Farmers Weekly NZ February 6 2017 by AgriHQ

19 Winter milk: Is it worth it? Vol 16 No 5, February 6, 2017

farmersweekly.co.nz

Food is too cheap Annette Scott annette.scott@nzx.com

HEEP farmers are struggling in the climate of cheap food versus sustainable production, industry leader Mark Adams says. Supermarkets were fighting for market share in a very competitive environment and that was driving the price they paid the producer. “And we have arrived at a situation where the cost of production is no longer sustainable around the price of the food we are producing,” the Fairlie farmer and South Canterbury Federated Farmers provincial president said. And there were ramifications around that now as farmers engaged with environmental issues and sustainable food production. “It’s a case of we are running down our natural capital that is really stressed and bursting at the seams. “The temptation is to cut corners but that is not socially acceptable,” Adams said. “But the reality is we can’t achieve all we want to achieve on the prices we are getting in this climate of cheap food. “Farmers are engaged in the environmental space and trying to fund it with the current prices – it’s extremely difficult and we run the risk of being both socially and environmentally not sustainable.” Adams said the core of the matter was the complexity in pricing in a depressed global meat market. “The meat companies are desperate to get prices up and money back to their farmers but huge global uncertainty of which we have no control is underpinning confidence. “We have a legacy of the way we do business. We are transitioning but we have

yet to bear fruit,” Adams said. Wool was the biggest disappointment, he said. “The $3.40 a kilogram for hogget wool is shameful. “Whether it’s the Chinese New Year or the European ski holidays, the market has gone horribly flat or wool is very sick but somewhere those buyers have invested a lot of money in machinery so that gives some hope they might be coming back into the market sometime soon. “But the clock is still ticking and still we wait for a turn in the tide.”

The reality is we can’t achieve all we want to achieve on the prices we are getting in this climate of cheap food. Mark Adams Farmer Adams said the annual round of ewe fairs and onfarm store lamb sales, while giving a keen sense of where the market was at, had depicted a false sense of optimism. “The Temuka two-tooth and ewe lamb fair in particular was disappointing in that it started with a hiss and a roar and wound down to a whimper. “Either the market couldn’t cope with the number of stock on offer or people had not done their homework.” While there was a degree of re-stocking, it was not driven by optimism. “It’s more the fact sheep farming is what we do and we have to keep being good at what we do even if we are not being rewarded,” Adams said.

IN THE DARK: Sheep farmers don’t know what they will be earning next week, Cave farmer Chris Hampton says.

Uncertainty a challenge THE biggest challenge for sheep farmers was the uncertainty, Cave sheep farmer Chris Hampton said. “If you are a dairy farmer you know in advance what you will get and can set a budget to that. “For us sheep farmers we don’t know what we will get next week. The only certainty is the future can only improve.” Hampton sells Suffolk, South Suffolk and Charollais stud rams

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and in a leap of faith this season put 150 rams on the market. “There was indication given the feed situation and the falling margin in beef that sheep could be a reasonable option this year and we have sold 120 of those rams already, up on the average 100 of recent years.” There were signs of confidence, he said, with his third annual ram sale realising an average price of $100 a head better than last year with increased

demand also bringing in 15 new buyers. He was hopeful of some improvement in sheep. “If the meat companies don’t get enough lambs to fill their markets the buyers will go somewhere else so really it’s at tipping point for the companies to get the marketing sorted. “I am hoping that time has come, if not this season then next.”

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NEWS

OPINION

Soil Moisture Anomaly (mm) at 9am February 3, 2017

22 Alternative View Alan Emerson wants to give the power back to dairy processors.

4 Easter lamb in short supply

Editorial ��20 Cartoon ��20 Letters ��20-21 Pulpit ��19 Alternative View ��22 From the Ridge ��23 Meaty Matters ��23

Meat processors are likely to have a shortfall in chilled lamb shipped to Europe and the United Kingdom to meet valuable Easter trade contracts.

WORLD

8 Produce less milk to make

win-win

The recent dairy price downturn clearly illustrates the behaviour of commodity cycles and the powerful influence New Zealand dairy farmers have on milk powder prices, in particular, ASB senior rural economist Nathan Penny says.

10 Anxious wait for exports

to US

Exporters are watching anxiously to see if President Donald Trump will adopt a proposal for a 20% tax on all imports into the United States.

60 Wetter than

normal (mm)

-10

-20

-30

24 Trade deal with EU to be

-50

Drier than normal (mm)

Both sides would win if a free-trade agreement between New Zealand and the European Union went ahead, the Primary Industries Ministry says.

REGULARS Real Estate �� 25-40 Employment �� 41-42 Classifieds �� 42 Livestock �� 43

MARKETS

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

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Drought hits early in HB �� 3 Easter lamb in short supply �� 4 Dairy slowdown brings warnings �� 5 Shearing champs going live �� 7 Produce less milk to make more �� 8 Anxious wait for exports to US ��10 Fonterra winter milk premiums up ��12 Spaans’ health cuts his workload ��15 Freeloaders worry Feds ��16

NEWSMAKER

48 Buying pattern changes

18 Trust boss wants wider

Feed abundance and a shortage of stock continue to keep South Island store lamb and ewe fair markets strong. While there were still some very keen sheep people out there, farmers were now buying in a different way, South Canterbury livestock broker Peter Walsh said.

audience

Highlighting the many success stories in sustainable farming is one of the goals of new New Zealand Farm Environment Trust general manager James Ryan.

Market Snapshot �� 44

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

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Drought hits early in Hawke’s Bay Alan Williams alan.williams@nzx.com HAWKE’S Bay is used to farming in drought but the extremely dry October to December period has made this summer the toughest in decades. Droughts typically kicked in after summer green crops had become well established, long-time Waipukurau farmer David Petersen said. But this season, many of those crops did not strike because of the dry and very windy early summer or became very stunted if they did. “This is the longest sustained early dry period in my 60 years here.” With many of the bull beef herd gone for processing, the farm would normally be looking about now to restock with another 400 to 500 head of younger animals but it was too dry. “You need them to be putting on 1kg a day for 352 days a year but they’d just be on straw and going backwards.” Another long-time farmer, Larry White said his Ashley Clinton farm has had “an end of February look’’ about it since mid January. “We’ve browned off very quickly and I’d say we’re about six weeks early from what we would expect in a good drought. “The water levels in the creeks and rivers are lowest levels I’ve seen them at this time of year.” The Whites grow wheat, barley, oil seed rape and peas. The yields for all them are much lower than usual. “We’ll be a couple of tonnes a hectare down from where we hoped they would be. Everything looked well through the spring but then we had that dry December and they just didn’t finish off.” His son Willie runs the family

dairy farm nearby and has had the herd on once-a-day milking since January 17. In a normal year, the cows were milked twice-a-day till about the end of May. Willie White estimated the animals were getting less than half the target grass intake because of the deteriorating pasture. He had hoped to put the herd onto the turnip feed sometime round February 10 to 15 but had to do that just before New Year. Silage and palm kernel would be fed out much earlier than usual.

This is the longest sustained early dry period in my 60 years here. David Petersen Farmer With the once-a-day milking, production was holding up and the cows were still putting on weight, a positive for them in the months leading up to winter and calving. The farm typically milked about 850 cows but the numbers were down to about 750 this summer. A bonus was that farm stock water supply was holding up well. The White properties were west of State Highway 50, usually a highrainfall zone for the province, Larry White said. Not far away from him, Smedley Rd sheep farmer Vince Galbraith said when he was growing up, people used to say, “buy west of Highway 50 for the rain”. “But not now. It’s not safe country any more.” At 500 metres above sea level, he looked over the plains to

Norsewood and north to Hastings “and the only green I see is the odd winter crop”. Galbraith had already sent 3000 lambs away for processing. That was usual timing but all the weights were down, probably about 2kg lighter than usual. His ewes were “not bad at all” if a shade lighter than normal. “They can eat dry tucker and are okay as long as they’ve got good water and shade.” The family home was fed by three 5000 gallon tanks fed by rainwater that had to be managed very carefully in the dry conditions. Galbraith, 70, believed the weather went in long-term cycles. As a youngster he remembers the area being bone-dry from October to March and lambs being off the farm from the end of October. That then changed to a wetter summer pattern but over the last five or six years there had been a gradual changing back to what it used to be like. At Waipukurau, Petersen said the region would farm its way through the drought. “We always do”. But the key was when the rain fell. He recalled years of tropical cyclones coming through in autumn, usually about March, bringing three to five days of crucial rain. December also used to be a good rain month because of the humidity-driven thunderstorms. But both those patterns had changed and largely disappeared. The main rain was in July-August when it was not anywhere near as effective. Petersen and Larry White both hoped the severity of this drought and its impact on the Tukituki River levels would convince people of the merits of the Ruataniwha irrigation scheme.

DRY AS: This shot looking south from Napier shows little green in the Hawke’s Bay landscape.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Northland officially in drought Hugh Stringleman hugh.stringleman@nzx.com

CARRY ON: Silver Fern Farms won’t be shutting its second chain at Takapau in response to the drought, chief executive Dean Hamilton says.

Easter lamb in short supply Alan Williams alan.williams@nzx.com MEAT processors are likely to have a shortfall in chilled lamb shipped to Europe and the United Kingdom to meet valuable Easter trade contracts. It wouldn’t be a big shortfall but meant processors would have to meet the extra freight costs if they made up the volumes by air freight, Silver Fern Farms chief executive Dean Hamilton said. Product had to be loaded on boats by the end of this week for Easter shipping and two short working weeks because of public

farming areas in the south of the South Island because of too much rain slowing grass growth. Southland was very wet but once there was sunshine lambs would quickly get going, he said. With high lambing percentages as well, the South Island season would be a longer one this year. There had been talk that Silver Fern was planning to stand down the second chain at Takapau because of the Hawke’s Bay drought impact but Hamilton said that was not the case. The plant’s third chain would be put off in mid-February, as it was most years.

holidays added to the pressure. Schedule prices had picked up as processors worked to get the throughput numbers, Hamilton said. There had been a big focus on the drought problems for farmers in Hawke’s Bay and lamb processing had continued at lighter weights than usual. A lot of lambs were also being sold as stores as pasture and water supply dried up because they could not be fattened to a finishing weight. Contributing largely to the Easter supply struggle was the slower season in the big sheep

Takapau plant’s water reservoirs were lower than usual but operations weren’t affected. “It’s a tough year for farmers and a lot of lambs are being sold as stores, some to other farms in Hawke’s Bay, some to more western areas of the North Island and some are coming to the South Island.” There would be an impact on the kill later in the season but the detail wouldn’t be known till then. Silver Fern had plants nationwide and expected to process its share of the lambs moved out of Hawke’s Bay.

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PRIMARY Industries Minister Nathan Guy has declared Northland to be in a mediumscale adverse event because of drought, providing some help for farmers. He travelled to the Bay of Islands award-winning dairy farm of Roger and Jane Hutchings, Okaihau, to make the Ministry for Primary Industries announcement on Friday. The declaration had been satisfyingly prompt, following a request by 20plus representatives of local organisations after their meeting under the Rural Support Trust (RST) umbrella last Wednesday. “The RST wanted funding so it could get on with the job of supporting farmers,” Northland Federated Farmers president John Blackwell said. “There was a feeling that in past droughts they had got started too late.” This was going to be the fifth drought in eight years and farmers could learn from RST consultation and case studies. For instance, an agreed future date for selling a group or class of livestock could reduce the day-to-day worries of drought feeding and the loss of condition, Blackwell said. The federation’s feed line (0800 327 646) had begun operating and Northland could take some heart in the widespread availability of grazing and fodder in most of the country that was not drought-affected.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Dairy slowdown brings warnings Neal Wallace neal.wallace@nzx.com FARMERS could benefit from dairy processors competing for a slice of what was expected to be an almost static pool of milk with predictions the rate of growth in milk supply could halve in coming years. Higher environmental thresholds set by regional councils were expected to reduce to a trickle the conversion of land to dairy with farmers expected to be offered inducements and contracts from processors looking to secure or grow their milk supply. Waikato University economics professor Frank Scrimgeour said given the smaller milk pool, the dairy industry needed to be careful not to replicate the excess capacity issues facing the red meat sector. Some planned projects might need a rethink. “The key is that people invest in added-value and do something different rather than adding capacity that does the same things.” ANZ Bank rural economist Con Williams believed future milk supply growth could halve to between 2% and 3% a year, depending on weather and milk price, primarily driven by greater farm efficiency and innovation rather than adding more cows. Milk growth has averaged 5.5% to 6% in recent years. Williams said land conversion to dairying could continue in some areas such as the East Coast of the North Island and, depending on Environment Southland’s final regulations, possibly Southland but the rate of conversion would be much slower. “It certainly won’t be at the pace of the last 10-15 years but there will be some in some regions,” he said. Equally, there could be some retraction in regions where farmers struggled to meet new environmental standards. Open Country Dairy chairman

Richie McCaw

EVOLVE: Willy Leferink says innovation would also pick up some of the fall-off in production.

There is going to be a higher requirement on farmers to satisfy regional councils or regulatory bodies that they are complying. Doug Leeder Local Government NZ Laurie Margrain said logically the growth of milk supply would slow as less land was converted though securing supply was not an issue for his company. He was uncertain if it would lead to competition between processors but those investing in

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new processing capacity might want to look carefully at what they were building and the products they were producing. As regional councils ramped up environmental protection thresholds the level of disclosure required on stocking rates and fertiliser application had increased. Local Government NZ’s regional sector head and Bay of Plenty Regional Council chairman Doug Leeder warned it would only increase. “What is going to happen is there is going to be a higher requirement on farmers to satisfy regional councils or regulatory bodies that they are complying,” he said. Owners of intensively farmed properties would require greater accountability for their inputs

than less intensive operators and the Overseer monitoring system would remain the leading tool in determining the environmental impact of farm management. Leeder said unlike Europe where monitoring of farms was inputbased, most NZ councils were adopting output based models. They required information about when and how much nutrient was applied, stocking rates and bought-in feed which was then crunched by Overseer to assess if it complied with discharge rules. Leeder said the next focus for councils after nutrient leaching and runoff would be reducing E. coli levels or what Leeder called “bugs in water”. Tough environmental standards had been imposed to protect the Rotorua lakes, which effectively

required farmers to get consent or a licence to farm. Mid Canterbury dairy farmer Willy Leferink said dairying was still one of the most profitable land uses and he believed land would continue to be converted to milking platforms though at a much slower rate than previously. “Will dairy continue to happen? Yes. Will it happen under these new conditions? Yes, although it has temporarily been placed on hold as people find their feet again.” Leferink said innovation would also pick up some of the fall-off in production. “Farmers are quicker than regulations.”

Next week: A farmer’s perspective.

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Farm with greater certainty

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Buyers not driven by confidence Farmers are backing off from sheep because of uncertainty about the sector’s future and their buying is not being driven by confidence. Some are changing the way they use sheep in their farming operations and for many they are now a smaller part of the mix rather than the mainstay. Farmers Weekly spoke to some of the people at the Temuka ewe fair last week. RETIRED farmer Jack Evans, who farmed for 65 years, was pen-side to see that last of the family’s capital stock ewes sold at the Temuka ewe fair. He had mixed feelings as he looked back over his many years sheep farming. “Sheep don’t fit any more for (his son) John. Cropping has taken over but in all farming the long-term prospects will nearly always look better than the short to medium and one thing for certain is you have to work hard on the land no matter what you are doing.” At age 60 John decided he was getting out of

Shearing champs going live Neal Wallace neal.wallace@nzx.com

John and Jack Evans, Mid Canterbury.

lambing because growing 13 different crops was a better option. “I’m not going out of sheep, just going out of lambing. I’m too busy planting crops and it’s

just incidental that lamb prices collapsed. “If grazing lambs can stack up then I will still be in the market as there’s still a place for sheep in cropping but

that’s not looking too flash. “It’s a bit frightening as all my farming career sheep have been like this and nothing is changing,” he said.

GEORGE Bedford was at the Temuka ewe fair to buy but wasn’t driven by confidence in the industry. “It’s what fits in the farming system. I do a bit of cropping and dairy support and sheep have always been a part of the farm and always will be. “I still enjoy sheep and will keep plugging away, juggling between store lambs and ewes when the price is right to hopefully make a buck or two.”

George Bedford, Dorie.

Words and pictures by Annette Scott

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EVERY minute of competition at the World Championship Shearing and Woolhandling Championships starting in Invercargill this week will be live streamed around the world. It would also be broadcast by the event’s partner Maori Television in an hourlong special following the competition. Shearers from a record 32 countries start chasing world titles at Invercargill’s ILT Stadium Southland on Wednesday with the finals scheduled from 6.30pm on Saturday. Every minute will be live on the event’s website www. worldshearingchamps.com. Last week shearers and woolhandlers had a two-day training camp at Mt Linton Station learning the finer points from former world champions and some of the best trainers in New Zealand. Organising committee chairman Tom Wilson said it was the first time in the event’s 40 year history it had been hosted in the South Island

and organisers had achieved their goal of attracting as many countries to compete as possible. “We told them we’d look after them and would give them training sessions over here and that was a big drawcard for them,” he said. Competitors from Australia, Austria, Denmark, England, Estonia, Falkland Islands, France, Germany, Iceland, Ireland, Isle of Man, Netherlands, Scotland, Switzerland, United States and Wales headed to Mt Linton to learn from some of the world’s best. Lambs were shorn on the first day followed by second shear ewes on the second. As part of their build-up competitors took part in the southern shearing circuit and at the weekend many entered the Otago Shearing and Woolhandling Championships, which included the crowning of the NZ Woolhandler of the Year. That was followed by a Go Shear event in Gore on Sunday that included dog trials, ploughing and a speed shearing event hosted by the Gore community.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Agriculture debt tops $61 billion Hugh Stringleman hugh.stringleman@nzx.com THE growth of agriculture sector credit slowed to a relatively modest 4.2% during 2016, less than half the rate of growth in 2015. The Reserve Bank said total agriculture sector borrowing at the end of December was $61.155 billion, compared with $58.7b a year before and $53.9b in December 2014. The figures were part of the bank’s C5 Sector Credit reporting series, a breakdown of lending to agriculture, business and household sectors by registered banks and non-bank lending institutions. For contrast, business sector credit grew by 6% during 2016 to stand at $94.75b and household credit was $246.87b at the end of December, up 8.7% during the year. Housing accounted for 93% of household borrowing. ANZ Bank senior economist Philip Borkin said the growth of agriculture credit slowed as 2016 progressed, as milk prices

for dairy farmers recovered, compared with strong growth in the latter part of 2015. For 15 months between April 2015 and June 2016 the monthly rates of growth, year-on-year, were in the range 6% to 9.3%. The strong growth in 2015 was because of working capital requirements and farmers drawing down on previously arranged credit lines. “The demand for working capital dried off during 2016, hence the return to lower credit growth numbers. “Banks also have a good handle on debt levels and may be reluctant to lend more to dairy farmers. “The balance sheets of dairy farms are relatively full, as we might say,” Borkin added. The slower credit growth attributable to dairying would not cause the Reserve Bank to moderate its language concerning dairy debt in recent financial stability reports. “Maybe the risks have lessened with the rise in milk prices but the outlook remains uncertain and the Reserve Bank will continue to

RISING: Agricultural debt is still rising but at a slower rate than previously.

be concerned about the potential for collapse.” Anecdotes about high orchard prices and investment flows into more production of different fruits would also be part of the agriculture sector credit growth, Borkin said. The Reserve Bank reports once a year on the components of agriculture sector credit. Last September it said horticulture had $3.3b of bank

lending, grain, sheep and beef cattle farming $13b, dairy $40b, other livestock farming (pigs, horses, deer) $1.3b and poultry $400 million. At that time fixed interest loans totalled $18.5b and floating rate $41.5b. Agribusiness credit was $5.7b in total, dairy manufacturing being $1.85b, wine making $1.1b, meat processing $980m, grain storage $560m and fruit, vegetable

and cereal wholesaling $536m. ASB Bank rural economist Nathan Penny said that through 2015 and the early part of 2016 dairy farmers were borrowing to cover cash deficits but as milk prices started to improve that need diminished. “I think for the next six months we will see low growth or falling agriculture sector credit as dairy farm business balance sheets are repaired and confidence grows that the upturn is sustainable.” Penny said prices and profitability in horticulture were driving high values for gold kiwifruit licences, high orchard sale prices and even some conversion from grape growing to apple growing in Hawke’s Bay. Some of the other indicators for dairying such as cow and farmland values, feed grain and supplement prices were showing signs of bottoming out and gradually rising again, he added. But there was no sign of dairy conversions or higher stocking rates, indicators that dairying would be back into an expansionary phase.

Farmers produce less milk to make more money THE recent dairy price downturn clearly illustrates the behaviour of commodity cycles and the powerful influence New Zealand dairy farmers have on milk powder prices, in particular, ASB senior rural economist Nathan Penny says. The third “lesson from the dairy downturn” was that when farmers lost money, they changed their behaviour, he said. The ASB economics team, which for most of 2016 was very bullish about a payout recovery, pinned its faith on the cyclical nature of commodity prices. Although other commentators

thought the abolition of European Union dairy quotas was a game-changer, ASB said that did not materially change the competitive position of the EU – that of a high-cost producer. “We expected that low milk prices would eventually impact on the EU in the same way they were impacting in NZ.” NZ’s influence as the world’s largest dairy exporter, especially the dominance in whole milk powder, showed up when reduced NZ supply had a big effect on global dairy prices. “The other lesson we take from these points is that contrary to

general belief, NZ farmers are not necessarily subject to the whims of global dairy markets. “Indeed, NZ farmers have more pricing power than they are normally led to believe. “In short, if NZ farmers produce less, they will get paid more, with the net effect of higher incomes overall.” Penny promised part two of his lessons from the downturn would point out ways the NZ dairy sector could adapt to, perhaps influence the global dairy cycle. His third message for the time being was that low prices

changed farmer behaviour and that price support and intervention only delayed the inevitable responses. The abolition of EU dairy quotas in April 2015 did produce a surge in milk but European farmers found that was unsustainable and reacted as NZ farmers had done, with the result that seasonally-adjusted production fell throughout 2016. ANZ Bank economists, who published a rural commentary before Christmas, said one of the biggest challenges facing the dairy industry over the next 18 months would be maintaining

the extra cost efficiencies put in place during the downturn. “There will be some natural unwind from extreme lows but there is a risk that if it is completely unwound profitability will remain elusive even with the lift in the milk price. “There is a close relationship between the milk price and the costs of grazing, supplementary feed, cows, a range of services and fertiliser. “Farmers will need to think carefully about ways to lock these and other costs in, that move with the milk price.”

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News

10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Anxious wait for exports to US Nigel Stirling nigel.g.stirling@gmail.com EXPORTERS are watching anxiously to see if President Donald Trump will adopt a proposal for a 20% tax on all imports into the United States. The so-called border adjustment would help pay for a cut in American corporate taxes and was a key plank of Republican Party tax reform plans long in the works. Backers including House Speaker Republican Paul Ryan said it would help level the playing field for US companies hit with GSTstyle consumption taxes in foreign markets but not levied on imports entering America. Trump had run hot and cold on the idea both during and since the presidential campaign but agreed it was one way the US could boost its exports. He also said he sees it as a potential funding source for his plan to beef up the border with Mexico. Trump trade adviser Peter Navarro suggested the tax could be used against countries the US ran large trade deficits with such as China, Mexico and Germany. A former New Zealand diplomat now in Washington DC said whether the tax would

UNKNOWN: With the United States increasingly exporting dairy products it will be disappointing if it now puts up barriers in its own market, Dairy Companies Association executive director Kimberly Crewther says.

be levied selectively on imports from countries the Trump administration wanted to punish on trade or across the board as proposed in the Republican plan was still up in the air. “The feeling here is with so many of these ideas floating around that something is going to stick in some way.” Just how the tax would be applied and on whom was of major interest to a range of NZ primary exporters that could be winners or losers depending on the final shape of the measure.

