Farmers Weekly NZ July 17 2017 by AgriHQ

25 A green take Vol 16 No 28, July 17, 2017

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Fonterra’s fresh view Hugh Stringleman

hugh.stringleman@nzx.com

ONTERRA chief executive Theo Spierings has put forward a vision for restoring 50 water catchments throughout New Zealand in which the cooperative and its dairy farmers operate. He told the annual meeting of the NZ Sustainable Business Council that Fonterra was prepared to lead, but it would achieve freshwater quality improvements only by working in partnerships. These would be along the lines of the Living Waters partnership between Fonterra and the Department of Conservation, now working in five of the most crucial catchments. Fonterra was holding discussions with DOC over how that effort could be extended to 50 catchments and over what time frame. It would need input from regional authorities and communities to prioritise the huge task, he said. “We are going to step up the pace on water. In NZ everyone is passionate about water, and so are we. “We want to show NZ that we share the same passion and ambition for swimmable rivers. We have to share responsibility and we have to be good stewards.” Spierings said the partnerships would be with communities, sheep and beef farmers, land owners and tourist operators. “Living Water has taught us a

huge amount and we are making a significant impact on the initial regions,” he said. “Now we want to amplify those results with the launch of a new initiative that will target 50 catchments. “Our immediate focus will be on working with communities, government and key partners to identify the catchments and develop a strategic framework for the programme. “This is a major undertaking and we need to get it right, but we are committed to making substantial progress,” Spierings said. He gave no time frame, title or the size of the financial commitment by Fonterra. He said the board of directors and Fonterra’s farmers knew that productivity in dairying needed to go up at the same time as its footprint needed to come down. When he first came to Fonterra in 2011 he looked at the Clean Streams Accord, introduced in 2002, to facilitate waterway riparian fencing and planting on farms. He now described it only as a “qualifier” for the industry in the social context, to show that it was serious about water quality. He then introduced Milk For Schools and Living Waters and appointed Richie McCaw as a Fonterra ambassador, moves that he now called “basic corporate responsibility 101”. Fonterra had therefore over a decade or more established its base for sustainability in all facets – environmental, employment, communities and for shareholders. Spierings said sustainability was a longer-term imperative and it had to become part of Fonterra’s DNA.

Starting young

7 SFF returns on the up

Vol 16 No 27, July 10, 2017

Pest fence bro

farmersweekly .co.nz

INSPIRED: Teagan and twin sister Keeley Maunsell want to become farmers just like their parents and Young Farmer of the Year contestant Lisa Kendall. HI, I’m Teagan and I want to tell you how awesome your frontpage photo of Lisa Kendall was (Farmers Weekly, July 10). My twin sister and I live on a dairy farm that Mum and Dad operate and own, and we If not, the value created by his V3 strategy and the disruptive technologies now being introduced would be eroded. “If you don’t do sustainability, you will lose value for the shareholders,” he said reflectively. Sustainability applied along the value chain, from farming to consumers, and it would be built by embracing new technologies over the next decade. At one end were agricultural

help because we want to be farmers too. I think it’s inspiring and I wish to be like her when I’m older. Teagan Maunsell, aged 9 Waiuku

and clean energy technologies, and genomics, moving on to food safety and traceability, plant robotics and blockchain technologies. At the consumer end was e-commerce and digital interconnectedness, where product choices were made partly on the reputation of the producer. “If this is all connected well it will create value for consumers

Annette Scott

annette.scott@ nzx.com

HE biosecurity system is creaking and won’t be sustainable in five years, Ministry for Primary Industries readiness and response director Geoff Gwyn says. Biosecurity had some big challenges that needed to be addressed collectively, he told farmers at the Federated Farmers arable industry conference. “To put it bluntly, our system is creaking. “Biosecurity is working but the model that is there is not sustainable for five years’ time. “Leave it to the Crown solely and it ain’t going to work. We have got to do it together,” Gwyn said. And while tourism great for the country was it created greater risk. “Passengers are 5% year on year. increasing We have to get smarter with how we do business.

space for frank and honest discussion to get better outcomes.

The Government had $80 million under investment in terms of biosecurity research and the future biosecurity model needed collaboration with effective leadership and governance, Gwyn said. Biosecurity readiness and response was a complex beast for the arable industry and all stakeholders must collaborate to find a way to engage with GIA, Foundation for Arable Research chief executive Nick Pyke told farmers.

To put it bluntly, our system is creaking. The model that is there is not sustainable for five years’ time.

I have a lot of confidence we will be better than where we are now.” An industry body was being formed to deal with the issue and sign a GIA Deed. It should be finalised next year. Pyke said while the industry had an informal chance to influence decision theory that meant making, in decisions could response be made for the industry rather than in collaboration with the industry.

Top talent com petes

“But we are complex – we have a heap of parties playing in our pond and all affected in some will be way all will be beneficiariesand in a response so we need working together.” to be all These stakeholders Federated Farmers, included millers, the grain flour and seed trade and feed manufacture “We have all rs. A GIA around Cost was the got to come to biosecurity big sticking the table with would work across point to get all knowledge, skill the parties over and the tools industry, he said. the the line. to manage – have the debate up While work had “But if we don’t front to do the started on get pre-battle work the arable GIA in GIA the decisions involved and control three years ago, will be the liabilities. several serious made for us and pest incursions the costs “For me it’s about had struck the imposed on us. industry, transparency putting GIA on “We need to get . the back burner the support “If we both don’t for the past 18 from all parties months. understand – consult and the problem “But we are back gain mandate we are just from those on track coming at it in and we have we represent loggerheads a plan to have and develop an and we get no a incorporated business case solution.” society with MPI,” Pyke The Government running by Septemberup and said. Industry this Agreement (GIA) year, if not sooner. The industry was the had IT’S ALL ON: Lisa “Once we get June 2018 deadline set a a GIA in place to have Year national finalKendall, 24, from Northland competes everything up in Feilding on Friday. in the Young Farmer and running. results. Check farmersweekly of the .co.nz for the full

Geoff Gwyn MPI

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and for our shareholders, divided about 80:20, I believe.” Therefore sustainability was central to Fonterra’s strategy across the areas of malnutrition, obesity and diet, water and the environment, climate and energy, and productivity. Concluding his address, Spierings said: “It is time for Fonterra to move from qualifying to differentiating. Let’s make it happen, together.”

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NEWS

NEW THINKING

23 Connecting the dots with IoT A 92-page study on New Zealand’s Internet of Things (IoT) status, commissioned by the NZ IoT Alliance, has found this country compares well with other G20 nations surveyed at the same time, chairman Graeme Muller says.

OPINION

26 4 Alliance looks to food service

Alternative View

-20

Cartoon �� 24 Letters �� 1, 24

From the Ridge �� 27

8 Water quality casts election

WORLD

Meat and fibre change of guard �� 3 Alliance looks to food service growth �� 4 Snow business like farming �� 5

-30

-50

Drier than normal (mm)

Meaty Matters �� 27

28-29 UK farmers set to cream

milk prices

AHDB Dairy has predicted British dairy farmers will enjoy strong milk prices over the northern hemisphere summer amid warnings by Arla of a butter and cream shortage this Christmas.

REGULARS

There are signs that the massive subsidisation of European agriculture could be cut back.

Editorial �� 24

Alternative View �� 26

threat

-10

Alliance Group hopes that its new food service business will be achieving annual sales above $100 million in the next three years or so.

11 EU farmer subsidies under

normal (mm)

Alan Emerson says rugby was the winner on the day.

Pulpit �� 25

An absolute certainty about this general election is that freshwater quality will be hotly debated. Claims were likely to herald the arrival of Armageddon or suggest things aren’t too bad.

60 Wetter than

growth

shadow

Soil Moisture Anomaly (mm) at 9am July 13, 2017

Real Estate �� 30-33 Employment �� 34 Classifieds �� 35 Livestock �� 35

MARKETS

Council at fault over dam project collapse �� 7

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

Job

of the

Week

General Manager – (Ahuwhenua). Parininihi ki Waitotara (PKW) is a Maori Incorporation based in Taranaki, Aotearoa. PKW own 20,000 hectares of some of the most productive dairy land in the world and have a range of business interests including dairy farming, crayfish, forestry and commercial property. PKW is an innovative, sustainable and successful business and the kaitiaki of our shareholders’ assets for future generations. For more information and a full job description visit the Farmers Weekly jobs site: farmersweeklyjobs. co.nz and click on General Manager category. To find all other agjobs click on ‘All Categories’. #agjobs at your fingertips.

Water quality casts election shadow �� 8 Fungicide resistance crops up as new weapon �� 10 EU farmer subsidies under threat �� 11 Emergency systems fix top priority �� 16 New strategy for arable farmers �� 19

40 Buoyant lamb market

NEWSMAKER

22 Young blood knocks ‘em cold As the country shivered last week through its coldest period of winter so far, 28-year-old Nigel Woodhead conceded the timing wasn’t great.

expected to wane

Easing procurement pressures are expected to slow the buoyant lamb price rises of the past six months.

Market Snapshot �� 36

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

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Meat and fibre change of guard Annette Scott annette.scott@nzx.com FOR meat and wool to progress, individuals must leave their entities at the door and talk in the best interests of the whole industry, former farming leader Rick Powdrell says. “Tinkering at the edges of change is not going to make it,” the outgoing Federated Farmers meat and fibre industry chairman said. “It’s time for big sky, forward thinking on the cost, marketing and competition challenges facing the New Zealand meat and wool sectors.” Complex ownership and marketing structures made achieving agreed national strategies very difficult, he said. “In the face of profitability, squeezed at all levels, and in the case of meat the future threat of synthetic protein, boldness and open discussion are more important than ever.” In completing his three-year tenure as national chairman he was confident he had left the

sector in good heart. Powdrell was unsuccessful in his bid for vice-president of the national organisation at the recent annual conference, but was happy his work on many fronts had been acknowledged. “I am jolly disappointed not to get back in (national board) – I thoroughly enjoyed my time on meat and fibre, but there are some good people there and they do have some challenges in front of them,” he said. Meantime, it was more time on the farm for Powdrell who had been invited to continue with a couple of his project involvements. A wool sector working group initiated by Powdrell was soon to report to the Ministry for Primary Industries on recommendations for next steps. “I am very passionate about the work of this wool group and will continue my involvement in this, and also with a couple of Primary Industry Training education groups,” he said. “Wool is the negative elephant in the room and if the desire

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COLLABORATION KEY: Incoming Federated Farmers meat and fibre chairman Miles Anderson believes initiatives to advance New Zealand’s meat and wool sectors are headed in the right direction.

by some to achieve significant industry change is to succeed, a very strong case will need to be created with clear evidence of a positive outcome for all participants. “At that adoption point selfinterests will have to be consigned to history, and those who aren’t prepared to join the united approach [will be] left to fend for themselves outside the tent,” Powdrell said. “I can’t say too much about it yet, but it’s like-minded wool industry enthusiasts doing extensive work to unify the industry and give it a strategic direction driven by an overarching fit-for-purpose body. “But as with the meat industry, we need individuals to leave their entities at the door and talk in the best interest of the whole industry. “That’s where we want to be.” How to get there? Watch this space, Powdrell said. He saw encouraging signs that the various meat industry players recognised the need to accelerate work on a national strategy. Recent programmes by Beef + Lamb NZ in market development

and the red meat story, together with the Red Meat Profit Partnership programme, had highlighted a new level of industry collaboration as industry partners from farm to market joined to work together. “The next challenge for these new initiatives is to develop the implementation plans, as all the work will be for nothing if visible returns are not evident,” Powdrell said. Incoming meat and fibre chairman Miles Anderson said he was keen to progress the new direction initiated by Powdrell. The sheep farmer from South Canterbury said he had worked alongside Powdrell for the past three years, and had no immediate plans for any dramatic change. A fourth-generation farmer on the family farm of 125 years, Anderson breeds mainly Romney and Romney-Border cross ewes, fattening as well as buying-in finishing lambs. “We did have beef but I sold them all in the drought and haven’t been brave enough to buy any back yet,” Anderson said.

He also ran a ewe-scanning business for 21 years and has been involved with Feds for 20 years, five as regional chairman of meat and fibre, and the past three years as national vice-chairman. “For the past five years I have been immersed solely in the farm, and I believe I have a pretty good idea of where we need to move (the industry) too, and confident we are headed in the right direction.” He was keen to keep the yarn rolling on the strong wool initiative and also his own baby, the wool industry education group aimed at establishing a tertiary qualification in wool technology. Anderson highlighted profitability as the biggest issue facing the sector. “We have seen a nice lift this season in sheep meat prices, the first in about five years, and we need to ensure that continues with an industry-wide strategy along with the wool plan, for change initiative. “There’s some big challenges but we have some good people to help drive this – collaboratively will be the key,” Anderson said.

Wairere, the traders’ advantage Bill Herrick is a specialised lamb trader near Martinborough in the South Wairarapa. He annually purchases Wairere bred store lambs from White Rock Station on the Wairarapa’s south coast. This year’s weaning draft of 1800 Wairere Dominator / Romney lambs averaged 29kg, with a range from 26 to 38kg, when they arrived in midDecember. The first draft on the January 4th saw 434 average 21kg carcass weight with the majority of the balance reaching the same average, in two drafts, by February 24th, with only 150 left to finish. “I know that I can budget on an average daily weight gain between 350 and 400gms a day, even in the Wairarapa summer heat”.

“I will happily pay a premium for Wairere bred lambs”

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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

News

Alliance looks to food service growth Alan Williams alan.williams@nzx.com ALLIANCE Group hopes that its new food service business will be achieving annual sales above $100 million in the next three years or so. A four-strong development team is working up a pilot programme in the United Kingdom that the meat exporter will use as a springboard for wider Europe, and into Asian markets as well, general manager sales Murray Brown said. “Who knows how it could go – we’re a $1.5 billion business and if we could get the food service up to 10% of total sales over three years that would be $100m to $150m.” Alliance is supplying advanced cuts to two high-end London restaurants in the pilot scheme and has another 80 to 100 potential customers, including hotels and cruise-line operators as well as restaurants. “They mightn’t all get over the line but we’d like to have 30 to 40 buying off us next year, and the first year will be a learning experience,” Brown said. The initial focus is on Asia and Japan-style cuisine. “We’ve been trialling with the two restaurants for six to eight

weeks, starting with lamb rack cutlets, so it’s still in the very early stages.’’ The programme is part of chief executive David Surveyor’s strategy of lifting the farmer co-op group’s market value and performance, one of the issues he identified when he joined Alliance earlier last year. Food service was growing faster than the traditional retailsupermarket sector supplied by Alliance, because the cost of eating out became lower and many consumers not having the time to prepare meals, Brown said. Margins on food service sales could be anything from 5-20% higher than for supermarket supply depending on the product, with a likely average in the 10-15% range. The London team is led by director of food service Graham Bougen, who has done consultancy work for Alliance in the past and who designed the business plan. The team also includes a chef, sales manager, and marketing manager focusing on social media. A lot of emphasis was being put on helping chefs with menu planning across lamb, beef and venison proteins. Alliance will be a wholesale

supplier and will control the supply chain, with added-value processing contracted out, Brown said. The group is also developing a New Zealand food service business, but the larger focus is on the UK project. Surveyor has also pushed health and safety as a priority for Alliance, and said the co-op was investing $3.4m in new processing technology, installing 49 new bandsaws into eight plants. The saws were designed to stop the blade within 15 milliseconds when the unit sensed a person or glove was near or in contact with the blade. “This significantly reduces the risk of any potential injury, limited to at worst a small cut,” Surveyor said. The technology has been put into the plants in Dannevirke, Levin, Nelson, Timaru, Pukeuri, Makarewa, Mataura, and the big Lorneville plant in Invercargill. Alliance also expects to invest another $2m-plus in a second phase of the programme, with the replacement of 20 larger bandsaws as soon as the technology becomes available. The use of standard bandsaws was one of the highest-risk activities in the industry, Surveyor said.

SPRINGBOARD: Alliance’s new food service programme is part of chief executive David Surveyor’s strategy to lift the farmer co-op’s market value and performance.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Transport in the eye of the storm Tim Fulton THE latest shutdown of South Island highways shows the weakness of a market-based approach to transport, North Canterbury farmer Lynda Murchison says. Alpine passes and major secondary roads were impassable during last week’s snowstorm, compounding frustration at road closures after the Kaikoura earthquake. Murchison, president of North Canterbury Federated Farmers, is a farmer and resource management planner at Weka Pass, near Amberley. Living beside the overloaded State Highway 7, she has seen the fallout from the Kaikoura earthquake wrecking chunks of SH1 and the main trunk railway. The New Zealand Transport Agency (NZTA) and roading contractors had done a “fantastic job” keeping alternative routes open since the quake, but there seemed to be little long-term thinking on alternative transport, Murchison said. “To me, this highlights the importance of good town planning.” The South Island has 4921km of state highway and 35,456km of local roads. It also has 1661km of rail lines, consisting of two main lines, two secondary lines and a few branch lines. An NZTA report in 2015, the South Island Freight Plan, forecast substantial projected freight growth in the South Island, with an extra 47.7 million tonnes of freight

being carried in 2042 compared with 2012. This equated to an additional 1.7m truck trips in 2042 compared with 2012, or an additional 4667 truck trips (based on 44-tonne trucks) a day across the network. NZTA’s freight plan said success for South Island transport would be characterised by “an unified group representing all key freight stakeholders that can talk with one voice about the agreed freight needs for the South Island”. Constraints included insufficient funding, no industry forum to put issues forward, and monitor developments. There were also “blockages in key decisions”, the plan said. Murchison said the Kaikoura quake was a reminder that in a deregulated economy, leaving it to “the market” didn’t work so well for transport. “Your main road and rail link goes [then] what are you left with?” There had been talk of coastal shipping or a new inland rail link to provide a back-up for the highway and feeder roads, but no concerted action, she said. “No one’s saying ‘hang on, let’s have a look’.” Ports of Auckland Ltd (POAL) spokesman Matt Ball said four major international shipping lines and a single NZ-owned operator were handling coastal shipping for the company. Ports relied on the international operators for regional shipping and they had plenty of capacity to send more goods by sea if required, as did POAL. The company expected road

Green turns white over NZ

ALL GOOD: Farmers across New Zealand had snow to contend with after last week’s storm but Peter Reveley, seen here checking on his dairy grazers, says it’s typical of the season.

Visit farmersweekly.co.nz for more on last week’s storm.

and rail would move more freight between islands once SH1 was repaired but coastal shipping was a competitive option too, Ball said. Hurunui district mayor Winton Dalley said roading on SH1 and inland routes had always been vulnerable to weather and accidents, but the pressure on the network was only likely to get worse. As a member of Canterbury economic development group, the Mayoral Forum, Dalley wants more “multi-modal” transport in the region, including coastal shipping. Coastal shipping volumes from Auckland to Christchurch nearly doubled immediately after the quakes but has fallen back to 2025% above pre-quake volume as

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South Island roads reopened. Dalley understood 92% of all freight goes by road, 6% by rail and 2% by sea. Freight loads were projected to double by 2030, without any change to the relative share of transport systems. The number of tourists on NZ roads was expected to double over the same period. Hurunui would have to pay for some of the wear and tear on its roads from a base of only about 6000 ratepayers. In some quakedamaged areas, like an 18km stretch including the precarious, slip-prone Whalesback section on the inland road – Inland Route 70 between Waiau and Kaikoura – NZTA was in the process of removing a 100% subsidy on road maintenance.

Dalley said while the inland road had always been a council road, it served an important national role as an alternative to SH1 and the Lewis Pass. The council was pressing NZTA to maintain its subsidised support for the road, he said. Non-perishable product could be comfortably stored and delivered “just in time” from warehouses if the South Island had enough warehouse capacity. That was a question for the whole supply chain and perhaps retail customers too, Ports of Auckland’s Matt Ball said. “Do you need to have your fridge the next day when you go into the shop, or can you wait a week?”

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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Council at fault over dam project collapse Richard Rennie richard.rennie@nzx.com A LACK of transparency and an inability to win the hearts and minds of the Hawke’s Bay public are just two of the mistakes a Hawke’s Bay regional councillor believes underline the teetering Ruataniwha dam project. The project was delivered a near-certain death blow earlier this month with the Supreme Court decision that the intended land swap of Department of Conservation land in the dam catchment with farmland outside it wasn’t legal. With the inability to flood more than the 22-hectares of DOC land, the capacity of the dam is severely limited, and its economic viability in serious doubt. But the Supreme Court decision was another nail in the coffin of a dam that resembles a zombie project, stumbling into one life-threatening obstacle then another. Peter Beaven, regional councillor for the Ngaruroro district, said there should be lessons from the project’s

engagement with locals and their involvement. He said there had been numerous cases when decisions relating to the dam and the Hawke’s Bay Regional Investment Company (HBRIC) were required to be heard by the council in closed meetings. “So we have not taken the people along with us on this and satisfied their concerns over the project, almost from the start.” Beaven has maintained a relatively open mind on the project over its lifetime. He said after the 2015 board of inquiry into the project he was comfortable seeing it continue, given the environmental conditions set to ensure the Tukituki River was not degraded further. “But that is a moot point now.” The Government has declared it would look to change the rules about allowing land swaps for DOC land in the wake of the Supreme Court decision. Beaven was doubtful that would be retrospective, and questioned if the council would be prepared to go down that path even if it were.

FLOW-ON EFFECT: Hawke’s Bay farmers may build their own dams, if they’re in proximity to the Tukituki River or its tributaries, as a consequence of the Ruataniwha dam project not going ahead.

