed is forestry interests active buying into sheep and beef country in Wairarapa and Hawke’s Bay. Peacocke said the horticulture market continues to amaze, driven by the demand for kiwifruit orchards, especially those with the Gold variety.

Activity slowed over winter while vines were being pruned and tied down but demand is expected to resume unabated in the spring.

The increase in Gold orchard values is also dragging up green fruit orchard values.

Demand for horticulture land is also strong in Northland for kiwifruit with new Gold licences issued and avocado development.

There are restricted areas of quality finishing or dairy land available for kiwifruit.

FARMERS WEEKLY – August 6, 2018

Real Estate

farmersweekly.co.nz/realestate 0800 85 25 80

37

SPRING 2018 PROPERTY PULL-OUT

We’ve got you covered

The Spring Property Pull-Out feature will be running through all issues of Farmers Weekly in October. Book a campaign of three or more advertisements in October and get a complimentary editorial on your property in one of our pull-out specials.

We’re very proud that Farmers Weekly remains committed to the Real Estate industry, and that we have been the most read rural publication for more than a decade.

Give your advertising campaign the edge with an advert on farmersweekly.co.nz/realestate

For more information on real estate advertising contact Shirley Howard on 06 323 0760 or email: shirley.howard@globalhq.co.nz. *Terms and conditions apply.

©2107RE-SPHP

Talk to your agent now and make sure you are in the paper that more farmers read.

38

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

Canterbury and Otago regions

Australia’s Top Dairy

Dairy farming investment opportunity

An opportunity exists to invest in an established Limited Partnership alongside existing partners. The business incorporates multiple freehold and leasehold land holdings covering ten properties across the Canterbury and Otago regions.

• c.5,000 ha • c.13,000 dairy cattle • properties 86% irrigated • generate c.4m kgMS per annum

FARMERS WEEKLY – August 6, 2018

WALCHA DAIRY, NSW 626ha opportunity awaits

Targeted to supply profitable northern liquid milk market

Contact PwC Advisory Services for further details. Offers must be received not later than 4pm Friday 17 August 2018.

E: dairyopportunity@nz.pwc.com T: 09 355 8171

The securities available are interests in the limited partnership, and shares in the general partner of the limited partnership, which would give the investor an interest of at least 55.2 percent in the limited partnership.

The minimum amount payable by a subscriber will be substantially in excess of $750,000.

Accordingly, any subscriber will be a “wholesale investor” in terms of the Financial Markets Conduct Act 2013, and this notice is not regulated by that Act.

• • • • • •

World class dairy on the NSW Northern Tablelands Producing over 7.3 million lts milk FY16/17, & over 7 million lts FY17/18 MS 533,000kg FY16/17 & MS $8.40/kg to May 31st FY17/18.

Milk income 64 CPL to May 31st FY17/18 Additional milk payments in July/August approx. 4.3 CPL & $0.54/kg MS. Significant NSW production and freight competitive advantages with Full management team in place Walcha Dairy is a true industry leader, making use of the latest technology and management practices to allow for the greatest productivity to be achieved.

Roderick Wyllie 0427 377 513 Roderick@protam.com.au

Stuart Watts

0439 661 655 stuart @protam.com.au

FARM WITHIN CITY BOUNDARY

QUALITY DAIRY FARM

DAIRY FARM WITH LIFESTYLE

• 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

Google ‘Sallan Realty’ Your Farm Sales Specialist

THE DESTINATION FOR RURAL REAL ESTATE

Land is the biggest asset to any farming business - so it pays to stay up-to-date with the market.

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

LES CAIN 0274 420 582

Licensed Agent REAA 2008

LK0093551©

PwC Advisory Services (Licensed under the REAA 2008) © 2018 PricewaterhouseCoopers New Zealand. All rights reserved.

FARMERS WEEKLY – August 6, 2018

Real Estate

farmersweekly.co.nz/realestate 0800 85 25 80

39

TR ANS F O R M I N G R E A L E STAT E I NTO REAL ADVANTAG E FOR SALE FERNHILL FOREST LAND HILLSIDE ROAD, PORIRUA

FORESTRY LAND 37KM TO CENTREPORT For the astute purchaser, the land under Fernhill Forest provides a unique opportunity to acquire a significant land holding only 37km from CentrePort.

The lower slopes already have roading and skids sites in place, with 82ha replanted in 2014. A Cutting Right is being retained across the balance of the crop through to 2022 following which the successful purchaser will assume ownership of substantial additional roading and infrastructure. The underlying land potential and proximity to Wellington helps underpin the investment attributes. + + + + +

381.52ha freehold land 37km to CentrePort First and second rotation forest land 282.3ha productive area 82ha in 4 year old Radiata

FOR SALE $1.6m (plus GST if any)

CONTACT US JEREMY KEATING

021 461 210 jeremy.keating@cbre.co.nz

WYATT JOHNSTON

027 815 1303 wyatt.johnston@cbre.co.nz

w w w.cbre.co.nz/213641Q28 CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)

Property Brokers Licensed REAA 2008

Proud to be here For over 30 years, Property Brokers has been the specialist in helping people in the provinces buy, sell and manage their rural properties. No one knows property in the regions better than us because our people live in the areas in which they work, combining their local knowledge and passion with market leading expertise and reach.

So wherever you see our brand, you can trust that you’re working with a Property Brokers rural professional who will put you first. Because that’s the way we do things around here.

Looking to buy, sell, invest or have your property managed?

Call us on 0800 367 5263 or go to pb.co.nz

Employment

Wanted for Timahanga Station, a couple to undertake the positions of Tractor Driver/General Hand and Cook

• Cooking for five permanent staff and casuals as required

DUTIES REQUIRED FOR TRACTOR DRIVER/ GENERAL HAND

LK0093771©

• Tractor driving • Maintenance of machinery and vehicles • H/T Licence is required • Fence repairs • Feeding out in winter • Dagging when required • Firewood • Some stock work in yards when necessary • Dogs not required

Please phone Alan Roberts 06 388 0405 evenings

Crusader Meats, Benneydale, NZ

We have an excellent opportunity at our sheep, goat and bobby calf processing plant for a Livestock Co-ordinator.

DUTIES REQUIRED FOR COOK

Must be able to work as a team • A 3 bedroom home with double garage is supplied • Correspondence school only

RUN OFF YOUR FEET?

Reporting to the Plant Manager, this integral role liaises between suppliers and farmers, livestock agents and our preferred trucking company to organise and coordinate all stock killed at the Benneydale plant and other sites.

Another key component of the role is organising and coordinating any share farming stock.

FLY OR LICE problem?

Electrodip - The magic eye sheepjetter since 1989 with unique self adjusting sides.

Incredible chemical and time savings with proven effectiveness.

Phone 07 573 8512 w w w. e l e c t r o d i p . c o m ANIMAL AND HUMAN healer, also manipulation on horses and dogs.

In North Island from 9 - 20 August. For more information phone Ron Wilson 027 435 3089.

CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance.

Unbeatable pricing.

Phone 06 835 6863. www.craigcojetters.com

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

DOGS FOR SALE

PIPE LOCATION SERVICE. PVC and Alkathene pipe location and leak detection. Phone Rodney 027 489 2083.

2 x 15 MONTHS HUNTAWAYS. 1 bitch, 1 dog. Basic commands on training sheep. Ready for work. Phone 021 137 2714.

12 MONTH HEADING dog.

Fast, pulls strong, good command. Flanks on. Good balance. Suitable station or trial potential. Nolan Timmins 06 862 7543.

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

CONTRACTORS GORSE AND THISTLE SPRAYING. Experience teams with mist blowers, hand pumps and gun and hose. No job too big.

Camp out teams. Phone Dave 06 375 8032.

DOGS FOR SALE HUNTAWAY PUPS, well bred. 10 weeks. Phone 06 863 9815.

75 DOGS IN STOCK! Deliver South/North Islands.

45 day trial. Guaranteed.

View online/onFarm. www.youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.

Their current farmhand is retiring after 16 years, so they are now looking for someone new to work alongside the owner on the farm. You will need advanced machinery skills, as you will be handling good quality, modern, high spec tractors and cropping gear. Equally important, experience with sheep and good stock handling ability is a must. You will need to have a good working dog.

Please apply through www.no8hr.co.nz reference number for this position is 8HR1036.

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

SHEPHERD GENERAL

General shepherding duties on a 10,000su property.

Tuscan Hills is a well-known hill-country property in the Pahiatua district.

We are seeking a person who will be working alongside the manager, but will also have the ability to work solo.

