Farmers Weekly NZ July 02 2018 by AgriHQ

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Fuel tax hits Neal Wallace neal.wallace@nzx.com

NEW Auckland regional fuel tax costing some individual vegetable growers up to $100,000 a year has the industry fuming, labelling its introduction chaotic and rushed. Horticulture NZ chief executive Mike Chapman is also bemused why KiwiRail is exempt from the tax but offroad vehicles used by growers, horticulturists and farmers who will have to seek a tax rebate are not. Auckland fuel consumers started paying an extra 11.5c a litre plus GST fuel tax yesterday to fund new city roads and to upgrade public transport but its blanket application and lack of a simple rebate system for offroad use affecting 441 growers has them angry and frustrated. Dacey Balle, a director of Balle Bros, one of the country’s largest produce growers, said half the two million litres of fuel they use a year in Auckland is off road and a further 500,000 litres is used by company vehicles travelling outside the city. In the haste to introduce the new tax the council and Government had failed to develop a simple system for claiming rebates for the offroad use of vehicles or fuel-using machinery. A Transport Agency spokesman said growers should keep accurate

records of fuel used and where it was used to help them claim a rebate. Balle believes growers will get diesel from outside Auckland where appropriate but some smaller operators might just wear the cost. Balle Bros business straddles Auckland Council and Waikato Regional Council territories, with farms in Pukekohe, Waikato, central North Island and Canterbury. Auckland road users face a double blow. From October 1 the Government excise tax for all fuel users increases 3.5c a litre or just over 4c a litre including GST. Chapman said growers, having traversed a convoluted paper-trail application system he described as archaic, might have to wait three months to receive rebates – the result of the Government not consulting those who have to use it. Transport Minister Phil Twyford has also described it as an archaic system and promised to review it in 12 months but Chapman said that work should have been done before the tax was introduced. Such was the rush to make it law he could not get a copy of the legislation on Wednesday – the day after it was passed by Parliament and four days before it came into force. He described the whole process as bad law making, saying the Government has commissions looking at various topics including the country’s taxation system yet has imposed a new tax.

WHAMMY: Dacey Balle faces extra fuel tax bills on the 2.5 million litres a year his firm uses. Photo: Peter Payne

Chapman said the primary sector should have been treated the same as KiwiRail because tractors and machinery spend little time on roads.

“What the Government does not understand is that the rural community, farms, vegetable gardens and orchards are large industrial sites that deserve to

be exempt like KiwiRail.” Chapman warned the remaining 11 regional councils and five unitary councils are all interested in fuel taxes. He has requested a meeting with Twyford to continue to lobby for an exemption or some other relief for his members. Potatoes NZ vice-chairman and Pukekohe grower Bharat Bhana said two-thirds of the nearly million litres of fuel he uses a year is for machinery behind the farmgate. The rush to get the regional fuel tax in place means Bhana has not been able developed a system so he can claim fuel rebates but expects to have to employ extra staff to process it. Bhana believes growers will initially absorb the higher production costs but eventually they will be passed to consumers, reflecting the reality of Auckland’s higher fuel prices. He fully expects that emboldened by its adoption in Auckland, other councils will seek to impose their own regional fuel taxes. “I guarantee that if it works the whole country will jump on the bandwagon.” Bhana also has reservations the extra income will alleviate Auckland’s transport problems, saying congested roads will not be fixed by more public transport. His company delivers produce to a depot 40km away in the city but congestion restricts the driver to two deliveries a day.

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NEWS

WEATHER OVERVIEW This week kicks off with another colder southerly air flow. The past few weeks of southerly flows are quite different to the warmer-than-average air flows we had a lot over the past few years. However, it will be short-lived with high pressure again returning from Australia, settling things down and bringing, for the most part, mainly dry conditions. Eastern and inland areas will be driest with most showers confined to coastal fringes. The high will mean more cold nights but, hopefully, with a bit more sunshine during the days. Not much in the way of extreme weather coming up at this stage with most weather being driven by systems in the Tasman Sea now.

NZX PASTURE GROWTH INDEX – Next 15 days

Pasture Growth Index Above normal Near normal Below normal

7-DAY TRENDS

7 World dairy price outlook rosy World supply and demand fundamentals are favourable for New Zealand’s dairy exports for the rest of 2018 and might continue for some time, dairy analysts say. Get exports one brand �� 8 A day out racing for farm families �� 14

Rain With the bulk of our weather coming from the Tasman Sea this week we’d expect the highest volume of rain to be on the West Coast and other western regions. However, generally speaking, most places have belowaverage rainfall this week.

Wind Southerly quarter winds dominate for the first part of this week then high pressure rolls in bringing lighter, more variable breezes. Later in the week we might get some northerly quarter winds before switching to westerly quarter again afterwards.

Organics sector is growing fast �� 15

Newsmaker ��24 New Thinking ��25 Opinion ��26 World ��29-30

REGULARS

Temperature Another colder start to the week thanks to southerly quarter winds then high pressure drifting from the Tasman Sea will lock in the colder nights. Towards the end of the week we might have a slightly milder airflow.

Highlights/ Extremes Not much in the way of extreme weather at this stage but there are likely to be a few snow flurries on the ranges/mountains today along with big seas to the east. Frosts return this week to sheltered places.

14-DAY OUTLOOK

For further information on the NZX PGI visit www.agrihq.co.nz/pgi July is clearly the month with the least amount of available sunlight plus the coldest air so don’t expect much pasture growth in the coming weeks. The positive at the moment is that we’re seeing an uptick in high pressure which should bring soil moisture levels back down a bit. Most places have a soil moisture surplus. The upper third of the nation appears to be having some pasture growth and we expect the status quo nationwide for the next week.

SOIL MOISTURE INDEX – 29/06/2018

Real Estate ��31-33 Employment ��34 Classifieds ��34-35 Livestock ��35

40 Bobby kill likely to rise

Alliance will pick up bobby calves as usual but in line with Primary Industries Ministry instructions, Alliance livestock and shareholder services general manager Heather Stacy says.

Source: WeatherWatch.co.nz

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Growers claim win in Psa case Richard Rennie richard.rennie@nzx.com A LANDMARK High Court decision has upheld kiwifruit growers’ claims Crown negligence caused losses as a result of the 2010 Psa outbreak and might leave the Government exposed to a massive compensation bill. Growers who subscribed to the kiwifruit claim sought $400 million when the case went to court last year and the decision could set a new precedent for Crown liability on biosecurity incursions. The judgement comes after a marathon, multi-million dollar litigation process with Justice Jillian Mallon determining the 212 growers were owed a duty of care by the then Ministry of Agriculture and Forestry (now MPI) for controlling what products could be legally imported to New Zealand. She determined the risks associated with contamination of the pollen products bringing in the disease should have been obvious to the agency. The Psa strain has been determined to be Chinese sourced. Mallon’s ruling does not, however, extend to post-harvest operator and orchard owner Seeka, the only post-harvest company that signed up to the court action. She determined post-harvest operators were one step removed from the direct harm suffered by growers so were less closely linked to any consequences of the ministry’s failure. Kiwifruit claim representative Grant Enyon said the decision drew a line in the sand after a long and difficult eight years for growers. “They were heavily reliant on MPI to protect our borders. “This action is about seeking accountability for the incursion that devastated the industry. “MPI knew for many years Psa was a significant risk.

PLAIN: The primary sector now has a very clear mandate to hold the Crown accountable for biosecurity, kiwifruit growers spokesman John Cameron says.

This action is about seeking accountability for the incursion that devastated the industry. Grant Enyon Kiwifruit grower “We hope the Government accepts the court’s decision.” He confirmed the Crown has 20 working days to appeal against the decision as do the plaintiffs. Determining the exact level of any compensation payment

promises to be a drawn-out affair. In a short written statement MPI said it is carefully considering the findings and implications for current and future biosecurity activities. “Once we have completed consideration of the judgement a decision will be made on whether to appeal. “That decision must be made by the Solicitor General not MPI.” Any payout from the appeal process will go only to the 212 growers who signed up and if paid in full will amount to more than $2m a grower. Enyon said the compensation group is open to any early settlements that could be proposed.

Grower spokesman John Cameron said he had been reasonably confident the judge would rule in favour of growers. “The duty of care was going to be a difficult one to prove but in realty the judge realised no one else could do it. “Most importantly, the NZ primary sector now has a very clear mandate that if they can prove MPI is responsible for any incursion there is the ability there to exercise this process.” Seeka chief executive Michael Franks said he had mixed emotions following the significant decision. “I am of course pleased on behalf of growers that the judge has ruled the way she has but

disappointed to not be included as a post-harvest processor.” He said it is up to the group’s claims committee to determine if they will appeal against the decision to exclude Seeka. He cautioned the decision does not necessarily open the door to other claims for biosecurity incursions. “Not every case of a biosecurity incursion happens the way Psa happened. The circumstances can differ. “I am comforted that the new Government has invested more in biosecurity controls.” In a statement NZ Kiwifruit Growers Incorporated said it is not appropriate for the body to comment until it knows whether either party will appeal.

These ewes know how to count Bruce and Denise Cameron farm 270ha near Palmerston, Otago, running 1300 Wairere ewes and 70 steers to finish. “High performing stock is the key to our operation. We need to make every lamb count. The great mothering ability of our ewes and the super low wastage is the key to the result. Our scanning averages 182% and lambing at 163%. We usually draft around 500 POM at weaning at 17kg, with the balance going over the next four months between 17 and 18kg.”

“These sheep really can count.”

www.wairererams.co.nz | 0800 924 7373

Bruce and Denise with grandson Reid

News

FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

MPI scotches professor’s blog Annette Scott annettescott@xtra.co.nz CROSS-SPECIES transmission is not a risk in the spread of Mycoplasma bovis, Ministry for Primary Industries response director Geoff Gwyn says. Animals other than cattle are considered to be dead-end hosts and not important in the ongoing spread of the cattle disease. “There is no scientific evidence that non-cattle species can act as a source of infection to cattle,” Gwyn said. He expressed concern the matter continues to be raised given it has potential to unnecessarily heighten farmers’ anxiety. “Our firm view is the transfer of M bovis from non-cattle to cattle is not of material concern,” Gwyn said. He was responding to a blog posted last week by Lincoln University Professor Keith Woodford that suggested there is extensive overseas evidence M bovis can transfer between species and infect sheep, goats, pigs, deer and even poultry. Woodford’s blog said the implications had not been considered in the M bovis response. Gwyn said MPI has, throughout

the response, regularly reviewed academic literature regarding the likelihood of other species contracting and spreading the disease. “We have not found any published information that provides evidence that non-cattle species infected with M bovis can spread the disease.” MPI has carefully reviewed the blog and the scientific evidence Woodford examined. “In this instance it seems that Professor Woodford has unfortunately overstated and misconstrued the scientific evidence in this blog entry. “If Professor Woodford has information he thinks we have not uncovered from our extensive literature review we would be pleased for him to provide it to us. “We will continue to review and consider any new evidence that comes to light,” Gwyn said. MPI has acknowledged there have been rare occasions when M bovis has been reported to have caused other animal species to become infected and sometimes sick. Published case reports include infections in pigs, sheep, goats, deer and chickens. However, they are rare events that require the non-cattle animals to be exposed to very

high amounts of M bovis and also likely needs them to have other reasons for being susceptible, such as having reduced immunity to disease in general because of stress or other factors. Despite some industry speculation that MPI is pegging back on its eradication decision, Gwyn said it remains focused on eradication. “Our priority is to contain and eliminate the disease from the places where it is detected. “Other species are not a priority in this response because there is no evidence that there is a substantial risk of them spreading the disease and hindering the eradication effort,” Gwyn said. Meantime, a Technical Advisory Group report highlights the variation in opinion within TAG about the likelihood of success of eradication. Four TAG members now believe, given the number of new infected properties and notices of direction, that logistically and economically eradication is no longer achievable or economically rational. Six believe eradication is technically achievable given that while the scale of the job has increased substantially, the epidemiology does not appear to have changed.

But significant caveats exist, including concern about the rate of ongoing new infection and serious concerns about ongoing social licence and personal impacts of eradication. The report says TAG has been cautious about the number of undetected IPs for some time and remains concerned over the likely number of unrecorded young stock movements that might have occurred. While no new clusters have been found TAG noted there has been no surveillance outside of the trace forward process, beyond bulk milk testing. As all the IPs have been found as a result of high-risk traces and most other routes of transmission are not being actively pursued there is insufficient data to define whether other transmission routes have occurred. “The documents provided to TAG do not provide sufficient information for detailed analysis of the epidemiology of the modelling approach. “Inferences from unvalidated predictive models should be viewed with caution,” the report said. TAG said it has concern the impacts of an eradication campaign might be greater than the benefits given the concerns

NO PROOF: The Primary Industries Ministry can find no evidence other species are a risk in the spread of Mycoplasma bovis, its response director Geoff Gwyn says.

over support from within the industry for an ongoing campaign and the fatigue being experienced by farmers and MPI staff. There are 43 active infected properties including five new sheep and beef farms notified in the past week.

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Bid to get cash from agents fails Nigel Stirling nigel.g.stirling@gmail.com A FORMER livestock agent under investigation by the Serious Fraud Office is being sued by a finance company for $1.3m. Hastings-based StockCo applied for a summary judgement to recover the money from former Rural Livestock agents John Williams and Richard Sharpin in the High Court last year. But Associate Judge Tony Christiansen dismissed the application because of significant gaps and conflicts in evidence that could be resolved only at a full trial. The SFO began investigating Otago-based Williams after a complaint from Rural Livestock in August 2016 but is yet to decide whether it will lay criminal charges. The Christchurch-based firm is itself bracing for multiple lawsuits from clients claiming to be hundreds of thousands of dollars out of pocket as a result of livestock transactions by Williams. Companies Office records show Williams and Sharpin were joint directors and shareholders of RJL Farming – a livestock trading company formed in 2012 and removed from the companies register in March this year. In his affidavit to the High Court last year Sharpin said he resigned as a director of RJL after becoming aware of the SFO’s investigation of Williams. Sharpin said he was not aware of any alleged fraud by Williams but admitted to leaving the financial affairs of the company to his colleague. In its statement of claim StockCo said it issued a default payment notice for $1.34m to RJL and Williams and Sharpin as guarantors. The amount demanded included repayment of an $835,000 loan to buy 1050 dairy heifers. The balance is made up of

MISSING? The whereabouts of a mob of dairy heifers is part of a case involving Rural Livestock, two former agents and their company RJL Farming, StockCo, Austrex and the Serious Fraud Office.

The Christchurchbased firm is itself bracing for multiple lawsuits from clients. penalties, interest and GST. StockCo said it had security over the livestock by virtue of a Master Livestock Agreement between itself and RJL from 2012. However it couldn’t find the stock to take possession of them. Williams, in his affidavit, said StockCo had in its statement of

claim misstated its contractual relationship with RJL. He said the livestock were bought in fulfilment of an oral contract made with the finance company’s managing director Marcus Kight in November 2014. The oral contract overrode earlier livestock and security agreements between StockCo and RJL and guarantees given by Williams and Sharpin. Under that new arrangement RJL agreed to source 2000 dairy heifers on behalf of StockCo to help fill a contract between it and live cattle exporter Austrex (NZ) to supply the Chinese market. Williams and Sharpin through RJL were to buy the heifers on

behalf of StockCo clients in their capacity as Rural Livestock agents. At no time was RJL itself liable to repay money advanced for livestock purchases, Williams said. Instead, as the heifers were onsold by StockCo clients to Austrex the proceeds were to be passed directly to Rural Livestock, which would deduct its commission before paying back StockCo, which had funded the purchases in the first place. But with significant numbers of livestock already bought, StockCo’s contract with Austrex was cancelled. RJL was left with the heifers,

which it was forced to begin selling at a loss, and extra grazing costs for those it was unable to find immediate buyers for. Williams said he had earlier been assured by StockCo it would make good any losses suffered by RJL though that was disputed in Kight’s affidavit. In his affidavit Sharpin said StockCo’s claims that money and livestock were unaccounted for were wrong. He said sales notes were issued to RJL by Rural Livestock and totalled $414,000. A further 251 heifers were grazing on farms owned by Williams and Sharpin in south Otago and on another farm at Omakau in central Otago. Williams said he was told by StockCo proceeds from the heifers sold had been withheld by Rural Livestock because of a debt owed to it by the finance company. That was disputed by StockCo’s finance manager who, in an affidavit, said Rural Livestock denied withholding any money. While there had been talk of Austrex being in the market for heifers Kight denied making an oral agreement with Williams to source them on StockCo’s behalf. Rather, the money advanced to RJL had been for it to buy the heifers on its own account. RJL had defaulted on that loan and StockCo was enforcing its security as well as guarantees from Sharpin and Williams. But in dismissing the application for a summary judgement Christiansen said it was impossible to reach a verdict on the limited affidavits and statements provided. “The court agrees the defendants have raised substantial arguable defences that cannot be resolved in the summary judgement context.” Christiansen ordered StockCo pay the legal costs of Williams and Sharpin.

Wool carpets not on Government agenda Neal Wallace neal.wallace@nzx.com GOVERNMENT plans to spend $2 billion building 100,000 new houses in the next decade are unlikely to provide a boost for the ailing crossbred wool industry as price dictates the use of synthetic carpets and upholstery over wool. Government departments overseeing the KiwiBuild project responding to questions from Farmers Weekly all said there will be no requirement to use wool carpets and upholstery because of the higher price. New Zealand First announced on July 10 last year a policy to put wool carpets back on the floors of government and campaigned on the policy at last year’s election. But a spokesman for party

GONE: Winston Peters’ campaign policy to put wool carpets on floors again did not survive the coalition talks.

leader Winston Peters said it did not survive the coalition talks with the Labour Party. “It didn’t make it through coalition talks, however, it remains a NZ First policy and NZ

First will continue to advocate for the NZ wool industry where possible.” The Ministry for Business, Innovation and Employment is overseeing KiwiBuild but

a spokesman said it will not prescribe wool carpets, insulation and upholstery be used. “KiwiBuild is not being prescriptive about what carpets and internal upholstery should be in KiwiBuild homes. “That is the prerogative of developers.” Refresh Renovations, a nationwide home renovation company, said wool carpets sell for $50 to $70 a square metre, solution dyed nylon $30 to $50, polypropylene $25 and wool-synthetic blends $30 to $55. The NZ First policy was for all government buildings to use natural fibre carpets and insulation instead of synthetic and in announcing the policy last July said the Ministry for

Social Development was buying synthetic carpet. Peters said from January 2011 to January 2017 Parliament had installed 25% more synthetic carpet than wool. A Housing NZ spokesman said the department decided in 2011 to switch to synthetic carpets because of the price difference and extended warranties. In the year ended June 30 2017 it bought about 488,000 square metres of synthetic carpet. The spokesman could not say what the price differential was between wool and synthetic carpets. “Housing NZ is always open to approaches from service and product suppliers and people can register for this on the appropriate government procurement websites.”

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

World dairy price outlook still rosy Hugh Stringleman hugh.stringleman@nzx.com WORLD supply and demand fundamentals are favourable for New Zealand’s dairy exports for the rest of 2018 and might continue for some time, dairy analysts say. Milk supply growth across the big seven producing regions has slowed and the pace of growth is below expectations in the northern hemisphere spring, Rabobank senior dairy analyst Michael Harvey, in Melbourne, said. World prices have lifted in the second quarter of 2018 with butter and cheese doing the best. The European Union has made inroads into its stockpile of skim milk powder and premium prices are being paid for Oceaniasourced cheese and skim milk powder. Forecast farmgate milk prices have increased. Fonterra NZ opened the new season with $7/kg milksolids and Fonterra Australia opened with A$5.85 and made a prediction of $6.20 (NZ$6.66). Saputo Australia opened the new season on July 1 with $5.75 for both its new former Murray Goulburn and existing Warrnambool Cheese and Butter suppliers. It will take some time for dairy farmers to respond with higher milk production and Rabobank expects growth in the major exporting countries to be positive into 2019 but at a manageable level and in line with consumption trends. “Overall, the market fundamentals point to a period of relative stability in global prices.

“It may take a major weather event – particularly during the Oceania spring – to see a major shift in price direction as 2018 comes to an end,” Harvey said. Rabobank raised China’s annual net import growth requirement for 2018 to 16.7% in liquid milk equivalent terms, including 22% in the second half. ANZ rural economist Con Williams, in his final AgriFocus publication before leaving the bank, said global milk supply is growing at or slightly below trend and that supports the durability of the pricing cycle.

Overall, the market fundamentals point to a period of relative stability in global prices. Michael Harvey Rabobank Forecast solid demand in key world markets and a lower NZ dollar will support the milk price, which ANZ forecasts will be $6.75/ kg. Williams projected that to a cashflow for a fully paid up Fonterra supplier of $7.15 and a solid average farm profitability before tax of just over $2000/ha, the highest since 2013-14 and the second-highest in the past decade. To extend the good news, he raised the medium-term milk price view to $5.75-$6.75 on the basis of the lower NZD, milk price manual adjustments including premiums for products sold

outside the GDT channel and solid prospects for international pricing. NZ milk production could be due a bounce-back after two seasons of decline but the risk factors are spring/ summer weather, high empty cow numbers, continued culling because of the spread of Mycoplasma bovis and new palm kernel feeding restrictions. The Ministry for Primary Industries highlighted the strength of China’s demand for NZ dairy products in its Situation and Outlook report in June. China is the number one market for NZ dairy products taking 28% of exports. Its imports from NZ are made up of whole milk powder 33%, butter, anhydrous milk fat and cream 20%, skim and butter milk powder 29% and infant formula 36%. Australia takes 32% of infant formula and Hong Kong 19%. China is NZ’s biggest market by value, $4.65 billion in the year to March 2018, followed by Australia at $1.16b then the United States, Japan, United Arab Emirates, Malaysia, Indonesia and Philippines. Infant formula exports rose by 50% to $1.2b in the year to June and MPI forecast further increases to $1.4b and $1.5b in the four years ahead. NZ is now the second-largest provider to China behind the European Union with its strong growth by companies from the Netherlands and France. MPI forecast export revenue for dairy will be $16.6b in the year to June 2018, up 13.6% on the year before. It then predicted revenue will rise a further 3% this season to

GOOD SIGNS: Milk production growth has slowed and prices are up, Rabobank senior dairy analyst Michael Harvey says.

$17.2b, stick at that level for a further season then rise 3% in 2021 and 2022. Along with the expectation NZ milk supply will not grow significantly, the conclusion to be drawn from the MPI revenue projections is that farmers could enjoy about $7/kg in each

of the five seasons ahead. The immediate forecast of $7.06 for 2018-19 would generate $350,000 operating profit for the average dairy farm. “It should provide farmers with greater ability to invest in more resilient farming systems and pay down debt,” MPI said.

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

NEWS BRIEFS Applications open APPLICATIONS are now open for Silver Fern Farms Plate to Pasture Youth Scholarships. The scholarships award six young people $5000 to develop their careers and capabilities in the red meat sector. Applications are open to people with interests in red meat, food production, agriculture, food marketing, marketing and sales, research and development, food processing, cooking and food technology. Visit silverfernfarms.com for full details.

Pokeno ready in 2019 SYNLAIT’S new nutritional factory at Pokeno, Waikato, will be ready for the 2019-20 season. And the functionality of the first nutritional spray dryer at the plant has been expanded to meet forecast customer demand. The dryer will be able to produce nutritional, formulated powders including infantgrade skim milk, whole milk and infant formula base powders and the capacity has increased to 45,000 tonnes from an initial 40,000t. The capital investment is estimated at $250 million, excluding the land. Synlait will pay for it with cash and loans. Synlait Pokeno will produce infant-grade ingredients while registration is obtained for infant formula base powder production.