Applied across the board it would dampen returns from the US and potentially force product into less lucrative markets. Dairy Companies Association executive director Kimberly Crewther said the US was in the top five markets for the NZ industry. The industry here was monitoring the development of the tax plans but with the detail still to be confirmed it was difficult to assess what impact it could have on NZ dairy exports to the US.

With an increasing share of US dairy production now for export the NZ industry believed it had an increasingly shared interest in trade liberalisation. An example of that was recent co-operation in pressuring Canada to drop a proposed guaranteed minimum price scheme for its farmers, which the US and NZ argued had the potential to suppress global milk powder prices and ran counter to international trade rules. Given that background Crewther said it would be disappointing if the US were now to erect barriers to trade in its own market. The meat industry also had a significant stake in the US which was far and away its single biggest beef market. A source from the NZ industry currently in the US detected general support among ranchers for Trump’s plans to cut federal regulation but that did not extend to his agenda on trade. There was widespread dismay at Trump’s decision to withdraw from the Trans Pacific Partnership. The agreement would have progressively lowered tariffs in the heavily protected Japanese market.

The source said there was no appetite among ranchers for a border tax. “They are worried about what it will lead to because if they put a 20% tax on imports it is going lead to some sort of retaliation from trading partners and potentially against US beef.”

I would be surprised if this was an issue that hit wine but a lot of surprising things have been happening lately. Jeffrey Clarke NZ Winegrowers Similarly, NZ Winegrowers advocacy general manager and general counsel Jeffrey Clarke said he was aware of no groundswell among US producers for protection against foreign competition despite recent strong increases in imports from NZ. “I would be surprised if this was an issue that hit wine but a lot of surprising things have been happening lately.”

Russia bans kiwi meat Nigel Stirling nigel.g.stirling@gmail.com RUSSIA has followed through on its threat to ban beef imports from New Zealand for failing to meet import requirements. In a statement Russia’s Federal Service for Veterinary and Phytosanitary Surveillance said the ban was because of the discovery of listeria and traces of the banned feed additive ractopamine in NZ beef shipments. The statement said that “to ensure the country’s food safety” the agency “is bringing in temporary restrictions on imports into Russia of beef and beef products from NZ from February 6”. It said it was also contemplating a ban on fish imports from NZ. The ban followed the head of the service Sergey Dankvert in October saying he was contemplating banning chilled beef and fish from NZ after traces of listeria and mercury had been found in imports. The Ministry for Primary Industries said it had been notified in September of the finds in three shipments of chilled meat and fish of levels of listeria and mercury that exceeded levels permitted by Russian import regulations. MPI said the levels were in line with NZ’s own microbiological and contaminant standards. The ban would come as a shock to the Government, which has repeatedly sought clarification from Russian officials over the

comments by Dankvert. An MPI spokesman late last month told Farmers Weekly those attempts had still to yield a response. Russia has a record of banning or restricting food imports for alleged violations of sanitary norms. It banned or restricted a range of European food imports after the European Union slapped sanctions on Russia for its annexation of Crimea and support for east Ukrainian rebels in 2014. Export licences were also withdrawn from a large swathe of NZ dairy processing plants after Fonterra’s botulism scare. While the ban was partially lifted in August 2015 it remained in place for butter, which historically had been the most significant part of a sizable dairy trade with Russia for NZ exporters. An MPI spokesman said last week NZ was still waiting for Russian inspectors to visit remaining plants to give them the all-clear. It is widely suspected in diplomatic circles that footdragging on this issue by Russian authorities was in return for NZ’s support of Western allies against Russia’s involvement in Ukraine and Syria. Meat Industry Association figures showed NZ meat exports to Russia had fluctuated between $49m and $57m since 2010. Most recent figures showed the trade holding up at $27.8m for the first six months of 2016.

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Correct identification. Check. Better genetic gain. Check. Better returns. Cheque. Approximately one in four* calves born are mis-mothered, mis-tagged or mis-recorded. And with it costing around $1,600 to rear a calf through to first lactation, that’s a lot of money and potential genetic gain on the line if you get it wrong. GeneMark® parentage testing helps you to accurately match calves to the correct dam and sire, so you can ensure you’re not just rearing the best calves but you’re also getting the best returns. Cheque. To find out more talk to your LIC rep or visit lic.co.nz/genemark *Based on five case studies conducted by LIC from 2010-2012

News

12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Prime Range Meats plant is sold again Neal Wallace neal.wallace@nzx.com

The 170 Invercargill staff did not have work for two weeks and with no communication from Lianhua there was no certainty it would reopen. The two New Zealand shareholders and directors Tony Forde and Inky Tulloch managed to secure funding and work resumed. Lianhua bought a 75% stake in Prime Range Meats in November 2014 from Forde, the plant’s managing director, and motor racing identity Tulloch, who both diluted their shareholdings to 12.5%. The investment came with promises of investment in the plant, more jobs, competition for farmers’ livestock and access to a retail network in China. In its application Cuilam told the OIO the deal would allow it to access beef and lamb for distribution throughout China.

ANOTHER Chinese company has bought Invercargill’s Prime Range Meats plant, which was forced to close for two weeks at the peak of the season last year. Cuilam Industry has paid $13.518 million to buy the small beef and lamb meat works from fellow Chinese company Shenzhen Lianhua Enterprise Development Company, in a deal approved by the Overseas Investment Office. The transaction included 115ha of land in and around Invercargill. Prime Range Meats was in the news in February last year when it was forced to close for two weeks after it ran out of working capital. That followed a change in ownership of Lianhua when Cuilam bought 24.9% of the company.

New head for fertiliser Power brought international experience in farm systems through applied research with Teagasc (the Agricultural Research Authority in Ireland) and more recently government policy experience on both water and climate change with Ministry for the Environment. She understood the evolving demands on farmers to farm responsibly while operating in an increasingly complex regulatory environment.

THE Fertiliser Association of New Zealand has appointed Dr Vera Power as its new chief executive, following the retirement of Dr Philip Mladenov. “Power has strong credentials in research relating to phosphorus use in farming systems, and more recently, links to water quality management and environmental protection – experience that is both highly valuable and highly relevant to her new role,” association chairman John Henderson said.

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

We consulted widely before revamping the winter milk scheme and farmers told us they wanted more flexibility, which is what we have delivered. Paul Grave Farm Source

MORE: Fonterra now has four winter milk collection sites in the North Island, Farm Source Waikato regional head Paul Grave says.

sites – Kauri, Takanini, Waitoa and Longburn. The addition of Kauri, near Whangarei, was a big boost to Northland farmers, many of whom already autumn-calved for a whole herd or part herd and had until now been paying the transport adjustment for a further 175km to Takanini, South Auckland. The premium adjustment factor was now 2.5c/kg deducted for every 10km travelled between the supply farm and the nearest designated plant. For the purpose of comparison, Grave said the new North Island contract rates averaged out at $2.10 premium across 92 days, compared with $1.90 last winter. But because the contract period was only 61 days, farmers would receive an extra benefit from paying the transport deduction for the shorter period. The wider tolerance on supply volumes would also be a benefit. All winter milk premiums were payable in full on the 20th of the month following

production, on top of the applicable advance rate for that month. “We consulted widely before revamping the winter milk scheme and farmers told us they wanted more flexibility, which is what we have delivered.” The non-contracted winter milk option was for those farmers uncertain about winter conditions or testing their own ability to more reliably deliver in future. For farmers, a great deal of preparation, change and commitment went into setting up for winter milk production, Grave said. They would need to make careful decisions, take advice and be ready to sign up before the end of March. Fonterra said the South Island demand for winter milk, both for the local fresh market and for mozzarella making at Clandeboye, was already filled by established suppliers with a proportion of their milk production occurring in June and July. It would not look for additional supply until the substantial expansion of Clandeboye’s mozzarella capacity had been built, from winter 2019 onwards.

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BETTER: As well as improving premiums Fonterra has eased the conditions of winter milk supply.

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Battle lines drawn against fly strike

lystrike is a major animal welfare issue that will affect up to two million sheep, causing death of 250,000 lambs and cost up to $50 million this year. This problem is now being compounded by the emergence of fly resistance to two commonly used Insect Growth Regulator (IGR) chemicals, triflumuron and diflubenzuron, for its very prevention. Continued success in prevention comes down to having a planned approach to flystrike control, including the use of new combination products for treatment and prevention. Integrated Pest Management (IPM) An IPM is based on the planned and strategic use of several methods. If successful, it can reduce the incidents, costs, decrease the risk of pesticide residues in wool and slow development of resistance to chemical treatments. Step 1: Know your enemy You cannot manage what you do not know so it’s important to understand the life cycle and conditions that favour flies. In spring, over-wintered pupae in the soil hatch and provide the

initial waves of attack. These flies will be looking for a high protein food source such as carcasses or daggy sheep. Each female can produce up to 600 eggs in her life-time. When conditions are right, these eggs can hatch, develop through to mature maggots, pupate and hatch new flies within 12-20 days! With unprotected sheep being easy targets, it does not take a lot of time for fly numbers to build up into huge swarms that will sweep across your farm. Step 2: Develop an effective strategy Farm management decisions need to both eliminate the source of food for flies and protect stock. Reducing the ‘fly attractiveness’ of the farm and stock is the best place to start. Disposing of carcasses, dagging sheep, and managing diseases are all important parts of the plan. However, flies will still find ways to attack your flocks. Chemical applications are necessary to provide additional protection from fly strike. An arsenal of products are available for treating and preventing flystrike, but only the IGR’s can provide the benefits of long-term protection. Protecting the few

Part one of a four-part series for farmers on best practice for managing animal health and welfare on-farm. remaining effective IGR’s from resistance, will be critical. This is best achieved by ensuring products are being used correctly. Combination treatments are the newest weapons farmers can use to turn the tide back in their favour. These products are designed to make it more difficult for flies to survive treatments and most importantly slow their development of chemical

resistance. Ravensdown’s Saturate® Gold and Fleeceguard® are two combination products that have been developed to combat fly strike. For the flystrike battle to be won, a multi-pronged attack needs to be adopted including; • Using ectoparasiticides wisely • Avoiding practices that encourage the development

of resistance and increasing the use on nonchemical practices. Whether you’re battling the swarm or wanting to prevent it, Ravensdown animal health technical managers have the expertise to help with your approach. ravensdown.co.nz

Technical Manager – Animal Health If you’re keen to grow your career, there’s no better place to nourish it than here. We’re committed to providing our people with all they need to positively thrive. So, isn’t it time you put your trust in the company that’s been trusted throughout New Zealand for almost 40 years? As a Technical Manager – Animal Health, you’ll be using your knowledge of animal health and sales skills to make a real difference to the farming community. As part of a regional sales team you will build strong relationships with Ravensdown’s customers to find the best animal health solutions for them. You will provide support and training to our customer-facing staff on the selection and application of Ravensdown’s animal health products and services. As well, you’ll be the go-to person for anyone with related animal health enquiries. You will work on finding innovative solutions to problems before they start. With your excellent communication and relationship-building skills, other team members can succeed under your leadership, and customers trust you. You’ll be spending a fair amount of your time moving around your region to discuss farming solutions with our customers, and to train our staff, but structuring the training your way. What you’ll be doing • Provide technical training, resources and support on Ravensdown Animal Health products and services to other staff members • Seek out new animal health business in the regional area through building relationships with our shareholders

Skills and Experience • At least 3 years’ experience within the animal health industry • Sound technical knowledge in the area of internal parasites and mineral/trace elements in ruminants and the ability and willingness to develop this knowledge • Experience developing and sustaining relationships • A history of achieving success through other people, a commitment to teamwork and the ability to develop individuals and the team

Benefits For all you’ll bring to us you can expect plenty in return, including a company car, phone, laptop and clothing, medical insurance, superannuation, training and development opportunities. Location will be flexible within the Central North Island region, with Hamilton being the northern boundary and Tongariro National Park the approximate southern boundary.

Please send your CV with a covering letter to Rachel Wix, HR Advisor at careers@ravensdown.co.nz. Applications close 9th February. Ravensdown is committed to a drug and alcohol free workplace. The successful applicant will be required to undergo a pre-employment drug test.

News

14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Tree conference a practical forum Alan Williams alan.williams@nzx.com THIS year’s New Zealand Farm Forestry Association conference will highlight the diverse geography of the region around Feilding where it is being held. Delegates will visit established forest blocks on sheep and beef farms as well as steep hill country gullies prone to erosion and coastal dune areas with sustainable land use plantings. On the last day there’s an option to inspect new logging systems on Wanganui hill country. “The theme is the challenge of diverse landforms and that suits the region,” conference organising group chairman John Dermer said. The conference is being held from April 6 to 10. The organisers said it would be a practical forum for people interested in using trees and forestry to get the best results from their land and not just for farmers but for anyone interested in good land use. A feature on the first day was a presentation by American forest scientist Professor James Trappe on mycorrhizal fungi in forestry, described as an underrecognised but very important

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The theme is the challenge of diverse landforms and that suits the region. John Dermer Farm Forestry Assn

MESSAGE: Forestry is not recognised as well as it should be as a strong-performing option, Farm Forestry Association conference organiser John Dermer says.

subject in NZ forestry and agriculture. “The fungi helps trees grow and it’s been found that the second rotation of radiata grows better than the first rotation because of it being in the ground,” Dermer said. “It’s not there at the start of the

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through his sheep and beef farm and had protected them with fencing and the planting of about 25ha in a number of species. On the Saturday there would be a visit to the big Dalrymple sheep, beef, cropping and forestry property on coastal land near Bulls, where the latest technology was used to irrigate and manage extensive areas of sand country. A Sunday visit to the Pohangina

Log prices still at highest levels

Saturday 04/02/2017 Rangitikei Shearing Sports Venue: Marton Memorial Hall, 397 Wellington Road, Marton Time: 8.30am – 5pm

Saturday 25/02/2017 Kaitaia A & P Show (Indoor and Outdoor sections) Venue: Kaitaia Show Grounds, South Rd, Kaitaia Contact: Lynne Macrae 09 406 7183 or kaitaia.entries@xtra.co.nz Website: www.kaitaiashow..nz

first rotation but starts coming in while it is growing.” KPMG global head of agribusiness Ian Proudfoot would speak on trends in global primary production and what that meant for NZ farmers. There would be visits to two farm-forestry properties including Dermer’s own farm just north of Feilding on Friday April 7. The 2014 farm-forester of the year had three waterways running

Valley hill country would focus largely on the severe Goulter’s Gully erosion area, dating back many decades but now showing the benefit of sustainable planting under a Horizons regional council programme. Also on Sunday was an afternoon visit to Murray’s Nurseries in Woodville, one of the country’s biggest radiata seedling producers, where the mycorrhizal fungi would again be discussed. Given the theme of the conference, there wouldn’t be a lot of formal discussion about the need for more tree planting in NZ, both for financial and sustainable land use benefits, Dermer said. However, the message that forestry was an under-recognised but generally strong-performing option was still not as well accepted as it should be. There were many instances of forest returns being well above sheep and beef returns on equivalent land area, with the added benefits of absorbing greenhouse gases and reducing soil erosion and protecting water quality.

THE house-building boom means structural log prices are at about their highest levels since AgriHQ started keeping records in the early 1990s. They had been about $118 a tonne through December into January, compared to typical prices in the $85/t to $95/t range since the mid1990s, AgriHQ analyst Reece Brick said. The news was good as structural timber was at the higher value end of the market, which had been strong for the last 18 months and showed no signs of changing any time soon. Structural timber made up about 30% of the domestic market, with pruned logs at about 23%, round wood 5%, and pulp at 42%. Round wood prices were also very firm, up about $3/t to $85/t, because of strong demand from horticulture and viticulture businesses, as well as the housing construction sector. The industry had been fortunate in that horticultural

BOOM: House building activity is keeping log prices up

demand rose to new levels almost about the downturn in demand from dairy farmers as prices fell in that sector, Brick said. There was pretty much a neat offset. Prices were also strong for log exports to China in the weeks leading up to its New Year holiday.

The market was confident of continued good sales with relatively low inventory levels at Chinese ports and low volatility over the last several months. However, no-one had a detailed record of the market and the situation did change sometimes once the

holiday period ended, he said. About half of NZ’s forest output was exported to China. A-grade export logs had been selling at up to$124/t, in line with the 2014 record levels. A-grade logs made up 46% of the exports.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Spaans’ health cuts his workload Hugh Stringleman hugh.stringleman@nzx.com MICHAEL Spaans has resigned as a Fonterra farmer-director and stood down from the chair of Dairy New Zealand through ill-health. He will remain a farmer-director of DairyNZ, having served eight years in that role and one year as chairman after a contested election within the board in late 2015. The DairyNZ board has asked independent director Barry Harris, a former senior executive with Fonterra and Environment Waikato, to be interim chairman. Spaans was re-elected for his second three-year term as a Fonterra director late last year, the first sitting director to gain the approval of his fellow directors to stand again under a new selection, assessment and nomination route. Fonterra directors had now

asked former three-term director Ian Farrelly to return as an interim director until the 2017 annual meeting. That meant there would be three farmer seats open in the election process later this year rather than two, when the terms of John Monaghan, David Macleod and Leonie Guiney expired. Though three directors’ terms were expiring only two of their seats would be filled, as part of the reduction process. Fonterra was part way through a two-year reduction in the number of farmer-directors from nine to seven under reforms to governance and representation approved by the farmershareholders last year at the second time of asking. Under the new rules, Monaghan, who is now in his third term, would need a special dispensation to stand again. Macleod and Guiney also had

Fonterra taking long-term view on Beingmate Hugh Stringleman hugh.stringleman@nzx.com FONTERRA’S Chinese partner, Beingmate Baby and Child Food Company, has foreshadowed another substantial loss result in 2016, about double the previously advised loss forecast. It expected to make a loss of $150 million to $160m, the directors said. Fonterra’s chief financial officer Lukas Paravacini said Beingmate’s recent performance reflected China’s challenging dairy market conditions. “The long-term outlook remains strong with disposable incomes in China growing by 11.5% average a year since 2006, the relaxation of the one-child policy taking effect and tightening brand regulations leading to the exit of many smaller competitors from the marketplace. “We are confident in our overall China strategy, of which our Beingmate partnership continues to be an important part. “The partnership is a long-term investment to grow in the domestic infant formula market. It also supports future ingredient sales of our NZMP brand from New Zealand and our whey products from Australia and Europe. “Distribution of our Anmum infant formula brand in China grew from 60 cities in 2015 to more than 170 cities today. Our total sales are also ahead of projection. “Beingmate’s annual result, to be released in March, will provide further information that is required to assess the situation in detail. “We will include an update for our farmer shareholders as part of Fonterra’s interim result announcement in late March,” Paravicini said. In 2015 Fonterra paid about $750m for an 18.8% stake in the listed Beingmate. The share price was now about two-thirds of what Fonterra paid and Beingmate has not paid a dividend in recent times.

to gain approval from fellow directors and then go through the independent assessment and nomination panel process. Fonterra chairman John Wilson said Spaans was diagnosed with cancer last year and after treatment was cleared by doctors to stand for re-election to the board. Unfortunately, the cancer had returned and Spaans needed to focus on his health and recovery while under a manageable workload. A large dairy farmer with interests in Waikato, Canterbury and Chile, Spaans was first elected to the Fonterra Shareholders’ Council at formation, in 2000, and served eight years. He was subsequently first elected to the board in 2013 to fill the seat held since 2001 by Sir Henry van der Heyden. Spaans re-organised his business life after election to

ILLNESS: Michael Spaans has stood down from the Fonterra board and as DairyNZ chairman to reduce his workload.

Fonterra, standing down as chairman of Animal Breeding Services and subsequently Waikato Innovation Park, both long-serving roles. He also resigned directorships of Ospri and NZ Animal Evaluation, offshoots of his DairyNZ board position, and

stepped back from governance of Manuka SA, the large NZ-owned Chilean dairy farming company. He remained a member of the ASB Bank advisory board in NZ. With wife Kristina, he lives on the home farm at Te Aroha, and they have three school and university-age children.

Chinese breakfast promo gets 89 million app hits RISING incomes and a growing middle class in China are fuelling demand for Western-style breakfast foods such as butter, cream and cheese, Fonterra says. To meet demand it has boosted the availability of its Anchor Dairy Foods’ range, increasing the number of stores it sells into from 1400 to 1700 in recent months and elevating the presence of its products on e-commerce platforms – a popular way of buying food items in China. It also launched a mobile app campaign inviting users to share their favourite breakfast recipes using various dairy ingredients. More than 8000 recipes were shared in December and January by shoppers who bought Anchor products. About 70% of the recipes shared were Western-style dishes such as breakfast

paninis and omelettes while 30% were Chinese-inspired dishes such as sweet potato cream soup, toast rolls with peanuts and cheese and egg breakfast cups. “Breakfast as we know it is changing in China,” Fonterra’s greater China brands vice-president Chester Cao said. Fonterra had supplied the breakfast products to the food service industry for many years but was now focusing more closely on shoppers, encouraging them to see dairy products as a healthy, protein-packed start to their day. To promote dairy as essential, everyday breakfast food, Fonterra’s campaign also involved a number of chef demonstrations, including one by Michelin star holder Steven Liu who staged a cooking event in Shanghai in December. The campaign also

included digital advertising and activation with Chinabased food delivery app Eleme, which generated 89 million impressions among app users. “It’s great to see a high level of engagement with our campaign and with our products,” Fonterra greater China president Christina Zhu said. “It reaffirms that there is a growing appetite in China for more high-quality dairy ingredients.” Data from China Customs showed imports for butter, cream and cheese all rose significantly in the first 11 months of 2016 compared with the year prior, with cream up 57%, cheese up 31% and butter up 21%. “This increase in demand is significant. “It’s driven by factors such as urbanisation, rising incomes and a greater desire for more premium items,” Zhu said.

POPULAR: It is great to see high-level engagement with Fonterra’s breakfast campaign and its products, its greater China president Christina Zhu says

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News

16 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Freeloaders worry Feds Annette Scott annette.scott@nzx.com

COME IN: Federated Farmers needs more members North Canterbury president Lynda Murchison says.

FREELOADERS and multiple farm ownerships have become a big problem for Federated Farmers as the organisation strives to remain a powerful voice lobbying for farming. With a membership of just over 13,000 but its work benefiting all farmers, Federated Farmers had a “freeloader issue” that needed addressing, the organisation’s membership general manager Lyndel Stone said. “In terms of the policy and advocacy work we do, every farmer benefits no matter whether they are a member or not so we have a freeloader issue

and big problems as when freeloading gets too high we lose efficacy.” While waiting on statistics for the actual number of farms in New Zealand, the federation believed it was about 26,000. “We need more. Ideally, every farmer would be fantastic,” Stone said. In a tough year membership was an easy thing for farmers to drop. “It’s in the tough year that farmers need us more than ever. We have clearly seen that in recent times of adverse events such as drought and quakes. “What would it be like without that go-to organisation,” Stone said.