The location is flexible as a lot of the work can be done offsite and a company vehicle will be provided.

The applicant should have 2-3 working dogs under good control.

All applicants will be subject to a police screen and pre-employment drug screen.

We run a sheep and beef farm and the person needs to be efficient in working well with stock.

For more information please contact us on 07 878 7077 extn 701 or email hra@crusadermeats.co.nz

There is a comfortable 2-bedroom house supplied.

Name of two references to be supplied.

Please contact: Craig McGregor 06 326 8286 or tuscan.hills@xtra.co.nz

Classifieds

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

Our client has a 350 ha farm near Arapuni that has belonged to the same family for 73 years. They grow 200ha of maize each year and winter 5000 lambs and up to 200 dairy grazers.

WHATATUTU DOG SALE. CHANGE of date and venue. Saturday 1st September at Otara Station, 319 Whatatutu Road, Te Karaka, Gisborne. Enquiries Allen Irwin 06 862 3618 or email: toromirostation@ gmail.com YOUNG HEADING and Huntaways. Top working bloodlines. View our website www.ringwaykennels.co.nz Join us on Facebook: Working dogs New Zealand.

Phone 027 248 7704.

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

BOOK AN AD. For only $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds. Ph Debbie on 0800 85 25 80 to book in or email classifieds@ globalhq.co.nz

DOGS WANTED 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.

FARM MAPPING YOUR FARM MAPPED showing paddock sizes.

Priced from $600 for 100ha. Phone 0800 433 855. farmmapping.co.nz

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.

PRATTLEY SHEEP YARDS. Excellent condition. $9,500. Phone 06 385 8057.

GOATS WANTED

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.

HORTICULTURE 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.

PROPERTY WANTED HOUSE FOR REMOVAL wanted.

North Island.

Phone 021 0274 5654.

TRACTOR PARTS JOHN DEERE 6410, 6600, 6610, 6800, 6900, dismantling Andquiparts.

Phone 027 524 3356.

WANTED TO BUY CATD6C with rops, winch, blade and/or CATD6B with blade, winch. Any condition considered. Phone 07 826 3033 or 021 929 817.

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

FOR SALE

SELLING

SOMETHING? 0800 85 25 80

MORE CLASSIFIEDS

SEE PAGE 42

T HI NK P R E B U I L T

NEW HOMES SOLID – PRACTICAL

WELL INSULATED – AFFORDABLE

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

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

LK0093237©

ANIMAL HANDLING

• Faithfully farmed 350ha property • Wintering sheep and dairy grazers • Close to Putaruru and Cambridge

Applications close 16 August 2018.

The successful applicant will have the following: • Previous livestock knowledge and experience • Preferably have sound knowledge of the meat industry • Ability to work unsupervised and work flexible hours to suit the role • Excellent communication skills • Good computer literacy skills

Phone Debbie Brown 0800 85 25 80 or email classifieds@globalhq.co.nz

If you love the thought of driving high spec tractors and machinery, this could be the role for you.

Housing is a comfortable and tidy three-bedroom cottage, with primary schools handy and a college school bus at the end of the road. This is generally a 40hr/ week role, so there is plenty of time to hit the bike trail or get on the water with Lake Karapiro on your doorstep!

LK0093772©

Advertise your vacancy in Farmers Weekly

classifieds@nzx.com – 0800 85 25 80

DRY STOCK ROLE WITH VARIETY

LIVESTOCK CO-ORDINATOR Crusader Meats NZ Ltd is a progressive meat Export Company located just out of Benneydale in the King Country.

Located on the Taihape-Napier road, 65km from Taihape and 75km from Hastings

41

LK0093791©

TRACTOR DRIVER/GENERAL HAND AND COOK

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

LK0093754©

FARMERS WEEKLY – August 6, 2018

42

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

Classifieds

FARMERS WEEKLY – August 6, 2018

LAMB DOCKING / TAILING CHUTE

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

Notice of Election 2018 Board of Directors Election

LK0093733©

VETMARKER

Nominations are called for candidates to stand for election for the director position to represent Area 5 as described below.

Bruce Wills is the incumbent director for Area 5 and is due to retire by rotation later this year. Bruce has confirmed his intention to stand for re-election.

Area 5 encompasses the Gisborne, Wairoa, Hastings, Central Hawkes Bay and Tararua districts and Napier City.

The Combi Clamp …

Anthony Morton Returning Officer - Ravensdown Limited PO Box 3138, Christchurch 8140

EARMARKERS

Nominations must be made on the official form, which can be obtained from the Returning Officer. Each nomination form must be signed by the candidate and two nominators who must be transacting shareholders of Ravensdown and who are eligible to vote for the Area 5 election. Nominations must be received by the Returning Officer by 5pm on Friday 17 August 2018.

BIRDSCARER DE HORNER HOOF TRIMMER

For further information or nomination documents please contact the election helpline 0800 666 038 or email nominations@electionz.com.

Known for good sheep flow, has been tested and proven to be the fastest and most popular Sheep Handler sold in Australia, replacing many Automated Sheep Handler units on properties throughout Australia and New Zealand.

Drystock Lease Land Wanted in Hawke’s Bay We are a married couple in our mid 30’s currently leasing 430ha in summer safe Pukititiri.

FARMERS CITRUS TREES

We are looking for a 80ha + lease in a warmer climate in Hawke’s Bay to compliment our current operation.

Specialists in superior field grown trees, all varieties grown.

Cattle Handling Equipment Standard Crush, Vet Crush, Auto Head Yoke, Sliding Gates • Heavy Duty • Hot dipped galvanized • Efficient • One-man operation • Sure catch – never miss • Self-catching with auto reset • No weight limit • Easily adjustable width • Built to last • Full range of options available

We have very straight forward policies and treat our lease as if it is our own property. We will do the same with any other opportunity we are offered.

LK0093741©

• Do you need new farm tracks or upgrade existing ones?

No accommodation needed.

• Or have you metal that could be used for crushing?

We can provide references and would We do: consider anything.

URL Closing date Price list • On site metal crushing Proof read by:_______________________________ With: _______________________________ Date:_______________________________ tested: checked: Please contact Aaron 027 509 7178 available.

• Metal supply and cartage • Upgrade existing tracks and drainage • Retaining wall construction revisions: • River protection and stream maintenance • All types of earthworks and metal contracting 1 2 3 4 5 221 Snodgrass Rd

2018

advertising proof

publication Hawke’s Bay Today

Tim McColl, Owner / Operator

LK0093749©

Reliable Strong, ffi ient and E c

job: C61870 size: 9 x 3

Tim McColl Contracting Ltd Kiwitea, Feilding

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

position

sort

All types of earthwoks and metal contacting

Ph: 07 552 5780 Fax: 07 552 4638 grant@copperfield.co.nz www.copperfieldcost (excl gst) nurseries.co.nz

Sat 4 Aug

public notices

$467.78

Sat 4 Aug

public notices

$286.90

Farmers Weekly

Mon 6 Aug

public notices

$816.75

www.combiclamp.co.nz

Videos on website – On-farm demonstrations available South Island – Stuart 027 435 3062

COLOSTRUM POWDER FOR CALVES $0

RD 4 Tauranga

Gisborne Herald

0800 227 228

livestock@nzx.com – 0800 85 25 80

run date

COPPERFIELD NURSERIES

CLASSIFIEDS

Advertise in Farmers Weekly

$0

$25 $50 $75

PLEASE NOTE: that we have prepared this advertisement proof based on our understanding of the instructions received. In approving the advertisement, it is client’s responsibility to check the accuracy of both the advertisement, the media and the position nominated.

Cancellation of adverts booked with media will incur a media cancellation fee of $50.

Also available colostrum for calves, lambs, foals, your contact: Amy fawns, kids and alpacas.

Phone Debbie Brown 0800 85 25 80 or email classifieds@globalhq.co.nz

Contact Halen Health for enquiries/orders Freephone: 0508 777 777 Email: sales@halenhealth.com

Livestock STOCK REQUIRED STORE LAMBS 28-40kg

IN-MILK AND FORWARD DELIVERY DAIRY COWS

2016 Born WANTED Friesian Heifers (F12+) 2017 Born Heifers

R1 YR ANG & ANG X STEERS

$1250 GrossAngus Friesian, Jersey,

• Pick 350 from 500 FrFrX hard-working cows. Started calving 15 July. 30 years breeding, with SCC in top 5%. Will shift well. Delivery until early September. $1780. Liam McBride 021 222 2662

230-280kg

North Island Island North

Luke McBride Wayne Doran Wayne Doran Luke McBride

027 493 304 8957 0533 027 027 493 8957 027 304 0533

South Island Island South

• 170 capacious in-milk cows, complete FrFrx herd. CRV Ambreed 30 years, fully recorded, farmed on coastal Northland property under System 1. View photos Listing # NOR60750. Donald McKenzie 021 754174. Other Northland genuine cows available.