We have not taken the people along with us on this and satisfied their concerns over the project. Peter Beaven Hawke’s Bay regional councillor “That would be at least two to three years away. We would have to review the construction contracts and find investment partners,” he said. “It would be virtually starting again – the entire thing would have to be renegotiated and it would not be in the current council’s term.” The council was scheduled to meet last week to discuss options, but an ultimate decision would require more information

from HBRIC, leaving a final announcement likely later this month or in early August. Beaven said the question about building a smaller dam without the conservation land being affected has been analysed. “What we see is a relatively minor drop in the construction cost, of about 10-20%, but a major drop in the dam’s capacity.” That drop would have the capacity sinking from about 100 million cubic metres to 30m cubic metres of storage. “The cost of the water supplied would simply soar.” A consequence of the dam not proceeding may be farmers deciding to build their own dams, if they are in distance of the Tukituki or its tributaries. “While the cost is higher per cubic metre of storage, there are lower costs around distribution and ongoing charges.” Beaven said the dam’s failure to proceed had interesting implications for dryland

management in the catchment into the future. Earlier committee work has shown taking a “status quo” approach to managing the catchment aquifer wasn’t possible because of water shortages in the region. The implications also spread into the region’s catchment plan, Plan Change 6, despite it being set-up independent of the dam assessment. “There will be difficulties now under the plan change for some of the mitigation that was required. “One of the purposes of the dam was to provide some additional flow into the river and provide a ‘flushing’ effect over summer to reduce algae buildup and guarantee a minimum summer flow in the river.” Beaven anticipated dryland farming would need to look further afield at examples of runoff mitigation and optimal farm management in coming years in the dam’s absence.

Muldoon’s ghost stalks Ruataniwha Richard Rennie richard.rennie@nzx.com ONE of New Zealand’s leading lawmakers hopes the Ruataniwha dam saga doesn’t summon the ghost of Sir Robert Muldoon down the country’s legislative corridors. Sir Geoffrey Palmer has expressed dismay at conservation minister Maggie Barry’s declaration the Government will consider legislation to ensure DOC land swaps can go ahead, after the Supreme Court ruled against the proposed Ruataniwha swap. “What the Government has not said is if this would be retrospective. If so, that would be constitutional outrage and an abuse of power.” He said the law allows people to have the right of judicial review on issues, and for the Government to change the law because it didn’t like the ruling deprived the litigants of the “fruits of their forensic victory”.

He said to appear in court as the Government to defend oneself, and then overrule an unfavourable decision with a law was simply not compatible with NZ’s democratic framework where government and judiciary are separate. “The Government’s policy has been to subsidise irrigation, to increase the value of agricultural exports quite quickly. “Given those facts, and the Government has been encouraging the development of Ruataniwha, you have to ask yourself, if they change the rules here, will it happen all over the place?” Sir Geoffrey said he found it surprising the minister moved within only a couple of hours of hearing about the ruling to openly state the Government would be seeking to change the law. “Given it was a large 78-page ruling, it does lead one to wonder if they even read the entire thing before saying that.”

One possibility mooted to keep the project alive has been to use the Public Works Act to acquire the land. Last September, the Hawke’s Bay Regional Investment Company (HBRIC) stated it was taking the first step through the act to acquire the land. This would ultimately have to be signed-off by the Crown to go ahead. “There would be a lot of obstacles to using the Public Works Act – the regional council would have to use it and I am not sure they are of a mind to want to,” Sir Geoffrey said. This was reiterated by Hawke’s Bay Regional Council councillor Peter Beaven who doubted the current council would have the appetite to take land by compulsory acquisition (see accompanying article). Sir Geoffrey recalled the conflict over the Clyde Dam project in the 1970s and early 80s, as part of Muldoon’s Think Big development projects.

The dam’s construction had already commenced when government applied for a water right, only to have it turned down in the High Court following land owner appeals. With support from the minor Social Credit party, Muldoon’s National Government pushed through the Clyde Dam Empowering Act 1982. “This gave Muldoon a water right he could not otherwise have got. “There was an enormous constitutional debate over that as it was all part of the Think Big projects and the National Development Act.” Sir Geoffrey said any changes to the law after the Ruataniwha ruling were as constitutionally challenged as the Resource Management Act amendments passed earlier this year. He described these as “the National Development Act in drag”. He said another lesson from Ruataniwha was how closely

OUTRAGE: Sir Geoffrey Palmer disagrees with DOC minister Maggie Barry’s suggestion the Government could change legislation to allow the Ruataniwha dam project to proceed.

linked HBRIC and the regional council were. “This creates a conflict of interest. The law should be amended as it is really wrong.”

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Water quality casts election shadow Neal Wallace neal.wallace@nzx.com AN ABSOLUTE certainty about this general election is that freshwater quality will be hotly debated. Claims were likely to herald the arrival of Armageddon or suggest things aren’t too bad. Data provided to the Farmers Weekly by regional councils from five key dairy areas showed the truth lay somewhere between, and the use of sweeping generalisation in debates concealed a much more varied picture of the state of New Zealand’s fresh waterways. Two reports this year from the Ministry for the Environment (MFE) and the Organisation for Economic Co-operation and Development (OECD) warned the country’s waterways were under increasing pressure, or reaching environmental limits. The MFE report found nitrogen levels were getting worse at 55% of monitored river sites and improving at 28%, while phosphorus levels were improving at 42% and worsening at 25%. It also found E. coli levels were 22 times higher in urban areas, and 9.5 times higher in pastoral rivers than for rivers in native forests. Taranaki was proud of progress it had made to improve water quality, attributed to riparian plans covering 14,500km of streams, of which 85% were fenced and most planted. Taranaki Regional Council environment quality director Gary Bedford said the council measured water quality based on its ecological health by using the scientifically-based macro invertebrate index that measured insects and wildlife living in it. “Can water flowing in a stream support abundant, rich, diverse ecological communities in our streams? “The short answer, and I can unequivocally say it with scientific evidence, is a resounding yes.” Bedford said the surveys were done since 1994 and showed improving ecological health in 87% of the 53 sites where changes could be determined. Improving sites outnumbered those in decline by 6.6 to one

PROGRESS: The Taranaki Regional Council says sites in the region showing water quality improvement outnumber those in decline by 6.6 to one. Photo: Massey University

The trends show that a number of areas have shown greater [water quality] improvement than we have had before. Graham Sevicke-Jones Environment Southland while statistically significant improvements were evident at 30 sites, the highest ever and double the number of eight years ago. Bedford said most improvement was in the intensively farmed middle to lower catchments of the Taranaki ring plain. The upper catchment hadn’t shown any change, which was expected because it bordered a national park and wasn’t affected by land use. “We are increasingly seeing improvements, reaching down to the coast, in more and more streams.” Recent reports by the OECD and MFE, which concluded rivers and

lakes were under pressure, were a national snapshot that didn’t reflect regional differentiation. “You lose a sense of what is happening at region, sub-region or catchment scale,” Bedford said. Water quality in Southland was a mixed bag, Environment Southland science and information director Graham Sevicke-Jones said. But data for 2012 to 2016 showed a general improvement. “The trends show that a number of areas have shown greater improvement than we have had before.” However, while the improvement could be because of a number of factors, including the way data was collected or a climatic aberration, Sevicke-Jones said the reduction in the number of dairy conversions and the Clean Stream Accord could have contributed. All waterways were generally suitable for wading, fishing and boating, but six of the 55 river monitoring sites didn’t meet national E. coli standards, and while nitrogen levels had increased at a quarter of monitored sites in the past 17

years there had been a decrease at three with the rest indeterminate. Trends for total phosphorous readings and clarity were improving. Improving water quality was much more complex than simply “pulling one lever”, Sevicke-Jones said. Nitrogen and phosphorous were two of more than 40 factors affecting aquatic biomass. “Everything is connected to everything else,” he said. The quality of the Waikato River, assessed from 106 records for 11 variables from 1993 to 2012, was found to be stable in 43% of cases. Of the balance, about half showed “important improvements” and half “important deteriorations”. From 1991 to 2015, 23% of water quality records for the river showed improvement for phosphorous, chlorophyll and algae. At 14% of sites there was some deterioration in turbidity and total nitrogen while temperatures and dissolved oxygen were stable. For the rivers on the Hauraki Plains, 25 years of records at 19 sites showed mixed results.

The Kauaeranga and Ohinemuri rivers “generally had good water quality” with the Kauaeranga considered excellent, apart from moderate concentrations of E. coli. The Piako and Waitoa rivers were of poorer quality, and the Waihou and Waitakaruru rivers had intermediate water quality with high levels of nitrogen, phosphorous and E. coli. Most sites easily met recently released national requirements, but 25% of records showed an improvement and 11% deterioration. Horizons monitored 36 sites throughout the ManawatuWanganui region and said data from 10 years to December 2015 showed improving trends for E. coli at 22% of sites, oxidised nitrogen at 55%, dissolved reactive phosphorous at 31%, and turbidity at 24%. “Trends from January 2006 to December 2015 show efforts being made throughout the region by many landowners, organisations, iwi and councils are making a marked improvement in water quality throughout the region,” an Horizons statement said.

New Massey centre launched MASSEY University has welcomed back one of its most successful agricultural science graduates, Professor Dorian Garrick, to head a new research centre for genetics and breeding. The AL Rae Centre for Genetics Breeding was launched by Massey vice-chancellor Professor Jan Thomas and a $250,000 sponsor, the Norman FB Barry Foundation, in Auckland. The centre was named after the pre-eminent genetics scientist and academic, the late Emeritus Professor Alexander Rae, head of sheep breeding at the university for nearly 30 years. Garrick, who has been teaching

in the United States for 15 years, was one of Rae’s last PhD students in the 1980s. He has been developing and implementing national animal evaluation programmes, performance recording data bases and breeding schemes around the world. Chairman of the Barry Foundation, John Smith, said Garrick’s return was a catalyst for the formation of the centre and the donation, which enabled the funding of four PhD scholarships, one post-doctoral fellow, two eminent visiting scientists, and some workshops. The foundation made regular

donations to medical research. “We are supporting this long-term discovery in science in genetics to help boost agricultural productivity and profitability.” Garrick’s return to New Zealand had been highly anticipated and was widely welcomed by academics, researchers, rural professionals and farmers with interests in sheep and cattle breeding.

Read about Prof Dorian Garrick’s priorities for revitalising animal and plant genetics and breeding in NZ in next week’s Farmers Weekly.

HIGHER POWER: Chief science adviser Sir Peter Gluckman, left, joined Prime Minister Bill English to welcome home Dorian Garrick, centre, alongside Massey University vice-chancellor Jan Thomas and sponsor’s chairman John Smith.

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News

10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Fungicide resistance crops up as new weapon Annette Scott annette.scott@nzx.com FUNGICIDE resistance will be the driver for change in the war on fungal pathogens in the cropping industry, Foundation for Arable Research cropping expert Nick Poole says. Since the 1970s the war on fungal pathogens had primarily been fought with cultivar resistance and agrichemical fungicides, but Poole said that was changing. The increasing prominence of agrichemical resistance in the newest fungicides had promised greater adoption of integrated disease management and the need to find new solutions for disease management, Pool told farmers at last month’s annual FAR conference. “It is new innovations with genetics that look set to provide the step forward both in terms of germplasm and the fungicides themselves,” he said. In breeding, more precise techniques could now edit genes using clustered regularly interspaced short palindromic repeats (CRISPR) technology.

The revolution in genetic techniques had also meant that rather than growing new cultivars to assess for favourable traits such as disease resistance, assessments could now be done in the seed itself allowing much faster selections. “That revolution is happening at the moment, and it’s not just about the role of genetics in breeding – another revolution is going on, genetic analysis of the pathogen.” “I have been waiting 30 years for this but I think it is about to deliver now in one shape or another. “Yes, it’s exciting but we have got to get around the legislation,” Poole said. Genetic technologies were not only enabling faster production of disease-resistant cultivars, they were providing a more detailed view of the fungal pathogen that infected crops. “Instruments have now been developed that allow us to sample infected crops and determine both the presence and frequency of these mutations,” Poole said. “These tools can be used in the field enabling the grower

to accurately diagnose which fungicides should be used in less than an hour.” Poole said this signalled a beginning as research now pushed forward with a genetic fungicide. “This might finally be the genetic revolution that agriculture has been promised for the past three decades.” AgResearch scientist Maureen O’Callaghan acknowledged that a wide range of pests and diseases affected arable cropping systems. But she told farmers that globally increasing environmental and consumer pressures were leading to reductions in availability of chemical pesticide options for growers as pesticides were deregistered around the world. The increasing cost of development and registration of new chemistries had discouraged investment in new pesticides and had driven rapid expansion in the market of biological products for pest control. O’Callaghan said a sixyear collaborative research programme was under way to develop biological products for management of some of New

GROWING ARMOURY: Genetic technologies are allowing faster production of disease-resistant cultivars, as well as providing a more detailed view of fungal pathogens that infect crops, Foundation for Arable Research’s Nick Poole says.

Zealand’s significant arable pests and diseases. Laboratory and small-scale field trials had shown that prototype biopesticides, based on novel insecticidal bacteria, could act as effective alternatives to pesticides in wheat, maize, ryegrass, forage brassica and seed crops. “In addition, we are investigating the use of selected beneficial endophytic fungi isolated from within maize and brassica plant tissues for protection of these crops.” O’Callaghan said for biopesticides to be used in future integrated pest and disease-

control strategies they needed to be cost effective and fit well with current practices. “Our research is focused on developing formulations and delivery systems (seed treatments, granules and sprays) that maintain viability of the beneficial microbes during storage and following application to crops and coils.” She said commercialisation of the prototype biopesticides currently under development would provide alternative environmentally benign options for future management of key arable pests and diseases.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

EU farmer subsidies under threat THERE are signs that the massive subsidisation of European agriculture could be cut back. New Zealand has long fought the policy, which tops up the incomes of millions of European farmers. For decades, NZ has argued the policy keeps European production higher than justified by market prices, and supply on global markets out of kilter with demand. Last year the European Union dished out €58 billion, or nearly 40% of its total budget, in payments to farmers under the Common Agricultural Policy (CAP). But subsidies on such a large scale could be a thing of the past as bureaucrats in Brussels struggle to bring the 28-country bloc’s finances under control. The European Commission (EC) is searching for ways to plug a €12b shortfall created by Britain’s exit in 2019. It recently published five scenarios for the EU budget after 2020, four of which included cuts to the CAP. In a further sign European subsidisation in its current form may not survive, the agricultural minister of dairying powerhouse the Netherlands, Martijn van Dam, said cuts were now “inevitable”. “I know not all of my colleagues as ministers for agriculture will probably say that, but I think they all know that it’s inevitable,” he said. The executive director of the NZ Dairy Companies Association, Kimberly Crewther, said there had been false dawns before when it came to further reform to the taxpayer support received by European farmers.

The farmers, of course, would argue they are doing God’s work [by] providing the European population with cheap food.

farmers when other professions didn’t get the same treatment and public finances were tight. “The farmers, of course, would argue they are doing God’s work, and the environment is kept in a pristine condition and they are providing the European population with cheap food. “And all of that is true, but I do not think they are going to be able to continue getting the sort of support that they have had in the past.” Taxpayers in the UK will pay their farmers the £3b they currently receive annually from the EU until 2022. Petersen said it was likely that amount would reduce after that time. “The politicians and the farmer leaders are looking really seriously at where they want that money directed.”

INEVITABLE: Agricultural trade envoy Mike Petersen says European farming groups are “masters at lobbying” but cuts to subsidies in the near term were still likely.

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News

12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Footrot result a boost for Merinos Annette Scott annette.scott@nzx.com A SCIENTIFIC breakthrough has put Kiwi farmers a step closer to breeding footrot-resistant flocks and increasing production of premium Merinos. Scientists from the NZ Merino Company broke new ground using DNA sampling to accurately predict how resilient a sheep’s progeny would be to footrot. The breakthrough was the result of four years research and studies using the world’s largest singlesite central progeny test. NZM chief executive John Brakenridge said estimates suggested footrot cost NZ’s fine wool sector up to $10 million a year in lost productivity and treatment. “This is a major breakthrough. “There is a very significant opportunity cost to our industry as footrot is the single biggest impediment to growing the size of the NZ Merino flock,” Brakenridge said. It would enable farmers to easily identify which sheep were more resistant to the debilitating disease through a simple DNA test with sheep breeders able to use the information to selectively breed for greater resistance to footrot. It also created opportunity to improve animal welfare and production gains on NZ farms. The news was welcomed by farmers who were excited by the prospect they were one step closer to a footrot-free future. North Canterbury farmer Mark Stevenson supported the project from the outset.

There is a very significant opportunity cost to our industry as footrot is the single biggest impediment to growing the size of the NZ merino flock. John Brakenridge NZ Merino “Many farmers have seen the damage that footrot can cause. It takes a toll on animals, staff and businesses. “The EBV will give us a tool to target footrot and make substantial gains in protecting our animals from the disease,” Stevenson said. The importance of finding a solution to footrot led to industrywide action through the NZ Sheep Industry Transformation Project (NZSTX) – a partnership between NZM and the Ministry for Primary Industries’ Primary Growth Partnership programme. MPI investment programmes director Justine Gilliland said in addition to improving animal welfare and reducing farming costs, the footrot research results had the added benefit of removing long-standing barriers to increasing fine-wool sheep production in NZ. “Currently Merino sheep can only be sustainably farmed in a few areas of NZ due to weather conditions and the threat of footrot limiting available farmland.

EAGLE EYE: NZ Merino production scientist Emma Wilding inspects Merino feet for footrot.

“This breakthrough will allow farmers to breed more resilient animals that can thrive in more regions throughout NZ, increasing NZ’s production of premium Merino,” Gilliland said. Just over four years ago NZSTX, in collaboration with Merino NZ, embarked on the ambitious Feet First project to develop an estimated breeding value (EBV) for footrot with the goal of finding a genetic solution to footrot. To gather the data required for the project, NZM production science manager Mark Ferguson,

in collaboration with Merino stud breeders and farmers, created the world’s largest single-site central progeny test (CPT) for Merino sheep. “Through the CPT we have been able to determine the genetic resistance of rams to footrot by testing the performance of their progeny in the same environment. “Using this data we have generated breeding values for footrot resistance and with each year of the CPT we are building a bigger, richer data set, which is improving the accuracy of the

Photo: Jess Trang

footrot breeding value,” Ferguson said. Farmers could now take a DNA sample from a sheep and have the genetic information compared against the database to determine how susceptible or resistant the sheep’s progeny would be to footrot. Brakenridge said the research was an example of industry working closely and successfully with government. Investment by the Merino industry was matched by MPI though the PGP programme.

NAILED IT: Final funding for a new $206 million building at Lincoln University’s campus has been confirmed.

Funding brings the Lincoln hub a step closer Neal Wallace neal.wallace@nzx.com CONFIRMATION last week of the final cache of funding for a new $206 million building at Lincoln University also signalled a significant change to the delivery of tertiary education. The new 27,000-square metre structure, to be built on the site of the demolished Hilgendorf Building but with a larger footprint, will house up to 700 staff from Lincoln’s faculty of

agriculture and life sciences, AgResearch scientists and administrators, and with space leased to DairyNZ. Acting vice chancellor Bruce McKenzie said the facility would allow staff and students from Lincoln and AgResearch to work alongside each other, Lincoln PhD students to be supervised by AgResearch staff and courses to be broadened. “You will see AgResearch staff alongside Lincoln staff. It means a closer relationship with students

and greater opportunity to work in a wider range of areas.” One area where there would be synergy was access to AgResearch weed scientists for Lincoln researchers and students, an area of expertise not currently available on campus. McKenzie said this closer working relationship could allow the curriculum to be broadened to include different aspects, such as agronomy. “The broader depth I believe will be an attraction not just

to our students, but it will be a significant attraction to international students.” AgResearch will invest $80 million and Lincoln the balance in the new $206 million building, due for completion in 2019 and ultimately to be part of the Lincoln science hub. McKenzie said that hub would eventually extend to the other side of Springs Rd when Plant and Food Research, Landcare and Dairy NZ shift on to the site. “The future direction of Lincoln

will certainly involve partnerships with AgResearch, Plant and Food Research, Landcare and DairyNZ. This building is the first instalment of that partnership.” There was also consideration of a primary industries commercial business park being developed in the vicinity of the hub. McKenzie said the research hub has attracted it first sizeable research project, the details of which would be announced in the coming weeks. Others were being worked on.

ADVERTORIAL

Final cattle grazing event in a winter crop of kale. The cattle were grazed in this critical source area for 3-4 hours when soil conditions were relatively dry underfoot, then removed from the paddock to reduce risk of further damage to the soil.

TEN TOP TIPS FOR WINTER GRAZING OF CROPS Winter grazing of crops is a key source of sediment, nutrient and pathogen loss into waterways from farms. Reducing losses from winter crops can go a long way to reducing total farm losses. With a few simple steps, you can make a real difference now!

Soil is our greatest asset, holding on to more of it makes good economic sense. Damage to soil from poor grazing management of winter crops will impact on the future productivity of that paddock. Too much soil and nutrients in waterways impacts on their ecology and can kill freshwater species.

What can you do? 1

Exclude stock from waterways. Create an ungrazed buffer zone of crop between the livestock and the waterway. 3-5 metres is a good starting point but this should increase with slope and instability of soil. Leave an ungrazed buffer zone around either side of Critical Source Areas (CSAs). These are parts of the paddock that can channel overland flow directly to waterways, like gullies, swales, very wet areas, spring heads, waterway crossings, stock camps and vehicle access routes. Graze paddocks strategically. On a sloping paddock, fence across the slope and start grazing at the top of the paddock, so the standing crop acts as a filter. Or, if there is a waterway present, start grazing at the opposite end of the paddock.

Make breaks “long and narrow” – research shows that the crop will be utilised more efficiently by cattle.

Back fence. Regularly backfence stock off grazed breaks to help minimise pugging damage and to reduce runoff risk.

Place troughs and supplementary feed in a dry central part of the paddock well away from any waterways or CSAs.

Look after your stock. Provide adequate feed, shelter and clean fresh drinking water. Doing this will also limit stock movement and help reduce damage to crop and soil.