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“The stronger we are the more effective we can be, particularly this year, being an election year, there is a big push out there for farmers’ licence to farm. “The issues are growing and the costs to fight these issues are growing.” In a newsletter sent to all North Canterbury farmers, provincial president Lynda Murchison said while her region was the third largest province, membership was somewhat behind other provinces. “So we are going to plead, cajole, beg, demand – whatever it takes to convince you to get behind the organisation that works to ensure you, your children and grandchildren have a future on the land,” was Murchison’s direct message to all farmers. “Here’s the rub – most of the work that Federated Farmers does benefits all farmers whether you are member or not. “If we all freeloaded we’d have nothing,” Murchison said. Federated Farmers was a voluntary, memberbased organisation that worked across all aspects of central and local government policy, planning and regulation. “It’s our work that helps get ministers to look at an issue or get government assistance after an adverse event.” Many central and local government proposals, intentionally or inadvertently, had the potential to significantly increase the cost or difficulty of farming or, in some cases, prevent farming. It was Feds that dealt with just about every plan, bylaw or proposal that came out of every council in the country. “No other organisation does that,” Murchison said. Last year Federated Farmers submitted on more than 60 council annual budgets, 80 other district or regional council plans or proposals and made 40 national submissions on issues from animal welfare and biosecurity to Resource Management Act reform, transport, trade and telecommunications. “And we have successes,” Murchison said. “At a local level it was the Feds’ submissions and appeals on district and regional plans that got unnecessary and ineffective regulation amended.” Murchison said it was misunderstanding to think levy bodies did such work. “Their mandate is much narrower when it comes to advocacy for farmers.” With regional council’s proposed rules likely to cost farmers thousands of dollars to comply, Federated Farmers was a good investment. “It’s not like we are charging and arm and a leg. “Is $650 per annum too much to pay to ensure your business can operate? Just go to any lawyer and see how far $650 goes,” Murchison said. The power of the collective meant the modest annual subscription ensured representation from people with specialist policy, planning, science, communications, marketing and legal skills across a range of issues that affected farming. “We need more members to remain the powerful lobby voice for farming that Federated Farmers has been for the past 100 years. “Membership is a discretionary but not a big spend for what it does in your farming business,” Murchison said. Federation national president William Rolleston said a growing issue was multiple farm ownership and farm amalgamations. “We need members to be paying their fair share too. “The bigger the farm operation the bigger the benefit – benefit is scalable but the membership isn’t and we need to address that issue too,” he said.

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To join the organisation call 0800 FARMING (0800 327 646).

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Angels put spell on biotech firm Richard Rennie richard.rennie@nzx.com A CULTURE of wealth and agriculture in Waikato and Bay of Plenty has helped a biotech company get to the next stage with an innovative enzyme with multiple uses for animal and human health. Synthase Biotech, based at Ruakura’s Innovation Park, received $800,000 in its first capital-raising exercise to commercialise its enzyme trademarked Aloxsyn, capable of extending the life of cells in plant and animal matter. Synthase chairman Mark Backhaus said the company initially intended to target the human health market with an enzyme that had proven to improve the odds for stroke victim recovery if applied early poststroke. “While we do have a patent for this use, we decided to go down the path of animal applications first, on the grounds human health application and approval is a whole different and complex ball game.” Waikato and Bay of Plenty had proved to be fertile ground

when seeking funders who not only wanted to invest but could appreciate the enzyme’s application for agricultural productivity. “There are high net worth individuals in the region who understand agriculture and want to invest in it.”

Our initial focus on artificial insemination in the global dairy industry will expand into reproduction in beef, pigs, horses and eventually humans. Mark Backhaus Synthase Biotech The $800,000 capital came via angel investment network Enterprise Angels in both Tauranga and Hamilton, along with Ice Angels in Auckland. First commercial application of the technology was expected later this year when the enzyme was

applied to maintain the longevity of sperm from elite bulls used by breeding companies. “One of the challenges for that industry is fresh versus frozen semen sources. “Frozen obviously lends itself well to being used over wide areas where liquid nitrogen is used but you also require 10-20 times the amount of semen in a straw compared to fresh, which is a lot when we are talking top-end, elite bull genetics.” So, extending the shelf life of fresh semen would lower the expenses in terms of handling equipment required and actual semen used. “And if you are also able to increase conception rates that becomes a major change.” He cautioned that increased conception rates were also dependent on a cow’s fertility. The company has also been working alongside companies with sexed semen technology. There was also strong interest in the enzyme from overseas animal genetics companies. “Our initial focus on artificial insemination in the global dairy industry will expand into reproduction in beef, pigs,

FRUITFUL: A search for investors to a new enzyme product to be used in reproductive technology fell on fertile ground, Synthase Biotech chairman Mark Backhaus says.

horses and eventually humans,” Backhaus said. The enzyme prevented the mitochondria in cells dying off and the company had seen multiple applications for it. They included extending the shelf life of food, providing longer storage of human organs between transplants and in human health uses.

There was also potential the enzyme could be used to prolong the life of embryos used in transplant work. “Food industry approval is also a tough one and one we will be looking at later on. “You also need large-scale production capabilities and at the moment we are looking at lower volume applications.”

Comedian takes lead role for Young Farmers Annette Scott annette.scott@nzx.com CHILDHOOD memories have come real for comedian and now compere Te Radar. He has been named as the new frontman for the FMG Young Farmer of the Year contest. Te Radar will travel the country hosting the regional finals before presenting the grand final in July. He said he was honoured to be the new face of such a prestigious event. “It is one of New Zealand’s truly iconic events with some great hosts over the years that have left a strong legacy,” he said. Originally from an Ohinewai dairy farm in Waikato, Te Radar is right at home narrating the contest having grown up watching the fierce competition on television and having a brother who was once a Young Farmers member. “I have these childhood memories of watching it on telly thinking I could answer the quiz questions but never getting them right. “I never thought that one day I would be the one asking those questions.” Having watched some regional finals last year and compering the evening show at the grand final, he had gleaned an understanding of what it took to

I have these childhood memories of watching it on telly thinking I could answer the quiz questions but never getting them right. Te Radar Compere

NEW FACE: Te Radar is the frontman for the FMG Young Farmer of the Year.

win the Young Farmer of the Year title. “It’s not just about physical requirements. They have to be strong mentally and have excellent time management skills. “It’s mind-boggling and incredible to watch,” he said. Contest chairman Dean Rabbidge was delighted to

welcome Te Radar as the new face of the contest. “His skills will add another dimension in the 49th year of the competition,” Rabbidge said. “And with the landmark 50th contest coming up we couldn’t think of anybody more fitting to represent the refreshed format we have recently introduced. “Te Radar is a beloved

character in NZ and we couldn’t be happier to see him take on this role.” NZ Young Farmers chief executive Terry Copeland was also excited to secure Te Radar and took the opportunity to thank previous hosts Mark Leishman and Craig Wiggins for their long service. “We have had some wonderful

hosts over the years and all have added something to the contest, just as we are sure Te Radar will in his new role. “His appointment is just one of several exciting changes coming up this year that will ensure the contest remains a prestigious, modern showcase of everything the primary industry has to offer all New Zealanders,” Copeland said. Over coming months, 400 contestants would compete in 22 district contests to get 56 contestants across seven regional finals from Northern, Waikato-Bay of Plenty, TaranakiManawatu, East Coast, Tasman, Aorangi and Otago-Southland. The winners of the seven regional finals earned the honour of representing their region in the grand final in July in Feilding.

18 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Newsmaker

Trust boss wants wider audience New Zealand Farm Environment Trust general manager James Ryan sees his role as more than running the Ballance Farm Environment Awards and even there he wants to focus on a full sustainability programme rather than the competitive aspects. As well as working with regional councils on issues affecting farming and giving guidance to farmers he also wants to tell farming’s environmental success stories to a wider audience. He talked about his vision to Alan Williams.

IGHLIGHTING the many success stories in sustainable farming is one of the goals of new New Zealand Farm Environment Trust general manager James Ryan. The Ballance Farm Environment Awards will remain the pillar of the trust’s work programme but he’s keen to pursue other opportunities as well. “NZ farmers are innovative and ahead of the curve and we’ll look at more story-telling to showcase the fantastic work that they’re are doing and how we can show our field days to a wider audience.” Ryan wants to see dairy farming critics, in particular, encouraged to go to field days and he’s also keen to push an educational focus with school children as well as adults. He doesn’t want to duplicate what others are doing so will stay focused on the awards. He was appointed to general manager’s role last October, moving there after five years as regional policy adviser at DairyNZ. “It was a great organisation and industry but this was an opportunity to do something fresh to celebrate the best of farming.” He also likes the challenge of the trust playing a crucial role in guiding farmers through an area of increasingly complex sustainability issues. Though coming from DairyNZ, his new role covers all sectors of farming. His parents were sheep and beef farmers in North Canterbury. Ryan is the trust’s only full-time employee, helped by a part-time administrator. There are also part-time judges and regional

co-ordinators and a big number of volunteers. “They do a lot of the heavy lifting in terms of promoting sustainable farming. The trust helps co-ordinate their efforts and I’ll be liaising with our sponsors and partners.” He’s based in Christchurch but says that’s because of where he lives, not because the Canterbury region was any more exposed than others to environmental issues. “It was useful in my role at DairyNZ to be based in the South Island but what I’m doing now could be done from anywhere.”

We all want a healthy environment. James Ryan Farm Environment Trust

He points out the trust’s history over the last 15 years, saying it has achieved a lot in promoting sustainable farming “even before sustainable became a fashionable word”. When Ryan was appointed, trust chairman Simon Saunders said his experience with regional councils would be a great benefit to the organisation. Ryan has worked at both the Canterbury and Auckland regional councils and spent a lot of time at DairyNZ representing the interests of farmers to local and central government. “Regional councils are very active in this space and are having more and more influence on

farming and one of the strengths of the trust is that we are apolitical so do not get embroiled in advocacy,” Ryan said. Implementing change based on the Resource Management Act and the National Statement on Freshwater Management was a difficult process for those councils. The trust was keen to have a role putting them in touch with farming leaders who could talk to them about the practical impact on farmers of the changes being proposed. One of the trust’s visions was to see that NZ farmers remained recognised as world leaders “and we need to do a better job of collecting the information to substantiate that”. Ryan took part in the Kellogg Rural Leaders Programme in 2014 and wrote a paper titled Farming in a Fishbowl, which focused on his talks and surveying the views of environmental campaign leaders. It had followed his contact with many dairy farmers frustrated at the way the industry was portrayed in the media. The mainstream media tended to focus on tensions between the various parties rather than any areas of commonality, he wrote then, and he says now that the media has again tended to “pick on farmers a bit over the last few months”. There had been great progress by the industry over the last five to 10 years, including significant changes to onfarm practices, and farmers were farming to nutrient limits. “That’s not getting the appreciation it deserves and we

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FOCUS: New Farm Environment Trust general manager James Ryan wants to put the emphasis on the Ballance Farm Environment Awards as a full sustainability programme including financials rather than as a contest.

need to challenge environmental groups on that.” However, against that, he also thought the two sides had a fair bit in common in some of their views. “We all want a healthy environment.” Some of the recommendations he suggested then, such as whether the sector was consistently and clearly articulating its position on freshwater limit settings and telling environment success stories more effectively, are part of his vision now. He also suggested evaluating how environmentally poor performance was managed and identifying how it could be improved. Ryan says there is still a group of farmers – smaller than it used to be – who could be more aware of what the wider community expected of them. DairyNZ’s discussion groups were important in that, with a lot of farmers more likely to take ideas from what was happening on neighbouring farms than from

what they were seeing in books and on television. The trust has started an independent review on how the flagship Ballance awards operates, on how it could improve communications, improve the judging process, look at field development, work more closely with partners and secure a wider audience. One of the things Ryan would like to see is having the awards seen less as a competition and more as a full sustainability programme including financial improvements, where farmers can use feedback from others to help make improvements in their own operations. Too much focus competition could deter farmers from entering, he said. Among other objectives are to build-up the alumni group of past Ballance award winners, to keep them involved in the programme and work towards getting full national coverage for the trust by bringing in Tasman/Nelson and West Coast regions.

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

It’s not easy but it can be done Brent Goldsack

The

HAT milk payout premium would you need to be offered to produce winter

milk? Fonterra sent the strongest of signals late last year that its food service and consumer strategy was very much working when it told suppliers it needed substantially more milk during the critical eight weeks from mid-May to mid-July. For Fonterra to supply both its food service and consumer customers all year round, it needs to have a reliable supply of bestquality New Zealand milk during the winter months. NZ dairy farmers have a competitive advantage in our lowcost, pasture-based systems. For spring-calving farmers, cow feed-demand curves are matched closely to our pasture supply curve and this has resulted in profitable farming. The question is, if we produce milk in the winter, will our costs be that much higher that there is not sufficient profit to incentivise spring calving farmers to move to autumn calving? Autumn calving is nothing new. In Northland 16% of milk is produced in the winter months. In Waikato the most difficult month climatically is probably February – it’s typically dry, hot and often there’s a drought. And this year the wind is driving us nuts. A move to autumn calving would mean drying cows off on New Year’s Day, calving in the dry during daylight saving months and not having to calve on those cold, wet, dark winter nights in August. That has appeal. But, as we know, autumn calving is not for everyone and does have its challenges. Empty rates can be higher and there is little academic evidence to support why that seems to be the case. Farm working expenses are also higher – we estimate 30-50c/kg MS – while winter milking is harder on tracks, more infrastructure is required to maintain production in the wet months and keeping animals healthy can cost substantially more.

Cold cash

Pulpit

Milk premium

North Island

South Island

May 16 - May 31

$2.85

n/a

June 1 - June 15

$3.50

$3.60

June 16 - June 30

$3.50

$4.25

July 1 - July 15

$2.85

$4.25

July 16 - July 31

n/a

$3.60

• Three-year supply contracts provided by Fonterra to ensure certainty as to premium. • Can oversupply 20% and still get full milk premium. • Commitments taken until 31 March 2016.

There is also the question of labour. Active staff management is needed when milking all year round and labour in general is a continuing issue for our industry. However, there is a price for everything. The real question is what is the premium you would need to consider a move to autumn calving? Fonterra is offering North Island suppliers a premium of $3.50 for 30 days and $2.80 15 days either side of that. As a headline number it appears tempting. For South Island suppliers, the premium is $4.25 for 30 days and $3.60 for the 15 days before and after. This is about 20 cents a kilogram more than currently offered over the May to July period. There are a number of other very helpful points to be aware of. PAF is for only two months not three so a saving there. Further, the terms of supply are much friendlier. You can supply up to 20% more during certain periods and receive the good premiums on that milk as well. And just as importantly you can also supply up to 20% less and not be penalised. Further, the winter milk premiums are paid on the 20th of the following month, not deferred under the standard advance/retro model. That has a sufficiently positive impact on cash in July and August, months which are traditional overdraft months. PwC has run three models to see

It is vital that Fonterra can supply its customers 12 months of the year, especially in the customer and food service categories. For consistency, we have assumed that production levels and livestock sale receipts are the same under the spring and autumn calving scenarios. However, the timing of production and livestock sales obviously differ. Outlined in the tables below is the impact on cash flows of the three scenarios we considered. Table 1 depicts a standard Waikato dairy farm operating a spring calving system. Farm working expenses are $3.65 to $3.75 a kilogram, including a 23% variable order share milker. The farm has debt financing of $25 a kilogram. Assuming the current payout

Projected cash position - Autumn Calving under new Winter Milk contract FY2017 1 Table

FY2018

milk price $ 6.68 Farmgate Sensitivity +/-50 cents Projected cash position - Spring Calving

Farmgate milk price Sensitivity +/-50 cents

FY2017

$1,100k $900k

Farmgate milk price Sensitivity +/-50 cents

FY2018

6.00

Farmgate milk price Sensitivity +/-50 cents

MODELS: PwC Waikato managing partner Brent Goldsack has run the number on different scenarios to test the value of producing winter milk. sharemilker. The farm has debt financing, again $25 a kilogram. Assuming the current payout forecast of $6/kg MS is maintained in the 2018 and 2019 seasons the farm will have peak cash of $850,000 in October 2018. That is as a result of generating after-tax cashflows of $175,000 in 2017 and $275,000 each year thereafter. It is an extra $50,000 net cash each year compared to a spring calving system. The higher winter milk premiums account for the increased peak cash position in October 2018. For a number of reasons, NZ farmers will have to be efficient and profitable at producing milk in the winter. It is vital that Fonterra can supply its customers 12 months of the year, especially in the customer and food service categories so the year-round, value-add margin can be enjoyed by all suppliers. While it may not be easy, if you can get winter milk right, it can be profitable at the premiums offered, though it will require planning, a laser eye on reproduction and active, supportive management of staff.

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

Projected cash position - Autumn Calving under new Winter Milk contract FY2019

Farmgate milk price Sensitivity +/-50 cents

6.00

FY2017 Table 2

6.66

FY2018

milk price $ 6.68 Farmgate $ 6.67 Sensitivity +/-50 new cents Winter Milk contract Projected cash position - Autumn Calving under Farmgate milk price Sensitivity +/-50 cents

$1,300k

FY2019

Farmgate milk price Sensitivity +/-50 cents

6.00

$900k

FY2017

$1,100k $1,300k

Farmgate milk price Sensitivity +/-50 cents

FY2018

6.68

Farmgate milk price Sensitivity +/-50 cents

6.67

FY2019 Farmgate milk price Sensitivity +/-50 cents

6.66

$900k $1,100k

$700k $700k

$700k $900k

$500k $500k

$500k $700k

$300k $300k

$300k $500k

$100k

$100k $300k

$100k

$31k

($100k) $100k

FY2017 Forecast

FY2019 Projected

Mar 2019

Apr 2019

May 2019

Mar 2019

Apr 2019

May 2019

Jan 2019

Feb 2019

Jan 2019

Dec 2018

FY2019 Projected

Feb 2019

Dec 2018

Oct 2018

Sep 2018

Nov 2018 Nov 2018

FY2019 Projected

Oct 2018

Sep 2018

Jul 2018

Aug 2018 Aug 2018

Jun 2018

FY2018 Projected

The above forecasts should be read in conjunction with our disclaimer.

Jul 2018

Jun 2018

Apr 2018

Mar 2018

May 2018 May 2018

Apr 2018

Mar 2018

Feb 2018

Jan 2018 Jan 2018

Dec 2017

Feb 2018

Dec 2017

Oct 2017

Sep 2017

Nov 2017 Nov 2017

FY2018 Projected

Oct 2017

Sep 2017

Jul 2017

Jun 2017

Aug 2017 Aug 2017

Jul 2017

Jun 2017

Apr 2017

Mar 2017

May 2017 May 2017

Apr 2017

Mar 2017

Feb 2017

Jan 2017 Jan 2017

Dec 2016

FY2017 Forecast

Feb 2017

Dec 2016

Oct 2016

Nov 2016 Nov 2016

Sep 2016 Sep 2016

Aug 2016

FY2017 Forecast

Oct 2016

Jul 2016

Aug 2016

$31k

($500k) May 2019

Apr 2019

($500k) ($300k)

May 2019 Apr 2019

Mar 2019 Feb 2019

Mar 2019

Feb 2019

Jan 2019 Dec 2018

Nov 2018

Jan 2019

Dec 2018

Oct 2018

Sep 2018

Nov 2018 Oct 2018

FY2019 Projected

Sep 2018

Aug 2018

Jul 2018

Aug 2018 Jul 2018

Jun 2018

FY2018 Projected

The above forecasts should be read in conjunction with our disclaimer.

Jun 2018

May 2018

Apr 2018

May 2018 Apr 2018

Mar 2018 Feb 2018

Mar 2018

Feb 2018

Jan 2018 Dec 2017

Nov 2017

Jan 2018

Dec 2017

Oct 2017

Sep 2017

Nov 2017 Oct 2017

FY2018 Projected

Sep 2017

Aug 2017

Jul 2017

Jun 2017

Aug 2017 Jul 2017

Jun 2017

May 2017

Apr 2017

May 2017 Apr 2017

Mar 2017 Feb 2017

Mar 2017

Feb 2017

Jan 2017 Dec 2016

Nov 2016

Jan 2017

Dec 2016

Oct 2016

Nov 2016

FY2017 Forecast Oct 2016

Sep 2016 Aug 2016

Jul 2016

Jun 2016

($500k)

Sep 2016

Jul 2016

Aug 2016

Jun 2016

($500k) ($300k)

($300k) ($100k)

($106k)

Jul 2016

($100k) ($300k)

Jun 2016

($100k)

Jun 2016

$1,300k

6.67

forecast of $6/kg MS is maintained in the 2018 and 2019 seasons, the farm will have peak cash of $600,000 in March 2019. That is as a result of generating after-tax cashflows of $125,000 in 2017 and $225,000 each year thereafter. A standard Waikato dairy farm operating an autumn calving system and using existing Fonterra winter milk contract arrangements. Farm working expenses are $3.95 to $4.05 a kilogram, including a 23% variable order sharemilker. The farm has debt financing of $25 a kilogram. Assuming the current payout forecast of $6/kg MS is maintained in the 2018 and 2019 seasons the farm will have peak cash of $750,000 in October 2018. That is as a result of generating after-tax cashflows of $150,000 in 2017 and $250,000 each year thereafter. It gives an extra $25,000 net cash each year compared to a spring calving system. One would argue that is not enough to cover the additional risks of changing your farming system and the increased cash required to be invested. Under an autumn calving model, additional revenues are earned thanks to the winter milk premiums offered. An additional benefit is that payment of the premiums comes the month following production. That explains why the farm has an earlier peak cash position compared to the spring calving option. Table 2 depicts the same farm operating an autumn calving system and making use of the proposed Fonterra winter milk contract arrangements. Farm working expenses are $3.95 to $4.05 a kilogram, including a 23% variable order

if winter milk is profitable, taking into account the additional costs, and the results are interesting. Based on an ash soil, 460-cow, 131-hectare Waikato farm, spring calving farm working expenses (FWE) are about $3.65 to $3.75 a kilogram. That includes a 23% variable order sharemilking model and we have used the current Fonterrra forecast of $6/kg MS payout. In the autumn calving scenarios FWE increase by 35 cents to about $3.95 to $4.05 a kilogram. This accounts for the extra spending on track maintenance, animal heath, empty rates, depreciation on additional infrastructure and additional feed costs.

Opinion

20 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

EDITORIAL

Forgive, work with critics

Neal Wallace

LETTERS

More letters P21

Shambles a symptom of issues ALAN Emerson is bang on the money with his analysis of the ag training debacle (FW 23.1.17). Surely the key plank in achieving the Government’s grand plan of doubling the value of agricultural exports by 2025 (remember that?) is to make sure the identified 50,000 extra skilled workers required have access to high-quality education and training. The shambles that is the Telford situation is merely a symptom of the wider issues. While Lincoln has not covered itself in glory in this instance its own future has been up in the air with talk of mergers with Canterbury or downsizing in favour of Massey.

Overlay this with AgResearch’s never-ending restructuring, which has seen the highly valued Invermay decimated and the picture is one of dysfunction. What is clear is an overarching strategy and some leadership is desperately required. Local Clutha Southland MP Todd Barclay has been quoted as having “meetings” to retrieve the Telford situation. I would suggest that he and his fellow National Party rural MPs would be better served marching down the hallway and banging on the door of new Tertiary Education Minister Paul Goldsmith and Finance Minister Steven Joyce and demanding they put their money where their mouth is regarding support for agricultural sector growth.

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Lesson learnt? WILL we farmers learn some wisdom from the Richmond/ New Zealand Meat Board/ PPCS/Silver Fern Farms debacle? We should, we have paid for it and are still paying. It has cost our family farm plenty and we are still paying for trucking stock long distances because we lost confidence in an unproven plan. When will co-operative boards and their management survey their owners in an indicative question and answer letter for major moves before they start? Who do they think they are

by being so secretive in such a small country for a long-term gain? Paying high-level executives and “independent” directors swallowing marketing dogma is risk-free to them who are margin operators and pay themselves first. It is an inside business operating on a wink and a nod. Prove me wrong please. Some of the business margins are excessive for a wide range of excuses but as long as happy faces and social stories are told, all will be fine. The media nowadays is more social than investigative reporting giving facts to us and raising the hard questions. More debt will get it right next time, as if social and government support are endless.

Continued next page

Letterof theWeek

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

It is election year and we are watching.