RichardHarley Harley 021 021765 765430 430 Richard GregCollins Collins 027 481 481 9772 9772 Greg 027

LK0093761©

• Up to 40 surplus in-milk LIC Friesian cows calving from mid-July, from an exceptional closed herd for over 35 years averaging 525ms. BW95/47; PW115/69; RA98%. $1700.

www.dyerlivestock.co.nz

Ross Dyer 0274 333 381 LK0093792©

• 90 Quality Fr/FrX Ambreed cows, (60Fr. 30XB) 50 years same family, 28 years CRV, 6 weeks AB, tailed with Red Devon, low SCC. Plus, 30 FrX R2 heifers from the same herd, Started calving 19/7. In-calf to Jersey. Very well grown. Wayne Robb 021 712 511

• Long-established closed herd for June delivery. Pick 400 from 450, 2-8yr. BW 82/42 PW 103/52 RA98% 430ms system 2, Nominated LIC Bred. Early sale due to 1st farm purchase. Contact Steve Emile 027 224 3880

R2 YR ANG & XBRED HEIFERS SIC COWS –Due Aug/Sept

LateMid September Delivery July Delivery

• 62 x Autumn calved cows. Complete line of autumn cows on this property, as part of their spring/ autumn set up. Fr & FrX, 2-8yo. 45 are 3 year olds. Have been running with Hereford bull for 6 weeks. Currently producing 1.5ms/cow/day on grass and PKE in the shed. BW50 PW71 RA73 $1385. Immediate delivery. Listing # WAI60969. Wayne Robb 021 712 511

Opportunity to buy the whole herd of 525 cows, plus replacements, for June 1st delivery or can be purchased prior to mating to suit your calving dates. Herd averaging 580ms on approx. system 5. POA. Contact Chris Martelletti 027 497 3802

SIL EWES Due Aug/Sept R2 YR STEERS 400-500kgs

Export Contract Contract Export

• 55 x Aug-Oct Fr/FrX calving cows (from a herd of 850) Big producing (average over 500ms, system 3) BW83 PW81 RA99. Immediate delivery. $1650. Listing # WAI60661. Wayne Robb 021 712 511

A Financing Solution For Your Farm E info@rdlfinance.co.nz

LIVESTOCK ADVERTISING Advertise your stock sales in Farmers Weekly

farmersweekly.co.nz

LK0093662©

The most versatile Sheep Handler on the market • No power • No air • No breakdowns • Hands free operation • Good flow • Complete control • Portable • Weigh, dag, draft, feet, vaccinate – all in one pass!

LK0093701©

Combi Clamp Sheep Handler

Livestock

THE NEW ZEALAND FARMERS WEEKLY – August 6, 2018

PINE PARK RAMS

Tuesday 21th August 2018 – 12.30pm 341b Matauri Bay Road, RD1, Kaeo, Northland

FOR SALE LK0093719©

• 34 in-milk Aut calved Fsn/FsnX MA cows, BW 78, PW 113, 67,000 com cell, 85ms in 52 days, $1300.

Bunter 027 444 1169

SALE TALK

A young boy enters a barber shop and the barber whispers to his customer.

‘This is the dumbest kid in the world. Watch while I prove it you.’

The barber puts a two dollar coin in one hand and two 50c pieces in the other, then calls the boy over and asks, ‘Which do you want, son?’

The boy takes the 50c pieces and leaves.

‘What did I tell you?’ said the barber. ‘That kid never learns!’

Later, when the customer leaves, he sees the same young boy coming out of the local dairy. ‘Hey, son! May I ask you a question? Why did you take the 50c pieces instead of the two dollars?’

The boy opened up his bag of lollies and replied, ‘Because the day I take the two dollars, the game is over!’

Matauri Angus has established itself as a leading provider of NZ based genetics in the Australasian industry.

• Pick 200 from 500 Aut in-milk cows, vetted in-calf to Hfd, Imed or later del.

Eric 027 233 1687

Matauri genetics have had phenomenal success in a wide variety of environments having been used in over 200 stud herds. Matauri Reality 839 alone has had 4500 progeny analysed

by Breedplan. Sons of the Matauri sires have sold for up to $47,000 and consistently achieved high averages.

• 143 Aut born Predom Fsn hfrs, 120kg/lw, BW 133, PW 125, owner bred, $780.

Noel 027 588 7632 • Jsy week old bull calves avail, from 2 top Jsy herds, continual supply.

Stewart 027 270 5288

MATAURI OUTLIER F031

• 30 NO ID Aut Fsn hfrs, 1 herd code, 170-180kg/lw/avge, quick sale, $480.

Brent 027 551 3660

Prices exclude GST 0800 548 339 | nzfarmsource.co.nz/livestock

EARN FARM SOURCE REWARD DOLLARS ON ALL FARM SOURCE LIVESTOCK PURCHASES & SALES*

CONTACTS Cam Heggie Bruce Orr Neil Miller Tom Bayly Colin Maxwell LK0093471©

• 140 Alpaca – female, full details available.

Dave 027 614 8100

Sheep

380 Romney Ewe Hoggets 185 Romney 2th Ewes 1300 Romney MA Ewes Scanned 180% to Romney & BF Rams 9/4/18, shorn late July. Hoggets drenched with Magnum, Ewes drenched with Encore and Nilvax. Turanganui/Motu-nui based flock. Big strong high producing ewes.

8 Turanganui/Romney MA Rams 5 Suffolk MA Rams 2 Huntaway 4yr bitches 1 Heading 8yr bitch Quantity of Lucerne and Meadow Hay and Baleage Plant Taege 2 Bale Feeder, Clamp Bale Feeder, PZ Haybob, SP Trailing Spreader 150kg Hopper, FIAC Air Compressor (2016), Hardi 600L Spray Tank complete with Reel Hose, Gun & Boom, James Round Baleage Tipper,

CASTLEROCK SPRING CATTLE SALE Northern Southland Friday 10th August, 10.30am Offering comprising approx 300 Hereford Yearling Steers 50 Angus x Yearling Steers 100 Angus x Yearling Heifers 40 Hereford Friesian x R2 Steers

Further Inquiries: Barry McAlister 0274 416 432

For more info please email colin@matauriangus.com or visit www.matauriangus.com

Are you looking in the right direction?

Nigel 0800 85 25 80 • farmersweekly.co.nz

Other

TURANGANUI ROMNEYS “Reliable performance you can count on”

CLEARING SALE STOCK & PLANT Tuesday 14th August @ 1.30pm A/C S & R Manson Stratford Creek, Lowburn, Cromwell

027 501 8182 027 492 2122 027 497 8691 027 415 4125 09 405 0357

LIVESTOCK ADVERTISING

Your source for PGG Wrightson livestock and farming listings Beef

65 R2 Angus Bulls

The stud herd of 400 females is run under commercial conditions on hill country.

Post Driver, James Subsoiler and Pipe Chute, Maxi-till 920 10’ Cultivator, Quick Hitch, Back Blade, Weed Wiper, Lyco PowerTech Wool Press, 2 Sunbeam Shearing Machines, 1 Lister Shearing Machine, Portable Dagging Plant, Rectangle Wool Table, Wool Bins, Fadge Holders, D/E Sunbeam Grinder, Single Hecton Sheep Loading Ramp (2yr old), Hecton Sheep Handler (air operated), Prattley Tailing Yards (12 gates), Walk-in Freezer, PowerPro PW3200 Water Blaster, Honda Generator EX3100CX, Tru-Test Series 2000 Indicator & Load Bars, 2 x 10T Grain Silos (V Bottom on stands), 30T Grain Silo (V Bottom on stands), 300 gallon Diesel Tank, 3 Hay Feeders, 12’ Tandem Flat Deck Trailer, Dog Box and Gear Unit (alloy), 2 Bay Dog Motel, Tailing Chute, 2 x Te Pari Tailing Cradles, Searing Iron, Scrim, Quantity of Electric Fence Stakes and Reels, Irrigation Sheets, Canvasses and Clocks, Posts, Netting, Warratahs and Numerous Sundries.

Outside Entries Invited.