Graze the buffer strips around CSAs when soil is not so wet and risk of loss has reduced. Graze quickly and lightly if you can.

rea e) e A ssibl c r u po

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Cr id g o

v (A

Plant a catch crop. Where soil conditions and farm management allow, consider planting a fast growing crop in spring such as greenfeed oats. It can make a dramatic difference to reducing nitrogen losses. Plan early. When choosing paddocks for next year’s winter feed crop, think about how you can improve your management of CSAs and waterways.

The Pastoral 21 research programme demonstrated that you can reduce losses of sediment and phosphorus (P) from winter crops by up to 80-90% through strategic grazing and careful management of Critical Source Areas (CSAs).

READ

B+LNZ Factsheets on good management practice for winter grazing. Email resources@beeflambnz.com or call 0800 233 352.

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AgResearch soil scientist Ross Monaghan discusses winter grazing on a B+LNZ podcast: beeflambnz.podbean.com

Minimum Size use is 30mm wide.

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For more info, contact your Regional Council’s land management advisor.

News

14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Urea gets drive-in dispenser

SELF-HELP: Contractors and farmers will be able to help themselves at new urea silos, Ballance supply chain analyst Craig Fitzpatrick says.

FARMERS have the option of urea-to-go with new drive-in silo technology launched in Canterbury by Ballance. Showcased at Mystery Creek as a scaled down 1:5 model, the company has developed the silos to let farmers to log in on the internet, place and order then take their own spreader or use a contractor to load up at the silo. “We developed the system in response to farmer feedback. “They told us that they wanted to be able to access fertiliser to apply at times when the depots were not always open. “In the South Island, particularly, with longer daylight hours over summer the opportunity is there to work well into the evening if the product is available,” Ballance

TAGGING CALVES?

supply chain analyst Craig Fitzpatrick said. The 60t, 15 metre high silos combined automated dispensing technology with silo design developed by Canterbury company IDC. The silos were initially intended to hold urea in installations at depot sites. Once an order was placed by a farmer or contractor it was released at the site by swiping a card, similar to an airline boarding pass. The load was then dispensed via a secondary silo fed from the larger storage silo. Both Ravensdown and Ballance had provided silos for onfarm storage in the past but that approach had caused issues with moisture retention. Fitzpatrick said this system fitted with farmers’ desire to keep farm infrastructure simpler while providing a flexible option for after-hours application of tactical nitrogen fertiliser like urea. Farmers could ensure a timely application while contractor could maximise their machinery investment over the short window seasonal demands often presented. The technology was not unlike that used at unstaffed petrol stations. Fitzpatrick said in the future it could be possible to have the silos separate from company depots and ultimately for farmers to place an order via smart phone app while at the site. The first installation was at Mt Somers, Canterbury, while another is under way at Whakamaru, south Waikato. He said expectations were that contractors would form the bulk of demand for the service. “But in the future we may find there are clusters of farmers who all have spreaders who would be keen to have a site near them. It proves a very flexible option.” From a supplier’s perspective the remote, automated silos reduced the pressure on staff over peak periods when they were already working longer hours to help meet seasonal order peaks.

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ALL New Zealand farmers are taking part in the Agricultural Production Census run by Statistics NZ this month. Livestock farmers, orchardists, wine growers, arable farmers and others running about 60,000 farms would receive information packs about the census. The census information would give farmers and other New Zealanders a complete view of agricultural trends, agricultural production statistics manager Stuart Pitts said. “The information from the Agricultural Production Census gives New Zealanders a very clear picture of farming and helps farmers make decisions about where to invest and how they compare with others in the business. “Long-term trends show the changing dynamics of farming in NZ from peak sheep in the early 1980s to the conversion of many farms to dairying outside the traditional heartland of Waikato, Taranaki and Southland. “Stats NZ can combine information from farmers with export data to show that the average dairy cow earned $2450 in exports for NZ in 2016. “This compares with $1550 for the average beef animal, $450 for deer and $200 for sheep.” In horticulture, the average hectare of kiwifruit earned $77,000 in exports for NZ in 2014. The average hectare of apples earned $64,000 and wine grapes earned $39,000. The census of all farmers was held every five years. In the years between each census, Stats NZ surveyed farmers from just some sectors. The census could be done online, which was the most popular way for farmers to complete their questionnaire last year, Pitts said.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Manuka honey standards a sticky business Richard Rennie richard.rennie@nzx.com THE honey industry is holding strong hope that Ministry for Primary Industries officials are keeping an open mind about how it will set and implement proposed standards for manuka honey. After three years of development, MPI last month released details on proposed manuka honey standards that would form the basis for a certified approval mark on all manuka honey sold. However, it has been met with strong complaints from the industry amid claims the tests are not accurate, fail to recognise ultra-high-grade honey as manuka, and also give false positive manuka results for blended products. Bryan Wilson, MPI’s director for regulation and assurance, addressed the industry at the inaugural Apiculture New Zealand conference in Rotorua last week. He said there was a lot at stake in the formulation of a nationally certified standard on manuka honey products and acknowledged the three key areas of industry concern expressed in submissions on the standards. They relate to the DNA test for manuka identification, the chemical markers used and concerns on the blending of manuka honey with other types to meet the manuka proof test. While unable to go into detail on the 120 submissions received, Wilson said the agency had had “very useful” discussions with Apiculture NZ. “But it has to be based on credible evidence, and we can provide more information when we have done further analysis.” He described MPI’s science programme for manuka standards as robust, sophisticated and accurate. This was as many in the industry have challenged the use of particular chemical markers that have been determined to also be present in non-manuka samples. Meantime, the UMF Honey Association has also been urging MPI to include the chemical marker leptosperin in its certification test. This marker is used by the association, but MPI decided not to use it on grounds scientists maintained it wasn’t stable, and was also found in other honey types. Farmers Weekly understands the ministry has made moves to alter the chemical markers used in its tests. Wilson said MPI remained open to changes to the testing regime to ensure the final standards were effective and accurate for the entire industry. “So we have built in an extra six-to-eight weeks from now to ensure all that happens. We want to take that time to get definitions right.” MPI’s receptiveness to hearing-out the industry on its concerns over the standards has been welcomed by Apiculture NZ chief executive Karin Kos. “We want them to get it right – it is in all our best interests to do so,” she said. “Having a standard that is recognised internationally as being robust and scientifically based is absolutely critical to an industry that is experiencing very positive growth.” There have also been calls for the industry to seek a levy charge on beekeepers to raise funds for research into common-good areas, including disease control and management. Kos said the beekeeping industry used to have a levy charge, but this was dropped some years ago. Having one would bring the sector into line with most other primary sector groups that relied on levy payments to fund research. UMF Honey Association spokesman John Rawcliffe said aspects of varroa disease and bee health all required funding, and he was encouraged by the support a levy concept was receiving. Wilson said MPI would be happy to work with the industry to develop a levy platform, and the creation of Apiculture NZ was a step in the right direction to achieving that.

Have your say on this issue: farmersweekly.co.nz

KEEPING IT SWEET: Establishing robust and scientifically-based standards that are recognised internationally is critical to the New Zealand manuka honey industry.

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16 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Emergency systems fix is a top priority Tim Fulton

NEXT TIME: Farmers want to build in resilience to cope in the event of another emergency, farm consultant Gary Walton says.

MOST of the Government’s onfarm funding for quake recovery advice is likely to be tipped into planning for the next big disaster, South Island farm consultant Gary Walton says. The Government had offered upper South Island farmers and community groups up to $5 million for quake recovery advice and grassroots projects. It had earmarked $4m of that to community

projects “that tackle a shared problem or develop a new opportunity in relation to land use”, Ministry for Primary Industries papers said. All community projects would require a minimum 20% non-government contribution and successful projects were likely to have a higher proportion of cash and “in-kind cofunding”. The remaining $1m for farm advisory services would be limited to $5000 a farm. MPI expected about 200 farms, lifestyle blocks, wineries or other rural businesses to access the advice fund. North Canterbury sheep and beef consultant Gary Walton was applying to become one of MPI’s accredited, trusted advisers in the extension programme. Walton expected, if approved, he would consult on design of woolsheds, yards, tracks, water supply and fences. Some clients would also consider equipping themselves with satellite phones and better back-up power systems. Most of his clients wanted to be more financially and physically secure when the next emergency hit, he said. “I’m realising it’s about resilience and building in capability in the future as opposed to direct costs … it’s not about shelling out some coin for business as usual.

This funding is available for projects that tackle a shared problem or develop a new opportunity in relation to land use. Justine Gilliland MPI

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“I know numerous dairy farmers who were in deep shit, not because they couldn’t milk but because they couldn’t get a tanker to take it away.” With roads impassable some ran out of diesel and had to rely on daily helicopter deliveries to keep them in service. “The bigger challenge is that farmers won’t take this up because they are used to adverse events kicking them in the guts all the time,” he said. MPI’s website said “Farmers, growers and foresters are now faced with the challenge of what to do with their land. The (fund) is designed to help with those decisions.” MPI investment programmes director Justine Gilliland said the money for community projects should support six to 10 projects of up to $600,000 a year for three years. “This funding is available for projects that tackle a shared problem or develop a new opportunity in relation to land use,” she said. The other funding for extension services was for individual landowners and managers to access advisory services “with long-term land use planning and technical advice”. The allocation of funding and distribution across both aspects of the Earthquake Recovery Fund was developed in consultation with Beef + Lamb NZ, DairyNZ, farm consultants and other experts, she said. “The rationale for determining these figures was also based on providing assistance to as many affected primary industry people as possible in the earthquake region. “MPI was able to do this by being agile, managing our current funding programmes and financial constraints, all within a short time frame, given the earthquake was, of course, unanticipated.” The Government also had $4m in the separate Primary Industry Earthquake Relief Fund.

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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Arable farmers must follow the market Annette Scott annette.scott@nzx.com

DECISIONS: FAR chief executive Nick Pyke says deciding what crops to rule out in the future will be easier than deciding on new crop contenders to meet rapidly changing food trends. Photo: Annette Scott

ARABLE farmers have no time to waste when it comes to identifying the future cropping opportunities. Foundation for Arable Research (FAR) chief executive Nick Pyke made it clear that now was the time to act. Pyke said the NZ cropping industry must capitalise on its unique advantages and identify opportunities to grow new crops that maximised returns to growers and in turn supported a sustainable industry. The NZ arable industry currently produced a range of grains and seeds, many of which were commodity crops. It was world leading in many areas with some of the highest crop and seed yields of a number of species in the world as well as being a world leader in both herbage and vegetable seed production. FAR had a part to play in the success of the industry by ensuring it was doing high quality research with outcomes that could be implemented to growers to keep them as world leaders. FAR’s five-year strategy 20172021 was set around making cropping the highest sustainable land use for NZ farmers. But Pyke said the cropping industry might be very different in the future and understanding NZ’s competitive advantage would be a crucial factor in adapting to the future challenges. “We have a temperate climate supported by high quality soils, plentiful water, skilled farmers and ongoing technological developments. “These factors place the cropping industry in an excellent position to produce new high-value foods for international markets and provide an economically and environmentally sustainable

New strategy for arable farmers Annette Scott annette.scott@nzx.com THE Foundation for Arable Research has aimed high with its new five-year strategy for cropping to be New Zealand’s most sustainable broadacre land use. FAR chief executive Nick Pyke said the 2017-2021 strategy built on the organisation’s strengths as a provider of quality research and extension and on the innate strengths of NZ’s cropping industry. The aim was to make cropping the highest returning and most sustainable broadacre land use. “NZ’s temperate climate, quality soils, plentiful water and highly skilled farmers provide us with some key advantages over other food-producing nations.” Accordingly, the strategy was designed to ensure FAR’s research

team worked alongside the cropping industry helping it to reach its full potential as NZ’s most economically and environmentally sustainable farming system. The strategy had four key pillars – leading research, strong collaborations, excellent communication and sustainable businesses. “These pillars feed into our research and extension portfolio which aligns projects into four areas – innovative products, sustainably produced feed and food for livestock industries, building better and more robust farms and improving farm viability.” The strategy acknowledged the challenges facing the arable industry. “Cropping farmers are dealing with a number of agronomic, climatic and compliance issues

at present and FAR’s research priorities are constantly being monitored to ensure that these were being taken into account,” he said. Research priorities included understanding and developing management strategies to minimise the risk of agrichemical resistance, measuring, monitoring and managing the efficiency of inputs in cropping systems. Developing new crops and products to improve farm profitability, providing effective tools to manage, store and report farm practice and providing new solutions to manage crops and increase yields were all research projects. Pyke said the strategy would help ensure cropping farmers had solutions they could integrate into their farm systems over the next 10 years.

farming option for NZ,” he said. Food trends were changing rapidly. “A few years ago the Impossible Burger, made from plant protein, seemed unlikely, now it’s a reality, as are other unique plant-based foods.” Some recent work FAR had been involved with had identified six possible areas that might have potential on NZ cropped land. These were nutritional beverages, ancient grains, high value oils, plant proteins, durable water-containing crops and some native species.

The rapid pace of change in food production and food trends indicates we need to act now. Nick Pyke FAR “To progress we need to select some promising options based on market needs and then ensure that the right business model is developed to capture the value along the value chain.” While it would be easy to rule out some crops, Pyke said deciding on possible contenders would be more difficult. So what are the foods of the future? Will NZ be an exporter of freshwater-containing products to a water short Australia? Will it be the best beverage hub in the world with a choice of animal milks, vegetable-based juices, cereal-based milks and a wide range of teas? “Will we capitalise on our ability to produce and process plant and animal proteins so that the NZ Possible Burger contains both animal and plant products?

“The rapid pace of change in food production and food trends indicates we need to act now. “We need the investment in production and processing research, transport, business models and marketing,” Pyke said. Generally NZ had adequate water for crop production but this was not the case in most countries of the world. It was estimated that by 2025, 60% of the world’s population would live in countries with water stress. “Further to this, water for irrigation needs to increase by 11% worldwide to meet the demand for food and climate change would further increase demand for, and reduce the supply of, water in many areas.” There were very few agricultural exporting countries where water extraction did not exceed supply. NZ was one of them. “The questions we need to ask are why do we extract value, the water, before we sell many of our products. “Are we ignoring a huge opportunity to supply products containing water to the world?” Pyke said the positive attributes of irrigation in cropped soil, backed by good quality science, were unlikely to be quoted in the mainstream media, but cropping was a responsible user of water and nutrients. Another strength for NZ was its people. “Our farmers are highly skilled and able to achieve high yields and high quality across a range of well over 40 different species of crops. “This means that the industry should have no problems producing potential new export crops which are suited to our climate, or producing existing crops to new specifications.” Now was a good time to act – next year may be too late, Pyke said.

LIC to raise NMR stake LIVESTOCK Improvement Corp is increasing its holding in National Milk Records to 17.2% from 2.6% after agreeing to subscribe for shares to allow the United Kingdom farm management recording service to fund its exit from a pension fund. LIC would buy four million shares in NMR at 65 pence apiece, totalling £2.6m. NMR, whose shares trade on the NEX Exchange Growth Market, faced a total cost of £14.8m to exit the Milk Pension Fund. Exiting its liabilities would allow NMR to attract new investment and focus on its core businesses, it said. It would also sell its genetic products subsidiary Inimex to Genus. LIC chief executive Wayne McNee said the increased

investment in National Milk “aligns with the coop’s strategy to focus on key international markets that will add value for shareholders”. The UK “is a key market for LIC and NMR is a key player in that market”. LIC originally invested in NMR in 2003. As part of the new investment the two companies agreed to “work together to deliver mutual benefits, including greater integration of LIC and LIC Automation into the UK dairy industry”, McNee said. LIC shares, which could be traded only by co-operative members, last changed hands at $2.45 and had dropped 2% in the past year while the S&P/ NZX 50 Index rose 11%. NMR last traded at 71.5 pence and had fallen 8.9% in the past year. – BusinessDesk

News

20 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Maori land law close to passing muster Tim Fulton THE main frame for Maori land law is being refurbished to create a new property management and dispute resolution agency. Te Ture Whenua Maori Bill will clarify Maori land law, add safeguards to ownership of Maori land and deal with “inequalities” in existing legislation, advocates say. The bill had its third reading at an extended Parliamentary sitting last week. It’s six years since policymakers started consulting on the 16-part bill and progress is set to be slow, right until Royal Assent. Updating progress in the debating chamber last week, a spokesman for Maori Development Minister Te Uroroa Flavell said: “We got up to part six yesterday (Wednesday). Very slow going, clause by clause and very dull.” But the slow-going still means something substantial for Maori landowners and the wider economy. Maori clout in agribusiness continues to grow, with Maori interests owning 40% of forestry land and 38% of export fishing quota, according to Ministry of Foreign Affairs and Trade figures. By the same measure combined sheep and cattle production adds up to 12%, and kiwifruit and dairy 10% apiece.

CLOUT: According to Ministry of Foreign Affairs and Trade figures, 40% of New Zealand’s forestry land is owned by Maori interests.

The expected new law will repeal legislation created nearly 25 years ago, which itself still contained parts of the Native Land Act 1909. Major changes in the offing include the creation of a Maori Land Service, described by the

Government’s policy agency Te Puni Kokiri (TPK) as a “single doorway to provide practical support to Maori landowners, trustees and whanau”. The service will maintain a register of ownership and governance information as well

China okays kiwi blood products CHINA has approved access for New Zealand bovine blood products. Bovine serum and protein products were used in the animal pharmaceutical industry for making vaccines, diagnostic kits, laboratory testing media and a range of specialised products. NZ exported some bovine blood products to China before 2015 but formal access has now been negotiated, providing more certainty. “Formal access for NZ bovine blood products opens up enormous opportunities for our producers,” Primary Industries Minister Nathan Guy said while visiting Proliant’s cattle blood plant in Feilding. “These products represent a valuable market and we expect our exports will be in significant demand in China. “NZ now has market access for both finished and semi-finished products, which will mean exporters can attract a pricepremium for these higher-value products. “This is likely to be worth at least $50 million per year. “We have an enviable disease status compared with many countries, which means our bovine blood products are widely sought after by a range of markets across the globe.” So far 16 premises had been registered by the Chinese to export bovine blood products. “This new access is a real bonus for the wider meat

as advising on the productive use of land. Maori Land Service will also provide a dispute resolution service, using the established cultural processes of tikanga Maori. The Maori Land Court, which started as the Native Land Court

industry, the regions and our wider economy. “It’s a great value-add story. “It’s a value creation story. It’s very exciting and I acknowledge the work that MPI has done with AQSIQ (the Chinese import regulator). We’ve been working on this for a number of years and now we have a formal protocol for 16 premises that can access China,” Guy said. Proliant general manager Paul Lewis said the access would provide new sales opportunities. “We’ve been pretty keen to get access into China and we expect a lot of our business to China. We have our sales director heading up there in the next short while – he’s already got

customers lined up. It’s very, very exciting.” He expected China to make up anywhere from 35% to 55% of Proliant’s business now access there had been gained. “We have capacity to expand. The building here is only 55% full so if we put a second line in because our business grows we’re already set to go.” NZ’s certification process was beneficial, Lewis said. “We can go right from any of our finished products back to the cow on the paddock so the traceability of our raw material is unmatched worldwide and MPI makes it easy for us to do that. It’s impressive when you can give a customer a Government seal.”

A TPK overview of Te Ture Whenua Maori - bit.ly/2t2OJBz TPK comments on Te Ture Whenua Maori myths - bit.ly/2tXPpg5

Taupo zone plan brings help for landowners Richard Rennie richard.rennie@nzx.com

TOP QUALITY: Proliant operations manager Luke Bibby shows Primary Industries Minister Nathan Guy some of the plant’s finished product. Photo: Aaron Davies

in 1865, will continue as a final arbiter of disputes and manager of title records. The court’s chief judge can consider correcting any errors made in registry records at the Maori Land Service, TPK said. The agency said Te Ture Whenua Maori was the most significant change to management of Maori title in the past 20 years. “It is the result of six years of consultation and a long conversation since 1998.” The bill is the result of input from more than 3000 landowners. TPK received more than 170 hui and 580 submissions on it. The reforms, including the land service, will come into effect 18 months after Te Ture Whenua Maori is law. Alongside Te Ture Whenua Maori, a new Whenua Maori fund has been created to help Maori landowners, trustees and whanau to improve the productivity of their land. The fund, established last year, guarantees just under $13 million over four years for projects in agriculture, apiculture, energy, forestry, horticulture and tourism. So far $4.4m has been invested in 40 projects.