Slash will be cut FOREST owners say the industry is focused on measures to make sure a repeat of the recent floods carrying harvest debris out of forests and into Tolaga Bay isn’t repeated 25 years from now. Forest Owners Association president Peter Weir said different silvicultural planning and improved forest engineering and harvest management in sensitive landscapes will reduce the risk considerably. “It’s a priority for our forest engineers, planners and managers to work with scientists as well as local and central government to make sure we reduce the risk of similar debris floods. In the immediate term we are printing a revised set of harvest slash management guidelines and making them widely available. We want to make best forest practice a universal practice. The industry will be putting more resources into understanding the mechanisms of hillside failures and what can be done to stop wood being entrained by them or reducing the impact if they do occur.”

Get exports one brand NEW Zealand’s farming industry faces a raft of challenges and branding is key to success, speakers told Federated Farmers’ national conference. Brand strategist Brian Richards, founding partner at Richards Partners, said it is critical NZ learns to sell less for more and takes advantage of the vote of confidence from the wider world the country already has regarding its products. “Building a new perception of NZ’s food and beverage offerings requires a significant mindset change throughout the entire industry,” he said. The focus needs to move from beasts in boxes to understanding the lifestyle, health, culture and wellbeing of different markets around the world. Richards called on the farming industry to show greater collaboration, to develop an over-arching umbrella brand for NZ agribusiness similar to the tourism industry, which has attracted significant government funding. Some sort of universal accreditation is critical. NZ enjoys status as a clean, green country that is probably worth about a 15% price premium at retail that’s yet to be realised. “If we are not a certified nation in food within the next 10 years we will be shut out of markets,” he said. Richards’ comments were echoed by Agriculture Minister Damien O’Connor who said the Government’s aim is to move past volume to value, producing the finest food and fibre for the world’s most discerning customers. To compete in a fast-changing world that includes plant-based meat the sector needs to leverage its natural advantages such as free-range, pasture-fed and other attributes to clearly show consumers its products are different and cannot be replicated in a lab.

Building a new perception of NZ’s food and beverage offerings requires a significant mindset change throughout the entire industry.

JOINT: New Zealand agribusiness needs one umbrella brand, marketing strategist Brian Richards says.

“There is huge potential here in NZ for our primary industries,” he said. Among other things, maintaining the social licence is key. “Environmental sustainability, pasture-fed, good animal welfare, good working conditions are all parts of this important story that we must tell to

our value-driven consumers,” he said. O’Connor said it is up to NZ to brand its goods, not just alongside other milk but as NZ milk, as NZ meat. “We have unique attributes and we can develop them further and we have to get out there and brand them.” – BusinessDesk

KiwiRail has heard farmers Neal Wallace neal.wallace@nzx.com KIWIRAIL says it has listened to the rural sector’s concern and substantially revised its policy for administering private crossings of rail corridors. Its property strategy and investment manager Stephanie Campbell said the

policy is in the final stages of development but it was too early to give specifics. “However, we have listened to the concerns of the rural sector and have substantially revised what was proposed last year to ensure the focus is clearly on safety. “We expect to be in a position to comment further soon,” she said. “As we have said previously, KiwiRail is not seeking to make money from the process but to protect the health and safety of crossing users, KiwiRail staff and passengers. The new policy will reflect that.” Last year KiwiRail said it plans to introduce a minimum annual $750 charge for inspecting and documenting and the 1287 private crossings and underpasses over its rail corridor. That now appears to have been amended though no details have yet been released. KiwiRail said last year the fee covered the cost of staff maintaining a legal agreement with landowners, ensuring users maintain crossings to an agreed standard and meet minimum

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health and safety requirements such as approaches, sight lines and signs. Last year the Transport Agency told Farmers Weekly it does not charge farmers inspection and administration fees for stock underpasses to try to make them attractive for farmers to install and improve road safety. Spokesman Andy Knackstedt said underpass users have to maintain the structures for fair wear and tear but the agency meets the costs of any major work. “The cost of inspections and any repairs we need to undertake is sufficiently low that we waive any cost recovery in the interests of keeping the process attractive,” Knackstedt said. KiwiRail has been further put under the gun by landowners for increasing rent for leased land, in some cases by more than 400%. Campbell said that issue is separate to the crossing fee. “The crossing policy is a standalone policy focused on ways to improve the safety of crossings and seeks to help reduce the likelihood of injury and death at rail crossings. “This is separate from our land use policy, which outlines how to document the use of KiwiRail land and any charges relating to the use of KiwiRail land. That land use policy and the charges under it remain in place.”

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Mycoplasma bovis – some common questions and answers WHAT’S THE PLAN FOR CALF DAYS THIS YEAR?

HOW CAN I PROTECT MY FARM FROM MY NEIGHBOURS’ STOCK?

We recommend that schools and clubs don’t hold their calf days this spring. Bringing animals from different herds together can risk spreading disease. It’s a pretty low risk, but we are in a critical phase for tracking down and eradicating Mycoplasma bovis, and it’s helpful to not mix animals at events like calf days if possible. If schools and clubs do go ahead with events, make sure you have talked with your communities and taken all sensible precautions. Our website has ways to minimise risks: www.mpi.govt.nz/bovis

The disease doesn’t easily spread over the fence – so far we’ve not seen this happen in New Zealand. Talk to each other about how to manage your biosecurity. If your neighbour is grazing the boundary, keep your cattle back, and use electric fence outriggers on the boundary so there is no nose to nose contact.

WHAT WOULD HAPPEN IF MY FARM CAME UNDER SUSPICION OF MYCOPLASMA BOVIS? If our tracing of cattle from infected farms suggests you may be at risk, you’ll have a call from our casing team. They’ll ask questions about animals you’ve brought onto your farm and when. Information you give them, about things like the timing of movements, may rule your farm out as a risk. If not, one of our vets will book to come to your farm and take blood samples from some of your animals. At this point you may be put under biosecurity controls (a Notice of Direction or a Restricted Place Notice). Testing can take some weeks, and several rounds of tests can be needed to confirm if the disease is present. About 70-80% of farms under Notice of Direction tested are negative, the controls are lifted, and you can carry on farming.

WHAT HAPPENS IF MY FARM TESTS POSITIVE? If infection is confirmed, the farm is an Infected Property. If you don’t have a Restricted Place Notice this will be issued now. You will be given a personal case manager (Incident Control Point Manager/ICP Manager) to work with you on plans for your farm and culling of your cattle. The Rural Support Trust and your industry organisations are available to help. Your farm would be cleaned and disinfected (by a contractor and at our expense) and then would need to be kept free of cattle for 60 days. If restrictions are lifted, your farm can then be restocked, which we can help you plan. There is compensation available for culled cattle. Partial payments can be made within a fortnight of culling.

WHAT’S AN IP, AN RP AND A NOD? An Infected Property (IP) is a farm where a genetic test (PCR) confirms Mycoplasma bovis. All cattle will be culled from these farms. Infected properties are under legal controls known as a Restricted Place Notice. A Restricted Place (RP) is a farm where there is either confirmed disease or a very high suspicion of disease. Unconfirmed RPs have usually had test results indicating the disease is present, and are having more testing. Cattle and other risk goods (equipment, vehicles, farm equipment) cannot be moved on or off the farm without permission from MPI. Under the eradication programme, many RPs will be culled. A farm under a Notice of Direction (or NOD) is where we believe there has been a risk movement – like a transfer of cattle from an infected or high-risk property and testing is underway. Farms under a NOD cannot move cattle and risk goods off the farm. 70-80% of farms under a NOD prove to be negative and the controls are lifted.

WHAT ADVICE CAN YOU GIVE ABOUT BUYING STOCK? The infected and most suspicious farms are in lockdown. This includes farms under Notice of Direction. Remember, 70-80% of these farms end up testing clear. Do your homework about the original source of the cattle, their health history, and find out what milk was used when they were reared – whole milk or calf milk replacer. If you don’t like the answers, don’t buy the animals. Always apply good biosecurity measures when introducing new animals to your farm – like keeping them separate from the rest of the herd for a period to observe their health. DairyNZ have a helpful pre-purchase checklist: www.dairynz.co.nz/pre-purchase

WHY DIDN’T YOU CLOSE COOK STRAIT TO CATTLE MOVEMENTS WHEN IT WAS FOUND IN THE SOUTH ISLAND? The risk of disease transfer across the Strait was assessed as low. Imposing legal controls would have needed strong scientific justification. It would have created a disproportionate impact on normal farming activities, and have appeared internationally as a more severe biosecurity issue, creating a high risk of trade impacts. The disease was in the country for 18 months before we were aware of it and a significant number of risk cattle movements had already occurred between the North and South Islands during this time.

CAN I PURCHASE RAW MILK FROM A DAIRY FARMER TO REAR CALVES? Feeding unpasteurised raw milk from cows infected with Mycoplasma bovis (or any mastitic or sick cow milk) is a high-risk activity. You should try to get some confidence the source herd is Mycoplasma bovis-free. Ask for the results of the recent bulk milk tests. If feeding whole milk, consider pasteurisation of the milk. In smaller operations it is possible to treat the milk with citric acid. You can also use calf milk replacer. Full information is on our website and on DairyNZ’s website.

Mycoplasma bovis – the numbers so far… We have been working hard to hunt down the disease. Where it has been found, we have been working closely with affected farmers to eradicate it from their farms and return them to business as usual as fast as we can. We’re making good progress. Some key numbers are:

WHY WON’T YOU TELL US WHERE THE INFECTED FARMS OR THE SUSPECT FARMS ARE?

• Since July last year, we have found over 50 properties where Mycoplasma bovis has been confirmed (these are called Infected Properties).

Along with the affected farmers, we will let immediate neighbours of Infected Properties or high-risk properties know that Mycoplasma bovis is present. This helps them to take steps to improve on-farm biosecurity and reduce the risk to their own stock. This balances the privacy concerns of individuals with the need for farmers to protect their own farms and support their communities. NAIT numbers of affected animals will soon be published on the MPI website to give farmers another way to check movements of stock. Farmers need to complete their Animal Status Declarations (ASDs), disclosing the health history of their stock, and whether their farm has been under any movement controls.

• Put in perspective, this is out of more than 20,000 dairy and beef farms nationally. • Over half of those Infected Properties have had their cattle culled and been moved into a process of cleaning, disinfection and laying fallow for 60 days. • We have finished this process on 11 of those, meaning those farmers have had controls lifted and can now restock. • Overall there are currently some 180 properties where we have restricted the movement of animals on or off the farm – this includes the Infected Properties and properties where we have a strong suspicion that Mycoplasma bovis is present. • We have been able to reduce the number of properties under movement restrictions, because of progress in our testing, where suspect farms have tested clear, restrictions have been lifted and they go back to normal farming. The fight against Mycoplasma bovis is a joint effort between MPI, DairyNZ and Beef + Lamb New Zealand; with significant support from: - Dairy Companies Association of New Zealand

- Rural Support Trusts

- New Zealand Veterinary Association

- Rural Women NZ

- Meat Industry Association

MPB0031

- Federated Farmers

www.mpi.govt.nz/bovis

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

www.rural-support.org.nz

News

FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

EU free to cut sheep meat quotas Nigel Stirling nigel.g.stirling@gmail.com TWO of the country’s top trade lawyers believe New Zealand has a solid legal argument to challenge plans to split lucrative quota for agricultural exports to the European Union. Last month the European Commission outlined the position it plans to take into talks over the future of the quotas following Britain’s planned departure from the 28-country bloc next March. The proposal would see those quotas carved up between the United Kingdom and remaining EU countries based on their respective share of imports from quota-holding countries from 2013 to 2015. Based on NZ’s sheep meat exports in those three years the quota of 228,000 tonnes would be split in half between the UK and the EU. That would mean NZ exporters would go from a position of paying no tariffs on exports up to 228,000 tonnes to either the UK or the continent to one where they would face a 50% tariff on exports of over 114,000 tonnes in either market. Asked to reassure NZ farmers they will be left no worse off by the

proposal during her recent visit here the EU’s top trade official Trade Commissioner Cecilia Malmstrom said she couldn’t. “This is a lose-lose situation. “We all lose out of the British leaving. “We will have to divide the quota somehow.”

This is a lose-lose situation. We all lose out of the British leaving. We will have to divide the quota somehow. Cecilia Malmstrom European Union But Chapman Tripp trade law consultant and former trade negotiator Tracey Epps disagrees. Changes to quotas are dealt with under Article 28 of the General Agreement on Tariffs and Trade (GATT), which obligates the EU to consult quota-holders and to endeavour to maintain a general level and mutually advantageous concessions not less favourable to trade than that

provided for before consultations begin. Epps said splitting the sheep meat quota in the manner proposed runs counter to the intention of Article 28. “A simply 50:50 split in the quota between the UK and the EU-27 may well suggest that such endeavours have not been made, as this outcome would not maintain a level of access for NZ exporters as favourable as that which they currently enjoy.” Head of international trade at law firm Russell McVeagh Sarah Salmond said it is clear NZ sheep farmers would be worse off if the EU split the quotas as it proposes. “If they split the quotas in two the quantity remains the same but we lose the quality of the access because we lose that flexibility to send our product wherever the price is highest so, ultimately, we will be worse off. “I think the EU would argue it but I think they would lose because I think NZ has right on its side.” But Epps said while there is an obligation on the EU to consult quota-holders there is no requirement to get their approval before changing quota arrangements. “If agreement cannot be

DEAL NOT NECESSARY: The European Union must consult New Zealand about changing its sheep meat quota but doesn’t have to get its agreement, trade law expert Tracey Epps says.

reached then the EU is free to go ahead and make the modification regardless.” Epps said Article 28 allows NZ to impose tariffs against EU imports

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Call to target water controls Neal Wallace neal.wallace@nzx.com AN INDEPENDENT report on managing water quality could result in greater regulation of sensitive catchments and some farming activities. The Land and Water Forum’s fifth and final report in nine years suggests making environment plans mandatory in some catchments and tighter regulations for monitoring and discharging nitrogen. The forum also acknowledged degraded water quality is not just a farming issue, identifying degrading urban water as a significant problem. Solutions to improve the quality of rural water include mandating farm environment plans, especially in catchments with sediment issues, and regulation of risky land management practices. Federated Farmers national board member Chris Allan welcomed the report saying it deals with the tough issues, is consistent with previous reports and reinforces the role of good farm management practices. More central Government guidance is needed on definitions in the National Policy Statement for Freshwater, such as maintenance along with coordinating investment in research and science, he said. Land and Water Forum chairman Dr Hugh Logan said

water management has been reformed in the last five years but more is needed. “Local authorities and courts have been left to interpret and implement the emerging framework without any effective oversight, which has resulted in slowed and inconsistent implementation.”

The Billion Trees programme should give quick wins in managing sediment as well as wider environmental, social and economic benefits. Dr Hugh Logan Land and Water Forum The forum identified three immediate steps to help prevent further degradation: ensuring at-risk catchments have an effective plan of action, ensuring the Resource Management Act and its National Policy Statement for Freshwater are being applied appropriately and changing the national objectives of the policy statement for fresh water. Managing sediment would be aided by expanding erosion and management plans and

mandating farm environment planning, especially in catchments with sediment problems. The report also advocated national regulation for unspecified risky land management practices and ensuring complementary afforestation and climate change policy also support freshwater objectives. “The Billion Trees programme should give quick wins in managing sediment as well as wider environmental, social and economic benefits,” Logan said. Dealing with nitrogen use and contamination is the forum’s most contentious issue with no consensus reached. “The debate is not primarily about environmental limits although how limits are arrived at and how discharges are measured is contested. “The debate is about what share of allocation people get within limits and, where catchments are over a limit, where do the reductions in allocation fall to meet the limit and how much headroom should be created for whom?” Logan said there is general support for allowing plans that successfully address nitrogen discharge to continue and for identifying catchments where it is a problem that is not being addressed. All sectors need to display good management practice and certificates of compliance for

HAPPY: The Land and Water Forum report deals with the tough issues, is consistent and reinforces the role of good farm management practices, Federated Farmers board member Chris Allen says.

nitrogen should not be allowed to be used to avoid obligations. It advocates high nitrogen emitters in over-allocated catchments reduce their discharges and for the Government and councils to sort out discharge and allocation tools. Allan said there needs to be acknowledgement that results from monitoring nitrogen are constantly changing as technology improves so allocation limits need to be flexible. Taupo, for example, uses the same version of Overseer to allocate nitrogen use in the catchment even though several later versions have been released. Allan said allocations need to be tailored to the region and take account of aspects such as soil type and rainfall. BusinessDesk reports the forum

is putting itself into abeyance and has called for the creation of a new government agency, a Land and Water Commission, to provide national direction and oversight. Its latest recommendations have been accorded immediate priority by Environment and Primary Industries Ministers David Parker and Damien O’Connor, who said efforts to properly pool poorly shared information on freshwater catchments at a national level will begin immediately. While regional councils hold a lot of information there is no national picture, the ministers said. “The joint Ministry for the Environment/Ministry for Primary Industries Water Directorate will work with regional councils to pull this information together.”

Synlait ups environmental goals SYNLAIT Milk has committed to significantly reducing its environmental impact over the next decade. The plan includes reducing greenhouse gas production and water consumption, moving away from coal-fired boilers and offering juicy cash incentives to farmers who meet sustainability targets and who don’t use palm kernel in feed. The company told staff, dairy farmers and partners at its annual conference in Christchurch it is committed to reducing greenhouse gas emissions by 35% onfarm and 50% off-farm by 2028. The onfarm reduction includes 50% cuts in nitrous oxide, 30% in methane production and 30% in carbon dioxide. The move comes after the Government opened a consultation on its Zero Carbon Bill, which focuses on whether a new emissions reduction target for 2050 should treat all gases that cause climate change the same or take a different approach to different gases

depending on whether they cause short-term or long-term warming. The discussion document looks at three different options. - Net zero carbon dioxide by 2050, which would reduce net carbon dioxide emissions but not other gases like methane or nitrous oxide, which predominantly come from agriculture. - Net zero long-lived gases and stabilised short-lived gases by 2050, which would reduce emissions of long-lived gases including carbon dioxide and nitrous oxide to net zero by 2050 while stabilising emissions of short-lived gases including methane. - Net zero emissions by 2050. Synlait said it will reduce water consumption by 20% both on and off-farm and cut nitrogen loss onfarm by 45% by 2028. It will also offer a premium to farmers who do not feed palm kernel to their cows. The milk processor has also committed to never building another coal-fired boiler and

working hard to address existing coal infrastructure, it said. It will also commission New Zealand’s first large-scale electrode boiler in January to provide renewable process heat at its Dunsandel facility. Over 10 years its estimated emissions savings are roughly the same as the emissions from 9600 households. “We’re stepping up to take responsibility for our business and demonstrate leadership in the primary industry that will benefit all New Zealanders,” chief executive John Penno said. Climate Change Minister James Shaw said “The fact that Synlait believes it can reduce greenhouse gas emissions on its farms by more than a third in just 10 years using existing technology and best practice demonstrates what is possible for the dairy sector as a whole. “Its commitment to building no new coal-fired boilers and reducing existing coal use is also very encouraging.” Penno said to achieve its targets Synlait will leverage its

Lead with Pride programme and tailor support to each dairy farm. The programme was launched in 2013 and rewards independently-certified dairy farmers for meeting best practice in four pillars: environment, animal health and welfare, social responsibility and milk quality. Synlait milk supply manager David Williams said 28% of its 200-pluse farms are already certified, with more working toward certification. The programme has three tiers and each includes a premium payment. The company will increase payments in the top two tiers to further incentivise farmers, Williams said. For example, farmers who meet additional criteria in each of the four best practice pillars and who are independently certified annually will see their premium increase from 6 cents a kilogram of milksolids to up to 20 cents. Farmers can move to the top tier after 12 months if they meet additional criteria. That could

GOING GREENER: Synlait Milk is offering big incentives to farmers to cut greenhouse gas emissions, water use and palm kernel, chief executive John Penno says.

see the premium increase to a possible 25 cents a kilogram of milksolids. Synlait shares last traded at $11.54, up 0.4% and have gained 59.7% so far this year. – BusinessDesk

MORE: NEWSMAKER P24

News

14 FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Youngsters get say on the future FARMSTRONG has developed a new online survey to better understand the pressures facing younger farmers and farm workers and ask them what works to improve their wellbeing. The nationwide, rural wellbeing initiative provides tools and resources for farmers, growers and farm workers to help them better cope with the ups and downs of farming. It will help provide a clearer picture of the things that might work to improve the wellbeing of younger farmers and farm workers. “In 2015, before Farmstrong was launched, we completed a survey of farmers asking questions about their wellbeing,” Farmstrong project leader Gerard Vaughan said.

Most respondents were over 35 years old so three years down the track we think it is really timely to survey the under-35s and find out what works for them too.” The survey questions were shaped by in-depth interviews with a small number of young farmers and farm workers from around the country in May. Farmstrong is now following up that work with the online survey being done in association with Young Farmers. “We have developed two surveys for under 35-year-olds, one for women and one for men. “Most of the questions in the two surveys are similar but there are some that are specific to men or women, such as the networks they belong to or the print

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Anyone who has done a Farmstrong wellbeing survey in the last three months should not do it again but to be included in the draw, can email info@ farmstrong.co.nz using the heading Prize and with their first name. “This a great opportunity for younger farmers and farm workers to make their voices heard. “Farmstrong would love to hear what they see as the challenges to their wellbeing and also what they see as the solutions.

“Young people are key for the future of the industry and knowing what works to look after their wellbeing is a vital part of this.” Vaughan said.

Men who are farmers and farm workers and aged under 35 can complete the survey at https://www. surveymonkey.com/r/MenUnder35 Women farmers and farm workers who are under 35 can complete the survey at https://www.surveymonkey. com/r/WomenUnder35

Annette Scott annettescott@xtra.co.nz

agrievents RMPP Action Network – Facilitator training courses For rural professionals or farmers looking to run an Action Group under RMPP Action Network. No course fees. Register at www.actionnetwork.co.nz/training Lead Facilitator workshops · Timaru 3 & 4 July · Dunedin 18 & 19 July · Hamilton 1 & 2 August Action Network Fundamentals & Extension Design workshops · Christchurch 11 & 12 July · Dunedin 25 & 26 July · Rotorua 14 & 15 August For more info contact info@actionnetwork.co.nz Friday 06/07/2018 FMG Young Farmer of The Year Grand Final Practical Day Venue: Donovan Park, Bainfield Road, Invercargill Time: 8:00am – 3:00pm Admission: Free

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magazines they read,” Vaughan said. The survey is confidential and takes only 10 minutes to complete. It is open till July 16. A link to the survey is also on the Farmstrong Facebook page and website (www.farmstrong. co.nz). Results from the survey will be available on the Farmstrong website by the end of August. Those who complete the survey will go in a draw to win one of three $100 Countdown vouchers.

A day out racing for farm families

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Saturday 03/11/2018 – Sunday 04/11/2018 Manawatu A&P Show Venue: Manfield, South Street West, Feilding Time: 9:00am – 4:00pm Admission: Door Sales Only

WHERE IT’S AT: Young people, like the members of the Handy Landys from Lincoln University who volunteer their time on farms in need of a hand, are key to the future of the rural sector.