Further Inquiries Allan Brown 027 555 4435 Steve Manson (vendor) 027 644 2932

Logan and Rex Evans have been using Turanganui Rams for the past 18 years.

FOR SALE 51 Frsn/ Frsn x R1 Heifers Complete replacement line of Heifers.

Well grown and worth inspection. Buy in time to pick your mating date.

BW 77, PW 91 Price $1,080.00 Contact: Matt Hughes, 0274 052 824

Freephone 0800 10 22 76 | www.pggwrightson.co.nz

Logan & Nicole Trelise and Max Evans with Hilary & Rex Evans

Helping grow the country

“Our focus at Mt Peel is on minimal inputs while aiming for high performance and Turanganui genetics fits this well.

Our sheep need to perform well , but I don’t want to live with them.”

– Logan Evans

Holmes Warren 06 307 7802 Mike Warren 06 307 7841 or 0274 465 312 Todd Candy 06 307 7554 or 0274 795 006 RD 2 Featherston 5772 “Reliable performance you can count on”

LK0093696©

SIL Carcass Scanned FE Testing

Key: Dairy

43

annual bull sale

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

Edward Sherriff 06 327 6591 021 704 778

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

MARKET SNAPSHOT

Dairy

Grain & Feed

MILK PRICE FORECAST ($/KGMS) 2018-19

SHEEP MEAT

DOMESTIC

FONTERRA 2018-19

AGRIHQ 2018-19

7.00

6.53

AS OF 24/05/2018

AS OF 19/07/2018

MILK PRICE COMPARISON

Last week

Prior week

Last year

Canterbury (NZ$/t) 409

340

NI mutton (20kg)

5.15

5.15

4.10

399

349

SI lamb (17kg)

8.00

7.95

6.60

Feed Barley

400

399

354

SI mutton (20kg)

5.40

5.40

4.15

221

Export markets (NZ$/kg) 9.06

9.08

7.97

6.5

Maize Grain

433

433

418

6.0

PKE

285

285

219

WMP GDT PRICES AND NZX FUTURES

286

286

UK CKT lamb leg

* 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.

Last week

Prior week

Last year

2500 2000 Sep 17 Dec 17 Mar 18 C2 Fonterra WMP

Wheat - Nearest

306

290

246

Corn - Nearest

215

209

201

521

483

368

CBOT futures (NZ$/t)

4.5

ASW Wheat

478

467

361

Feed Wheat

475

464

281

Feed Barley

483

451

332

PKE (US$/t)

Jun 18 Sep 18 NZX WMP Futures

6.5 5.5

Ex-Malaysia

128

116

South Island 1 7kg lamb

8.5 7.5

NZ venison 60kg stag

600

$/kg

3000

7.5

INTERNATIONAL

APW Wheat

3500

North Island 17kg lamb

8.5

Australia (NZ$/t)

4000 US$/t

6.75

399

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

8.05

421

Waikato (NZ$/t)

May 18 Jul 18 AgriHQ Seasonal

6.5

500

4005.5 300

4.5

Oct

90

Oct

Dec

Dec

Feb

Feb

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

Prior week

vs 4 weeks ago

WMP

2970

2945

2930

SMP

2060

2050

AMF

5650

Butter

5000

Last week

Prior week

Last year

Aug

This yr

Last week

Prior week

Last year

1945

Urea

485

485

477

3.12

3.10

2.80

5690

6000

Super

304

304

309

Nth Isl 37m

3.42

3.32

3.00

5070

5400

DAP

702

Sth Isl 35m

4.55

4.55

3.40

750

750

2900 Oct

Latest price

Nov

Dec

Jan

4 weeks ago

Sharemarket Briefing NEW Zealand’s business confidence has hit a 10-year low and trade war tensions have returned. Our business confidence continued to fall in July, reaching its lowest level since May 2008 according to the latest ANZ Business Outlook Survey. Business confidence dropped to 45% of respondents reporting they expect general business conditions to deteriorate in the year ahead. That compared to 39% last month. A key theme is that businesses are battling in the face of higher input costs and declining profitability.

Farmer confidence fell to a six-year low amid uncertainty over Government policies with 39% pessimistic about the general economic outlook, up from 34% six months ago.

NZ’s unemployment rate rose to 4.5% for the quarter ending June, up from 4.4% at the end of March. The figure was slightly above forecasts of 4.4%. Wage inflation in the private sector rose a modest 0.6% or 2.1% for the year, largely due to the Government raising the minimum wage to $16.50 an hour.

Trade war tensions between the United States and China were reignited after The White House said it will consider lifting proposed tariffs on US$200 billion of Chinese goods from 10% to 25%.

Market commentary provided by Craigs Investment Partners

S&P/NZX 50 INDEX

8849

S&P/NZX 10 INDEX

8523

$/kg

350 250 150 Aug 14

NZ venison 60kg stag

4.5

600

c/k kg (net)

3000

Coarse xbred wool indicator

5.5

CANTERBURY FEED PRICES

NZ$/t

US$/t

Last yr

Aug

Coarse xbred ind.

450

16328

Jun

(NZ$/kg)

3100

S&P/FW PRIMARY SECTOR EQUITY

Jun

NZ average (NZ$/t)

WMP FUTURES - VS FOUR WEEKS AGO

Sep

Apr

WOOL

* price as at close of business on Thursday

Aug

Apr

FERTILISER

Last price*

2800

Last year

8.20

Feed Wheat PKE

Mar 18 AgriHQ Spot Fonterra forecast

Last week Prior week

NI lamb (17kg)

Milling Wheat

7.5

5.5 Jan 18

Slaughter price (NZ$/kg)

c/kkg (net)

$/kgMS

Sheep

$/kg

44

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

Close

YTD High

YTD Low

Fisher & Paykel Healthcare Corporation Ltd

14.77

15.50

11.92

Auckland International Airport Limited

6.69

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)

3.09 10.44 3.75 12.33 6.86 3.33 5.70 3.27

3.22 14.62 3.90 12.50 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

Close

YTD High

YTD Low

The a2 Milk Company Limited

10.440

14.620

7.660

Comvita Limited

5.620

9.210

5.600

Delegat Group Limited

9.250

9.300

7.510

Foley Family Wines Limited

1.480

1.610

1.400

Fonterra Shareholders' Fund (NS)

5.090

6.660

5.000

Livestock Improvement Corporation Ltd (NS)

0.750

3.000

0.750

New Zealand King Salmon Investments Ltd

2.770

2.990

1.840

PGG Wrightson Limited

0.640

0.720

0.560

Sanford Limited (NS)

7.620

8.500

7.350

Scales Corporation Limited

4.560

5.000

4.350

Seeka Limited

6.500

7.010

5.800

Synlait Milk Limited (NS)

10.700

11.650

6.260 3.100

T&G Global Limited

3.200

3.300

Tegel Group Holdings Limited

1.130

1.240

0.810

S&P/NZX Primary Sector Equity

16328

17332

14417

S&P/NZX 50 Index

8849

9084

8059

S&P/NZX 10 Index

8523

8848

7640

NEW Zealand’s economy This Prior Last NZD vs is looking shakier than week week year a month or so ago but USD 0.6733 0.6785 0.7403 international events remain EUR 0.5812 0.5826 0.6254 the biggest currency 0.9151 0.9188 0.9334 influence, ANZ Bank senior AUD 0.5174 0.5177 0.5604 economist Phil Borkin said. GBP US-China trade tariff Correct as of 9am last Friday tensions escalated late in the week and this issue will continue to constrain the kiwi dollar’s ability to move higher.

Despite the domestic and international factors ANZ hasn’t changed its currency forecasts but there is always risk around forecasts and they will be revisited as required, Borkin said.

The US Fed was in line with market expectations, not raising its core interest rate but indicating it will do so in the future. Markets are expecting rises in September and likely also December.

A rate rise came from the Bank of England but sterling slipped overall afterwards because there is more concern in markets about Brexit than the level of interest rates, he said. The NZ$/£ cross rate was little changed.

Most interest during the week was the Bank of Japan tweaking though not yet tightening policy and that was enough to push global interest rates slightly higher.

Business sentiment is weak in NZ and margins have become squeezed over the last few months, Borkin said. Economic growth is looking tired and there is uncertainty over Government regulatory policy. ANZ still expects the dollar to end the year at US$0.67 and ease slightly through next year.