MORE than a decade after Variation 5 kicked in with protection for Lake Taupo, landowners in the region have the chance to seek help to protect water and land features on their farms. The Taupo Zone Plan approved by Waikato Regional Council is intended to provide a nonregulatory approach for managing the district’s biodiversity and reducing biosecurity incursions in the catchment. Council Taupo manager Anne McLeod was at pains to assure landowners who had already faced the stress of complying with plan change Variation 5 that the zone plan did not bring further compliance requirements. Variation 5 was bought in to control the loss of nutrients into Lake Taupo and required significant changes to pastoral farming systems in the catchment. “The zone plan aims to bring together the non-statutory actions we take as a council to work with landowners in preserving or improving the environment within the catchment,” she said. After a lengthy period focused on enacting Variation 5, the council’s brief now was

to broaden its focus from soil conservation to the other areas. “For farmers in the region our catchment officers have enjoyed a good relationship dealing with soil conservation. “The zone plan will enable us to focus more in-farm, moving in from river margins helping landowners who may have unique aspects like alpine wetland systems that are found on farms in this area.” She said it might prove possible to tip some catchment money into such areas of value or use the zone plan to help source funds from other areas. The zone plan aimed to also keep the region more pest-free than its neighbours by ensuring biosecurity protocols were kept in place to keep out pests and diseases more commonly found in the neighbouring Bay of Plenty and Manawatu-Wanganui regions. That included growing numbers of wallabies near Rotorua. Myrtle rust was a risk to plants but it had not yet been found in the district. “We have a lot of kanuka around geothermal areas that would be at risk from this.” The plan aimed to work across all groups in the region including farmers, forestry, conservation, iwi and councils.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Law could make honey Kiwi-as Tim Fulton EUROPEAN policies protecting branding of homegrown products like Champagne could be a winner for manuka honey and other Kiwi products, trade and international law academic Christian Riffel says. The European Union was likely to include the right to geographical indications in any free-trade agreement with New Zealand, the Ministry of Foreign Affairs told a public meeting last month. The EU defined a geographical indication or GI as a distinctive sign used to identify a product as originating in the territory of a country, region or locality. Famous GIs include Champagne wine, Feta cheese and Parma ham. The tag was also applied to Scotch whisky, Cognac, Roquefort cheese, Sherry, Parmigiano Reggiano, Teruel and Tuscany olives. At a recent public briefing on the Government’s Trade Agenda 2030, Martin Harvey, NZ’s lead negotiator for the EU FTA talks said Europe had a “particular yearning” to extend geographical indications beyond wines and spirits. If the EU’s recent free-trade deals were a guide, several hundred products could be listed as geographical indications in a Kiwi FTA. Cheese and processed meats would probably be on the register, Harvey said. “The area of dairy is a particularly sensitive one.” Given the sensitivity of the trade negotiation Harvey said he could not comment on whether NZ would consider reciprocating with its own GIs. “You’re asking me to talk about negotiating strategy and I don’t want to talk about that in public.” University of Canterbury trade and economic law expert Riffel chaired the Trade Agenda 2030 briefing in Christchurch. He referred to an EU website that suggested manuka honey was just as geographically distinctive as Feta. The EU website said feta cheese “is not named after a place but is so closely connected to Greece as to be identified as an inherently Greek product”. Based on this definition, Riffel said, NZ farmers could use geographical indications as a tool to market agricultural products of Kiwi origin overseas. If NZ chose to adopt EU-type policy for GIs it might be possible to trademark use of the word manuka without the addition of a place name, he said. Riffel said te reo and Maori culture generally gave NZ products like manuka honey instant provenance and marketability. Riffel understood Trade and Enterprise was working with exporters, including manuka honey producers, to apply GIs as an exclusive, branded trademark. Trade and Enterprise was likely to be looking at all options to maximise the value of distinctive products. “One way to market our exports is labelling of origin or geographical indications. It’s just another tool at (NZTE’s) disposal. A spokeswoman for NZTE said it could not comment on its client’s commercial projects. One of the most active marketers of Maori and NZ provenance was the state-owned farmer Landcorp with the Pamu brand. It had partnerships with Duncan Venison and Australian retailer Prestige Carpets. Pamu was a Maori word meaning to farm. Landcorp spokesman Richard Ninness said Pamu was “a story of care, management of farms, environment, people and product.”

Have your say on this issue: farmersweekly.co.nz

Pamu brand manager Emma Adcock said food service and retail partners recognised Pamu as a distinctively NZ brand and the name represented an “authentic connection to both the corporate brand and customer-facing brand”. Landcorp was looking at opportunities to extend the use of Pamu into lamb, dairy and other products but would first consider factors such as volume, seasonality and potential to add value, she said.

EXPERT: Christian Riffel, senior lecturer in international economic law at University of Canterbury

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Newsmaker

22 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Young blood comes in from the cold Life is about to change forever for FMG Young Farmer of the Year Nigel Woodhead. Neal Wallace met the south Otago farmer who is still coming to grips with the enormity of what he’s achieved.

S the country shivered last week through its coldest period of winter so far, 28-year-old Nigel Woodhead conceded the timing wasn’t great. For the past nine months or so the newly-crowned FMG Young Farmer of the Year confessed to most days making sure his stock was shifted, healthy and fed before returning home to study and prepare for the annual contest. Now, as the mercury plummets, he has no such excuse. But the south Otago sheep and beef farmer added “you don’t farm in the south of the South Island without warm, waterproof gear”, and he was actually looking forward to braving the deluge of snow and rain to spend more time outdoors. The Otago-Southland representative was also looking forward to being an ambassador for New Zealand Young Farmers, event supporters and agriculture in general, sharing his love of farming. His victory at the grand final in Manawatu just over a week ago was the culmination of a goal first considered as a youngster watching the final on TV, but seriously pursued in 2013 and 2014 when he was a regional finalist in Canterbury. Woodhead always intended having a career in the farming sector. The son of farming parents south of Milton, he attended Otago Boys’ High School and then Lincoln University where

he studied agricultural science. But the urge was to gain more experience before returning home to the farm. “I wanted to cut my teeth off the farm.” He achieved that by working as a technical representative for Midlands Seed in Ashburton, where he focused on export vegetable seed production. “It was great. I loved it and would never have left if the farm wasn’t here.” He was also extensively involved in NZ Young Farmers as a former chairman of the Pendarves Club, along with participation at district and regional level. In 2015 Woodhead returned to the south Otago family farm but didn’t compete that year. In 2016 he contested the regional finals, and by his own admission, had a shocker. “My head wasn’t in the right space. I had poor modules.” But it created a steely resolve, and aware that he faced some torrid competition for the 2017 title from fellow regional competitors Steve Henderson and Allan Harvey, among others, ensured he was in a better state of mind. He started preparations last October, won the regional title in February and, apart from a break when he married Leanne in March, buried himself in study by reading and memorising facts and figures to support arguments. Former finalists shared their study material, he visited organisations such as the LIC deer genetics farm, and friends

SOUTHERN SUCCESS: FMG Young Farmer of the Year 2017 Nigel Woodhead with wife Leanne on their south Otago farm.

such as Beef + Lamb NZ extension manager Olivia Ross while Leanne constantly bombarded him with questions. Woodhead said he knew that because New Holland and Honda were contest sponsors there would be modules involving their machinery, so he practised driving them.

I love being a farmer. Nigel Woodhead FMG Young Farmer of the Year He backed himself on the practical challenges and focused on schooling-up on technical areas. Despite that, all seven finalists were sideswiped very early on the Thursday morning of the grand final when they came across a mock traffic accident involving nine “injured” people. “I was more outside my comfort

WINDING UP: The 2017 Young Farmer of the Year grand final featured, as always, a multitude of tasks for contestants to tackle.

zone than for any other part of the competition,” Woodhead recalled. He recovered from what proved to be the only significant weakness in his road to victory, which he attributed to his thorough preparation. “I felt I had put myself in a pretty good position to be there or thereabouts.” He was particularly pleased there were practical modules on butchery and truck driving, two areas of strength. Part of his research was assessing the challenges from the other six finalists, and he said the quality of the line-up scared him since all were capable of winning. One aspect of his preparation that gave him an edge was his ability to handle pressure. A former rodeo bull rider, Woodhead remembered attending a riding school where most of the session was about mental preparation to create resilience, skills he was able to call on. He said that inner strength also helped his confidence in speaking publicly, something he would have struggled with a year ago. “I backed myself, I knew I had done the work – I just had to stay

calm, find my trigger points and then let my mind do it.” Woodhead said the enormity of his achievement, and the fact his name was etched in the trophy alongside people he admired, was still sinking in. He was excited by the opportunity to advance NZ Young Farmers, the contest and its supporters and his own personal development, along with something especially close to him, promoting agriculture. “I love being a farmer.” He hopes to help urban and rural NZ reconnect, to emphasise the reality that urban needs rural and rural needs urban. But for now life returns to running his 400ha, 3200-stock unit farm that he leases from his parents, while graphic designer wife Leanne can stop inundating him with questions and continue her other job as territory manager for Young Farmers. Woodhead was the fourth Otago-Southland winner in 14 years, following three victors in successive years: Robert Kempthorne (2003), Simon Hopcroft (2004), and David Holdaway (2005).

DRIVING AMBITION: Young Farmer of the Year Nigel Woodhead practised driving a New Holland tractor before this year’s grand final.

New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Connecting the dots with IoT As the Internet of Things becomes part of the technology language for New Zealand agriculture, this country is proving to be punching wellabove its weight in the next level of connectivity. Richard Rennie reviews a recent report on NZ’s preparedness and where agriculture’s strengths and weaknesses lie within it.

92-PAGE study on New Zealand’s Internet of Things (IoT) status, commissioned by the NZ IoT Alliance, has found this country compares well with other G20 nations surveyed at the same time, chairman Graeme Muller says. “They threw NZ into the mix as well, and we proved to be fourth in the index against those G20 nations for the potential returns it can deliver.” The report, Accelerating a connected NZ: An analysis of the impact of the Internet of Things on the NZ economy, found that across nine common IoT application areas there was a potential net benefit to the economy over 10 years of $2.2 billion in presentvalue terms.

It’s here we hope the value of the new IoT Alliance comes, to start looking at where this stuff is working and the value it brings. Graeme Muller New Zealand IoT Alliance “That is due to our good connectivity infrastructure, our low level of regulatory control, an open business environment and an encouraging start-up environment for new tech firms,” Muller said. One of the nine applications was dairy farming. The survey authors compiled an inventory of technology and systems used overseas that could be applied to the sector in NZ. The dairying sector could stand to be a big winner as IoT develops, with estimates

of $448 million extra earned over 10 years, second only to the transport and logistics sector, estimated to earn an additional $588m. As environmental and sustainability demands put greater pressure on the sector’s ability to increase its physical footprint, the report’s authors maintain technology will be needed to make the operations more compliant. Additional benefits to horticulture are estimated to be about $70m. However, uptake remains relatively low. “The reason for the low uptake was a real difficulty in being able to show what the return on investment was,” Muller said. “At a farming level there was no hesitation in spending $100,000 on a new tractor, because the value it delivers can be easily understood. However, $10,000 on remote sensors, that’s a harder one.” Muller said as the IoT wave broke, tech firms were still fragmented and were talking the tech, rather than the benefit, to the business being sold the technology. “It’s here we hope the value of the new IoT Alliance comes, to start looking at where this stuff is working and the value it brings.” Muller said this stage of the IoT was no different to the early internet days that evolved to deliver services sitting over and above the basic infrastructure. “The sweet spot for IoT is when it moves from that point of source data collection to integration where, for example, the weather station is signalling the irrigation system, which in turn activates the pumps, all through a single system installed.” He believes there is a role for government to act as a catalyst, providing an environment for testing and trialling the technology to showcase its value. “Landcorp’s use of it would

COW.COM: A cow wears a sensing collar on a South Island dairy farm. The dairy sector stands to benefit greatly from the development of the Internet of Things in New Zealand, especially in areas of compliance.

be a great example. If the Government sees it as a wider economic development opportunity, it may put funds towards it. “The aim would be to push IoT from being supply driven with tech firms keen to push the technology itself, to demand driven, coming from farmers who can see the value beyond the technology.” One criticism in the past of IoT in agriculture was a lack of a common operating platform to enable devices to communicate with each other. But Muller said it was increasingly being accepted that multiple platforms were acceptable. “You may need a rigid platform for something like driverless cars. But a highcountry farmer may just need a low-bandwidth, widecoverage network at little cost. “We are starting to see more start-ups developing products capable of sitting across multiple platforms.” Competition for the widearea, low-power networks suitable for farms to enable

IoT sensors and devices is also starting to develop. Companies like Kotahi Net already offer the systems and the big telcos, Spark and Vodafone, are also launching their IoT network systems. Spark’s system is already undertaking farm trials with Farmlands, Niwa and Ballance in Waikato. But even with the networks in place onfarm, the ability to collect data from sensors does still not guarantee farmers will want it. Muller cited the example of a network company that installed level sensors in farmfeed silos, to find farmers were not overly preoccupied with having that information. “It turned out the real value of that information was to the feed company that supplied the feed – they could optimise their deliveries by having that data, arranging their delivery schedules based off it,” he said. “Generally the techtelco sector can see the opportunity, they are just missing the application.”

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LOW TECH: New Zealand IoT Alliance chairman Graeme Muller says the main reason for the low uptake in Internet of Things technology in this country is the difficulty in showing a return on investment.

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Opinion

24 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

EDITORIAL

Farmers, stop being polite

Stephen Bell

LETTERS

NZ farmers are sustainable I AM all for being optimistic about the future but I think we would be smart to colour our thinking with a little bit of reality too. In that respect I guess I’m saying I am not a futurist like Rosie Bosworth (Farmers Weekly, July 3), and I don’t think we need to panic too much about our future as meat producers. When the synthetic meat story broke some years back, it certainly gathered a huge amount of interest. There is a simple problem with the process though: the culture medium used to grow muscle cells contains something called foetal calf serum. I’m sure you can do the maths on that because it’s a bit like the old chicken and egg problem! Yes, people are working on non-animal or serum-free media for growing muscle

cells, but that’s going to take some time and it will come at a cost. That’s not to say it’s impossible, just an immense challenge. Who’s to say that the technology needed to produce a synthetic growth medium won’t come at a higher cost financially and-or environmentally than meat? I’m not saying it’s impossible, but just remember that it was predicted in 1962 that The Beatles would have no future in show business, and in 1997 that Apple (as in computers) was “already dead”! Professor Jon Hickford Lincoln University

Flawed model? I’M writing to take strong exception to a sentence in Annette Scott’s recent article, Future: threat or opportunity?

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must - about the effects on the wider environment, this is being worked on. Some in the industry may feel the financial returns could be better, but I still see a financially robust industry. I just can’t see where this flawed ethics claim comes from. If the implication is that using animals is an ethics issue, I don’t buy into that argument at all. If it’s about individuals mistreating animals, then the whole industry can’t be at fault. Those marketing synthetic biology may attempt to take advantage of these issues within our industry, but I believe we can get a marketing advantage from our pastoral system. It’s a matter of getting a cohesive narrative right within a future marketing plan. Laurie Copland Broadwood

Letterof theWeek

EDITOR Bryan Gibson bryan.gibson@nzx.com

Farmers Weekly, July 10) It read: “Pastoral agriculture was a flawed business model, environmentally, financially and ethically, and it was one that synthetic biology was more than capable of disrupting.” Let’s be clear: New Zealand pastoral agriculture is not flawed as a business model, environmentally, financially nor ethically, but I do agree that it will be disrupted by synthetic biology. This sentence wasn’t in speech marks so I’m unsure as to who made it, but it was surrounded by quotes from Rosie Bosworth. I would have liked an explanation of why it’s a “flawed model”. Describing something as “flawed” implies it’s buggered, with a new model needed. While pastoral agriculture has some issues - flaws if you

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T’S a time of change. At least that’s what people keep telling us. Farming’s critics, in particular, say we are not changing fast or radically enough. Fans of new technologies tell us it’s a significant and transformational time of change. Business leaders tell us the way we do business is changing. Some, including new Federated Farmers president Katie Milne, say it’s time to change the language we use when talking about the primary sector so we can win the hearts and minds of those non-farming people who buy the products. And they all tell us those on the farm will have to change. Farmers will have to change just about everything and, as usual, produce more from less while keeping everybody happy. Just keeping up with all the talk about change, never mind keeping up with change itself is a frightening job. The pace of change has been accelerating at an alarming pace since the pre-computer days of wind-up telephones, which weren’t that long ago. Another area where change might happen is in politics. There might be changes in personnel in the Beehive but that’s not all. There will no doubt be changes in how much influence various parties and people have depending on what deals are done. That will lead to changes in laws and how farmers have to comply. Farmers can influence those changes by changing the way they behave during election campaigns. They tend to like their image as quiet and reserved people or strong, silent types who might ask a polite question at an election meeting, but that doesn’t cut it anymore. Farmers regularly complain they are ignored by politicians between elections so now’s their chance. Once every three years politicians’ memories are restored and they realise there are voters outside of Wellington and Auckland. It’s now time for farmers to speak up loudly and clearly about what they want from politicians. Many of the major issues will affect them so they shouldn’t hold back. Others, taking extreme positions detrimental to farmers, won’t hold back.

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Prevention the best medicine Amanda Larsson

HEN considering the health of rural children, most would agree that wit’s best to err on the side of caution. Which is why Alan Emerson’s critique (Farmers Weekly, July 10) of Greenpeace’s report on livestock and human health, Sick of too many cows, reads as somewhat cavalier. I’m happy to have a conversation about the science. Examination and interrogation is central to the scientific process. But I must admit Emerson’s request to discuss the science came across as a bit disingenuous in an article peppered with insults, referring to Greenpeace’s work as “hysterical” and “lunatic”. Let’s have a go anyway. I was surprised by Emerson’s challenge to “give me the names and titles of the scientists”. He could start by looking at the list of 41 references to scientific works at the back of the report. Or have a listen to Professor Michael Baker’s recent Radio New Zealand interview on the rise in cases of Shiga-toxin producing E. coli following dairy intensification in NZ. The Otago University professor of public health states: “We have by far the highest documented rate in the world of this infection.” Shiga-toxin producing E. coli is a very serious pathogen that virtually didn’t exist in this country 20 years ago. In NZ, infections from bugs that are passed on from animals to humans are among the highest reported for any developed country. And scientists have found that people living in rural areas, in particular preschoolers, are often most at risk. Greenpeace is far from the only group raising concerns. The Canterbury District Health Board released a comprehensive review of the science in 2014, which I highly recommend reading. Among the many findings of this

The

Pulpit

review, “there is good evidence for an association between watersupply nitrate concentration and the incidence of some cancers”. Emerson raises a good point about the complex science on nitrates, as is thoroughly outlined in a report from a scientific symposium specifically about drinking-water nitrate and health. He is correct that vegetables contain high levels of nitrate. What he doesn’t say is that scientists have found that nitrosation inhibitors present in vegetables appear to have a protective effect, in contrast to drinking-water nitrate.

There is always uncertainty in the scientific process. The question is how we act in the face of uncertainty. Amanda Larsson Greenpeace Yes, the research on nitrates is still limited and conflicting, which is why we say exactly that on page 15 of the Greenpeace report. So I was disappointed by

IN RESPONSE: Greenpeace campaigner Amanda Larsson believes Farmers Weekly columnist Alan Emerson should turn his attention to some of Federated Farmers’ scientific claims.

Emerson’s accusations of “bluff and obfuscation”. There is always uncertainty in the scientific process. The question is how we act in the face of uncertainty. When it comes to the health of our families, many of us naturally choose a precautionary approach. Nitrate poisoning in infants is still a problem in the United States and is most often ascribed to the use of contaminated well water for baby formula. The Canterbury District Health Board has decided to take a riskbased approach to drinking-water nitrate for this reason. Family doctors and midwives are now required to arrange water testing as part of pregnancy booking tests for women on private drinkingwater supplies. Wouldn’t we all want to protect kids from risks to their health?

2096FW

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Especially when we know that there are new ways to farm. There are now methods that not only reduce pollution, but can actually regenerate soils, improve water quality and bring back native wildlife. Methods that make the land more resilient to drought, flooding and pests. Methods that reduce costly inputs and produce higher-value products. Greenpeace has spent the past two months producing a film about regenerative NZ farmers doing just that. Even economic advisers are now saying we need to shift from a volume-based to a value-based farming model, one in which this country’s economy is less reliant on a single, low-value, volatile commodity. I welcome healthy debates and challenges to conventional wisdom. So I encourage Emerson

to turn his sceptical eye to some of Federated Farmers’ own rhetoric, which he draws on in his article. Now is the time to start questioning the doctrine of the past 20 years – that draining and polluting our precious rivers and aquifers to add more cows to the land and export volumes of milk powder overseas is the only way to do business. • Amanda Larsson is a Greenpeace NZ campaigner and ecological economist.

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

26 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

The game is up Alternative View

Alan Emerson

I’VE thoroughly enjoyed the British and Irish Lions tour. The rugby has been excellent, the atmosphere at the games superb, and the Lions fans a lot of fun and a credit to their countries. I went to two of the tests plus the Hurricanes game and they were great. I was all booked to go to the final test in Auckland but illness got in the way – bugger. We were having a beer on the concourse before the first test and started talking to a Lions supporter. He was a retired Marine and really interesting. “It’s great to see you here,” I said. “It’s a hell of a lot better being here,” he responded. He’d played rugby for forty years – from aged 18 to 58 – and felt it was time to “see some rugby Down Under”. Another Lions supporter walked past in shorts and a t-shirt.

“Don’t you realise its winter here,” my mate asked. “Yes, but the bloody airline mislaid my bags and I didn’t have time to shop and get to the game,” he replied, or words to that effect. Shorts or not he wasn’t missing the occasion. The game was superb from both sides. My memory of that event was Brodie Retallick and Sam Whitelock hitting it up for 80 minutes. Their fitness levels must be out of this world. I thought all the All Blacks played well and young Rico Ioane is an exciting prospect. I first saw the Lions in 1959, enjoying every game then and since. The first test in Auckland this time round was amazing – great rugby and a lot of fun. Likewise the Hurricanes game in Wellington. Having been spoilt by the availability and quality of food and drink at Eden Park I was hugely disappointed with the offering at the Cake Tin. The queues were massive and the offering looked less than appetising. The game, however, was great. I’d given the Hurricanes up at half-time but the comeback was magnificent. They almost got there.

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The French referee had me confused but as with all things French I gave up trying to understand them after being awarded 9% in School Cert French. Again, the Lions supporters were an absolute pleasure to associate with and showed great humour during the game. Sadly, the referee didn’t follow any suggestions offered by the sideline supporters of either side. It would have been extremely entertaining if he had. The Wellington test just four days later was held in appalling conditions, extremely wet and cold, though that didn’t have any effect on the Lions fans’ enthusiasm. Talking to Lions supporters before the game was, as usual, fasinating. An Irish couple, irritated by some of their colleagues draped in the Union Jack, suggested someone should tell them it’s the British and Irish Lions, not just the British Lions. They’d moved to Cyprus after the Brexit vote because they were convinced they’d witnessed the end of the United Kingdom as they knew it. Their arguments were sound but Cyprus is a little close to the

IN THE BIN: French referee Romain Poite presents Jerome Kaino with a yellow card during the third Lions test in Auckland.