THE Ashburton Trotting Club is calling farming families to swap a day on the farm for a day at the races. With the cattle disease Mycoplasma bovis affecting hundreds of Canterbury families a couple of farming identities in the region recognised the need to get families away from the stresses of the farm to enjoy themselves in a fun environment. Rural advocate and Farmers Weekly columnist and video reporter Craig Wiggins met Harness Racing New Zealand then approached Ashburton Trotting Club president and farming identity Craig Harrison to find a way to lift the spirits of Canterbury farming families. “We saw a great opportunity here for the community to support stressed rural families to quite simply have a fun day at the races,” Harrison, a former stock agent, said. “Ashburton had a race meeting scheduled so we decided to target that as the day and the event.” That day is set for July 15 and there’s an open invitation for all Canterbury farming families to get to the Ashburton Racecourse. “We don’t mind if it extends further than Canterbury. It’s not about where the families come from it’s about getting

STARTER’S ORDERS: Event organisers Craig Harrison and Craig Wiggins hope to fill the Ashburton Racecourse grandstand with farming families on July 15. Photo: Annette Scott

It’s not about where the families come from, it’s about getting them off the farm for a day. Craig Wiggins them off the farm for a day,” Harrison said. Wiggins said it was about giving back to rural NZ and farmers feeling good about themselves. “We have had overwhelming support from

businesses that service the rural industry and have some great people and sponsorship on board and we still have more coming forward.” The day is free for all the family with both children’s and adult entertainment including complimentary food and drinks. There will be nine races and for those who know nothing about racing it can be a learning day. “There will be opportunity to get up close and personal with the drivers and we will have an education centre to help people at the tote. “Best of all there will be

losing tote ticket prizes. “It’s school holidays, it’s mid-winter, it’s pre-calving and lambing and it’s a break from the farm for a fun day out.” Organisers expect to cater for 300-400 families. “If we get more we will cope,” Wiggins said. “We are on the lookout for some mystery trips so we can truly get some of those most severely impacted off farm for a few days. “We would love to hear from people who can offer suitable holiday accommodation to get these families away for a decent break.”

News

FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Organics sector is growing fast Annette Scott annettescott@xtra.co.nz NEW Zealand can lead the world in organic innovation and guaranteed quality and authenticity, Organics Aotearoa New Zealand chief executive Brendan Hoare says. Its 2018 market report shows a national and global mood for change to natural, ethical, sustainable food. Consumers want change so they can live their values. Producers and farmers are seeking change to do what is good for the land they love. And global markets are demanding greater choice as organics go mainstream. NZ is well placed to face the challenge, Hoare said. The report shows the value of the NZ organic sector has swelled to $600 million, up 30% since 2015, or 10% annually. The domestic organic market, up 8.8% and with retail sales worth $245m a year, is growing almost twice as fast as conventional products at 4.8% a year. While supermarket, grocery and speciality store organic sales are still small as a percentage of total sales the findings show Kiwi consumers are taking

GOING UP: The value of New Zealand’s organic sector is increasing at 10% a year, Organics Aotearoa chief executive Brendan Hoare says.

organics mainstream. Organic supermarket sales were $216m for the year to May but they still add up to just 2.2% of total supermarket sales. Speciality stores sold $30m worth of organic products. Exports, too, are booming, up 42% since 2015 to $355m as consumers in Asia, including China, North America and Europe seek out NZ organic fruit, vegetables, meat, dairy and wool products.

Fresh fruit and vegetables lifted 26% to $136m, dairy, meat and wool jumped 45% to $99.5m while honey exports lifted from $230,000 to $1.4m. “The report clearly indicates that Kiwis want to be part of the global movement towards sustainability and at a time when humanity grapples with the complexity of global environmental, economic, social and health issues organic continues to offer a solution that

is profoundly simple,” Hoare said. “The world wants what NZ has to offer and we have the capability to grow our share of the global market where the organic food segment alone is worth €85 billion and is growing 10.5% a year.” The report, which takes a holistic approach across the value chain from consumer to producer, also includes an investigation on the true cost of organic versus conventional food production. OANZ’s job as the national voice for the organic sector is to anchor the foundations to support growth and capture opportunities for organics. “We’re doing that by sharing knowledge, identifying opportunities from evidencebased reporting, building a network of organic experts and educating consumers and retailers on what a real deal organic is.” OANZ is also leading the lobby to work with the Government to ensure the industry has the fundamentals of regulation and a national standard to define organic that aligns NZ with international practice. Chairman Doug Voss said a single, mandatory, national organic standard underpinning legislation will put NZ’s organic regulatory system on the same

The report clearly indicates that Kiwis want to be part of the global movement where organic continues to offer a solution that is profoundly simple. Brendan Hoare Organics Aotearoa footing as many other countries and be a win-win for all. “I welcome the progress being made and look forward to playing our part in making this happen. “It will significantly enhance export opportunities, encourage investment in organic production and give consumers and customers peace of mind and the confidence to purchase certified organic product.” OANZ is the national representative organisation for organic producers, manufacturers, certification agencies, exporters, wholesalers and retailers. The number of certified organic operations in 2018 is up 12% to 1118 licensees and 1672 certified enterprises.

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farmersweekly.co.nz – July 2, 2018

SHARE: Rural health providers want a share of the tourist tax to pay for services provided to thrill seekers.

Photo: Sara Orme/NZ Story

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Rural health wants its share of tourists’ cash Neal Wallace neal.wallace@nzx.com A RURAL South Canterbury general practitioner was paid $13 for each of the 150 emergency calls she made in the last year, a pay rate described by the Rural GP Network as a joke. The network’s chief executive Dalton Kelly said with such low pay rates plus the demands on rural GPs it is understandable rural health professionals are leaving the sector, prompting a call for a portion of the proposed tourist tax to be directed to rural health services. Kelly said rural GPs and nurses are regularly called to tend to sick and injured tourists and unlike an urban incident, patients cannot be

transferred to someone else who is on call. An agreement between 75 rural GP practices, the Ministry of Health and the Accident Compensation Commission means St John can request a GP or nurse attend an incident where the response time would otherwise be significant or extra medical skills are needed for a patient. Many of those calls are to tourists but just $1.8 million is provided for the 75 Primary Response in Medical Emergencies (Prime) contracts nationwide. Some practitioners claimed being involved in Prime cost them $100,000. On a recent Saturday South Canterbury doctor Sarah Creegan was called out four times.

The Government has released a discussion document on a proposed International Visitor Conservation and Tourism Levy, expected to be set at $25 to $35 a visitor to generate $60m to $80m in its first year, equivalent to 1% of the average visitor spend. Tourist numbers are forecast to grow from 3.8m now to 5.1m in 2024, and Tourism Minister Kelvin Davis said it is intended that revenue be split between tourism and conservation infrastructure. Kelly acknowledged rural GPs and nurses will be in a lengthy queue seeking access to tourist tax funds but their role needs to be acknowledged as important to tourism as walking tracks, toilets, scenery or activities.

“It is an undervalued service that should really be further up the list,” he said of health funding. Because of the nature of rural incidents, health professionals are often put in difficult situations. It is not uncommon for a nurse to be called to an incident, drive their own car, tend to a victim then, because of staff shortages or a lack of expertise among volunteer ambulance crews, ride with the patient to hospital then have to recover their car from the scene of the accident. Davis said consultation on the new levy will run until July 15 with policy decisions expected in September. Legislation will then be put to Parliament and he expects the levy to be in place in the second half of 2019.

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Log prices high but local activity slows NEW Zealand structural log prices are at their highest level for 25 years as local mills compete with exporters to secure supply for the domestic construction market amid strong demand from China. The average price for structural S1 logs increased to $135 a tonne this month, from $134 a tonne last month, and marking the highest level since 1993, according to AgriHQ’s monthly survey of exporters, forest owners and saw millers. The average price for NZ A-grade export logs hit a four-year high of US$145/ JAS from US$144/JAS last month and US$132/JAS a year ago.

Local sawmills are competing with the export market to source logs for local construction at a time when demand in China has stepped up after Asia’s largest economy clamped down on the harvesting of its own forests and reduced tariffs on imported logs to meet demand in its local market. “Export markets have remained an enticing avenue for log traders and there’s little to suggest this will change in the coming months,” AgriHQ analyst Reece Brick said. “China’s appetite for NZ logs means it’s still the price-setter for sales into other countries.” Nearly all AgriHQ survey

respondents reported steady or marginally firmer prices across structural S1 logs. The winter weather had slowed harvesting in some areas but came at an opportune time as some North Island mills experience softer-thanexpected local demand for structural timber because of caution across the housing sector, he said. “Whether harvesting remains disrupted in the coming weeks is unlikely to make much difference to the medium-term direction of the domestic sales. “The pull of the export market is still pushing forest owners to try to negotiate contracts at or near the

export market level. “This is a situation that is very unlikely to change in the next few months.” The volume of logs being taken from Chinese ports has slowed as a result of shorter working hours because of hot summer temperatures, however, that isn’t uncommon at this time of year and coincides with slower harvesting in NZ, which should keep the market in balance in coming months, Brick said. Forest products are NZ’s third-largest commodity export group behind dairy and meat products. Trade data for May is due out on Wednesday. – BusinessDesk

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18 FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Iwi groups in big orchard deal Richard Rennie richard.rennie@nzx.com ONE of the largest orchard deals ever completed in New Zealand has just been signed, returning it to local iwi hands after years in foreign ownership. The 98 canopy hectare orchard is one of the country’s largest privately owned portfolios and was sold through tender to an iwi collective comprising Whakatane based Ngati Awa Group Holdings, Rotorua based Te Arawa Group Holdings and Rotoma No1 Incorporated. The properties had been owned by Matai Pacific, a company comprising two-thirds United Kingdom investment and the rest from NZ. Production from the orchard is split evenly between Green and SunGold and is expected to produce 1.3 million trays of each, about 1% of Zespri’s total NZ supply capacity. The operation also includes 100ha of grazing land, two residential buildings and an option to buy $5.2 million of Zespri shares. The return to local iwi ownership comes after what was described as a closely contested tender process with a third of bids

BIG BUY: Iwi groups have joined forces to buy a big kiwifruit orchard with 100ha of grazing land and two houses.

from overseas parties and twothirds local industry players from both post-harvest and orchard ownership groups. Bayleys national country manager Duncan Ross said the sale is notable on a number of levels. “Firstly, you have the scale of the operation and the fact it attracted significant interest both onshore and offshore, with those foreign interests conducting a

considerable amount of due diligence on it.” Offshore interest included unnamed parties that already have significant primary sector holdings in NZ. The deal is also notable in that it attracted strong bidding at the higher end of the market range, rather than a discount on value per hectare that sometimes accompanies larger land offerings. It is admirable how iwi managed

to secure the large sum required to complete the deal in a relatively short time, Ross said. “To compete at the top end of a hot sector like kiwifruit is no mean feat. “They have obviously got good support from all shareholders and from bankers too.” Based on market valuations the orchard portion of the deal alone could amount to between $66m and $74m before allowing for

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Zespri shares and the value of the bare land. Kiwifruit orchards in the western Bay of Plenty are selling for about $450,000 a hectare for Green and up to $1m a hectare for SunGold. Ross said there are some other significant sized off-market deals going ahead for kiwifruit blocks, signalling greater investment from big, existing orchard operators and post-harvest processor investment. “This is quite similar to what we are witnessing in the viticulture sector too.” Te Arawa Group Holdings chairman Andrew West said together the iwi groups can build a bright future for their people, delivering jobs and economic growth through booming kiwifruit demand. Collectively, the three iwi groups now oversee significant resources in Bay of Plenty, with Te Arawa representing 21,000 beneficiaries, Rotoma No.1 administering 6600ha on the shores of Lake Rotoma for 1800 shareholders and Ngati Awa Group managing assets for 22 hapu representing 20,000 shareholders.

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Help us choose which destination we’ll be flying to on our inaugural Farmers Weekly Global Trek. In partnership with CR McPhail, a leading New Zealand farm tour operator, we’ll be taking farmers and agribusiness professionals to a destination that will open their eyes to farming innovations. See what the world has to offer and vote online to be in to win a $200 clothing voucher from our prize draw partner, Stoney Creek. Follow our journey on Facebook and Instagram (@farmersweeklynz). #fwglobaltrek

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farmersweekly.co.nz – July 2, 2018

SPINNING A YARN: PGG Wrightson rep and ex teacher Ian Hopkirk talks to pupils from St Joseph’s School in Te Kuiti.

Wool education takes out-of-box approach Tim Fulton timfulton050@gmail.com A WOOL promotion using modified shipping containers in schools is in hot demand. The Wool Shed inspires students to be creative and curious about new uses for an abundant, natural and locally produced fibre. Project manager Vicki Linstrom said kids are keen to learn about a biodegradable, sustainable product and are well aware there is no Planet B. The Wools in School programme was originally aimed at intermediate pupils but is also going out to younger and older students. Primary schools are booking it for technology and science classes while high schools have adopted it for business, economics and agri classes. The initiative was the brainchild of an ex-primary school teacher, who also wrote most of the activity book that is provided to schools with each container. The project, run by the Campaign for Wool NZ Trust, started in 2017 with one container, fitted out with examples of raw and processed fibre, manufactured items ranging from wool slippers to the felted-wool covering for tennis balls, wool booms and seed mats. Late last year a college in Taranaki secured funding from an education trust that paid for an ex-teacher, who is now a sheep and beef farmer, to help bring the story of wool to life. The farmer spent two weeks working with students in the container. From originally cold-calling schools to muster support for the idea, Linstrom is now busy organising the

HERE: The wool module arrives at Poroutawhao School in Horowhenua.

We’re encouraging schools to tap into their community to add to the experience. Vicki Linstrom Wool Shed movement of a container on each island. At first the Wool Shed was booked for a week but once they understood how it can be used schools began asking for a longer stay, she said. “Schools didn’t realise how much learning they could do.” And they are calling on local experts to help tell the natural fibre story and the average stay at a school is now two weeks. Schools can add their own twist to a visit. In Te Kuiti children were treated to portable shearing and a visit to the shearing museum.

Local farmers and others with knowledge to share are invited to share their knowledge and experience with the students. Tracey Topp, the founder of woollen socks retailer Cosy Toes, spent time with pupils at Leithfield School in North Canterbury, Topp was invited to talk about Cosy Toes and wool because the years seven and eight children were studying wool. “I took them a synthetic garment and some Cosy Toes Merino socks to feel the difference – at the end they were asking me to touch their clothing and wanting to know whether they were wearing wool or not.” Topp also told them about the fire-retardant safety aspects of wool. “They really got that when I showed them a photo of a friend’s house fire and the only thing that survived were her precious things because they had been wrapped in a wool blanket. “They all knew what

burning plastic felt like on the skin so I explained that polar fleece on a baby is just the same next to a flame. And synthetic carpet melts like tar in a fire.” Linstrom said that two-way interaction is priceless. “We’re encouraging schools to tap into their community to add to the experience.” She is amazed at the South Island response. Since its debut in Riverton in Southland earlier this year demand has increased from five stops in term one with seven schools booked for term three. The containers are fitted with display drawers and explanations of a variety of wool products from wool knops and face masks to technology from AgResearch. There are knitting needles, carders, drop spindles and an Ashford loom, all of which are available for the students to try. Programme sponsor PGG Wrightson helps with the logistics of moving the containers and encourages its wool reps to drop in to schools to explain the product, the industry and its ethics. The reps are given briefing notes so they can work alongside teachers. Anyone with industry experience and good communication skills is invaluable to give a bit of an edge to it, Linstrom said. PGG Wrightson South Island wool manager Rob Cochrane is encouraging all his reps to have a go at it. To reach teachers and school managers, Linstrom advertises the Wool Shed in the Education Gazette. Bookings are full for the rest of the year and term one next year but spots are available from then onward.

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20 FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

China beckons for velvet products Annette Scott annettescott@xtra.co.nz OVER the past six months 23 new velvet-based, healthy food products have been launched in Korea cementing positive longterm prospects for New Zealand deer velvet. Deer Industry NZ Asia manager Rhys Griffiths and chief executive Dan Coup have returned from a 10-day market planning tour excited about the good noises coming out of Asian velvet markets. They are confident the Korean leap of faith for NZ deer velvet can be replicated in the Chinese market. Griffiths said most of the 23 products use NZ velvet. There are a few are using Russian velvet as a point of difference. Yuhan Pharmaceuticals, which signed a memorandum of understanding with DINZ last year, is now a major player in the market. Griffiths and Coup visited Yuhan’s New Origin concept storecafe featuring recently launched products that contain NZ velvet. It runs NZ deer farm imagery on large video screens inside, at a high-end mall in Seoul. “There has been an explosion in consumer demand for consumerready, velvet-based products in Korea,” Griffiths said. “Ten years ago this product category didn’t even exist. “At the time we were dealing with a traditional Korean oriental

medicine market that appeared to be in slow decline.” Griffiths said the Chinese market for velvet has yet to make the leap but many of the manufacturers they met with believe it can be repeated in China. “The main barrier is a lack of confidence in the path to market for consumer products based on NZ velvet.

There has been an explosion in consumer demand for consumerready, velvet-based products in Korea. Rhys Griffiths DINZ “These products cost millions of dollars to develop and market so manufacturers need to be convinced they are not infringing a rule or regulation along the way.” DINZ, based on discussions with Chinese regulators, believes there is no problem. But to provide confidence to potential customers DINZ is working with some exporters and NZ Trade and Enterprise to commission a report by a respected Chinese regulatory expert on the path to market. It will be given to key manufacturers when completed. Griffiths said it is

understandable why Chinese manufacturers might be unsettled. In the past three years, to improve consumer safety, there has been a major tightening of the rules governing food and traditional medicines in China. That has included tighter standards for overseas suppliers and as a result NZ velvet producers have had to create clean areas in their deer sheds and meet tougher cold chain requirements. “In China velvet processors have had to make similar upgrades. Some have built completely new factories.” In a significant move announced in March, a major new Chinese super ministry is being established and expected to have regulatory oversight of the trade in traditional medicines and manufactured health foods. The State Administration of Marketing Regulation will be supported by a new State Drug Administration that reports to it. At the same time the formerly powerful General Administration of Quality Supervision, Inspection and Quarantine is being dismantled. Its border inspection and quarantine role is being merged into China Customs with the aim of streamlining import and export procedures. Griffiths said until the new regulatory regime is operating manufacturers will be uncertain about the rules that will apply to their operations. A further unsettling factor has

OUTLET: Deer Industry New Zealand’s Asia manager Rhys Griffiths, centre, captures a shot of New Origin, a key player in the exciting future for velvet in Asia.

been the recent clamp-down on importers of illegal products and for evading customs duties. Some smaller velvet importers have been prosecuted. “Larger, reputable importers say this will be a good thing in the long-run for the reputation of imported velvet and particularly for NZ. It will tidy up the industry.” Meantime, the traditional velvet market in China remains strong. “The clamp-down on dodgy importers may further increase demand for NZ velvet because buyers can be sure it meets all current Chinese regulatory requirements,” Griffiths said.

In Taiwan, Griffiths met representatives of the local Deer Farmers’ Association. “They were interested to hear how the prolific marketing activity by large food companies in Korea led to a general increase in velvet consumption. He also met some leading food companies in Taipei who appeared very interested in the positive developments in the Korean market. “With market access restricted for frozen velvet, exporting processed velvet that can be used as a premium health food ingredient is a natural next step,” Griffiths said.

Cattle disease poses low risk for deer Annette Scott annettescott@xtra.co.nz FARMED deer are highly unlikely to be Mycoplasma bovis carriers but the outbreak crisis has lessons for deer farmers, Deer Industry New Zealand chairman Ian Walker says. Walker, who is also a veterinarian, said DINZ has been seeking official advice on the M bovis risk to deer since the cattle disease was notified in NZ in July last year. The outbreak holds lessons about the importance of farm biosecurity for all involved in livestock farming. Neither DINZ nor the Ministry for Primary Industries have found any evidence suggesting M bovis is being carried by NZ deer species. Mycoplasmas tend to be hostspecific and M bovis, as its name suggests, is a pathogen that infects bovines including the North American bison, Walker said. In North America there have been two confirmed cases of M bovis in white-tailed deer, a very low incidence in a national herd of about 30 million. White-tailed deer are more closely related to moose and reindeer and only distantly related to the red, wapiti-elk and fallow

ALERT SOUNDED: Deer Industry New Zealand chairman Ian Walker urges all deer farmers to treat the outbreak as a wake-up call for farm biosecurity.

deer farmed in NZ. “Importantly, there have been no reports of isolation from elk in the United States, even though elk there often graze the same pastures as bison. “Therefore DINZ, supported by

MPI advice, believes the risk of M bovis infecting farmed deer in NZ is extremely low. “This is why MPI is tracing only cattle movements from infected properties to identify places at risk of being infected,” Walker said.

While the official advice on M bovis and deer is reassuring for the industry Walker urged deer farmers to treat the outbreak as a wake-up call for farm biosecurity. “TB, Johne’s disease, velvet leaf, Chilean needle grass and a number of other organisms are real and current threats that can be expensive to control. “Stopping them before they come through the farmgate may be a bit of hassle but good farm biosecurity will also make your farm more resilient to an exotic pest or disease. “Let’s face it, we have all tended to see biosecurity as being largely the responsibility of people wearing uniforms at the border but MPI biosecurity can’t possibly stop everything, not with trade, travel and tourism increasing. “There will be other incursions. You just don’t want the incursion to happen on your farm.” It is also critical that if an exotic deer disease outbreak does occur, the industry is ready to respond quickly. “That means being able to trace animal movements on and off the farm so that risk properties can be identified and the outbreak contained. “That’s what Nait is for,” Walker said. “If you do your best to comply

with Nait, at the very least you can’t be fined for non-compliance. “But more positively, complying with Nait means we are acting in our own interests as well as the interests of the whole deer farming industry.” MPI is confident its tracing of at-risk beef and dairy properties for M bovis is robust. “This means that if you farm or graze cattle you will have already been contacted if MPI believes they are at risk,” Walker said. “MPI believes the organism is contained by strict biosecurity controls on all infected and suspected properties so the risk of your deer coming into contact with infected cattle is minimal. “Therefore, while the eradication effort is under way, protect your farm and your deer by practising good basic farm biosecurity.” Deer farmers with any concerns about M bovis should contact DINZ. Meantime, DINZ will continue to monitor information about M bovis both in NZ and internationally. “If there is any change in our assessment of extremely low M bovis risk to NZ farmed deer, farmers will be notified,” Walker said.

News

FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Kiwi mark set for tech polish Tim Fulton timfulton050@gmail.com THE Buy New Zealand Made label is getting a technology tweak for its 30th birthday. The organisation will soon introduce software to verify its 1100 licensees’ credentials and do more to make Buy NZ Made a marketing asset. Brand users including overseas firms can use the trademark to promote NZ-made goods and services provided they have significant production or manufacturing here. All users must meet the requirements of the Fair Trading Act for country of origin labelling. Executive director Ryan Jennings joined Buy NZ made a month ago with a mandate to bring national level verification to the organisation. The e-commerce designer and marketer started the country’s first online florist before heading to Britain in the early 2000s to work

for global tech companies. After nearly a decade he returned to do digital business with small to medium-sized NZ firms. Now he wants to get stuck into country-scale proof of origin. “We have things in the roadmap which will help us in some of that verification.

This is a way to get that secure trust back to our site as a registered licence-holder.

“It’s not at barcode level but it will be online and available to licence-holders to give that third party recognition that they’re an approved licenced holder.” Buy NZ Made licence holders can link their own brands back to the trademark. That service is valuable in a world where it’s sometimes hard to tell who owns

a website or a company, Jennings said. “This is a way to get that secure trust back to our site as a registered licence-holder.” Some software development is needed to launch and Jennings expects to make an announcement on that in the next six weeks. Ultimately, it will be great if Buy NZ Made can use technology to verify NZ-grown and manufactured products down to source, he said. “I think starting with something that’s easier, like a single component food that’s been harvested and produced in NZ could be a great way forward. “And we’ve got a NZ-Grown branding that could work very well with that.” Jennings said branding is mostly about instilling trust so the Buy NZ Made campaign is as relevant today as in 1988 when the deregulated economy was swamped by imports.