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INALLY, some balance has been introduced to the water quality debate. Until now farmers, specifically dairy farmers, have been cast as the villains degrading our waterways with the predominantly urban critics and media largely ignoring the state of rivers and the coastline in our main centres. But last month it was revealed Auckland beaches have been closed and urban creeks degraded by millions of litres of raw sewage overflowing the city’s strained drainage system and ending up in the harbour each year. It will take billions of dollars and 20 years to fix but will still not stop all the waste reaching the harbour. This is not an issue peculiar to Auckland. Similarly, it appears the contamination of Havelock North’s water supply was caused by sheep faeces and an unprotected bore head and not dairy cows as was widely touted. While these revelations will not surprise farmers, this is an opportunity for them to show leadership, to put aside the constant criticism they have endured about their impact on waterways and their largely ignored efforts to address those issues. This is a chance for farmers to lead the debate, to say water degradation is a New Zealand issue. We need to stop the blame game and address the issue as one, not as a rural or urban community. Farmers need to look beyond those most voracious farm critics, Massey University fresh water ecologist Mike Joy and Fish and Game NZ and find community groups willing to tackle water quality problems rather than continue playing the blame game. Joy’s credibility has justifiably been questioned by calls to stop farming cattle, his claims of $15 billion to clean up waterways and saying dams were not a solution for drought. Constant attacks by Joy and Fish and Game have damaged their relationship with farmers but hopefully farmers will forgive and forget and everyone will get on and solve this most pressing problem.

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Rapid reactions Farm course gets NZQA tick A programme designed to engage primary and secondary school students in farming can now be used to gain NCEA credits.

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

Murray Pearce So long as the goal is a career in farming and not to fill the role of labour units for feed pads. Real farming is the future of sustainable land use in NZ. We need hands-on engagement.

Water talks prove fruitless A recent meeting between Irrigation New Zealand and Greenpeace failed to resolve differences because the environmental group needs a polarising issue to preserve its Auckland funding base, Irrigation chief executive Andrew Curtis says. Lyn Berry So the $5 billion farmers have spent in the last 5yrs to improve/upgrade/ fence water ways and plant them out accounts for nothing. So it’s do as I say not do as I do for people north of the Bombays. Follow us: @NZFarmersWeekly

FW Poll Is winter milking a viable endeavour for NZ farmers? Yes No bit.ly/FWpolls Last week’s poll:Do you think NZ people are lazy and don’t want to work? Yes 0% No 100%

WELL-HEELED: Alice and Patrick McCartie taking pet goats Coco and Black Beauty out to the back of the farm. Photo: Leonie Douglas

LETTERS Maybe we have just stopped reading the endless free giveaways after 25 years of “infoganda”. Maybe there is a wolf in sheep’s clothing in there. Today, more than ever, we are what we read and we read what we are. Without these hard questions we failed. Without the written opportunity, we failed. Chairmen who want to win at all costs, do exactly that. It not only costs the owners money but it costs us choice too. An executive and director

risking their own money must be more credible surely, even if they move more slowly. Incremental gains of steady mediocrity beat spasmodic brilliance. Ask the tortoise. We sheep farmers have options, luckily. Spend less and continue to donate, reduce the breeding flock further, sell live shipments and import our own goods without excess margins. Thought without emotion is far more effective and on this farm we still have a lot of fun while spending less. An infamous leader instructs his

team to be cohesive, collaborate, high-energy and have high impact. I will let you guess who. Experience comes from losing other people’s money. Wisdom comes from losing your own and the recent discussion about that meat merger history must have a list of lessons. Write them on the wall somewhere like we do for those who die for their country. We may not bleed but we certainly feel the pain. Rick Cameron Milton

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Seeing red? WE may believe that President Donald Trump is “odd” or even a little bit insane. However, he was able to see the Trans Pacific Partnership would be harmful to any nation signing it, even the mighty United States. So, where does that place the ability of our politicians here? So, now, it is claimed, we should look to China. Does that mean we will allow their Communist Party the right to determine how we set up contracts here and to set up a tribunal to decide on any

disputes, with no right of appeal against its findings? John G Rawson Whangarei

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

Opinion

22 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Give dairy sector cheap electricity Alternative View

Alan Emerson

I’VE been in Timaru with the perfect daughter, son-in-law and grandchildren. It’s a great place with a really good provincial newspaper. I was pretty relaxed until I read on the front page the story Activists protest coal use. My immediate thought was that they’re always protesting about something but why coal use? Couldn’t they just revert to the tried and true Flat Earth Society? Alas no, here was this group of “protesters” chained to the fence of Fonterra’s Clandeboye dairy factory protesting at the diary cooperative’s use of coal. The claim was that Fonterra was the country’s second-largest user of coal and its use was increasing. They even have a name for the protest group, Coal Action Network Aotearoa. Surely they had something better to do. We even had “veteran protester” and former Green Party co-leader

Jeanette Fitzsimons there and I’d thought she was out to pasture. As I’ve said in this column before, who’d be a farmer? Having a calm, unemotive and factual look at the issue I came up with something quite different from that of the protesters. Our energy use is about 50% more non-renewable energy than renewable. The main non-renewable energy is oil and gas followed by coal. Coal provides a little over 20% of our non-renewable energy, a minor amount. In addition, the burning of coal does pollute but so does the burning of oil and gas. Given the far-lesser use of coal it would follow that the problem of burning coal in New Zealand is less than that for oil and gas. So where are the protests at the petrol tanks, the car yards and such? Also, the International Energy Agency tells me the use of coal is decreasing but China still burns 50% of the world’s coal. I’m surprised the Coal Action Network doesn’t have a tented village outside the Chinese Embassy. Further, the most coal burned in NZ is for power generation. I would certainly hope that the protesters from CANA disconnect

their microwaves and hair dryers while protesting outside the power generation companies. The second biggest use is for the production of cement, lime and plaster. Surely, that is a more important target for the protesters than Fonterra’s Clandeboye dairy plant but, hey, there aren’t any farms at the cement plant so why bother. Third on the list you have agriculture, which would include Fonterra. I researched the Clandeboye plant, which, unknown to me, had been operating since 1904. It has 865 staff, which would provide a considerable boost to the South Canterbury economy. Its annual production is 400,000 tonnes. The Clandeboye plant is innovative with a world-first, state-of-the-art mozzarella cheese making operation. In addition, the plant produces milk powder and cheese. In a world starved for protein it produces 21,500 tonnes each year. So, without the Clandeboye plant the South Canterbury economy would be in a far worse state. A starving world wouldn’t have 400,000 tonnes of highquality, safe food. It wouldn’t have world-first

PICKED ON: Why are there protestors at Clandeboye when there are none at petrol tanks and car yards.

mozzarella cheese making providing a niche product to the high-end gourmet markets. That’s what the Clandeboye plant is doing for the South Canterbury and NZ economies. Conversely, what are the protesters contributing to anything? In a word, zip. They are merely joining the masses of uninformed protesters slagging farmers and the agricultural sector while not letting a fact get in the way of a good story. Let’s look at the logic of using coal. Coal is obviously used because it is a cheaper energy source than electricity. You couldn’t have access to natural gas in the South Island but the issue is that natural gas, like coal, is non-renewable and a pollutant. The plant could use electricity but Fonterra’s role is to provide the best returns for its shareholders and coal helps it achieve that.

There is another option. The Bluff aluminium smelter gets cheap power. On top of that it received a $30 million handout from the Government for precisely nothing. The dairy industry has been with us for over 150 years and will continue to be a vital cornerstone of the NZ economy. The smelter has been there less than 50 years and could leave at any time. The dairy industry is owned by kiwis, the smelter by the multinational Rio Tinto. Aluminium smelting provides every bit as much pollution as burning coal yet we allow it to use 13% of our electricity. The Clandeboye plant employs more people than the smelter. With cheap power Fonterra wouldn’t burn coal.

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

Fire reform will increase insurance costs Murray Dudfield THE following are a few of my thoughts on the Government Administration Select Committee Report on the Fire and Emergency New Zealand Bill. It appears to contain only a number of minor changes to the original Bill. In general, if the Government is unyielding in its determination to nationalise the fire services in this country then the Bill will meet this determination at a hefty financial cost and an increase in centralised Government bureaucracy. What has not been stated clearly in this whole debate is that this merger of the urban fire protection with the management of fire on the forest and rural landscape will bring with it an increased cost to New Zealanders, not the reduction in annual costs which has been stated to Parliament by Internal Affairs Minister Peter Dunne (EGI-16MIN-0064 refers). From overseas experience, eg Australia and Greece, where similar changes have taken place between the 1950s and the late 1990s, costs have escalated. An example of a number of the key arguments for the uninformed New Zealanders with this Bill are the following: • The current rural fire management structure in NZ is a decentralised one that has

supported the needs of forest and rural landowners for many decades. • It provides for a regulatory public-private partnership between local forest and rural landowners and local government. For many years this decentralised structure has allowed for the effective management of fire in the NZ landscape and has permitted inkind contribution to become an important underwriting factor. The decentralised structure has seen losses from wildfires trending downwards over the past 20 years with the overall annual operating costs being assessed at similar level over this same period at about $46 million a year (BERL 2009). A reduction in annual costs of $47m from FY2021/22 (indicated as a key driver by Dunne for merging urban and rural fire) will not happen. In fact, from experience overseas, the cost will be greater than that which has been stated by Dunne in his Cabinet paper (EGI-16-MIN-0064 refers). From overseas rural fire experience, eg Australia, Europe, etc., where the accountability has been centralised, the annual cost of maintaining such a centralised control structure has seen large annual increases in operating costs.

For example, the annual cost for fire services over private lands in the Australian states of Victoria and New South Wales (subsequent to their centralisation of rural fire services) has, for the past decade, risen by 25% to 27% a year. Using this awareness from other countries the Fire and Emergency NZ Bill will see ongoing increases in the costs to New Zealanders from a centralised one fire service structure and will also provide a reduced service to forest and rural stakeholders. Why would you support a merger between urban and rural fire services with a transition cost of $303m over four years (EGI-16MIN-0064 refers) and then require a further $100m plus for future years? It is incomprehensive that Dunne has put his name to a proposal that brings to bear a significant increase in cost exposure to contracts of fire insurance policyholders. The Bill requires these policyholders to fund the cost of fire services to protect assets and institutions that will not contribute financially to fire services. They include: • Uninsured properties including government departments; • Private forests and rural land; • Unregistered vehicles;

• • • •

Medical emergencies; Civil Defence activities; Animal rescues; Vegetation wildfire suppression costs and; • Spills of hazardous materials. Non-fire incidents now account for a large and growing part of urban fire services’ activities yet, under this Bill, these same services will remain principally funded through a fire insurance levy on buildings and vehicle assets. It is inequitable that the $115.2m of new funding required by FENZ for the FY2017-18 (Fire Commission 2016) that this will be principally funded from fire insurance on buildings and vehicles. The impact of the proposed 31.1% increase in fire service levy in the FY2017-18 will produce a flow-on cost to all insurance policyholders. Some of those who need to avoid this significant increase might well consider it too expensive and decide to take a risk and not insure. This will mean a corresponding increase in costs to those who continue to rely on fire insurance to protect their assets. A further consequence of an increase in fire service levy on fire insurance on buildings is the likelihood that in future nearly 50% of the annual cost of

building insurance premiums will involve government tax, ie GST, Earthquake and War Damage levy, Fire Service Levy. Is this a fair and reasonable approach to tax those who hold contracts of fire insurance on buildings and vehicles to fund the cost of fire services for all New Zealanders? A further serious consequence of this Bill is that volunteer firefighters will be required to attend extended rural wildfire incidents away from their communities. This could involve days away from their employers and could place consequences on their employment in the community they have volunteered to protect from unwanted fires. The retention of skilled volunteer firefighters will become a key issue with the changes proposed by this Bill. • Until retirement Dudfield was the national rural fire officer from 1990 to 2014. In 2015 he was made an Officer of the NZ Order of Merit. In 2014 he received a United Nations FAO certificate of excellence for exemplary service to international co-operation in wildfire management. He was a board member of the Australia Bushfire Co-operative Research Centre from 2007 to 2014 and is a board member of the Otago Rural Fire Authority.

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Trump’s trade winds blow cold IT HASN’T taken long for the hawkish new United States President Donald Trump to throw several cats among the trade pigeons or doves if you prefer. He wasted no time in signing an executive order to withdraw from the Trans Pacific Partnership, over which 12 countries had slaved for seven years, but now the participant that probably caused the most delay has acted to ensure it won’t happen at all. Japanese Prime Minister Shinzo Abe wants to convince Trump to change his mind while Australia’s Malcolm Turnbull thinks it’s worth going for a TPP minus one. Our new PM Bill English is more realistic than Abe and will probably look closely at the other option.

The most surprising aspect of Trump’s presidency, apart from his election in the first place, is his resemblance to a mediaeval monarch or, given his wall-building ambitions, a Chinese emperor But lurking in the shadows is China, which will be very eager to take the prime position in Asia Pacific trade now the US has abdicated its role. The Regional Comprehensive Economic Partnership (RCEP) involving the 10 ASEAN members and six others including China, India and Japan offers a readymade alternative. TPP would have represented 40% of global GDP compared with RCEP’s 24% but the latter group covers 46% of the world’s

Meaty Matters

Allan Barber

population with greater potential for economic and trade growth. However, the RCEP negotiations have not addressed protection of labour, human rights and the environment, which were part of TPP. Nor do the disputes resolution procedures, which were such a contentious aspect of TPP, form part of RCEP. Considering the violent antiTPP protests that might not necessarily be a bad thing though, no doubt, the lack of labour protection and human rights will provoke objections if an RCEP agreement was about to be signed. To me, the most surprising aspect of Trump’s presidency, apart from his election in the first place, is his resemblance to a mediaeval monarch or, given his wall-building ambitions, a Chinese emperor from the Quin and Han dynasties who built the wall to protect trade on the Silk Road. He also seems to want to return to a simpler post-WWII world when separate countries traded real goods with each other without the troublesome confusion of design, assembly and fulfilment across borders to take advantage of differing skills, labour costs and tax structures. He also wants to make America great again by returning it to the manufacture of heavily industrialised products requiring a large domestic workforce and raw materials without depending

EXPLOSIVE: The fallout will be enormous if Donald Trump decided to protect United States farmers by ripping up World Trade Organisation rules.

on computerisation for design and manufacture. He also appears to ignore the irresistible movement of the world’s workforces away from manual labour. Trump’s view is of a much more one-dimensional world in which nations knew who their friends and enemies were and trading between them was a simple proposition. The frightening reality is, as president of the US, he can insist everybody else plays with his old steam engine instead of being prepared to play with their highspeed electric trains. New Zealand is faced with a choice between keeping its head down and praying nothing blows up, using logic and diplomacy to deal with an unpredictable child, or confronting him directly. I suspect diplomacy will be the chosen option. In the meantime, NZ has several trade challenges on its plate, all of which threaten established red meat access provisions with key trading partners. The largest product sector is beef into the US,

which is currently subject to a 213,000 tonnes quota under World Trade Organisation rules. Trump appears to have all types of imports in his sights and there is no guarantee he won’t decide to impose an import tariff on all red meat in contravention of WTO rules. Taking a complaint to the WTO would be a lengthy process, as shown by the slow resolution of the Indonesian import ban, and a favourable decision would not result in an immediate resumption of trade. Trump’s stated preference is for bilateral trade deals with a whole range of “partners”, which is a euphemistic term for co-signatory, because of the intention to achieve an unequal outcome that benefits only the US. If, in the opinion of the stronger party, the partner fails to live up to American demands, 30 days’ notice of termination will be served. Free trade agreements are supposed to benefit both parties equally but this fact seems to have escaped the new president.

Still, there will be some comfort from the time required to negotiate any sort of FTA, which means these will be impossible to conclude within the term of a Trump presidency. Under WTO rules, NZ’s red meat and associated co-products to the US incur tariffs which amounted to $13 million in 2014, equivalent to less than 1% of $1.543 billion of total exports. Most of this was frozen beef on which the maximum tariff rate of 26.4% would otherwise apply, totalling more than $300 million. The stakes for this country are very high. If Trump should decide to “protect” American farmers by ripping up WTO rules, the fallout would be enormous for all countries including the US but there would be an unholy mess while it was sorted out.

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

Farmers need tools to identify desirable qualities From the Ridge

Steve Wyn-Harris

I WENT to the launch of some new information on the ability to select sheep for meat quality. Admittedly, if that was how the invitation was framed I might not have travelled the hour to attend but it was the prospect of fine food so I was more incentivised to disprove the old adage that there is no such thing as a free lunch. The FarmIQ programme has garnered some scepticism over time. A big problem for a programme like this is that with large-scale data collection and across year analysing, it takes quite some time for results to be able to be turned

into demonstrable opportunities. I was surprised to see this programme is now in its seventh year so it has been going for quite some time. One facet of Silver Fern Farms’ FarmIQ has been its partnership with Landcorp’s Focus Genetics and others on improving meat quality. There is no point presenting poor quality meat to our consumers but to some extent our breeding programmes have been doing just that. It seems our focus on selecting for fast growth and high lean meat yield might adversely affect aspects of meat eating quality in sheep and other species for that matter. If we want to be at the high end of the meat market we must be able to consistently offer good consumer eating experiences. Tenderness, marbling, pH and meat colour all affect meat quality and this programme has shown some of these things are quite heritable meaning

breeding programmes can make good progress to improve meat quality. Tenderness and marbling, for example, are very heritable at 30% compared to weaning weight at 15% and number of lambs born at 9%.

It seems our focus on selecting for fast growth and high lean meat yield might adversely affect aspects of meat eating quality.

We know the progress industry has made on these two traits in recent decades. Colour is 17% and pH has 9% heritability. The latter has low variability in trait measurement and combined with its lower

heritability means genetic gains will be slow but good variability in the other traits means gains could be quite promising. But for breeders to be able to make these selection decisions on traits that require killing the animal to see how tasty it is (“That was the best meat I’ve ever eaten. I must breed from this animal ... damn”) then different tools need to be developed. And as I learned over my delicious lamb rack balanced with an excellent Hawke’s Bay wine, this is where this LambEQ (eating quality) programme funded by the Primary Growth Partnership has arrived. The programme has allowed sheep to be genotyped for meat quality aspects and offers genomic predictions so terminal breeders can select from young animals based on their DNA rather than waiting several years for a progeny test. The primary selection vehicle is an SNP chip that provides genetic information to the stud breeder

to make those selection decisions earlier. So, the sheep in this training population can now not only be selected on growth and meat yield but also ensuring meat quality is improved. The technology in time will roll out to other terminal breeds and possibly be incorporated into maternal breeding programmes as well to augment the terminal genetics. The challenge for the processing industry is to develop the tools so it can give growers hippocket feedback so we seek out the genetics that provide these qualities, thus making sure that as an industry we do consistently provide excellent consumer eating experiences to command those top premiums we require to remain in business.

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

World

24 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Trade deal with EU to be win-win Colin Ley BOTH sides would win if a free-trade agreement between New Zealand and the European Union went ahead, the Primary Industries Ministry says. Responding to objections from Polish dairy farmers a ministry spokesman said such a deal would create a win-win environment for the dairy sectors of both sides. “We are aware that there are some concerns from agriculture producers in some EU member states that a potential increase in NZ exports under an FTA will impact European markets. “But this would not be the case,” he said. Arguing that NZ’s volume of production amounted to only a small percentage of world production, he said NZ produced just 3% of the world’s dairy products, 1% of world beef and 6% of global sheep meat. “We firmly believe that an EU-NZ FTA will create a win-win environment for both our dairy industries to make the most of the burgeoning demand on the world market, especially in Asia.

“We will get much further working together, than alone. “In fact, we can already point to a number of partnerships in the agriculture sector, notably in dairy and in horticulture. A high-quality FTA can further enhance these partnerships.” The MPI response came after a move by Polish farmers to exclude dairy products from EU-NZ free trade talks, with the European Commission saying several member states shared Poland’s concerns and had asked the commission to take a cautious approach in any future negotiation. “We are not aware which member states may or may not support Poland, nor the details of Poland’s argument,” he said. “The EU and NZ have been clear in their aim to begin negotiations for an FTA in 2017 and many member states have also expressed this to NZ ministers and officials.” The spokesman said Trade Minister Todd McClay visited Warsaw in November to discuss the agreement with the Polish government as part of his ongoing

VISITOR: Trade Minister Todd McClay visited Warsaw in November to discuss a possible EU free-trade agreement.

engagement with EU Member States. A senior official from the Ministry of Foreign Affairs and Trade had been to Warsaw last February for a range of meetings with counterparts regarding a deal. Poland had 759,651 dairy cows in 20,062 herds on December 31, 2015. The average milk yield at the time was 7771kg. The Polish dairy industry accounted for 7.2% of EU milk production in 2015 according to the latest Eurostat figures, placing the country fifth in terms of EU importance behind Germany, France, Britain and the Netherlands.

Brits told trade barriers are not a solution BRITISH dairy farmers have been warned about the potential impact of protectionist policies post-Brexit at the Semex conference in Glasgow. Economist Dr Sean Rickard said some dairy farmers believed the industry would be better off with protectionism because of the trade deficit. But he said despite Brexit, the United Kingdom was now part of a global dairy industry. “Trade barriers are not a solution. “I can think of no country which has succeeded in becoming internationally competitive behind tariff barriers,” Rickard said. “If you want to succeed in that world we have to focus on making sure products we produce have something distinctive to the UK and to the middle classes worldwide.” He wondered whether the UK would actually ever leave the European Union. Over the short-term, he suggested there was the option of a transitional deal similar to Norway within the European Economic Area or defaulting to World Trade Organisation terms. “Government policy over the long-term is to negotiate preferential trade agreements,” he said. But that would not happen before 2020. America’s new President Donald Trump had signalled he would make a UK/United States trade deal a priority. Rickard said if British farmers

DOESN’T WORK: Economist Dr Sean Rickard has told British farmers he knows of no country that has become internationally competitive from behind trade barriers.

thought Brexit would get rid of regulations they were “living in cloud cuckoo land”. Fonterra’s EU, Russia and Middle East trade strategy manager Francis Reid said New Zealand’s experience of using high tariffs had showed pulling up the drawbridges on free trade was the road to ruin. “A good Brexit would help stop the rise of protectionism,” he said. Arla UK managing director Tomas Pietrangeli said NZ was an example of what could

happen if trade barriers were introduced. “There is a lot of foreign investment in the UK,” he said. “If we were to see a drastic short term change, we would see food inflation.” He added the UK would not instantly be able to fill the trade deficit and would risk consumers moving to alternatives. But Farming Minister George Eustic said it would be easier than most people imagined to put together “some kind of access to the single market”. “The UK is a big import market, an incredibly important market to the EU. “One of the failings of the remain campaign was it misjudged the negotiating hand we have.” Eustice believed he had been right to campaign for Brexit before the EU referendum. “I believe very strongly it is right for the country and agricultural industry,” he said. He also highlighted the need for more transparency in the dairy supply chain. “For supply chain fairness, we need to look if we can formalise things like producer organisations so suppliers have a role in the food chain.” He also moved to reassure farmers concerned about access to European labour the UK would be able to bring in the people it needed. “It will be up to us to design policies right for us,” he said. UK Farmers Guardian

STIRRING: British celebrities Jamie Oliver, left, and Jimmy Doherty have stirred controversy by championing free-range milk.