Alan Williams

Markets

CANTERBURY MILLING WHEAT

SI SLAUGHTER LAMB

NI SLAUGHTER BULL

($/T)

($/KG)

GOOD MIXED SEX LAMBS AT TEMUKA

($/KG)

($/HD)

8.00

5.35

Cattle & Deer BEEF Last week

Prior week

Last year

NI Steer (300kg)

5.55

5.55

5.60

NI Bull (300kg)

5.35

5.35

5.55

NI Cow (200kg)

4.45

4.45

4.50

SI Steer (300kg)

5.50

5.50

5.45

SI Bull (300kg)

5.30

5.30

5.15

SI Cow (200kg)

4.40

4.40

4.40

US imported 95CL bull

6.61

6.67

6.57

US domestic 90CL cow

7.12

7.01

6.88

Export markets (NZ$/kg)

North Island steer (300kg)

$/kg

6.0 5.5 5.0 4.5 4.0

South Island steer (300kg)

6.0

NZ venison 60kg stag

5.5

c/k kg (net)

$/kg

600

5.0

500

400 4.5 300

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)

11.00

11.00

9.10

NI Hind (50kg)

10.90

10.90

9.00

SI Stag (60kg)

11.35

11.30

9.10

SI Hind (50kg)

11.25

11.20

9.00

New Zealand venison (60kg Stag)

12

$/kg

11 10

NZ venison 60kg stag

c/k kg (net)

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

high lights

153

$570-$750

$3.02-$3.13

R1 Friesian bulls, 180230kg, at Rangiuru

R2 Traditional heifers, 355-450kg, at Stortford Lodge

Store cattle prices lift

A

NUMBER of store cattle sales this week reached a turning point in the market, as the winter limited buying power was replaced with spring anticipation.

Though there is still plenty of winter to go bigger yardings and better prices are already being seen, and to date prices look to be tracking at similar levels to this time last year.

NORTHLAND NORTHLAND The market turned a corner at WELLSFORD last Monday as new faces appeared in the rostrum and were keen to partake in a bit of bidding. The sale was small and all sections showed improvement, including two better lines of R3 steers which made $2.87-$2.89/kg.

A feature line of 12 run-with-bull Angus & Angus-Hereford heifers caught the eye of a few and eventually went under the hammer for $2.89/ kg. Dry heifers of same breeding and 354-452kg were off that pace at $2.61-$2.68/kg, though a line of five Hereford, 356kg, did manage $2.81/ kg.

Apart from a handful of bulls the only cattle of significance in the R1 pens were heifers. All lines sold over a tight range of $655-$715, with a line of four 270kg taking top honours on a per head basis, though lighter lines of Angus and Hereford-cross did sell up to $3.66-$3.68/kg.

Angus cows also featured and eight vetted-in-calf were chased, eventually selling for $1430, while dry cows, 436491kg, made $2.04-$2.09/kg.

A positive tone to the KAIKOHE sale last Wednesday was brought about from a lift in early spring demand as well as processors actively sourcing cattle from the yards, PGG Wrightson agent Vaughan Vujcich reported.

While prices have a long way to go the trend is upwards and even lesser quality lines were sale-able.

Simmental steers featured in the R2 pens and sold well at $2.83-$2.92/ kg. Lesser bred types made $2.70$2.75/kg. Heifers were the real movers though as an improvement in quality

EYES FRONT: A scene from the Rongotea sale yards in 2016.

and demand meant a lift of $10-15c/ kg to $2.80-$2.92/kg.

R1 steer numbers were limited though those offered did manage $3.20-$3.30/kg. Heavier beef bulls sold to $3.10-$3.20/kg, while Friesian, 170-190kg, fetched $3.60-$3.90/kg.

Beef and beef-cross heifers were also very positive, trading at $3.10-$3.20/ kg.

Another decent yarding of cows sold well and vetted-in-calf lines traded at $2.30-$2.40/kg, with Friesian earning $1200-$1300 and a line of Simmental, $1600. The empty cows were mainly Friesian and $2.20-$2.30/ kg was paid for the better types, with lighter lines making $2.00/kg.

COUNTIES COUNTIES With fewer than 350-head on offer, last Thursday’s store cattle sale at TUAKAU was over fairly quickly, Karl Chitham of Carrfields Livestock reported.

The market for good R2 steers and heifers was steady but lighter and younger cattle were harder to shift.

The steer section included 460kg Hereford-Friesian, which traded at $2.93/kg. Another Hereford-Friesian pen, 353kg, made $3.11/kg, with

Angus, 305kg, earning $2.86/kg. Bull numbers were light but a line of 320kg Friesian sold at $2.75/kg.

In the heifer section, 380kg Hereford-Friesian fetched $2.94/kg.

Another pen at 300kg made $725 and 244kg Hereford returned $680.

About 300 cattle were on offer at last Wednesday’s prime sale and the market was very firm. The best of the prime steers sold at $2.96- $3.03/kg, with medium types earning $2.91$2.95/kg, and lighter $2.86-$2.90/kg.

Heifer prices were also strong. The heavier lots made $2.88-$2.93/kg, medium $2.82-$2.87/kg and lighter beef heifers $2.78-$2.80/kg. A small offering of beef cows traded at $2.25$2.35/kg, and in-calf Friesian cows $2.12-$2.18/kg. Heavy-conditioned empty Friesian returned $1.92-$2.05/ kg, medium $1.80-$1.90/kg and lighter boners $1.68-$1.75/kg. Heavy bulls earned $2.94-$3.03/kg.

Prime lambs sold up to $194 at last Monday’s sheep sale. Lighter primes sold from $135, with store lamb prices ranging from $94 to $135. The best of the prime ewes made $162, with lighter types selling down to $65.

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

R

225 - 245KG

310KG

350 - 415KG

400 - 505KG

1-YEA R HEIFE BEEF/ DAIRY

1-YEA R STEER 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

16

6

Total 159

19

41

-

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

Jer

M

8

M

9

M

1400

540 475 - 506 401 - 445 366

M/G M

546 492 377

M

2 R

2-YEAR HEIFE Ang/Fr

Here/Jer Fr & Fr x

M/G

5

2

Jer x

Ang/Fr Here/Fr

M

3

2

M/G

8

M

2

M

2

L/M

3

M

2

M

530 370 467 315 451 320

4.0

$/kg

$/hd 1140

452

2

3

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

31

Beef/Dairy

LE

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

60

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

421

Slaughter price (NZ$/kg)

45

FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018

Markets

46 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018 anywhere from $1.62/kg up to $2.31/kg.

BAY OF PLENTY BAY OF PLENTY Volume at RANGIURU last Wednesday grew but was met by a larger gallery of buyers.

Store numbers were bumped up by two main vendors - one selling nearly 80 R1 Friesian bulls, and the other offering up run-withbull Angus cows. The latter had been with an Angus bull though were mostly lighter condition types. The top line at 633kg sold for $1490 and the second cut, 533kg, made $1140, with the balance making $830-$980.

Older store cattle numbers were limited but a big line of autumnborn Hereford-cross steers did feature, and made solid returns at $930, $2.91/kg.

Interest was high for the consignment of R1 Friesian bulls, and the top line at 226kg was Gisborne bound for $750. The balance weighed 176-200kg and sold for $570-$640.

A wide spread of weights was recorded in both the steer and heifer pens, which reflected the range penned. Hereford-Friesian and Simmental-cross steers, 260kg, came in at $820-$850, while the sisters to the Simmentalcross, 211kg, made $690. A line of 275kg Hereford heifers made good money at $810, and two smart lines of Hereford-Friesian, 265280kg, returned $780-$815. Most other beef-cross heifers traded at $495-$690.

A bigger offering of prime cattle was also penned and steers sold on a steady market as beefFriesian, 595-785kg, averaged $2.97/kg, with heifers also steady.

Dairy cow numbers lifted and good demand meant prices firmed, with 502-561kg making $2.09-$2.10/kg.

TARANAKI TARANAKI Though the sale was another small one at TARANAKI last Wednesday there was nothing small about the market, with the theme set at the fair continuing.

Prime steers sold at steady levels of $2.81-$2.95/kg for 555792kg, with the top line making the highest $/kg and therefore exceeding $2000.

The strength continued in the R2 steer pens where a line of 395kg Hereford-Friesian made $3.11/kg, and 485-490kg, $2.93$2.97/kg. Heifer numbers of this

age were very limited, though there was a bit more action in the R1 pens and a solid market meant most beef-cross and beef-Friesian made $600-$715, with a line of 136kg earning $4.56/kg. HerefordFriesian steers, 212kg, sold to $815 to top the steer section.