“If the overall mission is zerodoubt buying then ultimately that’s where we are heading but there are a lot of complexities you get into at that level around tracking, tracing the pedigree of that whole journey from start to finish, the origin of the product and making sure it’s tamperproof from A to B.” Proving provenance is as important for agribusiness and exporters as ever, he said. Barcoding to show the origin of product down to farm level is still work-in-progress but some companies specialise in DNA testing of products in transit. Jennings doesn’t believe DNA

analysis is work within the remit of Buy NZ Made but it could use software to interrogate their system to tell whether a business is active or is ceased and basic information about the business. “We’ll be looking to hook into that.” A Buy NZ Made licence usually costs business about $250 a year. The Buy NZ Made Campaign is affiliated with different regional and industry organisations through the BusinessNZ lobby group. Members of those organisations receive a discount on their Buy NZ Made licence fee.

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22 FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Early winners are still leading Hugh Stringleman looks back on the initial decade of the Young Farmer Contest and catches up with some of those who took part.

INNING the Young Farmer Contest’s national honours opened many doors to farming success and primary industry leadership for champions from the first decade. Between 1969 and 1978 competition was very keen among thousands of Young Farmers Club members nationwide to achieve a place in the four-man grand finals, as they were then. Every member was encouraged to participate to build public speaking skills, increase their industry knowledge and try to progress through club, district, regional, island and grand finals. Nine of the first decade of national winners received a tractor as their main prize and all were feted around the country, interviewed on radio and in newspapers and offered agricultural leadership roles. Today’s YFC organisation has tracked down the champions and invited them to attend the 50th anniversary grand final, in Invercargill from July 5 to 7. Three of the first 10 have since died – inaugural winner Gary Frazer (1969), John Metherell (1976) and Stephen Ryan (1978). Before he died in 2015 Frazer recalled aspects of the launch of the first Skellerup Young Farmer of the Year series in 1969. More than 300 YF clubs sent a representative to numerous district competitions, the winners progressing to regional finals and subsequently to island finals – North and South. Two each from the North and South Islands then contested the first-ever grand final, held on August 22 at the South Pacific Hotel in Auckland. Frazer’s first prize included a return air fare for two to Sydney and $500 spending money. Tractors did not join the prize pool until 1970. His name was the first to go on Skellerup’s Viking ship trophy and he was the first to wear the Cloak of Knowledge. Thereafter, he farmed, owned and leased land at Swannanoa, North Canterbury, and founded and ran an agricultural machinery business. The oldest surviving champion, Allan Anderson (1970), now 15 years in retirement in Whanganui, intends to travel to Invercargill if his health will allow. “Winning the YFC contest really catapulted me into public life,” he said. Then a farming pioneer deep

in the Waitotara Valley, Anderson and business partner Bob Marshall grew to be the largest sheep breeding enterprise in New Zealand – Marshall Romneys. At its peak 2500 rams were sold each year and the partners were household names throughout the country. Anderson travelled overseas many times for sheep breeding and charitable purposes, including the first donated dairy cattle air cargo to Tanzania, Africa, arranged by then Prime Minister Norman Kirk. He spent six years on the Whanganui District Council and nine years on the district health board and was awarded the Queen’s Service Medal for services to conservation in 2008. Philip Bell (1971) still has the John Deere tractor he won in the grand final and farms on the same land at Clevedon, South Auckland, from which he won his way through various qualifying rounds to the Founders Theatre, Hamilton.

Aged 24 at the time, he went on to national leadership positions in YFC, branch and provincial leadership for Federated Farms and representative roles for NZ Dairy Group and Fonterra.

Aged 24 at the time, he went on to national leadership positions in YFC, branch and provincial leadership for Federated Farms and representative roles for NZ Dairy Group and Fonterra. Two years ago Bell gave up dairy farming after 55 seasons, including many with year-round town milk contracts, and he now finishes beef cattle. He is serving a second term as president of the Clevedon A&P Society and hopes to travel to Invercargill in July. John Jennings (1972) remembered there were 1300 entries at club level in the YF contest the year he won the national championship. Also aged 24, he featured during several rounds of industry and general knowledge, plus a speaking topic on subjects like the options for rabbit farming, deer farming or trout farming.

Another John Deere tractor headed the prize list, plus the trip to Australia, $500 and a chainsaw. Jennings farmed in Southland until the late 1980s when Rogernomics forced him to sell. He now has a business in Invercargill, very handy for the jubilee festivities. Nolan Williams (1973), of Dannevirke, was 27 when he won and considered himself very lucky with the questions on grand final night in Auckland. “I was sheep and beef farming on the family farm and had no knowledge of the dairy industry so I picked up the Dairy Board annual report. “It was too much to take in, with limited time before the final, so I learned the numbers of cattle that were herd tested and artificially inseminated the previous financial year. “I was asked both questions, right out of the blue.” Williams said other people attached more prestige to his win than he did because of his luck with questions. Hawaiian Airlines came on board as a sponsor so he went on a study tour of those islands, mostly looking at horticulture. John Miller (1974), a sheep and cropping farmer on the Taieri Plains in South Otago, was fourth in the 1973 grand final, won by Williams, and got right through the preliminaries again to win at his second and last try, aged 30. Such a pattern became commonplace in later decades, when previous grand final experience was a considerable advantage, and Miller pioneered the pathway. It was also the start of a love affair with Fiat tractors for the keen ploughman, who rose to be president of the NZ Ploughing Association and chairman of the world championship held at Outram in 1994. Miller’s abiding love of iron was inherited from his greatgrandfather, who owned the first John Deere tractor in NZ, in 1860. Paul Jarman (1975) was a youthful 24 and working in the MAF Advisory Services after graduating from Lincoln College when he won the grand final in the Wellington Overseas Passenger Terminal and was presented with his prizes by Governor-General Sir Denis Blundell. Jarman went sheep and crop farming on the family farm at Darfield, Canterbury, and with his father began sinking wells for irrigation water in 1980. The whole property will be

KNOWLEDGE: The late Gary Frazer, of Canterbury, won the first Skellerup Young Farmer of the Year Contest in 1969.

irrigated when Central Plains stage 2 is operating soon, greatly reducing dependence on ground water and replenishing local waterways and aquifers. He was very active in Young Farmers until the successful management of the South Island Field Days began and has subsequently been keen on the Farm Environment Awards. “I have always continued to learn, which is the greatest benefit of the contest – encouraging young people to become knowledgeable about their industry.” Keith Holmes (1977) had to show his skills in the first of the one-day practical tests held at Ruakura Research Station, Hamilton. The evening session was in the Founders Theatre again, as a radio

broadcast of industry and general knowledge, and public speaking, followed by then Prime Minister Robert Muldoon presenting the prizes. Holmes said the very generous Fiat tractor, sponsored by Andrews and Bevan, boosted his assets, equity and borrowing capacity enough to qualify two years later for a first (and only) dairy farm at Tauhei, near Morrinsville. The win launched him into a lifetime of governance and representation, in YFC, AgITO, Federated Farmers, NZDG and most recently, the lower Waikato zone committee of the regional council, concerned with drainage and flood protection. “Attending those meetings today, I see very many of my YFC contemporaries still farming and serving,” he said.

News

FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Finalists are on the start line Seven of agriculture’s cream of the crop will battle it out in Invercargill from Thursday in the 50th staging of the FMG Young Farmer of the Year contest. Neal Wallace previews the event and profiles the contestants. YOUNG Farmers contest organising committee chairman Dean Rabbidge predicts a close contest to find this year’s FMG Young Farmer of the Year. The contest is being held in Invercargill from Thursday with the grand final on Saturday evening, alongside celebrations marking 50 years of the contest. Rabbidge said tickets have sold fast and most events are close to selling out, a sign it is still popular with the public. “It still draws the crowds. We have proven that already and we haven’t got there yet. We are almost sold out.” The Thursday night 50th year celebration dinner was limited to 500 but almost all tickets were sold as was Saturday’s quiz and awards dinner, which was limited to 1000 people. The seven finalists are evenly matched with no clear favourite as each has strengths and weaknesses, Rabbidge said. Setting up for the various modules for Thursday’s technical day at the Southern Institute of Technology and Friday’s practical modules at Donovan Park, Waikiwi, was well advanced more than a week ahead of competition starting. Rabbidge said he has seen elements of Thursday’s technical testing, which starts the previous day with a farm visit, and the subsequent projects and interviews will be challenging. “It’s looking pretty difficult. I wouldn’t want to do it.” The Saturday night quiz and awards evening will be streamed live through the FMG Young Farmer of the Year Facebook page or a portal on the Newshub website. During the evening’s dinner break edited highlights from the earlier modules will be shown. The evening’s events will be replayed on the Freeview television channel on July 14. Alongside the FMG Young Farmer of the Year, each of the seven regions supplies 21 teams of three to contest the AgriKids event and 14 teams of two to contest the TeenAg competition.

after four attempts at winning the regional final he has finally succeeded. Black, who was raised on a Southland sheep farm, works as a consultant for New Zealand Agribrokers having previously worked in banking in Ashburton. His new job involves the Hinds club member in governance and strategic planning for farms. Black has a Massey University agriscience degree and spends each spring helping with lambing 5000 ewes on the family farm. He was aware of the need to work on his practical skills given he was not hands-on farming every day.

The Tasman representative is a sharemilker on 100ha near Hokitika, milking 200 cows. Wiffen, a Grey Valley club member, said he should have some advantages returning to the grand final but he is not taking any advantage for granted and had to use time wisely to prepare. He grew up on a Marlborough sheep and beef farm and has an agricultural commerce degree from Lincoln University. Logan Wallace

Will Taylor

Otago-Southland finalist Logan Wallace, 28, is competing in his second grand final and believes knowing his weaknesses from last year will be beneficial. Wallace, a member of Clinton Young Farmers Club, operates a one-man intensive breeding and finishing operation on a 290ha farm leased from his parents at Waipahi. It runs 2300 ewes, 700 hoggets and 400 trading sheep. Wallace has an agriculture certificat and a rural business diploma from Telford. It has been a big year for Wallace and his family. Earlier this year they won the Otago Farm Environment Awards with judges identifying the family’s succession strategy as a strength.

Will Taylor puts into practice the advice he gives to his farming clients as a field representative for PGG Wrightson. The Taranaki-Manawatu contender bought 20ha on the outskirts of Feilding three years ago and uses a variety of crops and pasture species to finish 500 to 600 lambs a year. Taylor, 26, said his job means working with dairy and dry stock farmers on agronomy, animal health, chemical and cropping needs from which he has learnt much and which has helped him reach the grand final. The Marton club member grew up in Feilding and spent three years driving tractors and combined harvesters in West Australia.

The finalists Aoraki representative Cameron Black, 25, has long dreamed of competing in the final and

Andrew Wiffen

Cameron Black

NOT THE SAME: Several days of tasks and a final quiz will sort out who’s who in the Young Farmer of the Year Contest as it celebrates its 50th incarnation. The finalists are, from left, Logan Wallace, Daniel Bradbury, Patrick Crawshaw, Andrew Wiffen, Josh Cozens, Cameron Black and Will Taylor.

West Coast dairy farmer Andrew Wiffen, 30, is also lining up for the second time, having finished third last year. It was a big year for Wiffen. Having come close to taking line honours, two weeks after last year’s final he married Kate.

Patrick Crawshaw East Coast representative Patrick Crawshaw has had a varied agricultural career. Crawshaw, 24, was raised on Kenhardt Angus stud near Gisborne. He has an ag commerce degree from Lincoln University then spent two years at Pukemiro Station cadet farm at Dannevirke, starting as a junior shepherd and leaving as a block manager. In July last year he joined a Hawke’s Bay agribusiness running 3000 ewes, beef cows and bulls and uses crops and new pastures to finish between 30,000 and 35,000 lambs and 1500 cattle a year. Crawshaw said his job as part of a team of six exposed him to livestock finishing, agronomy and livestock trading. In 2015 his family bought a 680ha hill country farm at Lake Waikaremoana running 2700 ewes, trading cattle and 200 Angus breeding cows. Crawshaw and his two siblings are involved in the governance of the property, which is run by a manager.

Josh Cozens Josh Cozens finally made it to the major league after succeeding in his third attempt at winning a regional title. The Waikato-Bay of Plenty representative is a contract dairy farmer with wife Shaz and three children at Pyes Pa near Tauranga,

milking 450 cows on 145ha. The only time he has shorn a sheep was at the regional final but it was an example of how the contest has opened his eyes to the skills required in other primary industries. Cozens, 29, a qualified automotive service technician, began his first contract milking job in June 2014, having previously worked his way up the dairy career ladder. He hopes to be sharemilking, leasing a farm or in an equity partnership within five years and has been building equity through owning a rental property, which he recently sold, owning cows and rearing beef calves.

Daniel Bradbury Daniel Bradbury grew up in an English town near Sheffield and discovered a love of farming when backpacking around New Zealand at the age of 18. His first job was working on a 1400-cow farm on the West Coast and after meeting his partner Denise Knopp. They have worked on British farms. But greater farming opportunities in NZ drew them to Northland in 2014 where they have advanced their careers. They are now in the second year contract milking 515 cows at Kawakawa. The Northern representative said the couple hope to be sharemilking within three years. Bradbury, 28, a member of the Bay of Islands club, has twice previously contested the regional final, making it to the grand final this year.

Newsmaker

24 FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Clement to focus on performance Synlait Milk has appointed Leon Clement as chief executive to replace company co-founder John Penno, who will remain on the board. Penno’s achievement has been extraordinary, firstly to help establish a multi-farm milk supply company then a large processor and exporter on a greenfield site. Hugh Stringleman looks forward and back.

EW Zealander Leon Clement will bring an impressive set of skills and experience to the helm of Synlait Milk to fill the shoes of co-founder John Penno from August. Penno said the Clement appointment is a coup and he is absolutely the right person to lead the company towards the profitable and sustainable opportunities being targeted. The company made a global recruitment search for the best candidate after Penno announced his resignation intention last November. Clement was managing director of Fonterra Brands, the domestic consumer products business, until his recent resignation and pending appointment to Synlait. Synlait chairman Graeme Milne said fast-moving consumer goods (FMCG) experience is not the main reason Clement was hired but it was an attractive part of his impressive credentials. At the company headquarters in Dunsandel, central Canterbury, Synlait has begun building a liquid dairy products plant at a cost of $125 million and Milne said further-processed and cultured products will be options. Its first use will be for private label milk and cream for Foodstuffs South Island. Synlait does not yet produce any FMCG products of its own but powdered infant formula produced at Dunsandel and at a blending plant in Auckland is sold locally, under the a2 Milk Company branding. After qualifying as an engineer Clement worked in Fonterra management for 16 years, half of them offshore, firstly in Vietnam then in Sri Lanka, where Fonterra has a vertically integrated collection and processing business, through to consumer products and dairy market country leadership. In 2016 he came back to Auckland and was appointed to lead Fonterra Brands in Auckland. Fonterra confirmed in May he had resigned, presumably because he was in the running for the Synlait role. But Fonterra Brands contributed towards the cooperative’s disappointing first-half 2018 result, announced in March. Oceania consumer and food service division lost 10% in sales volume and reported a drop in

normalised earnings from $58m to $15m. Fonterra said all the worries were in NZ as the Australian valueadd business is doing well. In May chief executive Theo Spierings confirmed he had made new appointments in senior marketing roles at the Takanini, Auckland, headquarters of Fonterra Brands. Synlait chairman Graeme Milne said those events and the reasons for the Brands NZ downturn were discussed with Clement during the recruitment process.

AMBITION: Leon Clements has been charged with leading Synlait Milk on its next growth phase.

Leadership is called upon when things don’t go right, such as when Sri Lanka reacted strongly to NZ’s DCD use and Leon had to cope with the political fallout. Graeme Milne Synlait Milk “Leadership is called upon when things don’t go right, such as when Sri Lanka reacted strongly to NZ’s DCD use and Leon had to cope with the political fallout.” Milne also wanted to emphasise Synlait has achieved significant milestones under Penno’s management and is now well set up for the next phase of growth. It is building a processing plant on a second greenfield site, at a cost of $250m near Pokeno in South Auckland, for evaporation and drying milk powders and infant formula from September 2019 onwards. It will recruit about 100 new supply farms in northern Waikato and South Auckland. For Fonterra that is uncomfortably close to the Brands NZ plant at Takanini, which collects milk from year-round milking farms in the region. “To take this dairy company from an idea to what we have now in 10 seasons has been an extraordinary achievement,” Milne said. “We now have a market capitalisation of $2 billion and revenue of $600m last year and John came from a scientific background and had never been a chief executive before.”

The rise in share price from $4 to $11 over the past year did not impact greatly on day-to-day activities. “It is great the sharemarket has placed that value on the company. “We are running the company to maximise long-term profitability and sustainability and making sure the market is fully informed. “The focus is on the performance of the company and the shareholders decide what the shares are worth, not the directors or the management. “Synlait is still a growth company and while we have ideas and a track record that is returning significantly more than the cost of capital we will continue to invest

shareholders’ funds in projects such as Pokeno. “If the ideas slacken off or the returns fall we will look at paying dividends but that is not on the horizon at present.” Chinese company Bright Dairy Holding owns 70m or 39% of the 180m total shareholding and Mitsui and Co and a2 Milk Company each have 8%. Penno had 6.12m shares in Synlait at balance date, July 31, 2017. In the announcement of Clement’s appointment, Penno said he is sad to be leaving the role but more thrilled about Synlait’s future. “The company has everything going for it and the outlook is very

positive so I’m glad I will still be a part of it, albeit in a different capacity. “I will be spending more time with my family, whom I have to thank for their relentless support. “Without it I wouldn’t have been able to dedicate so much time and energy to a fast-growing business. “My wife Maury and I have identified a few opportunities with start-ups and young companies we’re passionate about, which is where I’ll be channelling my expertise once I do step down.” Maury Leyland is a former senior executive for Fonterra, as managing director of people, culture and strategy before her resignation in 2016.

New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Tool helps farms save waterways Riparian zones along waterways that are retired from grazing and fenced off are often planted to promote biodiversity and help reduce sedimentary loss and the leaching of nutrients into waterways. An electronic way of planning, budgeting and monitoring the work is spreading quickly around the country, as Hugh Stringleman found out at National Fieldays.

ANDOWNERS have jumped on to the Riparian Planner being offered free and online by DairyNZ and Manaaki Whenua Landcare Research as better farm and orchard profitability results in more environmental actions. The national drive to improve water quality has highlighted the potential for riparian retirement and fencing for livestock exclusion to mitigate surface run-off from paddocks and surrounding hills. As 99% of significant waterways on dairy farms have been fenced over the past decade the spotlight has shifted to sheep and cattle farms and the very big and prolonged riparian protection task ahead. Although developed by DairyNZ water scientists in collaboration with Landcare, dry land farmers and orchardists have been assured the Riparian Planner has been opened up and is now applicable to and usable by them. Now, two years after it was launched, more than 1600 people including land owners, regional council officers and rural professionals are using the planner. The uptake has accelerated this year as more drystock farmers catch on, Landcare business development manager Christine Harper said. The site lets users access satellite maps of their properties, draw in the targeted waterways, select the most suitable plant species for the task and the region, prioritise and budget, alter the riparian setbacks to fit the available funds, keep maintenance records of planted zones and re-visit the programme over a five-year horizon. Unlike paper plans they can be updated whenever needed, stored securely electronically and shared with rural professionals, processing companies and regional councils for regulatory compliance. The site’s creators say that adds up to good farming practice and avoids pitfalls like lack of prioritising and budgeting, attempting too much, using the wrong plants and spacings and following generic recommendations. The site is constantly being developed, adding features that will be useful to users and putting rules around data sharing that will

progress the common good. DairyNZ water quality scientist Tom Stephens said the Riparian Planner enables farmers to share and use their riparian data whether to tell their story, to ease new consent requirements or to access subsidies from regional councils for fencing, planting and protecting waterways. All user data is privately and securely held and is shared only with individual user consent. “We are currently working on the processes for data-sharing with regional authorities and dairy companies to make it seamless, secure and simple. “We are keen for feedback or inquiries through the contactus function, which puts users in touch with DairyNZ and Landcare. “This year we have made changes based on feedback, including opening the planner up to non-dairy users and creating a new address-searching option on the map. “It’s a moving feast and there are more changes coming to give users even more benefits, all geared at making the adoption of good riparian practices like stock exclusion, wetland regeneration or riparian planting easier, starting with a plan of action.” Stephens said farmers, advisers and regional councils have already asked for improved ability to manage farm wetlands, such as creating tailored planting lists across the country that offer greater benefits to denitrification, biodiversity and water quality more broadly. “Likewise, users have told us they want the function to mark notes on their map, against waterways for instance, that a visit by the local enviro-school will plant 500 native plants. “Simple things to help make sense of what’s planned over the next five years. “We have been told by farmers and advisers that the best thing about the Riparian Planner, aside from its ease of use, is its focus just on water quality. “We’re keeping it that way but with the data sharing ability we hope to be able to use that riparian data to help inform other needs in future, like biodiversity and climate change.” Stephens said riparian retirement through livestock exclusion does not demand subsequent planting out and the

SHARING: DairyNZ water scientist Tom Stephens guides landowners through the Riparian Planner with an objective of data sharing between rural and regional professionals to prove New Zealand’s environmental credentials.

DEMONSTRATING: Manaaki Whenua Landcare Research business development manager Christine Harper with the Riparian Planner tool at the National Fieldays.

added expense of trees, flaxes and shrubs. For drystock farmers with big, hilly properties the riparian planting could be prohibitive and must be funded over a long time. However, fenced and retired zones will grow heavy covers of grass in the meantime. “The biggest benefit to water quality is fencing and retirement, not necessarily the planting regime. “The tool enables you to establish how far back from the waterway the fencing needs to be to avoid livestock putting pressure on the banks through their weight and grazing.

“Bank collapse is a major source of sedimentary loss to waterways. “For contaminant filtering, research suggests that heavy grass zones provide almost as much benefit as the same zones planted out.” But there will also be areas of heavy erosion and biodiversity objectives like improving the habitat for native fish, birds and insects where the right planting is required. “Planting will be of benefit in casting shade on waterways, which is really important to cooling the water and the health of invertebrates,” Stephens said. The tool takes users through fence placement, zone width and

planting regime to improve water quality, generating numbers and costs for the ease of comparisons and budgeting. “It does all that consistently with slightly different plants for the region you are in.” On-the-ground actions in a planned and systematic way will be used in future to prove the environmental claims of farm products as customers and consumers demand more and more quality assurances. “Data sharing will enable us to show what NZ is doing or what is being done in a region, with numbers to back it up.” Scientists like Stephens want to link the distances of fence setbacks with the quantities of sedimentary loss or the phosphorus and nitrogen run-off prevented. Farmers can also share the data in their riparian planners with processing companies for auditing schemes and with accountants for tax reasons.

www.dairynz.co.nz/environment/ waterways/riparian-planner/ Email: riparian.planner@dairynz.co.nz

Opinion

26 FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

EDITORIAL

Don’t back those who let us down

AINSTREAM media was filled again last week with images of a farmer mistreating his animals, after footage was shot and released by animal rights group Farmwatch. This happens all too often in our industry and obviously does nothing to help the standing of farmers in the eyes of those who have entrusted us to care for the land and grow their food. My social media timelines were flooded with angry farmers denouncing what they had seen. For 99% of farmers the images were abhorrent. Dairy New Zealand released a statement condemning the sort of treatment shown. Good farmers know that stressed and injured animals are less productive. Good farmers know the world is watching what they do and animal welfare is integral to a sustainable and socially acceptable farming system. The previous night I’d been talking to someone about Mycoplasma bovis and the fact that non-farmers have been exposed to the heartbreaking stories of those affected farmers faced with sick animals and the prospect of losing their herds. Viewers of television news got to see farmers who care deeply for their animals struggling when faced with this terrible disease. Now we have these images – which many farmers said they couldn’t finish watching. It’s hard to know what farmers can do to address this, an isolated case. The most important thing is not to minimise or make excuses. Maltreatment of animals is a crime and it’s not okay. So report those you see who farm in a way that is unacceptable to you and to any respectable person. Be vocal about how animals are treated on NZ farms and be vocal in condemning those who don’t show the respect required to be a farmer. Farming takes hard work, dedication, resilience and intelligence. But it also requires empathy, compassion and love – for the people you work with, for the land you tend and for the animals you care for.