Free range milk claims cause row DAIRY farmers have hit back at claims by British celebrities Jimmy Doherty and Jamie Oliver about the superiority of free-range milk. A 10-minute segment on their Friday Night Feast programme sought to promote the merits of pasture-based grazing systems for dairy herds to United Kingdom consumers while questioning the welfare and health of animals in housed systems. Although general sentiment among the public had been positive to a free-range “pasture promise”, the dairy industry was divided over claims made by Suffolk farmer and show host Doherty and celebrity chef Oliver. The show aired unsubstantiated claims as to the superior physical and mental health of mainly grazed herds as well as claiming the milk tasted better. Many Twitter users were left with a negative perception of housed dairy systems, categorising them alongside battery hens. The show visited only one farm that was free-range compliant in sunny, summer weather with the sole depiction of a housed herd being a small, dark photo of a cow in a stall. Many industry figures reacted with anguish towards the misinformation being spread and the divisive nature of pitching one system of dairy farming against another. The 4 programme, which ran at 8pm on January 20, followed an article in The Times on January 17, which presented the free-range milk proposition as “divided” and “confusing”. In an open letter in response to The Times story, National Farmers Union chairman Michael Oakes emphasised welfare standards and good management were not size or system specific. “A healthy, happy animal is ultimately more productive and as

dairy farmers we do everything we can to ensure this. “British dairy farmers care about the comfort of their animals and the design of cattle housing is carefully considered for their needs. “Cows should be able to exhibit their natural behaviour, which is why Red Tractor has specific standards for dairy housing, including an area for loafing,” Oakes said. “Nearly all British dairy farms are Red Tractor assured, which means that they are inspected against animal health and welfare, environmental and food safety standards.” Agriculture worldwide had become more intensive in recent decades as farming sought to strike a balance between sustainable farming and the practicalities of feeding a growing population. Free-Range Dairy founder Neil Darwent said “Our website crashed when the show ended. “We’ve had non-stop phone calls, tweets and people looking at our map to see where they can get hold of the milk – I haven’t been getting to sleep before midnight answering them all. “We now have talks with three national retailers over stocking our milk.” And public demand had also swelled for a new free-range offering, Enjoy Milk, its founder and head of the Free-Range Milk Marketing Board, Nick Hiscox, said. “Consumers are sending the message to processors and retailers that they want the choice of a free-range alternative to the current offering. “We’ve seen a huge upsurge in interest from members of the public, sending emails, asking questions and wanting to know where they can buy the stuff.” UK Farmers Weekly

Real Estate

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

Volatility holds farm sales back Alan Williams alan.williams@nzx.com

We think the volatility in market returns is causing some vendors to question the timing of when to put their properties on the market and that a significant number of farms are for sale at the right price.

OOD quality farms across all sectors continue to sell very well but the market doesn’t have a good guide on the second tier market because of lower sales activity. “There’s not many second tier properties being sold to allow us to test where that part of the market is,” Real Estate Institute rural spokesman Brian Peacocke said. “We think the volatility in market returns is causing some vendors to question the timing of when to put their properties on the market and that a significant number of farms are for sale at the right price.” Some vendors were holding out for a price ahead of the marketplace and buyers were increasingly cautious, with indications parties were entrenched at a 5% to 10% price gap. Compliance issues, including “healthy rivers” rules in some areas, were a factor, with buyers very careful with due diligence. There appeared to be a good number of dairy farms available in Taranaki and Southland. Taranaki had had good turnover at prices ranging from $43,000/ha to $59,000/ha, Peacocke said. There had been one “exceptional sale of an exceptional farm”, a small 52ha dairy farm which sold at $86,500/ha. Finishing farms were in demand with about 10 of them sold in Southland in the three months to the end of December and

Brian Peacocke Real Estate Institute

as being more relevant for the market. The market was stronger in the December three-month period compared to the three months to November 30, with the median price up 5.4% and the All-farm index up nearly 9%. For dairy farms, the median price slipped to $46,397/ha from $47,385/ha in November but was 17% up on the December 2015 figure of $39,690. On the institute’s Dairy Farm Price Index, the lift was 9% above

November levels but only 1.9% up on the December 2015 figure. As was the case in previous seasons, the December figures reflected solid activity during the spring, with an easing in the month of December, in part because of the shorter pre-Christmas selling period, Peacocke said. Nearly all regions had more sales than in the November threemonth period but only seven had more sales than in the December 2015 equivalent period. Otago had the biggest increase, followed by Wellington then Canterbury. As usual, grazing properties had the biggest share of sales in the December three-months, at 31% of the total, followed by finishing farms at 27%, dairy farms at 14% and horticulture blocks at 12%. The value of grazing farms was down 32% on year-earlier figures, to $11,290/ha from $16,656/ha.

consented to milk 700 cows in a one-year-old 54-bail rotary shed. That farm has three dwellings. Pleasant Creek was split in to 42 paddocks milking 980 cows and had five dwellings while Kauroo Flats was 225ha and also split in to 32 paddocks milking 980 cows in an automated 70-bail rotary shed. It has three dwellings. Incholme Farm covers 197ha split in to 29 paddocks milking 720 cows in a 46-aside herringbone shed. It had three dwellings. About 80% of the cows could be

wintered onfarm. Snook said the portfolio could be bought as one, a combination of farms or as individual properties. The three adjacent Kakanui Valley farms could be bought together and provided an opportunity for staff and asset management efficiencies. He said there had been inquiry from large parties interested in buying it as one portfolio and from others interested in the individual parts.

SOLD: This 656ha breeding and finishing farm in the Waikari Valley sold in spring for more than $1000/su but demand is not being met because of a shortage of such properties on the market

consistent sales in Canterbury and Otago. However, with dairying having expanded to take over many finishing farms in recent years, there was a general shortage of finishing farms in several parts of the country to meet demand. Though down slightly from November, the median price for finishing farms had jumped 24% year-to-year, to $29,061/ha from $23,489. Institute figures showed there were 1742 farms sold during the

year ended December 31, just over 2% fewer than a year earlier. Dairy farm sales fell by 28% and grazing farm sales by 15%. Year-on-year the median price for farm sales fell to $27,774 from $28,120 but on the institute’s All-farm Price Index there was a 4% rise for the year. The index adjusted for differences in farm size, location and farming type but the median measure did not. The difference was quite technical, Peacocke said. He focused on the Index measure

Borst dairy empire for sale Neal Wallace neal.wallace@nzx.com A BIG, privately owned, multi-farm dairy business in North Otago is for sale. The Oamaru based Borst Holdings put its four irrigated farms on the market because of a change in personal circumstances. Bayleys Real Estate agent Kurt Snook said an offering of this size and quality was not often available. “The farms are beautifully kept and beautiful tidy.” Combined, the farms covered 992ha and the 3380 cows produced 1,418,000kg of milksolids a year returning about $8.5 million. Three of the farms were in the

GOING: This Kauroo Flats farm is one of four being sold by Borst Holdings.

Kakanui Valley, 15km southwest of Oamaru with the fourth a 30-minute drive away near Otekaieke in the Waitaki Valley. May said the portfolio had been strategically built up over many years by the Borst family. All the farms were well maintained and serviced by quality infrastructure such as housing, calf-rearing sheds and shelters, lock-up barns, effluent pump sheds, cattle yards and stock races. Water for irrigation was sourced

from springs or consented takes from the Kakanui River and its tributaries or the Otekaieke River. The three Kakanui Valley properties had supply contracts to Fonterra and were in immediate proximity to each other. They were the 321ha Pleasant Creek, Kauroo Flats Farm that covered 225ha and Incholme Farm that covered 197ha. Kinloch Farm near Otekaieke had a supply contract with Oceania Dairy. It was a 247ha property split into 32 paddocks

YOUR NEXT MOVE MADE POSSIBLE

TAKE THE NEXT STEP AND EXPLORE NEW HORIZONS WITH COUNTRY MAGAZINE. If it’s time to sell up and take the next step, you need to get the best return on investment for your rural property. As New Zealand’s leading rural real estate brand with a nationwide specialist sales team, Bayleys can give your property the attention it quite rightly deserves. Bayleys Country magazine is a verified way to bring sellers and purchasers of rural property together. Coupled with Bayleys’ local contacts, influential databases and proven ability to reach overseas buyers, Country magazine will allow you to make your next move with confidence.

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Bookings for the autumn edition are closing soon. To learn more about Country magazine, call your local Bayleys office on 0800 BAYLEYS or visit www.bayleys.co.nz/country. Licensed under the REA Act 2008

A WORLD OF POSSIBILITIES

GAME ON

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

CLUB TOGETHER

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

127 FEATURING

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

DAIRY & BEEF - A GREAT COMBINATION

Hikurangi, Whangarei

The option of purchasing two outstanding quality and top producing adjoining dairy and beef farms. Centrally located between the city and the sea in the sought after farming locations of Opuawhanga and Marua (Hikurangi East). Byles Road Dairy Farm: Comprised of 260.947ha (more or less) this attractive and well managed dairy unit has a two year average production of 153,500kgMS from approximately 400 cows. The property boasts ample infrastructure including a 20 ASHB cowshed with Alfa Laval milking plant, feed and calving pads, implement sheds and more. The property is complemented by a stunning 342m² contemporary home. Doidge Road Beef Farm: 278.98ha (more or less) comprising some alluvial flats with the balance higher grazing country. Includes 30ha of easy to moderate dairying land and features very good infrastructure including two homes. Highly productive, carries stock well and has good access. Both properties have an excellent fertiliser history and ample water sources.

For Sale View by appointment www.bayleys.co.nz/1050020

Stewart Ruddell M 027 273 6860 B 0800 80 20 40 stewart.ruddell@bayleys.co.nz MACKYS REAL ESTATE LIMITED, BAYLEYS LICENSED UNDER THE REA ACT 2008.

RE CE SAIVER LE SH

Seldom does such an opportunity come to market - two farms, many options, make your move!

RIVERBEND DAIRY FARMS

102 Casey Road, Whatawhata

This 142 hectare dairy unit, located near Whatawhata, is just a short drive from ’The Base’ and the Hamilton CBD. The contour is a mix of around 70 hectares of flats and the balance gentle rolling to some medium hill. The modern 36ASHB is centrally located with a concrete feed pad adjacent plus two large feed bunkers. A good race system fans in three directions to approximately 85 paddocks. The effluent system is a clay lined pond and is fed from both the dairy and feed pad. There is a pump and stirrer in the pond with 90mm underground piping to five hydrants and a travelling irrigator covering approximately 35 hectares. Water is sourced from two bores approximately 36 metres deep with submersibles. Support buildings include a 4 bay half round barn, 4 bay gable shed, a 30mx20m fully enclosed shed with lockable workshop plus an old stables for storage. The main dwelling is a refurbished three bedroom home with master ensuite, open plan living, an outside room and an in-ground swimming pool. The second dwelling also has three bedrooms. This very well set up dairy unit is close to Hamilton yet enjoys the privacy of a no exit road and great balance of contour.

Auction 11am,

Open Days Tue 7, 14 & 21 Feb 12-1pm

Thurs 9 Mar 2017 (unless sold prior) 96 Ulster Street, Hamilton

View Tue 7, 14 & 21 Feb 12-1pm www.bayleys.co.nz/812434

Mike Fraser-Jones M 027 475 9680 B 07 834 3841 mike.fraserjones@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

www.bayleys.co.nz

MODEL DAIRY FARM

128 Mangamutu Road, Galatea

On offer is approximately 98ha in three titles, located in Galatea approximately 75km to both Whakatane and Rotorua. Flat contour provides the opportunity for production and ease of management currently milking 250 cows through a tidy 20 ASHB shed, three year average from the estimated 76ha milking platform is 133,000kg/MS. 8ha is located 1.5km away and has been milked on, however this is well suited for young stock and winter grazing. The milking platform is fully irrigated via Bosch type laterals with water consented from farm bore ensuring quality feed is available all season. Excellent improvements include two herd homes affording the ability to comfortably house 150 cows each for shelter, calving and feeding to suit your management; double bay roofed concrete bunker, substantial five bay shed and additional haybarns add further to this quality property. Accommodation is well provided via two good homes, the main is a spacious four bedroom home beautifully set at the front of the property with the second a very tidy three bedroom plus office with good shedding. Our vendors are retiring so stock and machinery are also available. Contact me now for a full information pack.

Tenders Close 4pm, Tues 7 Mar 2017 247 Cameron Road, Tauranga

View Wed 11am-12pm

www.bayleys.co.nz/2849525

Mark Spitz M 027 442 1295 B 07 579 0606 mark.spitz@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS LICENSED UNDER THE REA ACT 2008.

"TAUKOPU" LARGE HILL COUNTRY BREEDING UNIT (828 HECTARES)

Northern Rangitikei Centrally located on Zohs and Te Kapua Roads only 9 kilometres off SH1 at Mangaweka. Taukopu offers quality hill country soils suitable for intensive pastoral farming with a mixture of contours ranging from approximately 30 hectares of easy rolling with the balance medium hills and steeper faces. The property is very well fenced to 33 main paddocks with reliable water from spring fed dams and creeks. It consistently winters 4000 ewes and 1400 hoggets, plus 155 cows, 50 heifers and up to 125 steers. Improvements include a four bedroom villa, 3-bay implement shed, 4-stand woolshed with large covered yards and four sets of satellite yards, plus tidy cattle yards and new load out yards adjacent to the road. An adjacent 383 hectare property is now available for sale.

Deadline Private Treaty Offers Close 4pm, Thurs 9 Mar 2017 (unless sold prior) View by appointment www.bayleys.co.nz/3100051

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

www.bayleys.co.nz

SWING AN AXE OR FROM A TREE! Looking for a solid passive investment and/or somewhere to hide from the hustle and bustle of the citylife? Perfectly positioned at the end of a no exit road is this 79 hectare forestry property with

Summer Road, Matakohe, Northland

Wenzlick Road, Puhoi

HARBOURFRONT FARM & FISH!

Tenders Close 4pm,

Wake up to the gentle sounds of the sea lapping against the sandy

Wed 1 Mar 2017 41 Queen Street, Warkworth

shore, wood pigeons nestling overhead on a Puriri tree and cattle grazing on distant pastures, on this 227ha (561 acre) harbour front

multiple leisure activity and income stream opportunities.

View by appointment

grazing farm. Currently run as a beef grazing unit set in 3 titles,

This property is more than just a forest. It also offers up large blocks

www.bayleys.co.nz/1200364

infrastructure includes a woolshed, a large set of cattle yards, a

of non-covenanted native bush with further development

John Barnett

the forest, waterfalls, a designated building site plus all the peace

M 021 790 393 A/h 09 422 3303 john.barnett@bayleys.co.nz

and quiet that comes with such a private piece of paradise. Call in

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

opportunities, an extensive track system that weaves right through

hayshed and a reliable ("drought proof") all year round water supply.

Tenders Close 4pm, Thurs 2 Mar 2017 41 Queen Street, Warkworth

View by appointment

www.bayleys.co.nz/1200354

John Barnett

M 021 790 393 A/h 09 422 3303 been well subdivided to a high standard and is linked by an extensive john.barnett@bayleys.co.nz

The farm’s predominately flat to undulating to easy hill contour has

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

track network system. Down by the water’s edge is the farm’s cottage, a mere twenty paces from one of your three private sandy beaches. This is a quality farm, set on the edge of one of the world’s

your passive income grow! Well located, 5kms from historic Puhoi

largest natural harbours, with snapper, sea and sand within seconds

village, within 35 minutes of Aucklands CBD. Forestry investors,

of the doorstep. Don’t delay - (waterfront) properties of this calibre

hunters, land bankers or lifestylers. The instructions are to sell!

are a rarity, start your family legacy today.

NE W

LI ST IN G

the chainsaws crews, ride your horse, mountain (or motor) bike through the forest, build a hideaway, hunting lodge or simply watch

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

436 Haumea Road, Galatea

SELF CONTAINED HOROWHENUA DAIRY

385 Waikawa Beach Road, Manakau

Tenders Close 2pm,

This slightly over 216ha Dairy Unit is located at the southern end of

For Sale Offers invited by

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

utilised as the milking platform with the replacement stock and beef

View 12-1pm Wed 8 Feb

www.bayleys.co.nz/812339

Scott Macdonald

the Horowhenua District in a very handy location. Currently 125ha is weaners grazed on the balance. Production from the 300 cow herd was 96,518kg/MS on this fully self contained unit. The mixture of flats and rolling hills are well subdivided and are showing good levels

4pm, Thurs 30 Mar 2017 (unless sold prior)

View by appointment

www.bayleys.co.nz/3100053

Dean File M 021 544 364

of fertility on this well laid out property. Cows are run in a single herd A/h 06 362 7835 and milked through the 2011 built, 24 a-side herringbone cowshed. dean.file@bayleys.co.nz

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

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

Other farm improvements include the 280m², six bedroom home,

Lea File

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

Ben Hickson

implement sheds and haybarn. The opportunity exists for a new

M 027 305 5190 A/h 06 362 7835 lea.file@bayleys.co.nz

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

M 021 433 283 have Syntec in-line dispensers. There is a good range of support B 07 349 5366 buildings including three dwellings plus a two bedroom sleepout. This ben.hickson@bayleys.co.nz

is a very well set up unit in a recognised dairying district. Open Day Wed 8 Feb 12-1pm

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

owner to purchase this property as land and buildings only or with all livestock. Not many properties of this size come to the market in this

COAST TO COAST LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

location and we urge those looking for a sizeable holding, in a great location, to enquire today.

www.bayleys.co.nz

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – February 6, 2017

NE W

LI ST IN G

LOWER VALLEY DAIRY UNIT

271-354 Kumuiti Road, Fordell

IT’S ALL HERE

Nestled in this amazing valley is a very well set up and fully self

For Sale

184 South Road No 2 is the ideal dairy farm. Currently milking 400

contained dairy unit comprised of just over 183ha held in a number of titles. The genuine low production cost property has been very well

Offers invited by

4pm, Thurs 23 Mar 2017 (unless sold prior)

plus cows producing 160,000kgMS. This 230 hectare (more or less) farm is in superb order with excellent amenities including two homes,

laid out with very good fences and tracks to subdivide the milking

View by Appointment

dairy shed featuring 36 aside with an in-shed feeding system, herd

platform of 129 hectares. The additional land is well utilised for

www.bayleys.co.nz/3100052

home, a number of implement sheds, calf rearing sheds, high quality

Dean File

grazing the replacement stock, with all livestock wintered on farm

lane system and an up to date effluent system consented until

Eketahuna

Tenders Close View by appointment

www.bayleys.co.nz/3150406

Lindsay Watts

lease land. Supporting infrastructure is of a very good standard, with

M 021 544 364 A/h 06 210 2185 dean.file@bayleys.co.nz

Masterton in the summer safe south Tararua district 10 minutes

Rob Deal

a feature being the 2015 built, 40 bale rotary cowshed. This

Andrew Bonnor

from Eketahuna.

impressive shed is well set up for one person with a high quality Tru

M 027 941 7630 A/h 06 323 0563 andrew.bonnor@bayleys.co.nz

If you are looking for a low cost working operation with top

M 027 241 4775 rob.deal@bayleys.co.nz

each season, with the assistance of an adjoining just over 16ha of

Test Milk Hub automated system to assist in the milking and management of the 400 cow herd with a three year average

COAST TO COAST LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

4pm,

Tues 28 Feb 2017 (unless sold prior)

2040. Flat and rolling contour, only 20 minutes north east of

M 027 246 2542 lindsay.watts@bayleys.co.nz

infrastructure in what is considered to be one of the safer farming

COAST TO COAST LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008.

environments in the country, then look no further.

production of 173,271kg/MS. Offers Closing: 4pm, Thurs 23 Mar 2017 (unless sold prior)

All companies within this composite are Members of Bayleys Realty Group

FOR LEASE - SCALE AND LOCATION

Halkett

Hayes Road

Tenders Close

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

Thurs 16 Feb 2017

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

1pm,

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

Dean Pugh

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

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

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

Mark Clyne

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

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

of the lease and which will cover approximately 214ha on

Options exist to lease the whole property or one of two distinct blocks, each with its own irrigation supply. Act quickly - this district is renowned for its livestock and arable production

www.bayleys.co.nz

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

farmersweekly.co.nz/realestate

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

www.bayleys.co.nz

Real Estate

THE NEW ZEALAND FARMERS WEEKLY â&#x20AC;&#x201C; February 6, 2017

farmersweekly.co.nz/realestate 0800 85 25 80

Accelerating success.

Reach more people - better results faster.

colliers.co.nz

Accelerating success.

Reach more people - better results faster.

Infrastructure

- Certified organic farm - 48ha with approx. 30ha of quality flats, balance of steeper land running down to Maraetotara Stream - Central lane-way access across the farm - Fully fenced into 12 paddocks with conventional and electric fencing - Most of the flats are irrigated under K-line irrigation - Infrastructure includes woolshed, covered yards, implement shed/hay barn and pump sheds - 1950s 3 bedroom family home plus sleep-out/office and double garage - Income derived from multiple sources including the sale of organic hay, lease of paddocks, grazing of organic dairy calves and heifers, and trading livestock

colliers.co.nz

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – February 6, 2017

275 Pukehina Beach Road, Pukehina COASTAL PROPERTY UTILISED AS A DAIRY FARM Flat contour 37 hectare block of prime dairy, grazing or cropping land, won’t be on the market for long. Currently incorporated within the neighbouring dairy farm (also for sale) where excellent fences and races have been established to run as one large dairy unit.

Tender CLOSES: 4:00pm, Friday 3 March 2017 (unless sold prior) View Wednesday, February 8 11:00-11:45am Web ID: rwpapamoa.co.nz/PPS22622

This property complements the neighbouring lessee’s farm; however, it also offers great grazing/ cropping options, plus lifestyle possibilities, all of this in a top location for future growth.

Janelle Taft 021 514 844 janelle.taft@raywhite.com Papamoa Sales Office 07 542 0501

LK0085896©

This property has a three bedroom home, single garage, 2-bay shed and a decommissioned cowshed. The school bus route is at the front gate, Te Puke is a mere 25 kilometres away and with the new Eastern Link Highway, Tauranga is closer than ever before.

Realty Focus Ltd Licensed (REAA 2008)

New Zealand’s leading rural real estate company

Licenced under REAA 2008

10 Maunga Rd, Pukeatua, Waikato Tender

Entry Level Dairy Unit Or Run Off

Marlborough

A productive 95 ha - 234 acre (subject to survey) grass factory. Well appointed with extensive recent capital investment in the milking shed, effluent system plus two new calf sheds. Three year average production 87,000 kg. 40 ha K line irrigation, improved pasture and good fertiliser history. This property is an ideal smaller dairy unit but would equally be a perfect finishing block for a dryland breeding unit. There is also a comfortable four bedroom character villa on an elevated site. This property in the Rai Valley demands your inspection.

$2.15M

www.pggwre.co.nz ID: BLE24629

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

Plus GST (if any) Viewing by appointment E: jblakiston@pggwrightson.co.nz E: greg.lyons@pggwrightson.co.nz

While the mountain helps provide good rainfall within this district our vendors have a reliable two-bore water system, well reticulated around the farm. Recently milked on as an organic farm the soils and pasture reflect sustained, balanced and correct nutrient inputs over a lengthy period offering a good opportunity now to maximise your return on investment. The current owners have operated a very low cost, low input farming model with all young stock staying on the farm all year. Call Neville Kemp for further information and plan to be at the Open Days!

Joe Blakiston M 027 434 4069 Greg Lyons M 027 579 1233

pggwre.co.nz

Tender closes on Wednesday February 22nd 2017. All Tenders need to be delivered to Ray White Te Awamutu office, 223 Alexandra St, Te Awamutu, no later than 4pm. Highest or any Tender not necessarily accepted. Price will be plus GST (if any). (May not be sold prior). View Wednesday’s Feb 8th, 15th 11am - 1pm 10 Maunga Road, Pukeatua, Waikato Website & ID number: rwteawamutu.co.nz/ID#TEA22498 Contact Neville Kemp 027 271 9801 Office 07 871 9801 neville.kemp@raywhite.com

LK0085339

DAIRY – JUST THE RIGHT SIZE!

Rosetown Realty Ltd (Licensed REAA2008)

2 Gardiner Place, Pukehina A very rare opportunity has arisen to buy a 128 hectare coastal dairy farm. The flat contour property is in three titles (75 hectares, 38.3 hectares and 14.7 hectares), and leases a further 37 hectares from the neighbour (also for sale) which makes up part of the dairy platform. This high production farm currently milks 530 cows with an average production of 300,000 kg/ms over the past three years. The 40-aside dairy shed with 20 automatic cup removers is centrally located and is well supported with infrastructure including, a feed pad, two standoff pads, silage bunkers, 4-bay implement shed, hay barns, calf rearing sheds, commodity bin and more. The bulk of the supplements used are grown on a leased property, with an opportunity to renew this lease. This property has three, three bedroom dwellings, is close to local schools and Te Puke is only 25 kilometres away. This is a quality farm, with snapper, sea and sand within seconds of the doorstep. So, don’t delay – coastal properties of this calibre are a rarity, start your family legacy today.