POVERTY BAY POVERTY BAY It was a relatively busy day at MATAWHERO as 1600 store lambs were put forward. As with other sales, the core of these were ewe lambs. Good ewe lambs were the main winners on the day, making $145.50-$148.50, with only two heavy pens doing better at $157$159.

CALL FREE 0800 837 276 www.steelthebest.co.nz The drop-off was sharp after this though, as medium ewe lambs usually made just $108$122. One heavy pen of male lambs were $162, with other good lines at $144-$150.

A small line of good Romney ewes, SIL 170%, sold at $186.

HAWKE’S BAY HAWKE’S BAY The attraction of good prices boosted store lamb numbers at STORTFORD LODGE last week, but the market didn’t falter as prices lifted. A big yarding of store cattle also featured as the first spring sale was held, and the market made a very good start.

Monday’s cattle sale was again small and featured a line of eleven Angus & Angus-Hereford cows, 616kg, which sold well at $2.46/kg.

Prime lamb throughput increased significantly with close to 1250 yarded. A greater proportion of heavy lambs were on offer and the $200 mark was surpassed by 41% of the yarding.

A single very heavy cryptorchid lamb took top honors at $226, while other very heavy male lifted to $200-$220.

Most other male lines made $184-$193.50, with mixed sex of similar weight steady at $177-$199. The balance of the mixed sex lines traded at $145.50-$166.

Ewe lamb returns were varied albeit still with strong results. Very heavy lines strengthened to $185.50$210.50 but heavy types softened to $170-$170.50, while very good ewes were steady at $150-$158.

The ewe market did not reach the highs of the previous week but results were still strong. The mixed age section was a game of two halves with very heavy types softening to $162.50$190, while the remainder managed steady returns with

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WAIKATO The mainly local buying bench were treated to a quality yarding at FRANKTON last Wednesday, including more finished types in the prime section. These were well met and returns were steady to lifting throughout most sections.

R2 beef-cross steers, 393-463kg, lifted to $2.82-$2.87/kg, while dairy-beef, 321-447kg, were steady at $2.75-$2.93/kg. Friesian heifers, 362-411kg, also lifted to $2.43$2.53/kg.

R1 beef-cross steers, 208-292kg, made solid returns at $720-$860, and Hereford-Friesian, 226-302kg, lifted to $825-$945, while a line of fifteen at 174kg earned $695, $3.99/kg.

R1 heifers were steady for the majority with Angus-Friesian, 192-248kg, returning $615-$640.

Hereford-Friesian, 231-307kg, earned $690-$872, 178-198kg $605-$620, and 162-176kg lifted to $600-$645. However Herefordcross, 154-247kg, softened to $505-$595.

R1 bulls were strong with Angus, 208-264kg, fetching $750-$955, and Friesian, 208-229kg, $595$670.

Autumn-born R1 results were solid for most and in particular heifers strengthened with Hereford based lines in good favour. Hereford-cross and Hereford-Friesian steers, 108110kg, were strong at $480-$510, and in the heifers pens Herefordcross, 94-118kg, lifted to $350$450, as did Hereford-Friesian of the same weight at $420-$540.

Hereford-cross bulls, 97129kg, fetched similar prices to their sisters, thus softening their returns at $395-$440. HerefordFriesian, 99-125kg, were solid at $530-$660, while buyers were working to per-head budgets on Friesian lines, 106kg and 127kg, which both made $530.

The prime market was strong with more heavy finished types on offer. Angus-cross and beef-cross steers, 497-625kg, were solid at $2.76-$2.93/kg, and beef-dairy, 502-720kg, lifted to $2.82-$2.99/ kg.

Angus heifers, 404-450kg, sold well at $2.83/kg, with the balance of heifers trading at $2.73-$2.81/ kg.

Eight Angus cows, 399-573kg, returned $2.26-$2.36/kg, and Friesian cows, 456-575kg, lifted to $1.90-$1.94/kg, while Friesian-cross, 432-593kg, ranged

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heavy ewes earning $141-$166.50, medium-good and good types $120-$137, and the lighter end $105-$115.

Two-tooth to four-tooth ewes traded at similar levels with very heavy types easing to $181. Heavy ewes were steady at $140-$147, as were medium good types at $125$131.50.

Store lamb numbers swelled to just over 8000 head which included two big consignments of over 1000 lambs apiece. Line sizes were much bigger in the earlier pens and the general quality across the yarding was good. A big bench of local and outside buyers gathered and the previous week’s records were broken. The majority of the lambs sold for $130-$175, with just a slight premium paid for male lamb over ewe lambs. A few lines of males did manage to surpass $180, while the bulk of the ewe lambs traded at $141-$164.

The strength of the lamb market was reflected in the ewes with lamb-at-foot pens as one bigger line made $111.50 all counted and another of seven ewes and 12 lambs, $113.50. In-lamb ewes are still trickling in, though quality was mixed. Most sold for $172$190.

A good crowd was back in the rostrum as the selling centre got into the spring cattle fair season.

The yarding of just over 900 head drew in plenty of outside interest who tended to be more active than the local buyers.

A consignment of in-calf Red Devon-Stabilizer & Angus-cross cows and heifers were offered due to a farm sale. They were drafted into their colours and were vetted-in-calf to a Stabilizer and Red Devon bull from 20th December. The main line of cows made $1405, while R3 heifers traded at $1205-$1550 and R2, $1060-$1305, with the black lines attracting a premium. Also offered in this section was capital stock Hereford-Simmental cows, in-calf to a Simmental bull 1st November, which sold for $1465-$1600 to local buyers. A line of R3 Hereford heifers also featured and sold well at $1620.

The store section was equally as positive and traditional R2 heifers were a highlight. There was no obvious premium for straight black lines as Angus and Angus & Angus-Hereford, 329-404kg, sold for $3.02-$3.13/kg. HerefordFriesian, 449kg, also cracked $3.00/kg.

Older steer numbers were limited but those that were offered mainly sold to Manawatu. R3 Angus, 481-598kg, fetched $3.14$3.25/kg, with similar values paid for R2. A special entry of Friesian bulls sold three different ways though prices were within close proximity on a $/kg basis with 381-464kg all selling for $3.00$3.09/kg.

Entries were high in the R1 pens also and included October-born Charolais-cross from Tangoio.

The steers, 235kg, made $990, and heifers, 223-249kg, $890-$1020.

Other lines of steers surpassed $1000 with this market also showing similarities to last year.

Hereford-Friesian heifers, 173252kg, sold for $635-$890.

MANAWATU MANAWATU As expected it was a quiet start to August at RONGOTEA last

Wednesday, though areas of the sale are showing a lift in interest as spring approaches.

Demand was solid for boner cows and Friesian, 445-665kg, earned $1.71-$1.92/kg, with Shorthorn, 505kg, coming in at $1.90/kg. Highland, 685kg, made $1.24/kg. An entry of crossbred cows with beef calves-at-foot sold for $985-$1030 per unit.

Crossbred lines were common through all store sections as vendors offload bits and pieces.

R2 beef and beef-Friesian steers, 355-480kg, traded at $2.55-$2.65/ kg, beaten by better quality Hereford-Friesian heifers, 452kg, $2.87/kg. Lesser sorts traded at $1.90-$2.40/kg.

There was some hesitation on lesser quality R1 cattle, and crossbred steers, 160-210kg, traded at $410-$505. The best of the Friesian bulls sold to $710, while beef-cross and crossbred, 177-195kg, realised $500-$510.

Hereford-Friesian heifers, 160210kg, sold for $500-$660, and crossbred, 179-235kg, $390-$410.

Calf prices were similar to the previous week as Friesian bulls sold to $140-$200, with second cuts making $80-$130. HerefordFriesian fetched $180-$265 for good lines and $100-$170 for smaller calves. Angus-cross made $185-$195 and White Galloway, $145. Hereford-Friesian heifers returned $100-$220.

Ewes with lambs-at-foot made an impressive $135 all counted, while good demand for store lambs meant these reached $80$131.

The Thursday calf sale did not have the number or demand of Monday’s, with prices slightly easier.

Of note though was red Hereford-Friesian bulls which sold well, making $200-$230. Other medium types returned $140$185. Good Friesian bulls sold for $190-$215, medium $130-$180, and small $80-$120. Charolaiscross bulls made $200-$235 and Angus-cross, $125-$170.

In the heifer pens good Hereford-Friesian sold for $165$215, and medium $120-$145, while all Angus-cross traded at $100-$155.

Lambs are very much in the spotlight for all the right reasons at present. Following on from Friday’s record-breaking store sale the prime lamb market at FEILDING last Monday lifted by a similar degree, and around 800 males and mixed sex traded at $203-$223, with a further 750 of all sexes selling for $190-$198, which made up around 35% of the section. The cheapest lambs could be picked up for $136-$159, though these numbers were very limited.