Middle East for my liking. Chatting to another group they were effusive about New Zealand, our people, scenery and hospitality. As a patriotic Kiwi it was good to hear. Sometimes I think we don’t realise what we’ve got. The final test was a huge personal disappointment since I wasn’t able to get to the game. However, I dutifully sang the National Anthem in both Maori and English in front of the TV, giving it my best while never in danger of putting anyone else out of tune. The game lived up to all expectations and watching the Lions and All Blacks fans was a lot of fun. It is great to see such passion at a rugby match and I look forward to seeing the Lions and their supporters back in 12 years. I know one shouldn’t blame refs for anything but my humble view is that the French refs were totally out of their depth in the three games they controlled. What the old boys of the IRB

need to understand is that many punters spend huge dollars to get to these games. They deserve to see the best available adjudicators controlling proceedings. Pulling names out of hats won’t do any more. We were totally let down in this instance. The final two minutes at Eden Park were a classic French farce – referee Romain Poite didn’t have the remotest idea. The complexity of the rules is not to blame – the advantage law is extremely simple. But wait, there’s hope. New French President Emmanuel Macron tells us he is going to change France as we know it. It is going to be more inclusive, they will work together and all march ahead for good, honest results. I wish him well and only hope he can take his rugby referees with him.

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

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Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Region left on road to nowhere From the Ridge

Steve Wyn-Harris

HAWKE’S Bay has just had two separate body blows and they will have serious repercussions long into the future. The first was the Supreme Court’s decision on the land swap to allow the proposed Ruataniwha Dam to proceed. In a split decision three to two it ruled the Conservation Department couldn’t swap the 22ha of conservation land for 170ha of land from Smedley Station to allow the water storage dam to be built. That caused delight from Forest and Bird people who took the case and others against the dam. I suspect the five regional councillors who have consistently been opposed to their own council’s initiative were also pleased because it has taken the onus from them on deciding the dam’s fate. Of course, those who fought to

see the country’s largest irrigation project come to fruition are deeply disappointed. I believe that in a droughtprone region where the main attribute is the land and food production that, sadly, we are now consigned to become an economic backwater. With unemployment figures among some of the highest in the country, over 8%, and even higher for youth, prospects are not rosy. Our young folk will continue to leave and head to Auckland for work as have two of our three sons already. There is still talk that this will delay the dam but not stop it, however, a regional council committee met last week and agreed by five to four it would not support its own investment arm, Hawke’s Bay Regional Investment Company, obtaining the 22ha under the Public Works Act. Furthermore, it said an up to two years wait for a legislation change allowing a land swap was unacceptable. Cr Peter Beaven said “I feel like we’ve got a dying beast in front of us that we’ve got to euthanise.” Even the most optimistic dam supporter must feel crestfallen reading that sort of talk.

A lot of the commentary from those opposed to the dam has been about the higher conservation value of the 22ha compared to the 170ha proposed for the swap. That is arrant nonsense and I doubt many of them have viewed the two areas. The 22ha has been heavily logged in the past and is full of willow and barberry. The 170ha offers the DOC estate three times the area of black beech and includes two large wetland sites described by a dam opponent as “a pugged paddock”. This assessment was done by four senior DOC ecologists. So, if this wasn’t a nail into the heart of our region, we now learn the Manawatu Gorge has become so unstable it might never reopen. That is very bad news. Just last Thursday, during the big southerly storm, the whole of the east coast of the North Island was completely isolated from the rest of the country. The Rimutaka and Napier to Taupo highways were closed with snow and not only was the Manawatu Gorge closed but so too were the alternative routes of the Saddle Road and the Pahiatua Track with slips. If you thought you’d escape via northern Hawke’s Bay then

NO GO: Central Hawke’s Bay will become an economic backwater now plans to dam the Tukituki River appear dashed.

bad luck. The meandering road from Wairoa to Murapara via Waikaremoana was closed as was the Gisborne to Opotiki Road with a large slip. Even coastal shipping was on hold with the large swells. Our infrastructure is not looking too flash at the moment. On average 7000 vehicles use the Manawatu Gorge each day. Many of them are big trucks and the extra costs of getting large loads over the Saddle Road are substantial. As in the past when the Saddle has been used as an alternative route, it is coming under pressure

and deteriorating faster than it can be repaired. If they can build a flash tunnel under Auckland so folk can get home in time for dinner, perhaps a tunnel through the Tararua Ranges might be in order. That’s if we can back initiatives that will improve economic prosperity to fund it and that there are no rare species of barberry in the way.

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

Dairy beefs up its cross potential Meaty Matters

Allan Barber

FOR well over 20 years one of the largest challenges in the meat industry has been dairy farmers’ lack of recognition of the opportunity to make more money from their calves by selling them to calf rearers for beef production. There have always been calf rearers willing to stick their neck out and buy calves, but this was highly dependent on both beef and milk prices. But for dairy farmers it was easier to select their replacement heifers and put the rest on the bobby calf truck, rather than find rearers to take the bull calves or keep them onfarm for up to three months. The importance of dairy beef has been inevitable ever since the dairy industry started to increase in size at the expense of the sheep and beef industry, which was forced to retreat further up the hillside to land unsuitable for other farming types. About 70% of cattle born in New Zealand are born on the dairy farm and dairy cows now outnumber beef cows by about five to one, which makes it essential to encourage the dairy industry to assume a significant

role in breeding replacement beef cattle. Dairy and beef enjoy a neat symmetry, illustrated by the fact the meat industry has the capacity to process dairy cows when they have reached the end of their productive life, so it makes logical sense for the dairy industry to repay the compliment. United States and now global demand for lean beef for hamburgers has resulted in a highly profitable market for manufacturing cows and bulls – increasingly, the required volume of prime steer and heifer has to be supplemented by dairy-cross cattle. What hasn’t been recognised until now is the value to the dairy industry of planned beef breeding from the bottom quartile of the dairy herd. Admittedly the beef industry hasn’t done a good job of selling the idea that there’s a good profit to be made from surplus calves from cows inseminated by a beef bull, normally a Hereford that would sire white-faced calves from the tail-end of the herd. Nor was there much enthusiasm from dairy farmers for whom there wasn’t any major incentive to step outside their comfort zone. It was left to the calf rearers to decide there was enough margin and persuade dairy farmers to keep larger bull calves for sale or until they were up to weight. But now LIC is determined to promote a planned artificial insemination programme as an essential part of all their dairy members’ breeding policy. The change in attitude and

LEAN BEEF: About 70% of cattle born in New Zealand are produced on dairy farms and dairy cows outnumber beef cows by about five to one.

practice has begun to come about as a result of the Dairy Beef Integration Programme, a research project conducted over five years by AgResearch and funded by Beef+Lamb NZ’s MidNorthern North Island Farmer Council, with assistance from LIC and Ezicalve-proven Hereford sires. The final report was published in October and there has been an encouraging 60%-plus annual increase in the number of dairy farmers ordering beef straws from LIC to artificially inseminate their poorer-quality cows from the start. CRV Ambreed also reports higher offtake, having sold as many beef straws by the end of June as they had sold 10 weeks later in 2016. As with all changes of practice, success doesn’t happen overnight and there is still a fairly small proportion of dairy farmers

willing to do much more than put out an old bull to mop up the tailend of the cows. The integration programme demonstrates the real financial benefit of conducting a planned insemination strategy from the beginning using proven beef sires with a guaranteed short gestation period. Using these bulls means several days longer milking, consequently more milk in the vat, with added value also from the sale of the calf for rearing. In contrast to a fourday-old bobby calf worth $30, a good dairy-beef cross calf can with certainty command at least $150, and up to as much as $275, which adds several thousand dollars to a dairy farmer’s bottom line. Armed with the integration programme report, LIC’s general manager NZ markets, Malcolm Ellis, persuaded his board in September how critical it was to increase dairy herd productivity

by some means other than higher numbers, because the industry appears to have reached peak dairy cow population from an environmental perspective. He was able to demonstrate the vast benefit of separating the bottom end of the herd at the start of the breeding season for artificial insemination by proven beef sires – there’s a gap of 160kg of milksolids production between the top and bottom quartile. It may be necessary to extend the breeding period by 10 days to achieve the desired number of replacements, but it ensures lower-quality cows aren’t kept in the herd beyond their peak productivity and consequently applies selection pressure to lift the rate of genetic gain. Therefore, the Dairy Beef Integration Programme, designed to solve a problem for the beef industry, initially seemed to offer less benefit to the dairy industry although the rise in the beef schedule has made the value proposition more significant. What appears to have been less anticipated is the massive potential advantage to the dairy industry of making it possible to increase productivity without increasing herd size. Common sense dictates close co-operation between the two sectors is now of equal value to both.

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

World

28 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Bega ‘open-minded’ on potential purchase AUSTRALIAN dairy company Bega Cheese has refused to rule out speculation it’s looking to buy dairy giant Murray Goulburn, or part of it. This comes as the owner of Warrnambool Cheese & Butter, Saputo chief executive Lino Saputo Jr, would not be drawn on buying any Murray Goulburn assets. But he said if dairy assets became available, especially in Australia, the business would take a look at them. Bega Cheese executive chairman Barry Irvin said he had an open mind for “those sorts” of discussions when asked if Bega would consider pursuing Murray Goulburn. “I’ve been saying for a long time I think consolidation would help the Australian dairy industry and I think a really strong Australianowned dairy company would be a great thing,” Irvin said. “So, of course, if that’s something that is being speculated or talked about I would always have an open mind for

LOOKING: Saputo chief executive Lino Saputo Jr won’t comment on buying any Murray Goulburn assets.

those sorts of discussions.” Bega Cheese hopes to raise $160 million as part of its current capital raising. It has raised $122.5m from institutional shareholders, and small shareholders have until the end of July to lodge their interest in extra shares in a bid by the company to raise another $37.5m. This move has dairy farmers speculating about Bega’s future

plans, although Bega said it would pay down debt after it bought United States grocery business Mondelez International’s Australasian business in January. A Murray Goulburn (MG) spokesman said the company didn’t comment on market rumours or speculation, and pointed to its business’ review last month that included its profitsharing mechanism and capital structure. MG is a co-operative and has listed units. The company has said it will close three processing facilities during the next year to improve “operating efficiency”. In February it posted a $31.9m loss for the first half of the financial year. Saputo said he was “not prepared to throw in the towel for MG” or speculate on its future. “I think, like a lot of entities around the world, there are some difficult periods and then somewhere along the line, if decisions are taken appropriately, the sun will rise,” he said. www.weeklytimesnow.com

FARMING TOOL: The European Commission is preparing to release proposals for a 10-year extension to the licence for glyphosate in the European Union.

Rat tumours ‘not proof’ glyphosate is harmful EUROPEAN scientists advising the European Commission (EC) about the safety of weedkiller glyphosate have rejected claims they deliberately overlooked research that linked the product to cancerous tumours in rodents. The suggestions were made in a letter sent in late May to EC president Jean Claude Juncker by campaigning scientist Dr Christopher Portier, who also works as a consultant for the International Agency for Research on Cancer. In his letter, Portier pointed out that since raw data reviewed by the European Food Safety Authority (Efsa) and the European Chemicals Agency (ECHA) had been made public, he had found eight instances where rodents showed increased tumours following exposure to glyphosate. “These were not included in the assessment [of carcinogenicity] by either Efsa or ECHA,” Portier wrote.

“This suggests that the evaluations applied to the glyphosate data are scientifically flawed and any decisions derived from these evaluations will fail to protect public health.” A lack of transparency had also eroded public trust in public health decisions, he said. But Efsa and ECHA have defended their opinions that glyphosate doesn’t pose any risk of humans developing cancer, and insist their methodology is robust. In a reply to Portier, the two bodies stated that their original assessments “considered all relevant findings” and that “the full study reports were available to those responsible for the assessment”. Specifically, they say the evidence around tumours in rodents doesn’t imply that glyphosate is carcinogenic because they showed no dose response, no consistency across multiple animal studies and

the incidences of tumours were “within the historical control range”. “Overall, Efsa and ECHA are of the opinion that all the findings on the chronic rodent carcinogenicity studies referred to in your letter have been adequately considered and we see no need for our evaluations to be revisited,” they said. The clarification comes as the EC prepares to release proposals for a 10-year extension to the licence for glyphosate, with a first discussion by member states in the standing committee for plants, animals, food and feed due to begin on July 19. This is likely to trigger another political debate about the safety of the product and the need to retain it as a tool for modern farming. A final decision is likely to be made in Brussels towards the end of the year, when the current licence runs out. UK Farmers Weekly

UPTURN: United Kingdom farmgate milk prices are predicted to rise on the back of recovering dairy markets.

UK farmers set to cream milk prices AHDB Dairy has predicted British dairy farmers will enjoy strong milk prices over the northern hemisphere summer amid warnings by Arla of a butter and cream shortage this Christmas. AHDB Dairy analyst Chris Gooderham said a number of farmgate milk prices were still in the 25-28p/litre range, which looked poor compared with buoyant commodity market returns. Arla has announced a 1.44p/ litre price increase from July, while Müller is increasing its milk price by 1.5p/litre for August. This will bring their prices to within the 27-28p/litre range. “The increases are significant, with AMPE [Actual Milk Price Equivalent] up nearly 9p/litre since April, and MCVE [Milk for Cheese Value Equivalent] rising more than 5p/litre over the same period,” Gooderham said. “Only a handful of other milk buyers have announced increases so far, with the majority still not moving. “This will change over the coming weeks though, as a number of milk buyers set prices based on a basket of other milk buyers, and many of these will include Arla and-or Müller.” By June, the fat element accounted for two-thirds of the total return for AMPE, and fat “continues to be the dominant factor behind overall market rises”, Gooderham added. However, latest milk compositional data shows butterfat levels in the United Kingdom continue to run down year-on-year. With markets now showing signs of recovery, the prices that were most heavily influenced by markets on the downturn should show the most rapid

increase on the upturn. As ever, Gooderham said the challenge for the industry would be how to balance reaction to market prices with delivering some price stability. Meanwhile, Peder Tuborgh, chief executive of farmerowned European milk co-operative Arla, whose brands include Anchor and Cravendale, warned that the UK could be facing a butter and cheese shortage this Christmas. However, the National Farmers’ Union (NFU) dismissed Tuborgh’s comments as “scaremongering”.

Only a handful of other milk buyers have announced increases so far, with the majority still not moving.

The union said confidence is at “an all-time low” among dairy farmers, and many were wary about increasing production for fear of triggering another price crash. “The constant boom and bust dairy market cycle helps no one, most of all farmers who at the bottom of the supply chain are facing the biggest volatility risk,” NFU chief dairy adviser Sian Davies said. “Farmers need to be demand-led, they need better market signals. Only a few months ago farmers were being told there was too much milk – it’s gone full circle. “This isn’t sustainable from a farmer point of view, and we need to find a better mechanism to work together with the processors.” UK Farmers Weekly

World

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

Australian free-trade deals heat up

OI, OI, OI: A European Parliament MP says that holding Aussie-style barbecues in European cities could be a way to allay farmer fears about Australian beef imports.

Turnbull stressed the commitment that a deal would be done by year’s end as “a great development”. However, Labor’s energy spokesman Mark Butler warned against putting an “unrealistic expectation on how quickly a complex trade deal” could be reached.

Meantime, a barbecue could be Australia’s secret weapon in winning over sceptical European MPs for a free-trade deal. European Council president Donald Tusk used the G20 leaders summit to tell Prime Minister Malcolm Turnbull the EU was keen to settle a trade pact with Australia as soon as possible. But

the road ahead won’t be easy. There has been a fierce backlash against free-trade agreements from some quarters in the EU. A deal with Canada was almost derailed at the last moment when a Belgium regional parliament initially refused to sign-off. A dozen or so Belgium municipalities, including the Flemish historic city of Ghent, have declared themselves freezones against a potential United States-EU free-trade deal. Negotiations on that agreement stalled last year. Tom Vandenkendelaere, a Belgian MP in the European Parliament, believed there were lessons for Australia in the Canadian and US trade deal sagas. He suggested the Australian ambassador to the EU should undertake a roadshow across Belgium cities sceptical of freetrade benefits to reassure local farmers their livelihoods wouldn’t be threatened if Canberra and Brussels reached a deal. “Don’t wait too long, and don’t spare efforts until the end when it might be too late,” Vandenkendelaere said. Holding Aussie barbecues in Ghent and other cities would be a good way to argue for beef imports, he said.

NZ lamb becomes Brexit football Pineapple Colin Ley IF BRITAIN ends up with a bad Brexit deal on lamb the country can always tell the European Union to keep and consume all the lamb it gets from New Zealand and Australia, rather than moving 100,000 tonnes of its tariff-free imports to the United Kingdom, as happens now. That potential solution to a bad Brexit deal was voiced by George Lyon, a former member of the European Parliament and an independent member of the Agriculture and Horticulture Development Board. Addressing a Brexit-based debate at the Royal Highland Show, near Edinburgh, he named lamb as a big concern, saying the UK exported 100,000 tonnes to continental Europe, a trade Britain didn’t want to lose. “At the same time, we accept 100,000 tonnes of imported lamb under the EU’s tariff-free quota for Australia and NZ,” he said. “So, if we get a bad deal on lamb we can just say to Europe, ‘You keep the NZ and Australian quota and we’ll just keep our own lambs on a quid-pro-quo basis’.” Lyon said Britain stood to benefit from the Republic of Ireland’s heavy dependence on farm exports into the UK, which included about 200,000 tonnes of dairy products and more than

We can just say to Europe, ‘You keep the NZ and Australian quota and we’ll just keep our own lambs’. George Lyon Politician

175,000 tonnes of beef. “If producers in Ireland don’t get access to that trade after Brexit they will have a huge problem. “They won’t have much of a future in such circumstances. “Agricultural trade is going to be absolutely essential in helping to establish a frictionless border in Ireland, which is why I believe the Irish question will actually help us get a good trade deal for agri goods and products with the EU.”

The one exception was lamb, hence his suggestion the EU could keep all its tariff-free intake from NZ and Australia and leave British lamb producers to focus on feeding their own consumers. Perthshire beef and sheep farmer Jim Fairlie, who also addressed the debate, was generally positive about Britain’s post-Brexit future though he voiced concerns about how transition to the new regime might work. “We were asked to comment, for the debate, whether or not we believe UK agriculture will thrive outside the EU and I believe it will,” he said. “The caveat is what will happen to Scottish agriculture and the biggest threat we face is exactly what the Australian Prime Minister said recently, namely that he was happy to do deals with the UK but not based on protecting Welsh or Scottish hill farmers. “The UK wants to trade with the rest of the world but at what cost? “Australians don’t want to buy our lamb but they do want to do deals on financial services. So, if we sell them financial services, what will we need to take back in return? “What is going to be sacrificed on the altar of these trade deals? That’s my biggest concern.”

glut, but A COMBINATION of a prolonged summer heatwave and a mild winter has left Queensland with its biggest ever pineapple glut. While it’s good news for Australian consumers, with prices at record lows, the glut means farmers are stuck with the excess. “We have twice as much fruit this winter than what we want or expect,” Pure Gold Pineapples director Joe Craggs said. “We need to encourage people to eat more pineapples.” Pineapple expert, agronomist Col Scott, said the early flowering phenomenon was the worst he had seen in his 47-year career. Scott said an unusually high number of days of more than 36C in summer had prompted plants on farms all the way along the Queensland coast to produce more flowers than usual, and too early in the season, leading to a surplus of fruit. Scott said the state’s mild winter had then caused the pineapples to ripen too soon. “It’s a phenomenon we don’t really want to see in pineapples, but we don’t have any control over the weather,” he said. “This year is particularly bad. It’s the worst I can remember.” www.weeklytimesnow.com

As well, Australian businesses already in partnership with European firms needed to spruik their success stories. Agriculture tariffs and quotas, especially beef, lamb and dairy exports from Australia, are expected to be among the hot-button issues during trade talks. Ireland, the Netherlands, parts of Belgium and Italy could be the hardest to win over. European Parliament MP for Wales, Derek Vaughan, said Canberra needed to emphasise any deal wouldn’t be one-sided and that there were benefits, such as technology and research exchanges, for EU farmers. “Another thing is using Australia as a gateway to the Asian markets that are currently closed to the EU,” he said. Vaughan believed initial anxiety had subsided within the EU over Australia’s vocal enthusiasm for a quick free-trade deal with the United Kingdom. “Indeed, it might be an incentive for the EU to do a quicker deal with Australia before Brexit.” While negotiations have yet to start, there are hopes a deal can be struck in 2019. www.weeklytimesnow.com

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agrievents Thursdays 20/07/2017 and 17/08/2017 AWDT Understanding Your Farming Business Three full-day workshops and an evening graduation ceremony run over four months Venue: Hunterville Contact: anna@awdt.org.nz or 06 377 4560 Website: To register for the programme go to http://www.awdt.org.nz/programmes/understanding-yourfarming-business/ Wednesdays 23/08/2017, 20/09/2017, 18/10/2017 & 15/11/2017 AWDT Understanding Your Farming Business 3 full-day workshops and an evening graduation ceremony run over four months Venue: Moutere Hills Community Centre, Upper Moutere Contact: anna@awdt.org.nz Website: To register for the programme follow this link http://www.awdt.org.nz/programmes/understanding-yourfarming-business/ Wednesdays 13/09/2017, 11/10/2017, 08/11/2017 & 06/12/2017 AWDT Understanding Your Farming Business 3 full-day workshops and an evening graduation ceremony run over four months Venue: Waverley Contact: anna@awdt.org.nz Website: To register for the programme follow this link http://www.awdt.org.nz/programmes/understanding-yourfarming-business/ Saturday 22/09/2017 2017 National Alpaca Show Venue: Manfield, South Street West, Feilding Time: 9.00am Thursday 27/10/2017 to Saturday 29/10/2017 Waikato A&P Association - 125th Jubilee Show Venue: Claudelands Showground, Hamilton Entries and contact: Trish Lloyd – 07 855 4776 or accounts@waikatoaandp.co.nz Website: www.waikatoaandp.co.nz Should your important event be listed here? Phone 0800 85 25 80 or email adcopy@nzx.com

LK0085515©

FREE-TRADE agreements across the Tasman are on a fast track, with aims to seal an AustraliaIndonesia deal by the end of the year. And negotiations on an agreement with the European Union could also speed up with hopes of a resolution in 2019, a target Prime Minister Malcolm Turnbull described as “realistic but ambitious”. Turnbull and Indonesian President Joko Widodo reaffirmed their commitment to this year finalising the Indonesian Australian Comprehensive Economic Partnership Agreement during a side meeting at the G20 summit in Germany earlier this month. Negotiations on the long-stalled deal resumed last year with headway already made on two crucial commodities, sugar and beef. Indonesia agreed earlier this year to lower its tariffs on Australian sugar to 5%, and to increase the maximum weight for feeder cattle imported from Australia. President Widodo has previously indicated, however, that Indonesia would be looking to remove tariffs on palm oil and paper.

bayleys.co.nz Contributor to realestate.co.nz

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – July 17, 2017

farmersweekly.co.nz/realestate 0800 85 25 80

AUGUSTA’S DIVERSIFY INTO THE AUSTRALIAN MARKET

LATEST INVESTMENT

OPPORTUNITY

AUD $50,000 MINIMUM INVESTMENT BRISBANE CBD

• BRISBANE AIRPORT 5 MINUTES • PORT 15 MINUTES • GOLD COAST 50 MINUTES

741 NUDGEE ROAD

Boundary lines are indicative only

FORECAST PRE-TAX CASH RETURN PAID MONTHLY 8.00% 7.65% 7.35%

• Modern industrial building completed in 2005. • Well located on a high exposure corner site close to major arterial transport routes and distribution networks along with the airport and sea port. • Tenanted by Health World Limited, established in 1985 and one of the largest suppliers of natural medicines (vitamins and health supplements) in Australia and New Zealand, an industry experiencing record growth. • Long lease with 11.5 years remaining on the current term and rights of renewal until 2034. • Annual rent reviews, typically with minimum increases of 3% and market reviews every three years (rental cannot decrease on market review). For a copy of the Product Disclosure Statement or more information including a video, please contact the below selling agent or visit the website:

NUDGEE ROAD

10 months ending 30 June 18

First full year ending 30 June 19

Year ending 30 June 20

The graph is not to scale. The returns are not guaranteed. The actual distribution rates may vary. The increase in returns over the forecast period does not guarantee further increases. While it may continue to increase, the return following the forecast period may stay the same or lower. Details on how the forecast pre-tax cash returns are calculated, and the risks associated with the investment, are set out in the Product Disclosure Statement.