Bryan Gibson

LETTERS

Wrigley misses the point of gases BRIAN Wrigley has unfortunately missed the point about why New Zealand’s emissions profile allocates 48% of our greenhouse gas emissions to agriculture (methane and nitrous oxide). NZ’s Greenhouse Gas Inventory has to follow the same rules the entire world has to follow when recording and reporting our emissions. A group of international experts has agreed on how methane must be treated and therefore NZ’s domestic policies have to be aligned with this agreed accounting methodology when we report internationally on our progress. Alternative metrics would also cause complications for any international trading of units. We are as interested as

everyone else in other options for methane accounting. While some climate change commentators might believe there are alternative ways to account for our emissions, ultimately, unless there is consensus at the international level these alternative metrics cannot be used domestically. That’s something we need to explore further, particularly as more science on methane and its warming impacts emerges but that won’t happen overnight. Wrigley is correct in pointing out the carbon cycle is closed and the stocks v flow argument with regards to methane is explicitly taken into consideration within the Zero Carbon Bill. One of the options the Government is consulting on is to stabilise methane. This is because methane

remains in the atmosphere for a comparably short time compared to carbon dioxide but while present it is 25 times more potent at warming the planet. Science shows that though methane disappears rapidly from the atmosphere the warming it causes continues for many decades. Therefore, stabilising emissions at current levels does not mean there is no contribution to any future warming. Stabilising methane emissions at a level below current emissions would achieve this aim. The question for farmers is at what level methane should be stabilised. NZ committed to a 2030 target under the 2015 Paris Agreement and the Zero Carbon Bill is the Government’s vehicle for meeting these international

climate change obligations and setting a new 2050 target. It is in the interests of all New Zealanders to engage in the consultation process to ensure the policies in the end legislation are balanced. That’s why we are actively engaging dairy farmers through our roadshows and our climate change ambassadors. Dr Tim Mackle Chief executive DairyNZ

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Opinion

FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Experts vital element in debate Jacqueline Rowarth

N THE past, scientists held a position of kudos. They were highly educated, focused and in New Zealand were mostly involved in government roles where they did public-good research. Their focus was discovery for public benefit and there was an acknowledged trade-off between doing work they loved in a secure environment and the government salary, which was not as large as could be earned in industry. Doing good for the country was the focus, not personal income. Things have changed over the years, including job security, but the most challenging aspect for people who have spent at least seven years at university learning ever more and becoming more and more specialised is that kudos has diminished and lack of trust has increased. Britain’s Envrionment Secretary Michael Gove, a Brexiteer, explained in 2016 that people have had enough of experts. He said that in response to criticisms from experts of the Brexit policy – 90% of them were warning departure would be damaging. In retrospect he might be wishing he had listened to the experts a bit more closely. It is extremely frustrating for experts to be doing the research, analysing the data, setting it in context with what is already known and coming to a conclusion only to be told they are completely wrong by somebody who hasn’t done the research and analysis. Yet that is what social media, comment lines and feedback to radio announcers allow. In fact, all of this seems to be encouraged as media outlets seek engagement to keep sponsorship, whether through advertising or government support, flowing. These comments are published whether or not they are supported by any data and they undermine trust in legitimate research. Fake experts and personal attacks is one of five points

The

Pulpit

indicated in the undermining of science. A classic example is the use of fake experts by the tobacco industry, which developed a strategy to recruit scientists who would counteract the increasing evidence on the harmful effects of second-hand smoke. The fake experts were accompanied by denigration of established experts, discrediting their work. On both sides there is potential for the conspiracy theory to flourish. The potential for personal gain leading to bias has been considered in the tobacco industry – pay the false experts heaps of money – and the chemical industry. The theory goes that if a multinational company has a lot to gain by promoting a certain chemical it will downplay or ignore the potential harmful effects. This overlooks the regulatory environment in which the developed world now operates and the potential for litigation. In 2016 consulting firm Phillips McDougall calculated the cost of researching, developing and registering a new crop protection product is about $300 million. The cost includes going through all the human safety checks. The firm also estimated only one in 139,000 chemicals

INFORM: Soil scientist Dr Jacqueline Rowarth argues public debate needs reliable scientific evidence interpreted by experts.

investigated is released. Glyphosate (Roundup) is a case in point. Considerable research in America, funded by cancer research associations, can find no significant effects on human health when used as directed. The scientist raising doubts has been found to be an expert witness for lawyers suing Monsanto on behalf of clients with cancer. There are some bad scientists, just as there are bad people in all walks of life, professional or not. Theories behind the biased scientists include ideology and faith, which leads to rejection of anything incompatible with their fundamental beliefs. For some, there is the celebrity status conferred on the maverick by the media. For others it is simply money. But before any allegations are made there should be investigation. A recent example of attack is that of the role of Dr Morgan Williams, a grassland ecologist

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who became the Parliamentary Commissioner for the Environment, being accused of bias in his advisory role for an irrigation scheme. He was attacked on the basis of flawed economics but if his role was not as an economist, the attack was unjustified. Of course, questions should be asked on whether an attack is ever justified but whatever the answer, investigation should come first. Scientists will always disagree. Challenge and rigour of debate are part of making progress. The internet has enabled the disagreements to be made public – part of transparency in science which, ironically, was intended to increase trust. The Edelman Trust Barometer, which involves 28 countries and appears yearly, has shown New Zealanders are more distrustful than average. Sixty-two per cent of respondents in the Barometer of 365 NZ people indicated they are no longer sure what is true and

what is not. In comparison the world figure was 59%. Good news, however, was that the trust in technical experts has risen 11% to 70% of the 575 respondents. In departing his position as the Prime Minister’s chief science adviser, Professor Sir Peter Gluckman emphasised evidence needs to inform public debate and policy making. The generation of reliable evidence requires a systematic approach within a body of knowledge and it must be interpreted by experts. NZ, a leader in many areas, could also lead the rise of the expert – but the media will need to help.

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

Opinion

28 FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Feds and MPs put on a good show Alternative View

Alan Emerson

I’VE been dealing with Federated Farmers and going to their functions for longer than I care to remember. I’ve witnessed a strong, focused organisation and one with a distinct lack of focus. Currently, in my view, Feds are as strong as they’ve ever been. They are well led, their staff contains a good mix of youth and experience and the policy and communications teams are second to none. I believe Federated Farmers is becoming increasingly important because of its advocacy role. That advocacy allows us to continue farming. Without it we would be in some difficulty. Until last weeks’ conference I hadn’t realised just how busy they are. At local and regional government levels Feds have had input into 68 long-term council plans. Without that input we’d be on a hiding to nothing. There are 22 different pieces of legislation before Parliament that Federated Farmers is having input into. Again, without that coordinated input, we’d be stuffed. You and I can’t do it. On top of all that they have

input into issues as diversified as rural broadband, rural roading, freedom camping, adverse events and rural fire, skills training and immigration. On the vexed subject of greenhouse gases and the Emissions Trading Scheme they are having some major wins. They do all that on an income of less than $9 million. This year the conference had a vibrant feel to it. President Katie Milne gave an introduction covering the work the federation is doing with the new Government, the response to Mycoplasma bovis, biosecurity and trade issues or wars. She pointed out the issues facing farmers need to be hit head on. “We mustn’t think of them as challenges we can overcome. Farmers need to have an open mind to meet those new challenges.” Milne comes across as a strong, consultative leader who has presence and tells it how it is without bluff and bluster. Guest speaker Brian Richards was similarly impressive. He pointed out we’ve spent 120 years doing more for less and that now is the time to reverse that and do less for more. He said New Zealand’s target market is just 2% of 1.5 billion people. They are sophisticated and live in cities. You could write a book on his presentation and he did. He threatened most of what is sacred to traditional farming and good on him for doing that. He

IMPRESSIVE: Federated Farmers president Katie Milne comes across as a strong, consultative leader who tells it like it is.

obviously knew exactly what he was talking about. The response from the farmers I spoke to was overwhelmingly positive. He said the NZ agribusiness industry is a dispirited collection of tribes without any form of common focus and he’s right. Richards believes we are playing at marketing our product and, again, I agree. So, good on Feds for getting a speaker who rattled cages. The issue is that more than anything else they need leaders to change and Feds are the only outfit capable of providing them. I was also most impressed with the attendance at the after match function, especially with the number of politicians attending. Kieran McAnulty, a Labour List MP who sits on the Primary Production Select Committee, was really positive about Federated Farmers. “Every interaction I’ve had with them has been positive. They’ve

shown a willingness to work with the Government. “The situation over Mycoplasma bovis is witness to that. “Locally in Wairarapa Federated Farmers have shown a real willingness to engage with us,” he said. It was good to catch up with Damien O’Connor and Nathan Guy and Clare Curran is impressive as was Louise Upston. The person who took centre stage for me was acting Prime Minister Winston Peters. He said how pleased he was to be at the conference, which was predictable, then congratulated farmers for their efforts to clean up our waterways, which wasn’t. He then thanked farmers for their efforts preserving and promoting our clean green image. He gave Fonterra a flick but from a factual perspective as he did with Silver Fern Farms. He certainly gave the impression of understanding our sector. And he talked trade and the

opportunities with the European Union. Peters then told us how the Government is committed to working with the rural sector to move forward. I hadn’t heard those sentiments for a while. After his address he spent some time talking to farmers and mixing with the agribusiness crowd, which was appreciated. Federated Farmers are punching above their weight. They are well led and well administered. My one concern is how they are going to continue funding all their advocacy work. That work, as I’ve mentioned, enables you and I to keep farming. Maybe we can discuss that next week along with the proposed Beef + Lamb NZ levy increase.

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

Persistent efforts fail to save stuck bull From the Ridge

Steve Wyn-Harris

IT’S my belief the work of a shepherd is to do everything possible in their power to prevent livestock deaths and when that fails, dispose of them appropriately. That’s pretty well the job description. Shifting a mob of rising 2-yearold bulls a few days ago I spotted one of their mates had got himself well bogged in a very inaccessible spot. I went and had a close inspection and reckoned I could extract the fellow with some success but would need some help. With only a few days to go until

the end of the financial year and no cattle deaths I was keen to keep the slate clean. One set of neighbours has an extremely useful 50-metre wire rope I’d borrowed previously for a long-distance rescue and they kindly lent it to me again. My own ancient and small tractor was down at the bottom farm but Dan up the road willingly agreed to come and give me a hand with his big machine. Isn’t it great having good neighbours? I had to semi-immerse myself in the very cold water to get a strap down beneath his brisket and push it through the mud. But this 550kg bull was worth about $1500 and from an animal welfare perspective needed some help so both bull and I were keen to improve his circumstances. That old Toyota bugger ad where the participants had put their rope around the head of a stuck beast and possibly dislodged the head might not play nowadays, being somewhat inappropriate, but trained a whole

generation of us in how not to do it. I stood up on the bank to monitor the progress and to signal Dan. The bull slid out surprisingly easily and I signalled a stop. We debated whether to drag him up the hill but I thought he’d probably had enough drama for the time being. Dan was doubtful and I should have deferred to his better wisdom. We removed the strop and encouraged our mate to stand up but he was cold and keen to sit for a while. I thanked Dan as he left to do his own chores and went home to get some meds. I made a great brew of hot water, ketol and electrolytes, which he gladly slurped down, and gave him a bag of glucophos for good measure. I promised him I’d be back later in the evening. At 9pm I shone the torch down into the gully hoping the bull had up and disappeared but he was still there and had tried to get up and almost managed to get himself back in the hole

from whence he’d come. I warmed him up with my homemade hot brew then encouraged him to get up, which he almost did with me supporting him. We’d almost made it but I could feel him falling in my direction. My 80kg was manfully doing its very best but this wasn’t going to end well. I had a vision of the beast falling on top of me and it would be my turn to be stuck in the dark and in the cold water and though I’d told Jane what I was doing on a cold dark night, I hadn’t been entirely specific where it was I was going. On the positive side, it probably wouldn’t make much difference as I wouldn’t have suffered too long. So, I eased him down then dragged a log to prop beside him to prevent another re-entry into the hole. I got him comfortable and to keep him warm put an old blanket held down with a tarpaulin. A mate had once told me how, in the early weeks of his marriage, he’d spent a very long and cold

A mate had once told me how, in the early weeks of his marriage, he’d spent a very long and cold night under a tarp with a prized stud bull.

night under a tarp with a prized stud bull in a bid to keep it warm. His townie bride must have wondered what was next. I’m a good shepherd but there are limits. The next day I had a visit from a vet and after an examination she recommended euthanisation, which we duly did, and the saga was at an end.

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

World

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Fonterra milk price trumps Saputo Stephen Bell stephen.bell@nzx.com FONTERRA Australia has set an opening milk price of $5.85 a kilogram of milksolids and upgraded its forecast closing range to $5.85 to $6.20/kg MS for the 2018-19 season. It is 10 cents ahead of rival Saputo, which has opened at $5.75/kg MS for its southern suppliers previously allied to Warrnambool Cheese and Butter and Murray Goulburn but at the end of the season all suppliers will get the best price offered by either company regardless of their payment options selected during the year. Fonterra managing director Rene Dedoncker said the price reflects what the company can earn in the market as Fonterra continues to optimise its assets, strengthen its strategic partnerships, improve its product mix and drive greater returns from domestic and global markets. “Our opening and upgraded forecast closing range are based on a continued positive global supply and demand outlook coupled with more favourable currency movements. “Demand is expected to remain strong, especially from China for milk powders and Japan for cheese as well as butter and AMF

CONFIDENT: Fonterra Australia expects strong global demand for its products to continue through this season, managing director Rene Dedoncker says.

globally and the global dairy market’s current strong prices are expected to continue throughout the new season. “Since our last price review we have achieved positive sales in key cheese export markets, Global Dairy Trade remains at supportive levels and the short-term

weakness in the Australian dollar has given us confidence to update our forecast closing range. “This is a market-based and sustainable price and is another step towards pricing simplicity, which is what the industry is calling for. “In line with our commitment to give farmers earlier pricing signals to assist them in planning ahead we again provided a forecast closing range in May, we have continued to offer Fixed Base Milk Price and we provide regular market information in our Global Dairy Update Australia,” Dedoncker said. Fonterra also told suppliers it is increasing its farmgate milk price for the 2017-18 season to $5.68/kg MS plus a $0.40/kg MS bonus for a total cash payout and forecast average closing milk price of $6.08/kg MS. The increase will apply from July 1 2017 and will be paid on July 15 2018. “Our business is in good shape as we continue to strengthen our long-term relationships with strategic customers, implement a number of capacity and efficiency improvements across our network, including our state-of-the-art Stanhope cheese plant and we’ve launched Farm Source, which is changing the way we work with our farmers and

provides benefits beyond the milk price. “We are confident in the longterm fundamentals of Australian dairy and remain committed to continuing to pay our farmers a sustainable farmgate milk price that is reflective of the market,” Dedoncker said. Saputo Dairy Australia chief operating officer Kai Bockmann said “This opening price represents our current assessment of expected market conditions for the coming year. “We believe it is responsible and allows room for upward movements if improved market conditions are realised throughout the year.” Export market conditions have continued to improve in recent months. But the closing average price for the coming season will depend on many external factors, which might have an impact on returns. “We will monitor market conditions as the season unfolds and update you as part of our quarterly milk price review process in October, January, April and June,” Bockmann said. The company will operate with separate handbooks for Saputo and WCB suppliers this year with no major changes to terms and conditions. “We intend to fully combine

We intend to fully combine our SDA and WCB supply groups from July 1 2019 and provide an integrated range of pricing programmes under one handbook. Kai Bockmann Saputo our SDA and WCB supply groups from July 1 2019 and provide an integrated range of pricing programmes under one handbook. “In this transition year and to ensure that no supplier is disadvantaged we will provide every supplier with the best available milk price at the end of the 2018-19 season. “Simply put, this means suppliers will receive the highest price available to them based on both the WCB and SDA milk payment systems. “This will ensure that all suppliers are paid the best available price at the end of the season regardless of their payment option during the year.”

Susidy cuts, trade deals offend lobby group unfair competition. “Trade concessions must be minimised for our more sensitive sectors.” Rukwied’s pleas on trade echoed thos made by farming groups in Britain but came as Farmers Union of Wales president Glyn Roberts issued a warning over the differences between future EU suppordt and British support for farming postBrexit. He told the union’s annual meeting the principles of providing a fair standard of living for farmers and securing a stable supply of affordable food will continue to underpin the CAP while food production and the economic viability of farms are being left out of new United Kingdom policies. Meanwhile, international economic law expert Professor Fiona Smith, of Leeds University, said the UK government will face significant challenges in its attempts to take back control of farming legislation once the country leaves the EU. Plans to maintain subsidy levels and redirect payments towards the delivery of public good activities are likely to come under pressure from the World Trade Organisation

rules that aim to stop trade distortion. As an EU member state, the UK had been insulated by WTO rules dictating the size of subsidies and how they are paid. But from March 29 next year it will become an independent WTO member – putting it at the mercy of international rules around trade. That could have direct implications for the government’s farm policy proposals, particularly the maintenance of support until 2022 and directing payments towards public good measures. Under WTO rules, developed countries can pay direct support to farmers only to a maximum 5% of its total value of agricultural production. While the EU holds an exemption to the rule, allowing it to pay farmers above the threshold, the UK will no longer enjoy the same protection, meaning it might not be able to maintain existing payment levels after March 29, 2019. Greening payments and support for public good measures could also be viewed by the WTO as tradedistorting.

DISGRUNTLED: European farming group Copa-Cogeca president Joachim Rukwied is unhappy the European Union is planning to cut subsidies and failing to protect farmers from trade deals.

“Under WTO rules, environmental subsidies can be part of a conservation scheme but cannot be used to have an effect on production. “If you create welfare regulation, which incentivises livestock farmers to change production methods, you cannot do that under WTO rules.” Subsidising producers to farm in a particular way could also be tricky because the WTO does not allow products to be discriminated against for the way they are produced — potentially reigniting the debate over cheap, chlorinated chicken entering the UK. “If the government moves forward with its high welfare, niche grant approach it has to be the farmer’s choice and not through regulation,” Smith said. UK Farmers Guardian

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EUROPEAN farming group Copa-Cogeca has hit out at the European Commission for planning cuts to direct payments and failing to protect domestic producers in new trade deals. The latest round of Common Agricultural Policy reforms, which include capping direct payments at €100,000, will be delivered with a budget of €365 billion a 5% cut on the 2014-2020 annual allocation. Copa-Cogeca president Joachim Rukwied complained European farmers are being expected to respect tough food safety, welfare and environmental requirements for less and less money while losing the technology toolbox that allows them to remain competitive. He also crticised the planned trade deal with the Latin American trade bloc Mercosur, which could allow more beef into the European Union in exchange for lower tariffs on European exports such as cars. “We cannot accept that our standards in the trade talks with the Latin American trade bloc Mercosur are weakened or that our farmers are penalised for respecting them by being subject to

World

30 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Leaders join forces on Brexit FARM leaders from four countries have joined forces to highlight the need for certainty for agriculture after the United Kingdom leaves the European Union. Industry representatives from the United Kingdom, Germany, Denmark and the Netherlands stressed the importance of strong partnership in agri-food trade after Brexit. The call was made at a highlevel seminar exploring the prospects and challenges faced by both British and European agriculture. Leaders at the event held in Brussels demanded all politicians prioritise the business of food production during the Brexit negotiations. National Farmers Union president Minette Batters said “UK farm businesses are the foundation of a thriving food chain that supports vital jobs and contributes massively to the UK economy. “This is mirrored across the EU. “Inside or outside of the EU we need an environment that allows us to be as efficient, innovative and competitive as possible.” German Farmers’ Association (DBV) leader Joachim Rukwied said it is vital the link between the UK and the common market remains as close as possible. “A solid, comprehensive and sustainable agreement with the UK is needed. “Duty-free trading must be a top priority.” Agricultue and Horticulture Development Board chairman Sir

Duty-free trading must be a top priority. Joachim Rukwied German Farmers Association

VITAL: It is essential Britain retains a close relationship with trading partners in Europe, Agriculture and Horticulture Development Board chairman Sir Peter Kendall says.