Sale by Tender CLOSES: 4:00pm, Friday 3 March 2017 (unless sold prior) Web ID: rwpapamoa.co.nz/PPS22606 View Wednesday, February 8 12.00-1.00pm

LK0085807©

High Producing Coastal Dairy Farm

Janelle Taft 021 514 844

Quintin Havenga 021 032 0635

Papamoa Sales Office 07 542 0501 Realty Focus Ltd (Licensed REAA2008)

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

THE NEW ZEALAND FARMERS WEEKLY â&#x20AC;&#x201C; February 6, 2017

RURAL rural@propertybrokers.co.nz Office 0800 FOR LAND

Property Brokers Limited Licensed under the Real Estate Agents Act 2008

Hirawai - 603 ha

WEB ID PR52997

DANNEVIRKE 304 Otope Road Property Brokers are privileged to bring to the market Hirawai, an exceptionally well located sheep & beef breeding/finishing property 5km east of Dannevirke. Hirawai features an estimated 510ha of tractor country including 70ha of alluvial flats along the boundary of the Manawatu river a recreational playground. An aesthetically pleasing property with extensive wetlands, well tended wood lots & native plantings. Infrastructure

includes centrally located 5 stand woolshed, 3x cattle yards, 2 smaller woolsheds & 2x satelite sheepyards with accommodation provided by 3 homes with the main home a superior 4 bedroom, 2 bathroom recently refurbished family home. Superior soil types, fertility and infrastructure all within a stones throw of Dannevirke, Hirawai certainly warrants inspection.

VIEW By Appointment TENDER closes Thursday 9th March, 2017 at 2.00pm, Lloyd Dodson and Pringle, 9 Ward Street, Dannevirke

TENDER Jared Brock

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

Pat Portas

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

www.propertybrokers.co.nz New Zealandâ&#x20AC;&#x2122;s leading rural real estate company

Licenced under REAA 2008

RURAL Office 0800 FOR LAND

Property Brokers Limited Licensed REAA 2008

AUCTION

Size and scope

WEB ID DR53092

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

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

Jim Crispin

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

www.propertybrokers.co.nz

Golden Acres - 48b Old Highway

Whakamarama

A stunning boutique lodge style home and cottage on 7.28ha of land. This is the ultimate lifestyle? 0.96 canha of G3 GOLD Kiwifruit with full canopy, on excellent structures. Over 0.6 canha of high producing Green Kiwifruit on agbeam. You could add value here by tendering for G3 licence and grafting this block. Approximately 200 large healthy avocado trees carrying good crop. Purchase includes the valuable Autumn kiwifruit harvests. Around 1-2ha additional land utilised by this property (paper roads). Extra grazing for cattle or horses and the Waipapa River for swimming.

AUCTION

www.pggwre.co.nz ID: TAR25260

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

Andrew Fowler B 07 571 5797 M 027 275 2244

pggwre.co.nz

Production & location    •

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        

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   

        



Quality dairy support

Location is the Bonus

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 

•  • 

 • 

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•         

 







farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – February 6, 2017

SOUTHERN WIDE REAL ESTATE

‘THE GUMS’ ROTHERWOOD” BLUE RIBBON MANIOTOTO PROPERTY NEW LISTING TENDER

DEADLINE SALE

536 CIRCLE HILL ROAD, MILTON

LK0085336

• A quality property in every aspect and faithfully farmed to the highest of pastoral standards. Three separate blocks of 210, 98 and 154ha respectively come with their own titles. • Infrastructure is impeccable with the main homestead of 4 bedrooms being only 10 years old, second brick home having been extensively renovated plus another 2-bedroom cottage. • The 4-stand woolshed has huge covered yards attached. 6-bay implement shed with 1-bay lockable, as well as numerous hay barns, deer shed, two sets of cattle yards and satellite sheep yards. • Easy sheltered rolling country. Some deer fenced. Picturesque farm with excellent stock performance. Deadline Sale Closing 2pm Wednesday 22nd February 2017. Prior offers considered

21 Macandrew Road Dunedin 9012 p 03 466 3105

Web Ref SWDR1173

DOUG WARHURST M: 0274 660 247

JOHN FAULKS M: 0274 525 800

Southern Wide are privileged to offer ‘Rotherwood’ for sale, which has been in the Blakely family for 126 years. Situated in the Ranfurly/Gimmerburn area, Maniototo Region, currently breeding/finishing sheep and finishing quality large steers. Well-developed property with great infrastructure. Having excellent stock health and the properties are renowned for quality stock. Currently irrigation is a contour system, some border dyked, irrigating approximately 250ha. Water includes shares in the Maniototo West side, Waipiata and Hawkdam Idaburn Irrigation schemes. And a 200,000 l/hour winter consent to fill the approximate area of 7.5ha dam for storage. Overall a quality property with huge potential using the water under a spray irrigation system, combined with quality soils on a good scale. This opportunity is a rear commodity in the market and especially the Maniototo. THREE OPTIONS AVAILABLE. CONTACT SOLE AGENTS TO INSPECT – TENDER 14th March at 12 Noon, Dunedin Office. Web Ref SWDR1190

JOHN FAULKS M: 0274 525 800

RAY KEAN M: 0274 357 478

21 Macandrew Road Dunedin 9012 p 03 466 3105

SOUTHERN WIDE REAL ESTATE MATAURA ISLAND DAIRY UNIT

$2,950,000 + GST (IF ANY), 86.4156 HA FH

LK0084431

Web Ref SWG1700

351 MATAURA ISLAND ROAD, MATAURA ISLAND

Strong reliable Mataura silt loam soils. Historically this has been a strong and steady producer. Average production for the last three years: 87,000kg MS (from 230 up to 250 cows). 24-bail rotary shed, new effluent system consented. Large four-bedroom home, master with walk-in wardrobe and ensuite. MARK WILSON M: 027 491 7078 P: 03 208 0400 E: mark.wilson@swre.co.nz

39a Medway Street, Gore 9710

p 03 208 9283 f 03 208 9284 e gore@swre.co.nz w www.southernwide.co.nz

FOR LEASE

North Otago 125 Devils Bridge Rd 147.4 Hectares Tender For Lease – Homeville Farm. Dairy farm available to lease for a 3 year term. Great location close to Weston and Oamaru. 16 bail rotary cow shed with grain feed system. Subdivided into 33 paddocks, flat to easy rolling contour with sound grass pasture. Three bedroom roughcast home with single garage. Irrigation infrastructure is in place to irrigate 122 hectares via two guns and K-line. | Property ID TU10910

Closing 1pm, Wednesday 1 March 2017

Contact Barry Kingan 027 229 5046

0800 200 600 | farmlandsrealestate.co.nz

PRODUCTIVE SMALL FARM - 11.42HA 164 Murimotu Road, Hunterville This highly productive small farm, has an extensively modernised character home as its centerpiece, situated on an elevated site, providing a 360 degree outlook. The Kairanga silt loam soils have grown quality maize crops, are well subdivided, tile drained, and watered from the district scheme, with a smart set of cattle yards. A large range of sheds and a workshop make this ideal for the collector, contractor or if you just want lots of storage. A beautifully presented property, less than 4km from Hunterville, on the bus run and within a sheltered valley.

LK0085961

463.16 HA FH

986 GIMMERBURN-WAIPIATA ROAD, RANFURLY 753.5914 HA

5 BED | 2 BATH | 2 CAR 11.42ha (28.2 acres) www.nzr.nz/F094 OPEN SUN 12:00-12:45PM Offers Close 3pm, Wed 1 Mar 2017 (unless sold prior) Peter Barnett AREINZ 027 482 6835 | 06 323 4434 NZR Limited | Licensed REAA 2008

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – February 6, 2017

farmersweekly.co.nz/realestate 0800 85 25 80

RURAL | LIFESTYLE | RESIDENTIAL

Licenced under REAA 2008

Mount Stalker

North Otago

• 7,900ha (19,521 acres) - 2,300ha FH, 5,600ha pastoral lease • Balance of arable downlands oversown hill & clean tussock • Two quality homes + full range of quality support buildings • Wintering 14,000 stock units with a range of income streams from sheep, cattle, deer plus maturing forestry woodlots • The native bush provides wild game for hunting on this impressive large scale property

PRICE ON APPLICATION

East Otago Beef Finishing

Plus GST (if any)

Laurie Farmer M 027 435 7535 Allan Turner M 027 454 4222

Barry Meikle M 027 436 5131 Paul Brown M 027 432 6864

• 49.1897 hectares (six titles) • Fantastic, new four bedroom home, open plan living, office, double car garaging • Overlooking the farm prime river flats to the north and estuary towards the coast • The farm has a large selection of outbuildings with six bays closed in and lockable • The property has traditionally finished cattle to heavy weights on the heavy river flat soils and easy rolling contour and could equally be used for growing any variety of crops www.pggwre.co.nz ID: DUN25150

www.pggwre.co.nz ID: OAM25215

Palmerston DEADLINE PRIVATE TREATY Closes 12.00pm, Friday, 17 February

Paul Thomson B 03 470 0332 M 027 435 3936 H 03 489 2555

pggwre.co.nz

IRRIGATED DAIRY UNIT - VALUE FOR MONEY & SET UP FOR INVESTORS - TENDER 228 Battersea Road, Greytown, South Wairarapa This attractive dairy unit is located on Battersea Road five minutes drive south east of Greytown. There are approximately 214 ha (six titles) freehold in total, with around 196 ha being used as milking platform - almost all irrigated with K-line. The fertility is impressive with the most recent soil test indicating fertility levels for pH at 5.88 and Olsen P at 36.8 (averages). The whole farm (but 2 hectares) has been re grassed at least once in the last 11 years. The farm is very well planted with numerous attractive shelter belts. Milking around 450 cows at peak (100 milked through) averaging 500 kg MS/cow the farms production budget is around 225,000230,000kg MS. Bought in feed is targeted to be around 10% of the diet with an in shed feeder helping deliver 2 kg of barley grain per cow per day to Christmas. Historically the unit has produced in excess of 280,000kgMS from 570 cows under a higher input system. Improvements include three well maintained houses, a 38 aside herringbone cowshed, 120 tonne silo with disc mill & 8 tonne holding silo, irrigation with six consents, 300 cow feed pad and plentiful shedding. Investors should note that Wairarapa dairy farms offer exceptional value for money in comparison to other dairying areas of New Zealand - why pay Taranaki, Canterbury or Waikato prices? The current managing equity partner may be interested in staying on offering an opportunity for non-farming investors. Drone Video on website.

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

RURAL | LIFESTYLE | RESIDENTIAL

Licenced under REAA 2008

TENDER

35 Hectares Pukekawa Central

Pukekawa

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

TENDER

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

Richard Wright B 09 237 2040 M 027 454 6000

OPEN DAYS Wednesdays 2.30pm - 3.30pm 8,15 February 70 Logan Road, Pukekawa

Ian Croft B 09 237 8310 M 021 753 096

OPEN DAY

70 Hectares - Two Titles

Pukekawa

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

TENDER

First Time On Market For A Century

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

This well set up Dairy Farm has been farmed by four generations of the same family since 1914. • Featuring five titles with three dwellings • 60 bail rotary cowshed and good support buildings • Currently milking 550 cows • Little to no inputs achieving top production • Top effluent irrigation system • Backing on to the Waihou River, there is an additional 34ha (approx.) of stop bank and river flats available for lease from the Regional Council www.pggwre.co.nz ID: KAT25198

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

(unless sold prior) Closes 4.00pm Thursday 2 March

Richard Wright B 09 237 2040 M 027 454 6000

Ian Croft B 09 237 8310 M 021 753 096

Paeroa AUCTION (Unless Sold Prior) 12.00pm, Monday, 27 February OPEN DAY 11.00 - 12.00pm, Thursday, 9, 16 & 23 February

Alwin Thorne George B 07 549 2619 M 022 507 7117 Sue Williams B 07 549 2136 M 021 748 200

pggwre.co.nz

RURAL | LIFESTYLE | RESIDENTIAL

Licenced under REAA 2008

AUCTION

Self Contained Dairy Unit • Located just 13km from Otorohanga township • 170.9229 hectares (more or less) hill country dairy farm • Approximately 110 hectare dairy platform, 30 hectare dry stock, balance is bush • Contour 1/3 flat to rolling, 1/3 medium, 1/3 steeper • Milking 300 cows, 2015/2016 production - 110,000kg MS, all replacements and extras wintered on • 27 ASHB with feeders and numerous farm buildings, three dwellings • Great opportunity to purchase a well located self contained dairy farm

Otorohanga AUCTION (Unless Sold Prior), 11.00am, Wednesday, 15 March, PGGWRE, 87 Duke Street, Cambridge OPEN DAYS 11.00am-12.00pm, Friday, 17, 24 February, 3 March, 655 PUKETAWAI ROAD

www.pggwre.co.nz ID: TEK25241

Peter Wylie B 07 878 0265 M 027 4735 855

AUCTION

Greenfields • 95 hectares, more or less, freehold with 13 hectares of leasehold land • Situated right in the heart of the Piopio Village • Milking 280 cows, 76,000kg MS on 91 hectares of effective dairy platform • Balance is planted in natives, pines and Douglas Fir • 26 ASHB shed, assorted farm buildings • Very tidy 1991 built three bedroom dwelling • Excellent first farm opportunity

Piopio AUCTION (Unless Sold Prior), 11.00am, Friday, 10 March, Panorama Motor Inn, Awakino Road, Te Kuiti OPEN DAYS 11.00-12.00pm, Thursday, 16, 23 February, 2 March, 28A KEA STREET

www.pggwre.co.nz ID: TEK25042

Peter Wylie B 07 878 0265 M 027 4735 855

pggwre.co.nz

RURAL | LIFESTYLE | RESIDENTIAL

AUCTION

NEW LISTING

Potential And Presentation

Te Awamutu

• 119 hectares, more or less • Contour is predominantly flat to easy with approximately 15% steep • 32 ASHB shed centrally located on the farm with five bay calf shed and four bay tractor shed • Milking 308 cows, last season 120,000kg MS, variation 6 for up to 420 cows • Very tidy four bedroom homestead set in well maintained gardens • There is also a three bedroom managers house • Excellently presented tidy farm with the ability to run extra cows

AUCTION

www.pggwre.co.nz ID: TEK25111

Licenced under REAA 2008

(Unless Sold Prior), 11.00am, Wednesday, 8 March, PGGWRE, 87 Duke Street, Cambridge OPEN DAYS 11.00am-12.00pm, Tuesday, 7, 14, 21 February, 317 AOTEAROA ROAD

Kiwifruit Orchard - Golden Bay Approx. 9.7 canopy hectares Green kiwifruit. Improvements include irrigation system with quality water, automated frost protection, well established shelter and a three-bay lockup equipment shed. Extensively modernised dwelling comprising three double bedrooms + study, located on a separate title (2,023m2), also a large lockup shed complex on a separate title (8,577m2). Purchase options include; buy all three titles or 14.9739 hectare Kiwifruit Orchard as a standalone. www.pggwre.co.nz ID: NEL25165

Peter Wylie B 07 878 0265 M 027 4735 855

Tasman DEADLINE SALE Plus GST (if any) (Unless sold prior) Closing 4.00pm, Friday, 3 March

Peter T Evans M 027 224 9798 Doug Smith M 027 543 2280

pggwre.co.nz

Employment

THE NEW ZEALAND FARMERS WEEKLY – February 6, 2017

690 Cows – Newstead

• •

Two Great Opportunities AND close to Hamilton

FARM MANAGER

•

jobs.farmersweekly.co.nz 0800 85 25 80

Great country school, bus for Hillcrest High School Professional Employers who value their staff Excellent housing

Our clients are a long established family farming business and due to recent growth there are now two roles available in the Drystock side of the business. The family runs several farms all within 30 minutes of Ohinewai, where both these positions are based.

Our clients operate three neighbouring farms as separate dairy units, each with their own Manager, yet in a team environment with efficient systems in place and utilising a farm consultant. They now seek a progressive and professional farmer who will be excited to join the management team. This system 2-3 farm milks 690 cows on 205ha, via a 50 bail rotary with ACRs, auto teat-spray and a 400 cow feedpad.

Stock Manager

Fencer

This role is running an 800ha bull finishing block. It is a true Stock Manager role in that the owner deals with the sourcing and selling of the stock, but this person is in charge of everything in between. We are seeking a top stockperson who is passionate and takes real pride in growing out cattle.

This role is a full time role and the successful person will be supplied with the tools and equipment required (including a side mounted post rammer). There will be the full spectrum of fencing from 7 wire post and batten to 2&3 wire electric, both new fences and repairing existing ones. This is a fantastic role for a proficient fencer who takes pride in doing the job right.

This farm grows grass, so the ideal applicant requires proven pasture management skills, excellent communication skills, and a desire to develop their people management skills to lead and retain high quality staff. A competitive salary with a well maintained four-bedroom plus office and ensuite home is on offer, making this an excellent opportunity for someone dedicated to a career in dairying.

Both these roles are supplied with good three (3) bedroom houses and have remuneration packages that will reflect the skills and experience of the successful candidate. Applications close 4pm Friday 17 February. To apply either email your CV to jobs@fegan.co.nz or phone us on 07 823 0117

To view photos visit our website www.fegan.co.nz To apply call us on 07 823 0117 or email jobs@fegan.co.nz

www.fegan.co.nz

Human Resources • Recruitment

Hill Stock Manager

FARM MANAGER

Intensive Finishing Farm with Scale

A hill stock manager position has become available on a progressive West Otago hill-country property running 20,000 stock units of sheep and cattle.

There is a real opportunity here for a high quality Manager to really make this block perform. All the physical components are in place (fertility, water, pastures etc). The farm was ‘converted’ five years ago, so all the infrastructure is new and purpose built for this scale. … all it needs now is the ‘right’ Manager. The successful Manager will find this employer very forward thinking, well-resourced and focused on profitable, sustainable performance, so if you are an innovative progressive and experienced Finishing Manager, this farm will interest you. Although the other blocks owned by the trust can serve as feeders to the finishing block, that only happens if they produce the specifications needed for the contracts in place. A competitive package will be offered that includes a commitment to training and personal development, quality housing close to town, which provides great schooling for children and/or work opportunities for a partner if appropriate.

To view photos visit our website, then apply by emailing your CV to jobs@fegan.co.nz or phone us on 07 823 0117. Applications close 3pm Friday 10 February 2017.

We are seeking a person who has • excellent stockmanship skills • staff management experience • a good team of dogs • the ability to contribute to the property’s ongoing development. The successful applicant will be conscientious, highly motivated and have excellent communication skills. The position offers a competitive salary, a four-bedroom house, access to primary and secondary schools and opportunities for outdoor recreation. The station offers a positive working environment and is located within a strong local community. If interested please send your C.V and references to hazlett@yrless.co.nz For enquiries please contact Quintin and Rebecca Hazlett 03 204 0719, or for a full job description please email hazlett@yrless.co.nz

www.hukarereadventures.co.nz

DAIRY SUPPORT MANAGER

Two positions available

Bay of Plenty 240ha hill farm. 30 minutes to Whakatane. Approximately 780 head and wintering 400 cows.

Enquiries to: 021 222 2298 Email CV to: mex@farmisde.co.nz

SHEPHERD GENERAL

LK0085956©

The successful applicant must be experienced in all aspects of dry stock farming, the operation of farm machinery and have 2 to 3 working dogs under good command.

For more information please contact: Farm Manager, Peter Maguire by phone 07 543 2170 or email application with CV to p.e.mag@xtra.co.nz or mail to 221 Kumi Kumi Road, RD 1, Tauranga

$2.00 + GST per word - Please print clearly

Blue Duck Station is a 2800 hectare bee, sheep and beef farm, tourism operation and a major conservation project surrounded by Whanganui National Park. Due to our growing business, we have two vacancies available, both roles require good people skills and a passion for the NZ environment.

Name: Phone: Address: Email: Heading:

Shepherd/Activity Guide – This is a diverse farming and tourism role. A minimum of three working dogs, horse riding skills and a firearms license are preferable but not essential.

A position has become available on PoriPori Farm A Trust, a 1551ha intensive breeding and finishing property 15 minutes from Tauranga.

A three bedroom house is available with primary and secondary bus at gate.

REACH EVERY FARMER IN NZ FROM MONDAY

Advert to read:

Horsetrekking Guide – Challenging yet fun, you will have exceptional horsemanship skills, a great networker with the ability to work independently and as part of a team. To apply, email info@blueduckstation.co.nz or phone 07 895 3346.

LK0085959©

Experience and working dog essential.

LK0085974©

May suit a semi-retired person part time or a full time position by including further responsibilities and properties.

EMPLOYMENT

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

LK0085990©

Wi Pere Trust farms a total of 4800ha carrying 56,000 stock units over several blocks in the Gisborne area. This farm would have to be the jewel in the crown. It is 910ha of prime flat to easy rolling country including 170ha irrigated (120ha centre pivot and 50ha gun) on the outskirts of Gisborne that is finishing around 30,000 lambs and 1600 cattle.

Classifieds

General Hand Clevedon, Auckland Just one hour from Central Auckland, Hololio Farm is a well-established equine business located in the picturesque Clevedon Village. The property is 60ha and consists of a small Welsh pony stud and a pony park including three polo fields and facilities. Currently there are 30 polo ponies, 20 Welsh ponies and 10 horses living on-farm. During the winter months the property also finishes 500 hoggets.

HAVE YOUR HEADING DOGS trained properly by an experienced trainer. Will keep up to six weeks. NI. Can collect. Phone 027 912 1531.

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

ATTENTION FARMERS

Enjoy all of the benefits associated with this role including a rural lifestyle close to the city, two choices of accommodation and flexible working hours to suit your situation; ranging from 30-40 hours per week. Clevedon is a vibrant area with cafes, weekend markets and other recreational activities to keep you busy.

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 LK0085999©

Applications close 5pm Monday 27th February 2017

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

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

In order to be successful, a personable nature, strong relationship skills and high personal standards are essential as there is a range of visitors’ on-farm daily. As most of the time you will be working autonomously to complete tasks, you will also need to be proactive, a self-starter and require good time management and organisation skills.

For more information, or to fill out an application, please visit www. ruraldirections.co.nz or phone the Rural Directions team in confidence on 0800 475 465 (Reference #6057).

DOGS FOR SALE

ANIMAL HEALTH

The farm’s proud Owners are in search of a General Hand who can immerse themselves into this diverse business. A background in farming and practical work is required; with skills ranging across stock work, fencing, water reticulation, tractors, gardening/horticulture and arbour work. Your willingness to be flexible will be paramount in this position as there will be a vast array of machinery and jobs provided to offer variety and keep your mind occupied.

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

DOGS FOR SALE

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

ONE 18-MONTH-OLD Heading bitch. Working sheep nicely, under good command. $2000. Phone Mark Porter 07 825 4423. 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. BEARDIE HUNTAWAY pups, b & t, well bred, well grown. Good working strain. $400. Phone Stewart Galbraith, 07 89 66 709. Kaitieke.

0085309

185x130.71 Scholarship 2017

PROGRAMME 2017

Applications are Open

· All course and licensing expenses paid during the six month scholarship term · One-on-one mentoring

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

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

FORESTRY WANTED

DOGS WANTED HEADING, HUNTAWAY, handy, backing dogs or bitches, 2-6 years. Top money paid. Phone Ginger Timms 03 202 5590 or 027 289 7615. QUICK CA$H $ALE! No one pays or buys more! 07 315 5553. Mike Hughes.

12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195. MANY CLIENTS needing capable Handy dogs now! 07 315 5553. Mike Hughes.

DUCK SHOOTING POND REQUIRED for three mature responsible shooters 2017 duck shooting. Any North Island location considered. Good remuneration for right property. Please reply to Peter 027 557 7755 or email pukeko12@hotmail. com

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.

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

GOATS WANTED

FERAL GOATS WANTED. All head counted, payment on pick-up, pick-up within 24hours. Prices based on works schedule. Experienced musterers available. Phone Bill and Vicky Le Feuvre 07 893 8916. GOATS WANTED. All weights. All breeds. Prompt service. Payment on pick up. My on farm prices will not be beaten. Phone David Hutchings 07 895 8845 or 0274 519 249. Feral goats mustered on a 50/50 share basis.