MIKE HOULKER

SAMARA PHILLIPS

Bayleys Real Estate Limited, Licensed under the REAA 2008

Bayleys Real Estate Limited, Licensed under the REAA 2008.

P 09 309 6020 M 021 945 927 mike.houlker@bayleys.co.nz

P 09 375 8490 M 021 027 61373 samara.phillips@bayleys.co.nz

0800 BAYLEYS (229539)

www.australianinvestment.co.nz

Augusta has partnered with Australian-based funds manager DDH Graham Limited to establish an Australian registered managed investment scheme which is open to both New Zealand and Australian investors. DDH Graham Limited ACN 010 639 219 AFSL 226319 is the responsible entity of, and issuer of the Product Disclosure Statement offering investment in the Augusta Nudgee Road Property Trust ARSN 619 503 472. The PDS is available in New Zealand pursuant to the trans-Tasman mutual recognition regime. The promotion of the offer in New Zealand is undertaken by Bayleys Real Estate and Augusta Funds Management Limited and DDH Graham Limited has not prepared, and is not responsible for, this advertisement. Prospective investors are recommended to seek professional advice from an Authorised Financial Adviser, which takes into account their personal circumstances before making an investment decision. The selling agents are not providing personalised advice, but will provide all prospective investors with a copy of the Product Disclosure Statement.

EXPRESSION OF INTEREST CONTRACT GROWERS REQUIRED NORTH WAIKATO

THE ADDRESS FOR RURAL REAL ESTATE

DIVERSIFY YOUR FARM INCOME 10 YEAR LEASE AVAILABLE + Outstanding opportunity to become an Ingham’s free range poultry grower + North Waikato location – within 75km of Te Aroha

Stay up-to-date with the real estate market with

farmersweekly.co.nz/realestate

+ Comprehensive information available + Sophisticated supply chain and full grower training provided

+ Approximately 20ha of land required

+ Plans and specifications to assist shed design and costing

+ 10 year lease, with Rights of Renewal and periodic rent increases

+ Call us for confidential no-obligation discussion DEADLINE EXPRESSIONS OF INTEREST Wednesday 26 July 2017 at 4.00pm

JEREMY KEATING 021 461 210

WYATT JOHNSTON 027 8151 303

www.propertyconnector.co.nz/208248Q27 CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – July 17, 2017

OPOTIKI FARM PROPERTY 358 Ha 701 OTARA ROAD, OPOTIKI Situated 7 Km from Opotiki this long held Family Farm is to be sold. Total land area 358.8866 Ha, held in 13 titles, currently operating as a Dairy Farm. The property is available to purchase as one lot or in part with five attractive options to consider: Option 1; The Total Package, 358.88 Ha, Option 2; Home Dairy Farm, 86.97 Ha, Option 4; Hill Country, 122.37 Ha,

Option 3; Forestry Block, 88.31 Ha, Option 5; Northern Flats, 61.21 Ha.

There are five houses on the property, all options except the forest block have house/s and farm buildings. The farm property is being offered for sale as land, buildings and farm chattels. This is an exciting opportunity with appealing choices to be had. Information Memorandum and Tender Documents are available from the Agent. More information online. The purchase price is PLUS GST (if any), for settlement 1st June 2018 For sale by public tender, closing at the office of: Professionals Whakatane Ltd, 38 Landing Rd, Whakatane; 12.00 noon Wednesday 9 August 2018. (Note: Will not be sold prior). FARM OPEN DAYS: Mon 10 July, Fri 14 July and Wed 19 July – Times 10.30am to 1.00 pm. (You may bring your own farm bike or UTV – Helmets a must have)

VIEW ONLINE: professionalswhakatane.co.nz/PWK00915

Maurice Butler 0274 514 395 maurice@professionalswhakatane.co.nz

@RuralRealEstateWhakatane

07 307 0165 professionalswhakatane.co.nz Licensed under REAA 2008

For Sale

Boundary indicative only

Canterbury | Darfield 306.4 Hectares

Subject to survey and title

Strategic Opportunity - Scale, Shape, Location. A collective total sale area of 306.48 hectares (subject to survey), comprising of 241.78 hectares (Beattys Road) and a proposed subdivided parcel of contiguous land of 64.7 hectares (Yeomans Road). An opportunity with significant scale and excellent shape in terms of future irrigation and general farm layout. Shares in the CPW scheme allow for a range of land use options. Located only 40 minutes from Christchurch, these well located properties are poised for the next level of production. | Property ID DA1733

Licensed under REAA 2008

Deadline Sale Closing 1pm, Wednesday 9 August 2017

Inspection By appointment

Contact Matt Collier 027 205 6626

South Canterbury | Timaru 110 Hectares For Sale / 215 Hectares For Lease Attention All Vegetable Growers And Cropping Farmers. Opportunity to purchase and lease a substantial amount of premium irrigated South Canterbury land. Located on the Levels Plain, on the fringe of Washdyke and Timaru. The land is currently growing a diverse range of vegetable crops, cereals and small seeds with contracts to supply local and international markets. High quality Templeton silt loams, well proven to produce consistently high yields and quality product. Irrigation Water is supplied from the reliable Opuha Irrigation Company and shares are included with the sale of the land. Call to discuss the different purchase options available. | Property ID TU10979

Deadline Sale Closing 1pm, Thursday 3 August 2017

Inspection By appointment

Contact Simon Richards 027 457 0990 Eddie Moir 021 731 199

THE NEW ZEALAND FARMERS WEEKLY â&#x20AC;&#x201C; July 17, 2017

Real Estate

farmersweekly.co.nz/realestate 0800 85 25 80

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

Property Brokers Limited Licensed under the Real Estate Agents Act 2008

Kaitawa - 542 ha

WEB ID MR56544

ALFREDTON 14405 Route 52 Located in the renowned farming district of Alfredton is this 5200 su plus grazing and semi-finishing property. This strong farm has a balance of northern facing hills and 45 ha of flats in improved pastures. The pastures on the hills are indicative of an excellent fertiliser programme. The improvements are of a high standard including a 3 stand woolshed with an excellent covered yard facility (1500NP), a sound 4 bedroom home as well

as a good 3 bedroom cottage with a variety of farm buildings including an impressive 10 bay calf rearing facility. Farm water is reticulated from the Tiraumea river to the flats with dams providing ample water to hill paddocks. Kaitawa provides a genuine farming opportunity with impressive performance history and some livestock available to the purchaser.

VIEW By Appointment TENDER closes Wednesday 9th August, 2017 at 4.00pm, Property Brokers Limited, 84 Chapel Street, Masterton

TENDER Paul Joblin

Mobile 027 443 3756 Office 06 378 7604 Home 06 372 7789 paulj@pb.co.nz

Jared Brock

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

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

Licenced under REAA 2008

FIN AL

N O TI CE

AUCTION

MATURE FORESTRY INVESTMENT Kauarapaoa Road, Brunswick, Wanganui The opportunity to secure a close to harvest forestry investment property, totalling 644ha comprising of 4 titles with approximately 170 ha pine plantation planted in 1993, 1994 and a balance of 30 ha in 1995. The remaining area consists of 60 ha of manuka and regenerating native species, 8 ha livestock grazing pasture and 406 ha of virgin native forest. The hill country property has good strategic tracking throughout the pine forest to assist harvesting and placement of a small number of Beehives.

644 hectares Tender (unless sold prior) www.nzr.nz | Ref: R269 Tender closes 4pm, 3rd August 2017 1 Goldfinch Street, Ohakune Jamie Proude AREINZ 06 385 4466 | 027 448 5162 jamie@nzr.nz NZR Central Ltd | Licensed REAA 2008

Fully Deer Fenced Grazing Block

Wellsford

74.93ha (185 acres) predominantly easy rolling contour. Large Deer shed, modern three bay tractor shed and two barns. High quality grazing pasture along with pockets of native bush. Excellent internal/boundary deer fencing, reliable water to troughs in every paddock. Fertility and pasture are very good with Vendor of 16 years running fallow deer and more recently dairy young stock. Elevated sheltered sites to build your dream home. Continue to graze, or lease the block out as is currently the case.

AUCTION

www.pggwre.co.nz ID: WEL26297

(Unless sold prior) Plus GST (if any) 11.00am, Thursday, 10 August PGG Wrightson Real Estate 2 Port Albert Road, Wellsford

Scott Tapp B 09 423 9717 M 021 418 161

pggwre.co.nz

We’re looking for a Farm Manager to lead the team at our iconic Goudies Station. The property supports 20,000 su sheep, deer and cattle on 1,750ha of flat pumice land. Goudies is the home of the Goudies Romney Stud, 3,000 fully recorded Romney ewes plus replacements that provide rams to farms throughout New Zealand. It is a unique opportunity to contribute to the genetic gain of one of the top ranked flocks in the country and build relationships with Focus Genetics clients. You will bring an understanding of/ experience handling the complexity of a fully recorded breeding flock and breeding finishing systems; the ability to lead and motivate a team; confidence to introduce new ideas into the business and a willingness to learn new systems. The position comes with a modern 3/4 bedroom house. Details of how to apply: www.landcorp.co.nz/careers For more information, please contact Jim Inglis on 027 452 8455.

Man O’War Farm operates a 1100ha sheep and beef breeding operation carrying 11,500su on the eastern end of Waiheke Island in the Hauraki Gulf. The island location provides some unique challenges and opportunities for the right person. We are currently seeking an experienced Shepherd/General to join our team. You will be working alongside the Farm Manager with the role based around 50% stock work and 50% general duties. You will have: • The ability to work efficiently on your own and as part of a team • A high level of pasture and stock management skills, 2-3 years experience • A strong work ethic with an focus on “getting the job done” • Positive approach to Health & Safety • Sound fencing skills, both electric and conventional • Excellent communication skills and attention to detail • 2-3 dogs under good command We offer excellent remuneration for the right skills and a good 3-4 bedroom house at the western (town) end of the property. Quality schooling and services are available on the island.

Applications close 5pm, Sunday 23 July 2017.

For more information phone the Farm Manager Jamie Ward on 021 0273 6596 or email CV and covering letter directly to: farm@manowar.co.nz

Applications close: 31st July 2017

Tractor Driver

Farm Manager – Puke Te

Applicant must: • Have experience with Fendt tractors • Have experience in Precision drilling and using cultivation and baleage equipt • Be confident on steep hill country • Be confident using boom sprayer and fertiliser spreader • Have hard hose irrigator knowledge • Have current HSNO certificate Shared single accommodation supplied. See TradeMe #1369130258 for full job description

The Directors of Totaranui Stud seek an experienced and enthusiastic Farm Manager for Puke Te, a 1600 hectare breeding finishing property 10 minutes east of Masterton.

LK0088408©

Goudies Farm, Romney Stud

SHEPHERD/GENERAL

THE NEW ZEALAND FARMERS WEEKLY – July 17, 2017

The property has a balance of flat, rolling and steep hill country. It is intensive, currently wintering 12500 stock units; 6000 ewes, 240 cows and the balance bulls. The farm requires an exceptional manager, able to demonstrate superb leadership, stockmanship, feed budgeting and grazing skills. Experience with Farmax would be an advantage. The manager would require an excellent team of working dogs, and would be expected to be very hands on with stock work, leading the team from the front. This farm is close to excellent schooling and town work opportunities for partners. It includes a well appointed 3-bedroom family home with a large garden and swimming pool. Please send CVs and applications to: bulls@totaranuistud.co.nz by 21 July.

Trigham Station A mature and experienced Shepherd/General is required to join the owners of a 1600ha hill-country sheep and beef breeding property. Trigham Station is a unique progressive property 25 minutes west of Taradale in the Patoka area, and is currently undertaking an extensive development programme. The applicant must: • Be honest, reliable and motivated • Possess a full range of farming skills • Have the ability to accept responsibility and 3-4 dogs required • Have excellent communication skills Excellent 4-bedroom accommodation and working conditions. Immediate start available. For further information or to send your CV with references please contact:

EMPLOYMENT

Gary & Gaylene Peddle RD 4, Patoka, Napier 4184 Ph 06 839 5878 • Mobile 027 485 2301 Email gopedz@clear.net.nz

REACH EVERY FARMER IN NZ FROM MONDAY General Manager (Ahuwhenua)

Tihei Mauriora e te motu. He karanga tēnei ki te waonui a Tane e pa ana ki ngā kaimahi hou kei raro i te korowai a Parininihi ki Waitotara. Parininihi ki Waitotara (PKW) is a Māori Incorporation based in Taranaki, Aotearoa. PKW own 20,000 hectares of some of the most productive dairy land in the world and have a range of business interests including dairy farming, crayfish, forestry and commercial property. PKW is an innovative, sustainable and successful business and the kaitiaki of our shareholders’ assets for future generations. Established in 1976, PKW manages and administers land and land related assets returned to Taranaki Māori following the Taranaki Land Wars. PKW has over 9500 shareholders and an elected Committee of Management which oversees the governance of the organisation. The PKW team are driven by their mission of He Tangata, He Whenua, He Oranga – building and growing our people through prosperity towards their vision. Therefore, Māori values and customs underpin the Incorporations environment and practices.

Please print clearly Name: Phone: Address: Email: Heading: Advert to read:

PKW Farms LP is excited to be taking applications for their General Manager Ahuwhenua role, crucial to the success of their farming business. The purpose of this role is to deliver strategic leadership and management of the Ahuwhenua (Farming) Group, lifting overall performance and profitability across the multiple farming operations. Key responsibilities of the Farm Manager, include; • Strategic group leadership and farm management • Diversification, innovation and development • Group financial management • People empowerment and development • Health and safety leadership • Relationship/stakeholder management This is a senior management position reporting to the CEO. The ideal candidate will have at least 10 years’ experience in farm management, with at least 5 years’ of multi-farm management experience to lead the Ahuwhenua team. Those considering this position should also have a genuine commitment to supporting Māori aspirations along with an Agribusiness Degree. Applications for this position will close on Wednesday the 26th of July 2017 at 5.00pm. For the role description go to the AgriPeople website and to request an application form contact Racquel Cleaver directly.

Racquel Cleaver | 027 453 1450 racquel@agripeople.co.nz | www.agripeople.co.nz

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

LK0088340©

FARM MANAGER

Employment

LK0088432©

classifieds@nzx.com – 0800 85 25 80

LK0088407©

Classifieds

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

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

ATTENTION FARMERS www.gibb-gro.co.nz GROWTH PROMOTANT $5.85 per hectare + GST delivered Brian Mace 0274 389 822 07 571 0336 brianmace@xtra.co.nz

DAIRY SHED REPAIRS PRITCHARD MASONRY. Milking shed masonry repairs. Concrete or block. Solid plastering or pad placement etc. Workmanship guaranteed. Prepared to travel. Phone 06 346 5617 or 027 2740 306.

WHATATUTU DOG SALE. Starts 12 noon, Saturday, 22nd July at Rangatira Station, Te Karaka. Email entries to: annieflood@hotmail.com with the following details: Heading or Huntaway, name, age, sex, colour and details of working ability.

SAWN SHED TIMBER including Black Maire. Matai, Totara and Rimu etc. Also buying salvaged native logs. Phone Richard Uren. NZ Native Timber Supplies. Phone 027 688 2954.

HOUSE WANTED RELOCATABLE HOUSE wanted. Wairoa / HB or Gisborne areas. Phone 06 83 76 724 evenings.

WANTED STEERING BOX for International 434 tractor. Contact: yorkiwi2017@ yahoo.com or phone 03 526 8896.

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

Contact Peter Gibbs on 0274 792 583 Email – gibbs.peter01@gmail.com

HOOF TRIMMER

POWER CABLE

COLOSTRUM POWDER FOR CALVES

We could save you hundreds of $$

HOMES FARM SHEDS SUBDIVISIONS PUMPS Prices include delivery to your door!

Also available colostrum for calves, lambs, foals, fawns, kids and alpacas.

Contact Halen Health Freephone: 0508 777 777

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

Classifieds display advertising We have extended the buy 4 pay for 3 special until the end of the year as we’ve had a good response to the initial offer. You are welcome!

PUMPS

DON’T PAY $100s to run your dog at auction with the possibility of not getting any bids or reaching reserve! I’m paying $100 bonus on top of your asking price! 07 315 5553. Mike Hughes.

3m length – 55mm to 75mm at base Cut to order – further discounts and free delivery for volume orders

2017 Special

HOUSE FOR REMOVAL wanted. North Island. Phone 021 0274 5654. FOR ONLY $2.00 + gst per word you can book a word only ad in The NZ Farmers Weekly Classifieds section. Phone Debbie Brown on 0800 85 25 80 to book in or email classifieds@nzx.com

12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195.

BIRDSCARER DE HORNER

BOOK AN AD. For only $2.00 + gst per word you can book a word only ad in The NZ Farmers Weekly Classifieds section. Phone Debbie Brown on 0800 85 25 80 to book in or email classifieds@nzx.com

PROPERTY WANTED

DOGS WANTED

$6 plus GST EARMARKERS

WANTED TO BUY

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.

MID WINTER DOG clearance blowout. 50 dogs $500-$2500. Compare on sheep and cattle online or onFarm. 30 day exchangeable! Trade ins welcome. Deliver Northland to Southland. No dog auction offers any of that! 07 315 5553. Mike Hughes.

livestock@nzx.com – 0800 85 25 80

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

GOATS WANTED

SOUTH ISLANDERS shipping dogs down there 21st July. View online and delivered to you. 07 315 5553. Mike Hughes.

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

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

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

A reminder on how it works: Buy 4 ads and only pay for 3 What does this include? • Colour • Discussion around the content of your ad • The design of your ad • Proof to you for your approval for signing off

To be part of this deal – Call Debbie on 06 323 0765 or email classifieds@nzx.com

Livestock

SALE TALK

LK0088431©

BRIAN ROBINSON LIVESTOCK LTD A lawyer invites his cousin from the Czech HAS THE FOLLOWING DAIRY CATTLE Republic to come and LINES ON QUOTE FOR IMMEDIATE stay with him in Canada. AND LATER DELIVERY The Czech cousin arrives, determined to Jersey in-calf heifers, 25, due from 20 July to enjoy himself. Soon they decide to go Jersey bulls, fully recorded, well grown. rambling. They’re right • Ayrshire yearling heifers, 50, fully recorded out in the middle of the • Friesian autumn-born weaner heifers, forest when a big grizzly recorded bear appears. The bear • Friesian autumn 2016-born heifers, recorded hugs the poor Czech Jersey weaner heifers, CRL 2017 spring-born, cousin to death and then eats him. AB bred, fully recorded, approximately 100 HIGH INDEXING JERSEY & JERSEY The lawyer runs to the head for delivery after weaning Nov/Dec 17. CROSS HERD nearest village and tells Jersey cows for delivery Sept/Oct after calving, everybody what has recorded. BW 143/50 PW 161/67 RA 100% happened. The villagers (in top Breeds for NZ high ) Jersey herd,10 120All cows, fully recorded, form a search party and return to the forest. production cows, high quality for delivery June They come across• Many 2018.cows contracted to LIC for 2011 matings some bears and ask• Due to calve from 16-7-12, 6.5 weeks Friesian cows, recorded, from 450kg AB Jersey and 150, Kiwi fully cross the lawyer to identify MS herd ave, delivery Sept/Oct. the one that killed his• Estimated to be 420 cows after non pregnant, culls, older 5%20 rejection cousin. Friesian/Friesian Crosscows cows,&pick from lastherd season 347kgsdelivery ms/cow, ‘It’s that male bear over• Production 200-450kg MS ave, recorded, to 1000kgs ms/ha, on rolling to steeper there.’ suit purchasers. contoured farm, no meal, palm kernel or maize They kill the bear and Bulls of all breeds and ages. fed. rip open his stomach, stock alsoin-milk available Watch replacement for more details on two sales but there is nothing• Young there. They decide to kill coming up Sept/Oct. the female bear nearby,Outstanding genetics & potential to be one of Visit our website and when they rip openthe countries leading suppliers of Genetics to www.brianrobinsonlivestock.com the dairy industry for years to come. Full details her stomach, they find the poor Czech cousin. available. All enquiries to: So it all goes to show:Enquiries to the sole marketing Brian Robinson Ph 027 241 0051 agents: ‘Never trust a lawyer Neil McDonald Ph 027 218 8904 when he says the Selwyn DonaldBRLL Ph 027 437 8375 Brian Robinson cheque is in the mail.’ Ph 027 PH: Kevin 0272 Hart 410051 or291 07 5575 8583132 [check; cheque; Czech]

FOR SALE

• 1 and 2 year jersey bulls • Feeder Jersey heifer and bull calves • 90 autumn 2018 calving Jersey cows BW 146 • 220 OAD Jersey herd BW 90+. End of season delivery • 50 Jersey in-calf heifers BW 120+. End of season delivery • Lines of Jersey and xbred spring calving cows and in-calf heifers to suit all requirements

WANTED

• Lines of 1 year Jersey heifers • Herds for end of season delivery • Stock Agents to join our team!