Peter Kendall said the EU is a key trading partner. It is the destination for nearly two-thirds of UK food exports and the source of 70% of UK food imports. “It is essential that we maintain a close relationship with our

partners,” Kendall said. Dutch farm union LTO Nederland president Marc Calon said frictionless trade is fundamental for perishable products such as flowers, fruits and vegetables. Danish Agriculture and Food

French back meat and dairy labels FRENCH politicians have backed a proposal for mandatory labelling of meat and dairy products from animals raised on genetically modified feed. The proposal is contained in the first draft of president Emmanuel Macron’s Food and Agriculture Bill, which is being debated in the French parliament. The Bill also seeks to make it mandatory for labels to include details of pesticides used on fruit and vegetables. Calls for a change in the labelling laws came from France Nature Environnement, a federation of environmental groups, which described the result as a victory. French politicians have already voted to ban misleading vegetarian products, which use meaty names such as sausage or steak. The Food and Agriculture Bill will now be put to the French senate to examine. If accepted by the senate, the labelling laws will start

by January 2023. On-pack labels will have to include information on the conditions under which the animal were raised and whether they had GM feed. Pat Thomas, director for Beyond GM, part of the Sustain food and farming alliance, believes the British government should take note of the ruling in France. Most of the United Kingdom’s conventionally reared animals are given GM feed and meat, eggs, fish and dairy are among the most common ways British consumers come into contact with GMs, Thomas said. “Labelling is an important start, especially given the strong opposition that the UK public has to eating GMs.” Thomas called on supermarkets to reinstate strong sourcing policies that reject GM-fed animal products. “Our government, too, needs to step up – with a coherent food and farming policy that produces food – rather than labels – that

people can trust.” GM Freeze did its own research in 2016 into the level of GM feed used in the UK supply chain, with its study Feed me the Truth. The anti-GM lobby found all the UK’s top 10 supermarkets stocked GM-fed products including eggs, meat, dairy, poultry, red meat and farmed fish. Waitrose, which has announced a new European Union soya supply line, is stocking less GM-fed meat than the other UK supermarkets, the survey found. But it cannot guarantee any individual product is non-GM fed, unless it is organic. GM Freeze campaign director Liz O’Neill said “We want to see strong regulation of GM across the food chain and information for consumers through the labelling of GM ingredients and the use of GM feed. “People do want to know how their food is produced. “Everyone should be able to find out about the provenance of their food.” UK Farmers Weekly

Council president Martin Merrild said it is important the future relationship maintains a level playing field between the UK and EU. “This means protecting the standards – the product standards as well as the production standards – on both sides of a future border,” he said. “If this is achieved we are able to continue to provide highquality, sustainably produced food at competitive prices to the consumers.” Meantime, the Nature Friendly Farming Network has suggested radical change in the way agriculture is supported is essential with environmental improvement put at the centre of future farming policy. The group was formed at the end of last year and is made up of more than 400 farmers who are committed to managing their land for wildlife and public service, as well as growing and providing healthy, nutritious food. A survey of the group, timed to coincide with the consultation on the British Department of

Environment, Food and Rural Affairs’ command paper, Health and Harmony: The future for food, farming and the environment in a Green Brexit, found nine out of 10 wanted to see radical change, prioritising high environmental standards while still ensuring sustainable and profitable food production in the UK. But almost half of those surveyed said they don’t feel confident the government will deliver the farming policy required to create positive environmental change. Asked what public goods should be prioritised under a new policy, the farmers put protection of pollinator health, preserving upland farming and high animal health standards at the top of their agendas while improved productivity and public access to the countryside were seen as less important. “We cannot miss this significant opportunity to transform British agriculture in order to help farms evolve and thrive while restoring and protecting our natural heritage,” group chairman Martin Lines said. “Brexit is a once-in-a-lifetime opportunity to ensure British farmers have the systems and policies in place to grow affordable, healthy food while restoring biodiversity and reversing soil declines.” He urged all farmers to respond to the consultation ahead of the deadline of the May and ensure their voice is heard. UK Farmers Weekly

Fears for future of Scots beef and lamb production Colin Ley THE viability of beef and sheep production in Scotland is being threatened by a Scottish government climate change bill that includes a net zero greenhouse gas emissions target. Quality Meat Scotland (QMS) chairman Jim McLaren said that will make it virtually impossible for the country’s farmers to produce beef and lamb. “Moving to net zero GHG emissions would be absolutely devastating for our livestock industry,” he told an industry meeting at the Royal Highland Show. “To achieve net zero emissions, in fact, Scotland would need to plant 16,000 hectares of new woodland each year, adopt GM crop technology and move to zero livestock production.” Scotland has already adopted a world-leading target of cutting GHG emissions by 80% from 1990 levels, a figure considered as on the edge of being achievable. Following the publication in May of a new climate change bill, however, farming leaders fear things could get even worse. “We can end up copying Sweden, which, in tackling climate change concerns over the years, has succeeded in reducing its own food self-sufficiency from 90% in 1995 to just 50% today,” McLaren said. “That means relying on imported food

from many different countries, of course, some of which have poor animal and welfare standards and little awareness of GHG emissions.” He was also fiercely critical of the totally inadequate system used to measure GHG emissions in agriculture, a system he said isn’t fit for purpose. “At the core of every emissionreduction measure ever invented is the reduction of waste and the more efficient utilisation of resources. “For farming that includes improvements in animal health and welfare, increased conception rates, more efficient use of fertilisers through soil testing, targeted lime application and a better use of grazed grass. “Under the current GHG measuring system, however, all these factors are seen as increasing the farming industry’s carbon footprint even though we know as farmers that we are greatly reducing emissions per unit of production,” McLaren said. Scottish Farm Minister Fergus Ewing said agriculture must play its part in achieving Scotland’s ambitious climate change targets. But he would prefer a voluntary approach on climate changes issues. “QMS is also right to point out that Scotland’s landscape and weather make us supremely suited to producing highquality livestock and meat,” he said. “We should be proud of that.”

Real Estate

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

Foreign investors are still ringing expert

COLLAPSED: A Chinese bidder for Landcorp’s Jericho Station pulled out of the overseas investment process before the $8.7 million deal could be completed.

Tighter land laws starting to bite Richard Rennie richard.rennie@nzx.com

HE tightening up of overseas investment criteria for farmland is putting greater pressure on the ability of realtors to market New Zealand as an investment option overseas, Bayleys national country manager Duncan Ross says. And marketers are looking harder at the ex-pat market as an offshore capital source. Six months after the Government announced tighter controls on overseas investment in sensitive land, the impact is being felt. The definition includes both residential property and farmland over five hectares in area. A ministerial decree issued before Christmas requires overseas investment to deliver substantial and identifiable returns and to include environmental, social and cultural considerations alongside economic returns. With respect to farmland Finance Minister Grant Robertson also required jobs, business skills and new technology and further processing to be considered more closely in granting a sale. “Generally, overseas investors are looking at the top end of the market, often over $10 million worth of investment, which is a much tighter part of the market to find investment in anyway,” Ross said. The tighter standards made the market tougher for overseas buyers. That was also reflected in Overseas Investment Office (OIO) data indicating a tripling in the rate of withdrawal of foreign farm buyer applications for the 12 months to June. Twenty four applications to buy sensitive land were withdrawn over 12 months to June compared to eight in the year to June 2017 and 14 the year before that.

Real Estate Institute legal officer Lisa Gerrard has cautioned vendors need even greater understanding of a buyer’s OIO application, classing it as important as the price and any other purchase terms. Ross said the issue for the sector will be whether it proves to be a permanent tightening of OIO regulations. “The feedback we are getting anecdotally is that many have gone through the entire process of application before opting to pull out.

We still have a significant number of transactions awaiting some sort of approval, in one case 18 months. Duncan Ross Bayleys “We still have a significant number of transactions awaiting some sort of approval, in one case 18 months.” One of the most high-profile withdrawals was the decision by Chinese bidders to pull out of the purchase of Jericho Station in Southland after its owner Landcorp had agreed to the sale of the $8.7m property. An 11ha kiwifruit orchard near Te Puke due to be sold to a NZ controlled, foreign-funded conglomerate was also rebuffed by OIO in early June on grounds of a lack of substantial benefit to NZ. ANZ economist Con Williams identified a capital gap of about $2.8 billion a year in the primary sector requiring either retained earnings or debt funding to fill for the sector to continue growing at 2.4% a year. Ross said there is evidence a

capital gap in funding that has existed for some time in the primary sector is only likely to grow if foreign investment dries up. But banks’ willingness to continue funding farm operations with increasing debt is less than it was several years ago. They expect to see some retained earnings put to debt repayment alongside interest payments. While all agri sectors continue to perform well there remains strong offshore investor interest in our local market, which would go some way to filling the capital gap as identified in the ANZ reports. “If we want to continue to develop and lead in primary food production the capital needs to come from somewhere, especially in times when farmers have been working hard to create long-term, environmentally sustainable production units.” One option that has been raised more recently to enable an equity release for some of the larger portfolios while keeping the investment palatable to the Government and the market is the ability for foreign buyers to own up to 24.9%. “But that usually only works when there is a high level of equity already in the farm. “If there is significant debt and the 24.9% is a big number they still do not have any control over the asset. If they did then they would be subject to OIO scrutiny.” While Bayleys always pushes properties nationally, overseas potential might lie more with ex-pat funds and individuals who want to secure farm ownership. “As marketers we have also had to become more sophisticated about how we market these larger properties. “The reality is to be able to show it is a sustainable production system with the scale to ride through the volatility that accompanies the sector,” Ross said.

OVERSEAS investment specialist Catherine Reid remains optimistic about the opportunities New Zealand offers foreign investors despite a tightening of standards here. Reid, a Wellington barrister, specialises in helping investors get their proposals over the line with the Overseas Investment Office. More than ever it pays for prospective buyers of NZ farmland to carefully consider what their point of difference is by becoming the owner of that land compared to what a local might bring to the deal. “They really need to look hard at what they bring over and above what a Kiwi investor may bring. “The minister’s directive issued back in November has lifted the bar on rural land investment expectations. “However, if you lodge a high-quality application there remains a good chance you will get it over the line.” The OIO looks favourably on investments that benefit NZ by converting to another land use, creating more value and more export dollars in the process. There is a recognition in Government ranks that a shift in land use, for example from pastoral to horticultural, might require a level of capital investment a foreign owner can provide. “The door has also opened for farm forestry too. “The Government has acknowledged that the forestry sector relies on foreign investment, especially to meet its target for tree planting.”

NO SLIDE: There has been no discernable drop in foreign investor interest in kiwi farmland, Wellington barrister Catherine Reid says.

Applications that struggle are ones where an investor appears to want only to land bank the property, doing little to improve its productive output. High-performing farms can also prove hard to get approval for on the grounds there is little that can be done to them to make them any better than they already are. For foreigners seeking to live here and buy land, applying through a residencybased OIO application can provide a smoother path as the benefit to NZ test does not apply. “If they are seeking residency then it becomes a less complex application which can be much quicker to get through.” Typically, high-quality applications take six months and despite the tightening of standards there has been no discernible slide in investor interest in NZ farmland.

Demand is growing for land to grow cherries DEMAND for land to grow cherries has been a significant recent feature of the Central Otago rural property market. So far this year more than 150 hectares of bare land changed hands for orchard development, with prices rising between 25% and 30% over the last two years. PGG Wrightson Cromwell real estate manageer Neil Bulling said local enthusiasm for the crop shows no sign of abating, despite a tough 2017-18 summer. “This summer was the hottest on record, bringing the harvest forward, putting pressure on packhouses and resulting in smaller, softer fruit. “That said, for the past few years plenty of people have been keen to grow cherries and one challenging season has not dampened that enthusiasm. “Existing, developed orchards find willing buyers at values above $500,000 per hectare.

“However, owners are reluctant to sell so sales of orchards are rare. “Those looking to invest in cherries buy bare land instead with suitable blocks selling at around $100,000 per hectare. “If they have a good water supply these blocks are ideal for cherries,” he said. But establishing a cherry orchard requires care. “Once you have the land and sufficient water available you then need to acquire the trees. “That is not straightforward with the nurseries flat out and struggling to grow the trees new growers need. “To obtain the right cherry varieties, which have a royalty on them, there is a four-year waiting list and anyone starting now will not have an orchard planted before 2021. “After that it takes four years before your trees are producing fully.

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

FARMERS WEEKLY – July 2, 2018

RURAL Office 0800 FOR LAND

Property Brokers Limited Licensed REAA 2008

Agricultural contracting business

WEB ID WGC62473 MARTON 265 Waimutu Road View By Appointment Started over 36 years ago, this well established business has expanded and now provides a diverse range of agricultural work, specialising in grass and Heather Kubiak arable work and also features a produce trading arm to Mobile 027 231 4363 the operation. The business features a comprehensive Office 06 281 3031 heather.kubiak@pb.co.nz range of machinery equipment and plant, with all being presented in excellent condition. The option is there to continue operating out of the existing yard Richard White under a lease arrangement. The yard is expansive and Mobile 027 442 6171 Office 06 281 3720 features five large buildings.

BY NEGOTIATION

richardw@pb.co.nz

www.propertybrokers.co.nz JUST LOOKING?

HUNTERS DELIGHT

TOP QUALITY

• Well laid out 185 acre dairy farm situated in the heart of Manawatu. • Lovely art deco homestead with great views over the property. • Modern 18 aside herringbone dairy with in bale feed system. Very nice feed pad along with good calf and milking sheds. • Effluent and water systems have been upgraded and are consented for intensive agriculture. • In retirement mode for the last few seasons our Vendors currently milk up to 160 cows and carry all replacements on farm. • Priced to sell at $2,200,000 plus GST. Call Les to inspect.

• Opportunity for the part time hunter gatherer to shoot deer on your own door step, just outside Pahiatua and a short drive to Tui Brewery. • Featuring some pruned open pine forest for your investment along with native and regenerating bush. • Three bedroom home or hunting lodge on a flat terrace with great views overlooking the stream below and deer in the bush. • Good array of out buildings along with some holding paddocks near the woolshed. • Great for the adventure minded and future investment. Call Les.

• Situated in Konini, Pahiatua is this quality 74 hectare dairy farm with excellent soils. • Very nice four bedroom family home set in lovely grounds. • Current dairy infrastructure includes a modern herringbone dairy with a 300 cow yard. • Currently supplies Open Country, has produced up to 1220 kgs/ms/ ha consented for dairy farming. • Shedding includes machinery shed and calf rearing facilities. • Your opportunity to own this outstanding dairy farm. Call Les.

Accelerating success.

LES CAIN 0274 420 582

Licensed Agent REAA 2008

429HA – LONG TERM LEASE FOR SALE BY TENDER

Reach more people - better results faster.

• Taihape, 34 years to run • Reliable summer rainfall • Large area wheel tractor conture • Erewhon water scheme, dams and springs • Basic sheep and cattle yards

• Mains electric fences • Ideal dairy run off, bull beef, or breeding • 14ha crop and 200 round bales at valuation • Immediate takeover

All enquiries to Geoff Hennah 027 543 7135 or geoffhennah@gmail.com colliers.co.nz

LK0093247©

Sallan Realty

Google ‘Sallan Realty’ Your Farm Sales Specialist

LK0000000©

Contributor to realestate.co.nz

WE WORK THE LAND AS HARD AS YOU DO Colliers International is an industry leading brand in the rural sector. As the only truly global rural real estate company, we offer a distinct competitive advantage. We work closely alongside our national and global colleagues and to widen the pool of qualified buyers and investors. But we’ll never lose sight of our roots. Our local experts are proven in the Rotorua market and will work to find the right property solution for you. From farmgate to boardroom, we understand your business. Contact the team today on 07 346 0060 colliers.co.nz

COLLIERS RURAL AND AGRIBUSINESS SELLING FARMS • HORTICULTURE • VITICULTURE • LIFESTYLE CRHB Limited, Licensed under the REAA 2008

Employment SHEPHERD GENERAL

Assistant Farm Manager – Dry Stock

(KATOA STATION – EAST COAST)

Mainly Finishing lambs and cattle.

Rangitikei

• 2 to 3 years experience • 2 or 3 good dogs • 3-bedroom home Apply with CV & Referees to: Katoa Station, TeAraroa LK0093251©

Phone 06 864 4647 email: katoa@ingleby.co.nz

NEED

LK0093278©

To support and help manage the day-to-day labour demands of an intensive breeding unit for sheep and fattening unit for bulls. Kincardine is located 15km to Taihape and 90km to Wanganui in the very productive Mataroa area. The 580ha farm is a breeding unit for ewes and fattening unit for bulls achieving high levels of production and performance. The position is available to a self starter that enjoys getting results and maintaining their own day-to-day schedule. The position includes stock work, fencing and tractor work. It reports to the owner directly who works on the property. A 3-bedroom house is available with Secondary and Primary School buses from the farm gate.

Classifieds

STAFF?

DOGS FOR SALE

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

SIXTY DOGS in Stock! www.youtube.com/user/ mikehughesworkingdog/ videos – $1000-$2500. View on sheep/cattle. Trial. Guaranteed. Deliver NZ wide. Tradein wanted. 07 315 5553 mikehughesworkingdogs@ farmside.co.nz WEANED HUNTAWAY pups, well bred. Phone 06 863 9815.

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

ANIMAL HEALTH

Call Debbie 0800 85 25 80

Contact: Rob Gollan 021 431 173 rgollan@xtra.co.nz

ANIMAL HANDLING

classifieds@nzx.com

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

ANIMAL SUPPLEMENTS

Infrastructure / Fixed Asset Manager

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

Mokai Station lies at the head of the picturesque Mokai Valley and borders the Ruahine Range; 30km north-east of Taihape. This dramatic and scenic 1900ha (809ha effective) station runs sheep, cattle and deer and for many who have worked there this property holds a special place in their past.

This role is for 2½ days per week and will suit a solution focussed individual who has good general DIY skills, good communication skills both verbal and written along with a friendly and ‘can-do’ attitude. Farming and/or building industry experience would be desirable and a full drivers’ licence is a prerequisite.

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 #3209). Applications close 5pm Monday, 16th July 2018

LK0093241©

If you are looking for a varied role where you can utilise your practical skills but still have input into farm development all within a beautiful setting, then this position will interest you! If you do not live locally, accommodation is available for two nights per week on farm.

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

Classifieds

www.farmersweeklyjobs.co.nz

Communicating closely with the owner you will manage the farms infrastructure and fixed assets ensuring buildings, farm equipment, machinery and vehicles are all maintained and kept in good working order. You will be responsible for identifying any repairs that are required and you will plan and liaise with external contractors/ suppliers for specialised repairs. You will also work alongside the Farm Manager to complete on-going, prioritised general farm jobs when required. As part of this role you will meet with both the Farm Owner and Farm Manager on a weekly basis to collaborate on farm outcomes and establish directional goals.

Ag jobs at your fingertips

The Farm Owner is wishing to future proof Mokai Station by developing the business further and is seeking a forward thinking individual with good practical skills to immerse themselves in this unique part-time position of Infrastructure / Fixed Asset Manager.

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. BOOK AN AD. For only $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds section. Phone Debbie on 0800 85 25 80 to book.

ATTENTION FARMERS

DOGS WANTED

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

HEADING, HUNTAWAY, handy, backing dogs or bitches, 2-6 years. Top money paid. Phone Ginger Timms 03 202 5590 or 027 289 7615. 12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195. DOGS WASTING AWAY in kennels? I take on all dogs with assortment of issues! 07 315 5553. mikehughesworkingdogs@ farmside.co.nz

BUSINESS FOR SALE WINDMILL WATER PUMP manufacturing business for sale. Contact: ross@ windmills.co.nz

DOGS FOR SALE HUNTAWAY PUP. 12 week old active keen Huntaway pup. Stationbred. Parents both proven workers. $150. Phone 06 385 4634.

CITRUS TREES Specialists in superior field grown trees, all varieties grown.

WANTED

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 WILD CATTLE and goats wanted. 50/50 mustering. Portable yards available. Phone Kerry Coulter 0274 944 194. 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.

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

TARPAULINS PVC TARPS. All sizes. Top quality Ripstop PVC.NZ Made. Phone for quote Westlorne Ohakune 06 385 8487. Free delivery North Island.

FERTILISER

WINTER GRAZING

221 Snodgrass Rd RD 4 Tauranga

WANTED in central/ lower North Island for lambs, 1 to 2-year-old cattle or cows. Mark Grace 021 222 8470 mark@rathmoy.co.nz

Fax: 07 552 4638 grant@copperfield.co.nz www.copperfieldnurseries.co.nz

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

PUMPS HIGH PRESSURE WATER PUMPS, suitable on high headlifts. Low energy usage for single/3-phase motors, waterwheel and turbine drives. Low maintenance costs and easy to service. Enquiries phone 04 526 4415, email sales@hydra-cell.co.nz

TRACTOR PARTS JOHN DEERE 6410, 6600, 6610, 6800, 6900, dismantling Andquiparts. Phone 027 524 3356.

TRACTORS & MACHINERY P U N C T U R E PREVENTION. Tyreshield. Use on all vehicles. Tractors, ride-on mowers, bobcat and earthmover tyres, quad bikes and all farm vehicles. Contact Mike 06 342 7880 or 0274 425 249 www.mikestyreshield. com

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

SELLING

SOMETHING?

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

COPPERFIELD NURSERIES Ph: 07 552 5780

PROPERTY WANTED

FOR SALE

FARM SERVICES/ SUPPLIES

Price list available.

LK0092561©

Unique Part-Time Role - Taihape

WHATATUTU DOG SALE. Preliminary notice. CHANGE of date and venue. Saturday 1st September at Otara Station, 319 Whatatutu Road, Te Karaka, Gisborne. Enquiries Allen Irwin 06 862 3618 or email: toromirostation@ gmail.com

FORESTRY

Have something to sell? Advertise in Farmers Weekly

Phone Debbie Brown 0800 85 25 80 or email classifieds@nzx.com

Bobby Calf Processing Made Easy • Ethical • Same day processing • Local For further information please contact Alliance Group directly on 0800 100 144 or talk to your Alliance Group livestock representative

www.alliance.co.nz

Classifieds

Livestock

livestock@nzx.com – 0800 85 25 80

SALE TALK

• Good housing & infrastructure • Sheep, beef & deer

Phone: Michael Richardson 027 228 7027 Email: michael@propertybrokers.co.nz

LK0093267©

• South Canterbury region

Livestock

On-Farm Sale – CRV Friesian Tuesday July 10th at 11.30am

HERD AUCTION GOOD CONDITION & STRONG DAIRY TYPE COWS

On a/c of Waireka Farms, M & S Caseley 148 Waireka Rd, RD14, Whanganui 4584. T/N 40009.

DATE: Wednesday 11th July 2018 ADDRESS: 191 Mangawhero Road, Kaponga – d/c no 45197 START TIME: 11:30am VENDORS: Lombardy Farms

Comprising: 180 2nd, 3rd & 4th calving cows Calving from 20/7 (7 weeks AI, tailed with Hereford) These cows have come on the market due to the herd being downsized. This is the complete young-section of the herd. BW44; PW68; RA87%.

COMPRISING OF: 150- Fsn/FsnX herd BW 77, PW 10,2 R/a 98% 30 Fsn/FsnX i/c dairy hfrs BW 65, PW 55 DETAILS:

This herd has been in the same family for 25 years.

•

Contact: Vendors, Matthew & Sally 06 342 5567 NZFLL Agent Malcolm Coombe 0274 326104 Or any NZFLL agent

Calving from 20th July to LIC Nom Fsn sires, T/off Jsy out 20 Dec

•

Blanket dried cow treated

•

TBC 10 – HB shed – EBL free, Lepto vacc

•

Cows in good condition, young herd

•

MBovis milk tested clear - not detected

MANIA YEARLING BULL SALE

STOCK REQUIRED

DAIRY COWS & HEIFERS FOR SALE

• Q Matt – 350 Fsn/FsnX dairy herd, calv 15th July, 4 wks LIC PSS, BW 52, PW 65, HB shed, long est. herd, $1800. Matt 027 601 3787 • Q1169 – 24 Fsn i/c hfrs, BW 58, PW 63, lwr index from top herd, big hfrs, closed herd, $1500. MikePM 027 674 1149 • Q 1168 – 144 yng Fsn/FsnX herd, BW 77, PW 120, consider fwd sell in milk, 20th July calv, 3 wks, good cond and type, $1950. Colin 027 646 8908 • Q 1167 – 190 Jsy herd, BW 70, PW 91, R/a 97%, 12th July calv, LIC PSS 6 wks, end of era farmed 72 yrs, $1500. Steve 027 453 8769 • Q 1164 – 28 Fsn/FsnX i/c hfrs, BW 130, PW 135, 8th July calv to Jsy, owner bred, $1600. Noel 027 588 7632 • Q Monty – 81 Fsn/FsnX, BW 70, PW 84, calv 28th July to Jsy, 405kg/lw, $1500. Monty 027 807 0522 0800 548 339 | nzfarmsource.co.nz/livestock

STORE LAMBS 28-40kgs

SIL Breeding EWES Due Jul/Aug 18MTH FRIES BULLS 400-480kgs

18MTH A&AH X STEERS 380-480kgs

1.00 WEDNESDAY

400kgs 18MTH ANGUS HEIFERS

OCTOBER 4 2017 TH

Catalogues and photos available from auctioneers or online. FARM SOURCE LIVESTOCK AGENT: Colin Dent 027 646 8908 0800 548 339 | nzfarmsource.co.nz/livestock

EARN FARM SOURCE REWARD DOLLARS ON ALL FARM SOURCE LIVESTOCK PURCHASES & SALES*

R1 YR ANGUS STEERS 280kgs+

T&Cs apply. See nzfarmsource.co.nz/rewards

LK0093253©

SPECIALIST HEIFER MATING SIRES

PAYMENT TERMS: Payment terms 20.8.18 but deferred payment options available to purchasers, arrange prior to auction.

on based upon:

FARM SOURCE REWARD DOLLARS ON ALL • 40 EARN commercial R1 heifers for salePURCHASES & SALES* FARM SOURCE LIVESTOCK T&Cs apply. See calving nsive and accurate records • Internationally recognisednzfarmsource.co.nz/rewards ease sires ration calving ease data w herd with over 50 years • Comprehensive Estimated Breeding Value data mating history

Ross Dyer 0274 333 381

www.dyerlivestock.co.nz

LIVESTOCK ADVERTISING

A Financing Solution For Your Farm E info@rdlfinance.co.nz

PHONE NIGEL RAMSDEN 0800 85 25 80

Your source for PGG Wrightson livestock and farming listings

er information contact: .co.nz

Key: Dairy

Nic Denton PGG Wrightson 027 434 4094

gues email: kate@temania.co.nz

Beef

Sheep

Other

SPECIAL ENTRY - CAPITAL STOCK TEMUKA IN LAMB EWE FAIR

COMPLETE FRSN/FRSNX/JSYX HERD DISPERSAL

Wednesday 11th July 2018 Commencing 11.00am

Tuesday 3rd July 2018 Commencing 11.30am

www.temania.co.nz

up its largest ever offering of yearling bulls following on from its record breaking million dollar

ober will be exactly 50 years to the day since the stud first held its on farm auction with 35 demand for Te Mania genetics has grown to a point where the business now holds two sales 25 rising two year old bulls are offered and then in October, 50 specially selected calving ease

TE MANIA

WOULD LIKE TO THANK ALL CLIENTS FOR THEIR SUPPORT IN HELPING CREATE A

NZ RECORD-BREAKING SALE AND WE WISH YOU WELL WITH YOUR PURCHASES

RAYDON P/SHIP WG & PJ Pearce, Hazelburn, Pleasant Point 460 2th Romney Ewes Romney Ram 16/4/18 170 2th Romney Ewes Sth Suffolk Ram 16/4/18 (January shorn) LK0093246©

ing progeny from two exciting new imported sires in the October Spring sale with the first of sons on sale along with A&B Spotlight. Both sires have exceptional calving ease and carcase Garth sons were well sought after at the recent Te Mania Australia Walgett sale in NSW where average of $12,517. Garth is a versatile multipurpose sire with exceptional EBVs and the cility score in Australia. rcial Angus heifers are also made available at the October sale with this year's offering coming ders Mark and Jill Forrester and Hamish Haugh from the Sisters Partnership.