PERSONAL

JUST COUNTRY Dating Service

For Town & Country clients NZ wide.

Ph 027 390 9189 or email justcountry123@ hotmail.com

LK0084844©

FOOTWEAR

MANUFACTURERS z it co.n Vis rite. lity a t u s q la w. ore cts ww r m odu fo pr

M • ore • L Leat pro • W eat her duc or her far ts a Ph 1 k & h mi va 0 ad one H u Fo ntin ng b ilab e re g oo le 09 all R to str & t s 43 oa y h tra or 8 8 d, ig mp de h i r & ng 90 RD lo b w 7 oo 5 leg ts •l ,W wo as rk tri hang te@ arei boot xtr s

· $1,000 investment towards personal profile marketing

individuals that are looking to step-up their

BOOK AN AD. To book a word only ad in Farmers Weekly Classifieds phone Debbie on 0800 85 25 80.

Phone Matt 06 376 3900

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

We are looking for highly-motivated

BRIAN BURKE, NZ Champ 1984 and 5 times NZ Champ finalist, available to train your working dog. In three weeks he will transform your heading dog into a productive asset for the farm. Contact Brian 06 343 9561 for further details and pricing (heading dogs only).

WINDMILLS for water pumping. Ferguson Windmills Company. www.windmills.co.nz sales@windmills.co.nz Phone 09 412 8655 or 027 282 7689.

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

LK0085524©

· Competitive remuneration for the scholarship period

FORTY HUNTAWAYS, Heading, Handies. $500$2500. Deliverable. 07 315 5553. Mike Hughes.

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

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

PGG Wrightson Real Estate Scholarship Programme offers:

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.

MAKURI LIME

for our 2017 Scholarship Programme

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

FOR SALE

ANIMAL HANDLING

a.co.nz

welcome

GRAZING AVAILABLE GRAZING AVAILABLE for 140+ cattle. Bulls optional. Located south of Kaitaia. Phone 021 083 04279.

GRAZING REQUIRED LAMB GRAZING WANTED. North Island $1.80 kg/live weight gain or fixed weekly rate. S.I. rates available. 06 877 0430 or 021 024 13066.

LIVESTOCK FOR SALE RAMS. SOUTHDOWNS AND Suffolk/ Southdown X for heavy fast growing lambs. $250- $500. Phone 06 357 7727 or 021 133 7533. RAMS. HILL COUNTRY Perendales. Easy care with good size and quality wool. $250-$500. Phone 06 376 4751 or 021 133 7533.

LIVESTOCK REQUIRED STORE LAMBS WANTED. North Island. No commission. Payment in 7 days of trucking. 06 873 3696 or 021 228 4238.

SIAFD HOMESTAY AND NZ POUGHING. Enhance your South Island experience by staying in local Malvern home with a Malvern Anglican Parish family. Phone 03 318 8457 or 027 290 4592 aghomestays@gmail. com

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

WORK WANTED EXPERIENCED FARM MANAGER requires farm work (sheep & beef), full or part-time in Northland (anywhere between Kerikeri and Kaitaia). Please phone Ash 07 877 7576.

CLASSIFIEDS ADVERTISING

Employment

LK0085890©

Do you have something to sell? Advertise in The NZ Farmers Weekly

Call Debbie

0800 85 25 80 classifieds@nzx.com

Licensed REAA 2008

Livestock

THE NEW ZEALAND FARMERS WEEKLY – February 6, 2017

GOATS WANTED • Kill space available • Prompt pick ups, freight paid

One schedule price for all farmers

• Payment in two working days

To receive the Prime Range Meats weekly schedule prices via email, contact the Procurement Manager Ken Cavanagh on: 027 436 8560 or email ken.cavanagh@primerange.co.nz

• Top schedule, for an example – A 12kg goat returns $45 and 16kg $60.60.

Aotearoa Stockman Phone John Gray 027 959 4166

Phone Sam 06 363 7237

Top Autumn Herd Clearing Sale HIGH Morrinsville Saleyards

• PerendaleJERSEY X Texel INDEXING & JERSEY Private sales option for X Romney early mating delivery CROSS HERD Contact:

Fairlea Texels Meaty Muscle Makes Money

27/12/16, Systemalso 3, shed drenched, no cidrs, replacement stock available

no intervention, off rolling contour, should shift

Friday 10th February 2017 Commencing at 11.00am Longdown Ewe Lambs Perendale Ewe Lambs Perendale Two-Tooth Ewes (lambed as Hoggets) Perendale Two-Tooth Ewes Perendale 2-shear Ewes Perendale 3-shear Ewes Perendale 4-year-old Ewes Perendale 5-year-old Ewes Perendale Annual Draft Ewes Longdown 2-shear Ewes Longdown 3-shear Ewes Perendale Kelso 4-year-old Ewes Perendale Kelso 5-year-old Ewes Kelso Annual Draft Ewes

1808 Makino Road RD 9, Feilding 4779 Ph: 06 328 8710 Fax: 06 328 8712 Mob: 027 226 5784 Email: fairleatexels@xtra.co.nz

*Suftex first-cross rams also available

PH: 027 482 8771 or 07 846 4491 SALE TALK

A magician was working on a cruise ship. The audience was different each week, so the magician did the same tricks over and over again. There was only one problem: The captain’s parrot saw the shows each week and began to understand how the magician did every trick. He started shouting in the middle of the show: “ Look, it’s not the same hat”. “Look he is hiding the flowers under the table” “Hey, why are all the cards the Ace of Spades?”The magician was furious but couldn’t do anything as it was the captain’s parrot. Soon after, the ship suffered a major accident and unfortunately sunk. The magician found himself on a piece of wood in the middle of the ocean with the parrot. They stared at each other with hate, but did not utter a word. This went on for most of the first day and towards the end of the day the parrot looked at him and said, “OK, I give up. Where’s the boat?”

The above ewes are being sold due to an expiry of a lease. They are all fly and lice dipped, ewes mouths and udders checked. The ewes are late December shorn. The Perendales are Mt Guardian bloodlines. The Longdowns usually lamb at 150% plus and have the MyoMax double muscling gene with high yields. These sheep are an excellent line of breeding ewes and are strongly recommended by the auctioneers.

Vintage Machinery Auction Complete Dispersal Sale 3872 Mountain Road, Stratford Saturday 4th March 2017 at 11.00am Head to agonline.co.nz/sales/upcoming for auction catalogue and more info

Contact

Kim Harrison 027 501 0013 kharrison@pggwrightson.co.nz

www.carrfieldslivestock.co.nz 238 Pred Xbred CRV Herd BW55 PW76 DTC 15/7 (bull out 30/12) Great confirmation, 430ms, excellent condition, low inputs & SCC $2000.00 John Price 027 594 2544 190 OAD Young Xbred Herd DTC 10/7 BW72 PW84 170 2-4 years, 5 weeks AI to KiwiX (60%) also balance J-F & F-J Tailed Hfd AI 10 days then Jersey Bull (out 1/1) Low SCC $1850.00 Deone Coulter 0274 981 206 53 Xbred I/C Heifers BW107 PW107 DTC 10/7 to Jrsy Very even well grown line from the above OAD herd $1700.00 Deone Coulter 0274 981 206

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

LK0085507©

LK0085936©

58 R1yr Heifers BW127 PW133 (from above herd) $1000.00 Deone Coulter 0274 981 206

www.agonline.co.nz

Helping grow the country

LK0086015©

SHEFFIELD EWE FAIR

Call Hugh & Helen Winder on 0800 328 877

LK0086008©

Annual 15 Month Heifer•FairYoung Tuakau Saleyards

well. Friday 24th February Outstanding genetics & potential to be one of 12.30pm Asking $2100 + GST. End May delivery. the countries leading suppliers of Genetics to Waipuna Valley Farms 70 in-calf heifers also available, due from 1500 – 15 month Beef Heifers comprising: the dairy industry15/7/17 for years tobulls, come. Fullgrown. details to Jersey Very well 750 Angus available. Asking $1800 + GST. 320 Angus/Hereford 70 Hereford also available. 260 Charx, Simx, Devx Enquiries to the Other soleherds marketing agents: 100 Stabiliser • Quality line of traditional and Exotic bred All enquiries to: cattle Brian Robinson Robinson BRLL • Farmed in large mobs on Brian genuine hill country • Cattle in hand several days prior to sale day, PH: 0272 410051027 or 241 07 0051 8583132 weighed dead empty • Top bred cattle purchased ex South Island • Weaner Fairs • Good condition cattle Gary Falkner Contact Tony Blackwood 0272 431 858 or Jersey Marketing Service David Short 07 826 7763

On Account Of MARLU PASTORAL LTD Aylesbury

www.rurallivestock.co.nz NZ Owned & Operated

www.dyerlivestock.co.nz

NEW TO THE MARKET

CAPITAL STOCK EWES

For further details please contact Bob Davidson (RLL) – 0274 730 806 RURAL LIVESTOCK LTD Auctioneers

DAIRY HERD FOR SALE

PRELIMINARY NOTICE

410 103 110 156 119 69 344 328 173 148 50

23-‐34kgs ROMNEY 23-‐34kgs ROMNEY WETHER LAMBS AMBS 3-‐32kgs M/SEX TERMINAL LAMBS 23-‐32kgs 550 5YR ROMNEY EWES Med Condition

Ross Dyer 0274 274 3 333 33 381

120 2th Rams-including selection for hogget mating • Romney • Kelso Maternal • Romdale • Kelso X Romney • Texel X Romney • Kelso Terminal (Black Face)

BW 143/50 PW 161/67 RA 100% (in top 10 All Breeds for NZ )

www.nzsheep.co.nz/texel

200 400 125

MEADOWSLEA

Tuesday 14 February 11.30am David Giddings 03 685 8027 Auctioneers PGGW Rotowaro Farms Pship Keith Willson 0800 309 554 Due to the sale of the property, this top autumn Callum Dunnett 027 590 8612 herd is offered for auction. or your local agent www.meadowslea.co.nz 160 Frsn/Frsnx Cows, BW61, PW85, RA 100% 110 Frsn/Frsn x C/O Cows, BW90, PW 138 • Calving 20 March, 4 weeks Frsn tailed • ABMany cows contracted to LIC for 2011 matings Hfd (out 11/08/16). Cows vetted to date. • Dry 28/12/16, Herd Ceprevan cow to calve from 16-7-12, 6.5 weeks • dry Due treated. AB Jersey and Kiwi cross • Production averaging 500kg/cow consistently. • Estimated to be 420 cows after non • Strong Frsn type herd, big capacity cows calved and milked last season.pregnant, culls, older cowsherd, & 360 5%Friesian rejection Long established cross cows, • Exceptional line of carryovers calving for 4 mostly black, good framed tidy uddered, BW weeks only to Hereford. • Production last season 347kgs ms/cow, 78 PW 100 RA 98%, G3 profiled, young herd, Great opportunity to purchase top cows. 1000kgs ms/ha, on rolling to steeper consistently 390/400 kgs ms/cow, 1100kg Catalogues and Herd Test available by request. contoured farm, no meal, kernel or maize ms/ha, cell countpalm 120000, due to calve from Contact Tony Blackwood 0272fed. 431 858 17/7/17 to LIC BOD, tailed Jersey bulls out th

FOR SALE

LK0085872©

Born with a determination to survive High survival rates from scanning on Tolerant to internal parasites Less drenching and dagging Hardy and adaptable to extreme climatic and feed conditions Intelligent and user-friendly stock Muscle up at an early age Higher proportions can be drafted off mothers, early finishers Better wool pull than other terminal sire breeds Clean front and back socks

On-farm Fairlie – Friday March 17 – 1pm

LK0083836©

•

Autumn Ram Sale

TEXEL SIRED LAMBS ARE UP AND RUNNING

•

LK0085889©

• Kill on a share basis with farmer and arrange space

Wanted Ewes

LK0085963©

• Will buy undersize goats

• • •

15 MTH HEREFORD BULLS ULLS ULLS 15 MTH BEEF & FRIES BULLS 300-‐380kgs 15 MTH HEIFERS EIFERS 250-‐350kgs 250-‐350kgs Good Genuine MA Breeding Ewes

• Competent reliable goat musterer

STOCK REQUIRED EQUIRED

by a team working together for you.

• • • • •

Livestock 0800 85 25 80

MARKET SNAPSHOT

IN PARTNERSHIP WITH

Grain & Feed

MILK PRICE FORECAST ($/KGMS) 2016-17

6.40

AS OF 18/11/2016

AS OF 19/01/2017

Prior week

Last year

WMP GDT PRICES AND NZX FUTURES

5.10

327

350

NI mutton (20kg)

3.10

3.00

2.40

286

303

SI lamb (17kg)

5.20

5.10

4.85

Feed Barley

281

288

SI mutton (20kg)

3.10

2.10

230

Export markets (NZ$/kg) 7.48

7.57

7.37

244

UK CKT lamb leg

Maize Grain

370

352

PKE

246

226

* Domestic grain prices are grower bids delivered to the nearest store or mill. PKE and fertiliser prices are ex-store. Australian prices are landed in Auckland.

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

6.5

Last week

Prior week

5.0

Last year

CBOT futures (NZ$/t)

4.5

Wheat - Nearest

219

215

258

Corn - Nearest

198

197

216

300

303

373

South Island 1 7kg lamb

6.5 6.0

3000

ASW Wheat

271

275

364

2500

Feed Wheat

253

261

329

2000

Feed Barley

235

238

331

110

100

PKE (US$/t) Ex-Malaysia

NZ venison 60kg stag

5.5

600

$/kg

3500

Dec 16 Mar 17 NZX WMP Futures

6.0 5.5

INTERNATIONAL

APW Wheat

1500 Mar 16 Jun 16 Sep 16 C2 Fonterra WMP

North Island 17kg lamb

7.0

Australia (NZ$/t)

4000

5005.0 4004.5 3004.0 Oct Oct

Dec Dec

Feb Feb

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

Prior week

vs 4 weeks ago

WMP

3210

3320

3240

SMP

2500

2595

AMF

5380

Butter

4280

Last week

Prior week

Last year

Last week

Prior week

Last year

2625

Urea

482

525

29 micron

6.65

8.95

5380

5330

Super

317

330

35 micron

3.85

3.63

5.74

4280

4300

DAP

850

39 micron

3.39

3.60

5.64

739

3500 3250 Apr

May

Jun

Jul

4 w eeks ago

Sharemarket Briefing JANUARY was a positive month for most markets with the NZX50 rising 2.46% and putting a stop to a four-month losing streak. The year started strongly with equities benefitting from the stimulus of the Donald Trump presidency. The S&P500 in the US rose 1.79% while the Dow Jones hit a key milestone of 20,000. Although the Dow finished below that level, the index still saw a 0.51% increase. Last week was busy on the local economic calendar, starting with migration. Annual net migration hit yet another record in December, with 70,600 more migrants arriving in New Zealand than leaving during 2016. The greatest contribution came from migrants with working visas, while there was also a large increase in NZ and Australian citizens. In addition, annual visitor numbers for the year hit a record 3.5 million, a 12% increase on 2015. NZ’s labour data showed an increase to the unemployment rate, rising to 5.2% in the December quarter from 4.9% in the third quarter. Despite the rise, the underlying data showed a positive trend in employment and the increase was driven by the increase to the participation rate. Market commentary provided by Craigs Investment Partners

9470

S&P/FW AG EQUITY

11132

S&P/NZX 50 INDEX

7054

S&P/NZX 10 INDEX

7083

$/kg

250 150 Jan 13

NZ venison 60kg stag

5.5

600

c/k kg (net)

350

NZ$/t

US$/t

3750

35 micron wool price

6.5

CANTERBURY FEED PRICES 450

S&P/FW PRIMARY SECTOR

This yr

(NZ$/kg)

4000

Latest price

Last yr

Aug Aug

NZ average (NZ$/t)

WMP FUTURES - VS FOUR WEEKS AGO

Mar

JunJun

WOOL

* price as at close of business on Thursday

Feb

AprApr

FERTILISER

Last price*

3000

Last year

5.10

Feed Wheat

Waikato (NZ$/t)

Dec 16 AgriHQ Seasonal

Last week Prior week

NI lamb (17kg)

Milling Wheat

PKE

Sep 16 AgriHQ Spot Fonterra forecast

Slaughter price (NZ$/kg)

c/kkg (net)

$/kgMS

MILK PRICE COMPARISON

US$/t

Last week Canterbury (NZ$/t)

6.00

8 7 6 5 4 3 Jun 16

SHEEP MEAT

DOMESTIC

AGRIHQ 2016-17

FONTERRA 2016-17

Sheep

$/kg

Dairy

Jan 14 Feed barley

Jan 15

Jan 16 PKE spot

Jan 17

300 3.5 Oct Oct

Dec Dec

Feb Feb

Apr Apr Last yr

JunJun

AugAug This yr

Dollar Watch

YTD High

YTD Low

Auckland International Airport Limited

6.85

6.91

6.31

Fletcher Building Limited

10.14

10.86

10.12

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

2.67 3.53 8.80 8.85 3.07 4.76 3.22 4.28

2.77 3.70 9.18 8.87 3.10 5.02 3.30 4.35

2.57 3.41 8.50 8.17 2.94 4.65 3.15 3.86

Listed Agri Shares

4.5

400

5‐yr ave

Top 10 by Market Cap Company

500

5pm, close of market, Thursday

Company

YTD High

YTD Low

The a2 Milk Company Limited

2.290

2.360

2.060

Cavalier Corporation Limited

0.800

0.810

0.720

Comvita Limited

7.100

8.020

6.000

Delegat Group Limited

5.950

5.650

Foley Family Wines Limited

1.480

1.490

1.480

Fonterra Shareholders' Fund (NS)

6.190

6.300

5.990

Livestock Improvement Corporation Ltd (NS)

2.560

2.600

2.550

New Zealand King Salmon Investments Ltd

1.390

1.410

1.270

PGG Wrightson Limited

0.530

0.540

0.490

Sanford Limited (NS)

7.000

7.120

6.700

Scales Corporation Limited

3.390

3.530

3.320

Seeka Limited

4.540

4.600

4.500

Tegel Group Holdings Limited

1.340

1.460

1.300

S&P/FW Primary Sector

9470

9636

9307

S&P/FW Agriculture Equity

11132

11330

10899

S&P/NZX 50 Index

7054

7134

6971

S&P/NZX 10 Index

7083

7232

7047

SOME market scepticism This Prior Last NZD vs about how President week week year Trump’s fiscal and trade USD 0.7292 0.7249 0.6731 policies might boost the EUR 0.6768 0.6777 0.6004 United States economy is AUD 0.9513 0.9607 0.9347 helping maintain the kiwi GBP 0.5818 0.5750 0.4611 dollar at high levels. The dollar was heading back Correct as of 9am last Friday towards US$0.73 on Friday, well up on its 2016 close when the market was bubbling over the Trump plans. Such is the strength of the New Zealand economy that it will really take another step forward by the US dollar for it to weaken, ANZ Bank senior economist Phil Borkin said. “We don’t think further gains for the kiwi are easy from here. It’s at decent levels and our commodity prices do not look as if they’re going significantly higher.” So ANZ sees a range-bound path in the short term but its core view is that the kiwi will “grind lower” over time because a firmer US dollar bias will ultimately win-out. The bank’s official forecasts are for a US$0.69 rate at the end of March and 0.67 at the end of June though Borkin said there was upside risk for the kiwi on both of those. ANZ has a counter view from some other currency watchers on the prospect of the kiwi against sterling, saying the British economy has weathered the Brexit vote much better than expected, continued to grow and with inflation emerging. Borkin believes the lows for sterling are probably in and the kiwi could drift lower. Alan Williams

Markets

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

SI SLAUGHTER BULL

SI SLAUGHTER STEER

SI SLAUGHTER STAG

($/KG)

JERSEY BULLS, 475-525KG, AT TEMUKA

($/KG)

($/KG LW)

5.25

4.90

7.90

2.55

high lights

$1095-$1405

$84-$116

R2 Angus steers, 350470kg, at Stortford Lodge

Prime lambs at Feilding

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

Last week

Prior week

Last year

NI Steer (300kg)

5.20

5.25

NI Bull (300kg)

5.00

5.25

NI Cow (200kg)

3.90

4.00

SI Steer (300kg)

5.25

5.20

5.00

SI Bull (300kg)

4.90

4.80

4.55

SI Cow (200kg)

3.95

3.90

3.50

US imported 95CL bull

6.52

6.43

6.54

US domestic 90CL cow

6.27

6.24

6.88

Export markets (NZ$/kg)

North Island steer (300kg)

6.5

$/kg

6.0 5.5 5.0 4.5

STARTING YOUNG: Tom Thatcher, 3, of Peel Forest at last week’s Temuka sale.

4.0

Photos: Annette Scott

More photos: farmersweekly.co.nz

South Island steer (300kg) 6.0 5.5

NZ venison 60kg stag

c/k kg (net)

$/kg

600 5.0 500 4.5 400 4.0 300

3.5

Oct Oct

Dec Dec

Feb Feb

5‐yr ave

Apr Apr

Jun Jun

Last yr

Aug Aug This yr

VENISON Slaughter price (NZ$/kg)

Last week Prior week

Last year

NI Stag (60kg)

7.90

7.20

NI Hind (50kg)

7.80

7.10

SI Stag (60kg)

7.90

7.20

SI Hind (50kg)

7.80

7.10

New Zealand venison (60kg Stag)

9.5 8.5 $/kg

NZ venison 60kg stag

c/k kg (net)

600 7.5 500

6.5 400

300

5.5Oct

Oct

Dec Dec 5‐yr ave

Feb Feb

Apr Apr Last yr

Jun Jun

Aug Aug This yr

Stock offloaded as conditions worsen

ORE farmers across East Coast offloaded as another week passes with minimal rain and relentless wind. Stortford Lodge numbers have been consistently higher than traditional levels for the past four weeks, and most lines of stock offered last Wednesday would not have been there if it weren’t for the extremely dry conditions and lack of stock water. The lamb market has firmed in the last two weeks as good demand from outside the area, and including the South Island, has kept competition

there. Nearly all cattle also headed outside the area as well, to places with plenty of feed. NORTHLAND NORTHLAND Another sunny day at the KAIKOHE sale last Wednesday was not really what was wanted, with paddocks now very dry and no rain on the forecast. The market is showing the effects of the limited buying power, and prices eased 10-15 cents-per-kilogram across the board, though numbers were moderate at 450 head. Quality was mixed, but a feature was an excellent offering of 130 R2 Friesian bulls, 350-450kg, which sold

for $2.50-$2.56/kg to a very keen bench. The remainder of the R2 cattle were of mixed quality, with the steers beefcross and trading at $2.55-$2.65/kg, while the heifer market battled, and beef-cross and Hereford-Friesian sold for $2.40-$2.45/kg. Weaner numbers were limited, and the market harder going than of late, though results were still very respectable. Beef-cross bulls traded at $2.85-$2.95/kg, while dairy lines, 100120kg, returned $550. Beef-Friesian heifers sold for $450.

Continued page 46

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Markets

46 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017

ewe lambs of similar weight, $63$70. Light mixed sex were popular, trading at $38-$62, and achieving the highest cents-per-kilogram of the day. The cattle pens were also very busy as just over 1000 cattle were offered, most of which were R3 steers, and R2 cattle. Nearly all cattle, including the small lines, went outside the area, with strong competition from Manawatu, Waikato and Wairarapa. The yarding was mainly big lines of station cattle and were very well presented, with most having had a good growth period before conditions dried out on farm. Rising-three Angus steers, 445503kg, sold well at $2.83-$2.91/ kg, while South Devon, 609-667kg, made $2.74/kg. Two lines of Friesian bulls, 525- 547kg, fetched $2.60-$2.62/kg. A big yarding of 460 R2 steers sold very well and Angus, 356-409kg, managed $1095-$1245, with all trading over $3/kg, while heavier types, 425-477kg, returned $2.95-$3.04/ kg. Specially advertised R2 Angus bulls, 388-499kg, sold over a tight range at $2.68-$2.76/kg. The heifers were mainly Angus, 316333kg, at $902-$940, $2.82-$2.85/ kg, or Hereford-Friesian, 299326kg, which made $755-$960.