Ewe numbers were similar to the previous week and the yarding was dominated by mediumgood types. Good ewes sold for $149-$157, while medium-good returned $130-$145. A big yarding of 2-tooths sold to solid demand with the majority earning $130$147.

The Monday cattle sale ticked off another week on a quiet note.

A few more dairy cows trickled in and prices were steady to slightly softer as Friesian, 460-560kg, averaged $1.99/kg. Friesian and Jersey lines, 384-450kg, were solid at $1.86-$1.90/kg. Angus lacked

Markets

weight at 386-445kg though they did sell up to $2.10-$2.13/kg, and two heavy Hereford, 640kg, reached $2.37/kg.

Feeder calf numbers grew to 305 head but were matched with a good bench of buyers.

The top Friesian and HerefordFriesian bulls made $220-$295, and Charolais-cross sold to $400.

Other Friesian bulls traded at $120-$195, and Hereford-Friesian, $180-$220. Charolais-cross heifers made $220-$265, and good beefFriesian, $170-$225, with medium types earning $100-$155.

Traditional cattle were put to the side at Friday’s store cattle sale, where instead Friesian bulls dominated numbers, with off-type dairy-cross cattle taking up a larger portion of the auctioneers’ time too.

Only two lines of older steers deserve a mention; some 665kg R3 Angus and Angus-Herefords at $3.06/kg and a pen of 545kg R2’s of the same breeding at $3.26/kg. R2 heifers had reasonable depth, and of these 310-460kg traditionals mainly made $2.95-$3.02/kg while other 355-460kg beef-cross pens were lower at $2.79-$2.93/kg.

R2 bulls were the main feature.

Plenty of buying power was present on these, thrusting the market to a new level. Whether they were autumn-born or not mattered little to per kilo pricing as 425-520kg Friesians were $3.00-$3.10/kg, while 470-480kg traditional bulls were similar at $3.01-$3.07/kg.

R1 steers peaked at $3.88-$3.99/ kg for some 250-265kg traditionals and Hereford-Friesians. A reasonable showing of traditional R1 heifers, 190-235kg, were just below the steers at $3.71-$3.76/ kg. Mixed quality was reflected in bidding on R1 bulls, though 225-275kg Friesians were at $3.33$3.43/kg and 190kg Angus’s made $700, $3.68/kg.

Autumn-born weaner Angus heifers, 160kg, were $630, $3.91/ kg, with some 145kg HerefordFriesians lower at $510, $3.52/kg.

The scorching heat from the previous store lamb sale wasn’t quite repeated, though few would argue they were cheap. Male-type lambs are becoming a rarity. Of these the very heavy lines were selling at $171-$176, though two pens managed to hit $186-$187.

Other medium-to-good lines were at $155-$166.50.

It was all down for ewe lambs – the better types back around $5/hd while mediums fell $10+.

Heavy pens were still very good selling at $155-$178, though one pen was likely bought for breeding at $192. The good and mediumgood lines sold at $141-$165, while the better of the light pens ranged across $128-$145.50.

In-lamb ewes were short on numbers, but definitely had the quality to command the prices they received. Two good mixed age lines, SIL triplets, went for a very impressive $210-$214, while other decent mixed age ewes were at $180-$198. The better of the few two-tooth’s were $186. No ewes with lambs-at-foot of note were sold.

CANTERBURY CANTERBURY Reality hit home in the store lamb pens at CANTERBURY PARK last week, and prices came back.

Prime lambs however lifted, and

FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018 the cattle market also had a firm tone.

A smaller yarding of store lambs consisted of mainly mixed sex, and while the better end held value, as the weight dropped the prices fell by a larger margin.

Good lambs eased to $140-$147, while medium-good types were more variable, trading from $80 up to $141 as buyers were very selective. Light lines sold for $90$115. A lone line of ewe lambs were heavy types which topped the section at $156.

While the longer term lambs were subjected to some resistance there was no holding back on short term types, and the prime section lifted on average $8 per head. Easily the biggest portion sold for $170-$199, though nearly 190 head reached $201-$217, with the third cuts earning $150-$169.

The ewe market finished off yet another consistent month as demand keeps ticking over and good supplies are there to meet that demand. The mainly medium to medium good yarding of mixed age ewes traded at $139-$177, with a small top end making $180-$195.

Light and light-medium ewes fetched $80-$135, while 2-tooths earned $120-$189.

The cattle section took up little of anyone’s time, with just 65 head in.

Very heavy beef-cross steers, 733-830kg, sold for $2.87-$2.94/ kg, $2124-$2411. Better yielding lines at lighter weights of 472540kg were the star performers, selling on a firm market at $2.95$3.09/kg.

Heifers sold with a firm tone as well and Hereford-cross made a premium over the Angus-cross lines, but it was two Charolais, 485kg, which bettered the rest at $3.01/kg. Most other heifers sold for $2.81-$2.92/kg.

All the Hereford-cross cows were part of a consignment from Canterbury’s largest high country station and these sold with varying results. A young cow at 670kg made $2.71/kg, while lighter types, 410-420kg, dropped to $1.81-$1.90/kg.

The balance of that consignment were the only store cattle on offer and were all wellbred Hereford. R2 steers, 322402kg, sold exceptionally well as they made $1140-$1300, but more importantly $3.23/kg and $3.54/kg respectively. The three lines of R1 cattle all stayed together, with the steers making $760-$810, and the one line of three heifers, $805.

Apart from a respectable number of lambs it was a quiet day at COALGATE last Thursday.

Prime lambs outnumbered stores yet again with forward stores right through to a good number of finished lambs being sent in. Regular buyers firmed the market $2-$4 per head and around 85% of the offering traded at $160$199, with the top lambs coming in at $200-$219.

In contrast the store lambs was much smaller and of mixed quality. Interest was as it has been on the better quality lambs and a good portion sold for $130-$158.

Lesser quality lines did meet some resistance and a larger number traded at $85-$112.

Ewe volume continued to track at very low levels and stiff competition meant buyers were hard pressed to find anything

under $134, with most selling from there up to $177, and the tops making $180-$232.

Store cattle were noted for their absence with just five R1 penned.

These were two Shorthorn-cross steers, 256kg, which made $620, and three Friesian-cross bulls, 308kg, $610.

Luckily for sale attendees there were a few more prime cattle to get stuck into, mainly consisting of prime heifers and a mix of beef and dairy cows.

A small steer offering had two lighter beef steers, 440kg, reaching $3.06/kg, while 485-490kg returned $2.88-$2.96/kg. Beef heifers were consistent and sold

FREE on site consultation FREE installation FREE $2000 That’s 2000 reasons to upgrade to TE PARI galvanised steel yards Go to steelthebest.co.nz or give us a call on 0800 837 276 on a steady market with most in a 498-690kg range making $2.88$2.92/kg, with local trade types, 405-467kg, lifting to $2.74-2.86/kg.

Cows tidied up a quiet day and prices were mainly steady. Beef cows, 580-653kg, sold for $2.22$2.38/kg, while most dairy were 420-628kg and returned $1.90$1.99/kg. One heavy dairy line at 700kg did manage $2.06/kg.

SOUTH CANTERBURY SOUTH CANTERBURY The dairy cows were back in the rostrum at TEMUKA for the last sale of July, and the sheep section ticked off a very successful month in the pens.

Chatham’s lambs again bumped up store numbers, alongside forward stores that would usually be finished but strong auction prices are drawing them out early.

Nearly 3400 were offered and most sold on an improved market.

A very heavy line of mixed sex reached $186, while lifts in prices for heavy types meant $155-$178 price tags. Medium to good made $140-$164 to sell on a steady market. Male quality was mixed and prices ranged from $124 up to $157, but ewe lambs made similar value which put them slightly up on last week.

Despite a bit of a lift in prime lamb numbers this market will start to wind down, and buyers snatched up what they could. Just over 150 head made $200-$210, while most of the trading happened in a $170-$199 range, with third cuts earning $150-$169.

The ewe market finished July as it started with the consistent run continuing. A good portion of the yarding were very heavy types which sold for $200-$250, with most other lines earning $140$178.

Dairy cows made up 90%

of the cow section. While space is relatively tight the holding schedules kept the heat in the market and prices were steady to firm. There was a notable premium paid for better yielding lines as heavy types, 593-602kg, made the same value as beef lines at $2.21-$2.27/kg, while second cuts more commonly made $1.92-$2.07/kg. Very light lines of Friesian and Jersey, 420-466kg, sold for $1.70-$1.80/kg.