LK0093277©

• Approximately 7000 stock units

CLEARING SALE

LK0093192©

EQUITY OPPORTUNITY

A boy was assigned a paper on childbirth and asked his parents, “How was I made?” “Well honey…” said the slightly prudish parent. “The stork brought you to us.” “Ohh…” said the boy. “Well, how did you and daddy get born?” he asked. “Your grandparents found us under a rock.” “Well how were grandpa and grandma born?” he persisted. “Well darling, they were found under a cabbage leaf,” said the parent. Several days later, the boy handed in his paper to the teacher who read with confusion the opening sentence: “This report has been very difficult to write due to the fact that there hasn’t been a natural childbirth in my family for three generations.”

1100 MA Romney Ewes Romney & Coopdale Rams 19/4/18 780 MA Romney Ewes Poll Dorset & Suff x Rams 15/4/18 (January & March shorn) These ewes are Capital Stock, only for sale because property has been sold. They are based on North Island Romney Genetics, Wairere & Wairima Bloodlines. Ewes will be drafted into age groups. Consistently scanning 170% plus. Further enquiries Greg Uren - PGW - 027 431 4051 Bill Pearce - Owner 03 614 8228

904 Old Te Aroha Rd, Matamata A/C B & J Andrew 100 Frsn/Frsnx/Jsyx Incalf Cows Further Enquiries

D SOL

Jason Roberts 0272 431 429

Agonline is the key source for livestock listings from around the country supported by our national network of livestock agents.

agonline.co.nz

For full & up to date entries go to www.temukasales.co.nz

Freephone 0800 10 22 76 | www.pggwrightson.co.nz

Helping grow the country

MARKET SNAPSHOT

Dairy

Grain & Feed

MILK PRICE FORECAST ($/KGMS) 2018-19

FONTERRA 2018-19

AGRIHQ 2018-19

7.00

6.68

AS OF 24/05/2018

AS OF 21/06/2018

Last week

Prior week

Last year

Canterbury (NZ$/t)

6.0 5.5 Dec 17

Feb 18 AgriHQ Spot Fonterra forecast

Apr 18 Jun 18 AgriHQ Seasonal

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

WMP GDT PRICES AND NZX FUTURES

7.75

6.60

403

396

335

NI mutton (20kg)

5.10

4.15

391

388

330

SI lamb (17kg)

7.65

7.60

6.50

Feed Barley

389

386

337

SI mutton (20kg)

5.15

4.20

222

Export markets (NZ$/kg) 8.69

8.63

8.20

283

284

UK CKT lamb leg

Maize Grain

421

410

PKE

281

285

221

* 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.

INTERNATIONAL Last week

Prior week

Last year

Wheat - Nearest

276

219

Corn - Nearest

211

221

204

CBOT futures (NZ$/t)

2500 2000 Aug 17 Nov 17 Feb 18 C2 Fonterra WMP

446

336

7.0

6006.5

ASW Wheat

448

331

Feed Wheat

322

251

Feed Barley

394

296

113

Ex-Malaysia

NZ venison 60kg stag

$/kg

437

PKE (US$/t)

May 18 Aug 18 NZX WMP Futures

South Island 1 7kg lamb

8.0

c/kkg (net)

3000

North Island 17kg lamb

8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5

7.5

APW Wheat

3500

5006.0 4005.5 3005.0 4.5 Oct

Oct

Dec

Feb

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

Prior week

vs 4 weeks ago

WMP

3120

3115

3225

SMP

1915

1890

AMF

5900

Butter

5660

Last week

Prior week

Last year

This yr

Last week

Prior week

Last year

1895

Urea

483

507

3.41

3.48

3.75

5900

6125

Super

302

317

Nth Isl 37m

3.60

3.75

3.80

5505

5250

DAP

739

Sth Isl 35m

4.55

3.90

750

Sep

Latest price

Oct

Nov

Dec

GLOBAL markets have been on a roller-coaster in recent weeks as investors remain concerned trade tensions between the United States and its major trading partners, such as China and the European Union, could develop into a big drag on the global economy. There are increasing concerns surrounding US President Donald Trump’s tariff threats as he targets US$200 billion worth of Chinese products as well as sending mixed signals on foreign investment in the US tech sector. US Treasury Secretary Steven Mnuchin tweeted news of the Trump administration planning to curb Chinese investment in US tech shares is fake news but also said restrictions will apply to all countries that are trying to steal technology. Trump has also raised the possibility of a 20% tariff on European cars. Considering the mixed cues from global markets, the NZX 50 has held up relatively well. The local bourse was trading near alltime highs last week after reaching a record high of 9008 earlier this month. The benchmark index is currently around 8% higher this quarter, with Synlait Milk, Tourism Holdings and Fisher & Paykel Healthcare all reaching record highs during the week. Market commentary provided by Craigs Investment Partners

8999

S&P/NZX 10 INDEX

8759

$/kg

250

4 weeks ago

Sharemarket Briefing

S&P/NZX 50 INDEX

350

150 Jun 14

NZ venison 60kg stag

4.5

600

c/k kg (net)

3200

Coarse xbred wool indicator

5.5

CANTERBURY FEED PRICES

NZ$/t

US$/t

Last yr

Aug

Coarse xbred ind.

450

16883

Aug

Jun

(NZ$/kg)

3400

S&P/FW PRIMARY SECTOR EQUITY

Jun

NZ average (NZ$/t)

WMP FUTURES - VS FOUR WEEKS AGO

Aug

Apr

WOOL

* price as at close of business on Thursday

Jul

Apr

FERTILISER

Last price*

3000

Last year

7.80

Australia (NZ$/t)

4000

Last week Prior week

NI lamb (17kg)

Feed Wheat

Waikato (NZ$/t)

6.5

Slaughter price (NZ$/kg)

Milling Wheat

PKE

7.0 $/kgMS

SHEEP MEAT

DOMESTIC

MILK PRICE COMPARISON

US$/t

Sheep

$/kg

Jun 15 Feed barley

Jun 16

Jun 17 PKE spot

3.5

400 300

2.5

Oct Jul

Dec Sep 5‐yr ave

Feb Nov

Apr Jan Last yr

Jun Mar

Aug May

Jul

This yr

Dollar Watch

Top 10 by Market Cap Company

YTD High

YTD Low

Fisher & Paykel Healthcare Corporation Ltd

14.90

15.50

11.92

The a2 Milk Company Limited

11.66

14.62

7.66

Auckland International Airport Limited Meridian Energy Limited Spark New Zealand Limited Ryman Healthcare Limited Fletcher Building Limited Mercury NZ Limited (NS) Contact Energy Limited Air New Zealand Limited (NS)

6.87 3.15 3.77 11.95 7.00 3.38 5.88 3.18

6.99 3.19 3.89 12.25 7.96 3.45 5.96 3.43

6.11 2.75 3.28 10.27 5.74 3.08 5.15 2.86

Listed Agri Shares

500

5pm, close of market, Thursday

Company

YTD High

YTD Low

The a2 Milk Company Limited

11.660

14.620

7.660

Comvita Limited

5.850

9.210

5.600

Delegat Group Limited

8.650

8.900

7.510

Foley Family Wines Limited

1.480

1.610

1.400

Fonterra Shareholders' Fund (NS)

5.350

6.660

5.000

Livestock Improvement Corporation Ltd (NS)

2.750

3.000

2.250

New Zealand King Salmon Investments Ltd

2.380

2.450

1.840

PGG Wrightson Limited

0.660

0.720

0.560

Sanford Limited (NS)

7.660

8.500

7.350

Scales Corporation Limited

4.640

5.000

4.350

Seeka Limited

6.760

7.010

5.800

Synlait Milk Limited (NS)

11.500

11.650

6.260 3.100

T&G Global Limited

3.100

3.300

Tegel Group Holdings Limited

1.160

1.240

0.810

S&P/NZX Primary Sector Equity

16883

17332

14417

S&P/NZX 50 Index

8999

8059

S&P/NZX 10 Index

8759

8807

7640

THE New Zealand dollar This Prior Last NZD vs fell considerably against week week year the United States dollar USD 0.6741 0.6877 0.7119 in June, losing US2.5c EUR 0.5827 0.5923 0.6404 to finish about 4% down for the month at 67.5c. AUD 0.9182 0.9317 0.9553 That was a two-year low GBP 0.5156 0.5188 0.5587 against the US dollar, Correct as of 9am last Friday BNZ currency strategist Jason Wong said. The reasons mostly lay with the strength of the USD and many other currencies had set new lows against the USD. “The global trend is towards the USD and even the Chinese renminbi has come under pressure as well,” Wong said. The renminbi is usually very stable but the Chinese authorities had allowed some devaluation to occur amid all the trade rhetoric. The most recent OCR statement from the Reserve Bank of NZ opened the door very slightly to an interest rate cut in the next six months. Hitherto the only possibilities had been no movement or a rise. “Maybe some weakness in our dollar has come from the very small chance of a rate cut,” he said. While a lower dollar is good news for exporters it raises import costs and along with oil price and petrol levy increases was quite inflationary. Against the Australian dollar, the NZD had fallen below A92c, having been closer to 94c only two weeks ago. But 92c was the mark earlier in June so not a lot could be read into the cross-rate movements. Both the NZD and AUD tended to move together against the USD, Wong said. Hugh Stringleman

Markets

FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

COARSE WOOL INDICATOR

NI SLAUGHTER LAMB

SI SLAUGHTER STEER

($/KG)

BONER FRIESIAN COWS, 555-685KG, AT TEMUKA

($/KG)

7.80

3.41

5.30

1.77

high lights

$2.54-$2.61/kg

$485-$530

R2 Hereford and Hereford-Friesian heifers, 345-420kg, at Rangiuru

Aut.born weaner Friesian and beef-Friesian bulls, 100-105kg at Frankton

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

Last week

Prior week

Last year

NI Steer (300kg)

5.40

5.70

NI Bull (300kg)

5.30

5.65

NI Cow (200kg)

4.35

4.50

SI Steer (300kg)

5.30

5.25

5.70

SI Bull (300kg)

5.05

5.20

SI Cow (200kg)

3.95

3.80

4.30

US imported 95CL bull

6.66

6.58

7.18

US domestic 90CL cow

7.10

7.03

6.99

Export markets (NZ$/kg)

North Island steer (300kg)

PANORAMA: Stock awaiting sale at the Feilding yards recently.

5.5

Small improvement in sentiment on store cattle

5.0 4.5 4.0 South Island steer (300kg)

6.0

NZ venison 60kg stag

5.5

c/k kg (net)

$/kg

600

5.0 500

400 4.5 300

4.0

Oct Oct

Dec Dec

Feb Feb

5‐yr ave

Apr Apr

Jun Jun

Aug Aug

Last yr

This yr

VENISON Slaughter price (NZ$/kg)

Last week Prior week

Last year

NI Stag (60kg)

10.80

9.10

NI Hind (50kg)

10.70

9.00

SI Stag (60kg)

11.10

9.10

SI Hind (50kg)

11.00

9.00

New Zealand venison (60kg Stag)

$/kg

11 10

c/k kg (net)

600 9

NZ venison 60kg stag

500 8

400 7

300

6 Oct

Oct

Dec Feb Dec Feb 5‐yr ave

Apr Apr Last yr

Jun Jun

Photos: Courtney Dyason

Aug Aug This yr

HE underlying theme of the saleyards last week was the better results on both store and prime cattle, even on what were often small and mixed quality yardings. In saying that, store lambs have continued their upwards trajectory too, supported by on-going increases in schedules. NORTHLAND NORTHLAND A slightly reduced yarding was on offer at WELLSFORD, with just over 400 cattle penned. A moderate buying bench was buoyed by input from the Waikato whose interest was directed mainly at the older pens. R2 Hereford cross steers, 465-480kg, were solid at $2.45-$2.56/kg, while beef-dairy steers eased by a small margin for the majority, with AngusFriesian, 425-520kg, back to $2.41$2.46/kg, whilst Hereford-Friesian, 315-485kg, traded at $2.51-$2.69/kg. R2 Hereford cross heifers, 345420kg, softened to $2.26-$2.46/kg. Angus-Friesian, 780kg, managed

$2.36, whilst Hereford-Friesian lines 355-455kg also eased to $2.47-$2.54/ kg In the R1 pens those on the rails were looking for steers, however heifers were harder going and prices reflected this. Angus steers, 195220kg, were solid at $660-$730, while Hereford, 210-255kg, made similar returns at $690-$770. Beef-dairy lines varied based on quality and AngusFriesian, 195-260kg, returned $700$760, with Hereford-Friesian, 205240kg, and managing $715-$790. Heifer results were varied and Hereford-cross, 205-260kg, softened to $460-$515. Hereford-Friesian, 260kg, lifted to $830, though others of the same breeding and 205-280kg could only muster $600-$660. Just 300 odd head were put on offer at KAIKOHE, but there did seem to be a gentle lift throughout the yarding, as reported by Vaughan Vujcich of PGG Wrightston. R2 beef-types steers were around $2.55-$2.70/kg, but the R2 beef heifers were probably the highlight of this age

bracket, lifting to $2.54-$2.62/kg. A line of R2 Friesian bulls were $2.54/kg. The better pricing in the R1 lines was reserved for the beef steers at $3.10-$3.20/kg, whereas beef-cross were more like $3.00-$3.06/kg. Some R1 beef heifers tended to make $2.70$2.80/kg. Some mainly in-calf Friesian cows were at $1.80-$1.85/kg. AUCKLAND AUCKLAND Smaller numbers of store cattle worked in vendors favour at PUKEKOHE, where prices were much better than previous weeks. Through the older cattle it was steadier though, as prime steers made $2.69-$2.81/kg and prime heifers were $2.55-$2.70/kg. Boner cows were anywhere across $1.54-$1.89/kg. Medium R2 steers clocked in at $2.25-$2.53/kg, with similar heifers just as strong at $2.40-$2.50/kg. Some good 240kg R1 steers made a respectable $760, while other

Continued page 38

29, 2017

NOVEMBER

EYE LIVESTOCK TTLE TARANAKI CA

WHAT’S HAPPENING AT YOUR SALEYARD?

2.47

2.96

2.86

2.73

Store cattle

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

Suz Bremner

225 - 245KG

310KG

350 - 415KG

400 - 505KG

1-YEA R HEIFE BEEF/ DAIRY

1-YEA R STEER BEEF/ DAIRY

2-YEA R STEER BEEF/ DAIRY

tallies

Weaner 13

Steer Heifer

1-year 112

2-year+ 34 9

Total 159

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

Jer

1400

540 475 - 506 401 - 445 366

M/G M

546 492 377

2 R

2-YEAR HEIFE Ang/Fr

Here/Jer Fr & Fr x

M/G

Jer x

Ang/Fr Here/Fr

M/G

L/M

530 370 467 315 451 320

4.0

$/kg

$/hd 1140

452

Fr x

Weight

Cond.

Tally

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

3.5

2.52

3.0

2.59

2.5

2.74 - 2.77 2.70 - 2.72

2.0 100kg

200kg

300kg Steers

500kg 400kg Heifers

2.82 2.48 1.59 2.75 2.46 2.75 2.54 2.35 1.25

ph 0800 85

info@agrihq.co.nz

600kg

2.57

SUBSCRIBE TODAY AT AGRIHQ.CO.NZ/FARMER

agriHQ.co.nz

Beef/Dairy

STORE CATT

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

0800 85 25 80

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

25 80

grihq.co.nz

web agrihq.co.nz

email info@a

2398HQV2

$/kg

6.0

Markets

38 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018 crossbred types were more like $460-$600. R1 heifers sold at $250$580. COUNTIES COUNTIES Outside buying interest contributed to a slight lift in prices for well-bred R2 steers at TUAKAU last Thursday, but younger cattle were harder to move, Craig Chamberlain of Carrfields Livestock reported. About 500 cattle were yarded, with the heavier R2 steers in the 450-570kg weight range trading at $2.65-$2.74/kg. Prices for 400450kg steers ranged from $2.62/kg to $2.84/kg, depending on breed. R1 steers, 200kg-plus, made $3.20$3.87/kg, $680-$780, and lighter types, 140-200kg, $620-$720. An entry of killable heifers at 480-560kg sold well at $2.75/kg, but interest in store heifers was fairly patchy. R2 heifers, 380450kg, returned $2.36-$2.52/kg and a small offering of yearling heifers made $535-$700, with the better money paid for well-bred Hereford-Friesians. Prices for a yarding of 420head firmed by 5-10c/kg at last Wednesday’s prime sale. Heavy steers, 650kg-plus, traded at $2.78-$2.89/kg with medium types making $2.70-$2.82/kg and trade steers $2.68-$2.78/kg. Heavy heifers, 500kg-plus, fetched $2.68-$2.75/kg and light-mediums $2.62-$2.75/kg. A small offering of beef cows sold at $2.18-$2.38/ kg and the heavier Friesian cows made$1.94-$2.26/kg. Medium cows earned $1.81-$1.91/kg and lighter boners $1.56-$1.78/kg. Over 1000 ewes and lambs were presented at last Monday’s sheep sale and the market remained strong. Heavy prime lambs traded at $160-$196, with mediums making $135-$158 and lighter primes $115-$133. Prices for a small offering of store lambs ranged from $75 to $98 and the best of the prime ewes made $138$165. Medium ewes $105-$135 and lighter types $70-$100.

WAIKATO A mainly local buying bench was in place at FRANKTON, though they had competition from Rotorua for the R1 heifers. They were greeted by a bit of a mixed bag in the slightly reduced yarding, quality was varied throughout and prices reflected this. Only a smidgen of R3 cattle were on offer and four Hereford-cross steers, 500kg, managed $2.60/kg, whilst Friesian R3 heifers, 355kg, earned $2.02/kg. Results were mixed in the R2 pens with steers and bulls mainly steady whilst heifers eased for the majority. Beef-cross R2 steers, 310460kg, were solid at $2.50-$2.67/ kg, with 405-445kg HerefordFriesian steady at $2.74-$2.75/kg. Friesian and Friesian-cross traded at $2.41-$2.58/kg. R2 heifers softened with Hereford-cross, 335-400kg, at $2.27-$2.41/kg, and 250-375kg Friesian lines back to $1.67-$1.91/ kg. Friesian R2 bulls, 340-580kg, fetched $2.38-$2.54/kg. The market was solid for the majority in the R1 pens. Herefordcross steers, 200kg, made $530$590, with Hereford-Friesian, 150245kg, strong returning $700-$805. Heifers were steady to lifting, with good support from the rails.

Angus and Angus-cross, 195-230kg lifted to $580-$700, and 195-265kg beef-cross achieved $590-$790. Angus-Friesian, 180-245kg, were strong at $755-$850. R1 beef and beef-dairy bulls traded at $555$640. Autumn-born R1 beef-dairy heifers were solid with 105kg earning $415-$435, whilst beefcross and beef-dairy bulls, 100105kg, fetched $430-$528. The prime market was steady to lifting for most. Angus-Friesian and Hereford-Friesian steers had good support and 635-655kg lifted to $2.77-$2.81/kg. Hereford-cross were also strong with 550-645kg, making $2.77-$2.79/kg. Heifers results were mixed with Hereford-cross, 450kg, easing to $2.65/kg, whilst beef-dairy lines 465-505kg were solid at $2.582.62/kg. Dairy bred boner cows, 425-680kg traded at $1.71-$2.09/ kg BAY OF PLENTY BAY OF PLENTY The fact that it’s the middle of winter didn’t seem to worry buyers at RANGIURU who comfortably paid more across the board for store and prime cattle this week. There weren’t many cattle available, but buyers did show their appreciation for those lines worthy of a second look. Three 550kg Angus were the strongest of R2 and R3 steers, selling for a solid $2.96/kg, while a large line of 425kg Hereford-Jersey’s gave a good benchmark for these types at $2.67/kg. Most of the store numbers were made up of R2 heifers. Good lines of straight-Hereford’s and Hereford-Friesians, 325-420kg, were $2.54-$2.67/kg, with only a few Angus and Angus-cross at $2.49/kg. Some 375-415kg Friesians heifers were $2.27-$2.52/ kg. There were few R1 cattle of note apart from two lines of 190-330kg Angus bulls at $2.79-$2.92/kg. A large consignment of unrecorded dairy cows and heifers bulked numbers. Nearly all the boner cows were in-calf, putting 460-540kg Friesians at $2.01$2.11/kg, though two similar weighted lines punched a bit higher at $2.16-$2.18/kg. Beef cows were in short supply, with dry 460-540kg lines at $2.18-$2.28/ kg, occasionally making more. The rest of the prime numbers largely consisted of beef steers. Some 730kg traditional’s were the strongest at $2.95-$2.96/kg, whereas 540-570kg beef-Friesians made $2.69-$2.75/kg. It was a solid sale for the 400 odd lambs and ewes available. Top prices for the prime lambs was $164-$165, with store lambs maxing out at $125. TARANAKI TARANAKI It was another typical winter yarding in that there wasn’t too much on offer at TARANAKI. However local buyers braved a bitter morning frost to make the trip in and showed good competition for anything with quality to it. The older steers were down just a touch but still made healthy returns. Nearly all 390-515kg steers, both R2’s and R3’s, made $2.69-$2.79/kg. There was one pen of 395kg Hereford-cross steers which were pushed as high as $2.92/kg though.