A small offering of cows also sold on a softer market, and heavy lines made $1.70/kg, with medium types earning $1.20-$1.30/kg. Auckland Anniversary meant a change of sale day for the store cattle at WELLSFORD, and as such just a small yarding of 171 were offered. Hereford-Friesian stood out in the R2 steer pens, though prices were softer, and 361-426kg sold for $980-$1115 at $2.62-$2.71/kg, while most other lines traded at $2.50-$2.56/kg. Similarly a small offering of heifers was mixed, and Hereford-Friesian, 393-411kg, sold for $950-$1020 at $2.42-$2.48/kg, with other lines well off the pace. Hereford-Friesian also featured in the weaner pens, albeit in small numbers, and steers, 122-175kg, returned $465-$625, and heifers, 105-170kg, $330-$535. COUNTIES COUNTIES About 300 store cattle were offered at TUAKAU last Thursday, and prices were slightly stronger, PGG Wrightson agent Kane Needham reported. While numbers were down due to the short week, extra buying support from the King Country helped push bidding along. The yarding included a small entry of steers over 400kg, which traded at $2.55-$2.65/kg, while 350-400kg, made $2.70-$2.90/ kg, and good Hereford-Friesian weaner steers, 120kg, $660. A pen of 160kg Friesian bulls fetched $530 and a lighter lot at 120kg $410. The heifer section included a line of 392kg Hereford heifers, mated to a Hereford bull, which sold at $2.91/kg, $1140. Blackbodied Hereford-Friesian heifers, 332-370kg, traded at $2.54-$2.58/ kg, $860-$890, and a pen of Hereford-Friesian weaner heifers, 110kg, made $485. Last Wednesday’s prime sale drew a yarding of 280-300head, and the market was on par. Top prime steers made $2.72/kg, with other heavy lots selling from $2.65/kg. Medium steers returned $2.60-$2.65/kg and light $2.50$2.60/kg. Heavy heifers sold at $2.60$2.70/kg, and light-medium $2.50$2.58/kg. Beef cows earned $1.85$2.10/kg, with heavy Friesians fetching $1.80-$1.90/kg. Medium cows made $1.65-$1.75/kg and light boners $1.40-$1.55/kg. The Monday sheep sale was shifted to Tuesday due to the Auckland Anniversary holiday, and the yarding was on the small side with fewer than 800 ewes and lambs on offer. Prime lamb prices eased, with the best primes making $98 and other good lambs selling from $90, and medium $80-$90. Good store lambs sold up to $75, and medium $50-$60. Heavy prime ewes fetched $85$96, medium $70-$80, and light $45-$55.

BAY OF PLENTY BAY OF PLENTY Paddocks are drying off and a moderate yarding of cattle at RANGIURU last Tuesday sold under a cautious cloud. The yarding was mainly small lines of mixed quality, which was also reflected in the prices. Boner Friesian cows, 370-525kg, sold for $1.62-$1.69/kg, while in the prime pens a line of 724kg Hereford-Friesian steers returned

CLOSE SCRUTINY: Buyers look over stock at last week’s Temuka sale. More photos: farmersweekly.co.nz

$2000 at $2.76/kg, with 622626kg lines making $2.65-$2.72/ kg. Friesian bulls, 566kg, sold for $2.61/kg, which tidied up the prime section. In the store pens older cattle numbers were limited to small lines, though the steers had good weight and sold for $2.55-$2.64/ kg, with all lines over $1200. Few lines offered had over 10 head in the 1-year pens, and prices were variable, dependent on quality and condition. The highlight in the steer pens was 11 crossbred, 450kg, at $1170, with most other lines trading at $860$1040. Hereford-Friesian and Charolais heifers, 340-351kg, sold for $900, $2.56-$2.65/kg, while autumn-born lines mainly traded at $600-$750. Hereford-Friesian also featured in a small weaner offering, and heifers, 122-126kg, sold for $400$420, and bulls, 123kg, $525. WAIKATO FRANKTON ticked another week off last Wednesday, with a moderate yarding of mainly small lines of all ages. Boner cows kicked off proceedings, and heavier types traded at $1.54-$1.59/kg, while second cuts returned $1.45-$1.50/ kg. Hereford bulls were the talking point of the R3 section, and at 614-616kg, sold for $2.69/kg, with an older line of 666kg returning $2.71/kg. Run-with-the-bull Hereford heifers, 400kg, traded at $2.66/kg, with other small line of the R3 age group making $2.52$2.63/kg. Rising-two cattle all came forward in small lines, with most under 10 head. Steers were very mixed in quality, which saw a wide variance of prices, while in the heifer pens Hereford-Friesian and Hereford-cross, 296-331kg, returned $760-$850, $2.55-$2.65/ kg. Friesian bulls, 307-342kg, sold for $775-$855, $2.50-$2.52/kg.

TARANAKI TARANAKI With little need to offload, STRATFORD throughput numbers last Tuesday and Wednesday were moderate, with 175 sold each day. The prime market continues to sell above schedule, while a grass driven store market rewards vendors, New Zealand Farmers Livestock agent Stephen Sutton reported. Prime numbers were low, and steers easily managed $2.80$2.90/kg, with heifers trading for $2.54-$2.71/kg. Hereford bulls featured last Tuesday, and the ex-service lines sold for around $2.80/kg, with lighter lines, 450530kg, selling as sires for $1600$1700, at well over $3/kg. Small lines were common last Wednesday, and the abundant feed drove prices. Hereford-cross and Red Devon-cross R3 steers, 470-651kg, sold for $2.90-$2.93/ kg, and a line of Hereford-Friesian heifers, 675kg, returned $2.72/kg. Back in the steer pens and quality was more mixed in the R2 pens, with 18-month dairy-cross, 342375kg, making $2.82-$2.86/kg, with lesser quality 15-month also at these levels. Hereford-Friesian heifers were a highlight, and at 367-377kg, made $2.55-$2.71/kg, and 360kg, $1060, $2.94/kg. Weaner numbers were low, and Charolais bulls, 127-177kg, sold to $540-$610. POVERTY BAY POVERTY BAY There was no reprieve for vendors at MATAWHERO, where the absence of any significant rainfall kept buyers at bay yet again. Numbers were lower which did prevent many major change in prices, but there was still a little weakness found in lighter lines. The heaviest lines were only moderate in size, meaning they only reached $54-$56. The cut below was mostly $46-$47, while the bottom end were $36.50$42.50.

A few good conditioned twotooth and four-tooth Coopworth ewes went for $76-$81, while a handful of lighter types were $45$50. Prime ewes were mainly $50$60, while prime rams made $60-$66. HAWKE’S BAY HAWKE’S BAY What can only be called a drought sale eventuated at STORTFORD LODGE last Wednesday, with the majority of the yarding only on offer due to the worsening dry condition and lack of good stock water in Hawkes Bay. The market for both cattle and lambs was well supported by outside buyers, which resulted in a very positive sale. More ewes than expected came to sale last Monday, with 1700 offered. A small offering of very heavy ewes sold to $105-$123, while heavy types traded at $76$85, medium $67-$75, and light, $44-$62. Lamb numbers just managed to nudge over 100, which is reflecting the lack of finished lambs available, and prices remained steady. Better mixed sex made $84-$98, and a heavy line of ram lambs sold to $112. Angus steers featured in the rostrum, and the first line on the bridge made up over half the yarding at 29 head. Determined bidding from Manawatu saw them sell for $2.82/kg, with a smaller line of 533kg making $2.72/kg. Hereford heifers made up the rest of the sale, and 557kg returned $2.50/kg, and 538kg, $2.64/kg. Just over 8000 store lambs were offered last Wednesday, with most forward types, though a few lines were showing signs of the dry conditions. Prices were mainly steady, but the market firmed for medium males, and also the lighter mixed sex, with satisfactory results posted. Medium to good male lambs traded at $57-$75, and

MANAWATU MANAWATU Cattle prices continue to be solid at RONGOTEA, as the buyers keep coming in search of mouths for the good grass growth. A good offering of R3 cattle sold well, to strong competition from the bench, New Zealand Farmers Livestock agent Darryl Harwood reported. Hereford-Friesian steers, 406502kg, returned $2.68-$2.99/kg, while beef-cross, 345-490kg, made $2.18-$2.85/kg. In the bull pens Friesian, 470-550kg, sold well at $2.31-$2.62/kg, and Jersey, 420590kg, $2.22-$2.58/kg. The best of the Hereford-Friesian heifers sold to $2.73/kg, while Friesian, 435462kg, fetched $2.14-$2.18/kg. The R2 pens mainly housed bulls and these sold to expectations. Angus-cross, 335kg, returned $850, $2.54/kg, while Friesian, 288-397kg, traded at $717-$990. Demand for Jersey was solid as well, and 345-407kg managed $760-$895, while crossbreed, 220-290kg, made $440$580. Hereford-Friesian heifers, 192-285kg, sold for $570, and Friesian, 222kg, $485. The weaner pens were busy with a mainly bull line up, and prices steady, with stand-outs including Friesian, 122-193kg, at $430-$560, and Hereford-Friesian, 111-162kg, $560-$650. Jersey bulls were off the pace however, with 120-137kg lines selling up to just $290. Hereford-Friesian heifers, 109-155kg, made $505-$545. A good offering of boner cows sold on a slightly softer market, with Friesian and crossbred, 507583kg, making $1.58-$1.65/kg, and Jersey, 485kg, $1.41/kg. Porkers made $140 and weaner pigs, $70 - $92, with mixed age ewes returning $63-$69, and mixed sex lambs, $63-$98. Results were very pleasing at DANNEVIRKE last Thursday, with prime ewes and store lambs selling on a lifting market, PGG Wrightson agent Bjorn Andersen reported. A yarding of 600 store lambs

Markets

met a determined bench of buyers looking for mouths to graze surplus grass, and with quality good, ewe lambs traded at $64-$74, and cryptorchid, $77$79. Mixed sex lambs returned $50-$79. Prime ewes proved popular with prices also lifting. Just over 1000 were offered, with prices ranging from $67-$91.50, while 184 store ewes sold for $55-$82. A small offering of prime lambs returned $80-$107. FEILDING returned to big sheep numbers at the prime sale last Monday, with 2800 lambs and 2300 ewes offered. Prime lamb prices eased slightly, for a yarding that included a large number of forwards stores. Most lines traded at $84-$100, with tops selling to $116. A small store offering returned $66-$87. Ewe prices lifted, and light to medium types stood out, lifting to $48-$85, while heavy ewes returned $85-$100. Cattle numbers picked up, though only to 61 head, with numbers split almost evenly between bulls and cows. The bull market was steady, with top lines trading at $2.60-$2.65/kg for Hereford, Friesian and Devon, while Jersey, 455-480kg, returned $2.35-$2.43/kg. Friesian cows, 423-540kg, sold on an easing market for $1.60-$1.65/kg with 4 good cows making $1.75/kg. The region had another good soaking which must have held numbers back from the market as both sheep and cattle sections had meagre offerings at Friday’s store sale. As a consequence of the larger proportion of lambs from drought affected regions, the average weight of the lambs was reduced on last week and, with prices not altering much, this gave a firm tone to the store lamb section considering the top price was $4/ head less than last week with the heaviest lambs 5kg lighter. The top sale price this week was $90 for 77 shorn blackface mixed-sex lambs and another 177 woolly cryptorchids made $89 to start the sale.

ON HIGH: Treading the boards at last week’s Temuka sale.

More photos: farmersweekly.co.nz

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017 All weight ranges were firm with the lightest lambs probably the firmest. The heavier end of lambs were $82-$90, easing to $61-$77.50 for mediums and $45-$71 for lighter types. Ewes made $80-$89. The store cattle market was little more than a bull sale as bulls made up more than half the yarding. Hardly any steers ventured out although 21 Shorthorn cross rising three year steers sold for $1720, $2.96/kg, to be steady and no younger steers stood out. The older Friesian bulls are slowly declining in line with meat schedules and are selling around the $2.60/kg levels. Useful, autumn born Friesians were around $3/kg. Few heifers caught the eye and this section may have continued the easing tone of last week although five good Angus heifers sold for $1720, $2.68/kg. Steers; R3, 572-580 kg, $1695$1720, $2.96; R2, 355-422 kg, $960-$1230, $2.70-$3.01; bulls; R3, 415-624 kg, $900-$1750, $2.16$2.80; R2, 251-423 kg, $610-$1092, $2.43-$3.07; R1, 96-147 kg, $430$570, $2.92-$5.83; heifers; R3, 411640 kg, $1080-$1720, $2.62-$2.70; R2, 295-442 kg, $755-$1150, $2.15$2.71; R1, 96-177 kg, $490-$575, $3.25-$5.21; cows & calves, 703 kg, $1570, $2.23. For full reports on these sales visit agrihq.co.nz/farmer CANTERBURY CANTERBURY There was no stopping the local bids at CANTERBURY PARK last Tuesday, with plenty of grass and not enough available stock resulting in strong prices for store cattle and sheep. A moderate yarding of store lambs could have been sold twice over, with the mainly mixed sex line up lifting. The yarding of 2200 saw light lambs make $64-$74, and medium $76-$87. Prime lambs are being actively sourced to fill space, and traded at $82-$119, though most fell in the $90-$119 range. A lift in demand for ewes saw prices improve $3-$4. The top lines made $117-$139, and the

next cut $89-$111, with just a small number selling under $80. The strength in prices flowed into the rostrum also, and both the prime and store cattle had a good day. Nearly half the prime steers were 600kg plus and sold for $2.85-$2.95/kg, with forward stores selling to $3.10/kg. Angus and Angus-Hereford heifers traded at $2.85-$2.95/kg, with most other types making $2.75$2.80/kg. Bull numbers were low, but most were 620-702kg, and sold for $2.78-$2.85/kg, with the top beef cows earning $1.95-$2.15/kg. The store section was made up of mainly 18-month steers and heifers, with a large number purchased out of the calf sales last year. Vendors were rewarded and Angus-cross and Angus-Hereford steers, 356-433kg, made $1065$1345, with the top lines up to $3.40-$3.47/kg. Charolais-cross, 380-394kg, returned $1220-$1265, $3.21/kg, and Hereford-cross, 376405kg, $1105-$1200, $2.93-$3.01/ kg. Hereford-cross heifers, 323360kg, sold for $975-$1030, with a line of Angus, 330kg, making $1050 at $3.18/kg. Weaner numbers were low but prices equally as strong, with Hereford-cross heifers, 179-191kg, returning $570-$620, while other lines sold to $725-$755 for 233260kg. SOUTH CANTERBURY SOUTH CANTERBURY TEMUKA held their mixed age ewe fair this week, bringing the total of ewes sold over the two fairs to 33,300. Markets held up well last week, with the big number of stock offered easily absorbed by buyers keen to have abundant pastures eaten. Store lamb numbers jumped up to 6100 last Monday, with quality mainly medium to good. Prices were steady, and most made $63$79, with the top 1000 at $85-$115. Prime lamb numbers also lifted and like last week, common ground was $80-$119. Just over 2500 ewes should have been hard going, but again the market held it’s own, and heavy ewes made $90-$119, and light to medium, $60-$89.

The total yarding of 510 prime cattle consisted of 270 bulls, of which most were Jersey. These sold on a steady to firm market, with 462-513kg earning $2.51$2.58/kg, and better types up to $2.58-$2.67/kg. Hereford bulls, 572-817kg, sold for $2.65-$2.77/ kg on a firm market, and a small offering of Friesian, 525-606kg, returned $2.54-$2.64/kg. Beef heifers were a highlight, and Angus and Hereford, 415720kg, made $2.70-$2.80/kg, while Friesian prices were variable, though most traded at $2.45$2.55/kg. Returns for cows were solid, and high yielding beef lines sold for $1.96-$2.09/kg. The top Friesian and Jersey made $1.80-$1.87/ kg, while Friesian, 420-507kg, returned $1.55-$1.73/kg. The lighter end of the Jersey lines traded at $1.50-$1.57/kg. Wednesday saw 17000 mixed age ewes penned, and the market held up well to the last bid, with good interest from buyers replenishing breeding flocks, and those looking for trading ewes. Genuine capital stock ewes mainly traded at $125-$140, with the top 5yr ewes making $115-$118. There was a lot of competition on medium framed ewes in the $95-$100 range. The top Romney ewes made $106$116, while Perendale mainly traded at $90-$114. The first of the weekly store cattle sales last Thursday was well attended by cattle and buyers, though a large weaner bull section struggled as the buyers for these cattle were not there. Older cattle sold well, and R2 HerefordFriesian steers, 334-389kg, made $2.89-$3.00/kg, while better quality 393-441kg returned $12401390, $3.15-$3.16/kg. Hereford and Angus-cross steers made similar values, and surprisingly so too did Hereford-Friesian heifers, 385-418kg, which sold for $1205$1310 at $3.13/kg. Weaner bull numbers were well above expectations and prices came back. The price range for Friesian tightened to $410-$535 for 90-160kg, while 171-175kg

returned $585-$590. A smaller offering of Hereford-Friesian managed to sell at steady values, and 162-178kg returned $620$700, while Jersey bulls sold for $250-$400. OTAGO OTAGO The BALCLUTHA sale last Wednesday included the IHC Calf sale, which saw calves sell well to good demand, with older exotic cattle also sought after. Sheep also came forward in good numbers, though store lamb quality was mixed. The top store lambs traded at $76-$81, with medium earning $64-$69 and light, $42-$52. Prime lambs sold well, and top lines returned $99-$115, medium $88-$97, and light $81-$87. Ewe numbers lifted, which took the pressure off buyers and prices eased $3. Heavy ewes sold for $100-$120, medium $88-$97, and light $67-$84, with 2-tooths returning $73-$91, and rams, $57$69. SOUTHLAND SOUTHLAND A relatively busy day at LORNEVILLE last Tuesday saw good numbers of store lambs and cattle on offer. Cattle sold to good demand, as did over 1600 store lambs. The store lamb pens had something for everyone, with top lambs making $75-$80, medium $60-$70, and light $50-$55, with tail end types down to $40-$45. Prime sheep numbers were low by comparison, and lamb prices were steady, with heavy types making $100-$199, medium $89-$99, and light $75-$85. Ewes continued to sell to high demand, which was reflected in the prices. The top lines returned $100-$132, medium $74-$90, and light $50$75. In the cattle pens good prime steers, 480-600kg, returned $2.55$2.65/kg, while the best of the heifers were beef-cross, 440kg, at $2.60/kg. Dairy heifers, 380kg, sold for $2.20-$2.40/kg. Bulls sold over a tight range, and 450-580kg made $2.50-$2.60/kg. Cow prices remained steady, with top lines making $1.70-$1.85, medium $1.60-$1.70/kg, and light, $1.40$1.50/kg. Weaner bulls and heifers featured in the store pens, and prices reflected continued good demand. Good quality bulls, 160-200kg, sold for $550-$600, and medium, 120-150kg, $400$500, while heifers sold to $700. The older cattle pens included R2 Hereford-cross heifers, 460kg, at $1230, with medium types, 324kg, earning $980. Steers of similar breeding, and 360kg made $1050, and 15-month Angus bulls, 409kg, returned $1250. February started off on a quiet note at CHARLTON last Thursday, with moderate numbers of store lambs, plus a small yarding of prime sheep. A good gallery of buyers ensured the markets were solid, PGG Wrightson agent David Morrison reported. Store lambs held prices similar to the past few weeks, and top lines sold for $75.50, medium $68$70, and light $50-$55. Prime lambs sold well, and heavy types made $111, medium $91, and light $85. The ewes sold to a top of $115, with medium making $80-$85, and light, $50.

Markets

48 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – February 6, 2017 SI SLAUGHTER LAMB

NI SLAUGHTER MUTTON

NI SLAUGHTER STEER

($/KG)

MEDIUM TO GOOD MALE LAMBS AT STORTFORD LODGE

($/KG)

($/HD)

3.10

5.20

65-75

high lights

Buying pattern changes Annette Scott

annette.scott@nzx.com

EED abundance and a shortage of stock continue to keep South Island store lamb and ewe fair markets strong. While there were still some very keen sheep people out there, farmers were now buying in a different way, South Canterbury livestock broker Peter Walsh said. “We are looking at a solid industry at the moment but we are seeing changes,” he said. With 35,000 breeding ewes sold through the Temuka sale yards over the past two weeks and a further 20,000 ewes sold in North Canterbury ewe fairs last month, there was certainly good demand. “But what we are seeing more and more of is farmers more discerning in what they are paying for as they look at what they can get from the ewes in the first year rather than a breeding ewe longer term and prices are reflecting that. “It’s a shift from breeding to trading, which has become quite the fashion,” Walsh said. “I wouldn’t say it’s a buoyant market but it’s certainly solid and firm.” Exceptional lines of small numbers of Border Romney first cross ewes had sold from $180-$238 with younger sheep averaging $135-$170 and annual draft ewes $95$115. “You really can’t afford to

LAST CALL: PGG Wrightson Mid Canterbury livestock manager Greg Cook auctions off a line at the Temuka ewe fair. Photo: Annette Scott

pay more than $120-$140 for a ewe or a 16 kilogram lamb at $85.” A very strong schedule for mutton on a per-head basis had prime ewes making more than a 15-16kg lamb and while the store market was strong that was farmers anticipating good winter schedules, Walsh said. PGG Wrightson South Canterbury livestock manager Joe Higgins said store lambs were “going like hot cakes” at the annual onfarm lamb sales. “Some of that is grass related but there are lot of people wanting to trade

rather than breed and they are prepared to take the chance amidst the strong demand in a flourishing market,” Higgins said. In contrast, the ewe fairs had been a bit subdued. “Buyers definitely picked the eyes of the highproducing sheep and the rest tapered off but in saying that we thought it would be a tough grind to sell 22,000 ewes today but it wasn’t as tough as we anticipated and pretty consistent.” Summing up the market strength Higgins believed it was largely because of the

changing face of the farming. “I honestly think it’s a reflection of younger farmers thinking towards trading and using the lambs to fatten,” he said. Store lamb numbers jumped up to 6100 at the weekly Temuka sale with most lambs making $63-$79, with the top 1000 making $85$115. The Rollesby Valley onfarm sales on February 9 would offer 22,000 lambs and it was expected the market would remain firm throughout that and the upcoming Tekapo sales, Higgins said.

$2.50-$2.56/kg $64-$74 R2 Friesian bulls, 350450kg, at Kaikohe

Light mixed sex lambs at Canterbury Park

Drought decree must be close IT WOULD be wrong of me to be living in Hawke’s Bay and not talk about what can now only be considered a drought. As I type this it is raining, apparently because Napier is Suz Bremner holding an international cricket AgriHQ Analyst match but we had only 14mm through January and relentless wind from mid-November on has dried out the paddocks and tested senses of humour, leaving the once-green paddocks looking very brown and barren. No, we are not the first area and will not be the last to be in this situation. Hawke’s Bay has had some whoppers in the past but we are living it now and the repercussions for farmers are already starting to be felt. Northland, of course, is also in the same boat this year and North Canterbury can easily relate, having been through this the last couple of years. Panpac records for the Kaweka Forest show for October to January it has been the lowest rainfall since records started in 1967 – lower even than the drought years of 82-83 and 97-98. Now that speaks volumes, considering the MetService outlook says February brings little relief. The last two weeks have seen many farmers offload and stock is heading out of the area at a fast and furious rate. We have been very fortunate other areas have so much feed around. There has been strong competition from other areas of the North Island and the South Island for lambs, which has been our saving grace. Lamb prices, in particular, have improved in the last few weeks as more buyers from outside the area come in search of lambs, as they are either too expensive or not readily available in other areas, including the South Island. A large number of unit loads of lambs are crossing the Cook Strait with their focus on the light to medium types that fit into a $55-$65 budget. suz.bremner@nzx.com

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