Contact Ross Riddell 0272 111 112 or Grant Aiken, Whangarei, 0272 458 821

STOCK FOR SALE R1 YR DAIRY HEIFERS Frsn & Frsn X Clint Worthington 021 209 2736

STOCK REQUIRED 300 x 2&4 TOOTH EWES SIL 01/04 R2 or R3 YR STEERS EXOTIC BEEF X 500-550kgs Guy Strang 021 472 958

STORE LAMBS 26-36kgs 150-300kgs R1 YR BULLS 2 YR STEERS 420-500kgs

COMPLETE DAIRY HERD AUCTION

A/C: JP & CM Goodin DATE: Monday 24 July 2017 ADDRESS: Kaponga Selling Centre, Lwr Duthie Road START TIME: 11:00am COMPRISING OF: • 120 Jersey & Jersey X in-calf dairy cows, BW 77, PW 90, R/A 87% HERD/HEIFER DETAILS: • Herd offered for sale due to farm sale • Calv from 28/07, mated to LIC AB 4 weeks, • AB bred for 30+Yrs. TB C10, Lepto Vacc, bvd milk free • 380KG/MS/Cow, Blanket dry cow treatment • Many cows showing well forward in calving. AUCTIONEERS NOTE: Rare opportunity to be able to buy replacements from genuine herd auction at this stage of the season. PAYMENT TERMS: 20th October 2017. Catalogue available at auction or contact Sheldon Keech 027 222 7920 or Brent Espin 027 551 3660

John Stephens 027 939 2369

www.dyerlivestock.co.nz

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

LK0088379©

ONE 9-MONTH old Huntaway. Good nature, good bark, ready for work. Phone 06 388 0212 or 027 243 8541. HEADING PUPS (two males). Tri-coloured from good working parents. 14 weeks old. Phone 07 871 9934 or 027 476 2579.

Discounted Kawa Poplar Poles Available

LK0088342©

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

TRACTOR PARTS

LK0088402©

DOGS FOR SALE

LK0088315©

FERTILISER

ANIMAL HANDLING

classifieds@nzx.com – 0800 85 25 80

LK0088147©

THE NEW ZEALAND FARMERS WEEKLY – July 17, 2017

EARN FARM SOURCE REWARD DOLLARS ON ALL FARM SOURCE LIVESTOCK PURCHASES & SALES* T&Cs apply. See nzfarmsource.co.nz/rewards

MARKET SNAPSHOT

IN PARTNERSHIP WITH

Grain & Feed 6.70

AS OF 24/05/2017

AS OF06/07/2017

US$/t

WMP GDT PRICES AND NZX FUTURES

333

NI mutton (20kg)

4.15

4.10

2.60

331

279

SI lamb (17kg)

6.65

6.55

5.25

Feed Barley

352

339

257

SI mutton (20kg)

4.15

2.50

221

Export markets (NZ$/kg) 8.29

8.30

6.79

221

222

UK CKT lamb leg

Maize Grain

410

342

PKE

220

221

215

* 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.

6.5 6.0 5.5

Last week

Prior week

Last year

Wheat - Nearest

259

236

220

Corn - Nearest

206

203

198

5.0

CBOT futures (NZ$/t)

4.5

3500

APW Wheat

367

373

324

3000

ASW Wheat

362

367

300

2500

Feed Wheat

278

255

254

Feed Barley

315

311

267

110

PKE (US$/t)

Jun 17 Sep 17 NZX WMP Futures

North Island 17kg lamb 7.0

INTERNATIONAL

4000

1500 Sep 16 Dec 16 Mar 17 C2 Fonterra WMP

5.45

335

Australia (NZ$/t)

2000

6.65

342

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

Ex-Malaysia

South Island 1 7kg lamb

7.0 6.5

NZ venison 60kg stag

6006.0 5005.5 400

5.0

300

4.5 Oct Oct

Dec

Feb

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

Prior week

vs 4 weeks ago

WMP

3135

3150

3145

SMP

2050

2080

AMF

6700

Butter

5900

Last week

Prior week

Last year

Prior week

Last year

2220

Urea

477

475

6.65

7.75

6750

6600

Super

309

314

35 micron

3.30

5.40

5900

5500

DAP

784

39 micron

2.65

5.40

702

Oct

Nov

Dec

Jan

MARKETS continue to be mixed across the globe with volatility certainly being the constant for the investing landscape. In the United States, tech stocks have continued their rally, boosting markets higher though attention has largely been focused again on the Trump Administration and the US Federal Reserve. This week is very busy for important local events. The highlight will be the June quarter CPI figures, which will be of interest given the strength in the March quarter when inflation rose to an annual rate of 2.2%, above expectations and the highest level since the third quarter of 2011. Big increases in food prices, alcohol/tobacco and fuel prices were a large part of the increase though some of them might prove transitory. Globally, the focus in the week ahead will shift to the corporate reporting season. It got under way with some of the US financials reporting and things get very busy this week and next. The March quarter reporting season was the strongest in several years, so investors will watch with interest to see if this momentum has been sustained. Market commentary provided by Craigs Investment Partners

S&P/NZX 50 INDEX

7611

S&P/NZX 10 INDEX

7445

$/kg

250 150 Jul 13

Jul 14

Jul 15

Jul 16

Feed barley

4 w eeks ago

Sharemarket Briefing

5.5

NZ venison 60kg stag

600

c/k kg (net)

NZ$/t

US$/t

2750

39 micron wool price

6.5

CANTERBURY FEED PRICES

3000

13567

This yr

6.65

350

10965

Aug

Last week

3250

S&P/FW AG EQUITY

Last yr

Aug

29 micron

450

S&P/FW PRIMARY SECTOR

Jun

(NZ$/kg)

3500

Latest price

Jun

NZ average (NZ$/t)

WMP FUTURES - VS FOUR WEEKS AGO

Sep

Apr

WOOL

* price as at close of business on Thursday

Aug

Apr

FERTILISER

Last price*

2500

Last year

6.70

335

Waikato (NZ$/t)

Jun 17 AgriHQ Seasonal

Last week Prior week

NI lamb (17kg)

Feed Wheat PKE

Slaughter price (NZ$/kg)

Milling Wheat

Apr 17

Last year

$/kg

6.50

Feb 17 AgriHQ Spot Fonterra forecast

Prior week

Canterbury (NZ$/t)

MILK PRICE COMPARISON

$/kgMS

Last week

AGRIHQ 2017-18

FONTERRA 2017-18

5 Dec 16

SHEEP MEAT

DOMESTIC

$/kg

MILK PRICE FORECAST ($/KGMS) 2017-18

Sheep

c/kkg (net)

Dairy

Jul 17

PKE spot

Auckland International Airport Limited

YTD High

YTD Low

6.88

7.43

6.31

Meridian Energy Limited

2.85

3.02

2.57

Spark New Zealand Limited Fisher & Paykel Healthcare Corporation Ltd Fletcher Building Limited Mercury NZ Limited (NS) Ryman Healthcare Limited Air New Zealand Limited (NS) Contact Energy Limited Xero Limited

3.83 11.15 7.78 3.33 9.03 3.515 5.22 25.9

3.93 11.67 10.86 3.4 9.09 3.595 5.31 26.36

3.32 8.5 7.42 2.94 8.12 2.08 4.65 17.47

Listed Agri Shares Company

400 3.5 300

2.5Oct Oct

Dec

5‐yr ave

Feb

Apr

Last yr

Jun

Aug

This yr

Dollar Watch

Top 10 by Market Cap Company

4.5

500

5pm, close of market, Thursday

YTD High

YTD Low

The a2 Milk Company Limited

3.98

4.15

2.06

Cavalier Corporation Limited

0.31

0.81

0.27

Comvita Limited

6.12

8.65

5.15

Delegat Group Limited

6.5

6.72

5.65

Foley Family Wines Limited

1.3

1.5

1.2

Fonterra Shareholders' Fund (NS)

5.98

6.4

5.88

Livestock Improvement Corporation Ltd (NS)

2.35

2.61

2.35

New Zealand King Salmon Investments Ltd

1.59

1.71

1.22

PGG Wrightson Limited

0.59

0.61

0.49

Sanford Limited (NS)

7.2

7.75

6.7

Scales Corporation Limited

3.38

3.65

3.21

Seeka Limited

5.08

5.5

4.3

Tegel Group Holdings Limited

1.27

1.46

1.05

S&P/FW Primary Sector

10965

10974

9307

S&P/FW Agriculture Equity

13567

13598

10899

S&P/NZX 50 Index

7611

7685

6971

S&P/NZX 10 Index

7445

7563

6927

THE New Zealand dollar This Prior Last NZD vs jumped last week on week week year speculation of renewed USD 0.7321 0.7278 0.7200 interest rate hikes in EUR 0.6417 0.6372 0.6479 commodity economies coinciding with a sell-off AUD 0.9467 0.9592 0.9433 in the United States dollar, GBP 0.5655 0.5611 0.5404 as the US Federal Reserve Correct as of 9am last Friday appeared to take a more dovish view of its own economy. “Canada was the first central bank to cut rates in 2015, and now it is the first to start raising again,” ASB Bank institutional currency dealer Tim Kelleher said. “The markets are saying that if Canada is doing it then New Zealand and Australia could follow.” The ASB view is that this won’t be happening, though it does have an earlier official cash rate hiking track than the Reserve Bank. NZ inflation remains very low – with consumer price index data expected to confirm that this week – and there’s no reason for the RBNZ to hike early, he said. It wants a lower kiwi and will avoid action that would only push it higher. The kiwi hit a high of US$0.7368 overnight on Thursday before easing back. ASB has lifted its forecasts for the kiwi from a year-end 0.72, now expecting it to push to 0.74 into next year. Kelleher sees the kiwi maintaining its current strong levels against the Aussie dollar, sterling, and Japanese yen, but expects slight easing against a strengthening euro as the European Central Bank starts unwinding monetary stimulus in the next few months. He has an €0.61-0.62 forecast for next year. Alan Williams

Markets

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017

NI SLAUGHTER LAMB

SI SLAUGHTER LAMB

SI SLAUGHTER STAG

($/KG)

TRADITIONAL R2 HEIFERS, 340355KG, AT STORTFORD LODGE

($/KG)

($/KG LW)

6.65

6.70

9.10

3.32

high lights

$670-$750

$115-$147

R1 Hereford-Friesian heifers, 180-190kg, at Rangiuru

Medium prime lambs at Feilding

Cattle & Deer

More photos: farmersweekly.co.nz

BEEF Slaughter price (NZ$/kg)

Last week

Prior week

Last year

NI Steer (300kg)

5.65

5.70

5.50

NI Bull (300kg)

5.65

5.40

NI Cow (200kg)

4.55

4.50

SI Steer (300kg)

5.70

5.30

SI Bull (300kg)

5.25

5.10

SI Cow (200kg)

4.30

4.10

US imported 95CL bull

7.19

7.18

6.82

US domestic 90CL cow

7.03

6.99

6.75

Export markets (NZ$/kg)

North Island steer (300kg)

6.5

$/kg

6.0 5.5

GETTING A WOOF: PGG Wrightson Mid Canterbury Livestock Manager Greg Cook inspects the dogs on offer before the recent sheep and cattle dog sale in Ashburton.

5.0 4.5

Weather sees sales cancelled, postponed

4.0 South Island steer (300kg)

6.5 6.0

NZ venison 60kg stag

c/k kg (net)

$/kg

5.5 600 5.0 500

400 4.5 300 4.0

Oct Oct

Dec Dec

Feb Feb

5‐yr ave

Apr Apr

JunJun

Last yr

AugAug This yr

VENISON Slaughter price (NZ$/kg)

Last week Prior week

Last year

NI Stag (60kg)

8.80

7.95

NI Hind (50kg)

8.70

7.85

SI Stag (60kg)

9.10

7.95

SI Hind (50kg)

9.00

7.85

New Zealand venison (60kg Stag)

c/k kg (net) $/kg

NZ venison 60kg stag

600 8

500 400 7 300 6 Oct

Oct

Dec Feb Dec Feb 5‐yr ave

Apr Apr Last yr

Jun Jun

Aug Aug This yr

HE winter blast that engulfed much of the country last week caused issues at some South Island sale yards. The Temuka ewe fair calendared for last Wednesday was postponed to the following week, as farmers focus on moving stock to sheltered areas. Coalgate sale last Thursday was also cancelled as thick snow blanketed the area. In the North Island most sales got through without being affected, though road closures and low lying snow saw a large number of cancellations for the Feilding sale, with very low numbers yarded. NORTHLAND NORTHLAND While the wintry blast heading up the island has missed Northland, very wet conditions underfoot and good prices drew a larger number of cattle

to KAIKOHE last Wednesday, with nearly 700 head penned. The extra numbers did put pressure on the market, and while good quality stock held value, lesser crossbred lines were harder work, PGG Wrightson agent Vaughan Vujcich reported. Around 200 R2 steers were offered, and the better beef and beef-cross lines regularly made $2.85-$2.90/ kg, while lighter exotic-cross and Angus, 350kg, sold for $3.00-$3.05/ kg. Demand for R2 bulls is very high, and those offered sold at higher levels than the steers, with beef-cross earning $2.90-$2.96/kg. The heifer market also had a firmer tone, with beef lines trading at $2.80-$2.90/kg. The R1 pens housed some good quality lines, and Hereford steers, 200-230kg, were a highlight, selling for $3.35-$3.40/kg, while lighter lines of other breeding made $3.80-$4.00/ kg. Bulls sold on a steady market, as

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Friesian returned $3.10-$3.15/kg, and beef, $3.40-$3.50/kg. The first of the 100kg bulls were also offered, and this market got off to a great start, with most Friesian and Angus-Friesian making $580-$665. One section that was harder work was the R1 heifers, and those with good breeding making $3.00-$3.05/kg, and inferior lines, $2.70-$2.80/kg. Heavy and medium cow prices softened, though quality was not up to the previous week. In-calf dairy cows sold for $1.90-$2.00/kg, and medium, $1.75-$1.80/kg. The bestselling were the lighter lines, 350380kg, which firmed to $1.80-$1.90/ kg. Throughput numbers were moderate at WELLSFORD last Monday, though a larger number of buyers re-entering the market meant

Continued page 38

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38 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017 that there was plenty of interest. Older steer prices held, with lifts for the heifers, while a small R1 section also improved. The R2 steer pens featured the biggest yarding since the end of May, but steady demand returned steady prices. A small number of good lines cracked $3/kg, including Angus-Friesian, 402-433kg, $3.05/kg, though $2.83-$2.93/kg was more common for Hereford-Friesian, 475-571kg. Hereford-Jersey, 363-448kg, proved popular at $2.95-$2.97/kg, while lesser dairy-cross lines made respectable values at $2.65-$2.79/ kg. Buyer interest lifted in the R2 heifer pens, which saw prices do the same. Beef-Friesian, 366456kg, sold for $2.78-$2.91/kg and made up a large chunk of the section. R1 prices were exceptional for this time of year, and features included Hereford-Friesian heifers, 181-215kg, $635-$740, and Simmental-cross, 175kg, $700, $4/ kg. Steers mainly made $700-$800, and bulls, 201-250kg, $690-$800. AUCKLAND AUCKLAND Very wet conditions drew more cattle than expected to PUKEKOHE last Saturday 8th July, which put pressure on prices, auctioneer Pat Farrell reported. Prime cattle were the least affected, with steers, 518-603kg, up to recent levels of $2.79-$2.90/ kg, while heifers, 501-662kg, returned $2.75-$2.87/kg. The lighter end of the boner cows made $1.27/kg, with better types up to $1.79/kg. The real effect of the wet was in the store pens, where the market was subdued. The better R2 steers, 453-471kg, made $2.60-$2.80/ kg, with values similar for lighter crossbred lines. R1 steers, 298kg, sold for $880, and 163-183kg, $660-$770. Light lines, 145-152kg, made $535-$580. R2 heifers were mainly lighter types, and 379-440kg made $2.66$2.75/kg, and again c/kg values were similar for the lighter lines. R1, 160-118kg, were buyable at $500-$680. COUNTIES COUNTIES The store cattle market was a little easier at TUAKAU last week, with the chilly weather being the main reason, Keith West of Carrfields Livestock reported. About 500 cattle were yarded on Thursday, and prices for most classes were back by around 10-15cents/kg. The better R2 steers, 478-545kg, traded at $2.82-$2.94/kg, and medium, 411-460kg, $2.86-$2.96/ kg. A handful of lighter types, 375409kg, made $2.72-$2.80/kg. Good R1 steers, 249-303kg, returned $800-$905, with medium lots, 156223kg, earning $745-$800. The best of the R2 heifers weighed 372-454kg and fetched $2.72-$2.79/kg. Medium, 360380kg, sold at around $2.80/kg, and good-medium R1 heifers, 230255kg, made $670-$740. Prices for prime steers and heifers were steady last Wednesday, but boner cow prices eased slightly. Heavy steers in the yarding of 400-450head traded at $2.87-$2.92/kg, medium $2.82$2.86/kg, and lighter $2.77-$2.82/ kg. Heavy prime beef heifers earned $2.81-$2.88/kg, and

TOP DOLLAR: PGG Wrightson Auctioneer John McKone and his team look for bids during the recent Woodbank bull sale. More photos: farmersweekly.co.nz

medium $2.76-$2.80/kg. Lighter dairy-type heifers sold at $2.41$2.65/kg, and in-calf Friesian cows, $2.07-$2.25/kg. Most boner lots were back 2-3c/kg on the previous sale. Heavy Friesians returned $1.90-$2.06/kg, medium $1.80-$1.88/kg, and lighter boners $1.52-$1.78/kg. Most beef bulls sold at $2.85-$3.05/kg, and Jersey $2.42-$2.52/kg. Prime lamb prices remained strong at last Monday’s sheep sale, where about 800 ewes and lambs were on offer. The best of the heavy prime lambs made $155-$170, medium $131-$147, and lighter primes $107-$129. Store lambs returned $90-$112, heavy prime ewes $105-$118, and medium $76-$89. BAY OF PLENTY BAY OF PLENTY New faces from the wider Bay of Plenty area brought extra competition to RANGIURU last Tuesday, and the market was mainly buoyant across all classes, with a few wobbles here and there. Boner cows generally sold to good demand, with Friesian, 373380kg earning $1.94/kg, and 432441kg, $1.94-$2.01/kg. Processors could not be beaten on a line of 20 in-calf Angus cows which sold for $2.16/kg, but a smaller line of better Angus, in-calf to an Angus bull, will be farmed on for $2.43/ kg. While the store section did not offer up anything spectacular, there was steady demand from the first to the last pen, and vendors were rewarded. R2 HerefordFriesian steers, 362-430kg, sold for $3.14-$3.23/kg, while a line of 10 heifers, 387kg, made $2.87/kg. Beef-Dairy dominated the R1 pens, and the ever popular Hereford-Friesian heifers, 182190kg, sold well at $670-$750, bettering similar weighted AngusFriesian steers, which made 560$580. Prime lambs made up the bulk of a small sheep sale, and sold for $80-$133, while scanned-in-lamb ewes returned $114. Rangiruru held its first feeder

calf sale for the season last Wednesday, with around 160 calves penned. Prices ranged from $30-$185, with an average price of $135 for the yarding. WAIKATO With conditions so wet underfoot around Waikato, larger number of small lines were drawn to FRANKTON last Wednesday, though overall throughput was down, and the market buoyant. R3 Angus steers, 613-623kg, sold on a steady market at $2.89-$2.90/ kg, though were bettered by higher yielding South Devon, 542-563kg, $3.00-$3.01/kg. Quality was mixed through the R2 steer pens, though a number of small lines hit and passed $3/ kg, and just one line sold under $1000. There was a bit more quality in the heifer pens, where Angus-Hereford, 425-436kg, made $2.87-$2.90/kg and HerefordFriesian, 490kg, $2.78-$2.82/kg. Plenty of younger cattle were offered, in both the R1 and autumn-born section, with demand strong for the better types, and enough interest on lesser lines for respectable returns. Angus steers, 255kg, made $950, and two lines of Hereford-Friesian heifers, 273-302kg, hit $1000. Autumn-born Friesian bulls, 104115kg, made good values at $500$610, while Hereford-cross heifers 98-116kg, managed $480-$520. A special entry of vetted-in-calf Hereford cows sold outside of processor range, with the top two lines making $1530-$1620, $2.36$2.38/kg. Heifers, 539kg, fetched $1350, $2.50/kg. Te Kuiti Supplementary Ewe Fair & Cattle, Sheep Sale – Fri 7th, Wed 12th July – website & FW On Friday 7th July TE KUITI held a combined Ewe Fair and Cattle Sale, and while both numbers and attendance was low, the sale still packed some punch. Numbers reduced to 2500 head for last Wednesday’s sheep sale, which saw prices lift, PGG Wrightson representative Carl White reported.