Prime prices were solid as steers made steady to firm returns and heifers showed improvement.

Angus steers, 505-555kg, made a premium at $3.04-$3.10/kg, though Hereford, 530-590kg, were not far behind at $2.99-$3.05/kg.

Traditional heifers gave them a run for their money though and in many cases they matched the steers.

Better lines of Angus in a 517580kg range made $3.00-$3.02/kg, though $2.65-$2.76/kg was more common. Local trade Angus, 433444kg, fetched $2.77-$2.88/kg, while Hereford, 410-498kg, made $2.71-$2.80/kg.

Hereford bulls also featured, albeit in small numbers, and those 468-525kg fetched $2.57-$2.65/kg.

Another quiet week of store cattle is par for the course under the M.Bovis cloud. The Chatham Islands were well represented again and they have a few more followers than they typically would, given their isolation from the disease.

Most R2 steers were Hereford or Devon-cross or a mixture of both, and this section was one of the highlights. A line of four Hereford steers, 417kg, sold for $3.11/kg, while their younger brothers could be found in the R1 pens where they made top dollar at $1105$1190 for 282-311kg.

The heavier end of the Hereford-Devon and Devon-cross steers, 378-443kg, made $1250$1290. The only feature in the R2 heifer pens was a light pen of Hereford, 261kg, which returned $3.12/kg.

There was no clear pattern to R1 prices with buyers very selective.

A reasonable entry of HerefordFriesian steers sold at varying levels, but in general 170-200kg made $600-$655, and 205-270kg, $770-$815. Heifers of same breeding and weight to the lighter end also made $610-$660.

A big bull section was quite mixed and there was a clear

preference for good beef and beef-cross lines over dairy-cross.

Nothing hit the $1000 mark but Angus, 227kg, came close at $960, $4.23/kg. Same weighted Hereford-Devon sold for $800, though Hereford-Shorthorn dropped further to $650. Friesian, 145-152kg, made just $450-$485.

SOUTHLAND SOUTHLAND Prime ewes and lambs were the star attraction at LORNEVILLE last Tuesday, though all other classes of stock sold to high demand.

Store cattle prices lifted and the yarding could have easily sold twice over.

Store lamb prices were consistent with the previous week as the top lines sold for $140$150, medium $120-$135 and light $100-$115. A line of Romney ewe hoggets earned $163, and Romney-cross 4-5 shear ewes, scanned-in-lamb 199%, fetched $198.

The battle was on in the prime pens with both lambs and ewes lifting. Heavy and medium types lifted $5-$20 to $180-$204 and $162-$174 respectively, while third cuts came up $3-$10 to finish at $140-$157.

Two-tooth’s made steady returns at $102-$144, as did medium ewes at $132-$152.

However buyers found $15-$20 more for heavy ewes which pushed them to $160-$188, with a similar movement for lighter ewes meaning $112-$122 price tags.

Lower condition types made $80, and rams, $48-$93.

While the prime cattle section was still small there were more cattle for buyers to get their teeth into than the previous week.

Medium steers, 540kg, made $2.50/kg, and 425-500kg heifers, $2.55-$2.60/kg. Bulls, 570kg, earned $2.80/kg, while medium cows, 450-480kg, traded at $1.50$1.80/kg.

The store cattle market had some heat in it as some buyers start to source cattle pre-spring.

R2 Angus-cross steers, 410kg, made $3.02/kg, and Herefordcross, 351kg, $3.14/kg. Heifer prices were well up on the previous week as Hereford-cross, 371kg, sold to $3.01/kg. One line of R1 steers of same breeding and 206kg returned $660.

Calves are trickling in and those offered were two-three weeks old.

Good Friesian bulls made $105, and heifers, $60.

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weekly food & agri podcast published by our research analysts

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Markets

48 FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018 NI SLAUGHTER STEER

NI SLAUGHER LAMB

SI SLAUGHTER STAG

($/KG)

($/KG)

MEDIUM-GOOD EWE LAMBS AT STORTFORD LODGE

($/KG)

($/HD)

5.55

8.20

11.35

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high $3.00-$3.10/kg lights R2 Friesian bulls, 425520kg, at Feilding

Farmers respond to deals Annette Scott annettescott@globalhq.co.nz

D

EER farmers are locking in venison returns as at least one major processor signals a correction looming on the peak pricing.

Venison marketers have reported good uptake from farmers for the supply contracts on offer to midNovember in the North Island and to February in the South Island.

While prices and conditions vary between companies and islands it’s normal they generally peak in October before easing off as autumn approaches.

The contracts are designed to encourage farmers to supply deer in the preferred weight ranges at times markets want them.

At a recent meeting of the industry’s market working group, Deer Industry New Zealand chief executive Dan Coup said marketers stressed the continued importance of the traditional chilled season, from August to November, when European demand peaks.

He’s encouraged by reports farmers are responding well to the contracts on offer.

“It makes sense for them to lock-in what are very good prices.

“It’s also good for our marketers, who can match supply with customer demand,” Coup said.

Alliance livestock and

TACTICS: Venison contracts are structured to provide supply at the time Alliance wants it and at the right weights, its livestock and shareholder services general manager Heather Stacy says.

It makes sense for them to lock-in what are very good prices.

Dan Coup DINZ shareholder services general manager Heather Stacy said farmers welcome contracts because it guarantees them a minimum price and processing space.

“They’re a one-way bet for them really.

Sitting

“The downside risk to pricing is mitigated and they have the option to take the schedule on the day if it is higher.”

The Alliance schedule is at $11.30/kg with a minimum price contract at $11.75/kg for chilled venison for the October period.

But the prices are expected to soften from late November to February.

That is a consequence of the change in mix to a higher percentage of frozen product and some buyer resistance creeping in at the high levels, Stacy said.

The company’s contract

FENCE? ON THE

for supply goes to the end of February and the upper weight range goes to 100kg.

“Contracts are structured so that we get the supply of deer we want, in the weight ranges we want, at the time we want so we can meet the expectations of our customers.”

The rapid rise in venison prices in the past two seasons has clouded the market fundamentals.

Prices have been progressively pushing higher and key markets are starting to feel some price resistance on the higher-value cuts.

Negotiations for the major game season period have been more protracted than normal.

Those prices might have peaked and some correction is likely over the coming months, Alliance said.

Silver Fern Farms deer procurement manager Malcolm Gourlie said the European game season has always been important to the deer industry and it always will be.

“It is important that we look after it,” he said.

When SFF released its first Global Retail Contract to February it was to give deer farmers confidence to grow their deer out.

“In the past, processors used to be supplied with a lot of young hinds and poorlygrown stags in spring for slaughter at around 40-45kg carcase to capture the chilled schedule.

“These were well below the weights preferred by the market,” Gourlie said.

$420-$540 Autumn-born weaner Hereford-Friesian heifers, 100-120kg, at Frankton

Record prices for store lambs HANDS-DOWN, the number one topic of conversation at the sale yards is the record-breaking store lamb market. After a bit of a lull towards the end of May when lambs came down to what is now a Suz Bremner cheap $3.80-$3.90/kg live weight, AgriHQ Analyst buyers have since picked up their game around the country to the point where we have reached record prices for store lambs. The two biggest selling centres for sheep are Feilding and Stortford Lodge and the last few weeks have seen prices hit unchartered territory.

Male lambs have mostly traded at $140-$180 with $4.30-$4.70/kg common. And as the male lambs start to run out more buyer attention is turned on the ewe lambs and overall prices are tracking on average only $5 a head behind the males. And the smaller the lambs the more expensive they are with $5/kg now common for most 28kg and lighter as buyers work to per-head budgets.

The climb can be attributed to a number of factors, all working to make it a very good year for lambs. Overseas demand has pushed schedule prices to record levels and, for now at least, they keep going up as numbers to the processors reduce. A mild winter has meant feed levels have been better than usual, which has had a two-fold effect of bringing new buyers to the market while lambs are finishing earlier and so those buyers are re-entering the market sooner.

Mycoplasma bovis is also having a positive effect on the lamb market as those who can’t buy in cattle turn their attention to lambs and others, who don’t want to take the risk of buying cattle or are not taking on grazers, do the same thing.

But are we riding for a fall? The optimist in me would like to think not – that our product is finally getting the recognition it deserves but the pessimist tends to speak louder and is saying there have to be repercussions somewhere. suz.bremner@nzx.com

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