Buyers were very keen on the few small lines of R2 heifers. Beefcross heifers, 295-465kg, were up there with the steers at $2.63$2.76/kg. There wasn’t much worth talking about through the R1 cattle apart from two lines of 195230kg Hereford-Friesian steers which made a solid $3.36-$3.42/ kg, $660-$780 and some 255kg Hereford-Friesian heifers at $735, $2.91/kg. A few young in-calf Jersey cows and heifers, 460-520kg, added something a little different to the sale. Most of these sold well for what they were, mainly at $1060$1140, $2.19-$2.34/kg. POVERTY BAY POVERTY BAY Demand for the 2300 store lambs was relatively tame at MATAWHERO. Good male lambs were $124.50-$126, dropping to $106-$111 for the larger lines of medium and medium-light males. A line of heavy ewe lambs were $131.50, whereas good pens were $111-$119. Medium ewe lambs made $90-$100.50 and a few pens of light lambs were $75-$86. A single line of Poll Dorest ewes, scanning at 170%, made a very respectable $194. HAWKE’S BAY HAWKE’S BAY Two beautiful crisp winters days greeted salegoers at STORTFORD LODGE last week, with throughput up for both prime and store sales and this did not diminish the markets in the least.

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A boost in numbers both for ewes and lambs last Monday did nothing to soften the market. A solid buying bench was buoyed by an extra buyer that was very active. Good quality lambs keep coming and returns were steady for the majority. Top male and cryptorchid lambs earned $190-$200, with ram lambs bettering this at $217 for a line of 16 very heavy types. Ewe lambs topped their section at very similar weights managing $208. Other very heavy male and cryptorchid lines traded at $176$206, with ewe lambs not far behind at $189-$203.50. Heavy cryptorchid lambs softened to $146.50-$160, with males steady at $140-$176, mixed sex lines of similar condition were also steady at $102. Heavy ewe lambs maintained levels of $144$172. The lighter end traded at $120-$134.50 for all types. More two-tooth ewes were on offer and were well received with returns strong, Heavies made $140.50-$152, with medium-good to very good types earning $127-

$130, light-medium to medium managed $99-$116. The mixed aged ewe market was steady to lifting for the majority though the top line did not make the premium that has been common as of late and had to settle for a still strong $170.50, with other very heavy types fetching $167. Heavy ewes lifted to $141-$156.50, and very good types were steady at $133-$136.50. Medium-good types softened to $120-$124, medium ewes were steady at $110-$119.50, while light medium lifted to $105-$119.50. Just over 80 cattle were penned a good portion of these were Angus steers that had once again been in overnight, last week’s offering was a little lighter than previous sales at 530-585kg, and they traded for 2-4c/kg less earning $2.97-$2.98/kg. Five Angus heifers, 600kg, were solid returning $2.86/kg. Heavy Angus cows were on the menu and traded solidly with the majority, 700-730kg, at $2.11-$2.15/kg, while the next cut, 715kg, managed $2.07/kg. A decent crowd gathered in the rostrum at STORTFORD LODGE last Wednesday and there was plenty of interest in the R3 steers and R2 cattle. This waned later in the proceedings for R1 lines, but with only a handful on offer they all found homes. R3 Angus and Angus-Hereford, 505kg, were very well received lifting to $3.15/kg, while HerefordFriesian, 555kg, managed $2.92/ kg. R2 steers were thin on the ground with most lines three head or less. Angus and Angus-Hereford lines, 375kg and 520kg, traded at very similar levels earning $2.53/ kg and $2.49/kg respectively and the remainder, 355-360kg, returned $2.21-$2.29/kg regardless of breed. A consignment of specially advertised 395-430kg R2 Angus heifers sold well at $3.01-$3.02/kg. Other lines of the same breeding, 355-375kg, returning $2.75/kg. Bigger lines of Friesian R2 bulls, were on offer and made solid returns with 385-450kg, fetching $2.83-$2.87/kg, and heavier 485kg lines traded at $2.72-$2.74/kg. All R1 bulls and heifers 95212kg, made $250-$500. With close to 7000 sheep yarded both store lamb and scanned-inlamb ewes numbers increased, but this did not dull the store lamb market as it once again lifted for the majority. Scanned-in-lamb ewes did not quite meet expectations for lines with good scanning percentages and the top price for the day went to a smaller line of 5-6 year Romney-cross ewes, scanned at 181%, returning $194. The top 5-year ewes, scanned at 169% earned $188-$189, whilst those scanned at 100%-148% managed $141-$150. Mixed age lines made similar returns with ewes scanned at 176% fetching $193, while the remainder scanned at 137%-146%, earned $88.50-$128. Run-withram lines traded at $85-$151. In the lamb pens the market continued strongly, top honors for the day went to a smaller run of very heavy ram lambs at $177.50, good types of the same lifted $130.50-$139, while lighter lines softened. Good males made very similar

returns lifting to $128-$145. Cryptorchid of the same weight softened by $10 to $123, by contrast heavier lines lifted $11 to $139.50. Wether lambs were steady with very good types trading at $128$156.50. Medium-good mixed-sex lines had strong returns at $120$125.50, whilst good types lifted $6 to $134.50. Ewe lambs went from strength to strength with lifts from $3$10 for the majority, medium to medium-good returned $115$132.50, and light-medium fetched $95-$120. MANAWATU MANAWATU The RONGOTEA sale saw R2 Hereford-Friesian steers made up to $1110, $2.52/kg, as reported by Daryl Harwood of NZ Farmers Livestock. A line of 465kg R2 Friesian bulls topped the steers at $2.53/kg, while the better R2 Hereford-Friesian and Shorthorn heifers, 345-490kg, were $2.30$2.63/kg. R1 Hereford-Friesian steers, 230kg, were near identical to some 230kg Hereford bulls at $545-$550, while some 190kg HerefordFriesian bulls made $500. R1 Hereford-Friesian heifers, 190195kg, weren’t far behind either at $2.24-$2.42/kg, with 215kg Dexter heifers at $410. The highlight of the autumnborn weaners was a line of 120kg Friesian bulls at $505, whereas other 100-105kg crossbred bulls could only make as much as $390. Hereford-Friesian heifers, 120kg, were strong too at $450. Boner Friesian cows went as high as $1.88/kg for 560kg, while 415-510kg crossbred lines were $1.70-$1.77/kg. A pen of 615kg Hereford-Friesian were more like $2.06/kg. A line of in-calf Friesian cows were $860. A few dairy calves were available too. Friesian bull calves were $205-$235, with HerefordFriesians at $190-$265. Some Hereford-Friesian heifer calves made $190-$230. Weaner pigs were $50-$70. It was a bit of a non-event in the cattle yards at the FEILDING prime sale. Nearly everything was a mixture of dairy cows, both dry and in-calf. One local farmer trader was again the main buyer. Generally 430-590kg Friesian cows in decent condition made $1.72-$1.80/kg. There was no obvious premium on in-calf lines, with these bought to be slaughtered. Some lesser lines, 325-450kg, were $1.48-$1.60/kg through both dairy and beef-cross breeds. A single 520kg traditional steer was $2.70/kg, while two 390kg Angus heifers made $2.37/kg. Activity was easier to find through the sheep pens. The focus switched back to lambs as ewe numbers essentially halved. The smaller ewe yarding kept those bidding on these honest, causing the mid-point pricing on these to lift $5/hd to $135. The heaviest ewes didn’t quite have the same weight to them as a week ago, restricting the top dollar to $159.50. However there were plenty of other good and very good lines available, mainly making $131-$149. Other lines were quite mixed in quality, evenly spread across $74-$121. The extra numbers of lambs

Markets

FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018

ALL COUNTED: A scene from a recent sale in Feilding. didn’t have any negative impact on what buyers were willing to pay. In fact the mid-point price was actually up $3.50/hd on last week to $159. Some very heavy ram lambs took top honours for the day at $205, followed by a line of males at $195. Generally very heavy lambs made $160-$185, the next cut $149-$159, and the remainder rarely went below $130. Around a thousand store cattle yarded at FEILDING which were mainly a mixture of both straight beef and beef-Friesian R2 cattle, though a consignment of beef R1 steers caught buyers attention. A good selection of R3 steers stayed on par with a week ago. This put 420-640kg traditional lines at $2.94-$3.04/kg, though the middle of these weights was were the sweet-spot was for bidders. One pen of 625kg Charolais-cross steers were the top for the day at $1950, $3.00/kg. All the straight-beef steers were traditional lines, with 405-490kg mainly bought for $3.00-$3.12/ kg. Other Hereford-Frieisan and Murray Grey-cross steers, 390495kg, were more like $2.65-$2.85/ kg. A similar mixture of types through the R2 heifers suited buyers, who often paid just a small discount on these versus the steers. Decent lines of 345-415kg traditional heifers went for $2.98$3.11/kg, whereas other small lines of 390-475kg beef-Friesian and beef-cross heifers made $2.55-$2.79/kg. Some 555-570kg R2 Friesian bulls were $2.60$2.65/kg, rising to $2.76/kg for a 460kg pen. A consignment of 235-275kg R1 Charolais-cross steers caught the attention of several bidders, which pushed these all the way to $4.03$4.17/kg, though one lighter pen was just below this. R1 Charolaiscross heifers, 190-245kg, from the same herd were slower selling though at $3.36-$3.50/kg. One large line of 175kg Friesian bulls made $620, but few other bulls were worth a mention. A small line of 110kg autumnborn Hereford-Friesian bulls were $510. Some 580kg traditional cows made $1090, $1.88/kg. It was a repeat of the week prior in the sheep pens. Around 2000 in-lamb ewes sold for lower rates, but this was more to do with lower scanning percentages and smaller

lines than any obvious market weakness. A very large line of RWR Perendale ewes sold two ways for $172-$176. Other large lines of scanned-in-lamb ewes were quite varied, putting mixed age and 5-year Romney and Perendales, SIL 151-163%, anywhere in the $146-$178 range. Near to 15,000 store lambs again rose a little. Heavy male-type lambs were $146-$157, though the largest ram lambs took everything to another level at $168-$178. Few medium sized males were available, and quality more than weight mattered as made between $117 and $147. Some quite light ram lambs were fought over at $114-$123.50. Ewe lambs again firmed a notch, even with quality on these seemingly deteriorating by the week. Good to heavy pens were sold at $116-$136, whereas the mediums were more like $107$120. WAIRARAPA WAIRARAPA The MASTERTON yards were host to a selection of 2300 capital stock ewes following a farm sale, as reported by Steve Wilkinson of PGG Wrightson. Bidding was supported by a mixture of locals, as well as some Dannevirke and Wellington bidders. The entire sale, aged four-tooth to 5-years and SIL 170%, averaged $181. The top cuts four each age bracket were; four-tooths at $195, six-tooths at $190, 4-years at $184, and 5-years at $181. CANTERBURY CANTERBURY Store cattle managed to sell above where they were a fortnight ago at CANTERBURY PARK. R2 beef-Friesian steers, 430-515kg, made a reasonable $2.59-$2.62/ kg, with some 350-410kg mixed sex lines 5c/kg off that pace. Only two lines of R2 heifers were sold, the strongest being some 365kg Hereford-Friesians at $2.61/kg. A fair selection of R1 bulls were available. Beef-Friesian and Friesian bulls, 170-195kg, were $500-$510, and one pen of 220kg Angus made $610. Two lines of 165-195kg Angus heifers caught the attention of buyers as they sold for $3.62-$3.65/kg, $605$715. Prime steers lifted around 10c/kg, putting the few 580660kg traditional lines at $2.70$2.76/kg, whereas 535-780kg

Hereford-Friesians were more like $2.63-$2.73/kg. Forward store types made a small premium as 400-485kg Charolais-cross and Hereford-Friesians sold at $2.76$2.82/kg. The jump in pricing was more pronounced through the heifers. Beef and beef-Friesian lines, 450555kg, nearly always sold into the $2.61-$2.73/kg range. Prime cows were mainly a mixture of 565-730kg beef-types, making $2.01-$2.11/kg. Some 460-675kg Friesians were down at $1.70-$1.80/kg, however. Prime bulls were often quite heavy or light, only making $1.41-$1.56/kg, but two 770-785kg traditional lines hit a sweet spot at $2.41-$2.42/kg. The sheep sale continued the constant trend of exceptional pricing across both store and prime pens. All grades of store lambs were sought after, though this sale was better supplied with heavy lines rather than lighter types. Good and heavy mixed sex store lambs were $123-$134, though similar ram and cryptorchid lines were at $133-$136. The mid-range mixed sex were at $119-$134, with ewes lambs at the same weights makings $123-$132. Very little else was lighter, and those that were rarely went below $110. With scanning underway it was little surprise to see a good selection of dry prime ewes available. The mid-point on these lifted $6/hd to $144, though this

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was partly due to better quality. Generally good ewes were $170$190, mediums around $140-$170 and lighter pens made $70-$110. One line sold for an impressive $261. Competition on the prime lambs was a good as ever. It was not uncommon for more than $200 to be made. Top dollar went to one pen at $216, however most lambs were within the $165-$190 range, with some variation either side depending on quality. A good number of buyers were on the rails at COALGATE last week, with store lamb throughput nearly doubling. If there any worries about the increase diminishing the market it was quickly extinguished. Top male and mixed sex lines lifted to $140-$142 with the next cut also strengthening to $120-$137. Medium types were strong at $100-$119, while an increased number of smaller framed crossbred types were on offer and managed $95-$99. Very few traded below this level. Prime lambs continue to go

from strength to strength, with the top end lifting to $202-$210, and the next cut $185-$199. The majority of the yarding traded at $150-$179, with the lighter end earning $130-$149 and only a handful trading below this. Good support from the rails kept the ewe market strong. Top two-tooth ewes lifted to $201, with the majority of the remainder fetching $138-$146. Top mixed-age ewes also strengthened to $201, with other heavy types steady at $178-$187. The next cut traded at $133$157, medium types were steady at $105-$126, whilst the tail end managed $70-$92. Males, predominantly wether lines, traded at $90-$115. In the cattle pens a small lift in numbers from the previous sale was enough for the local buying bench to get their teeth into and returns were steady for the limited volume available. R2 Angus steers, 260-360kg, traded at $2.69-$2.83/kg, whilst those in the market for Herefordcross obviously had per head budgets in mind with 330kg and 435kg lines making $1120, $3.41/ kg and $1200, $2.77/kg. Four R2 Angus heifers, 355kg, managed $2.69/kg. Beef bred R1 heifers, 185-255kg, were solid at $535-$700, while two mixed sex Angus, 325kg, earned $910. A small consignment of runwith-bull beef-cross heifers and cows were on offer, put to a Limousin bull and due to calve in November. The cows sold in two runs with 635kg returning $1200, and 465kg, $820. Heifers also sold in two cuts with 485kg solid at $1080, and 395kg fetched $700. The small prime offering was steady to lifting for the majority, 550kg prime steers were steady at $2.63/kg, while 445-480kg lifted to $2.66-$2.81/kg. Heifers, 445kg, were steady at $2.63/kg. Prime cows, 515-560kg, lifted to $1.69-$1.80/kg SOUTH CANTERBURY SOUTH CANTERBURY There were mixed fortunes across the 200 odd prime cattle brought in to TEMUKA. Steers were the weakest of all sections, back at least 5c/kg on the week prior. Hereford-Friesian and Murray Grey steers, 505-600kg, were nearly all bought at $2.54$2.66/kg. Some heavier lines, both straight beef and beef-Friesian, were more like $2.66-$2.75/kg. The heavier beef and beefcross heifers were punching into the same territory as the steers, mainly holding their ground. Anything weighing 555kg plus was bought at $2.58-$2.68/kg, applying to all breeds that had some beef blood in them. Any lighter versions of the same lines were much slower shifting, regularly $2.53/kg or lower. The better dairy heifers, 455-540kg, were at $2.30-$2.40/kg, but fell back under $2.00/kg for the remainder. There was a real spark through the boner cows, which jumped by 10-15c/kg in just the space of a week. Virtually all 500kg plus dairy lines were $1.69-$1.79/kg, though two pens did reach $1.85-$1.90/ kg. Beef cows were back on the menu much to the enthusiasm of buyers. These mainly weighed in at 580-740kg, selling for a solid

$2.02-$2.10/kg. A single 790kg Hereford was chased up to $2.14/ kg. Bulls were out in reasonable numbers and very few were cull sire lines. Most were beef and beef-cross, with the 585-675kg pens making $2.60-$2.68/kg. A few lighter and heavier bulls were more like $2.20-$2.32/kg. A somewhat quiet day in the sheep yards played right into vendors’ hands, seeing lifts through all classes of lambs and ewes. Half of the numbers were a mixture of mainly good mixed sex store lambs Heavy and good mixed sex store lambs made $129-$146, though one line of heavy males was the strongest for the day at $150. The next cut of mixed lambs were near identical on a per head basis at $126-$148. Two large lines of good Merino-cross lambs were just below the rest of the market at $128-$135. The prime ewe yarding went against the grain for this time of the year, shrinking instead of growing, which saw competition on these strengthen. Reasonable quality meant only a small section sold below $140, with the core $140-$168, while the top ewes made $248. Prime lambs had a solid day too as the market on these followed schedules upwards. A large portion of the lambs were sold in the $160-$179 range, though quite a few lighter pens were more like $130-$139. OTAGO OTAGO Large numbers of in-calf cows and a scattering of other store cattle added something different to the BALCLUTHA sale, as reported by Alex Horn of PGG Wrightson. The highlight of the in-calf cows was some capital stock Angus and Hereford lines at $1380-$1420. Other store cattle sold to expectations. R2 Angus steers, 500kg plus, made $2.80/kg, while mixed sex lines of 350-450kg Hereford-Friesians made $2.40$2.75/kg. Some 150-200kg R1 Friesian bulls were $2.30/kg. The market on store lambs remained strong on small numbers. Top store lambs were $120-$135, mediums $100-$120, and smaller lines $90-$100. Both prime ewes and lambs sold well too. Heavy ewes were $180-$216, mediums $130-$180 and the smaller types $100-$120. Prime lambs peaked at $170-$200, mediums were $140-$170, and the back-end made $120-$140. SOUTHLAND SOUTHLAND There was no sign of demand slowing for a small-to-medium sized yarding at CHARLTON, as reported by Nicol Gray of PGG Wrightson. Quality store lambs were sought after, putting the top cuts at $115$125 and mediums at $105-$112. Light pens were $85-$100. Strong interest in prime lambs meant these were pushed to $155$180 for the heavy lines. Mediums and light pens were $135-$150 and $120-$130 respectively. Prime ewes were solid too. Heavy ewes went for $160-$175, mediums were $135-$155 and the lighter end made $80-$115. Local trade rams were as much as $100-$110, falling to $70-$90 and $50-$60 for the next two cuts.

Markets

40 FARMERS WEEKLY – farmersweekly.co.nz – July 2, 2018 NI SLAUGHTER MUTTON

NI SLAUGHTER STEER

SI SLAUGHTER COW

($/KG)

MEDIUM EWE LAMBS AT STORTFORD LODGE

($/KG)

($/HD)

5.10

5.40

3.95

125.50-128.00

Bobby kill likely to rise Annette Scott annettescott@xtra.co.nz

GENERAL nervousness about rearing calves is likely to impact on the bobby calf kill this season but more concerning will be the flow-on two years down the track, Anzco livestock and agribusiness general manager Grant Bunting says. “This year we have seen a record bull kill and that is the result of the calf retention of two years ago when people opted to rear calves.” But given the general nervousness around Mycoplasma bovis it’s looking likely there will be fewer calves reared this season and the bobby kill will climb. “And you would have to assume in two years that will flow through to bull numbers available and a shortage of bull beef,” Bunting said. “We know there are people that may well have contemplated rearing but are now looking to opt out and that’s not so much the dairy farmers themselves but the rearers.” Number one, they have to be mindful of confidence in the properties they are securing calves from and that’s likely to limit demand. Number two is cost and the implications of pasteurising milk and rising milk powder costs won’t be economic for smaller finishers.

CARRY ON: Alliance will pick up bobby calves as usual but in line with Primary Industries Ministry instructions, Alliance livestock and shareholder services general manager Heather Stacy says.

In that light, Anzco expects an increased bobby kill. “Which is not a problem as far as processing goes but is a worry for us in two years when arguably there’s less bulls available.” Anzco will pick up from restricted place properties operating in accordance with Primary Industries Ministry permits. Alliance livestock and shareholder services general manager Heather Stacy said the company has a team in the field across the country with applications from farmers starting to come in. “Some farmers are not

sure, some are more, some are less, numbers are a bit hard to call at this stage.” Alliance will collect bobby calves the same as always and farms under MPI restrictions will be picked up and processed according to MPI instruction. Silver Fern Farms is expecting little impact in its bobby kill operations because it won’t be picking up calves from properties under MPI restriction. “We won’t be collecting calves from affected Restrict Place Notice farms to reduce complexity of pick-ups for transport

routes,” sustainability and communications head Justin Courtney said. “It will also give confidence to our suppliers that our service won’t be a potential vector from infected stock. “Considering the uncertainty of the season we still anticipate volumes will be in line with last season. “Farmers will be looking at next season’s demand for replacement stock and this will be a factor in stock flows.” LIC is making changes to its Wagyu calf collections, asking farmers to keep the calves for longer so all calves from one farm are collected in one pick-up with a clean, dedicated stock truck for each farm. That decision, made with First Light, is a precautionary approach to minimise any biosecurity risks associated with collecting and transporting animals across different farms. Farmers will be paid extra to help cover the increased cost of rearing. MPI said all farms under regulatory requirements will require a permit to move bobby calves off a property. The permit has requirements that must be met by the farmer and the transporter, in particular, a truck carrying bobbies must go directly to the processing plant and not pick up other animals at farms along the way. The truck must be thoroughly cleaned at the plant after discharging the animals.

Stay Farmstrong. Hang Out With Your Mates. Connecting with your mates is a massive part of keeping well, whether you’re farming or playing rugby. Sharing the ups and downs of life helps you keep things in perspective and recharge your batteries. So whether it’s hunting, fishing, playing sport or just having a barbie, make sure you catch up with your mates this summer.

high $3.95-$4.17/kg $1380-$1420 lights R1 Charolais-cross Capital stock Angus steers, 205-275kg, at Feilding

and Hereford cows at Balclutha

Caution advised with beef prices WHILE lamb prices are sitting comfortably in the record books for this time of the year, beef prices are not looking so rosy. The beef market is struggling with higher supplies globally, despite relatively Mel Croad good demand. Most farmgate beef AgriHQ Analyst prices are down by at least 30-40c/kg compared to June 2017. Our exposure to key overseas markets lessens through the winter months on the back of smaller export volumes. However, changes in these markets through this period will dictate pricing levels as supplies start building in spring. Weaker overseas and domestic market conditions have affected the prime beef market though these conditions are expected to improve over coming months as supplies start to tighten. The real problem lies with the United States market given New Zealand’s heavy reliance on it for absorbing our large supplies of bull and cow meat. It has been clearly documented that US beef production was to hit another high this year. Six months into the year and it remains on target to produce a whopping 12.3 million tonnes of beef in 2018. That compares with NZ’s annual production in 2017 of 670,000 tonnes. Imported beef prices are US30c/lb lower than a year ago. The favourable position of the NZD is providing little relief with returns in NZD terms still 10% below June last year. US beef production will remain elevated through our winter and is expected to remain high into October and November. This will provide a challenging market environment for US imported beef prices as we move into spring. US end users will continue to have ample volumes of domestic beef at their disposal as the seasonal demand for beef tapers off. That, combined with the erosion in competing meat prices, will prevent any upside in US domestic or imported beef prices. Unfortunately that will keep farmgate manufacturing beef prices under the levels seen last spring on the basis of these weaker market conditions. mel.croad@nzx.com

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