Around 2000 mixed age ewes were offered at the ewe fair, and sold to a small but keen bench of buyers. Annual draft ewes from one property made up just over half the yarding, with mixed age, scanned-in-lamb to a Suffolk ram making $100-$152, with an average price of $127. Five-year Romney ewes, run-with-ram, returned $127. Enquiry for the 500 head of cattle was also good, with results pleasing. Cow numbers were low, but light to medium condition lines made $1.69-$1.72/kg. A good line up of R2 Angus steers, 450-500kg, sold exceptionally well at $3.10-$3.21/ kg, while bulls 477-529kg, also made solid returns at $2.89/kg. In the heifer pens, 485kg, returned $2.80/kg, while crossbred, 386398kg, sold for $2.80-$2.96/kg. Interest was high for the good quality R1 lines, and Angus steers stood out for all the right reasons, with 128-146kg earning $640$720, $4.92-$4.96/kg. Angus heifers, 290kg, made $655, while 120kg fetched $540, $4.71/kg. Last Wednesday’s sheep sale took little time to complete, though buyers had to dig a bit deeper to secure lines. Heavy prime lambs sold for $120-$130, while the ewe market lifted, with heavy types making $105-$115, and lighter, $70-$85. Lifts continued into the store pens, where top male lambs in particular were the focus. These made $120-$126, with medium types earning $105-$115. Longer term male lamb sold for $90-$101, and small, $60-$75. TARANAKI TARANAKI Beef-Friesian cattle dominated a 600 head yarding at STRATFORD last Wednesday, and the real strength of the sale was across all the R2; and R1 steer pens. Outside temperatures were low, but a good number of attendees kept themselves active by bidding. Of the 600 head, around 50 were R3 steers, with 500-558kg lines consistently making $2.92-$2.95/

kg. There was plenty of heat in the 180 head R2 steer section, as a local buyer restocking a big block competed with those from Manawatu. Good strength was seen for lines 350-450kg, with $3.25-$3.50/kg common. A small offering of R2 heifers also sold well, with 340-410kg earning $2.92-$3.01/kg. R1 steer prices were reminiscent of the March fairs, with a very good line of Hereford-Friesian, 363kg, making $1065, while the second cut, 230kg, fetched $920/ kg, putting $4.00-$4.05/kg on them. The heifer market did not fire as expected, though prices were solid for 240-270kg, at $725$885, but less enquiry for lighter lines saw most trade at $600-$650. The sheep pens featured a consignment of scanned-inlamb 169% ewes, but weather conditions kept interest at bay, and the top line made $111, with 2-tooths earning $90. A small dairy sale was held last Tuesday, and the market was solid enough for what was offered. Heavy cows traded at $2.00/kg, medium $1.70-$1.90/kg, and light, $1.68/kg. A small offering of bulls traded at $2.80-$3.00/kg, dependent on size. POVERTY BAY POVERTY BAY With the weather far from the nicest, not too much was offered up in terms of store lambs at MATAWHERO. What was offered sold relatively well considering much of the North Island is quite soaked. The two heaviest lines of ewe lambs weighed sold for $105-$106, while the next cut down found similar per kilo rates at $92$97.50. Anything any longer-term has lost its appeal though, with other lighter ewe lambs at just $69-$75. There weren’t all that many male lambs to choose from. The heaviest line made $111, though medium types made anywhere in the $93-$100 range. The small selection of prime ewes sold to $89-$96, with all prime lambs selling for $116-$134, though most were under $125.

HAWKE’S BAY HAWKE’S BAY R2 heifers were the standout feature of a moderate yarding of cattle at STORTFORD LODGE last Wednesday, while ewe and lamb numbers at both the prime and store sales were typical for this time of year. A few extra buyers looking for lambs helped absorb the nearly 800 head last Monday. Heavy male lambs made $127-$129, with the top lines up to $170-$175. Ewe lambs of similar weight returned $115-$131, while plenty of size in the mixed sex pens saw most trade at $130-$152. Ewe numbers should start dropping off as the scanned dries run out, but for this week at least both numbers and prices were steady. A larger portion of the yarding were medium types in the $80-$100 bracket, though were matched by good numbers of heavier ewes at $102-$127. A late clean out of cows from one property helped lift numbers to 122 head, and also added a few extra heifers to the pens. Processors dominated the market, and while the lighter cows improved in price, with

Markets

532-554kg (including in-calf) up 7c/kg to $2.32/kg, very heavy girls softened, and a line of 629kg Angus-Hereford came in under the previous week’s level at $2.37/ kg. The main feature in the heifer pens was a line of 13 South Devon, in-calf to an Angus bull, which sold for $2.53/kg, though these are unlikely to be farmed on, while a small offering of steers sold on a steady market at $3.00-$3.04/kg for all breeds.. Cold temperatures and impending snow did not deter buyers from Wednesday’s sale, though perhaps encouraged lamb buyers to keep their hands in pockets, and prices eased slightly. The sale kicked off after a slightly delayed start due to late arrivals from Wairoa. Capital stock 3-year ewes, scanned-in-lamb 160% were sought after, setting the bar at $170. Older Romney, scanned-inlamb 200%, were right on their tails at $162-$167. Results were mixed in the lamb pens, with most steady or easing. Medium-good male lambs remained steady at $105-$113.50. Mixed sex equivalents eased slightly to $93.94-$98.40, although heavy mixed sex lifted to $132$149.50. Ewe lambs of mediumgood quality sold on a steady market at $111.75, whilst lighter lines eased. Medium size lines of store cattle met a good crowd in the rostrum, including families enjoying a school holiday outing. R3 traditional steers, 566kg, made $3.08/kg, while their sisters, 438kg, fetched $2.98/kg. The majority of the R2 cattle were longer term types. A highlight in the R2 steers was Angus, 371-390kg, $3.53-$3.58/ kg. Traditional hill country heifers from Wairoa were exceptionally strong, selling for what would typically be steer money. Lines that were 339-353kg lifted to $3.32-$3.36/kg. R2 beef-cross heifers were also a feature, with 382-409kg returning $3.15-$3.19/ kg. All bulls headed off to the Wairarapa, including a heavier line of R2, 487kg, which eased slightly to $3.08/kg, whereas their lighter brothers, 422-467kg, lifted to $3.23-$3.25/kg. Glimpses of the spring market was evident in the R1 pens. Angus and Angus-cross steers, 216307kg, made $942-$1075, while heifers, 211-260kg, managed $845$870. The R1 bulls, 280kg, sold for $835. MANAWATU MANAWATU The sale at RONGOTEA last Wednesday offered some nice Angus weaner and R1 bulls and heifers from the Wellington hills. Also included was the last of the autumn-born feeder calves, and the first of the spring born Friesian bulls, New Zealand Farmers Livestock agent Darryl Harwood reported. Apart from the younger cattle, there was little else offered. Friesian cows with calves-at-foot returned $885, and Jersey, $830. Boner cows were mainly crossbred and beef-cross, and ranged from $1.69-$1.74/kg. R2 Hereford-Friesian bulls, 340kg, returned $2.91/kg, with a very heavy line, 845kg, making

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017 $2.38/kg. Hereford sold to $2.88/ kg, and crossbred, 555kg, $2.59/ kg. Quality was varied through the heifer pens, with the better Hereford-Friesian selling to $2.82/ kg, though most other lines were dairy-cross and traded at $1.96$2.16/kg. 15-month Friesian bulls, 298-400kg, returned $2.80/kg. The feature Angus bulls, 205367kg, had a good following and sold for $605-$1085, with their sisters, 296kg, earning $870. Young Friesian bulls, 192-245kg, made $680-$755, and the rest of the heifers, $560-$670. HerefordFriesian steers, 150kg, made $715, and weaner Angus bulls, 242kg, $775. The first of the spring Friesian bulls met reasonable interest and made $175-$270, with HerefordFriesian and Angus-cross earning $150-$410. Hereford-Friesian heifers made $180-$380, Anguscross $220-$355, and Friesian, $100. Weaner pigs sold for $58-$86, ewes with lambs at foot $56, and mixed sex lambs, $50-$94 Cattle numbers continued to fall at FEILDING last Monday, and apart from a reasonable number of Friesian cows, there was little to dwell on in the pens. There was however plenty of action in the sheep section, with 6800 sheep on the books. Most of the Monday action continues to be in the sheep pens, though more so in the lamb section, where 4800 were offered. Around 30% of the prime lambs were very heavy types, which sold on a steady market at $145-$180, though most of the remainder were medium prime at $115-$147.

vendor realising $133 for 168 ram lambs and another vendor and another vendor selling two larger lines of cryptorchids for $134 and $133. The medium and lighter lambs suffered a greater price decline and the best ewe lambs could only manage $106.50 with some ewe lambs passed in, even in such a small sale. Ewes; SIL, $146-$151; Lambs; Very heavy, $120-$134; heavy, $98.50-$111; medium, $84-$105; light, $69-$86. The cattle pens were a sorry sight with only 13 entries and the better quality cattle stood out like beacons. All cents/kg levels eased apart from those better cattle mentioned. These were two pens of rising two year Angus steers with the top 16 selling for $1635, $3.28/kg, and two pens of rising two year Angus heifers with the top pen of 12 selling for $1300, $2.94/kg. These pens were comparable with last week but there was limited interest in the others. Steers; R2, 410-498kg, $1150$1635, $3.28-$3.31/kg; R1, 207255kg, $750-$910, $3.16-$3.57/ kg; bulls; R2, 347kg, $1000, $2.88/ kg; heifers; R2, 265-441kg, $620$1300, $2.34-$3.16/kg; R1, 190237kg, $570-$750, $3.00-$3.52/kg. CANTERBURY CANTERBURY Store lamb, and prime cattle numbers dropped at CANTERBURY PARK last Tuesday, for an array of reasons, while prime ewe numbers peaked as scanning brings out more dries. With snow forecasted to very low levels, farmers were focused on sorting stock for the rough

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forward, and scanned-in-lamb made $145-$152, and run-withram, $117-$125. Prime cattle numbers dropped even further this week as no premiums in the yards does little to entice prime stock in. The steer pens were the busiest, with one buyer dominating the exotic lines, which all sold over $3/kg and Charolais earning $3.04-$3.18/kg. The traditional lines were harder work, easing to $2.88-$2.94/kg. Angus-Friesian, 418-438kg, were more forward store than prime, and returned $2.75/kg. Cows made up the bulk of the rest, and beef lines with condition, 600-625kg, earning $2.20-$2.28/kg, and medium types, 490-507kg, $1.97-$2.02/kg. Dairy, 397-405kg, made $1.73/kg. A small store yarding was all R1 Angus, with the top line of bulls, 300kg, making $900, and 235kg, $680. Four Angus heifers, 188kg, sold for $710. Due to weather conditions, Coalgate sale was cancelled last week. SOUTH CANTERBURY SOUTH CANTERBURY A nice start to what is forecasted to be a wet, cold week saw low volumes of cattle offered at TEMUKA last Monday, though all sections in the sheep pens lifted in number. Mixed sex store lambs filled most pens, and prices reflected continuing strong demand. Buyers were hard pressed to purchase many lines under $100, with light lines making $92-$106, while medium and good lines made $104-$118.

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Ewes continued their steady run also, and good ewes traded at $117-$126, medium $85-$115, and light, $51-$75. Five Angus steers, 560kg, made $3.06/kg, while a store line of heifers, 335kg, fetched $2.33/kg. With cow numbers falling but competition strong, those offered sold on a firm market. Friesian, 488-548kg, made $1.93-$1.97/kg, while a line of four good yielding types sold to $2.08/kg. A small line of Hereford-Friesian, 483kg, made $2.32/kg. The storm had a massive effect on both the sheep and cattle yardings on Friday with many vendors unable or unwilling to consign stock due to the conditions and many buyers reluctant to buy for the same reasons. Very useful scanned in lamb ewes sold for between $146 and $151, once again seeming cheap buying. The lamb sale offered good male lambs in the early stages and these lambs had the smallest ease in sale prices overall with one

week ahead, which saw store lamb numbers dwindle to just 267. The wintry blast was a double-edged sword for the store lamb market, as few buyers were prepared to take on extra mouths, and prices reflected limited interest, despite the small number penned. Mixed sex lines dominated, and the better end made $100-$113, with single lines trading at $85-$99. No space issues and promising schedules kept plenty of interest in the prime pens, where both the lamb and ewe numbers were up. Lambs mainly traded at $110-$157, with the prime lamb median up at $140. Timely scanning meant farmers could offload dry ewes before the snow came, and numbers peaked at 1530. Prices showed some softening, though very heavy ewes still managed to sell to $130-$169 though, with good types earning $118-$124. The bulk of the yarding sat in the medium-good range, and made $90-$116, and light-medium lines $67-$87. A few breeding ewes are coming

The approaching front may have pushed more prime ewes and lambs to market, with numbers peaking in both sections. The lamb pens included lines over 100 head, though prices remained steady at $110-$169. Ewe numbers also surpassed recent levels as more scanning brings out the dries. Nearly 1800 was a big ask, but the buyers were there, and prices reflected solid demand, with most making $100-$135, though there was a larger instance of light-medium types at $70-$99.An easing in most cattle came as little surprise, as schedule prices look to soften for all bar local trade. The steer market had a much softer tone to it, though most offered were better described as forward stores. Devon, 475-493kg, made $2.71$2.79/kg, and Angus, 510-525kg, $2.70/kg. Two heavy Hereford did manage to sell to $2.84/kg, though this was off the pace of recent levels. The heifer pens offered up more in quality and condition than the steers, and as a result sold at

higher comparative levels. All bar one Devon sold over a tight range of $2.71-$2.80/kg, and while that was an easing for the heavier end, local trade types actually showed some improvement. Friesian heifers, 378-470kg, traded at $2.26-$2.31/kg. Cow numbers lifted to 140, and a good portion were traditional cattle. Both Angus and Hereford fell in the 529-700kg range, and sold on a softer market at $2.20$2.28/kg. The best of the boners still managed to hit the $2/kg mark, though $1.80-$1.90/kg was more common place. OTAGO OTAGO Snow did not hamper efforts to hold the BALCULTHA sale last Wednesday, and even a few store cattle made the journey. Prices were steady across much of the sheep section, while a small yarding of store cattle sold to reasonable demand, PGG Wrightson agent Emmett Sparrow reported. Heavy store lambs sold to $97$107, which was in line with the previous week, though interest and in turn prices dropped away for medium types at $75-$88, and light, $45-$70. Mixed age Romney-Texel ewes, in-lamb to a Romney-Texel ram, sold well at $154. Demand was solid for a reasonable offering of lambs, and prices were steady across the board, with heavy types making $130-$144, medium $115-$125, and lighter $95-$110. In the ewe pens, heavy types returned $120$140, medium, $90-$110, and lighter $65-$85. Cattle featured, albeit in small numbers, with R2 HerefordFriesian steers, 416kg, making $2.82/kg, and R1 Friesian, 303kg, $940. Hereford calves, 247kg returned $1070 to be the highlight of the day. SOUTHLAND SOUTHLAND LORNEVILLE managed to complete its sale prior to the wintry blast heading up the country, and prices reflected good continuing demand for a small yarding last Tuesday. Store lambs made up a good portion of the sale at 565 head, and prices moved very little. Heavy types traded at $80-$85, medium $65-$75, and light $40$60. A line of mixed age Romney ewes, scanned-in-lamb, managed $158. The prime pens were reasonably busy, with ewes taking up most of the auctioneer’s time. Heavy lines came back to $105$128, with medium types also easing to $80-$100, and lighter, $65-$78. Two-tooths headed in the other direction, with prices firming to $94-$103 for heavy, while medium made $81-$93, and light, $41-$76. Cattle numbers were very low, but at least there were a few for buyers. Two prime steers, 450kg, made $2.80/kg, and two heifers, 450-500kg, $2.80-$2.90/kg. Cow prices were solid, with 401-480kg making $1.86-$2.04/kg, and 480kg plus, $1.96-$1.98/kg. The store section was short and sweet, and R2 Hereford-cross steers, 405kg, returned $2.86/ kg, while R1 Angus bulls, 210kg, fetched $700.

Markets

40 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 17, 2017 NI SLAUGHTER STEER

SI SLAUGHTER STEER

SI SLAUGHTER COW

($/KG)

PRIME LAMB MEDIAN AT CANTERBURY PARK

($/KG)

($/HD)

5.70

5.65

4.30

140

high lights

Buoyant lamb market is expected to wane Annette Scott

annette.scott@nzx.com

ASING procurement pressures are expected to slow the buoyant lamb price rises of the past six months. In its monthly commodity outlook for July, Rabobank’s food and agribusiness advisory expects a slowdown in schedule prices over the coming months as processors reduce capacity to match reduced supply, easing procurement pressures as the New Zealand dollar also continues to rise. While lamb prices continued to push higher and farmgate prices continued to rise over the past month, it had been at a subdued pace as domestic supply tightened through early July. As of early July the slaughter price in the North Island averaged $6.65/kg, up 4% month-on-month and 24% year-on-year, while in the South Island the average was $6.50/kg, up 2% month-onmonth and 27% year-on-year. May had had a significant lift in the number of lambs processed compared to the same month last year, up 10%, but for the cumulative season-to-date lamb kill was down 6%. Mutton prices had continued to strengthen

SLOWDOWN: Lamb processors are expected to reduce capacity in coming months to match reduced supply.

over the past month, up 4% month-on-month, and now sat at 70% year-on-year. Rabobank analysts said there were signs in-market that some cuts may have peaked with wholesale prices for United Kingdom legs dropping 7% over the month of June. However, French rack prices had remained stable. “We do expect only marginal price lifts over the coming month as demandversus-supply levels out and processors start to reduce

killing capacity,” Rabobank said. The market was forecast to lift again in October as new-season lamb production came onstream, and market demand for Christmas chilled trade boosted trading activity. Meanwhile, lamb export volumes for June dropped 20% on May shipments, but the decline was in line with a smaller lamb crop and historical trends as lamb slaughter rates eased into winter, AgriHQ analyst Rachel Agnew said.

$105-$116

$1530-$1620

Good ewe lambs at Stortford Lodge

Vetted-in-calf Hereford cows, 650680kg, at Frankton

Wool not a factor in saleyard purchases

Season-to-date (OctoberJune) lamb exports were down 6% on the same time last season. Agnew said exporter focus on the UK market continued to weaken because both currency fluctuations and flat consumption forced exporters to divert products to other markets. Export volumes for June dropped 26% on year-ago levels, but the drop in market share was more revealing, with 14% of shipments for the month heading to the UK compared with 18% for June 2016. Shipments to Continental Europe were also down 15%. The UK and European Union markets combined were still NZ’s largest export destination, taking 38% of export volumes compared with 42% last season. Lamb exports to China for June dropped 21% on June last year, while market share in China dropped accordingly to 25%, down from about 30% in May 2017, and this time last year. The United States market was a strong performer for NZ lamb this season, representing 11% of lamb shipments season-to-date. Exports to Malaysia were growing month on month to a June spike, up 40% in May, with the lack of competing Australian supply the predominant driver of that growth.

WITH a wintry blast hitting most of New Zealand last week, it seems a good time to broach the subject of wool since we should all be well and truly wrapped up in it at the moment. Suz Bremner My column a fortnight ago AgriHQ Analyst talked about how positive most markets were, although it can’t be overlooked as to where the wool market is at present. Sadly global demand for wool is at an alltime low, which is having a massive effect on prices at the farmgate. With bale upon bale of wool stockpiled there is too much supply and not enough demand, which is putting this country’s wool prices at the lowest levels ever recorded. And that doesn’t look set to improve anytime soon. Farmers are struggling to cover the cost of shearing with the returns from wool. I like to look for silver linings in everything, and one that I’ve found for wool is that there is no obvious discount on prices at the saleyards for sheep still in their “jackets”. This is purely a numbers game on buyers’ behalf – or more specifically, lack of numbers – and all classes are well-contested, regardless of whether they are woolly or not. While Feilding is still offering a decent number of lambs and buyers can be selective, in all other areas volumes are very low. Those in the market for breeding ewes are overlooking any wool in preference for goodscanning, good-breeding ewes and will deal with the wool when they need to. Three weeks back at Stortford Lodge, I took special note of any bid preference for similar woolly and slipe lines of breeding ewes. While it seemed bids flowed more freely for the slipe ewes the better bred, nearly full wool lines still sold at higher levels. I asked a couple of regular lamb buyers if they took wool length into consideration when bidding, but both said it wasn’t factored in at all, thus proving my theory. suz.bremner@nzx.com

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SAVE $1,200

INCL. GST

$11,995 EXCL. GST TF125 MUDBUG

SAVE $780

INCL. GST

$2,795 EXCL. GST

SZM0321 17/7

NO DEPOSIT – 2 YEARS TO PAY NO PAYMENTS FOR 3 MONTHS

LT-A500XL7 Finance offer is based on $4,678.16 deposit or trade-in equivalent, a $369 documentation fee and $13 PPSR (total charges $382), then 1 payment of $5,269.26 after 12 months and another payment of $5,269.26 after 24 months at 6.99% interest. Total cost of purchase $15,216.68. TF125 Finance offer is based on no deposit and a payment holiday of 3 months, then 21 equal monthly payments of $188.16 at 19.95% interest. Total cost of purchase $3,951.36. Normal lending criteria apply. Price excludes GST. Offer not available in conjunction with any other promotion. Offer ends 31 July 2017 or while stocks last.